My Condo is for sale. Wanna buy it?
For more Mosaic Monday visit Mary at The Little Red House.
For more Blue Monday visit Smiling Sally.
We put our Condo on the market last week and we will be moving back to the State of Washington the end of February. I am looking forward to having only one home to care for…
Enter the Windermere Real Estate Coachella Valley monthly drawing for your chance to win one of their giveaways. Monthly prizes include hot air balloon rides for two, movie tickets, restaurant gift certificates (to restaurants like Billy Reed’s) and more. This month’s giveaway is a gift certificate to the Rancho Mirage Pink Elephant Car Wash. The real estate agents below all specialize in 55-plus desert homes and communities. Visit any of their sites, click on “Contact” and email your name and contact info to be entered into the monthly drawing. No purchase necessary.
Mary Pat Anderson (Heritage Palms, Indio) www.marypatanderson.com
Craig Coleman and Drew Johnson (Four Seasons, Palm Springs) www.craiganddrew.com
Michelle Cope (Trilogy, La Quinta) www.michellecope.com
Wendy Formica (Sun City, Palm Desert) www.wendyformica.com
Elaine Leib (Sun City, Palm Desert) www.elaineleib.com
Ray Martin (Sun City Shadow Hills, Indio) www.raymartinrealestate.net
Linda Novick (Sun City, Palm Desert) www.lindanovick.com
Sonta Sibley (Trilogy, La Quinta) www.sonta.windermeresocal.com
Bonnie and Hank Steele (Sun City Shadow Hills, Indio) www.bonnieandhanksteele.com
RIVERWOODS, Ill., Feb. 5 /PRNewswire/ — In his latest budget, President Obama has unveiled tax proposals for 2011 that generally follow the pattern laid down last year, but with changes in scope and details that reflect a heightened concern with job creation and the rising deficit. CCH has issued a Special Tax Briefing on the measures that would affect millions of individual and business taxpayers. To read the Briefing, click here.
“It’s unlikely that the president’s tax agenda will be passed as a single piece of legislation,” said CCH Principal Federal Tax Analyst Mark Luscombe, JD, LLM, CPA. “Proposals for a job-creation credit may come up for action soon, while others, such as what to do about a host of provisions due to expire for 2011 and some that have already expired, may take much longer.”
A Mixed Bag for Individuals
As he proposed last year, President Obama wants to make permanent the 10-, 15-, 25- and 28-percent tax brackets, which are due to expire after 2010. Last year’s expansion of the earned income tax credit and the child tax credit would also be made permanent, and the child tax credit amount would be set at $1,000 for 2011, rather than reverting to $500.
The president has backed off his earlier proposal to make the Making Work Pay Credit permanent, however. The credit, which lowers most wage earners’ taxes by as much as $400 ($800 for joint filers), is scheduled to expire after this year, and the president proposes extending it only for 2011. He would, however, bring back the “one time” $250 payment for Social Security beneficiaries, disabled individuals and veterans, recipients of Railroad Retirement Board (RRB) benefits, and Supplemental Security Income beneficiaries for one more time in 2010. Certain other retirees not otherwise covered would, as before, receive a “one time” $250 refundable credit in 2010.
“The long-range cost of the Making Work Pay Credit is significant, and its permanent inclusion in the tax code has fallen victim to deficit worries,” Luscombe said.
Credits
The president is not retreating on last year’s proposal to make the “saver’s credit,” designed to encourage contributions to a qualified retirement plan or IRA, fully refundable and change the credit to a 50-percent match on contributions up to $500 ($1,000 for joint filers). The amount of savings that would be matched would phase out at a rate of 5 percent of adjusted gross income (AGI) in excess of $32,500 for individuals and $65,000 for married couples filing jointly. The $500 amount and the AGI amounts would be indexed annually for inflation for tax years beginning with the 2012 tax year.
“The credit has always been targeted at wage earners with modest incomes, but in the past, many didn’t realize a tangible benefit because they owed little or no tax in the first place, and the credit was non-refundable,” Luscombe observed.
The president is also proposing that small businesses that employ 10 or more people and that don’t offer a retirement plan be required to enroll their employees in an IRA to be funded by a payroll deduction, although the employees could opt out.
Expanded Child and Dependent Care Credit, Extended Education Credit
This year, President Obama proposes an expansion of the child and dependent care credit, effective for 2011. The credit can be as much as 35 percent of eligible expenses, gradually decreasing to 20 percent, depending on income. The president proposes increasing the AGI level at which the 35-percent credit begins to phase down dramatically, from $15,000 to $85,000. The 20-percent credit, therefore, would be applied to taxpayers with AGI in excess of $113,000 (rather than above the $43,000 level now in place). The permanently enhanced credit would be available for tax years beginning after December 31, 2010.
This means that taxpayers with incomes up to $85,000 would be entitled to a maximum $1,050 credit ($2,100 for more than one qualifying individual). Those with more than $113,000 AGI could receive a maximum $600 credit with one qualifying individual, $1,200 with two or more would apply.
Once again, the president proposes to make the American Opportunity Tax Credit permanent. It provides a maximum credit of $2,500 per student for qualified tuition and related expenses – including books – and 40 percent of the credit is refundable. It’s available for students who are enrolled at least half-time in college and phases out ratably for individuals with modified AGI between $80,000 and $90,000 and for married couples filing jointly with modified AGI between $160,000 and $180,000, with the expense amounts and phase-out limits indexed for inflation after 2010.
Limited Help for the Unemployed
Individuals who lose their jobs would benefit from a proposed extension of the 65-percent COBRA subsidy program, scheduled to end on February 28, 2010, through the end of this year. Those who lose their jobs after February 28 would be eligible for 12 months of the subsidy.
Not proposed by the president is any extension of last year’s exclusion of up to $2,400 in unemployment benefits from income.
“The administration is shifting the balance more toward job creation this year,” Luscombe said.
Little Good News for High Incomes
For high-income taxpayers, the president once again proposes reinstating the top rates of 36 and 39.6 percent. The 36-percent and 39.6-percent rates would apply to single individuals with incomes over $200,000 and married couples filing joint returns with incomes over $250,000. The $200,000 amount would be reduced for the standard deduction and one personal exemption and indexed for inflation for 2011. The $250,000 amount would be reduced for the standard deduction and two personal exemptions and indexed for inflation for 2011. The 39.6-percent rate would start at the inflation-adjusted level now in place for the 35-percent rate, which for 2010 is $373,650.
