<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended March 31, 1995 Commission File Number 1-9828
GAINSCO, INC.
(Exact name of registrant as specified in its charter)
Texas 75-1617013
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
500 Commerce Street Fort Worth, Texas 76102
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (817) 336-2500
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 twelve (12) months, and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
As of March 31, 1995, there were 20,487,875 shares outstanding of the
registrant's Common Stock, $.10 par value.
<PAGE> 2
GAINSCO, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets as of March 31, 1995
(unaudited) and December 31, 1994 3
Consolidated Statements of Operations for the Three Months
Ended March 31, 1995 and 1994 (unaudited) 5
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1995 and 1994 (unaudited) 6
Notes to Consolidated Financial Statements
March 31, 1995 and 1994 (unaudited) 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. 15
SIGNATURE 16
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
GAINSCO, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31
1995 December 31
Assets (unaudited) 1994
------ ---------- --------------
<S> <C> <C>
Investments
Fixed maturities:
Bonds held to maturity, at amortized cost (fair
value: $101,419,086 - 1995, $121,900,391 - 1994) $ 101,938,592 123,643,375
Bonds available for sale, at fair value (Amortized cost:
$46,604,243 - 1995, $25,778,732 - 1994) 47,232,387 25,693,061
Certificates of deposit, at cost (which approximates
fair value) 570,000 570,000
Short-term investments, at cost (which approximates
fair value) 12,218,779 10,394,022
------------- ------------
Total investments 161,959,758 160,300,458
Cash 844,164 520,515
Accrued investment income 3,174,833 4,287,824
Premiums receivable (net of allowance for doubtful
accounts: $107,000 - 1995, $107,000 - 1994) 13,295,816 12,262,357
Reinsurance balances receivable 5,630,695 4,133,557
Ceded unpaid claims and claim adjustment expenses 20,879,936 19,972,288
Ceded unearned premiums 4,676,634 5,976,969
Deferred policy acquisition costs 10,286,145 9,830,543
Property and equipment (net of accumulated depreciation
and amortization: $3,389,890 - 1995, $3,202,644 -
1994) 6,308,598 6,336,010
Deferred Federal income taxes recoverable (note 1) 2,686,883 3,126,787
Management contract 1,875,070 1,887,570
Other assets 1,804,949 1,941,069
------------- -----------
Total assets $ 233,423,481 230,575,947
============= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
GAINSCO, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31
1995 December 31
Liabilities and Shareholders' Equity (unaudited) 1994
------------------------------------ ----------- ----------
<S> <C> <C>
Liabilities:
Unpaid claims and claim adjustment expenses $ 84,061,546 80,728,799
Unearned premiums 44,848,358 44,645,013
Commissions payable 601,139 2,191,619
Accounts payable 3,969,711 5,262,071
Reinsurance balances payable 3,943,337 6,003,867
Deferred revenue 642,740 420,408
Drafts payable 3,994,121 4,604,358
Note payable 3,500,000 3,500,000
Dividends payable (note 3) 208,138 195,095
Other liabilities 824,468 1,428,690
Current Federal income taxes payable (note 1) 1,126,985 49,460
----------- ------------
Total liabilities 147,720,543 149,029,380
----------- -----------
Shareholders' Equity (note 6):
Preferred stock ($100 par value, 10,000,000 shares
authorized, none issued) - -
Common stock ($.10 par value, 250,000,000 shares
authorized, 20,594,790 issued at March 31, 1995
and 19,611,368 issued at December 31, 1994) 2,059,479 1,961,137
Additional paid-in capital 78,158,545 69,671,214
Net unrealized gain (loss) on fixed maturities (note 1) 408,294 (55,686)
Retained earnings 6,089,212 10,982,494
Treasury stock (106,915 shares at March 31, 1995 and
101,824 shares at December 31, 1994) (1,012,592) (1,012,592)
------------ -----------
Total shareholders' equity 85,702,938 81,546,567
----------- -----------
Total liabilities and shareholders' equity $ 233,423,481 230,575,947
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
GAINSCO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended March 31
------------------------------------------
1995 1994
----------- ------------
<S> <C> <C>
Revenues:
