-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HsFpcsDkJF2fW/n+WuQ9xrwtCS0fZhp/mhCWZzDukOLmtNO86H/sAAjMwBnLf1Nt 8r0A70wBHRGX0Gu8CB+T+w== 0000225648-98-000004.txt : 19980817 0000225648-98-000004.hdr.sgml : 19980817 ACCESSION NUMBER: 0000225648-98-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANIELSON HOLDING CORP CENTRAL INDEX KEY: 0000225648 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 956021257 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-06732 FILM NUMBER: 98687761 BUSINESS ADDRESS: STREET 1: 767 THIRD AVE 5TH FL CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2128880347 MAIL ADDRESS: STREET 1: 767 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017-2023 FORMER COMPANY: FORMER CONFORMED NAME: MISSION INSURANCE GROUP INC DATE OF NAME CHANGE: 19900826 FORMER COMPANY: FORMER CONFORMED NAME: MISSION EQUITIES CORP DATE OF NAME CHANGE: 19770921 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1998 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-6732 Danielson Holding Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 95-6021257 (State of Incorporation) (I.R.S. Employer Identification No.) 767 Third Avenue, New York, New York 10017-2023 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (212) 888-0347 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at August 4, 1998 Common Stock, $0.10 par value 15,576,276 shares PART I. FINANCIAL INFORMATION Item 1. Financial Statements. DANIELSON HOLDING CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share information) (Unaudited)
For the Three For the Six Months Ended June 30, Months Ended June 30, 1998 1997 1998 1997 Revenues: Gross premiums earned $ 16,295 $ 15,669 $ 33,251 $ 29,049 Ceded premiums earned (2,723) (2,957) (5,664) (5,521) ---------- ---------- ---------- --------- Net premiums earned 13,572 12,712 27,587 23,528 Net investment income 1,935 2,462 4,274 4,989 Net realized investment gains 87 -- 124 2,206 Other income 243 156 421 305 --------- --------- --------- --------- Total revenues 15,837 15,330 32,406 31,028 --------- --------- --------- --------- Losses and expenses: Gross losses and loss adjustment expenses 11,143 13,445 23,130 23,770 Ceded losses and loss adjustment expenses (1,521) (4,101) (3,575) (6,690) ---------- ---------- ---------- --------- Net losses and loss adjustment expenses 9,622 9,344 19,555 17,080 Policyholder dividends 91 8 203 15 Policy acquisition expenses 3,285 3,226 6,602 6,155 General and administrative expenses 2,522 2,216 4,879 4,799 --------- --------- --------- --------- Total losses and expenses 15,520 14,794 31,239 28,049 --------- --------- --------- --------- Income before provision for income taxes 317 536 1,167 2,979 Income tax provision 10 13 53 19 --------- --------- --------- --------- Net income $ 307 $ 523 $ 1,114 $ 2,960 ========= ========= ========= ========= Earnings per share of Common Stock Basic $ .02 $ .03 $ .07 $ .19 ========= ========== ========== ========= Diluted $ .02 $ .03 $ .07 $ .18 ========= ========== ========== =========
See accompanying Notes to Consolidated Financial Statements. DANIELSON HOLDING CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share information)
June 30, 1998 December 31, (Unaudited) 1997 Assets: Fixed maturities, available for sale at fair value (Cost: $115,720 and $139,089) $ 117,846 $ 140,899 Equity securities, at fair value (Cost: $20,314 and $363) 17,859 813 Short term investments, at cost which approximates fair value 1,100 1,111 -------- --------- Total investments 136,805 142,823 Cash 45 707 Accrued investment income 1,450 2,006 Premiums and fees receivable, net of allowances of $142 and $179 9,041 5,438 Reinsurance recoverable on paid losses, net of allowances of $374 and $374 9,038 8,523 Reinsurance recoverable on unpaid losses, net of allowances of $529 and $499 19,090 20,185 Prepaid reinsurance premiums 1,716 1,681 Property and equipment, net of accumulated depreciation of $7,930 and $7,690 2,196 2,499 Deferred acquisition costs 2,128 1,550 Other assets 2,181 2,361 -------- --------- Total assets $ 183,690 $ 187,773 ========== ========== Liabilities and Stockholders' Equity: Unpaid losses and loss adjustment expenses $ 99,374 $ 105,947 Unearned premiums 12,890 10,249 Policyholder dividends 267 411 Reinsurance premiums payable 2,207 1,244 Funds withheld on ceded reinsurance 1,412 1,254 Other liabilities 5,095 4,748 -------- --------- Total liabilities 121,245 123,853 Preferred stock ($0.10 par value; authorized 10,000,000 shares; none issued and outstanding) -- -- Common stock ($0.10 par value; authorized 20,000,000 shares; issued 15,586,994 shares; outstanding 15,576,276 and 15,576,287 shares) 1,559 1,559 Additional paid-in capital 46,673 46,673 Accumulated other comprehensive income: net unrealized gain (loss) on securities (329) 2,260 Retained earnings 14,608 13,494 Treasury stock (Cost of 10,718 and 10,707 shares) (66) (66) -------- --------- Total stockholders' equity 62,445 63,920 -------- --------- Total liabilities and stockholders' equity $ 183,690 $ 187,773 ========== ==========
