NEW YORK, May 4, 2015 /PRNewswire/ -- Ҵý Corporation (NYSE: L) today reported net income for the three months ended March 31, 2015 of $109 million, or $0.29 per share, compared to $59 million, or $0.15 per share, in the prior year period. Net income in 2014 included a loss from discontinued operations of $206 million reflecting the disposition of both HighMount Exploration & Production, LLC and Ҵý Financial Corporation's annuity and pension deposit business.
Income from continuing operations for the three months ended March 31, 2015 was $109 million, or $0.29 per share, compared to $265 million, or $0.68 per share, in the 2014 first quarter. Excluding asset impairment charges of $158 million (after tax and noncontrolling interests) in 2015 at Diamond Offshore Drilling, Inc. and $55 million (after tax and noncontrolling interests) in 2014 at Boardwalk Pipeline Partners, LP, income from continuing operations, as adjusted, in 2015 was $267 million as compared to $320 million in the prior year period.
Book value per share excluding accumulated other comprehensive income (AOCI) increased to $51.18 at March 31, 2015 from $50.95 at December 31, 2014 and $49.43 at March 31, 2014.
CONSOLIDATED HIGHLIGHTS
Three Months Ended March 31, ------------------ (In millions, except per share data) 2015 2014 ----------------------------------- ---- ---- Income before net investment gains $101 $241 Net investment gains 8 24 -------------------- --- --- Income from continuing operations 109 265 Discontinued operations, net (206) ---------------------------- ---- Net income attributable to Ҵý Corporation $109 $59 ============================================ ==== === Net income per share: Income from continuing operations $0.29 $0.68 Discontinued operations, net (0.53) ---------------------------- ----- Net income per share $0.29 $0.15 ==================== ===== =====
March 31, Year Ended December 31, 2014 ----------------- 2015 2014 ---- ---- Book value per share $51.98 $50.89 $51.70 Book value per share excluding AOCI 51.18 49.43 50.95 =================================== ===== ===== =====
Income from continuing operations decreased primarily due to lower earnings at Diamond Offshore and less favorable performance of the parent company trading portfolio.
Ҵý's earnings increased primarily due to higher investment income driven by limited partnerships and improved current accident year underwriting results including lower catastrophe losses, partially offset by lower realized investment gains.
Diamond Offshore's earnings decreased primarily due to a $158 million (after tax and noncontrolling interests) asset impairment charge related to the carrying value of eight drilling rigs as well as lower rig utilization and increased depreciation expense.
Boardwalk Pipeline's earnings increase stemmed from the impact in 2014 of a $55 million charge (after tax and noncontrolling interests) related to the write off of all capitalized costs associated with the Bluegrass project. Absent this charge, earnings decreased primarily due to the unusually cold and sustained winter of 2014 as compared to the relatively normal 2015 winter season and lower natural gas storage revenues.
Ҵý Hotels' earnings increased primarily due to improved performance of recently acquired properties and higher equity income from joint venture properties.
Discontinued operations in 2014 included an impairment charge related to the sale of Ҵý's annuity and pension deposit business and a ceiling test impairment charge at HighMount.
SHARE REPURCHASES
At March 31, 2015, there were 371.4 million shares of Ҵý common stock outstanding. During the first quarter of 2015, the Ҵý repurchased 1.8 million shares of its common stock at an aggregate cost of $71 million. During the first quarter of 2015, the Ҵý also purchased 0.9 million shares of Diamond Offshore's common stock at an aggregate cost of $24 million. Depending on market conditions, the Ҵý may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market or otherwise.
CONFERENCE CALLS
A conference call to discuss the first quarter results of Ҵý Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be available online at the Ҵý Corporation website (). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 20554874. An online replay will also be available on the Ҵý Corporation's website following the call.
A conference call to discuss the first quarter results of Ҵý has been scheduled for today at 10:00 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (888) 551-9020, or for international callers, (719) 457-2638.
A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (855) 793-3255 or for international callers, (631) 485-4925. The conference ID number is 21218946.
A conference call to discuss the first quarter results of Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (800) 247-9979, or for international callers, (973) 321-1100. The conference ID number is 22913137.
Ҵý LOEWS CORPORATION
Ҵý Corporation is a diversified company with three publicly-traded subsidiaries: Ҵý Financial Corporation (NYSE: Ҵý), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk Pipeline Partners, LP (NYSE: BWP); and one wholly owned subsidiary, Ҵý Hotels & Resorts. For more information please visit .