Premiums earned (note 2) $ 22,417,241 20,029,560
Net investment income 1,914,202 1,559,887
Net realized gains (note 1) - 134,641
Insurance services 478,936 487,171
------------ ----------
Total revenues 24,810,379 22,211,259
------------ ----------
Expenses:
Claims and claim adjustment expenses
(note 2) 11,448,553 9,925,255
Commissions 5,044,332 4,338,599
Change in deferred policy acquisition costs (455,602) (102,491)
Underwriting and operating expenses 3,536,116 3,541,616
------------ ----------
Total expenses 19,573,399 17,702,979
------------ ----------
Income before Federal income taxes 5,236,980 4,508,280
Federal income taxes:
Current expense 1,153,512 1,266,065
Deferred expense (benefit) 190,069 (282,586)
------------ ----------
Total taxes 1,343,581 983,479
------------ ----------
Net income $ 3,893,399 3,524,801
============ ==========
Net income per share .19 .17
=== ===
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
GAINSCO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended March 31
---------------------------------
1995 1994
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 3,893,399 3,524,801
Adjustments to reconcile net income to cash provided by
operating activities:
Depreciation and amortization 1,089,695 1,254,838
Change in deferred Federal income taxes recoverable 190,069 (282,192)
Change in accrued investment income 1,112,991 1,206,317
Change in premiums receivable (1,033,459) (541,160)
Change in reinsurance balances receivable (1,497,138) (225,597)
Change in ceded unpaid claims and claim adjustment
expenses (907,648) 371,650
Change in ceded unearned premiums 1,300,335 (265,826)
Change in deferred policy acquisition costs (455,602) (102,491)
Change in management contract 12,500 12,500
Change in other assets 136,120 156,701
Change in unpaid claims and claim adjustment
expenses 3,332,747 828,444
Change in unearned premiums 203,345 918,226
Change in commissions payable (1,590,480) (1,007,741)
Change in accounts payable (1,292,360) (1,008,093)
Change in reinsurance balances payable (2,060,530) (154,267)
Change in deferred revenue 222,332 264,351
Change in drafts payable (610,237) (1,383,820)
Change in other liabilities (604,222) (291,922)
Change in current Federal income taxes payable 1,077,525 1,091,883
----------- ---------
Net cash provided by operating activities $ 2,519,382 4,366,602
----------- ---------
</TABLE>
See accompanying notes to consolidated financial statements.
(continued)
6
<PAGE> 7
GAINSCO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended March 31
------------------------------------
1995 1994
---------- ----------
<S> <C> <C>
Cash flows from investing activities:
Bonds held to maturity:
Matured $ 20,958,800 900,000
Bonds available for sale:
Sold - 6,378,737
Matured - 5,608,000
Purchased (20,981,977) -
Property and equipment purchased (159,834) (203,342)
Net change in short-term investments (1,824,757) (17,121,514)
------------- ------------
Net cash used for investing activities (2,007,768) (4,438,119)
------------- ------------
Cash flows from financing activities:
Cash dividends paid (195,095) (175,585)
Proceeds from exercise of stock options 7,130 -
Treasury stock acquired - (154)
------------- ------------
Net cash used by financing activities (187,965) (175,739)
------------- ------------
Net increase (decrease) in cash 323,649 (247,256)
Cash at beginning of period 520,515 605,450
------------- ------------
Cash at end of period $ 844,164 358,194
============= ============
</TABLE>
See accompanying notes to consolidated financial statements.
7
<PAGE> 8
GAINSCO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(1) Summary of Accounting Policies
(a) Basis of Consolidation
In the opinion of management, the accompanying consolidated
financial statements contain all adjustments, consisting only
of normal recurring adjustments, necessary to present fairly
the financial position of GAINSCO, INC. and subsidiaries (the
"Company") as of March 31, 1995, the results of operations and
the statements of cash flows for the three months ended March
31, 1995 and 1994, on the basis of generally accepted
accounting principles. The December 31, 1994 balance sheet
included herein is derived from the consolidated financial
statements included in the Company's 1994 Annual Report to
Shareholders.
