US Facilities Posts Record Increase in Earnings for ’91

US Facilities Corp. on Wednesday announced record profits for 1991, with net income rising 55% for the fourth quarter and 114% for the year.

The specialty insurance firm attributed the gains to increased profitability in its medical stop-loss coverage business, which offers to cap medical cost risks for self-insured employers.

If, for example, an employer could not afford more than $1 million in total medical costs per year, US Facilities would sell the employer an insurance policy to reimburse any medical expenses above that limit. Such premiums increased 12% in 1991, the company said. Though US Facilities’ revenue decreased 5% to $63.8 million for 1991, profits swelled 114% to $7 million, or $1.64 per share, up from 84 cents per share in 1990. Included in the profits was a onetime $738,000 investment gain, the company said.

For the fourth quarter ended Dec. 31, revenue rose 3.7% to $16.6 million, and income rose 55% to $2.1 million, or 46 cents per share, up from 35 cents per share in the final quarter of 1990.

The rosy earnings picture was expected, and US Facilities stock, which is traded over the counter, slipped $1 to close at $16.75 per share on Wednesday, as investors took profits. The company’s shares, which were trading at $2.25 in December, 1990, had soared as high as $18 per share on Feb. 7.

US Facilities Corp. US Facilities Corp. reported record results in 1991, with profits swelling 55% for the fourth quarter ended Dec. 31 and 114% for the year. The company credited its huge earnings to increased profitability in its medical stop-loss insurance business, which offers to cap medical cost risks for self-insured employers. Figures are in thousands, except per-share data.

4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $16,587 $15,999 $63,809 $67,398 Net income 2,108 1,362 7,020 3,287 Per share 0.46 0.35 1.64 0.84

Source: US Facilities Corp.