(October 20 – 11:55 ET) –
Strategic Value Corporation
is pleased to announce its
financial results for the three
months and nine months ended
September 30th, 1999. Total
revenues of $23.2 million for the
three-month period and $54.6
million for the nine-month period
generated net earnings of $0.6
million, or $0.03 per share fully
diluted, and $3.1 million, or
$0.14 per share fully diluted,
respectively.
Net earnings for the quarter
were significantly reduced by a
one-time charge of $2,125,000,
which was incurred as a result of
the resignation of Jim O’Donnell,
subsequent to the acquisition of
O’Donnell Investment Management
by SVC. Net earnings would have
been $0.08 per share fully diluted,
for the quarter and $0.19 per
share fully diluted, for the
nine-month period, if it, had not
been for this one-time charge.
The acquisition of O’Donnell
Investment Management on June 2,
1999 added approximately $1.2
billion in additional assets
under management. Consequently,
there is a corresponding increase
in both revenues and expenses
compared to previous quarters. The
third quarter results of 1999
reflect three full months of
combined business activity.
Cash flow from operations
amounted to $6.3 million for the
three-month period, or $0.27 per
share fully diluted. For the
nine-month period, cash flow from
operations amounted to $15.9
million, or $0.70 per share fully
diluted. Cash flow accretion,
in part due to the O’Donnell
acquisition, is reflected by a
28.6% increase in fully diluted
cash flow per share over the
previous quarter, from $0.21 to
$0.27. For the nine-month period
fully diluted cash flow per share
increased by 12.9% over the
previous nine-month period,
from $0.62 to $0.70.
This enhanced cash flow from
operations enabled SVC to reduce
the long-term debt outstanding of
the Company by $5.8 million in
the quarter.
-IE Staff
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