Standard Management Reports First Quarter 2001 Results

Net Income up 41%



Apr 26, 2001, 01:00 ET from Standard Management Corporation

    INDIANAPOLIS, April 26 /PRNewswire/ -- Standard Management ("SMAN" or the
 "Company") (Nasdaq: SMAN) posted a 41% increase in net income per diluted
 share and record domestic sales for the first quarter of 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO )
 
     Highlights
     * Net income increased 41% per diluted share to $2.0 million, or $.24 per
       diluted share
     * Operating earnings increase to $2.0 million, or $.24 per diluted share,
       a 20% increase
     * Domestic sales increase 57% to a record $63.9 million
     * SMAN's domestic subsidiary Standard Life Insurance Company of Indiana
       (Standard Life) upgraded to B++ by A. M. Best
 
     Chairman's Comments
     Ronald D. Hunter, Standard Management chairman, stated, "Our focus on
 building an organization that creates a consistent combination of growth and
 profitability remains key to our success.  Our results this quarter continue
 to demonstrate the accomplishment of these objectives evidenced by a 57%
 increase in domestic sales and a 20% increase in diluted operating earnings
 per share.
     "The recent Standard Life upgrade to B++, by A. M. Best, positions
 Standard Management for continued sales growth and enhances its ability to
 compete in the dynamic financial services sector."
 
     Operating Earnings
     * For the quarter ended March 31, 2001, the Company reported operating
       earnings of $2.0 million, or $.24 per diluted share, a 20% increase on a
       per share basis over 2000's first quarter of $1.63 million, or $.20 per
       diluted share.
     * Domestic operating earnings for the quarter increased to $1.5 million or
       $0.18 per diluted share, an increase of 20%, from $1.2 million, or $0.15
       per diluted share for the same period in 2000.  Operating earnings were
       positively impacted by a lower marginal effective tax rate due to the
       utilization of net operating loss carryforwards, which contributed $0.02
       per diluted share.
     * International operating earnings for the quarter rose to $469,000 or
       $0.06 per diluted share, an increase of 20%, from $445,000, or $.05 for
       the same period in 2000.  Current quarter results reflect a 22% increase
       in fee-based income, somewhat offset by increased operating expenses.
 
     Net Income
     * For the quarter ended March 31, 2001, net income was $2.0 million, or
       $.24 per diluted share, an increase of 41% from $1.4 million, or $.17
       per diluted share, for the first quarter of 2000.
     * Net realized investment gains after tax were $14,000, compared to net
       realized investment losses after tax of $263,000 or $.03 per diluted
       share for the first quarter of 2000.
 
     Improving Fundamentals
     Pete Pheffer, CFO of the holding company, stated, "Current quarter results
 reflect our strategy of improving fundamentals through growth in fee based
 income, which now exceeds 50% of earnings.  Further, additional progress was
 made toward our goal of increasing operating return on equity, which now
 stands at 10.5% up from 8.2% for the prior year."
 
     Premium Deposits
     * Premium deposits collected (sales) posted a 37% increase to
       $92.6 million for the first quarter of 2001, compared to $67.8 million
       for the first quarter of 2000.
     * Domestic premium deposits were $63.9 million for the quarter ended
       March 31, 2001, an increase of 57% compared to $40.8 million for the
       first quarter of 2000.
     * International operations reported premium deposits of $28.7 million for
       the first quarter of 2001, an increase of 6% over $27.0 million for the
       first quarter of 2000.
 
     Domestic premium deposits represent premium deposits collected from
 interest-sensitive annuities and other financial products.  International
 premium deposits represent premium deposits on unit-linked contracts which
 generate fee-based income.  These deposits are not reported as revenue under
 generally accepted accounting principles.
 
     Assets
     * Total assets increased to $1.49 billion, an increase of 2% over year-end
       2000 results.  Domestic assets were $968 million, up 5.0%, primarily
       driven by sales.  International assets of $527 million declined
       $21 million or 3.9%, as a result of declining worldwide equity markets.
 
     Shareholders' Equity/Book Value
     * Shareholders' equity as traditionally reported (which does not include
       unrealized investment gains and losses) was $75.6 million at March 31,
       2001 compared to $72.5 million at December 31, 2000.  Diluted book value
       per share, as traditionally reported, was $9.83 per share at March 31,
       2001 compared to $9.51 at December 31, 2000.
     * Shareholders' equity as reported in the consolidated balance sheet was
       $71.0 million at March 31, 2001 compared to $62.9 million at
       December 31, 2000.  Diluted book value per share was reported as $9.28
       at March 31, 2001 compared to $8.35 at December 31, 2000.
 
     SMC is an international financial services holding company headquartered
 in Indianapolis, IN.  The Company operates insurance companies in the U.S. as
 well as companies in Luxembourg and Bermuda.  Information about the company
 can be obtained by calling the Investor Relations Department at 317-574-5221
 or via the Internet at http://www.SMANcorp.com .
     The statements contained in this press release that are not purely
 historical are forward-looking statements within the meaning of Section 37A of
 the Securities Exchange Act of 1934, including statements regarding the
 company's hopes, beliefs, intentions, or strategies regarding the future.
 Forward-looking statements include expectation of growth rates, new business,
 and acquisitions.
 