Reference is made to the Company's annual consolidated
financial statements for the year ended December 31, 1994 for
a description of all other accounting policies.
(b) Investments
Bonds are stated at amortized cost, bonds available for sale
are stated at fair value. Short-term investments are stated
at cost. The "specific identification" method is used to
determine costs of investments sold. Since investments not
available for sale are generally held until maturity or
recovery of fair value, provisions for possible losses are
recorded only when the values have experienced impairment
considered "other than temporary". The bonds available for
sale had an unrealized gain of $408,294 at March 31, 1995, net
of the deferred tax benefit of $219,850, and an unrealized
loss at December 31, 1994 of $85,671 net of the deferred tax
expense of $29,985.
Proceeds from the sale of debt securities totalled $6,378,737
for the three months ended March 31, 1994. There were no
sales of debt securities during the three months ended March
31, 1995. Realized gains were $134,641 for the three months
ended March 31, 1994. There were no realized gains for the
three months ended March 31, 1995 and no realized losses for
the three months ended March 31, 1995 and 1994.
(c) Federal Income Taxes
Deferred federal income taxes recoverable consisted of a
"current" recoverable of $562,004 and $1,002,754 at March 31,
1995 and December 31, 1994, respectively and a "noncurrent"
recoverable of $2,124,879 and $2,012,916 at March 31, 1995 and
December 31, 1994, respectively.
8
<PAGE> 9
GAINSCO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The Company paid income taxes of $75,986 and $173,787 during
the three months ended March 31, 1995 and 1994, respectively.
(d) Earnings Per Share
The computation of earnings per share, as adjusted, is based
on the weighted average number of common shares outstanding,
including common stock equivalents. For the three months
ended March 31, 1995 and 1994, the weighted average number of
common shares outstanding was 20,487,875 and 20,325,838
respectively, and common stock equivalents were 293,719 and
400,546, respectively. All computations give retroactive
effect for stock dividends with record dates of March 31, 1995
and prior.
(2) Reinsurance
The amounts deducted in the Consolidated Statements of Operations for
reinsurance ceded for the three months ended March 31, 1995 and 1994,
respectively, are set forth in the following table.
Premiums and claims ceded to the commercial automobile plans of
Arkansas, Louisiana, Mississippi and Pennsylvania are designated as
"plan servicing".
<TABLE>
<CAPTION>
Three months
ended March 31
--------------------------------------------------
1995 1994
------------- -----------
<S> <C> <C>
Premiums earned $ 1,779,568 1,908,006
Premiums earned - plan
servicing $ 1,243,270 1,027,408
Claims and claim
adjustment expenses $ 3,794,628 1,835,008
Claims and claim
adjustment expenses -
plan servicing $ 907,517 (133,530)
</TABLE>
9
<PAGE> 10
GAINSCO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
The amounts included in the Consolidated Balance Sheets for
reinsurance ceded to the commercial automobile plans of Arkansas,
Louisiana, Mississippi and Pennsylvania as of March 31, 1995 and
December 31, 1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
Unearned premiums $ 2,393,140 2,764,271
Unpaid claims and claim
adjustment expenses $ 9,956,610 8,103,949
</TABLE>
The Company remains directly liable to its policyholders for all
policy obligations and the reinsuring companies are obligated to the
Company to the extent of the reinsured portion of the risks. The
Company does not have a provision for uncollectible reinsurance and
does not feel one is warranted since all of the reinsurers on its
working treaties are rated "A" or better by A.M. Best Company and/or
the Company is adequately collateralized on existing and anticipated
claim recoveries.
The Company has not and does not intend to utilize retrospectively
rated reinsurance contracts with indefinite renewal terms. This form
of reinsurance is commonly known as a "funded cover". Under a funded
cover reinsurance arrangement, an insurance company essentially
deposits money with a reinsurer to help cover future losses and
records the "deposit" as an expense instead of as an asset; or, the
insurance company can borrow from a reinsurer recording the "loan" as
income instead of as a liability with the future "loan" payments
recorded as expense when the payments are made.
