UTG, Inc. Third Quarter Report

November 29, 2011



UTG, Inc. (OTCQB: UTGN.OB) reported negative revenues of $757 thousand for its third quarter ended September 30, 2011. The primary reason for the negative revenue number was a net investment loss of $4.1 million versus net investment income of $9.7 million during the same period in 2010. Due to this net investment loss, the company also reported a net loss of $4.7 million or ($1.23) per diluted share.

For the first nine months of 2011, UTG reported revenues decreased 32% to $19.3 million. The company reported a net loss of $71 thousand or ($0.02) per diluted share compared to net income of $6.2 million or $1.60 per diluted share during the same period in 2010. The lower revenue was primarily due to lower net investment income and lower premium and policy fees. The net loss was driven by lower investment income, lower premium and policy fees and higher overall expenses.

Investments make up 73% of the company’s total assets of which nearly 37% are in real estate related investments. UTG has $466.1 million in total assets and $386.3 million in total liabilities. Shareholders’ equity has increased 22.6% since the end of 2011 and stands at nearly $80 million.

Earlier this month, the company also announced a wholly owned subsidiary sold a portion of the 27,000 acres of timberland it owns in southern Kentucky. Of this acreage, 11,000 acres is owned in a 50% partnership with another entity. In total, 21,272 acres were sold for $18,570,456 of which the company’s subsidiary will receive a net amount of $13,109,000. UTG recorded a gain of approximately $4.1 million or $1.08 per share.


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