-----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, D5LvAM8Z5LDYE+NbbAFQ8NlWBdK7jyremWzn6dj5S38iiR7VuCW8u060oBmOKEtV 6M2MeISlrOFmlbDh9FhxNw== 0000950144-96-008286.txt : 19961118 0000950144-96-008286.hdr.sgml : 19961118 ACCESSION NUMBER: 0000950144-96-008286 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: CSX SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIBERTY CORP CENTRAL INDEX KEY: 0000059229 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 570507055 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05846 FILM NUMBER: 96664845 BUSINESS ADDRESS: STREET 1: P O BOX 789 STREET 2: WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032688283 MAIL ADDRESS: STREET 1: P O BOX 789 STREET 2: WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29602 10-Q 1 LIBERTY CORPORATION FORM 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) [xx] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996 ------------------ [ ] 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 1-5846 ------ THE LIBERTY CORPORATION ----------------------- (Exact name of registrant as specified in its charter) South Carolina 57-0507055 (State or other jurisdiction of (IRS Employer incorporation or organization) identification No.) Post Office Box 789, Wade Hampton Boulevard, Greenville, SC 29602 ------------------------------------------------------------------ (Address of principal executive offices) Registrant's telephone number, including area code: 864/609-8436 ------------ 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 Registrant's classes of common stock as of the latest practicable date. Number of shares Outstanding Title of each class as of September 30, 1996 ------------------- ---------------------------- Common Stock 20,186,351 Page 1 of 12 sequentially numbered pages. The Exhibit Index is on Page 10. 2 PART I, ITEM 1 THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED AND CONDENSED BALANCE SHEETS (In 000's) SEPTEMBER 30, December 31, 1995 1996 -------------- ---------------- ASSETS (Unaudited) Investments: Fixed Maturity Securities available for sale, at market, cost of $1,444,978 at 9/30/96 and $1,383,324 at 12/31/95 $ 1,478,573 $ 1,467,039 Equity Securities, at market, cost of $68,569 at 9/30/96 and $68,637 at 12/31/95 79,562 82,508 Mortgage Loans 227,469 213,223 Investment Real Estate 140,368 135,306 Loans to Policyholders 97,837 98,369 Other Long-Term Investments 23,449 27,535 Short-Term Investments 250 --- --------------------- --------------------- Total Investments 2,047,508 2,023,980 Cash 35,979 43,741 Accrued Investment Income 19,629 20,018 Receivables 49,766 46,098 Receivable from Reinsurers 254,505 275,090 Deferred Acquisition Costs and Cost of Business Acquired 333,801 352,113 Buildings and Equipment 79,657 79,789 Intangibles Related to Television Operations 94,954 99,056 Goodwill Related to Insurance Acquisitions 36,020 37,239 Other Assets 57,609 57,172 --------------------- --------------------- Total Assets $ 3,009,428 $ 3,034,296 ===================== ===================== LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY Liabilities Policy Liabilities $ 1,872,557 $ 1,862,859 Notes, Mortgages and Other Debt 163,421 158,444 Long Term Debt 100,000 100,000 Accrued Income Taxes 10,189 6,665 Deferred Income Taxes 150,241 182,083 Accounts Payable and Accrued Expenses 89,330 67,094 Other Liabilities 24,977 35,722 --------------------- --------------------- Total Liabilities 2,410,715 2,412,867 --------------------- --------------------- Redeemable Preferred Stock 1994-A Series, $35.00 redemption value, shares issued and outstanding - 668,207 in 1996 and 1995 23,387 23,387 1994-B Series, $37.50 redemption value, shares issued and outstanding - 593,826 in 1996 and 594,126 in 1995 22,269 22,280 --------------------- --------------------- Total Redeemable Preferred Stock 45,656 45,667 --------------------- --------------------- Shareholders' Equity Common Stock 162,553 158,735 Series 1995-A Convertible Preferred Stock, $35.00 redemption value, 599,985 shares issued and outstanding 20,999 20,999 Unearned Stock Compensation (7,363) (6,050) Unrealized Investment Gains (Losses) 26,879 57,986 Cumulative Foreign Currency Translation Adjustment (933) (999) Retained Earnings 350,922 345,091 --------------------- --------------------- Total Shareholders' Equity 553,057 575,762 --------------------- --------------------- Total Liabilities, Redeemable Preferred Stock and Shareholders' Equity $ 3,009,428 $ 3,034,296 ===================== =====================
