<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(Mark One)
[xx] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- ------------
Commission File Number 1-5846
------
THE LIBERTY CORPORATION
-----------------------
(Exact name of registrant as specified in its charter)
South Carolina 57-0507055
(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
Post Office Box 789, Wade Hampton Boulevard, Greenville, SC 29602
-----------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: 803/268-8436
------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock as of the latest practicable date.
Number of shares Outstanding
Title of each class as of September 30, 1995
------------------- ----------------------------
Common Stock 20,025,013
Page 1 of 12 sequentially numbered pages.
The Exhibit Index is on Page 10.
<PAGE> 2
PART I, ITEM 1
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
(In 000's) SEPTEMBER 30,
1995 December 31, 1994
------------- -----------------
ASSETS (Unaudited)
<S> <C> <C>
Investments:
Fixed Maturity Securities
Available for Sale, at market, cost of $1,071,334 at 9/30/95
and $947,522 at 12/31/94 $1,103,209 $ 883,029
Held to Maturity, at cost, market of $314,768 at 9/30/95 and
$311,129 at 12/31/94 288,858 299,118
Equity Securities, primarily at market, cost of $66,262 at 9/30/95
and $78,116 at 12/31/94 85,808 78,208
Mortgage Loans 201,248 203,381
Investment Real Estate 152,196 135,545
Loans to Policyholders 98,203 96,160
Other Long-Term Investments 16,863 31,624
Short-term Investments 1,686 7,264
---------- ----------
Total Investments 1,948,071 1,734,329
Cash 47,563 51,400
Accrued Investment Income 19,109 18,708
Receivables 44,121 37,879
Receivable from Reinsurers 270,954 258,969
Deferred Acquisition Costs 354,888 357,855
Buildings and Equipment 77,853 66,360
Intangibles Related to Television Operations 76,155 46,934
Goodwill Related to Insurance Acquisitions 40,220 40,308
Other Assets 73,862 54,522
---------- ----------
Total Assets $2,952,796 $2,667,264
========== ==========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Liabilities
Policy Liabilities $1,844,908 $1,783,623
Notes, Mortgages and Other Debt 174,758 131,647
Long Term Debt 100,000 100,000
Accrued Income Taxes 7,349 4,418
Deferred Income Taxes 138,431 112,707
Accounts Payable and Accrued Expenses 76,341 66,608
Other Liabilities 31,086 26,856
---------- ----------
Total Liabilities 2,372,873 2,225,859
---------- ----------
Redeemable Preferred Stock
1994-A Series, $35.00 redemption value, shares issued and outstanding -
668,207 in 1995 and 1994 23,387 23,387
1994-B Series, $37.50 redemption value, shares issued and outstanding -
596,485 in 1995 and 598,101 in 1994 22,368 22,429
Shareholders' Equity
Common Stock 157,716 152,956
Series 1995-A Convertible Preferred Stock, $35.00 redemption value,
599,985 shares issued and outstanding 21,000 ---
Unearned Stock Compensation (6,368) (5,319)
Unrealized Investment Gains (Losses) 30,904 (53,109)
Cumulative Foreign Currency Translation Adjustment (290) (1,491)
Retained Earnings 331,206 302,552
---------- ----------
Total Shareholders' Equity 534,168 395,589
---------- ----------
Total Liabilities, Redeemable Preferred Stock and
Shareholders' Equity $2,952,796 $2,667,264
========== ==========
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
2
<PAGE> 3
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months ended Nine Months ended
September 30, September 30,
--------------------------- ----------------------------
(In 000's, except per share data) 1995 1994 1995 1994
-------- -------- -------- --------
(Unaudited)
<S> <C> <C> <C> <C>
REVENUES
Insurance Premiums & Policy Charges $ 83,554 $ 83,498 $252,308 $231,511
Broadcasting Revenues 29,323 23,154 86,210 70,082
Net Investment Income 38,149 34,999 109,321 97,677
Service Contract Revenue 2,221 1,336 6,713 4,297
Realized Investment Gains (Losses) (14) (1,425) (2,708) 740
-------- -------- -------- --------
Total Revenues 153,233 141,562 451,844 404,307
-------- -------- -------- --------
EXPENSES
Policyholder Benefits 58,746 60,189 182,236 166,046
Commissions 14,022 12,684 40,946 36,494
