Exhibit 99.1
[LOGO] The MONY Group Inc. News Release
THE MONY GROUP 1740 Broadway MEDIA CONTACTS:
New York, NY 10019 Doug Myers 212 708 2472
212 708 2472 Christopher Breslin 212 708 2435
212 708 2399 Fax INVESTOR CONTACT:
Jay Davis 212 708 2917
The MONY Group Reports Operating Income of $0.25 Per Share
Excluding Venture Capital Results and One-Time Charges
NEW YORK (August 6, 2002) - The MONY Group Inc. (NYSE: MNY) today reported
operating income for the quarter ended June 30, 2002 of $12 million or $0.25 per
share before a venture capital loss and one-time charges. After the venture
capital loss of $3 million or $0.06 per share and interest and litigation fees
related to a dispute on the sale of real estate in 1999/1/ of $4.5 million or
$0.10 per share, operating income was $4.5 million or $0.09 per share/2/.
The company had a net loss for the quarter of $11 million or $0.23 per share
after net realized losses on investments of $15.5 million or $0.32 per share.
Net realized losses on investments include $4.4 million or $0.09 per share
related to the real estate litigation described above and $13.4 million or $0.28
per share related primarily to bond impairments.
"While the level of our earnings was impacted by the volatile equity markets,
sales across many of our businesses increased," said Michael I. Roth, chairman
and CEO, The MONY Group Inc. "We also had positive flows in mutual funds and
annuities, career agency productivity continues to be strong, operating
efficiencies continue to improve and we are aggressively managing expenses."
/1/ As per a court decision, the company was required to pay a former joint
venture partner some of the proceeds distributed to the company from the sale of
the joint venture's real estate holding in 1999. MONY intends to appeal this
decision. The total loss recognized from this decision was $8.9 million or $0.19
per share - $4.5 million or $0.10 per share is recorded in operating earnings
and $4.4 million or $0.09 per share is recorded in net realized losses on
investment.
/2/ Per share amounts for operating income and the one-time charge for interest
and litigation fees are different due to rounding.
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"The need for financial advisors who help customers plan for the long-term is
more evident than ever as the equity markets continue to fluctuate," added Mr.
Roth. "This is exactly what we offer at MONY through our broad distribution
channels, diverse product and service mix, focus on quality and integrity, and
160-year history."
Second Quarter 2001
For the second quarter of 2001, the company reported operating income of $17.6
million or $0.35 per share before venture capital results. After a $4.1 million
or $0.08 per share after tax gain from the company's venture capital portfolio,
operating income was $21.7 million or $0.43 per share. Net income was $22.3
million or $0.44 per share during the second quarter of 2001 after realized
gains from investments of $600,000 or $0.01 per share.
First-Half Results
Operating income for the six months ended June 30, 2002 was $23.9 million or
$0.48 per share before venture capital results and one-time charges. After a
venture capital gain of $200,000 or $0.01 per share and $4.5 million or $0.09
per share in fees and interest related to litigation, operating income was $19.6
million or $0.40 per share. The company reported net income of $3.3 million or
$0.07 per share for the first six months of 2002 after realized losses on
investments of $16.3 million or $0.33 per share.
Operating income for the six months ended June 30, 2001 was $32.4 million or
$0.64 per share before venture capital results. After a $1 million or $0.02 per
share after tax gain from the company's venture capital portfolio, operating
income was $33.4 million or $0.66 per share for the period. Net income was $35.6
million or $0.70 per share for the first six months of 2001 after $2.2 million
or $0.04 per share in net realized investment gains for the period.
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An earnings summary is as follows:
($ million except share data and per share amount)
Three Months Three Months Six Months Six Months
Ended June 30, Ended June 30, Ended June 30, Ended June 30,
2002 2001 2002 2001
Operating Income Excluding
Venture Capital and
Litigation Related Charges $ 12.0 $17.6 $23.9 $32.4
Venture Capital Income
(losses) (3.0) 4.1 0.2 1.0
Litigation Related Charges (4.5) - (4.5) -
---- - ---- -
Operating Income 4.5 21.7 19.6 33.4
=== ==== ==== ====
Realized (Losses)/Gains from
Investments 15.5 0.6 (16.3) 2.2
Net (Loss) Income $(11.0) $22.3 $ 3.3 $35.6
====== ===== ===== =====
Per Share Amounts
Operating Income Before
Venture Capital and Litigation
Related Charges $ 0.25 $0.35 $0.48 $0.64
Venture Capital Income
(losses) (0.06) 0.08 0.01 0.02
Litigation Related Charges (0.10) - (0.09) -
----- - ----- -
Operating Income 0.09 0.43 0.40 0.66
---- ==== ==== ====
Realized (Losses)/Gains from
Investments (0.32) 0.01 (0.33) 0.04
----
Net (Loss) Income $(0.23) $0.44 $0.07 $0.70
====== ===== ===== =====
Share Data (see Note 1):
Weighted-average Shares
Outstanding 47,994,628 49,363,512 48,003,420 49,044,496
========== ========== ========== ==========
Plus: Incremental Shares
from Assumed Conversion of
Dilutive Securities - 1,549,587 1,667,333 1,580,133
= ========= ========= =========
Weighted-average Shares
Used in Per-Share
Calculations 47,994,628 50,913,099 49,670,753 50,624,629
========== ========== ========== ==========
Note 1: 1,597,371 incremental shares from the assumed conversion of dilutive
securities were not included in the computation of per share amounts for the
three-month period ended June 30, 2002 because their inclusion would be
anti-dilutive.