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Ҵý. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Ҵý's overall business and financial performance can be found in the Ҵý's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Ҵý's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Ҵý expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Ҵý's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Ҵý Corporation and Subsidiaries Selected Financial Information Three Months Ended March 31, ---------------- (In millions) 2015 2014 ------------ ---- ---- Revenues: Ҵý Financial $2,342 $2,421 Diamond Offshore 627 710 Boardwalk Pipeline 330 357 Ҵý Hotels 139 105 Investment income and other 30 53 --------------------------- --- --- 3,468 3,646 Investment gains - Ҵý Financial 10 42 -------------------------------- Total $3,478 $3,688 ===== ====== ====== Income (Loss) Before Income Tax: Ҵý Financial $304 $259 Diamond Offshore (a) (287) 168 Boardwalk Pipeline (b) 77 23 Ҵý Hotels 10 5 Investment income, net 29 51 Other (c) (38) (34) -------- 95 472 Investment gains - Ҵý Financial 10 42 -------------------------------- Total $105 $514 ===== ==== ==== Net Income (Loss) Attributable to Ҵý Corporation: Ҵý Financial $202 $176 Diamond Offshore (a) (126) 69 Boardwalk Pipeline (b) 25 (18) Ҵý Hotels 5 3 Investment income, net 19 34 Other (c) (24) (23) -------- --- --- 101 241 Investment gains - Ҵý Financial 8 24 -------------------------------- --- --- Income from continuing operations 109 265 Discontinued operations, net (d) (206) ------------------------------- Net income attributable to Ҵý Corporation $109 $59 =================================== ==== ===
(a) Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs. (b) Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project. (c) Consists primarily of corporate interest expense and other unallocated expenses. (d) See table on page six for a summary of items comprising discontinued operations for 2014.
Ҵý Corporation and Subsidiaries Consolidated Financial Review Three Months Ended March 31, ------------------ (In millions, except per share data) 2015 2014 ----------------- ---- ---- Revenues: Insurance premiums $1,687 $1,806 Net investment income 588 577 Investment gains 10 42 Contract drilling revenues 600 685 Other 593 578 --- --- Total 3,478 3,688 ----- ----- ----- Expenses: Insurance claims & policyholders' benefits 1,339 1,446 Contract drilling expenses 351 370 Other (a) (b) 1,683 1,358 ------------ ----- ----- Total 3,373 3,174 ----- ----- ----- Income before income tax 105 514 Income tax expense (56) (103) ------------------ --- ---- Income from continuing operations 49 411 Discontinued operations, net of income tax (227) ------------------- ---- Net income 49 184 Amounts attributable to noncontrolling interests 60 (125) --- ---- Net income attributable to Ҵý Corporation $109 $59 ================== ==== === Net income attributable to Ҵý Corporation: Income from continuing operations $109 $265 Discontinued operations, net (c) (206) --------------- ---- Net income $109 $59 ========== ==== === Diluted income per share: Income from continuing operations $0.29 $0.68 Discontinued operations, net (0.53) --------------- ----- Diluted income per share attributable to Ҵý Corporation $0.29 $0.15 =================== ===== ===== Weighted diluted number of shares 373.19 388.07 ================= ====== ======
(a) Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs. (b) Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project. (c) See table on page six for a summary of items comprising discontinued operations for 2014.
Ҵý Corporation and Subsidiaries Discontinued Operations Review Three Months Ended (In millions) March 31, 2014 ------------ -------------- Ҵý Financial Continental Assurance Ҵý (?CAC?) operations $7 Impairment loss on sale of CAC (193) ------------------------------ ---- Ҵý Financial - Discontinued operations, net (186) -------------------------------------------- ---- HighMount Operations (1) Ceiling test impairment (19) HighMount - Discontinued operations, net (20) ---------------------------------------- --- Discontinued operations, net $(206) ============================ =====
SOURCE Ҵý Corporation
SOURCE: Ҵý Corporation
PR Newswire
NEW YORK, May 4, 2015
NEW YORK, May 4, 2015 /PRNewswire/ --Ҵý Corporation (NYSE: L) today reported net income for the three months ended March 31, 2015 of $109 million, or $0.29 per share, compared to $59 million, or $0.15 per share, in the prior year period. Net income in 2014 included a loss from discontinued operations of $206 million reflecting the disposition of both HighMount Exploration & Production, LLC and Ҵý Financial Corporation's annuity and pension deposit business.