See Notes to Consolidated and Condensed Financial Statements. 2 3 THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED AND CONDENSED STATEMENTS OF INCOME
Three Months ended Nine Months ended September 30, September 30, ----------------------- ------------------------ (In 000's, except per share data) 1996 1995 1996 1995 ------------ --------- ----------- --------- (Unaudited) REVENUES Insurance Premiums & Policy Charges $ 82,215 $ 83,554 $ 238,221 $252,308 Broadcasting Revenues 34,706 29,323 98,372 86,210 Net Investment Income 38,895 38,149 114,360 109,321 Service Contract Revenue --- 2,221 --- 6,713 Realized Investment Gains (Losses) (1,372) (14) (1,183) (2,708) Other Income 417 --- 657 --- ----------- -------- ------------ -------- Total Revenues 154,861 153,233 450,427 451,844 ----------- -------- ------------ -------- EXPENSES Policyholder Benefits 52,820 58,746 163,338 182,236 Insurance Commissions 17,702 14,022 48,932 40,946 General Insurance Expenses 24,171 16,559 52,528 50,564 Amortization of Deferred Acquisition Costs 39,656 11,214 61,104 31,861 Broadcasting Expenses 24,034 21,275 69,265 61,431 Interest Expense 3,962 3,935 11,421 11,138 Other Expenses 8,747 3,860 14,945 11,120 ----------- -------- ------------ -------- Total Expenses 171,092 129,611 421,533 389,296 ----------- -------- ------------ -------- Income (Loss) Before Income Taxes (16,231) 23,622 28,894 62,548 Income Tax Provision (Benefit) (5,411) 8,404 9,359 21,387 NET INCOME (LOSS) $ (10,820) $ 15,218 $ 19,535 $ 41,161 =========== ======== ============ ======== EARNINGS (LOSS) PER SHARE: (Exhibit 11) $ (0.55) $ .70 $ 0.84 $ 1.91 Dividends Per Common Share $ .185 $ .17 $ .54 $ .495
See Notes to Consolidated and Condensed Financial Statements. 3 4 THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, ------------------------------- (In 000's) 1996 1995 ------------- ------------- (Unaudited) OPERATING ACTIVITIES Net Income $ 19,535 $ 41,161 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Increase in policy liabilities (195) 17,701 Decrease in accounts payable and accrued liabilities 25,496 7,377 Decrease in receivables 9,472 (2,743) Amortization of policy acquisition costs 61,104 31,861 Policy acquisition costs deferred (38,204) (40,952) Realized investment (gains) losses 1,183 2,708 Gain on sale of operating assets (1,780) (2,488) Depreciation and amortization 16,962 14,187 Amortization of bond premium and discount (3,166) (5,003) Provision for deferred income taxes (15,338) 1,687 All other operating activities, net (20,011) 2,413 ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES 55,058 67,909 INVESTMENT ACTIVITIES Investment securities sold - available for sale 121,703 108,270 Investment securities matured or redeemed by issuer: Available for sale 55,619 21,523 Held to maturity --- 18,542 Cost of investment securities acquired - available for sale (229,809) (241,487) Mortgage loans made (31,173) (15,446) Mortgage loan repayments 16,875 17,316 Purchase of investment real estate, buildings and equipment (33,766) (49,028) Sale of investment real estate, buildings and equipment 21,663 22,486 Purchase of short-term investments (64,406) (33,690) Sales of short-term investments 64,156 39,347 Net cash paid on purchase of television station --- (5,140) All other investment activities, net (2,311) (2,642) ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES (81,449) (119,949) FINANCING ACTIVITIES Proceeds from borrowings 2,237,703 1,690,400 Principal payments on debt (2,234,404) (1,661,910) Dividends paid (13,704) (12,506) Stock issued for employee benefit and compensation programs 1,062 2,190 Return of policyholders' account balances (26,633) (26,761) Receipts credited to policyholders' account balances 54,605 56,790 ---------- ---------- NET CASH PROVIDED BY FINANCING ACTIVITIES 18,629 48,203 INCREASE (DECREASE) IN CASH (7,762) (3,837) Cash at beginning of year 43,741 51,400 ---------- ---------- CASH AT END OF PERIOD $ 35,979 $ 47,563 ========== ==========
