US Facilities’ 2nd-Quarter Income Drops 83%
US Facilities Corp. in Costa Mesa reported drastically reduced earnings and announced plans to buy back up to 6.4% of its stock on the open market over the next year.
A holding company for underwriting management and reinsurance firms, US Facilities posted net income of $66,000 in the second quarter, down 83% from the previous year’s $392,000. Quarterly revenues more than doubled to $6.7 million from $3.1 million a year ago.
For the record:
12:00 a.m. Aug. 21, 1987 For the Record
Los Angeles Times Friday August 21, 1987 Orange County Edition Business Part 4 Page 4 Column 4 Financial Desk 1 inches; 30 words Type of Material: Correction
US Facilities Corp. has 3.9 million shares of common stock outstanding, of which the company plans to buy as many as 250,000 shares. An article in Thursday’s Times incorrectly listed the total shares outstanding.
In the first six months of 1987, the company reported a profit of $454,000, a 24% drop from $599,000 in the same period last year. Revenues in the first half, however, more than doubled to $13.7 million from $6.1 million.
The earnings decline reflects previously announced delays in dealings with potential insurance company clients. The delays will cause some fee income to be deferred until next year, said George Kadonada, chairman and president.
US Facilities’ stock, which dropped more than $3 to less than $5 a share when the company announced last month that fee deferrals would cause lower earnings, closed Tuesday at $5.75, down 50 cents, in over-the-counter trading.
Company spokeswoman Rosemary Mulligan said the planned repurchase of 250,000 of US Facilities’ 9.3 million common shares outstanding is intended to show the investing public that top management has confidence in the company.