(3) Shareholders' Equity
As of March 31, 1995 there were 404,329 options, at an average
exercise price of $2.86 per share, that have been granted to officers
and directors of the Company under the 1990 Stock Option Plan.
The Company's policy is to pay a quarterly cash dividend of $.01 per
share every quarter until further action is taken by the Board of
Directors. A cash dividend of $204,879 was paid on April 14, 1995.
The Company also paid a 5% stock dividend on April 14, 1995 to
shareholders of record on March 31, 1995. This transaction was
recorded in the accompanying consolidated financial statements.
(4) Subsequent Event
On April 27, 1995, the grant of options reported to have occurred on
March 23, 1995, was rescinded by agreement between the Company and the
optionees. The Board of Directors intends to amend the GAINSCO, INC.
1995 Stock Option Plan to comply with Section 162(m) of the Internal
Revenue Code.
10
<PAGE> 11
GAINSCO, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Gross premiums written for the first quarter of 1995 were approximately
$24,525,000 versus $22,295,000 for the comparable period of 1994 representing a
10% increase. The persistency rate increased from 38% in 1994 to 46% in 1995.
The following table presents, for each major product line, gross premiums
written for the periods indicated.
<TABLE>
<CAPTION>
Three months
ended March 31
---------------------------------------------------------------------------
1995 1994
------------------------------ ------------------------------
(Amounts in thousands)
<S> <C> <C> <C> <C>
Commercial auto $ 14,478 59% $ 13,986 63%
Auto garage 5,589 23% 3,757 17%
General liability 4,135 17% 4,038 18%
Other lines 323 1% 514 2%
-------- --- -------- ---
Total $ 24,525 100% $ 22,295 100%
======== === ======== ===
</TABLE>
For the first quarter of 1995 commercial auto is up 3%, auto garage is up 49%
and general liability is up 2%. Increased competition on larger accounts in
the Texas commercial auto market accounts for the modest growth in this line,
renewals though are up 20%. The significant growth in auto garage is
attributable to the exiting of competition from the Florida and Missouri
markets, successful marketing efforts in Kentucky and Pennsylvania, and a 24%
increase in renewals. The small growth in the general liability product line
is a result of increased competition on larger accounts in Texas and Louisiana,
however renewals are up 20%. For the first quarter of 1995, gross premium
written percentages by state/product line are as follows: Texas commercial
auto (27%), Texas general liability (7%), Pennsylvania commercial auto (7%),
Kentucky commercial auto (5%) and Florida auto garage (5%) with no other
state/product line comprising 5% or more. Premiums earned increased 12%
primarily as a result of the continued increase in premium writings.
Net investment income increased from $1,559,887 in the first quarter of 1994 to
$1,914,202 in the first quarter of 1995 as a result of growth in the portfolio.
Because of the Company's profitability in the underwriting operations, the
Company achieves the highest after tax net income by investing predominantly in
tax-exempt securities. At March 31, 1995, 86% of the Company's investments
were in investment grade tax-exempt bonds with an average maturity of
approximately 3.2 years. Since the majority of the Company's investments are
tax-exempt, the yields appear lower than those of the industry; however, the
industry as a whole has a significantly greater percentage of its investments
in taxable securities with substantially longer maturities. On a taxable
equivalent basis the return on average investments is 6.6% for 1995 versus 6.2%
for 1994. The increase is attributable to the general increase in interest
rates and extending the average maturity to 3.2 years. The Company has the
ability to hold its bond securities until
11
<PAGE> 12
their maturity date. The Company does not actively trade its bonds, however,
it does classify certain bond securities as available for sale. At March 31,
1995, approximately 7% of the Company's investments were in U.S. Treasury
securities and 7% were in short-term money market funds. The Company has not
invested and does not intend to invest in derivatives or high-yield ("junk")
securities, nor in equity securities of "junk" debt issuers. The Company does
not have any non-performing fixed maturity securities.