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Highlights include:
.. The per-person productivity of MONY Life's career agency financial
professionals increased by almost 30 percent year-to-date. This productivity
increase follows the company's reorganization and reflects the improvements
made to this streamlined distribution channel.
.. Synergies between Advest and MONY member companies continued to broaden.
During the first six months of the year, MONY career financial professionals
opened 244 client wrap accounts offered through Advest, representing
$36 million in assets. In addition, Advest sold $17 million in Enterprise
mutual funds over the first half of the year.
.. Enterprise Capital Management, Inc. entered into an agreement with the state
of Texas to manage, distribute and market the state's 529 college savings
plan. This plan will be available nationwide late in the third quarter of
2002.
.. The Annuities Division of MONY Life Insurance Company introduced a fixed
annuity product late in the second quarter. This new product follows the
introduction of a new variable annuity in early 2002 that resulted in a 30
percent increase in variable annuity sales.
.. The Life Insurance Division of MONY Life Insurance Company opened a new
underwriting operation that focuses on the unique needs of brokerage general
agents and their customers as part of the business's efforts to compete in the
brokerage marketplace.
.. Boston Advisors, Inc., a wholly owned subsidiary of The Advest Group, Inc.,
closed its acquisition of substantially all of the assets of Babson-United
Investment Advisors, Inc., a registered investment advisory firm and
subsidiary of Babson-United. Boston Advisors now has 20 investment
professionals and approximately $3.5 billion in assets under management. The
addition of Babson-United allows Boston Advisors to grow its fee-based
business and gain greater critical mass.
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.. As of June 30, 2002, book value was $40.93 per share (excluding accumulated
comprehensive income).
.. The company continued its stock repurchase program through the purchase of
218,000 shares during the quarter. The company has repurchased 1.6 million of
the 2.5 million shares available in the company's second stock repurchase
program that was introduced in 2001. The average purchase price was $34.
Business Segments
Protection Segment
Through its protection segment, The MONY Group sells a wide range of life
insurance products (including whole life, term, universal, variable universal,
survivorship universal, last survivor variable universal, and group universal
life) to higher-income individuals, particularly small business owners, family
builders and pre-retirees as well as corporations through its U.S. Financial
Life Insurance Company (USFL) and MONY Life Insurance Company subsidiaries.
Total new annualized and single life insurance premiums increased to $61 million
during the second quarter of 2002 from $48 million during the second quarter of
2001. Sales increased to $110 million for the first half of 2002 from $97
million during the first half of 2001.
USFL sales increased quarter over quarter due to greater market penetration.
Sales were $15 million for the second quarter of 2002. Eighty-two percent of
USFL sales were in recurring premium resulting in higher income for the company.
For the comparable 2001 period, sales were $13 million.
Sales of corporate-owned life insurance (COLI) and bank-owned life insurance
(BOLI) increased to $28 million during the second quarter of 2002 from $13
million during the second quarter of 2001. The increase in sales was due to
strong BOLI sales as well as the introduction of a cash enhancement rider and
pent up demand, both from the fourth quarter of 2001.
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New life insurance premiums (first-year and single premiums) sold through the
career agency system were $18 million compared with $21 million in 2001. While
sales declined slightly, per person productivity continues to increase.
Accumulation Segment
The MONY Group manufactures and distributes annuities and mutual funds through
its career agency system, member companies and third-party broker-dealers.
New accumulation assets raised in the 2002 second quarter were $467 million
compared with $458 million in the second quarter of 2001. Higher annuity sales
through the career system and higher mutual fund sales through broker-dealers
led to this increase.
Accumulation assets under management were $8.2 billion as of June 30, 2002
compared with $9.1 billion as of March 31, 2002 and $9 billion on December 31,
2001. Assets under management were affected by the decline in the equity
markets, particularly during the month of June. While assets under management
were lower, the company experienced net inflows of $35 million in its annuity
and mutual fund products.