See Notes to Consolidated and Condensed Financial Statements. 4 5 THE LIBERTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS September 30, 1996 (Unaudited) 1. BASIS OF PRESENTATION The accompanying unaudited consolidated and condensed financial statements of The Liberty Corporation and Subsidiaries have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The information included is not necessarily indicative of the annual results that may be expected for the year ended December 31, 1996, but it does reflect all adjustments considered, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented (See Note 2 below for discussion of special charges reported in the third quarter of 1996). For further information, refer to the consolidated financial statements and footnotes thereto included in The Liberty Corporation annual report on Form 10-K for the year ended December 31, 1995. 2. SPECIAL CHARGES During the third quarter of 1996, and concurrent with a realignment of the Company's management structure, the Company completed a detailed study of its insurance product lines, including products currently being marketed as well as those previously sold by the Company's subsidiaries (including recently acquired companies). This study identified several specific products, marketing programs, underwriting and service methods that were inconsistent with the Company's current strategies and profit objectives. Based on this analysis, the Company took a $26.9 million after-tax charge, which principally represents the write-off of deferred acquisition costs where recovery is no longer assured due to actual experience on these products being worse than originally assumed. In addition to the product-related charges, the Company wrote off previously deferred costs associated with acquiring and modifying an administrative system for the Company's pre-need business. With the realignment previously mentioned, a decision was made to move to a new administrative platform for pre-need. All of the charges represent non-cash items, and will have no material impact on the insurance companies' statutory financial condition. 3. COMMITMENTS AND CONTINGENCIES At September 30, 1996, the Company had made commitments as shown below: (In 000's) Investment real estate $ 2,241 Mortgage loans and bonds 39,630 Other 10,746 ------- $52,617 =======
5 6 PART I, ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (Unaudited) OPERATIONS For the third quarter of 1996, the Company reported a consolidated net loss of $10.8 million, compared with net income of $15.2 million for the same period during 1995 (see table below). This $26.0 million decrease includes a non-recurring after-tax charge of $26.9 million. During the third quarter, and concurrent with a realignment of the Company's management structure, the Company completed a detailed study of its insurance product lines, including products currently being marketed as well as those previously sold by the Company's subsidiaries (including recently acquired companies). This study identified several specific products, marketing programs, underwriting and service methods that were inconsistent with the Company's current strategies and profit objectives. Based on this analysis, the Company took a $26.9 million charge, which principally represents the write-off of deferred acquisition costs where recovery is no longer assured due to actual experience on these products being worse than originally assumed. In addition to the product-related charges, the Company wrote off previously deferred costs associated with acquiring and modifying an administrative system for the Company's pre-need business. With the realignment previously mentioned, a decision has been made to move to a new administrative platform for pre-need. All of the charges represent non-cash items, and will have no material impact on the insurance companies' statutory financial condition. In the accompanying financial statements, the effects of the special charges are reported in general insurance expenses and amortization of deferred acquisition costs on the income statement, and deferred acquistion costs and other assets on the balance sheet. Excluding the special charges, the Company would have reported net income of $16.1 million, an increase of 6% over the prior year. Operating earnings of $17.0 million (which exclude the special charges and net realized investment gains and losses) increased $1.8 million (11%) over 1995's third quarter. Net income reflects the $26.9 million special charge and realized investment losses (after-tax) of $.9 million and $.1 million in the third quarter of 1996 and 1995, respectively. Year-to-date net income of $19.5 million decreased 53% from the comparable 1995 period as a result of the special charges. Excluding the special charges, net income would have increased $5.3 million (13%). Operating earnings increased $4.0 million (9%) over the same period of 1995. Net income includes realized investment losses (after tax) of $.6 million for the first nine months of 1996 compared to realized investment losses of $1.9 million for the 1995 period. The remainder of the discussion will exclude the impact of the special charges.