Net realized capital gains recorded in the 1994 period were the result of the
Company selling bonds in response to a change in insurance regulation. As
stated previously, the Company's intent is, generally, to hold its bonds to
maturity.
Other income in the first quarter of 1995 was $8,235 below the first quarter of
1994. The following table presents the components.
<TABLE>
<CAPTION>
Three months
ended March 31
---------------------------------------------
1995 1994
-------- -------
<S> <C> <C>
Computer software $ 96,553 184,864
Premium finance 53,537 30,766
Plan servicing 322,890 259,194
Other income 5,956 12,347
--------- --------
Total $ 478,936 487,171
========= =======
</TABLE>
Revenues in the computer software operation are 48% below the comparable 1994
period. Revenues are expected to show moderate increases for the year with
profitable results.
Revenues for the premium finance operation in the first quarter of 1995 are 74%
above the comparable 1994 period. Amounts financed came in at $1,110,000
versus $564,000 for the comparable prior year period with growth in each of the
product lines. Premium finance notes receivable were approximately $1,251,000
at March 31, 1995 versus $706,000 at March 31, 1994.
Plan servicing revenues from commercial automobile plans increased 25% from the
comparable 1994 period with the Pennsylvania plan accounting for most of the
growth. The Company should begin earning revenue from the California plan in
the second quarter of 1995. The Company is continuing to pursue management
contracts with other states to administer their commercial automobile plans.
Claims and claim adjustment expenses (C & CAE) increased $1,523,298 in the
first quarter of 1995 from the first quarter of 1994. The C & CAE ratio was
51.1% in the first quarter of 1995 versus 49.6% in the first quarter of 1994,
and was within the Company's expected range of 50-55%.
The ratio of commissions to gross premiums written is in a 20-21% range for
both quarterly periods presented. Commissions increased in the 1995 period
from the 1994 period largely as a result of the growth in gross premiums
written, and to a lesser extent as a result of commission income from the 1994
5% quota share treaty reducing commission expense in 1994. The ratio of
commissions to premiums
12
<PAGE> 13
earned is 23% for the first quarter of 1995 and 22% for the comparable 1994
period. The increase in the ratio is a result of commission income from the
1994 5% quota share treaty reducing commission expense a smaller degree in 1995
than in 1994. The Company did not renew the 5% quota share treaty in 1995.
The change in deferred policy acquisition costs (DAC) resulted in a net
increase to income of $455,602 for the first quarter of 1995, versus a net
increase of $102,491 for the first quarter of 1994. The change in the amount
of the increase in DAC between comparable periods is directly related to the
rate at which unearned premiums are growing as a result of the growth rate of
premium writings. Since DAC (asset) is a function of unearned premiums
(liability) the change in unearned premiums would correlate to the change in
DAC. The ratio of DAC to net unearned premiums was 26% and 25% at March 31,
1995 and 1994, respectively.
Underwriting and operating expenses decreased $5,500 in the first quarter of
1995 from the first quarter of 1994 due to decreases in the variable expenses
of the insurance services operations and a decrease in personnel count.
The effective tax rate for the Company was 26% for the first quarter of 1995
versus 22% for the comparable 1994 quarter. The major reason for the lower
rate in 1994 was due to a tax benefit generated from the exercise of stock
options by insiders during the first quarter of 1994. This is a permanent tax
difference which is deductible for tax but not for book purposes.
Operating income (income before tax, excluding net realized capital gains) is
20% above the first quarter of 1994. The GAAP combined ratio for the insurance
operations was 84.1% for the first quarter of 1995 versus 85.7% for 1994.
Liquidity and Capital Resources
The primary sources of the Company's liquidity are funds generated from
insurance premiums, net investment income and maturing investments. The
short-term investments and cash are intended to provide adequate funds to pay
claims without selling the fixed maturity investments. At March 31, 1995 the
Company held short-term investments and cash of $13,062,943 which the Company
believes is adequate liquidity for the payment of claims and other short-term
commitments.
