SOURCE: Ziegler


March 29, 2011 16:00 ET

Ziegler Announces Revised Full Year and Fourth Quarter 2010 Financial Results

CHICAGO, IL--(Marketwire - March 29, 2011) - The Ziegler Companies, Inc. (PINKSHEETS: ZGCO), ("Ziegler") a diversified financial services holding company, today announced a revision to its previously reported full year 2010 and fourth quarter earnings. 

"Since assuming the role of Ziegler's chief executive a little over a year ago, I have actively pursued growing our firm with focused and transparent execution. The revisions we are announcing today are consistent with this mission and provide for a more conservative view of our financial statements," offered Thomas R. Paprocki, Chief Executive Officer of Ziegler.

The revisions are twofold and all are non-cash: (1) Ziegler revalued and revised the accounting for certain proprietary investments, and (2) Ziegler adjusted the accounting, reporting, and valuation for certain intangible assets. With regards to the accounting for proprietary investments revision, Ziegler determined it should record its valuation adjustments for its proprietary investments directly against revenues changing its previous approach of recording the valuation adjustments directly against equity. With regards to the matters involving the intangible assets revision, Ziegler determined it should increase the gain on sale associated with its asset management business and record the decrease in the valuation of the intangible assets as an impairment expense.

As a result of the revisions, for the full year ended December 31, 2010, total revenues were $77,554,000 compared to $78,306,000 as previously reported. Net income for the year was $925,000 or $.73 per basic and diluted share in 2010 compared to $1,735,000 or $1.37 per basic and diluted share as previously reported.

For the fourth quarter ended December 31, 2010, total revenues were $20,339,000 compared to $22,460,000 as previously reported. The net loss for the fourth quarter of 2010 was $134,000 or $.11 per basic and diluted share compared to a net income of $386,000 or $.31 per basic and diluted share as previously reported.

Year over year, book value increased by $1.15 per share to $22.29 as of December 31, 2010, as a result of operating earnings offset by valuation adjustments to proprietary investment positions that were recorded against other comprehensive income in owners' equity. The change was in accordance with generally accepted accounting principles. Tangible book value per share as of December 31, 2010, reached $21.84, which was up 15% from $18.95 per share on December 31, 2009.

For access to Ziegler's press releases and its 2010 financial statements, which are expected to be released March 30, 2011, please visit

About Ziegler:
The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its affiliates (Ziegler), is a specialty investment bank with unique expertise in complex credit structures and advisory services. Headquartered in Chicago with regional and branch offices throughout the U.S., Ziegler creates tailored financial solutions for our clientele. Ziegler is ranked nationally as one of the leading investment banking firms in our specialty sectors of healthcare, senior living, religion, and education finance as well as corporate finance and FHA/HUD. Ziegler serves institutional and individual investors through our capital markets and full-service wealth management professionals.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.

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