Date: Thu, 18 Dec 1997 10:06:54 GMT Server: Stronghold/1.3 Ben-SSL/1.3 Apache/1.1.1 Content-type: text/html Content-length: 4731 Last-modified: Thu, 11 Dec 1997 16:22:59 GMT
Released by Loring Group of Johnnie D. Johnson & Co., Inc.
50 Broad Street, NYC 10004 -- (212) 943-0620
For Immediate Release
FRONTIER ADJUSTERS OF AMERICA INCOME DECLINES AS REVENUES RISE IN FOURTH QUARTER AND FULL YEAR OF FISCAL 1997
PHOENIX, Ariz., August 22, 1997 - Frontier Adjusters of America, Inc. (ASE-FAJ), a nationwide franchisor and licensor of claims adjusters, had higher revenues but lower net income in the fourth quarter and 12 months of its 1997 fiscal year, William J. Rocke, chairman and chief executive officer, reported. The profits decline was primarily due to a large sum paid by Frontier to settle a legal claim.
For the three months ended June 30, 1997, revenues were $1,510,114, up from $1,484,354 one year earlier and net income was $41,951, or one cent per share, compared with $297,942, or seven cents per share. For the prior 12 months, revenues were $6,164,603, up from $5,641,984, and net income was $979,198, or 21 cents per share, compared with $1,134,519, or 25 cents per share, in fiscal 1996. Gross billings of franchisees and licensees increased to $48,060,000 in fiscal 1997 from $46,830,000 in the previous fiscal year.
"Frontier's moderate fourth quarter gain in revenues," Mr. Rocke said, "was more than offset by the extraordinary pretax expense of $525,000 paid in settlement of a lawsuit related to alleged embezzlement of more than $700,000 by a former franchisee. As a result of this outlay, together with higher expenses to strengthen management and staff, income was reduced sharply in both the fourth quarter and full fiscal year."
Frontier Adjusters of America, Inc. licenses and franchises independent claims adjusters throughout North America, with more than 650 advertised locations in 50 states, the District of Columbia and Canada. The company also owns and operates independent insurance adjusting businesses in Arizona and Nevada.
FRONTIER ADJUSTERS OF AMERICA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Audited) |
||||
Three Months Ended | Twelve Months Ended | |||
6/30/97 | 6/30/96 | 6/30/97 | 6/30/96 | |
Gross Billings of Licensees | $12,680,000 | $12,340,000 | $48,060,000 | $46,830,000 |
Revenues | 1,510,114 | 1,484,354 | 6,164,603 | 5,641,984 |
Income from Operations | 96,618 | 447,932 | 1,478,070 | 1,701,649 |
Income before Taxes | 50,194 | 476,265 | 1,598,341 | 1,855,824 |
Net Income | $41,951 | $297,942 | $979,198 | $1,134,519 |
Net Income per Common Share | $.01 | $.07 | $.21 | $.25 |
Weighted Average Shares Outstanding | 4,605,358 | 4,623,065 | 4,607,709 | 4,620,101 |
This press release includes statements with respect to possible results of a newly implemented National and Regional Accounts Program that may constitute forward looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors that would cause or contribute to such differences include, but are not limited to, increased competition from existing and new competitors for the provision of insurance adjusting services, lack of market response to the Company's newly implemented program, and general economic conditions.
For information at Frontier contact:
Patric R. Greer, Chief Financial Officer
(602) 264-1061