General Insurance Expenses 16,559 15,679 50,564 44,868
Amortization of Deferred Acquisition Costs 11,214 10,103 31,861 31,339
Broadcasting Expenses 21,275 17,138 61,431 50,819
Interest Expense 3,935 3,232 11,138 7,792
Other Expenses 3,860 2,906 11,120 8,840
-------- -------- -------- --------
Total Expenses 129,611 121,931 389,296 346,198
-------- -------- -------- --------
Income Before Income Taxes 23,622 19,631 62,548 58,109
Provision for Income Taxes 8,404 6,729 21,387 20,034
-------- -------- -------- --------
NET INCOME $ 15,218 $ 12,902 $ 41,161 $ 38,075
-------- -------- -------- --------
EARNINGS PER SHARE: (Exhibit 11) $ .70 $ .62 $ 1.91 $ 1.85
Dividends Per Common Share .17 .155 .495 .465
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
3
<PAGE> 4
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENTS OF
CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended September 30,
------------------------------------
(In 000's) 1995 1994
------------------------------------
(Unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 41,161 $ 38,075
Adjustments to reconcile net income to net cash provided (used)
in operating activities:
Increase in policy liabilities 17,701 37,849
Increase (decrease) in accounts payable and accrued liabilities 7,377 24,398
(Increase) decrease in receivables (2,743) (1,217)
Amortization of policy acquisition costs 31,861 29,705
Policy acquisition costs deferred (40,952) (45,530)
Realized investment (gains) losses 2,708 (740)
Gain on sale of operating assets (2,488) (2,083)
Depreciation and amortization 14,187 11,630
Amortization of bond premium and discount (5,003) (3,425)
Provision for deferred income taxes 1,687 4,958
All other operating activities, net 2,413 (15,395)
---------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 67,909 78,225
INVESTMENT ACTIVITIES
Investment securities sold - available for sale 108,270 143,969
Investment securities matured or redeemed by issuer:
Available for sale 21,523 49,989
Held to maturity 18,542 58,540
Cost of investment securities acquired - available for sale (241,487) (284,833)
Mortgage loans made (15,446) (32,548)
Mortgage loan repayments 17,316 16,450
Purchase of investment real estate, buildings and equipment (49,028) (76,090)
Sale of investment real estate, buildings and equipment 22,486 24,409
Purchase of short-term investments (33,690) (370,497)
Sales of short-term investments 39,347 381,679
Net cash paid on purchase of television station (8,099) ---
Net cash paid on purchases of insurance companies --- (48,742)
All other investment activities, net (2,642) (3,175)
---------- -----------
NET CASH USED IN INVESTING ACTIVITIES (122,908) (140,849)
FINANCING ACTIVITIES
Proceeds from borrowings 1,690,400 1,841,806
Principal payments on debt (1,658,951) (1,739,736)
Dividends paid (12,506) (10,619)
Stock issued for employee benefit and compensation programs 2,191 2,602
Retirement of common stock (1) ---
Return of policyholders' account balances (26,761) (22,186)
Receipts credited to policyholders' account balances 56,790 56,186
---------- -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 51,162 128,053
INCREASE (DECREASE) IN CASH (3,837) 65,429
Cash at beginning of year 51,400 29,485
---------- -----------
CASH AT END OF PERIOD $ 47,563 $ 94,914
========== ===========
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
4
<PAGE> 5
THE LIBERTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated and condensed financial
statements of The Liberty Corporation and Subsidiaries have been
prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. The
information included is not necessarily indicative of the annual
results that may be expected for the year ended December 31, 1995, but
it does reflect all adjustments (which are of a normal and recurring
nature) considered, in the opinion of management, necessary for a fair
presentation of the results for the interim periods presented. For
further information, refer to the consolidated financial statements and
footnotes thereto included in The Liberty Corporation annual report on
Form 10-K for the year ended December 31, 1994.