Variable annuity sales through the career system increased to $132 million in
the second quarter of 2002 from $102 million during the second quarter of 2001
as a result of strong demand for the company's new variable annuity product
introduced in January.
The Enterprise Group of Funds had second quarter sales of $335 million compared
with $356 million during the second quarter of 2001. Higher mutual funds sales
through third-party broker-dealers was offset by lower sales through the career
system.
Enterprise mutual funds sold through third-party broker-dealers were $270
million compared with $256 million during the comparable period. Enterprise
funds sold through The MONY Group career system were $65 million compared with
$100 million during the comparable period.
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Retail Brokerage & Investment Banking
The Retail Brokerage and Investment Banking segment includes securities
brokerage, trading, investment banking, trust and asset management services to
high-net worth individuals and small to mid-size business owner clients through
MONY's Advest, Matrix Capital Markets Group and MONY Securities Corp.
subsidiaries.
The Retail Brokerage and Investment Banking segment had revenues of $91 million
during the second quarter of 2002 compared with $83 million during the
comparable quarter.
Advest revenues increased to $79 million in the second quarter of 2002 from $71
million in the second quarter of 2001.
For the quarter ended June 30, 2002, MONY Securities Corp., a registered
securities broker-dealer for MONY's career agency system, had revenues of $12
million - identical to the amount of revenues in the second quarter of 2001.
Business Focus
"Our sales level over the quarter underscores the long-term vitality of this
organization," added Mr. Roth. "Throughout the rest of the year, we expect our
businesses to build off of the levels seen in the second quarter. However,
earnings on our fee-based and retail brokerage businesses will be adversely
affected if the equity markets remain at their current levels."
Forward Looking Statements
This release contains "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including all statements
relating to MONY's expected results for 2002. There are a number of
uncertainties and risks that could cause actual results to differ materially
from our expectations, including those described under the heading "Forward
Looking Statements" in MONY's annual report on Form 10-K for the fiscal year
ended December 31, 2001 and in the company's other filings with the Securities
and Exchange Commission. Among other things, movements in the equity markets
could affect investment results, the fees earned from assets under management
and the demand for variable products and could result in significant write-offs
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of intangible assets; and actual death claims experience could differ from our
mortality assumptions. The company undertakes no obligation to update or revise
any forward-looking statement, whether as a result of new information, future
events, or otherwise.
About The MONY Group Inc.
The MONY Group Inc. (NYSE: MNY), with $60 billion in assets under management and
administration, is a financial services firm that manages a portfolio of member
companies. These companies include MONY Life Insurance Company, The Advest
Group, Inc., Enterprise Capital Management, Matrix Capital Markets Group, Inc.,
Lebenthal & Co., and U.S. Financial Life Insurance Company. These companies
manufacture and distribute protection, asset accumulation and retail brokerage
products and services to individuals, corporations and institutions through
advisory and wholesale distribution channels. Additional company information is
available at www.mony.com.
Note: The MONY Group Inc. will host a conference call to discuss 2Q 2002
financial results at 9:00 am on Tuesday, August 6, 2002. The call can be heard
via the Investor Relations link at www.mony.com.
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SUPPLEMENTAL FINANCIAL INFORMATION
To assist interested parties in analyzing the Company's consolidated financial
results attached is the following supplemental information:
Exhibit I presents certain summary consolidated income statement data of The
MONY Group for the three-month and six-month periods ended June 30, 2002 and
2001.
Exhibit II presents certain summary consolidated balance sheet data as of
June 30, 2002.
Exhibit III presents information regarding new business generated by the Company
for the three-month and six-month periods ended June 30, 2002 and 2001.
