Citizens, Inc. Announces Third Quarter Results

Citizens, Inc. (NYSE: CIA) reported net income of $4.2 million or $0.07 per share for the nine months ended September 30, 2005, compared to net income of $2.7 million, or $0.06 per share, for the same period in 2004. The growth resulted from significant increases in revenues, relating to the October 2004 acquisition of Security Plan Life Insurance Company (Security Plan) and increases in the Company's international life insurance segment that offset the effects of Hurricanes Katrina and Rita. Total revenues increased 60.9% in the first nine months of 2005 to $105.4 million compared to the same period of 2004 when revenues were $65.5 million, due to the acquisition of Security Plan and an increase in new life insurance business written. Premium income was $86.7 million for the first nine months of 2005, a 64.8% increase over the same period of 2004 when premiums equaled $52.6 million. First year annualized premiums from the Company's international segment rose to $12.9 million from $10.4 million during the period, an increase of 24.0%. Net investment income increased 58.6% during the first nine months of 2005 to $17.6 million from $11.1 million in 2004, and claims and surrenders increased from $24.6 million for the nine months ended September 30, 2004 to $38.4 million for the same period in 2005, both increases primarily due to Security Plan. Underwriting and insurance expenses increased 63.6% from $11.8 million in 2004 to $19.3 million in 2005 due to the acquisition of Security Plan and the increased new business. Amortization of cost of customer relationships acquired increased 148% from $2.1 million in the first nine months of 2004 to $5.2 million in the first nine months of 2005. The Company recorded approximately $34 million of cost of customer relationships acquired when it bought Security Plan. Approximately $3.2 million in charges were incurred in the third quarter of 2005 related to Hurricanes Katrina and Rita. Security Plan had significant operations in the New Orleans area, and due to the uncertainty of future premium collections from displaced residents, the Company amortized approximately $2.3 million of cost of customer relationships acquired. Additionally, Security Plan owns a small casualty company which incurred approximately $900,000 in losses due to the hurricanes. For the three months ended September 30, 2005, the Company earned net income of $1.487 million or $0.03 per share, compared to $1.493 million or $0.03 per share for the same period in 2004. The slight decline in third quarter income resulted primarily from the impact of Hurricanes Katrina and Rita discussed above, which lowered third quarter income by $3.2 million before tax. Total revenues increased 54.0% to $36.2 million, compared to the same quarter of 2004 when revenues were $23.5 million. Premium income was $29.9 million for the quarter, a 59% increase over the same period in 2004 when premiums equaled $18.8 million. Net investment income increased 82.4% in the quarter to $6.2 million from $3.4 million in the third quarter of 2004. Claims and surrenders increased to $12.5 million from $8.4 million for the three months ended September 30, 2005 compared to the same period in 2004, the increase resulting primarily from the acquisition of Security Plan. Assets decreased slightly to $660.4 million at September 30, 2005, compared to $661.2 million at December 31, 2004. The decline reflected the repayment of the Company's $30.0 million term loan in April 2005. Stockholders' equity increased from $135.1 million at December 31, 2004 to $137.0 million at September 30, 2005 due to $1.2 million of unrealized losses, net of tax, in the Company's bond portfolio that offset the income earned during the period. About Citizens, Inc. Citizens, Inc., parent of Citizens, Inc. Financial Group, a financial services investment company listed on the New York Stock Exchange, symbol CIA, plans to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010, via the worldwide sale of U.S. dollar denominated whole life cash value insurance policies, coupled with the acquisition of other life insurance companies. Citizens is included in the Russell 2000(R) Index, which measures the performance of the largest companies, based on market capitalization, in the U.S. stock market. Citizens' Class A common stock closed at $5.89 on November 8, 2005. Additional information is available about the Company on its web site: http://www.citizensinc.com . Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate" or "continue" or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2004 and its current reports on Form 8-K, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company's expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community. CITIZENS, INC. COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS OPERATING STATEMENTS (Unaudited)(Unaudited) Nine-Months Ended Three-Months Ended September 30, September 30,2005 20042005 2004 Revenues Premium income $84,567,741 50,298,907 29,190,780 18,309,202 Annuity and universa ife considerations 2,135,975 2,270,050 670,911 500,230 Net investment income 17,635,157 11,108,639 6,155,959 3,444,307 Realized gains 677,317 735,308 61,642 478,923 Decrease (increase)in fair value o ptions and warrants (186,399)630,571(129,187)630,571 Other income 619,856 481,127 238,056 170,720 Total revenues 105,449,647 65,524,602 36,188,161 23,533,953 Benefits and Expenses Insurance benefits paid or provided: Claims and surrenders 38,390,871 24,640,495 12,458,163 8,351,117 Increase in futur olicy benefi eserves 18,801,271 11,573,790 6,686,716 4,333,921 Policyholders'dividends 3,394,911 2,871,708 1,317,811 1,141,695 Total insurance benefits paid or provided 60,587,053 39,085,993 20,462,690 13,826,733 Commissions 23,759,477 13,158,566 8,269,384 4,896,033 Other underwriting,acquisition an nsurance expenses 19,349,462 11,825,431 5,903,568 4,206,260 Capitalizatio f deferred polic cquisition costs (17,176,193) (12,972,220) (6,180,211) (4,973,716) Amortization o eferred polic cquisition costs7,396,979 7,594,592 2,772,603 2,626,288 Amortization of cos f custome elationship cquired 5,210,183 2,087,890 2,714,252 727,875 Loss (gain) o oinsurance agreements --- 586,767--- (23,846) Total benefits and expenses 99,126,961 61,367,019 33,942,286 21,285,627 Income before Federal income tax 6,322,686 4,157,583 2,245,875 2,248,326 Federal income tax expense 2,114,000 1,407,907 759,000 755,341 Net income$4,208,686 2,749,676 1,486,875 1,492,985 INCOME PER SHARE (UNAUDITED) Net Income per share $0.07 0.06 0.03 0.03 Weighted average shares outstanding38,392,869 38,317,079 38,415,200 38,317,079 BALANCE SHEETS (Unaudited) (Unaudited) (Unaudited) (Unaudited) September 30, June 30, March 31, December 31, September 30, 20052005 2005 2004 2004 Total assets $660,414,879 648,699,840 680,725,559 661,211,562 413,595,750 Total invested assets 473,122,665 462,623,378 462,766,647 475,801,943 230,817,292 Stockholders' equity 137,012,163 141,234,652 134,405,978 135,131,079 130,875,442 For further information contact: Joel H. Mathis Vice President Public Relations and Investor Relations Phone: 512-837-7100 Fax: 512-836-9334

Author:  

Email:    

Topic:    

Content:

Related Computer Hardware Articles

• Net Perceptions, Inc. Announces Third Quarter 2005 Results
  11 November 2005



• EZENIA! INC. Announces 2005 Third Quarter Financial Results
  11 November 2005



• Sunstone Hotel Investors Reports Results of Operations for Third Quarter 2005
  11 November 2005



• Consolidated Communications Holdings Reports Third Quarter 2005 Results
  10 November 2005



• Global Crossing Announces Consolidated Third Quarter Results
  10 November 2005



• SimpleTech Announces Third Quarter 2005 Results
  9 November 2005



• NVIDIA Announces Third Quarter Earnings Conference Call
  26 October 2005



• hardware News:Actel Announces Third Quarter 2005 Financial Results
  24 October 2005



• Apple Reports Fourth Quarter Results
  12 October 2005



• Maxtor Announces Mid-Third Quarter Update Conference Call
  29 August 2005