Income from continuing operations for the three months ended March 31, 2015 was $109 million, or $0.29 per share, compared to $265 million, or $0.68 per share, in the 2014 first quarter. Excluding asset impairment charges of $158 million (after tax and noncontrolling interests) in 2015 at Diamond Offshore Drilling, Inc. and $55 million (after tax and noncontrolling interests) in 2014 at Boardwalk Pipeline Partners, LP, income from continuing operations, as adjusted, in 2015 was $267 million as compared to $320 million in the prior year period.
Book value per share excluding accumulated other comprehensive income (AOCI) increased to $51.18 at March 31, 2015 from $50.95 at December 31, 2014 and $49.43 at March 31, 2014.
CONSOLIDATED HIGHLIGHTS
Three Months Ended March 31, | ||
(In millions, except per share data) |
2015 |
2014 |
Income before net investment gains |
$ 101 |
$ 241 |
Net investment gains |
8 |
24 |
Income from continuing operations |
109 |
265 |
Discontinued operations, net |
(206) | |
Net income attributable to Ҵý Corporation |
$ 109 |
$ 59 |
Net income per share: |
||
Income from continuing operations |
$ 0.29 |
$ 0.68 |
Discontinued operations, net |
(0.53) | |
Net income per share |
$ 0.29 |
$ 0.15 |
March 31, |
Year Ended | ||
2015 |
2014 | ||
Book value per share |
$ 51.98 |
$ 50.89 |
$ 51.70 |
Book value per share excluding AOCI |
51.18 |
49.43 |
50.95 |
Income from continuing operations decreased primarily due to lower earnings at Diamond Offshore and less favorable performance of the parent company trading portfolio.
Ҵý's earnings increased primarily due to higher investment income driven by limited partnerships and improved current accident year underwriting results including lower catastrophe losses, partially offset by lower realized investment gains.
Diamond Offshore's earnings decreased primarily due to a $158 million (after tax and noncontrolling interests) asset impairment charge related to the carrying value of eight drilling rigs as well as lower rig utilization and increased depreciation expense.
Boardwalk Pipeline's earnings increase stemmed from the impact in 2014 of a $55 million charge (after tax and noncontrolling interests) related to the write off of all capitalized costs associated with the Bluegrass project. Absent this charge, earnings decreased primarily due to the unusually cold and sustained winter of 2014 as compared to the relatively normal 2015 winter season and lower natural gas storage revenues.
Ҵý Hotels' earnings increased primarily due to improved performance of recently acquired properties and higher equity income from joint venture properties.
Discontinued operations in 2014 included an impairment charge related to the sale of Ҵý's annuity and pension deposit business and a ceiling test impairment charge at HighMount.
SHARE REPURCHASES
At March 31, 2015, there were 371.4 million shares of Ҵý common stock outstanding. During the first quarter of 2015, the Ҵý repurchased 1.8 million shares of its common stock at an aggregate cost of $71 million. During the first quarter of 2015, the Ҵý also purchased 0.9 million shares of Diamond Offshore's common stock at an aggregate cost of $24 million. Depending on market conditions, the Ҵý may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market or otherwise.
CONFERENCE CALLS
A conference call to discuss the first quarter results of Ҵý Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be available online at the Ҵý Corporation website (). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 20554874. An online replay will also be available on the Ҵý Corporation's website following the call.
A conference call to discuss the first quarter results of Ҵý has been scheduled for today at 10:00 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (888) 551-9020, or for international callers, (719) 457-2638.
A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (855) 793-3255 or for international callers, (631) 485-4925. The conference ID number is 21218946.
A conference call to discuss the first quarter results of Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (800) 247-9979, or for international callers, (973) 321-1100. The conference ID number is 22913137.
Ҵý LOEWS CORPORATION
Ҵý Corporation is a diversified company with three publicly-traded subsidiaries: Ҵý Financial Corporation (NYSE: Ҵý), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk Pipeline Partners, LP (NYSE: BWP); and one wholly owned subsidiary, Ҵý Hotels & Resorts. For more information please visit .
