SOURCE: Financial Industries Corporation

November 09, 2007 17:41 ET

Financial Industries Corporation Files Third Quarter Earnings Report

AUSTIN, TX--(Marketwire - November 9, 2007) - Financial Industries Corporation (PINKSHEETS: FNIN) today announced that it has filed its report on Form 10-Q for the quarter ended Sept. 30, 2007.

For the three months ended Sept. 30, 2007, FIC's net income was $1,587,000, or $0.15 per share, on revenues of $19.8 million. This compares to net income of $1,295,000, or $0.13 per share, on revenues of $18.1 million for the same period of 2006.

The results for the three months ended Sept. 30, 2007, were positively affected by the non-recurring recognition of $1.3 million of deferred revenue related to a coinsurance agreement. The company also realized a decrease in operating expenses of $1.4 million from the prior year third quarter. The additional revenue and reduced operating expenses partially offset higher policyholder benefits and expenses of $3.4 million over the same period of 2006, largely due to an increase in death benefits.

For the nine months ended Sept. 30, 2007, FIC's net income was $2,206,000, or $0.22 per share, on revenues of $58.8 million. This compares to net income of $1,250,000, or $0.13 per share, on revenues of $53.8 million for the same period of 2006.

"I am very pleased with FIC's performance during the third quarter and for the first nine months of 2007," said William B. Prouty, chief executive officer. "Throughout this year, we have continued to gain traction with our final-expense product as we shift our strategic focus to the senior market."

"On a year-over-year basis, our sales for the nine months have nearly doubled based on issued policies and first-year premiums," Prouty added. "Our strong financial results reflect our continued efforts to reduce expenses and run our business more efficiently. Despite higher claim costs in the quarter, our net income rose 23 percent over the same period a year earlier. On a year-to-date basis, 2007 net income for nine months is 76 percent higher than for the first nine months of 2006."

FIC, through its Investors Life subsidiary, markets and underwrites individual life insurance products. For more information on FIC, go to http://www.ficgroup.com on the Internet.

Statements in this document relating to future developments, disclosures and other statements that are not historical facts are forward-looking statements. Actual results may differ materially from these forward-looking statements as a result of market conditions, the timing and results of FIC's audits, reviews and filings with regulatory bodies, the interest of and actions by third parties engaging in transactions with FIC and other factors contained in FIC's Form 10-K for the year ended Dec. 31, 2006, and other filings with the SEC.

Contact Information

  • Contact Information:
    Financial Industries Corporation
    Shannon Coffin
    Phone: 512-404-5550
    E-mail: ir@ficgroup.com