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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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) January 26, 1995
THE COLONIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 1-9054 04-2934627
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(Address of (Zip Code)
Principal Executive
Office)
Registrant's
telephone number,
including area code: (617) 426-3750
No Change
(Former name or former address, if changed since last
report)
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Item 5. Other Events
On January 26, 1995, the Registrant issued the following press
release:
For Information:
Davey S. Scoon
(617)426-3750
FOR IMMEDIATE RELEASE
The Colonial Group, Inc. Releases Earnings
Boston, January 26, 1995 - The Colonial Group, Inc.
(NASDAQ:COGRA) announced today revenues and results of
operations for the fourth quarter and full year 1994.
FOURTH QUARTER RESULTS
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Revenues. Revenues were $38.2 million for the fourth
quarter of 1994. This represents a decrease of $4.2 million
or 10% compared to revenues of $42.4 million for the same
period last year.
Results of Operations. Operating expenses for the fourth
quarter of 1994 include non-recurring expense of $4.1
million and acceleration of stock option expense of $2.5
million related to the planned merger with Liberty Financial
Companies, Inc. The after tax effect of these items was
$3.6 million and $1.5 million, respectively, resulting in a
loss for the period of $2.0 million. This compares to $5.3
million of net income for the same period last year.
Results per share. The impact of the accelerated stock
option expense and non-recurring expense relating to the
planned merger on earnings per share was a negative $0.64
resulting in a net loss per share of $0.25 for the three
months ended December 31, 1994, compared to net income per
share of $0.69 for the same period last year.
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FULL YEAR RESULTS
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Revenues. Revenues were $161.2 million for 1994. This
represents an increase of $10.4 million or 7% compared to
revenues of $150.8 million in 1993.
Results of Operations. Operating expenses include non-
recurring expense of $4.6 million and acceleration of stock
option expense of $2.5 million related to merger activity
that resulted in the planned merger with Liberty Financial
Companies, Inc. The after tax effect of these items of $4.0
million and $1.5 million, respectively, resulted in net
income of $11.8 million for 1994. This compares to $20.0
million of net income for 1993.
Results per share. The impact of the accelerated stock
option expense and non-recurring expense on earnings per
share was a negative $0.70 resulting in net income per share
of $1.53 for 1994, compared to $2.65 for 1993.
Sales of Colonial funds were $201 million in the fourth
quarter and $1.6 billion for the year compared to $1.1
billion and $4.6 billion, respectively, in 1993. Assets
under management declined further to $13.8 billion at
December 31, 1994 from $14.4 billion at September 30, 1994
and $15.6 billion at the end of 1993, largely due to lower
bond prices.
Chairman and Chief Executive Officer, John A. McNeice, Jr.
made these comments:
"Despite lower sales and lower assets under management, the
Company experienced satisfactory earnings in 1994, although
not at the same level experienced in 1993. In connection
with the pending merger with Liberty Financial, the
registration statement for the combined companies will be a
publicly available filing with the Securities and Exchange
Commission shortly."
- Financials To Follow -
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<TABLE>
THE COLONIAL GROUP, INC.
SUMMARY OF RESULTS OF OPERATIONS
(In thousands, except per share amounts)
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
------------------- ----------------------
1994 1993 1994 1993
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues $38,235 $42,386 $161,193 $150,767
Operating Expenses (a) 38,129 32,279 131,266 113,491
------- ------- -------- --------
Operating Income 106 10,107 29,927 37,276
Interest expense, net (1,143) (1,600) (6,491) (4,485)
------- ------- -------- --------
Income (Loss) before provision
for income taxes and cumulative
effect of a change in accounting
for income taxes (1,037) 8,507 23,436 32,791
Provision for income taxes 935 3,184 11,636 12,853
------- ------- -------- --------
Income (Loss) before cumulative
effect of a change in accounting
for income taxes (1,972) 5,323 11,800 19,938
Cumulative effect of a change in
accounting for income taxes --- --- --- 72
-------- -------- -------- --------
Net Income (Loss) (b) ($1,972) $5,323 $11,800 $20,010
======== ======== ======== ========
Net Income (Loss) per share (b) ($0.25) $0.69 $1.53 $2.65
======== ======== ======== ========
(a) 1994 fourth quarter operating expenses include non-recurring expense of $4,067 and
acceleration of stock option expense of $2,512 related to the planned merger with
Liberty Financial Companies, Inc. Operating expenses for the full year in 1994 include
non-recurring expense of $4,636 and acceleration of stock option expense of $2,512.
(b) The after tax effect of items described in Note (a) above was to reduce net income
for the fourth quarter and the full year in 1994 by $5,029 or $0.64 per share and
$5,457 or $0.70 per share, respectively.
</TABLE>
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SIGNATURES
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 hereunto duly authorized.
THE COLONIAL GROUP, INC.
Date: February 1, 1995 By: John A. McNeice, Jr.
Chairman of the Board
