Hallmark Financial Services, Inc. 2000 Third Quarter and Nine Months Results
14 November 2000
Hallmark Financial Services, Inc. 2000 Third Quarter and Nine Months Results
DALLAS, Nov. 14 Hallmark Financial Services, Inc.
(Amex: HAF.EC) (Hallmark), a Dallas based financial services company, today
reported financial results for the quarter and nine months ended September 30,
2000. Total revenues for the nine months increased to $18,326,499, or 31%
over the same period of 1999. For the quarter ended September 30, 2000, total
revenues were $5,373,049, an increase of 8% over the same quarter of 1999.
The increases in revenues were due primarily to a reduction in competitive
programs and to a lesser extent, higher premium prices.
Although total revenues increased for the quarter and nine months ended
September 30, 2000, net income decreased as a result of the cumulative effect
of inadequate rates, hailstorm claims in the first half of the year and less
favorable reinsurance terms in the third quarter. Net income for the first
nine months of 2000 was $466,766 ($.04 per share), compared to net income for
the first nine months of 1999 of $630,878 ($.06 per share). For the third
quarter of 2000, the Company reported a net loss of $82,208 (-$.01 per share),
compared to net income of $128,386 ($.01 per share) for the same period of
1999.
"While our results reflect lower margins arising from inadequate pricing
and higher losses due principally to hailstorm claims and increasing repair
and medical costs, current indicators reflect a marketplace characterized by
increasing premium rates and decreasing competition. The expectation of
increased premium rates, as well as the reduction of competition in the Texas
marketplace, is largely the result of recent tightening in the availability of
reinsurance on acceptable terms," stated Ramon D. Phillips, Chairman and CEO.
"The Company has increased rates several times since November 1999; however,
the impact of these rate actions will not be fully realized until 2001.
Premium rates will continue to be strategically increased and underwriting
results will be optimized. We believe that recent trends emerging in the
Texas insurance industry may provide the foundation for increasing future
profitability for Hallmark," concluded Mr. Phillips.
As previously announced, Hallmark is continuing to develop improved
technology capabilities. When fully implemented, these enhancements should
result in cost savings and improved customer service for both the Company and
its agents.
Hallmark Financial Services, Inc. engages primarily in the marketing and
financing of non-standard automobile insurance in the State of Texas. Other
activities include fee-based claims handling as well as administrative and
financial services for unrelated parties. The Company is headquartered in
Dallas, Texas and its common stock is listed on the American Stock Exchange
under the symbol "HAF.EC".
Forward-looking statements in this Release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ substantially from such
forward-looking statements. Forward-looking statements involve risks and
uncertainties including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
interest rate trends, the availability of financing, underwriting loss
experience and other risks detailed from time to time in the Company's
periodic report filings with the Securities and Exchange Commission.
For further information, please contact:
Ramon D. Phillips, Chairman and CEO at 972-404-1637
http://www.hallmarkgrp.com
HALLMARK FINANCIAL SERVICES, INC.
AND CONSOLIDATED SUBSIDIARIES
Selected Operating Results
Three Months Ended September 30
2000 1999
Gross Premiums Written $12,352,362 $9,631,847
Total Revenues 5,373,049 4,960,135
Pretax (Loss) Income (105,362) 194,047
Income Tax (Benefit) Expense (23,154) 65,661
Net (Loss) Income (82,208) 128,386
Basic and diluted EPS $(0.01) $0.01
Nine Months Ended September 30
2000 1999
Gross Premiums Written $38,450,952 $28,039,106
Total Revenues 18,326,499 14,008,459
Pretax Income 767,700 1,026,346
Income Tax Expense 300,934 395,468
Net Income 466,766 630,878
Basic and diluted EPS $0.04 $0.06