With regard to long term liquidity, the average duration of the investment
portfolio is approximately 2.8 years which closely matches the average payout
period of claims. The fair value of the fixed maturity portfolio at March 31,
1995 was $108,637 above amortized cost.
The increase in investments is attributable to the cash generated from
operating activities. Accrued investment income is lower at March, 1995, than
it was at December, 1994, because the semi-annual interest payment dates of the
securities in the portfolio are skewed toward January and July. The increase
in premiums receivable is a result of heavier premium writings in March, 1995
than in December, 1994. Reinsurance balances receivable increased primarily
due to the settlement of some large claims which were ceded to the Company's
excess casualty treaty. Ceded unearned premiums have decreased primarily
because of the nonrenewal of the 5% quota share treaty. Deferred Federal
income taxes recoverable decreased as a result of the increase in unpaid claims
and claim adjustment expenses, unearned premiums and deferred income.
13
<PAGE> 14
Unpaid claims and claim adjustment expenses and unearned premiums have
increased, as would be expected, with the Company's increased writings.
Commissions payable have decreased as a result of the annual contingent
commission payments to the general agents in the first quarter of 1995.
Accounts payable have decreased primarily due to annual payments on 1994
contingent incentives. Reinsurance balances payable have decreased because of
the decrease in plan servicing premiums written. Deferred revenue increased
from December, 1994 because the annual maintenance purchased by the Company's
software customers is paid in January and earned throughout the year. Drafts
payable decreased because a large amount of drafts were issued late in the
fourth quarter of 1994 and cleared in the first quarter of 1995. Other
liabilities decreased primarily as a result of contributions paid to the profit
sharing plan during the first quarter of 1995. Current Federal income taxes
payable increased because estimated tax payments for the first quarter are paid
in April, whereas estimated tax payments for the fourth quarter are paid in
December. The Company's liquidity position remains strong as a result of cash
flows from underwriting and investment activities.
The increase in common stock is largely the result of the 5% stock dividend
paid on April 14, 1995. This also accounts for the increase in additional
paid-in capital and the decrease in retained earnings. Net unrealized gains on
fixed maturities of $408,294 were recorded during the first quarter of 1995 as
a result of an increase in the fair value of the bonds available for sale.
The Company is not aware of any current recommendations by the regulatory
authorities, which if implemented, would have a material effect on the
Company's liquidity, capital resources or results of operations.
14
<PAGE> 15
PART II. OTHER INFORMATION
GAINSCO, INC. AND SUBSIDIARIES
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The statement re computation of per share earnings is included
in the notes to consolidated financial statements.
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter.
15
<PAGE> 16
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 to sign on behalf of the Registrant as
well as in his capacity as Chief Financial Officer.
GAINSCO, INC.
Date: May 11, 1995
By /s/ Daniel J. Coots
---------------------------------------
Daniel J. Coots
Senior Vice President, Treasurer and
Chief Financial Officer
16
<PAGE> 17
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
- - - - ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<DEBT-HELD-FOR-SALE> 47,232,387
<DEBT-CARRYING-VALUE> 101,938,592
<DEBT-MARKET-VALUE> 101,419,086
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 161,959,758
<CASH> 844,164
<RECOVER-REINSURE> 5,630,695
<DEFERRED-ACQUISITION> 10,286,145
<TOTAL-ASSETS> 233,423,481
<POLICY-LOSSES> 84,061,546
<UNEARNED-PREMIUMS> 44,848,358
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 3,500,000
<COMMON> 2,059,479
0
0
<OTHER-SE> 84,656,051
<TOTAL-LIABILITY-AND-EQUITY> 233,423,481
22,417,241
<INVESTMENT-INCOME> 1,914,202
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 478,936
<BENEFITS> 11,448,553
<UNDERWRITING-AMORTIZATION> (455,602)
<UNDERWRITING-OTHER> 3,536,116
<INCOME-PRETAX> 5,236,980
<INCOME-TAX> 1,343,581
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,893,399
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