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Ҵý. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Ҵý's overall business and financial performance can be found in the Ҵý's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Ҵý's website (). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Ҵý expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Ҵý's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Ҵý Corporation and Subsidiaries |
||||
Selected Financial Information |
||||
Three Months Ended March 31, | ||||
(In millions) |
2015 |
2014 | ||
Revenues: |
||||
Ҵý Financial |
$ 2,342 |
$ 2,421 | ||
Diamond Offshore |
627 |
710 | ||
Boardwalk Pipeline |
330 |
357 | ||
Ҵý Hotels |
139 |
105 | ||
Investment income and other |
30 |
53 | ||
3,468 |
3,646 | |||
Investment gains - Ҵý Financial |
10 |
42 | ||
Total |
$ 3,478 |
$ 3,688 | ||
Income (Loss) Before Income Tax: |
||||
Ҵý Financial |
$ 304 |
$ 259 | ||
Diamond Offshore (a) |
(287) |
168 | ||
Boardwalk Pipeline (b) |
77 |
23 | ||
Ҵý Hotels |
10 |
5 | ||
Investment income, net |
29 |
51 | ||
Other (c) |
(38) |
(34) | ||
95 |
472 | |||
Investment gains - Ҵý Financial |
10 |
42 | ||
Total |
$ 105 |
$ 514 | ||
Net Income (Loss) Attributable to Ҵý Corporation: |
||||
Ҵý Financial |
$ 202 |
$ 176 | ||
Diamond Offshore (a) |
(126) |
69 | ||
Boardwalk Pipeline (b) |
25 |
(18) | ||
Ҵý Hotels |
5 |
3 | ||
Investment income, net |
19 |
34 | ||
Other (c) |
(24) |
(23) | ||
101 |
241 | |||
Investment gains - Ҵý Financial |
8 |
24 | ||
Income from continuing operations |
109 |
265 | ||
Discontinued operations, net (d) |
(206) | |||
Net income attributable to Ҵý Corporation |
$ 109 |
$ 59 | ||
(a) |
Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs. | |||
(b) |
Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project. | |||
(c) |
Consists primarily of corporate interest expense and other unallocated expenses. | |||
(d) |
See table on page six for a summary of items comprising discontinued operations for 2014. |
Ҵý Corporation and Subsidiaries | ||||
Consolidated Financial Review | ||||
Three Months Ended March 31, | ||||
(In millions, except per share data) |
2015 |
2014 | ||
Revenues: |
||||
Insurance premiums |
$ 1,687 |
$ 1,806 | ||
Net investment income |
588 |
577 | ||
Investment gains |
10 |
42 | ||
Contract drilling revenues |
600 |
685 | ||
Other |
593 |
578 | ||
Total |
3,478 |
3,688 | ||
Expenses: |
||||
Insurance claims & policyholders' benefits |
1,339 |
1,446 | ||
Contract drilling expenses |
351 |
370 | ||
Other (a) (b) |
1,683 |
1,358 | ||
Total |
3,373 |
3,174 | ||
Income before income tax |
105 |
514 | ||
Income tax expense |
(56) |
(103) | ||
Income from continuing operations |
49 |
411 | ||
Discontinued operations, net of income tax |
(227) | |||
Net income |
49 |
184 | ||
Amounts attributable to noncontrolling interests |
60 |
(125) | ||
Net income attributable to Ҵý Corporation |
$ 109 |
$ 59 | ||
Net income attributable to Ҵý Corporation: |
||||
Income from continuing operations |
$ 109 |
$ 265 | ||
Discontinued operations, net (c) |
(206) | |||
Net income |
$ 109 |
$ 59 | ||
Diluted income per share: |
||||
Income from continuing operations |
$ 0.29 |
$ 0.68 | ||
Discontinued operations, net |
(0.53) | |||
Diluted income per share attributable to Ҵý Corporation |
$ 0.29 |
$ 0.15 | ||
Weighted diluted number of shares |
373.19 |
388.07 | ||
(a) |
Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs. | |||
(b) |
Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project. | |||
(c) |
See table on page six for a summary of items comprising discontinued operations for 2014. |
Ҵý Corporation and Subsidiaries | |||
Discontinued Operations Review | |||
Three Months Ended | |||
(In millions) |
March 31, 2014 | ||
Ҵý Financial |
|||
Continental Assurance Ҵý (῝CAC῞) operations |
$ 7 | ||
Impairment loss on sale of CAC |
(193) | ||
Ҵý Financial - Discontinued operations, net |
(186) | ||
HighMount |
|||
Operations |
(1) | ||
Ceiling test impairment |
(19) | ||
HighMount - Discontinued operations, net |
(20) | ||
Discontinued operations, net |
$ (206) |
SOURCE Ҵý Corporation
CONTACT: Mary Skafidas, Investor and Public Relations, (212) 521-2788
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