 
                  STANDARD MANAGEMENT CORPORATION  (NASDAQ:   SMAN)
            (Unaudited, dollars in thousands, except per share amounts)
                   CONDENSED CONSOLIDATED FINANCIAL INFORMATION
 
                                                      Three Months Ended
                                                            March 31
                                                    2001               2000
     RESULTS OF OPERATIONS
 
       Premium deposits (a):
         Domestic                                  $63,909            $40,815
         International                              28,670             26,966
                 Total                             $92,579            $67,781
 
       Revenues                                    $19,072            $19,201
 
       Operating income:
         Domestic                                   $1,517             $1,183
         International                                 469                445
                 Total operating income              1,986              1,628
 
       Net realized investment gains (losses)           14               (263)
 
                   Net Income                        2,000              1,365
 
       Preferred stock dividends                      (127)              (127)
       Earnings available to common shareholders    $1,873             $1,238
 
 
 
     PER SHARE DATA (Diluted)
 
       Operating income:
         Domestic                                     $0.18             $0.15
         International                                 0.06              0.05
                 Total operating income                0.24              0.20
 
       Net realized investment gains (losses)          0.00             (0.03)
 
                   Net Income                          0.24              0.17
 
       Preferred stock dividends                       0.00             (0.01)
       Earnings available to common shareholders      $0.24             $0.16
 
       Weighted average shares outstanding        7,545,156         7,785,156
       Weighted average shares outstanding
        (Diluted)                                 8,341,247         9,549,557
 
 
                                                  March 31       December 31
     BALANCE SHEET                                  2001              2000
                                                                    (Audited)
 
       Total assets                              $1,494,946        $1,470,457
       Debt                                          28,500            31,500
       Redeemable preferred stock                     6,530             6,530
       Shareholders' equity:
         Excluding unrealized loss on securities     75,619            72,542
         As reported                                 70,980            62,899
       Book value per share (Diluted) (b):
         Excluding unrealized loss on securities      $9.83             $9.51
         As reported                                   9.28              8.35
 
     (a) Domestic sales represent premium deposits collected from interest-
         sensitive annuities and other financial products.
         International sales represent premium deposits on unit-linked
         contracts which generate fee-based income.
         These deposits are not reported as revenue under generally accepted
         accounting principles.
     (b) Considers conversion of options, warrants and preferred stock using
         the treasury stock method and stock price as of respective balance
         sheet date.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64808420
 
 

SOURCE Standard Management Corporation
    INDIANAPOLIS, April 26 /PRNewswire/ -- Standard Management ("SMAN" or the
 "Company") (Nasdaq: SMAN) posted a 41% increase in net income per diluted
 share and record domestic sales for the first quarter of 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO )
 
     Highlights
     * Net income increased 41% per diluted share to $2.0 million, or $.24 per
       diluted share
     * Operating earnings increase to $2.0 million, or $.24 per diluted share,
       a 20% increase
     * Domestic sales increase 57% to a record $63.9 million
     * SMAN's domestic subsidiary Standard Life Insurance Company of Indiana
       (Standard Life) upgraded to B++ by A. M. Best
 
     Chairman's Comments
     Ronald D. Hunter, Standard Management chairman, stated, "Our focus on
 building an organization that creates a consistent combination of growth and
 profitability remains key to our success.  Our results this quarter continue
 to demonstrate the accomplishment of these objectives evidenced by a 57%
 increase in domestic sales and a 20% increase in diluted operating earnings
 per share.
     "The recent Standard Life upgrade to B++, by A. M. Best, positions
 Standard Management for continued sales growth and enhances its ability to
 compete in the dynamic financial services sector."
 
     Operating Earnings
     * For the quarter ended March 31, 2001, the Company reported operating
       earnings of $2.0 million, or $.24 per diluted share, a 20% increase on a
       per share basis over 2000's first quarter of $1.63 million, or $.20 per
       diluted share.
     * Domestic operating earnings for the quarter increased to $1.5 million or
       $0.18 per diluted share, an increase of 20%, from $1.2 million, or $0.15
       per diluted share for the same period in 2000.  Operating earnings were
       positively impacted by a lower marginal effective tax rate due to the
       utilization of net operating loss carryforwards, which contributed $0.02
       per diluted share.
     * International operating earnings for the quarter rose to $469,000 or
       $0.06 per diluted share, an increase of 20%, from $445,000, or $.05 for
       the same period in 2000.  Current quarter results reflect a 22% increase
       in fee-based income, somewhat offset by increased operating expenses.
 
     Net Income
     * For the quarter ended March 31, 2001, net income was $2.0 million, or
       $.24 per diluted share, an increase of 41% from $1.4 million, or $.17
       per diluted share, for the first quarter of 2000.
     * Net realized investment gains after tax were $14,000, compared to net
       realized investment losses after tax of $263,000 or $.03 per diluted
       share for the first quarter of 2000.
 
