-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CWXsl/4x0OID0kpItP5oNmQyxzgRGSLyI3RrTFmAZL3CgJMrk4BHeoA2g2ZlkWKG LEMGet0pB1csWwAu67XmHw== 0000950144-03-013042.txt : 20031117 0000950144-03-013042.hdr.sgml : 20031117 20031117130427 ACCESSION NUMBER: 0000950144-03-013042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031114 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031117 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBAL PREFERRED HOLDINGS INC CENTRAL INDEX KEY: 0000947716 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 582179041 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23637 FILM NUMBER: 031007327 BUSINESS ADDRESS: STREET 1: 6455 EAST JOHNS CROSSING STREET 2: SUITE 402 CITY: DULUTH STATE: GA ZIP: 30097 BUSINESS PHONE: 7702483311 MAIL ADDRESS: STREET 1: 6455 EAST JOHNS CROSSING STREET 2: SUITE 402 CITY: DULUTH STATE: GA ZIP: 30097 FORMER COMPANY: FORMER CONFORMED NAME: WMA CORP DATE OF NAME CHANGE: 19980519 FORMER COMPANY: FORMER CONFORMED NAME: WMA INTERNATIONAL CORP DATE OF NAME CHANGE: 19950707 8-K 1 g85996e8vk.htm GLOBAL PREFERRED HOLDINGS, INC. GLOBAL PREFERRED HOLDINGS, INC.
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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) November 14, 2003

Global Preferred Holdings, Inc.

(Exact Name of Registrant as Specified in Charter)
         
Delaware
(State or other jurisdiction
of incorporation)		   0-23637
(Commission File Number) 		  58-2179041
(I.R.S. Employer Identification No.)

6455 East Johns Crossing
Suite 402
Duluth, GA 30097
(Address of principal executive offices)

(770) 248-3311
(Registrant’s telephone number, including area code)

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
SIGNATURE
EX-99.1 PRESS RELEASE DATED NOVEMBER 14, 2003

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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

      (c) Exhibits

           99.1 Press Release dated November 14, 2003

ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 14, 2003, Global Preferred Holdings, Inc. (“Global Preferred”) announced its consolidated financial results for the quarter ended September 30, 2003. A copy of Global Preferred’s earnings press release is furnished as Exhibit 99.1 to this report on Form 8-K.

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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.

         
Date: November 17, 2003   Global Preferred Holdings, Inc.
         