This year also sees a repeat of the proposal to reintroduce the limitation on itemized deductions, known as the “Pease” limitation, and the personal exemption phaseout, known as PEP, for those above the $200,000/$250,000 income levels. In addition, whenever itemized deductions would reduce taxable income in the revived 36- and 39.6-percent brackets, the tax value of those deductions would be limited to 28 percent. The proposal would apply to itemized deductions after they have been reduced by the reinstated Pease limitation.
Those in the revived 36- and 39.6-percent brackets would also see an increase in their capital gains rates, from the current 15 percent back up to 20 percent after 2010. However, rather than taxing qualified dividends as ordinary income beginning in 2011, as under current law, Obama would retain their treatment as capital gains.
“Upper-income taxpayers would actually fare somewhat better under Obama’s proposals than they would under current law, which would repeal almost all the Bush-era tax cuts as of 2011,” Luscombe said. ”Retaining the 10-percent and 25-percent brackets benefits them as well as other taxpayers, as does retaining of the treatment of dividends as capital gains. However, they would not fare as well as they have in the past.”
Continuing AMT “Patch,” Extension of Expired Provisions
The 2011 fiscal year budget assumes that Congress will continue to “patch” the alternative minimum tax (AMT) as it did for 2009 and then index it for inflation – or continue one-year “patches” in the future.
Although the president did not identify specific individual “extenders” for 2010, it is likely that Congress will extend a number of provisions sometime in 2010 and make them retroactive to January 1, 2010. These include:
“At present, there doesn’t seem to be any movement to bring back the sales tax deduction for new cars or to extend the First-time Homebuyer’s Credit beyond its expiration on June 30, 2010 for homes under contract by April 30,” Luscombe noted.
Reinstate Estate Tax
While the federal estate tax has officially expired for 2010 and is officially set to return in 2011 at pre-2001 levels, the president’s FY 2011 baseline budget assumes a retroactive reinstatement of the estate tax to January 1, 2010, at 2009 levels.
That’s the thrust of the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Bill of 2009 (H.R. 4154) to permanently extend the estate tax at 2009 exemption rates, passed by the House last year. The bill would impose a 45-percent tax on estates above $3.5 million per individual and $7 million for married couples. The bill is now in the Senate where, at press time, no action has yet been taken.
As in last year’s budget, the administration is also proposing changes to rules regarding valuation, basis and grantor retained annuity trusts to correct what are seen as abusive practices.
Business Tax Breaks
A major initiative for businesses in the budget is $33 billion in small business jobs and wages tax credits. The measure would provide a $5,000 tax credit for every net new employee hired by a qualified small business in 2010, capped at $500,000 for any one firm. The proposal would also reimburse small businesses that increase wages or hours for existing employees for the Social Security payroll taxes they pay on real increases in their payrolls, up to the current Social Security maximum wage base of $106,800.
Another new item is a proposal to remove cell phones from their current classification as “listed property.” This would lift the strict substantiation requirements for business use and make depreciation of cell phones easier. In addition, an employee could exclude the fair market value of personal use of a cell phone provided predominantly for business purposes from gross income.
“The current rules date back to when a cell phone was an expensive novelty,” Luscombe said.
As in the 2010 budget, the administration again proposes to raise the exclusion currently available on gain realized on qualified small business stock from 75 percent to 100 percent. The exclusion is intended to help small businesses raise capital. The administration would eliminate as an AMT preference item the excluded portion of the gain, as well.
“This would be an attractive investment for someone who otherwise might be facing a 20-percent capital gains tax in the future,” Luscombe noted.
The administration also proposes extending the Section 179 expensing and bonus depreciation provisions for 2009 through 2010.
Other extenders specifically included in the 2011 budget include:
“Additional business-related extenders, such as brownfields remediation, may be added by Congress,” Luscombe said.
Business, International, Fossil Fuel Tax Raisers
The president’s 2011 budget also includes his “financial crisis responsibility fee,” a tax on the liabilities of financial institutions with at least $50 billion in consolidated assets. The rate of the fee applied to covered liabilities would be approximately 15 basis points. The fee would be effective as of July 1, 2010.
“This is one of the more controversial elements in the budget,” Luscombe noted.
The budget reiterates a number of revenue raisers from last year, including a repeal of the LIFO inventory method, taxation of carried interest as ordinary income and a package of international taxation “reforms.” The president also proposes to revive Superfund taxes for 10 years commencing with tax years beginning after December 31, 2010.
The 2011 budget proposes to repeal a number of energy tax incentives relating to fossil fuel, effective for tax years beginning after December 31, 2010.
“These provisions follow through on commitments the president made at the G-20 conference in Pittsburgh in 2009,” Luscombe observed.
Finally, the budget proposes a number of “loophole closers” and tighter information reporting to the IRS, but cuts taxpayers one break: they would no longer have to include a non-refundable deposit with their submission of an offer in compromise to settle tax debts.
“Many taxpayers who are in hock to the IRS can’t afford an initial payment, and many are reluctant to make one when the acceptance of their offer is in doubt,” Luscombe said.
CCH Tax Briefings
To read the Briefing, click here. Other timely, current analysis of tax legislation and other federal tax developments can be found at CCH Tax Legislation Coverage.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. CCH is based in Riverwoods, Ill. Wolters Kluwer is a leading global information services and publishing company. Visit www.wolterskluwer.com for information about our market positions, customers, brands, and organization.
SOURCE CCH, a Wolters Kluwer business
RELATED LINKS
http://www.wolterskluwer.com
NEWPORT BEACH, Calif. Feb. 5 /PRNewswire-FirstCall/ — Nationwide Health Properties, Inc. (NYSE: NHP) today announced the acquisition of two medical office buildings under an amendment to the original agreement with Pacific Medical Buildings LLC, a California limited liability company (“Pac Med”), and certain of its affiliates.
Effective as of February 1, 2010, NHP acquired the Pomerado Outpatient Pavilion in Poway, California (the “Pomerado Property”) for an aggregate purchase price of $74.0 million consisting of cash and the issuance of 301,599 units of limited partnership interest in NHP/PMB L.P., a limited partnership, for which a subsidiary of NHP acts as general partner (“NHP/PMB”). The $47.5 million mortgage loan previously made by NHP to the former owners of the Pomerado Property was satisfied at the closing.
Effective as of February 1, 2010, NHP entered into a limited liability company agreement and a contribution agreement with PMB Gilbert LLC. Under these agreements, NHP and PMB Gilbert LLC formed a limited liability company (the “Gilbert JV”) to acquire the Mercy Gilbert Medical Plaza in Gilbert, Arizona (the “Gilbert Property”). PMB Gilbert LLC contributed the Gilbert Property to the Gilbert JV, and NHP contributed $6.3 million in cash. In addition, NHP agreed to loan the Gilbert JV up to $8.8 million as project financing, including $6.8 million that was disbursed initially. NHP owns a 71.2% interest in the Gilbert JV. Pursuant to a contribution agreement dated as of February 1, 2010, among NHP, NHP/PMB, Pac Med and PMB Gilbert LLC, NHP/PMB may in the future acquire the Gilbert JV if certain conditions are met.