Third Quarter Year-to-date ------------------- ------------------- 1996 1995 1996 1995 --------- -------- --------- -------- Income Before Income Taxes and Special Charges $ 24,412 $ 23,622 $ 69,537 $ 62,548 Income Taxes 8,288 8,404 23,058 21,387 -------- -------- -------- -------- Income Before Special Charges 16,124 15,218 46,479 41,161 Special Charges (40,643) --- (40,643) --- Income Tax Benefit from Special Charges (13,699) --- (13,699) --- -------- -------- -------- -------- Net Income $(10,820) $ 15,218 $ 19,535 $ 41,161 ======== ======== ======== ========
Excluding realized gains and losses, over the comparable prior year quarter the Company's insurance operations reported a decrease in pre-tax income of $.2 million, broadcasting had an increase in pre-tax income of $2.6 million, and the Parent Company had an increased pre-tax loss of $.3 million. Liberty Life reported a decrease in pre-tax earnings of $.4 million, as strong sales of an accidental death product in the mortgage protection division and favorable mortality were offset by higher amortization of deferred acquisition costs resulting from higher lapses. The FamilySide pre-need business reported a $.1 million increase in pretax earnings from the prior year, as, similar to Liberty Life, favorable mortality was offset by higher lapses. Also, FamilySide continues to be impacted by lower sales since the rollout of the new product portfolio in late 1995. 6 7 The Liberty Corporation and Subsidiaries Management's Discussion and Analysis of Operations September 30, 1996 The broadcasting operations reported pretax earnings of $8.5 million versus $5.9 million in 1995. Cosmos earnings benefited from the Olympics and strong political revenues. Local revenues increased 25% over the comparable prior year quarter. The parent company reported a $.3 million higher pre-tax loss compared with the third quarter of 1995, as higher operating expenses and lower lot and land sales were partially offset by increased rental income from a lease termination payment. Interest expense remained relatively level with the prior year period as a higher debt balance was offset by lower interest rates. Consolidated revenues increased $1.9 million (1%) over the prior year third quarter due to a $5.4 million (18%) increase in broadcasting revenues; a $4.6 million decrease in revenues from the insurance operations, due to (1) lower premiums from FamilySide, (2) a $1.8 million negative fluctuation in realized gains and losses, and (3) a $3.6 million decrease in service revenues as the operations of Liberty Insurance Services are being reported on an equity basis in 1996; and a $1.1 million increase in the parent company, primarily due to the lease termination payment previously discussed. Excluding the impact of realized investment gains and losses, consolidated revenues increased $3.2 million (2%). Through the first nine months of 1996, insurance premiums and policy charges decreased $13.8 million (5%) from the prior year due to the continuing lower sales in the FamilySide preneed business. The quarterly comparison included $7.2 million less premiums in FamilySide, offset by an increase of $6.2 million in Liberty Life, primarily due to strong sales of an accidental death product in the mortgage protection marketing arm. The increase in broadcasting revenues for the quarter was driven by a local revenue increase of $4.0 million due to the strong advertising demand during the Olympics, and a $1.0 million increases in political revenues. The year-to-date increase was partially due to WLOX contributing nine months of revenues in 1996, compared to only seven months in 1995. The $2.2 million (16%) increase in commissions is primarily related to the growth of the Company's accidental death product group. A substantial amount of this line of business is marketed through a third party marketer. All payments to this third party, which include commissions and certain payments for certain general and administrative functions, are reported as commissions expense. The year-to-date variance is also due to the reporting of the payments to this third party marketer. Deferred acquisition cost amortization increased over the third quarter of 1995 by $2.3 million, due to higher lapses in both Liberty Life and FamilySide. Year-to-date broadcasting expenses were up 13% due to the additional expenses associated with the WLOX-TV operation for two additional months during 1996 compared to 1995. Other expenses decreased for the nine months compared to the prior year due to a one-time non-recurring adjustment of $2.4 million related to reducing