2. ACQUISITIONS
On February 28, 1995, the Company completed the acquisition of WLOX-TV
in Biloxi, Mississippi. The purchase price of $41 million was funded
with a combination of cash, convertible preferred stock, and notes
payable. The Company issued 599,985 shares of Series 1995-A Voting
Cumulative Convertible Preferred Stock having a total redemption value
of $20,999,475 or $35.00 per share in connection with the acquisition.
For additional information, see the Company's quarterly report on Form
10Q for the period ended March 31, 1995.
3. COMMITMENTS AND CONTINGENCIES
At September 30, 1995, the Company had made commitments as shown below:
(In 000's)
<TABLE>
<S> <C>
Buildings and equipment $ 1,325
Investment real estate 5,081
Mortgage loans and bonds 18,575
Other 3,350
-------
$28,331
=======
</TABLE>
4. SUPPLEMENTAL INFORMATION ON INSURANCE OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
------------- -------------
(In Millions) 1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Increase (decrease) in net
insurance in force (191) 309 13 1,233
==== === ====== ======
Net insurance in force 16,877 16,667
====== ======
</TABLE>
5
<PAGE> 6
PART I, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(Unaudited)
OPERATIONS
Consolidated third quarter net income of $15.2 million increased 18% over
1994's third quarter (see table below). Operating earnings (which exclude net
realized investment gains and losses) increased $1.5 million (11%) over 1994's
third quarter. Net income reflects realized investment losses (after-tax) of
$.1 million in third quarter 1995 versus realized investment losses of $.8
million in third quarter 1994.
Year-to-date net income of $41.2 million increased 8% over the comparable 1994
period. An operating earnings increase of $5.5 million (15%) was offset by
realized investment losses totaling $1.9 million in the current year versus
realized investment gains of $.5 million in 1994.
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
------------- ------------
1995 1994 1995 1994
----------------------- ----------------------
<S> <C> <C> <C> <C>
Income Before Income Taxes $23,622 $19,631 $62,548 $58,109
Income Taxes 8,404 6,729 21,387 20,034
------- ------- ------- -------
Net Income $15,218 $12,902 $41,161 $38,075
======= ======= ======= =======
</TABLE>
Excluding realized gains and losses, over the comparable prior year quarter the
Company's insurance operations generated an increase in pre-tax income of $2.4
million, broadcasting had an increase of $1.7 million, and the Parent Company
had an increased loss of $1.6 million.
The $2.4 million pre-tax earnings increase for insurance operations was
primarily driven by Liberty Life, which saw an improvement of $1.3 million
versus the comparable prior year period. Compared to the third quarter of
1994, Liberty Life experienced an improvement in policyholder benefit expense,
and higher net investment income from residential land and lot sales. These
increases were offset slightly by higher deferred acquisition cost amortization
associated with higher lapses compared to third quarter 1994. The decision in
1994 to exit the general agency marketing division resulted in a $.3 million
improvement in earnings compared to the third quarter 1994. The pre-need
business contributed a pretax earnings increase of $.8 million, and Liberty
Insurance Services contributed a pre-tax increase of $0.4 million.
The $1.7 million (39%) increase in pretax earnings from broadcasting operations
was due to a significant increase in national and local revenues coupled with
higher network compensation, and a stronger contribution from the cable
operations. Additionally, the acquisition of WLOX-TV contributed to the
quarterly improvement compared to the third quarter of 1994.
The major contributing factor to the $1.6 million increase in the parent
company's before-tax loss was a higher debt level and higher interest expense
due to the impact of rising interest rates on the Company's borrowings.
Consolidated revenues increased $11.7 million (8%) from the prior year third
quarter due to a $5.4 million (5%) increase in revenues from the insurance
operations driven by higher investment income and service contract revenues,
and a $6.2 million increase in broadcasting revenues. Excluding the impact of
realized investment gains and losses, consolidated revenues increased $10.3
million (7%).
Broadcasting revenues for the quarter, up $6.2 million (27%), benefited
primarily from a $.9 million increase in national revenues, a $3.8 million
increase in local revenues, as well as increased network compensation.