     Improving Fundamentals
     Pete Pheffer, CFO of the holding company, stated, "Current quarter results
 reflect our strategy of improving fundamentals through growth in fee based
 income, which now exceeds 50% of earnings.  Further, additional progress was
 made toward our goal of increasing operating return on equity, which now
 stands at 10.5% up from 8.2% for the prior year."
 
     Premium Deposits
     * Premium deposits collected (sales) posted a 37% increase to
       $92.6 million for the first quarter of 2001, compared to $67.8 million
       for the first quarter of 2000.
     * Domestic premium deposits were $63.9 million for the quarter ended
       March 31, 2001, an increase of 57% compared to $40.8 million for the
       first quarter of 2000.
     * International operations reported premium deposits of $28.7 million for
       the first quarter of 2001, an increase of 6% over $27.0 million for the
       first quarter of 2000.
 
     Domestic premium deposits represent premium deposits collected from
 interest-sensitive annuities and other financial products.  International
 premium deposits represent premium deposits on unit-linked contracts which
 generate fee-based income.  These deposits are not reported as revenue under
 generally accepted accounting principles.
 
     Assets
     * Total assets increased to $1.49 billion, an increase of 2% over year-end
       2000 results.  Domestic assets were $968 million, up 5.0%, primarily
       driven by sales.  International assets of $527 million declined
       $21 million or 3.9%, as a result of declining worldwide equity markets.
 
     Shareholders' Equity/Book Value
     * Shareholders' equity as traditionally reported (which does not include
       unrealized investment gains and losses) was $75.6 million at March 31,
       2001 compared to $72.5 million at December 31, 2000.  Diluted book value
       per share, as traditionally reported, was $9.83 per share at March 31,
       2001 compared to $9.51 at December 31, 2000.
     * Shareholders' equity as reported in the consolidated balance sheet was
       $71.0 million at March 31, 2001 compared to $62.9 million at
       December 31, 2000.  Diluted book value per share was reported as $9.28
       at March 31, 2001 compared to $8.35 at December 31, 2000.
 
     SMC is an international financial services holding company headquartered
 in Indianapolis, IN.  The Company operates insurance companies in the U.S. as
 well as companies in Luxembourg and Bermuda.  Information about the company
 can be obtained by calling the Investor Relations Department at 317-574-5221
 or via the Internet at http://www.SMANcorp.com .
     The statements contained in this press release that are not purely
 historical are forward-looking statements within the meaning of Section 37A of
 the Securities Exchange Act of 1934, including statements regarding the
 company's hopes, beliefs, intentions, or strategies regarding the future.
 Forward-looking statements include expectation of growth rates, new business,
 and acquisitions.
 
 
                  STANDARD MANAGEMENT CORPORATION  (NASDAQ:   SMAN)
            (Unaudited, dollars in thousands, except per share amounts)
                   CONDENSED CONSOLIDATED FINANCIAL INFORMATION
 
                                                      Three Months Ended
                                                            March 31
                                                    2001               2000
     RESULTS OF OPERATIONS
 
       Premium deposits (a):
         Domestic                                  $63,909            $40,815
         International                              28,670             26,966
                 Total                             $92,579            $67,781
 
       Revenues                                    $19,072            $19,201
 
       Operating income:
         Domestic                                   $1,517             $1,183
         International                                 469                445
                 Total operating income              1,986              1,628
 
       Net realized investment gains (losses)           14               (263)
 
                   Net Income                        2,000              1,365
 
       Preferred stock dividends                      (127)              (127)
       Earnings available to common shareholders    $1,873             $1,238
 
 
 
     PER SHARE DATA (Diluted)
 
       Operating income:
         Domestic                                     $0.18             $0.15
         International                                 0.06              0.05
                 Total operating income                0.24              0.20
 
       Net realized investment gains (losses)          0.00             (0.03)
 
                   Net Income                          0.24              0.17
 
       Preferred stock dividends                       0.00             (0.01)
       Earnings available to common shareholders      $0.24             $0.16
 
       Weighted average shares outstanding        7,545,156         7,785,156
       Weighted average shares outstanding
        (Diluted)                                 8,341,247         9,549,557
 
 
                                                  March 31       December 31
     BALANCE SHEET                                  2001              2000
                                                                    (Audited)
 
       Total assets                              $1,494,946        $1,470,457
       Debt                                          28,500            31,500
       Redeemable preferred stock                     6,530             6,530
       Shareholders' equity:
         Excluding unrealized loss on securities     75,619            72,542
         As reported                                 70,980            62,899
       Book value per share (Diluted) (b):
         Excluding unrealized loss on securities      $9.83             $9.51
         As reported                                   9.28              8.35
 
     (a) Domestic sales represent premium deposits collected from interest-
         sensitive annuities and other financial products.
         International sales represent premium deposits on unit-linked
         contracts which generate fee-based income.
         These deposits are not reported as revenue under generally accepted
         accounting principles.
     (b) Considers conversion of options, warrants and preferred stock using
         the treasury stock method and stock price as of respective balance
         sheet date.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64808420
 
 SOURCE  Standard Management Corporation