See accompanying Notes to Consolidated Financial Statements. DANIELSON HOLDING CORPORATION AND SUBSIDIARIES Consolidated Statement of Stockholders' Equity (In thousands, except share amounts) (Unaudited)
Comprehensive Income for the Six Months Ended June 30, 1998 June 30, 1998 ------------- ------------- Retained earnings Balance, beginning of year $ 13,494 Net income 1,114 1,114 -------- Balance, end of period 14,608 Accumulated other comprehensive income Balance, beginning of year 2,260 Net unrealized loss on available-for-sale securities (1) (2,589) (2,589) --------- --------- Balance, end of period (329) (1,475) ======= Common stock Balance, beginning of year $ 1,559 -------- Balance, end of period 1,559 -------- Additional paid-in capital 46,673 Balance, beginning of year -------- Balance, end of period 46,673 -------- Treasury stock (66) Balance, beginning of year -------- Balance, end of period (66) -------- Total stockholders' equity $ 62,445 ======== Common stock, shares 15,586,994 Balance, beginning of year ---------- Balance, end of period 15,586,994 ========== Treasury stock, shares Balance, beginning of year 10,707 Purchased during period 11 -------- Balance, end of period 10,718 ====== (1) Disclosure of reclassification amount: Unrealized holding losses arising during the period $(2,465) Less: reclassification adjustment for gains included in 124 net income -------- Net unrealized loss on available-for-sale securities $(2,589)
See accompanying Notes to Consolidated Financial Statements. DANIELSON HOLDING CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) (Unaudited)
For the Six Months Ended June 30, 1998 1997 ------------- --------- Cash flows from operating activities: Income from continuing operations $ 1,114 $ 2,960 Adjustments to reconcile net income to net cash used in operating activities: Net realized investment gains (124) (2,206) Depreciation and amortization 369 507 Change in accrued investment income 556 213 Change in premiums and fees receivable (3,603) 440 Change in reinsurance recoverables (515) (5,920) Change in reinsurance recoverable on unpaid losses 1,095 3,020 Change in prepaid reinsurance premiums (35) 234 Change in deferred acquisition costs (578) (792) Change in unpaid losses and loss adjustment expenses (6,573) (9,637) Change in unearned premiums 2,641 3,441 Change in reinsurance payables and funds withheld 1,121 386 Change in policyholder dividends payable (144) (152) Other, net 423 (704) -------- ---------- Net cash used in operating activities (4,253) (8,210) --------- --------- Cash flows from investing activities: Proceeds from sales: Fixed income maturities available-for-sale 17,714 9,445 Equity securities -- 2,159 Investments, matured or called: Fixed income maturities available-for-sale 17,189 100 Investments, purchased: Fixed income maturities available-for-sale (11,325) (6,648) Equity securities (19,952) (129) Proceeds from sale of property and equipment 6 -- Purchases of property and equipment (52) (109) Net cash provided by investing activities -------- --------- 3,580 4,818 -------- --------- Cash flows from financing activities: Proceeds from exercise of options to purchase Common Stock -- 671 -------- --------- Net cash provided by financing activities -- 671 -------- --------- Net decrease in cash and short term investments (673) (2,721) Cash and short term investments at beginning of period 1,818 6,683 -------- --------- Cash and short term investments at end of period $ 1,145 $ 3,962 ======= ========