Revenues related to Cosmos' cable operations, which began last year, were up
$.8 million. WLOX-TV contributed $3.8 million of the increase in revenues.
The year-to-date increase in broadcasting revenues is driven by the same
factors affecting the quarterly comparisons.
6
<PAGE> 7
The Liberty Corporation and Subsidiaries
Management's Discussion and Analysis of Operations September 30, 1995
Net investment income increased compared to third quarter 1994 due to a higher
volume of land and lot sales occurring this year, primarily residential real
estate sales. The year-to-date comparison reflects the impact of having the
1994 acquisitions included for a full year in 1995, versus only seven months in
1994 for American Funeral Assurance Company and North American National
Corporation, and six months for State National Capital Corporation.
The $2.7 million (5%) decrease in policyholder benefits was due to a $2.4
million decrease in Liberty Life and a $0.3 million decrease in the pre-need
companies. Overall claims experience in the third quarter was the most
favorable of the year. The year-to-date increase of $16.2 million (10%) is a
result of inclusion of the three 1994 acquisitions mentioned above for a full
nine months during 1995.
The 11% increase in amortization of deferred acquisition costs for the quarter
was primarily related to an upswing in lapses in home service during the third
quarter.
Broadcasting expenses were up 24% for the quarter due to the additional
expenses associated with its cable operations as well as expenses related to
the WLOX-TV operation. The year to date increase of 21% is due to the same
factors driving the quarterly fluctuation.
INVESTMENTS
As of September 30, 1995, approximately 69% of the Company's $1.9 billion
consolidated invested assets were in bonds with an overall average credit
rating of AA. Less than 5% of the bond portfolio was rated below investment
grade.
Approximately 58% of the Company's $1.3 billion bond portfolio at September 30,
1995, was comprised of mortgage-backed securities compared to 54% at December
31, 1994. Certain mortgage-backed securities are subject to significant
prepayment or extension risk due to changes in interest rates. In periods of
declining interest rates, mortgages may be repaid more rapidly than scheduled
as borrowers refinance higher rate mortgages to take advantage of the lower
current rates. As a result, holders of mortgage-backed securities may receive
large prepayments on their investments which cannot be reinvested at interest
rates comparable to the rates on the prepaid mortgages. In a rising interest
rate environment refinancings are significantly curtailed and the payments to
the holders of the securities decline, limiting the ability of the holder to
reinvest at the higher interest rates. Mortgage-backed pass-through securities
and sequential collateralized mortgage obligations ("CMO's"), which comprised
19% of the book value of the Company's mortgage-backed securities at September
30, 1995, and 17% at December 31, 1994, are sensitive to prepayment or
extension risk.
The remaining 81% of the Company's mortgage-backed investment portfolio at
September 30, 1995, consisted of planned amortization class ("PAC") instruments
compared to approximately 83% at December 31, 1994. These investments are
designed to amortize in a more predictable manner by shifting the primary
prepayment and extension risk of the underlying collateral to investors in
other tranches of the CMO.
Mortgage loans of $201.2 million comprised 10% of the consolidated investment
portfolio at September 30, 1995. Substantially all of these mortgage loans are
commercial mortgages with a loan to value ratio not exceeding 75% when made.
These loans are concentrated in the southeast primarily in the states of North
Carolina, South Carolina, Georgia, Florida, Virginia, and Tennessee.
Investment real estate at September 30, 1995, of $152.2 million comprised 8% of
the consolidated investment portfolio compared to 8% at December 31, 1994.
Four key property types made up approximately 90% of the Company's real estate
investment assets: residential land development, business parks, business
property rentals and shopping centers.
The majority of the Company's investment real estate is located in South
Carolina, Florida, Georgia, and North Carolina.
7
<PAGE> 8
The Liberty Corporation and Subsidiaries
Management's Discussion and Analysis of Operations September 30, 1995
FINANCIAL POSITION
As a result of the first quarter acquisition of WLOX-TV, the Company's
consolidated assets increased approximately $41.0 million. Based on a
preliminary appraisal of the assets acquired, approximately $11.8 million has
been classified as buildings and equipment with the remainder classified as
intangibles related to television operations. Additionally, the Company's
notes, mortgages and other debt increased by approximately $20.0 million, and
convertible preferred stock was issued totaling $21.0 million.