previously accrued expenses due to a technical change in how vacation benefits are earned. INVESTMENTS As of September 30, 1996, approximately 62% of the Company's $2.0 billion consolidated invested assets were in bonds with an overall average credit rating of AA-. Approximately 3.4% of the bond portfolio was rated below investment grade. Approximately 47% of the Company's $1.4 billion bond portfolio at September 30, 1996, was comprised of mortgage-backed securities, compared with 56% at December 31, 1995. Certain mortgage-backed securities are subject to significant prepayment or extension risk due to changes in interest rates. In periods of declining interest rates, mortgages may be repaid more rapidly than 7 8 The Liberty Corporation and Subsidiaries Management's Discussion and Analysis of Operations September 30, 1996 scheduled as borrowers refinance higher rate mortgages to take advantage of the lower current rates. As a result, holders of mortgage-backed securities may receive large prepayments on their investments which cannot be reinvested at interest rates comparable to the rates on the prepaid mortgages. In a rising interest rate environment refinancings are significantly curtailed and the payments to the holders of the securities decline, limiting the ability of the holder to reinvest at the higher interest rates. Mortgage-backed pass-through securities and sequential collateralized mortgage obligations ("CMO's"), which comprised 17% of the book value of the Company's mortgage-backed securities at September 30, 1996, and 20% at December 31, 1995, are sensitive to prepayment or extension risk. The remaining 83% of the Company's mortgage-backed investment portfolio at September 30, 1996, consisted of planned amortization class ("PAC") instruments compared to approximately 80% at December 31, 1995. These investments are designed to amortize in a more predictable manner by shifting the primary prepayment and extension risk of the underlying collateral to investors in other tranches of the CMO. Mortgage loans of $227.5 million comprised 11% of the consolidated investment portfolio at September 30, 1996. Substantially all of these mortgage loans are commercial mortgages with a loan to value ratio not exceeding 75% when made. These loans are concentrated in the southeast primarily in the states of North Carolina, South Carolina, Georgia, Florida, Virginia, Louisiana and Tennessee. Investment real estate at September 30, 1996, of $140.4 million comprised 7% of the consolidated investment portfolio, the same percentage as at December 31, 1995. Three key property types make up the bulk of the Company's real estate investment assets: residential land development, business parks, and business property rentals. The majority of the Company's investment real estate is located in South Carolina, Florida, Georgia, and North Carolina. FINANCIAL POSITION In accordance with the provisions of SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities", the Company reported an unrealized gain of $26.9 million on fixed maturity securities available for sale and equity securities as of September 30, 1996. This compares with an unrealized gain of $58.0 million at December 31, 1995. The decrease is due to the negative impact on the market value of the portfolio associated with rising interest rates during the first nine months of 1996. CAPITAL, FINANCING AND LIQUIDITY The Company's net cash flow from operating activities was $55.1 million for the first nine months of 1996 compared to $67.9 million for the same period of 1995. The Company's net cash used in investing activities was $81.4 million, and cash flow provided from financing activities was $18.6 million. As a result of its activities, the Company had a $7.8 million decrease in cash compared to a decrease of $3.8 million in the same period in 1995. At September 30, 1996, the Company's borrowings and notes payable amounted to $263.4 million, an increase from the $258.4 million outstanding at December 31, 1995. The increase was primarily a function of borrowings used to meet working capital requirements in the parent company during the first nine months of the year. The Company uses various interest rate swaps and caps to help minimize the impact of a potential significant rise in short term interest rates. (See the Company's 1995 Annual Report to Shareholders for a description of the interest rate swaps and caps in place.) The Company has not used interest rate swaps or any other derivative financial instruments to manage its interest rate exposure on interest sensitive universal-life type products. Other Company commitments are shown in Note 3 contained in the accompanying financial statements. Additional detail as to commitments and financing is contained in the Notes to the Consolidated Financial Statements in the Company's annual report on Form 10K for the year ended December 31, 1995. 