Unistar Reports $4.2 Million 4th Quarter EBITDA
18 March 1999
Unistar Reports $4.2 Million 4th Quarter EBITDA DALLAS, March 18 -- Dallas, Texas-based auto insurance
wholesaler, Unistar Financial Service Corp. (OTC Bulletin Board: UNSF) (UNSF),
has reported fourth quarter 1998 EBITDA of $4,230,000 on fourth quarter
revenues of $35,926,000. Net income for the fourth quarter was $1,884,000 or
$0.08 per share, with 24,006,861 weighted average shares outstanding.
Unistar completed the acquisition of US Fidelity Holding Corp. (USFHC) and
its subsidiaries, effective September 30, 1998. With this acquisition, the
Company became a vertically integrated insurance and financial service holding
company. This acquisition was accounted for as an asset purchase, therefore
only the financial results of USFHC after September 30, 1998 (3 months) are
included in the Company's consolidated financial statements for 1998.
Marc A. Sparks, Chairman and CEO of Unistar Financial Service Corp.,
states, "1998 was an exceptionally active year for Unistar. On August 18,
1998 our company became publicly-traded, and during our first public quarter
(4Q98) we earned $4.2 million EBITDA on revenue of $36 million. Our stock
price and market cap reflect strong confidence in our business plan, last
closing at $40 per share (3/16/99). We developed and implemented several
additional auto insurance products. We drastically expanded our product
distribution system by appointing, acquiring and opening many company-owned
auto insurance agencies in Texas. Resulting from a number of strategic auto
insurance agency acquisitions, we established significant platforms in
Florida, Illinois and California which, combined with Texas, represent over
25% of the nationwide $118 billion auto insurance market. We established
Unistar University, a school of continuing education and training, to assist
agents with licensing issues and increase associate retention throughout the
Unistar ranks. We entered the reinsurance intermediary arena through
Unistar's new subsidiary, Talon Financial Services, Ltd. And, most
importantly, we established a solid foundation to propel Unistar into the next
millennium."
Headquartered in Dallas, Texas, Unistar Financial Service Corp. is a
leading fully-integrated financial service holding corporation, specializing
in auto insurance, renter's insurance, premium financing, and insurance claims
management. Unistar Financial Service Corp.'s wholly-owned subsidiaries
include U.S. Fidelity Insurance Services, Great Southern, First Choice, Peak
Underwriters, Advanced Underwriters and Unistar Select - managing general
agencies, Unistar Auto Insurance Agencies -- retail auto insurance agents,
Renter's Plus -- tenant insurance, Eagle Premium Finance Co., First Grampian
Premium Finance Co., Eagle Claims Corp. -- an auto insurance claims company,
Talon Financial Services -- a reinsurance brokerage, and Unistar Insurance
Company (formerly International Surety & Casualty Company), a property and
casualty insurance company. Additional information is available at:
http://www.unistarfinancial.com, or at http://www.prnewswire.com - Company News on Call.
Except for historical information, the forward-looking statements in this
news release involve risks and uncertainties and are subject to change based
on various factors, including competitive conditions in the insurance
industry, unpredictable developments in loss trends, changes in loss reserves,
market acceptance of new coverages and enhancements, and changes in levels of
general business activity and economic conditions.