Effective as of February 1, 2010, NHP and NHP/PMB amended and restated their Pipeline Property Agreement, dated April 1, 2008, with PMB LLC and PMB Real Estate Services LLC. Under this agreement, NHP/PMB has the option to acquire future medical office buildings developed through a joint venture between NHP and PMB LLC. The changes to the agreement obligate NHP to either provide or arrange financing for approved developments and provide NHP with improved terms, including preferred returns, a reduction in PMB LLC’s promote interest and acquisition pricing determined at the time of acquisition rather than at the pre-development stage.
NHP anticipates acquiring the remaining two medical office buildings, the remaining 55% interest in two medical office buildings in which it currently has a minority ownership interest and a majority ownership interest in a joint venture that will own a medical office building by the end of the first quarter of 2010.
ABOUT NATIONWIDE HEALTH PROPERTIES, INC.
Nationwide Health Properties, Inc. is a real estate investment trust (REIT) that invests primarily in healthcare real estate in the United States. As of September 30, 2009, the Company’s portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 579 properties among the following segments: 279 senior housing facilities, 200 skilled nursing facilities, 82 medical office buildings, 11 continuing care retirement communities and 7 specialty hospitals. For more information on Nationwide Health Properties, Inc., visit our website at http://www.nhp-reit.com.
FORWARD LOOKING STATEMENTS
Certain information contained in this release includes forward-looking statements. Forward- looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. Risks and uncertainties associated with our business include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; non-payment or late payment of rent, interest or loan principal amounts by our tenants; our reliance on two tenants for a significant percentage of our revenue; occupancy levels at certain facilities; our level of indebtedness; changes in the ratings of our debt securities; maintaining compliance with our debt covenants; access to the capital markets and the cost and availability of capital; the effect of proposed healthcare reform legislation or government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; increasing competition in our business sector; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; risks associated with acquisitions, including our ability to identify and complete favorable transactions, delays or failures in obtaining third party consents or approvals, the failure to achieve perceived benefits, unexpected costs or liabilities and potential litigation; the ability of our tenants to pay contractual rent and/or interest escalations in future periods; the ability of our tenants to obtain and maintain adequate liability and other insurance; our ability to attract new tenants for certain facilities; our ability to sell certain facilities for their book value; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our senior notes; changes in or inadvertent violations of tax laws and regulations and other factors that can affect our status as a real estate investment trust; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission, especially the “Risk Factors” sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward- looking information is provided by us pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. We disclaim any intent or obligation to update these forward-looking statements.
CONTACT: Abdo H. Khoury
Chief Financial and Portfolio Officer
Nationwide Health Properties, Inc.
(949) 718-4400
SOURCE Nationwide Health Properties, Inc.
RELATED LINKS
http://www.nhp-reit.com
WESTPORT, Conn., Feb. 3 /PRNewswire/ — HMG Strategy, LLC is planning a series of compelling CIO leadership events for 2010, which are aimed at bringing together world-class IT leaders with C-level executives to discuss business transformation and the evolution of the CIO from technology chief to transformational business leader.
Smart business leaders understand that change is key to survival. The transformational CIO can bring to the board room key insights, leadership and the technology tools to make transformation possible and position IT as a key valued partner.
HMG Strategy’s latest CIO Executive Leadership Roundtable held on Dec. 4 in Chicago drew a near-perfect 4.9 rating on a scale of 1 to 5 from 160-plus attendees. 100% of attendees from the Chicago roundtable said they would attend another HMG Strategy organized event.
HMG Strategy’s next event, The CIO Summit of America, will be held on Feb. 8 in New York City. Attendees will have an opportunity to gain unique insights and network with their peers to explore strategies for creating new revenue streams, improving profits and driving business innovation through transformational leadership.
HMG Strategy’s events are sponsored by a collection of blue-chip companies including IBM, Lexmark, ATT, Dell, Salesforce, CA, Polycom, Compuware, Red Hat, SAS, McAfee and Verizon Business. Strategic partners include Egon Zehnder International, Heidrick & Struggles; Korn/Ferry International; Russell Reynolds Associates and Spencer Stuart.
Other upcoming events designed for world-class IT leaders and CXOs being produced by HMG Strategy include:
San Francisco – CIO Executive Leadership Roundtable – Feb. 16, 2010
Houston – CIO Executive Leadership Roundtable – March 3, 2010
Boston – CIO Executive Leadership Roundtable – March 18, 2010
Chicago – CIO Executive Leadership Summit – May 20, 2010
Atlanta – CIO Executive Leadership Roundtable – June 3, 2010
Toronto – CIO Executive Leadership Roundtable – June 15, 2010
New York – CIO Executive Leadership Roundtable – July 13, 2010
Boston – CIO Executive Leadership Roundtable – Sept. 9, 2010
Dallas – CIO Executive Leadership Summit – Sept. 13, 2010
Memphis – CIO Executive Leadership – Sept. 23, 2010
Fairfield/Westchester – CIO Executive Leadership Summit – Oct. 26, 2010
Los Angeles – CIO Executive Leadership Roundtable – Nov. 10, 2010
Chicago – CIO Executive Leadership Roundtable – Dec. 3, 2010
HMG Strategy, Westport, CT, provides innovative leadership, management and technology thought leadership to CIO/Senior IT executives. Through our CIO Leadership Series, we provide CIOs/Senior IT leaders the opportunity to share knowledge, best practices and access world-class thought leadership from peers and industry leaders. Our thought leadership network interconnects you with the leading business and technology professionals that guide CIO/Senior IT executives with their strategic, operational and career management needs. For more information about the CIO Leadership Series and HMG Strategy go to www.hmgstrategy.com.
General Inquiries: Please contact Melissa Marr at 203-460-1924 or via e-mail at melissam@hmgstrategy.com
Sponsorship Opportunities: Please contact Hunter Muller at 203-221-2702 or via e-mail at hunterm@hmgstrategy.com
SOURCE HMG Strategy, LLC
RELATED LINKS
http://www.hmgstrategy.com
BELOIT, Wis., Feb. 3 /PRNewswire-FirstCall/ — Regal Beloit Corporation (NYSE: RBC) today reported financial results for the fourth quarter ended January 2, 2010. Net sales of $463.3 million decreased 4.1% as compared to the $483.0 million reported for the fourth quarter of 2008. Diluted earnings per share were $0.90 as compared to $0.63 for the fourth quarter of 2008. For the full year of 2009, sales were $1.826 billion as compared to $2.246 billion in 2008. Full year diluted earnings per share were $2.63 per share as compared to $3.78 per share for 2008.
