SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 2, 1998
THE LIBERTY CORPORATION
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(Exact name of registrant as specified in its charter)
South Carolina 1-5846 57-0507055
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(State or other (Commission file number) (IRS employer identification no.)
jurisdiction of
incorporation)
2000 Wade Hampton Boulevard, Greenville, South Carolina 29602
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (864) 609-8256
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ITEM 5. OTHER EVENTS.
On February 2, 1998, The Liberty Corporation issued a news release
regarding its fourth quarter and year end results. A copy of the news release is
attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
(99.1) News Release dated February 2, 1998 from The Liberty Corporation.
SIGNATURE
Pursuant to the requirements 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.
Dated: February 5, 1998 THE LIBERTY CORPORATION
By: /s/ Martha G. Williams
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Martha G. Williams
Vice President, General Counsel
and Secretary
By: /s/ Kenneth W. Jones
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Kenneth W. Jones
Corporate Controller
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EXHIBIT INDEX
Exhibit Number Description
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(99.1) News Release dated February 2, 1998
from The Liberty Corporation
For Further information:
(Analyst calls) Ken Jones (864) 609-3496
(News media calls) Michael Fanning (864) 609-3594
THE LIBERTY CORP. REPORTS FOURTH-QUARTER RESULTS
Insurance and Broadcasting Operations Post Increases
in Operating Earnings, Net Income
GREENVILLE, S.C., Feb. 2, 1998 - The Liberty Corp. (NYSE: LC) today reported
increases in operating earnings and net income, driven by fourth-quarter
improvements in both its insurance and broadcasting operations.
For the fourth quarter ended Dec. 31, 1997, revenues were $163.2
million, level with the same period in 1996. Operating earnings of $19.7 million
rose 4 percent over the previous fourth quarter. Operating earnings per diluted
share were 87 cents compared with 85 cents for the fourth quarter of 1996.
Net income of $18.5 million, which rose 4 percent from the fourth
quarter of 1996, was 81 cents per diluted share compared with 80 cents per
diluted share for the previous period. Net income included realized investment
losses of $1.3 million for the quarter.
Operating earnings from insurance operations for the fourth
quarter were $16.5 million, a 7 percent increase over the prior year quarter.
Liberty's FamilySide pre-need operation, which is being sold to Fortis, Inc.
during the first quarter of 1998 as previously announced, led the increase with
a $2.4 million improvement over the prior year. The increase was due to
favorable mortality, higher investment income and lower expenses. Liberty Life's
mortgage protection division reported a modest increase for the quarter, while
the agency division was down slightly.
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Cosmos Broadcasting, which owns and operates eight television
stations in the Southeast and Midwest, reported fourth-quarter operating
earnings of $7.2 million, a 7 percent increase over the prior year quarter.
Revenues for the quarter declined $1.8 million from the prior year period due to
the expected reduction in political advertising. Local and national revenues
increased over the fourth quarter of 1996 but did not offset the political
revenue decline. Cosmos operations also included a $1.3 million benefit from a
favorable adjustment to income tax expense during the fourth quarter.
For the year ended Dec. 31, 1997, operating earnings increased 7
percent to $70.9 million. Diluted operating earnings per share were $3.16
compared with $2.98 in 1996. Revenues grew to $660.3 million, an increase of 7
percent over the prior year. Net income for the year was $75.0 million or $3.34
per diluted share compared with $37.3 million for 1996. Net income for 1996
included a $26.9 million special charge related principally to provisions for
losses on unprofitable insurance products.
Insurance operating earnings increased 11 percent for the year
and broadcasting operations reported a 7 percent increase.
"Overall, we are pleased with the results for both the fourth
quarter and the year," said Hayne Hipp, Liberty's president. "Cosmos turned in a
good performance in what normally would be a down year in both revenues and
operating earnings, due to the absence of Olympics and major political
elections. We also made substantial progress against strategic goals in our
insurance operations."
The Liberty Corporation is a holding company with operations in
insurance and broadcasting. Company headquarters is in Greenville, S.C.
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THE LIBERTY CORPORATION
Consolidated Financial Highlights
(In $000s except per share amounts)
<TABLE>
Three months ended Twelve months ended
December 31 December 31
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1997 1996 % Change 1997 1996 % Change
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(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Revenues
Insurance ................. $ 128,670 $ 122,439 5% $ 509,093 $ 482,500 6%
Broadcasting .............. 37,145 38,964 (5%) 137,898 137,336 0%
Corporate and other, Net .. (2,614) 2,165 N/A 13,265 (739) N/A
--------- --------- --------- ---------
TOTAL REVENUES .............. $ 163,201 $ 163,568 0% $ 660,256 $ 619,097 7%
========= ========= ========= =========
Income
Insurance ................. $ 16,507 $ 15,379 7% $ 62,974 $ 56,508 11%
Broadcasting .............. 7,235 6,789 7% 21,725 20,284 7%
Corporate and other ....... (4,002) (3,247) (23%) (13,763) (10,760) (28%)
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OPERATING EARNINGS .......... 19,740 18,921 4% 70,909 66,032 7%
Realized investment gains ... (1,283) (1,116) N/A 4,042 (1,748) N/A
Non-recurring special charges N/A (26,944) N/A
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NET INCOME .................. $ 18,457 $ 17,805 4% $ 74,951 $ 37,340 N/A
========= ========= ========= =========
Diluted Earnings Per Share
Operating Earnings Per Share $ 0.87 $ 0.85 2% $ 3.16 $ 2.98 6%
Realized investment gains ... (0.06) (0.05) (20%) 0.18 (0.09) N/A
Non-recurring special charges (1.23) N/A
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DILUTED EARNINGS PER SHARE .. $ 0.81 $ 0.80 1% $ 3.34 $ 1.66 201%
========= ========= ========= =========
As of December 31,
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1997 1996 % Change
---- ---- --------
BOOK VALUE PER COMMON
EQUIVALENT SHARE
Including the effect of SFAS 115 $31.65 $27.91 13%
Excluding the effects of SFAS 115 $28.76 $26.00 11%
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