Western Financial Group Reports First Quarter 2008 Results
For Immediate Release
High River, Alberta – May 7, 2008, (TSX – WES ) - Western Financial Group (“the Company”) announced today its operating and financial results for the three months ended March 31, 2008.
Financial Highlights
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(in $ thousands) |
2008 |
2007 |
% change |
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THE NETWORK |
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Revenue ($) |
16,489 |
14,544 |
13.4% |
|
Operating income ($) |
3,850 |
4,382 |
(12.1%) |
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BANK WEST |
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Interest and investment income ($) |
4,942 |
2,560 |
93.0% |
|
Net interest income |
1,546 |
979 |
57.9% |
|
Operating income ($) |
697 |
288 |
142.0% |
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WESTERN LIFE |
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Premium and investment income ($) |
8,004 |
6,890 |
16.2% |
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Operating income ($) |
1,176 |
833 |
41.2% |
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CORPORATE AND ALL OTHER |
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Revenue ($) |
667 |
565 |
18.1% |
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Operating loss ($) |
(1,730) |
(1,615) |
(7.1%) |
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CONSOLIDATED |
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Revenue ($) |
30,102 |
24,559 |
22.6% |
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Net Income ($) |
2,386 |
2,545 |
(6.2%) |
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Earnings per share |
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|
|
|
- basic ($) |
$0.05 |
$0.06 |
(16.7%) |
|
- diluted ($) |
$0.04 |
$0.05 |
(20.0%) |
“We have an encouraging start to 2008,” said Scott Tannas, Western’s C.E.O. “The Bank and Western Life are strong contributors and the Network saw a 13% revenue increase. Net income is down over Q1 2007 because of additional Network expenses that will normalize over the year. We’re on track to achieve our key 2008 objectives.”
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2008 OBJECTIVES Same Store Revenue 7%-10% growth Bank Assets 10% growth EPS 8%-12% growth |
The Network showed solid growth in same store sales, up from 7.6% to 8.5% year over year. Products per customer held steady at 2.2%, while commissions and other customer revenue rose 13.4%.
Bank West grew its loan book by 84.3% due to the acquisition of Ubiquity Bank as well as through organic growth. The Bank is on budget with operating income growth of 142.0% to $697,000 for the first quarter of 2008 compared to the same quarter in 2007.
Western Life continues to post good numbers after a strong 2007. Premium and investment income rose 16.2%, policyholder benefits increased 8.7%, and while operating expenses rose 17.9%, overall operating income rose 41.2%.
The Company’s equity partners of Jennings Capital, HED, Falkins Insurance and Harvard Western had first quarter results in line with expectations.
Conference Call
Western Financial Group will host a conference call to discuss the Company's first quarter financial results on Friday, May 9, 2008 at 11:00 am Mountain Time (1:00 pm Eastern Time). Participants are asked to call either (416) 644-3432 or (866) 250-4909. To access the replay please dial either (416) 640-1917 or (877) 289-8525 and enter the passcode 21271529 followed by the pound sign. The conference will also be broadcast live over the internet and archived through the Company's website at www.westernfinancialgroup.ca.
Western Financial Group is a leader in providing insurance, financial services and banking services in over 80 communities, to more than 400,000 individuals and businesses in Western Canada through its WFG Agency Network locations, its affiliated insurance brokers, Western Life Assurance Company and Bank West.
The Company’s Financial Report for the first quarter of 2008 will be filed on SEDAR on or beforeMay 8, 2008.
Forward-looking statements involve numerous assumptions, risks and uncertainties, including the risk that prediction and other forward-looking statements may not prove to be accurate. We caution the reader not to place undue reliance on these disclosures, as a number of important factors could cause actual results to differ materially from the estimates and comments expressed in them. Such factors may include, but are not limited to: changing financial and economic conditions in Canada, particularly in Western Canada; regulatory developments; competition industry trends and availability of capital resources; and our anticipated success in managing our risks. We caution readers that the foregoing list is not exhaustive. Except required by law, we do not undertake to update any forward-looking statements, written or oral, that we may make from time to time regarding our operations and performance.
For further information, please contact:
Arlene Beggs, Assistant to the President
Western Financial Group
403-652-2663