The Company adopted SFAS No. 115, "Accounting for Certain Investments in Debt
and Equity Securities" on January 1, 1994. As of September 30, 1995, the
Company reported an unrealized gain of $30.9 million on fixed maturity
securities available for sale and equity securities. This compares with an
unrealized loss of $53.1 million at December 31, 1994. Fixed maturities held
to maturity had an unrealized gain of $25.9 million which is not reported in
the balance sheet, since these securities continue to be carried at cost under
SFAS No. 115.
CAPITAL, FINANCING AND LIQUIDITY
The Company's net cash flow from operating activities was $67.9 million for the
first nine months of 1995 compared to $78.2 million for the same period of
1994. The Company's net cash used in investing activities was $122.9 million,
and cash flow provided from financing activities was $51.2 million. As a
result of its activities, the Company had a $3.8 million decrease in cash
compared to an increase of $65.4 million in the same period in 1994. The net
cash used in investing activities was primarily related to net cash paid on the
purchase of WLOX-TV and the purchase of various investment real estate
properties. The net cash provided from financing activities was primarily from
proceeds from borrowings net of principal payments on debt. The proceeds from
borrowings were used to partially finance the acquisition of WLOX-TV.
At September 30, 1995, the Company's borrowings and notes payable amounted to
$274.8 million, an increase from the $231.6 million outstanding at December 31,
1994. The increase was primarily a function of borrowings and notes payable
related to the WLOX-TV acquisition, as well as borrowings incurred to allow the
re-alignment of certain assets within the Company. The total purchase price of
WLOX-TV of $41.0 million was funded by borrowing approximately $5.7 million
against the credit facility, issuing notes payable totaling $13.5 million, and
issuing a new class of convertible preferred stock totaling $21.0 million. The
preferred stock has a stated value of $35.00 per share and will pay an annual
dividend of 5%. The preferred stock is convertible at any time by the holder
into one share of the Company's common stock. Additionally, the Company may
redeem the preferred stock at any time beginning five years and one month after
the date of issuance for cash, common stock of the Company, or a combination of
them both. The 1995-A Series Cumulative Convertible Preferred Stock was only
issued to WLOX-TV shareholders in connection with the acquisition of the
company and no additional shares of this Series were made available to the
public.
The Company uses various interest rate swaps and caps to help minimize the
impact of a potential significant rise in short term interest rates. (See the
Company's 1994 Annual Report to Shareholders for a description of the interest
rate caps in place.) The Company has also entered into an interest rate swap
agreement which effectively fixes the rate on the $100 million term loan
facility at 5.965% plus a credit spread (currently .75%) based on the ratio of
consolidated debt to consolidated cash flow, as defined, and will expire in
March 2002. The swap agreement is with a major financial institution which is
expected to fully perform under the term of the agreement thereby mitigating
the credit risk from the transaction. The agreement is a contract to exchange
fixed and floating interest rate payments periodically over the life of the
agreement without the exchange of the underlying notional amounts. The Company
has not used interest rate swaps or any other derivative financial instruments
to manage its interest rate exposure on interest sensitive universal-life type
products.
8
<PAGE> 9
The Liberty Corporation and Subsidiaries
Management's Discussion and Analysis of Operations September 30, 1995
Other Company commitments are shown in Note 3 contained in the accompanying
financial statements. Additional detail as to commitments and financing is
contained in the Notes to the Consolidated Financial Statements in the
Company's annual report on Form 10K for the year ended December 31, 1994.
Further discussion of investments and valuation is contained in Notes 1 and 2
to the Consolidated Financial Statements in the Company's annual report on Form
10K for the year ended December 31, 1994.
ACCOUNTING DEVELOPMENTS
The Company adopted Statement of Financial Accounting Standard No. 114,
"Accounting by Creditors for Impairments of a Loan" ("SFAS No. 114"), on
January 1, 1995. For additional information, see the Company's quarterly
report on Form 10Q for the period ended March 31, 1995.