“We are pleased to report solid fourth quarter and full year results, despite the difficult global economy,” commented Henry Knueppel, Chairman and Chief Executive Officer. ”We are particularly pleased with our strong cash performance, our growth in energy efficient products and our plant rationalization and productivity results.”
Sales for the three months ended January 2, 2010, were $463.3 million, a 4.1% decrease from the $483.0 million reported for the three months ended December 27, 2008. Fourth quarter sales of high efficiency products were 16.5% of total sales as compared to 12.0% for the fourth quarter 2008. Full year sales of high efficiency products were 17.2% as compared to 12.8% for 2008.
In the Electrical segment, sales decreased 2.4% from the prior year fourth quarter, largely due to global generator sales decreasing 34.0%, commercial and industrial motors sales in North America decreasing 14.9%, and residential HVAC motor sales increasing 13.2%. Sales in the Mechanical segment decreased 17.1% from the prior year fourth quarter.
From a geographic perspective, Asia Pacific sales increased 0.7% as compared to the fourth quarter of 2008. In total, sales to regions outside of the United States were 28.6% of total sales for the quarter ended January 2, 2010 in comparison to 28.9% for the comparable period of 2008. The positive impact of foreign currency exchange rates increased total sales by 1.4%.
The gross profit margin for the three months ended January 2, 2010, was 27.0% as compared to the 23.7% reported for the comparable period of 2008. The gross profit margin for the Electrical segment was 27.6% for the three months ended January 2, 2010, versus 22.6% in the comparable period of 2008. This increase is driven by cost reduction efforts, including the benefit from the recent plant consolidations, the mix benefit from high efficiency products and lower net material costs including the benefits from hedging and the impact of LIFO. The benefit from favorable raw material costs are temporary in nature and are not expected to repeat to the same degree in future quarters. The Mechanical segment gross profit was 21.8% in the three months ended January 2, 2010, versus 32.3% in the comparable period of 2008. The Mechanical segment decrease was primarily driven by the negative fixed cost absorption impact of lower production volumes.
Operating expenses were $71.6 million (15.5% of sales) in the three months ended January 2, 2010, versus $75.0 million (15.5% of sales) in the comparable period of 2008. Operating expenses for the quarter included an incremental amount of $5.2 million resulting from the reduction of the carrying value of certain assets, offset by reductions in variable expenses, such as sales commissions, and the impact of cost reduction activities.
Income from operations was $53.5 million for the three months ended January 2, 2010, versus $39.6 million in the comparable period of 2008. As a percent of sales, income from operations was 11.6% for the three months ended January 2, 2010, versus 8.2% in the comparable period of 2008. As a percent of sales, Electrical segment operating profit was 12.4% in the fourth quarter of 2009 versus 6.9% in the comparable period of 2008. Mechanical segment operating profit was 3.6% of sales in the fourth quarter of 2009 versus 18.2% in the comparable period of 2008.
Net interest expense was $4.5 million for the three months ended January 2, 2010, versus $7.4 million in the comparable period of 2008. The decrease is driven primarily by lower effective interest rates in 2009 versus the comparable period of 2008, lower average debt outstanding and higher cash balances.
The effective tax rate for the three months ended January 2, 2010, was 27.7% versus 33.9% in the prior year period. The decrease in the effective rate is driven primarily by the global distribution of income and the resolution of certain tax matters.
Net income attributable to Regal Beloit Corporation for the three months ended January 2, 2010, was $34.7 million, an increase of 68.4% versus the $20.6 million reported in the comparable period of 2008. Fully diluted earnings per share were $0.90 as compared to $0.63 per share reported in the fourth quarter of 2008. (Note: prior year financial results have been restated to reflect the impact of the change in accounting for the Company’s convertible senior subordinated notes as required by recent accounting guidance.) The average number of diluted shares was 38,410,038 during the three months ended January 2, 2010 as compared to 32,623,311 during the comparable period of 2008.
For the full year ended January 2, 2010, net sales decreased 18.7% to $1.826 billion. Full year 2009 sales included $57.8 million of incremental sales from businesses acquired in 2008 and 2009. The gross profit margin increased 90 basis points primarily driven by cost reductions, including the consolidation of three of the Company’s manufacturing facilities, the mix benefit of high efficiency products and lower raw material costs. These benefits were partially offset by the absorption impact of lower production volumes. Income from operations was $159.5 million or 8.7% of sales as compared with $230.4 million or 10.3% of sales reported for fiscal year 2008. Net income attributable to Regal Beloit Corporation for fiscal year 2009 was $95.0 million or 5.2% of sales as compared with $125.5 million or 5.6% of sales for fiscal year 2008. Diluted earnings per share were $2.63 as compared to $3.78 per share reported for the prior year. Due to the weighting of both our earnings and the weighted average number of shares outstanding as impacted by our stock offering completed in the second quarter, the sum of the four quarters’ earnings per share does not equal the year to date earnings per share.
Cash flow from operations was $79.4 million for the three months ended January 2, 2010, comprised of net income of $35.5 million, non-cash expenses of $24.1 million and a reduction of net assets of $19.8 million. Full year cash flow from operations was $314.9 million.
The Company ended the year with total debt of $476.5 million as compared to $530.6 million at the end of the third quarter of 2009 and $575.4 million at the end of 2008. Cash, cash equivalents and short term investments ended the year at $380.0 million versus $365.0 million at the end of the third quarter of 2009 and $65.3 million at the end of 2008.
“We expect to see improving markets for our products in the first quarter of 2010 versus the first quarter of 2009, primarily as a result of somewhat stronger international markets and the absence of the inventory destocking we experienced in 2009,” continued Mr. Knueppel. ”However, raw material costs have increased, which will substantially offset the benefits of volume gains. Thus our productivity efforts will drive income performance in the first quarter. We are expecting first quarter earnings to be in the range of $.76 to $.84.”
Regal Beloit will be holding a conference call pertaining to this news release at 11:00 AM CT (12:00 PM ET) on Thursday February 4, 2010. To listen to the call via the internet, please go to http://www.regalbeloit.com/ or at http://event.meetingstream.com/r.htm?e=191340&s=1&k=0518566ACC16F62CF5E9482075EE0488.