See accompanying Notes to Consolidated Financial Statements. DANIELSON HOLDING CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) 1) BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements of Danielson Holding Corporation ("DHC" or "Registrant") and subsidiaries (collectively with DHC, the "Company") have been prepared in accordance with generally accepted accounting principles. However, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 1998 are not necessarily indicative of the results that may be expected for the year ending December 31, 1998. For further information, reference is made to the Consolidated Financial Statements and footnotes thereto included in DHC's Annual Report on Form 10-K for the year ended December 31, 1997. 2) PER SHARE DATA Per share data is based on the weighted average number of shares of common stock of DHC, par value $0.10 per share ("Common Stock"), outstanding during a particular year or other relevant period. Diluted earnings per share computations, as calculated under the treasury stock method, include the average number of shares of additional outstanding Common Stock issuable for stock options, whether or not currently exercisable. Such average shares were 16,177,757 and 16,171,268 for the three and six months ended June 30, 1998, respectively, and 16,052,945 and 16,145,858 for the three and six months ended June 30, 1997, respectively. Basic earnings per share are calculated using only the average number of outstanding shares of Common Stock and disregarding the average number of shares issuable for stock options. Such average shares were 15,576,285 and 15,576,286 for the three and six months ended June 30, 1998, respectively, and 15,407,865 and 15,384,217 for the three and six months ended June 30, 1997, respectively. 3) INCOME TAXES DHC files a Federal consolidated income tax return with its subsidiaries and with certain trusts that assumed various former liabilities of certain present and former subsidiaries of DHC. The Company records its interim tax provisions based upon estimated effective tax rates for the year. The Company has made provisions for certain state and local franchise taxes. Tax filings for these jurisdictions do not consolidate the activities of the trusts referred to above. For further information, reference is made to Note 11 of the Notes to Consolidated Financial Statements included in DHC's Annual Report on Form 10-K for the year ended December 31, 1997. 4) FOREIGN CURRENCY TRANSLATION AND FOREIGN INVESTMENTS During 1998, NAICC invested approximately $10.3 million in Japanese yen based equity securities. In order to hedge the currency risk of these investments, during the second quarter NAICC purchased a foreign currency option to sell Japanese yen at a fixed price on a given date in 1999. The foreign currency option is considered a derivative investment. The Company recorded an unrealized loss on the Japanese yen based equity securities of $1.1 million, of which $649,782 was a result of changes in foreign currency exchange rates, included in net unrealized gain (loss) on securities in the accompanying consolidated balance sheets. Investments in equity securities denominated in foreign currencies are translated into U.S. dollars using current rates of exchange and the related translation adjustments are recorded in net unrealized gain (loss) as a component of equity net of the unrealized exchange gain or loss associated with any related foreign exchange hedging instruments. In June 1998 the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"). SFAS 133 is effective for fiscal years beginning after June 15, 1999 and establishes standards for the reporting for derivative instruments. It requires changes in the fair value of a derivative instrument and the changes in fair value of the assets or liabilities hedged by that instrument to be included in income. To the extent that the hedge transaction is effective, income is equally offset by both investments. Currently the changes in fair value of derivative instruments and hedged items are reported in net unrealized gain (loss) on securities. The Company has not adopted SFAS 133. However, the effect of adoption on the consolidated financial statements at June 30, 1998 would not be material. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1. GENERAL Danielson Holding Corporation ("DHC") is organized as a holding company with substantially all of its operations conducted by subsidiaries (collectively with DHC, the "Company"). DHC, on a parent-only basis, has limited continuing expenditures for rent and administrative expenses and derives revenues primarily from investment returns on portfolio securities. Therefore, the analysis of the Company's financial condition is generally done on an operating subsidiary basis. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements, including statements concerning capital adequacy, adequacy of reserves, goals, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. Such forward-looking statements may be identified, without limitation, by the use of the words "believes", "anticipates", "expects", "intends", "plans" and similar expressions. All such statements represent only current estimates or expectations as to future results and are subject to risks and uncertainties which could cause actual results to materially differ from current estimates or expectations. See "RISK FACTORS THAT MAY AFFECT FUTURE RESULTS". 2. RESULTS OF NAICC'S OPERATIONS The operations of DHC's principal subsidiary, National American Insurance Company of California ("NAICC"), are primarily in specialty property and casualty insurance. At June 30, 1998, NAICC had a B++ rating from A.M. Best Company ("Best"). Property and Casualty Insurance Operations Net premiums earned were $13.6 million and $27.6 million for the three and six months ended June 30, 1998, respectively. Net premiums earned were $12.7 million and $23.5 million for the three and six months ended June 30, 1997, respectively. The increase in net premiums earned is directly related to increases in net premiums written. Net premiums written were $14.4 million and $30.2 million for the three and six months ended June 30, 1998, respectively. Net premiums written were $13.9 million and $27.2 million for the three and six months ended June 30, 1997, respectively. The increase in 1998 over the comparable periods in 1997 is attributable to the premium growth in the commercial automobile line of business. Net premiums written in the non-standard commercial automobile line increased by $3.5 million while net premiums written in the non-standard private passenger automobile line declined by $0.87 million over the comparable six month period in 1997. Net premiums written in the workers' compensation line increased slightly compared to the prior year. The increase in commercial automobile net premiums written is due to NAICC's continued increased marketing efforts in that line. Net investment income was $1.8 million and $4.1 million for the three and six months ended June 30, 1998, respectively. Net investment income was $2.3 million and $4.7 million for the three and six months ended June 30, 1997, respectively. The decline is reflective of a slight decrease in average portfolio yield on bonds for the 1998 periods, and the purchase of equity securities during the first six months of 1998. Net losses and loss adjustment expenses ("LAE") were $9.6 million and $19.6 million for the three and six months ended June 30, 1998, respectively, compared with $9.3 million and $17.1 million for the three and six months ended June 30, 1997, respectively. The resulting net loss and LAE ratios for the corresponding six month periods were 70.9 percent and 72.6 percent, respectively. The modest decrease in the net loss and LAE ratio in 1998 over 1997 is due to slightly more favorable experience in all lines of business. Policy acquisition costs were $3.3 million and $6.6 million for the three and six months ended June 30, 1998, respectively. Policy acquisition costs were $3.2 million and $6.2 million for the three and six months ended June 30, 1997, respectively. As a percentage of net premiums earned, policy acquisition expenses were 23.9 percent and 26.2 percent for the six months ended June 30, 1998 and 1997, respectively. The decline in the policy acquisition expense ratio in 1998 is due primarily to the overall growth in premium volume while fixed underwriting expenses of policy acquisition costs remained relatively constant. General and administrative expenses were $1.8 million and $3.6 million for the three and six months ended June 30, 1998, respectively. General and administrative expenses were $1.6 million and $3.5 million for the three and six months ended June 30, 1997, respectively. The combined ratios (which represent a ratio of losses and expenses to net earned premiums in a particular period) were 108.5 percent and 113.6 percent for the six months ended June 30, 1998 and 1997, respectively. Net income from insurance operations for the three and six months ended June 30, 1998 was $0.9 million and $2.2 million, respectively. Net income from insurance operations for the three and six months ended June 30, 1997 was $1 million and $4 million, respectively. The decrease in net income from insurance operations during the first six months of 1998 compared to the same period for 1997 is attributable primarily to the recognition of a realized gain of $2.2 million in the first quarter of 1997. Cash Flow from Insurance Operations Cash