9
<PAGE> 10
PART II, ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) A list of the exhibits filed with this report is included in
the Index to Exhibits filed herewith.
(b) The filing of Form 8-K was not required during the third
quarter of 1995.
INDEX TO EXHIBITS
EXHIBIT 11 Consolidated Earnings Per Share Computation
EXHIBIT 27 Financial Data Schedule (Electronic Filing Only)
10
<PAGE> 11
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
THE LIBERTY CORPORATION Date: November 9, 1995
(Registrant)
/s/ H. Ray Eanes
- -----------------
H. Ray Eanes
Senior Vice President Finance & Treasurer
/s/ John P. Smith
- ------------------
John P. Smith
Corporate Controller
11
<PAGE> 1
Exhibit 11
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED EARNINGS PER SHARE COMPUTATION
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------- -----------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
(Unaudited)
<S> <C> <C> <C> <C>
PRIMARY SHARES
Common shares outstanding - end of period 20,025,013 19,815,600 20,025,013 19,815,600
Weighted average common shares outstanding 19,999,651 19,803,157 19,922,201 19,686,447
Weighted average common stock options
outstanding 140,654 93,042 106,785 91,560
Preferred stock considered a common stock
equivalent 599,985 --- 468,877 ---
----------- ----------- ----------- -----------
Total primary shares 20,740,290 19,896,199 20,497,863 19,778,007
=========== =========== =========== ===========
FULLY DILUTED SHARES
Weighted average common shares outstanding
19,999,651 19,803,157 19,222,201 19,686,447
Weighted average common stock options
outstanding 170,159 93,042 125,405 94,879
Preferred stock considered a common stock
equivalent 599,985 --- 468,877 ---
Assumed conversion of redeemable preferred
stock not considered a common stock
equivalent 1,264,692 1,266,521 1,265,516 924,282
----------- ----------- ----------- -----------
Total fully diluted shares 22,034,487 21,162,720 21,781,999 20,705,608
=========== =========== =========== ===========
NET INCOME $15,218,000 12,902,000 $41,161,000 $38,075,000
=========== =========== =========== ===========
PREFERRED STOCK DIVIDENDS ON REDEEMABLE
PREFERRED STOCK
Dividends $ 665,000 $ 665,000 $ 1,995,000 $ 1,452,000
=========== =========== =========== ===========
Primary earnings per share (net income
minus preferred dividends divided by total
primary shares) $ .70 $ 0.62 $ 1.91 $ 1.85
=========== =========== =========== ===========
Fully diluted earnings per share (net
income divided by total fully
diluted shares) $ .69 $ 0.61 $ 1.89 $ 1.84
=========== =========== =========== ===========
</TABLE>
12
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF THE LIBERTY CORPORATION FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 1,103,209
<DEBT-CARRYING-VALUE> 288,858
<DEBT-MARKET-VALUE> 314,768
<EQUITIES> 85,808
<MORTGAGE> 201,248
<REAL-ESTATE> 152,196
<TOTAL-INVEST> 1,948,071
<CASH> 47,563
<RECOVER-REINSURE> 270,954
<DEFERRED-ACQUISITION> 354,888
<TOTAL-ASSETS> 2,952,796
<POLICY-LOSSES> 1,795,390
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 22,763
<POLICY-HOLDER-FUNDS> 26,755
<NOTES-PAYABLE> 274,758
<COMMON> 157,716
45,755
21,000
<OTHER-SE> 355,452
<TOTAL-LIABILITY-AND-EQUITY> 2,952,796
252,308
<INVESTMENT-INCOME> 109,321
<INVESTMENT-GAINS> (2,708)
<OTHER-INCOME> 92,923
<BENEFITS> 182,236
<UNDERWRITING-AMORTIZATION> 31,861
<UNDERWRITING-OTHER> 91,510
<INCOME-PRETAX> 62,548
<INCOME-TAX> 21,387
<INCOME-CONTINUING> 41,161
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 41,161
<EPS-PRIMARY> 1.91
<EPS-DILUTED> 1.89
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