Individuals who would like to participate by phone should dial 866-394-7807, referencing Regal Beloit conference ID 54094708. International callers should dial 763-488-9117 using the same conference ID. A telephone replay of the call will be available through March 4, 2010, at 800-642-1687, conference ID 54094708. International callers should call 706-645-9291 using the same conference ID. A webcast replay will be available for 90 days and can be accessed at http://www.regalbeloit.com/rbceventspresentations.htm or at http://event.meetingstream.com/r.htm?e=191340&s=1&k=0518566ACC16F62CF5E9482075EE0488.
Regal Beloit Corporation is a leading manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia. Regal Beloit’s common stock is a component of the S&P Mid Cap 400 Index and the Russell 2000 Index.
CAUTIONARY STATEMENT
This Press Release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management’s judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as “may,” “will,” ”plan,” “expect,” “anticipate,” “estimate,” “believe,” or “continue” or the negative of these terms or other similar words. Actual results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including:
All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements. The forward-looking statements included in this press release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances. See also Item 1A – Risk Factors in the Company’s Annual Report on Form 10-K filed on February 25, 2009.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Unaudited
In Thousands of Dollars, Except Shares Outstanding, Dividends Declared and
Per Share Data
Three Months Ended Fiscal Year Ended
--------------------- --------------------
(As (As
Adjusted)* Adjusted)*
------- ---------- ------- ----------
January December January December
2, 2010 27, 2008 2, 2010 27, 2008
------- -------- ------- --------
Net Sales $463,261 $482,983 $1,826,277 $2,246,249
Cost of Sales 338,097 368,376 1,402,053 1,745,569
------- ------- --------- ---------
Gross Profit 125,164 114,607 424,224 500,680
Operating Expenses 71,622 75,016 264,704 270,249
------ ------ ------- -------
Income From Operations 53,542 39,591 159,520 230,431
Interest Expense 5,304 7,536 23,284 32,647
Interest Income 851 146 1,719 1,479
--- --- ----- -----
Income Before Taxes &
Noncontrolling Interests 49,089 32,201 137,955 199,263
Provision For Income Taxes 13,579 10,915 39,276 70,349
------ ------ ------ ------
Net Income 35,510 21,286 98,679 128,914
Less: Net Income
Attributable to
Noncontrolling Interests,
net of tax 852 640 3,631 3,389
--- --- ----- -----
Net Income Attributable
to Regal Beloit
Corporation $34,658 $20,646 $95,048 $125,525
======= ======= ======= ========
Earnings Per Share of
Common Stock:
Basic $0.94 $0.66 $2.76 $4.00
===== ===== ===== =====
Assuming Dilution $0.90 $0.63 $2.63 $3.78
===== ===== ===== =====
Cash Dividends Declared $0.16 $0.16 $0.64 $0.63
===== ===== ===== =====
Weighted Average Number of
Shares Outstanding:
Basic 37,030,588 31,393,295 34,498,674 31,343,330
========== ========== ========== ==========
Assuming Dilution 38,410,038 32,623,311 36,131,607 33,250,689
========== ========== ========== ==========
* The Company adopted new accounting guidance related to Convertible debt
which requires an adjustment to previously disclosed condensed
consolidated financial statements. The adjustment affected convertible
debt, equity and interest expense.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
In Thousands of Dollars
(As Adjusted
From Audited
(Unaudited) Statements)*
January 2, December 27,
ASSETS 2010 2008
---------- ------------
Current Assets:
Cash and Cash Equivalents $262,422 $65,250
Short-Term Investments 117,553 -
Trade Receivables and Other Current Assets 330,562 436,094
Inventories 268,839 359,918
------- -------
Total Current Assets 979,376 861,262
Net Property, Plant and Equipment 343,071 358,372
Other Noncurrent Assets 789,790 803,862
------- -------
Total Assets $2,112,237 $2,023,496
========== ==========
LIABILITIES AND EQUITY
Accounts Payable $161,902 $202,456
Other Current Liabilities 147,164 228,546
Long-Term Debt 468,065 560,127
Deferred Income Taxes 72,418 72,119
Other Noncurrent Liabilities 82,620 122,607
------ -------
Total Liabilities $932,169 $1,185,855
Equity 1,180,068 837,641
--------- -------
Total Liabilities and Equity $2,112,237 $2,023,496
========== ==========
* The Company adopted new accounting guidance related to Convertible debt
which requires an adjustment to previously disclosed condensed
consolidated financial statements. The adjustment affected convertible
debt, equity and interest expense.
SEGMENT INFORMATION
Unaudited
In Thousands of Dollars
Mechanical Segment Electrical Segment
------------------- -------------------
Three Months Ending Three Months Ending
-------------------- -------------------
Jan. 2, Dec. 27, Jan. 2, Dec. 27,
2010 2008 2010 2008
------- -------- ------- --------
Net Sales $46,205 $55,718 $417,056 $427,265
Income from Operations 1,682 10,115 51,860 29,476
Fiscal Year Ended Fiscal Year Ended
-------------------- -------------------
Jan. 2, Dec. 27, Jan. 2, Dec. 27,
2010 2008 2010 2008
------- -------- ------- --------
Net Sales $188,609 $247,607 $1,637,668 $1,998,642
Income from Operations 14,495 38,899 145,025 191,532
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Unaudited
In Thousands of Dollars
Fiscal Year Ended
------------------------
(As
Adjusted)*
January 2, December 28,
2010 2008
---------- ------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $98,679 $125,525
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 69,144 61,601
Excess tax benefits from stock-based
compensation (2,808) (2,463)
Loss on property, net 5,172 124
Stock-based compensation expense 4,752 4,580
Non-cash convertible debt deferred financing
costs 1,063 4,938
Change in assets and liabilities, net of
acquisitions 138,917 (40,106)
------- -------
Net cash provided by operating activities 314,919 154,199
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (33,604) (52,209)
Purchases of investment securities, net (117,553) -
Business acquisitions, net of cash acquired (1,500) (49,702)
Sale of property, plant and equipment 1,033 2,238
----- -----
Net cash used in investing activities (151,624) (99,673)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of short-term borrowings (6,866) (11,820)
Payments of long-term debt (215) (324)
Net repayments under revolving credit facility (17,066) (162,700)
Net proceeds from long-term borrowings - 165,200
Repayments of convertible debt (75,802) -
Net proceeds from the sale of common stock 150,370 -
Dividends paid to shareholders (21,607) (19,426)
Distributions to noncontrolling interests (4,468) (3,044)
Purchases of treasury stock - (4,191)
Proceeds from the exercise of stock options 5,767 2,880
Excess tax benefits from stock-based compensation 2,808 2,463
Financing fees paid - (454)
--- ----
Net cash provided by (used in) financing
activities 32,921 (31,416)
EFFECT OF EXCHANGE RATES ON CASH 956 (434)
--- ----
Net increase in cash and cash equivalents 197,172 22,676
Cash and cash equivalents at beginning of period 65,250 42,574
------ ------
Cash and cash equivalents at end of period $262,422 $65,250
======== =======
* The Company adopted new accounting guidance related to Convertible debt
which requires an adjustment to previously disclosed condensed
consolidated financial statements. The adjustment affected convertible
debt, equity and interest expense.