8 9 The Liberty Corporation and Subsidiaries Management's Discussion and Analysis of Operations September 30, 1996 Further discussion of investments and valuation is contained in Notes 1 and 2 to the Consolidated Financial Statements in the Company's annual report on Form 10K for the year ended December 31, 1995. ACCOUNTING DEVELOPMENTS The Company adopted Statement of Financial Accounting Standard No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" ("SFAS No. 121"), on January 1, 1996. The results of adoption did not have a material effect on the net income or financial position of the Company. For additional information, see Note 2 to the Consolidated and Condensed Financial Statements in the Company's first quarter report on Form 10-Q. The Company adopted Statement of Financial Accounting Standard No. 123, "Accounting for Stock-Based Compensation" ("SFAS No. 123"), on January 1, 1996. For additional information, see Note 3 to the Consolidated and Condensed Financial Statements in the Company's first quarter report on Form 10-Q. 9 10 PART II, ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K (a) A list of the exhibits filed with this report is included in the Index to Exhibits filed herewith. (b) The filing of Form 8-K was not required during the third quarter of 1996. INDEX TO EXHIBITS EXHIBIT 11 Consolidated Earnings Per Share Computation EXHIBIT 27 Financial Data Schedule (Electronic Filing Only) 10 11 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. THE LIBERTY CORPORATION Date: November 15, 1996 - ----------------------- (Registrant) /s/ H. Ray Eanes - ---------------- H. Ray Eanes Senior Vice President Finance & Treasurer /s/ John P. Smith - ----------------- John P. Smith Corporate Controller 11 EX-11 2 COMPUTATION OF EARNINGS PER SHARE 1 EXHIBIT 11 THE LIBERTY CORPORATION AND SUBSIDIARIES CONSOLIDATED EARNINGS PER SHARE COMPUTATION
Three Months Ended Nine Months Ended September 30 September 30, -------------------------- -------------------------- 1996 1995 1996 1995 ------------- ----------- ----------- ----------- (Unaudited) PRIMARY SHARES Common shares outstanding - end of period 20,186,351 20,025,013 20,186,351 20,025,013 Weighted average common shares outstanding 20,183,661 19,999,651 20,134,707 19,922,201 Weighted average common stock options outstanding 144,040 140,654 145,726 106,785 Preferred stock considered a common stock equivalent 599,985 599,985 599,985 468,877 ------------ ----------- ----------- ----------- Total primary shares 20,927,686 20,740,290 20,880,418 20,497,863 ============ =========== =========== =========== FULLY DILUTED SHARES Weighted average common shares outstanding 20,183,661 19,999,651 20,134,707 19,922,201 Weighted average common stock options outstanding 171,368 170,159 154,854 125,405 Preferred stock considered a common stock equivalent 599,985 599,985 599,985 468,877 Assumed conversion of redeemable preferred stock not considered a common stock equivalent 1,262,033 1,264,692 1,261,782 1,265,516 ------------ ----------- ----------- ----------- Total fully diluted shares 22,217,047 22,034,487 22,151,328 21,781,999 ============ =========== =========== =========== NET INCOME $(10,820,000) $15,218,000 $19,535,000 $41,161,000 Preferred stock dividends on redeemable preferred stock $ 663,000 $ 665,000 $ 1,989,000 $ 1,995,000 ------------ ----------- ----------- ----------- Net income available to common shares $(11,483,000) $14,553,000 $17,546,000 $39,166,000 ============ =========== =========== =========== Primary earnings per share (net income available to common shares divided by total primary shares) $ (0.55) $ 0.70 $ 0.84 $ 1.91 ============ =========== =========== =========== Fully diluted earnings per share (net income divided by total fully diluted shares) $ (0.49) $ 0.69 $ 0.88 $ 1.89 ============ =========== =========== ===========
12 EX-27 3 FINANCIAL DATA SCHEDULE
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF LIBERTY TRANSPORTION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 1,478,573 0 0 79,562 227,469 140,368 2,047,508 35,979 254,505 333,801 3,009,428 1,839,566 0 3,812 29,179 263,421 45,656 20,999 162,553 369,505 3,009,428 238,221 114,360 (1,183) 99,029 163,338 61,104 101,460 28,894 9,359 19,535 0 0 0 19,535 .84 .88 0 0 0 0 0 0 0
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