used in operations was $3.2 million and $7.2 million for the six months ended June 30, 1998 and 1997, respectively. The decrease in cash used in operations is due to the continued decline in payments of losses and LAE related to prior years and to an increase in premiums written. Overall cash and invested assets, at market value, at June 30, 1998 were $129.0 million, compared to $134.8 million at December 31, 1997. Liquidity and Capital Resources The Company's insurance subsidiaries require both readily liquid assets and adequate capital to meet ongoing obligations to policyholders and claimants, as well as to pay ordinary operating expenses. The primary sources of funds to meet these obligations are premium revenues, investment income, recoveries from reinsurance and, if required, the sale of invested assets. NAICC's investment policy guidelines require that all liabilities be matched by a comparable amount of investment grade invested assets. Management of NAICC believes that NAICC has both adequate capital resources and sufficient reinsurance to meet any unforeseen events such as natural catastrophes, reinsurer insolvencies or possible reserve deficiencies. The two most common measures of capital adequacy for insurance companies are premium-to-surplus ratios (which measure current operating risk) and reserves-to-surplus ratios (which measure financial risk related to possible changes in the level of loss and loss adjustment expense reserves). A commonly accepted standard net written premium-to-surplus ratio is 3 to 1, although this varies with different lines of business. NAICC's annualized net written premiums-to-surplus ratio of 1.4 to 1 and 1.3 to 1 for the six months ended June 30, 1998 and 1997, respectively, remains well under current industry standards. A commonly accepted standard for the ratio of losses and loss adjustment expense reserves-to-surplus ratio is 5 to 1, compared with NAICC's ratio of 1.8 to 1 at June 30, 1998. Given these relatively conservative financial security ratios, management is confident that existing capital is adequate to support continued higher than industry average premium growth for the foreseeable future. 3. RESULTS OF DHC'S OPERATIONS Cash Flow from Parent-Only Operations Operating cash flow of DHC on a parent-only basis is primarily dependent upon the rate of return achieved on its investment portfolio and the payment of general and administrative expenses incurred in the normal course of business. For the six months ended June 30, 1998 and 1997, cash used in parent-only operating activities was $1.1 million and $1.0 million, respectively. The increase in cash used was primarily attributable to the timing of certain expense payments and interest receipts offset by the expiration of certain non-recurring compensation expense obligations. For information regarding DHC's operating subsidiaries' cash flow from operations, see "2. RESULTS OF NAICC'S OPERATIONS, Cash Flow from Insurance Operations." Liquidity and Capital Resources At June 30, 1998, cash and investments of DHC were approximately $7.8 million, compared to $8.7 million at December 31, 1996. As described above, the primary use of funds was the payment of general and administrative expenses in the normal course of business. For information regarding DHC's operating subsidiaries' liquidity and capital resources, see "2. RESULTS OF NAICC'S OPERATIONS, Liquidity and Capital Resources." 4. AUTHORITATIVE ACCOUNTING PRONOUNCEMENTS In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"). SFAS 133 is effective for fiscal years beginning after June 15, 1999 and establishes standards for the reporting for derivative instruments. It requires changes in the fair value of a derivative instrument and the changes in fair value of the assets or liabilities hedged by that instrument to be included in income. To the extent that the hedge transaction is effective, income is equally offset by both investments. Currently the changes in fair value of derivative instruments and hedged items are reported in net unrealized gain (loss) on securities. The Company has not adopted SFAS 133. However, the effect of adoption on the consolidated financial statements at June 30, 1998 would not be material. As of January 1, 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130"). SFAS 130 establishes standards for the reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income encompasses all changes in stockholders' equity (except those arising from transactions with stockholders) and includes net income and net unrealized capital gains or losses on available-for-sale securities. As this new standard only relates to presentation of information, it has no impact on the results of operations or financial condition of the Company. In accordance with the provisions of SFAS 130, the Company has presented comprehensive income in its Statement of Stockholders' Equity. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" ("SFAS 131"). SFAS 131 establishes standards for the reporting of information about operating segments in annual financial statements and requires the reporting of select information about operating segments in interim financial reports. SFAS 131 is effective for financial statements for periods beginning after December 15, 1997. The Company currently operates as one segment. Therefore, the adoption of this standard would have no impact on the presentation of the Company's consolidated financial statements. 5. RISK FACTORS THAT MAY AFFECT FUTURE RESULTS As noted above, the foregoing discussion may include forward-looking statements that involve risks and uncertainties. In addition to other factors and matters discussed elsewhere herein, some of the important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements include the following: 1. The insurance products sold by the Company are subject to intense competition from many competitors, many of whom have substantially greater resources than the Company. There can be no assurance that the Company will be able to successfully compete and generate sufficient premium volume at attractive prices to be profitable. 2. In order to implement its business plan, the Company has been seeking to enter into strategic partnerships and/or make acquisitions of businesses that would enable the Company to earn an attractive return on investment. Restrictions on the Company's ability to issue additional equity in order to finance any such transactions exist which could significantly affect the Company's ability to finance any such transaction. The Company may have limited other resources with which to implement its strategy and there can be no assurance that any transaction will be successfully consummated. 3. The insurance industry is highly regulated and it is not possible to predict the impact of future state and federal regulation on the operations of the Company. PART II. OTHER INFORMATION Item 1. Legal Proceedings. NAICC is a party to various legal proceedings which are considered routine and incidental to its business and are not material to the financial condition and operation of its business. DHC is not a party to any legal proceeding which is considered material to the financial condition and operation of its business. Item 2. Changes in Securities and Use of Proceeds. Not applicable Item 3. Defaults Upon Senior Securities. Not applicable. Item 4. Submission of Matters to a Vote of Security Holders. Not applicable. Item 5. Other Information. Not applicable Item 6. Exhibits and Reports on Form 8-K. None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 14, 1998 DANIELSON HOLDING CORPORATION (Registrant) By: /s/ DAVID BARSE David Barse President & Chief Operating Officer By: /s/ MICHAEL CARNEY Michael Carney Chief Financial Officer EX-27 2 FDS
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000225648 DANIELSON HOLDING CORPORATION 1,000 U.S. DOLLARS 6-MOS DEC-31-1998 JAN-01-1998 JUN-30-1998 1 117,846 0 0 17,859 0 0 136,805 45 28,128 2,128 183,690 99,374 12,890 0 267 0 0 0 1,559 60,886 183,690 27,587 4,274 124 421 19,555 4,774 6,707 1,167 53 1,114 0 0 0 1,114 0.07 0.07 85,762 19,555 0 5,264 19,770 80,283 (940) INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 19,090 AND REINSURANCE RECOVERABLES ON PAID LOSSES OF 9,038. INCLUDES TREASURY STOCK OF 66. REPRESENTS EARNINGS PER SHARE-BASIC. REPRESENTS EARNINGS PER SHARE-DILUTED.
EX-27 3 FDS
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000225648 DANIELSON HOLDING CORPORATION 1,000 U.S. DOLLARS 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 1 140,040 0 0 629 0 0 142,667 1,964 29,517 1,749 191,076 111,014 11,735 0 256 0 0 0 1,559 58,368 191,076 23,528 4,989 2,206 305 17,080 4,337 6,617 2,979 19 2,960 0 0 0 2,960 0.19 0.18 97,105 17,080 0 4,671 19,026 90,488 (10,120) INCLUDES REINSURANCE RECOVERABLES ON UNPAID LOSSES OF 20,526 AND REINSURANCE RECOVERABLES OF PAID LOSSES OF 8,991 INCLUDES TREASURY STOCK 66. REPRESENTS EARNINGS PER SHARE-BASIC. REPRESENTS EARNINGS PER SHARE-DILUTED.
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