SOURCE Regal Beloit Corporation
RELATED LINKS
http://www.regal-beloit.com
An important clarification for any homeowners facing the unfortunate possibility of a short sale or foreclosure: The Mortgage Forgiveness Debt Relief Act of 2007 was in fact extended through December 31st 2012 (before the 2008 elections, it had been due to expire December 31,2009). Without the bill, when lenders forgave any debt on a property, homeowners were normally taxed on the sum forgiven. This bill provides tax relief to sellers whose mortgage on their primary residence was entirely or partly forgiven by their lender(s), and is limited to loan balances of $2 million or less (or $1 million for a married person filing a separate return). Also, qualifying debt is defined as that used to buy, build, or substantially improve a principal residence, or that used to refinance any qualifying debt (but only up to the amount of the mortgage principal prior to refinancing). More details can be found at http://bit.ly/21xuw3 http://bit.ly/JGuun. Please consult with an accountant for specifics.
When looking at my Absorption Rate Report, you may be totally dazed and confused (or it could put you right to sleep). Let me attempt to present some method to my madness.
Breaking the total inventory down into price ranges makes it handy to for a buyer, seller, builder or developer to see a snapshot (at the moment of the report) of the activity happening in their price range of interest. Buyers will be more familiar with how to present their offer. Sellers can decide how realistic they need to be when pricing their property for sale. Developers and builders will see if their planned product is actually selling and at what rate, telling them if they should move forward with their plans or put them on hold.
Column by column definitions:
Active Listings: The number of listings on the market, INCLUDING pendings (under contract), actives with backups requested and Kickouts. If they are not closed, they are active.
Pendings: The number of active listings which are under contract, INCLUDING pendings (under contract), actives with backups requested and Kickouts.
Pending Ratio: The % of active listings that are under contract.
6 Month Expired: The number of listings that have expired in the past 6 months. This means they have been rejected by the market, usually due to being overpriced. Of these, some may be back on market.
6 Month Closings: The number of properties that have closed in the particular price range in the past 6 months.
Avg Sales Price: Average sales price of the closed properties that were listed and priced in a particular price range.
Absorption Rate: The number of months it would take for the present active inventory to sell based on the past 6 months’ sales, averaged monthly.
Diff: The difference (in months) of absorption between the present report and the previous report. A positive number is “bad” and a negative number is “good”. This number, just as the absorption number, may be more than meets the eye. It could be a negative # (good), but could be due to less inventory (like expireds at the end of the year) and NOT due to an increase in sales, which is still good, but deceiving.
List/Sale %: The average sales price to list price ratio. The sales price is usually less than the list price. This ratio does NOT take into account any price reductions, but the list price at the time of the sale.
Hopefully this will help explain my reports and make it less intimidating. As always, unless you buy and sell several properties a year, I recommend using an experienced professional when buying or selling real estate. Only then is one truly familiar with a particular market.
Go HERE to see my most recent reports.
Blessings
DUNN, N.C., Jan. 29 /PRNewswire-FirstCall/ –
New Century Bancorp (the “Company” Nasdaq: NCBC), the holding company for New Century Bank, today reported financial results for 2009. The write-off of goodwill resulted in a decrease in earnings for the Company from net income of $232,000 before the write-off to a net loss of ($8.4 million) afterwards. This compares to the net loss of ($193,000) for 2008, a year during which there were no write-offs of goodwill. Basic and diluted net income per share for 2009 prior to the goodwill write-off was $.03 compared to a net (loss) per share of ($1.24) after consideration of the write-off. This compares to the net (loss) per share of ($0.03) for 2008.
Goodwill Impairment
Goodwill, a measure of the difference between the price paid for an acquisition and the fair value of its assets, is being examined and subsequently charged-off in part or in whole by many financial institutions due to the effects of the prolonged economic downturn on financial stocks. At year-end 2009, New Century wrote-off $8.67 million in goodwill, an intangible asset, which resulted from the purchase of Progressive State Bank in 2006. The goodwill impairment charge, a one-time, non-cash, accounting transaction, does not affect the liquidity, tangible capital, or regulatory capital ratios of the Company.
Financial Results
Total assets for the Company at year-end 2009 were $630.6 million, total deposits were $540.3 million, and total loans were $481.2 million, compared to total assets of $605.8 million, total deposits of $505.1 million, and total loans of $460.6 million at year-end 2008, increases of 4.1%, 7.0%, and 4.5%, respectively.
“While the write-off of goodwill resulted in New Century Bancorp reporting a loss for the year,” said William L. Hedgepeth, president and CEO of New Century Bancorp and New Century Bank, “We are pleased with our core operating results in light of the fact that unlike many banks, we did not accept TARP funds; even though we, like all banks, faced a number of financial challenges. In addition, we are pleased with a number of positive indicators for the future. Those indicators include strong loan and deposit growth, increasing margins, and lower non-interest expenses.
Earnings for the year also were impacted by the addition of $5.5 million to the Company’s provision for loan losses, compared to $4.3 million in 2008; OREO losses of $565,000 compared to $239,000 in 2008; and, the payment of FDIC insurance premiums totaling $1.3 million, compared to only $525,000 in 2008.
“In order to recognize operating efficiencies, we consolidated our operations in Clinton, NC into one office. In preparing for the future, we recently invested in and expanded our ability to serve our customers through installing a new core processor and by developing a new website, with added capabilities. While the past few years have been difficult, we continue to meet the lending needs of our customers and communities, to expand and develop our staff, and to approach the future through a disciplined approach.
“The Company remains ‘well-capitalized,’ which is the highest regulatory standard. While there are challenges ahead—such as high unemployment levels, there is also a great deal of opportunity. As our market area and our nation begin to come out of the recession, we plan to be in the position to be part of it and to help lead the way for our customers.”
New Century Bank is headquartered in Dunn and has offices in Dunn, Clinton, Fayetteville (2), Goldsboro, Lillington, Lumberton, Pembroke, and Raeford.