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Exhibit I
THE MONY GROUP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per share amounts) Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenues:
Premiums 169.9 173.4 334.3 338.5
Universal life and investment-type product policy fees 52.5 52.3 101.5 102.0
Net investment income 181.9 189.5 371.6 373.2
Net realized (losses)/gains on investments (25.5) 3.0 (27.9) 5.5
Group Pension Profits 7.5 9.3 15.2 19.2
Retail brokerage and investment banking 97.6 99.8 188.4 170.9
Other income 29.3 41.7 67.5 72.0
------------ ------------ ------------ ------------
513.2 569.0 1,050.6 1,081.3
Benefits and Expenses:
Benefits to policyholders 199.5 194.5 390.2 392.2
Interest credited to policyholders' account balances 27.9 27.0 55.8 55.3
Amortization of deferred policy acquisition costs 38.0 28.3 70.8 65.5
Dividends to policyholders 56.8 60.6 118.3 115.2
Other operating costs and expenses 207.1 226.8 410.5 401.0
------------ ------------ ------------ ------------
529.3 537.2 1,045.6 1,029.2
(Loss)/Income before taxes (16.1) 31.8 5.0 52.1
Income tax (benefit)/expense (5.1) 9.5 1.7 16.5
------------ ------------ ------------ ------------
Net Income (11.0) 22.3 3.3 35.6
Operating Income:
Net (loss) income $ (11.0) $ 22.3 $ 3.3 $ 35.6
Net realized losses/(gains) from investments (after tax) 15.5 (0.6) 16.3 (2.2)
------------ ------------ ------------ ------------
Operating income: 4.5 21.7 19.6 33.4
Litigation related charges 4.5 - 4.5 -
Venture capital (income)/loss 3.0 (4.1) (0.2) (1.0)
------------ ------------ ------------ ------------
Operating Income excluding Venture Capital and
Litigation Related Charges $ 12.0 $ 17.6 $ 23.9 $ 32.4
============ ============ ============ ============
Diluted Per Share Amounts:
Net (Loss) Income $ (0.23) $ 0.44 $ 0.07 $ 0.70
Operating Income $ 0.09 $ 0.43 $ 0.40 $ 0.66
Operating Income (excluding venture capital & litigation charges) $ 0.25 $ 0.35 $ 0.48 $ 0.64
Share Data: (see Note 1):
Weighted-average Shares Outstanding 47,994,628 49,363,512 48,003,420 49,044,496
Plus: Incremental Shares from Assumed Conversion of Diluted
Securities 1,549,587 1,667,333 1,580,133
------------ ------------ ------------ ------------
Weighted-average Shares in Diluted Per Share Calculations 47,994,628 50,913,099 49,670,753 50,624,629
============ ============ ============ ============
Note 1: 1,597,371 incremental shares from the assumed conversion of dilutive
securities were not included in the computation of per share amounts for the
three-month period ended June 30, 2002 because their inclusion would be
anti-dilutive.
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Exhibit II
SUMMARY CONSOLIDATED BALANCE SHEET DATA
($ in millions, except per share amounts)
As of June 30,
2002
Assets:
Invested assets (including cash and cash equivalents) $ 12,315.2
Assets transferred in the Group Pension Transaction 4,581.4
Separate account assets 4,672.4
Other assets 2,930.9
------------
Total assets $ 24,499.9
============
Liabilities:
Policyholders' liabilities $ 10,612.7
Liabilities transferred in the Group Pension Transaction 4,502.8
Separate account liabilities 4,669.5
Short-term debt 7.0
Long-term debt 871.6
Other liabilities 1,741.1
------------
Total liabilities 22,404.7
------------
Shareholders' equity:
Equity 2,011.2
Accumulated comprehensive income 84.0
------------
Total shareholders' equity 2,095.2
------------
Total liabilities and shareholders' equity $ 24,499.9
============
Per share amounts:
Diluted book value per share $ 42.64
============
Diluted book value per share (Ex. Accumulated $ 40.93
Comprehensive Income) ============
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Exhibit III
SEGMENT INFORMATION
The following chart presents MONY's protection and accumulation sales for the
quarter as well as revenue generated from the company's retail brokerage and
investment banking segment.
Three- Three- Six- Six-
Month Month Month Month
Period Period Period Period
Ended Ended Ended Ended
6/30/02 6/30/01 6/30/02 6/30/01
New Business ($ millions)
Protection Products
Career Agency System $18.4 $21.2 $34.0 $38.3
U.S. Financial Life 14.8 12.7 26.9 22.5
Insurance Company
Complementary 28.1 13.9 49.1 36.3
Distribution* ---- ---- ---- ----
Total New Life Insurance $61.3 $47.8 $110.0 $97.1
Premiums ===== ===== ====== =====
Accumulation Products
Career Agency System - $132 $102 $232 $174
Variable Annuities
Career Agency System - 65 100 139 216
Mutual Funds
Third Party Distribution - 270 256 540 505
Mutual Funds --- --- --- ---
Total Accumulation $467 $458 $911 $895
---- ---- ---- ----
Revenues excluding
interest ($ millions)
Retail Brokerage &
Investment Banking
Advest ***$78.9 $70.7 ***$152.2 **$143.6
MONY Securities Corp. 11.8 12.1 22.6 23.1
Matrix Capital Markets 0.5 0.2 0.8 1.9
--- --- --- ---
Total Revenue $91.2 $83.0 $175.6 $168.6
===== ===== ====== ======
* primarily corporate-owned and bank-owned life insurance
** Advest was acquired February 1, 2001. This amount is proforma to include
January 2001.
*** Lebenthal, acquired by Advest in late 2001, accounts for $4.6 million and
$10 million of revenue in the second quarter and first half of 2002
respectively.
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