    By: /s/ Bradley E. Barks    
   
   
    Name: Bradley E. Barks    
    Title: Chief Financial Officer    

EX-99.1 3 g85996exv99w1.txt EX-99.1 PRESS RELEASE DATED NOVEMBER 14, 2003 - -------------------------------------------------------------------------------- PRESS RELEASE PRESS RELEASE PRESS RELEASE PRESS RELEASE - -------------------------------------------------------------------------------- GLOBAL PREFERRED HOLDINGS, INC. FOR IMMEDIATE RELEASE CONTACT: Bradley Barks PHONE: 770/248-3531 www.gphre.com - -------------------------------------------------------------------------------- GLOBAL PREFERRED HOLDINGS, INC. ANNOUNCES THIRD QUARTER RESULTS ATLANTA November 14, 2003 - Global Preferred Holdings, Inc. reported net income of $452,000, or $0.11 per share, for the quarter ended September 30, 2003. This represents an increase of $1.5 million from the after tax loss of $1.1 million, or $0.26 per share, in the same period a year ago. Net income for the third quarter of 2002 included a one-time $1.1 million charge, net of tax, for the cost of the Company's withdrawn offering and additional amortization of deferred acquisition costs of $1.1 million, net of tax, primarily resulting from increased surrender activity. Total revenues for the quarter ended September 30, 2003 were $7.6 million compared to $8.1 million in the same quarter a year earlier, a decrease of $458,000 or 6%. This reflected a decrease in deferred sales charge revenue resulting from lower policy surrender activity, fewer policies in force as compared to a year ago and the shorter effective maturity of the Company's investment portfolio. Death claims were $78,000, or 4%, higher in third quarter of 2003 compared to the same quarter in 2002 due to normal fluctuations inherent in death claim experience. Operating expenses decreased by $49,000, or 6%, for the quarter ended September 30, 2003 compared to the same period in 2002. "Markets stabilized this quarter at levels not reached in over a year," commented Ed McKernan, president and CEO of Global Preferred. "We were disappointed that in the face of improving markets, the combination of the effect of prior surrender activity and death claims in excess of historical levels put a drag on our earnings. On the positive side, we saw operating expenses decrease for the quarter from previous levels and surrender experience improve. Additionally, while our investment income has 1 declined because we are invested in shorter duration assets, this strategy has reduced our exposure to unrealized capital losses caused by recent increases in interest rates. Overall, we are confident that given continued market improvements, we can manage the company to increasing profitability." ABOUT GLOBAL PREFERRED HOLDINGS, INC. Global Preferred Holdings, Inc., whose executive offices are located in Duluth, Georgia, is the parent of Global Preferred Re Limited, a Bermuda life reinsurer. As of September 30, 2003, Global Preferred Re reinsured 293,000 life insurance policies, riders and annuity contracts which accounted for life insurance policies with an aggregate face value of $7.8 billion and aggregate annuity contract benefits of $237 million. FORWARD-LOOKING STATEMENTS Certain statements in this news release may contain forward-looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. We have described some important factors that could cause our actual results to differ materially from our expectations in "Factors that may Affect Future Results of Operations" included as Exhibit 99.3 in our Annual Report on Form 10-K for the year ended December 31, 2002. You should carefully review these risks and additional risks described in other documents we file from time to time with the Securities and Exchange Commission, including quarterly reports on the Form 10-Q. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. - -------------------------------------------------------------------------------- PRESS RELEASE PRESS RELEASE PRESS RELEASE PRESS RELEASE - -------------------------------------------------------------------------------- 2 GLOBAL PREFERRED HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 31, SEPTEMBER 30, 2002 2003 ------------ ------------ Assets Fixed maturity securities - available for sale (amortized cost of $2,673,762 and $7,045,446 for 2002 and 2003, respectively) ............................. $ 2,798,190 $ 7,308,796 Equity securities - available for sale (cost of $2,000,000 for 2003)...................... -- 2,002,085 Cash and cash equivalents ................................................................ 15,858,256 17,818,312 Investment income due and accrued ........................................................ 80,882 90,451 Accounts receivable ...................................................................... 215,500 11,164 Reinsurance balances receivable .......................................................... 3,078,949 2,349,260 Reinsured policy loans ................................................................... 1,115,994 1,214,128 Deferred acquisition costs ............................................................... 49,850,309 46,676,951 Prepaid expenses ......................................................................... 888,662 635,480 Current income tax recoverable ........................................................... 172,500 93,976 Fixed assets (net of accumulated depreciation of $240,439 and $312,171 for 2002 and 2003, respectively) ........................................... 215,095 153,988 ------------ ------------ Total assets ........................................................... $ 74,274,337 $ 78,354,591 ============ ============ Liabilities and Stockholders' Equity Liabilities: Future policy benefits .............................................................. $ 16,923,775 $ 19,071,441 Reinsurance balances payable ........................................................ 42,130 -- Accrued expenses and accounts payable ............................................... 473,636 435,004 Accrued interest payable ............................................................ 158,219 63,699 Short term debt ..................................................................... -- 5,000,000 Long term debt ...................................................................... 5,000,000 -- Deferred tax liability .............................................................. 8,354,722 9,019,599 ------------ ------------ Total liabilities ...................................................... 30,952,482 33,589,743 ------------ ------------ Stockholders' equity: Common stock, par value $.001, 50,000,000 shares and 15,000,000 shares authorized for 2002 and 2003, respectively; 4,149,074 shares issued for 2002 and 2003 ........................................................ 4,149 4,149 Additional paid-in capital .......................................................... 23,326,026 23,326,026 Accumulated other comprehensive income .............................................. 82,125 175,187 Retained earnings ................................................................... 19,958,822 21,308,753 Treasury stock, at cost (7,390 shares) .............................................. (49,267) (49,267) ------------ ------------ Total stockholders' equity ............................................. 43,321,855 44,764,848 ------------ ------------ Total liabilities and stockholders' equity ............................. $ 74,274,337 $ 78,354,591 ============ ============
3 GLOBAL PREFERRED HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------------------- ------------------------------- 2002 2003 2002 2003 ------------ ------------ ------------ ------------ Revenues: Premiums ..................................... $ 4,484,848 $ 4,331,649 $ 13,574,548 $ 13,083,712 Reinsured policy revenues .................... 3,441,907 3,200,173 10,596,850 9,690,225 Net investment income ........................ 168,074 95,206 570,455 266,094 Net realized gain on investments ............. -- -- 7,338 -- Other income ................................. -- 9,497 -- 15,007 ------------ ------------ ------------ ------------ Total revenues ........................... 8,094,829 7,636,525 24,749,191 23,055,038 ------------ ------------ ------------ ------------ Benefits and expenses: Benefits, claims and settlement expenses ..... 2,134,758 2,212,743 6,806,589 6,943,333 Change in future policy benefits ............. 353,099 308,616 1,210,776 815,622 Reinsurance expense allowances, net .......... 2,100,972 2,001,759 6,435,428 6,158,269 Amortization of deferred acquisition costs ... 2,483,943 1,566,410 4,674,447 4,222,651 Operating expenses ........................... 814,119 765,175 2,235,574 2,587,044 Costs of withdrawn offering .................. 1,712,000 -- 1,712,000 -- Interest expense ............................. 94,521 94,521 285,596 280,479 ------------ ------------ ------------ ------------ Total benefits and expenses .............. 9,693,412 6,949,224 23,360,410 21,007,398 ------------ ------------ ------------ ------------ Income (Loss) before income tax .......... (1,598,583) 687,301 1,388,781 2,047,640 Income tax benefit (expense) ...................... 535,347 (235,213) (476,790) (697,709) ------------ ------------ ------------ ------------ Net income (loss) ........................ $ (1,063,236) $ 452,088 $ 911,991 $ 1,349,931 ============ ============ ============ ============ Basic earnings (loss) per share ................... $ (0.26) $ 0.11 $ 0.22 $ 0.33 ============ ============ ============ ============ Diluted earnings (loss) per share ................. $ (0.26) $ 0.11 $ 0.22 $ 0.33 ============ ============ ============ ============ Weighted-average common shares outstanding ........ 4,141,684 4,141,684 4,141,684 4,141,684 ============ ============ ============ ============ Total weighted-average common and common equivalent shares outstanding .............................. 4,141,684 4,141,684 4,141,684 4,141,684 ============ ============ ============ ============
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