The information as of and for the year ended December 31, 2009, as presented is unaudited. The above release presents financial information excluding the goodwill impairment charge (non-GAAP). The goodwill impairment charge is included in the financial results presented in accordance with generally accepted accounting principles (GAAP). The Company believes that the exclusion of goodwill impairment in expressing net income and earnings per share data provides a more meaningful base for period-to-period comparisons which will assist investors in analyzing the operating results of the Company and predicting operating performance. Non-GAAP measures are not in accordance with, or a substitute for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations that would be reflected in measures determined in accordance with GAAP. Non-GAAP measures should only be used to evaluate our results of operations in conjunction with corresponding GAAP measures. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of our goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or similar expressions. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including, but not limited to, our ability to manage growth, our limited operating history, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s SEC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Company.
New Century Bancorp, Inc.
Selected Financial Information and Other Data
($ in thousands, except per share data)
At or for the three months ended
--------------------------------
December September June March December
31, 30, 30, 31, 31,
2009 2009 2009 2009 2008
-------- --------- ---- ----- --------
Summary of
Operations:
Total interest
income $8,378 $8,223 $8,009 $8,252 $8,348
Total Interest
expense 2,821 3,170 3,459 3,673 3,991
------- ----- ----- ----- -----
Net interest
income 5,557 5,053 4,550 4,579 4,357
Provision for
loan losses 995 2,377 1,414 685 2,142
----- ----- ----- ----- -----
Net interest
income after
provision 4,562 2,676 3,136 3,894 2,215
Noninterest
income 821 812 792 1,040 890
Goodwill
Impairment 8,674 - - - -
Noninterest
expense 4,796 4,075 4,428 4,275 4,258
----- ----- ----- ----- -----
Income (loss)
before income
taxes (8,087) (587) (500) 659 (1,153)
Provision for
income taxes
(benefit) 141 (218) (247) 251 (487)
------ ------ ------ ---- ------
Net income
(loss) $(8,228) $(369) $(253) $408 $(666)
======== ====== ====== ==== ======
Share and Per
Share Data:
Earnings (loss)
per share-
basic $(1.20) $(0.05) $(0.04) $0.06 $(0.10)
Earnings
(loss)per
share-
diluted (1.20) (0.05) (0.04) 0.06 (0.10)
Book value per
share 7.96 9.22 9.21 9.23 9.17
Tangible book
value per
share 7.83 7.82 7.80 7.82 7.76
Ending shares
outstanding 6,837,952 6,837,742 6,836,149 6,831,149 6,831,149
Weighted
average shares
outstanding:
Basic 6,837,863 6,837,292 6,831,973 6,831,149 6,829,731
Diluted 6,837,863 6,837,292 6,831,973 6,835,476 6,829,731
Selected
Performance
Ratios:
Return on
average
assets -5.09% -0.23% -0.16% 0.27% -0.43%
Return on
average
equity -51.24% -2.30% -1.60% 2.61% -4.27%
Net interest
margin 3.70% 3.52% 3.16% 3.26% 3.07%
Efficiency
ratio (1) 75.20% 69.48% 82.89% 76.08% 81.15%
Period End
Balance Sheet
Data:
Loans, net
of unearned
income $481,176 $472,578 $467,872 $469,794 $460,626
Total Earning
Assets 588,536 591,973 573,951 584,030 560,534
Goodwill and
other intangible
assets 853 9,565 9,603 9,642 9,680
Total Assets 630,635 636,810 629,000 628,748 605,767
Deposits 540,262 533,350 527,621 523,537 505,119
Short term debt 20,564 25,693 23,461 27,408 23,175
Long term debt 12,372 12,372 12,372 12,372 12,372
Shareholders'
equity 54,409 63,013 62,947 63,059 62,659
Selected Average
Balances:
Gross Loans $476,845 $469,668 $469,581 $468,062 $458,100
Total Earning
Assets 595,250 570,059 577,774 570,221 562,415
Goodwill and
other intangible
assets 9,451 9,584 9,622 9,660 9,699
Total Assets 641,254 634,312 630,180 616,026 607,685
Deposits 538,643 532,427 526,894 513,079 508,911
Short term debt 23,498 23,020 24,606 24,458 21,659
Long term debt 12,372 12,372 12,372 12,372 12,372
Shareholders'
equity 63,710 63,588 63,615 63,421 61,868
Asset Quality
Ratios:
Nonperforming
loans $15,965 $16,003 $13,352 $7,739 $8,630
Other real
estate owned 2,530 2,346 2,196 2,333 2,799
Allowance for
loan losses 10,359 10,317 8,519 7,792 8,860
Nonperforming
loans (2) to
period-end
loans 3.32% 3.39% 2.85% 1.65% 1.87%
Allowance for
loan losses
to period-
end loans 2.15% 2.18% 1.82% 1.66% 1.92%
Delinquency
Ratio (3) 0.41% 1.61% 0.51% 0.98% 0.32%
Net loan charge-
offs to average
loans 0.79% 0.49% 0.59% 1.52% 0.39%
At or for the twelve months ended
---------------------------------
December 31, December 31, December 31,
------------ ------------ ------------
2009 2008 2007
------------ ------------ ------------
Summary of Operations:
Total interest
income $32,861 $35,233 $41,598
Total interest
expense 13,122 17,372 20,653
------ ------ ------
Net interest income 19,739 17,861 20,945
Provision for loan
losses 5,472 4,283 5,974
----- ----- -----
Net interest income
after provision 14,267 13,578 14,971
Noninterest income 2,610 3,128 3,978
Goodwill Impairment 8,674 - -
Noninterest expense 16,717 17,138 16,337
------ ------ ------
Income (loss) before
income taxes (8,514) (432) 2,612
Provision for
income taxes
(benefit) (73) (239) 953
--- ---- ---
Net income (loss) $(8,441) $(193) $1,659
======= ===== ======
Share and Per Share
Data:
Earnings (loss) per
share- basic $(1.24) $(0.03) $0.25
Earnings (loss) per
share- diluted (1.24) (0.03) 0.24
Book value per
share 7.96 9.17 9.09
Tangible book value
per share 7.83 7.76 7.63
Ending shares
outstanding 6,837,952 6,831,149 6,730,874
Weighted average
Shares outstanding:
Basic 6,834,595 6,809,437 6,603,631
Diluted 6,834,595 6,809,437 6,844,426
Selected Performance
Ratios:
Return on average
assets -1.34% -0.03% 0.28%
Return on average
equity -13.28% -0.31% 2.77%
Net interest margin 3.41% 3.27% 3.93%
Efficiency ratio (1) 74.80% 81.65% 65.55%
Period End Balance
Sheet Data:
Loans, net of
unearned income $481,176 $460,626 $442,875
Total Earning
Assets 588,536 560,534 543,167
Goodwill and other
intangible assets 853 9,680 9,834
Total Assets 630,635 605,767 591,025
Deposits 540,262 505,119 498,123
Short term debt 20,564 23,175 16,967
Long term debt 12,372 12,372 12,372
Shareholders'
equity 54,409 62,659 61,173
Selected Average
Balances:
Gross Loans $471,059 $451,558 $449,799
Total Earning
Assets 578,372 554,798 539,526
Goodwill and other
intangible assets 9,578 9,756 9,910
Total Assets 630,521 599,912 583,809
Deposits 527,844 504,188 493,989
Short term debt 23,891 18,615 15,672
Long term debt 12,372 12,372 12,372
Shareholders'
equity 63,584 62,107 59,888
Asset Quality Ratios:
Nonperforming loans $15,965 $8,536 $5,041
Other real estate
owned 2,530 2,799 542
Allowance for loan
losses 10,359 8,860 8,314
Nonperforming loans
(2) to period-end
loans 3.32% 1.85% 1.13%
Allowance for loan
losses to period-
end loans 2.15% 1.92% 1.88%
Delinquency Ratio (3) 0.41% 0.32% 1.31%
Net loan charge-
offs to average
loans 0.84% 0.82% 1.15%
(1) Efficiency ratio is calculated as non-interest expenses divided
by the sum of net interest income and non-interest income.
(2) Nonperforming loans consist of non-accrual loans and
restructured loans.
(3) Delinquency Ratio includes 30-89 days past due and excludes
non-accrual loans.
www.newcenturybanknc.com
SOURCE New Century Bancorp
RELATED LINKS
http://www.newcenturybanknc.com
MONROEVILLE, Penn., Jan. 29 /PRNewswire/ — Parkvale Financial Corporation ( PVSA) reported net income for the quarter ended December 31, 2009 of $2.4 million compared to net income of $2.1 million for the quarter ended December 31, 2008. Income available to common shareholders, after the payment of dividends on preferred stock was $2.0 million or $0.38 per diluted common share for the quarter ended December 31, 2009 and $2.0 million or $0.37 per diluted common share for the quarter ended December 31, 2008. The $360,000 increase in net income for the December 2009 quarter reflects a recovery of $1.1 million upon the sale of a previously written down equity security, partially offset by writedowns of $782,000 on investment securities. The provision for loan losses decreased by $731,000 to $1.4 million for the quarter. Noninterest expense increased by $163,000 as a result of a $583,000 higher FDIC insurance premium for the quarter and net interest income decreased by $1.5 million or 14.4%. Net interest income decreased from $10.6 million to $9.1 million for the current period, reflecting lower interest rates and increased refinancing activity. Return on average equity was 6.37% for the December 2009 quarter compared to 5.68% for the December 2008 quarter.
For the six month period ended December 31, 2009, net income was $3.3 million compared to net income of $3.2 million for the six month period ended December 31, 2008. After giving effect to the dividends on the preferred stock, the income available to common shareholders was $2.4 million or $0.46 per diluted common share for the six months ended December 31, 2009 compared to $3.1 million or $0.57 per diluted common share for the six months ended December 31, 2008. The net income for the six months ended December 2009 reflects recoveries on the sale of equity securities of $2.2 million, $3.5 million of debt security impairment charges, provision for loan losses of $3.7 million and an increase in noninterest expense of $659,000 primarily due to higher FDIC insurance premiums of $1.1 million. Net interest income decreased $3.1 million or 14.5% and income tax expense decreased by $1.1 million or 81.5%. Net interest income for the six months ended December 31, 2009 decreased to $18.4 million from $21.5 million for the six months ended December 31, 2008. Return on average equity was 4.32% for the six months ended December 2009 compared to 4.52% for the six months ended December 2008.
(Condensed Consolidated Statement of Operations and selected financial data is attached.)
PARKVALE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollar amounts in thousands, except per share data)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Total interest income $19,300 $23,135 $39,322 $46,955
Total interest expense 10,210 12,513 20,914 25,436
------ ------ ------ ------
Net interest income 9,090 10,622 18,408 21,519
Provision for loan losses 1,398 2,129 3,687 3,156
----- ----- ----- -----
Net interest income after provision
for losses 7,692 8,493 14,721 18,363
Net gain on sale (writedown) of
securities (782) (1,060) (3,543) (5,007)
Other noninterest income 3,588 2,613 7,252 5,378
Total noninterest expense 7,314 7,151 14,906 14,247
----- ----- ------ ------
Income before income taxes 3,184 2,895 3,524 4,487
Income tax expense 759 830 244 1,317
--- --- --- -----
Net income 2,425 2,065 3,280 3,170
Preferred Stock dividend 397 35 794 35
--- -- --- --
Income available to common
shareholders $2,028 $2,030 $2,486 $3,135
====== ====== ====== ======
Basic earnings per common share $0.38 $0.37 $0.46 $0.57
Diluted earnings per common share $0.38 $0.37 $0.46 $0.57
Dividends per common share $0.05 $0.22 $0.10 $0.44
SELECTED FINANCIAL DATA
(Dollar amounts in thousands, except per share data)
Dec. 31, June 30, Dec. 31,
2009 2009 2008
---- ---- ----
Total assets $1,915,896 $1,907,106 $1,890,250
Total deposits 1,528,142 1,511,248 1,481,785
Total loans, net 1,053,009 1,108,936 1,163,968
Loan loss allowance 18,883 17,960 15,897
Non-performing loans and foreclosed
real estate 36,335 33,641 20,780
Ratio to total assets 1.90% 1.76% 1.10%
Allowance for loan losses as a % of
gross loans 1.76% 1.60% 1.35%
Total shareholders' equity $151,513 $150,760 $163,264
Book value per common share $21.73 $21.92 $24.23
OTHER SELECTED DATA
Three months ended Six months ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Average yield earned on all interest-
earning assets 4.30% 5.38% 4.38% 5.43%
Average rate paid on all interest-
bearing liabilities 2.33% 3.00% 2.39% 3.04%
Average interest rate spread 1.97% 2.38% 1.99% 2.39%
Net yield on average interest-
earning assets 2.03% 2.47% 2.05% 2.49%
Return on average assets 0.51% 0.45% 0.34% 0.34%
Return on average equity 6.37% 5.68% 4.32% 4.52%
Other expense to average assets 1.53% 1.56% 1.56% 1.55%
SOURCE Parkvale Financial Corporation