Exhibit 99.1
For Release Immediate
Contacts (News Media) Jim Rosensteele, SVP, Corporate
Communications 317.817.4418
(Investors) Tammy Hill, SVP, Investor Relations 317.817.2893
Conseco announces preliminary results for first quarter
Carmel, Ind., April 30, 2004: Conseco, Inc. (NYSE:CNO) announced today that it
expects to report net income (after dividends on convertible exchangeable
preferred stock) for the quarter ended March 31, 2004 of between $46 million and
$50 million, or between 46 cents and 50 cents per diluted common share. Results
for the quarter are expected to include net after-tax gains of approximately $13
million from realized investment gains and severance and credit agreement
charges totaling approximately $4 million after tax.
First quarter results were affected by lower interest rates, which caused a
compression in the spread earned during the quarter, and by higher mortality.
Given our current expectations, we anticipate that our net income applicable to
common stock for the 12 months ending September 30, 2004 will be at the lower
end of our previously reported guidance of $175 million to $200 million. Our
earnings guidance is based on numerous assumptions and factors. If they prove
incorrect, our actual earnings could differ materially from our estimates (see
note on forward-looking statements below). Our guidance excludes any impact from
realized gains (losses) and the proposed refinancing of our current capital
structure described in our Form S-1 Registration Statement initially filed on
January 29, 2004.
The foregoing first quarter results are preliminary and subject to revision
based upon completion of our first quarter financial statements. No assurance
can be given that, upon completion of our financial statements, we will not
report materially different results from those set forth above.
The company will comment briefly regarding this press release on a conference
call on Friday, April 30 at 9:00 a.m. Eastern Time. To participate, please dial
(800) 260-0719 or (612) 326-1008 at least five minutes before the call start
time. The operator will ask you to identify yourself and your company, and will
also ask for the passcode for the call, which is "730487."
The company will report results for the first quarter of 2004 before the market
opens on Thursday, May 6 and will host a conference call to discuss results
later that morning. The earnings conference call will begin at 10:00 a.m.
Eastern Time on Thursday, May 6. A webcast of the conference call can be
accessed through the Investors section of the company's website as follows:
http://www.conseco.com/csp/about_conseco/investors_webcast.htm
Listeners should go to the website at least 15 minutes before the event to
register, download and install any necessary audio software. Conseco expects to
file its Form 10-Q for the quarter ended March 31, 2004 on Monday, May 10.
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Conseco (2)
April 30, 2004
Conseco, Inc.'s insurance companies help protect working American families and
seniors from financial adversity: Medicare supplement, long-term care, cancer,
heart/stroke and accident policies protect people against major unplanned
expenses; annuities and life insurance products help people plan for their
financial future. For more information, visit Conseco's web site at
www.conseco.com.
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Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend
analyses and other information contained in this press release relative to
markets for Conseco's products and Conseco's operations or financial results, as
well as other statements contain forward-looking statements, within the meaning
of the federal securities laws and the Private Securities Litigation Reform Act
of 1995. Forward-looking statements typically are identified by the use of terms
such as "anticipate," "believe," "plan," "estimate," "expect," "project,"
"intend," "may," "will," "would," "contemplate," "possible," "attempt," "seek,"
"should," "could," "goal," "target," "on track," "comfortable with,"
"optimistic" and similar words, although some forward-looking statements are
expressed differently. You should consider statements that contain these words
carefully because they describe our expectations, plans, strategies and goals
and our beliefs concerning future business conditions, our results of
operations, financial position, and our business outlook or they state other
"forward-looking" information based on currently available information.
Assumptions and other important factors that could cause our actual results to
differ materially from those anticipated in our forward-looking statements
include, among other things: (i) the potential adverse impact of our
predecessor's Chapter 11 petition on our business operations, and relationships
with our customers, employees, regulators, distributors and agents; (ii) our
ability to operate our business under the restrictions imposed by our senior
bank credit facility or future credit facilities; (iii) our ability to improve
the financial strength ratings of our insurance company subsidiaries and the
impact of rating downgrades on our business; (iv) our ability to obtain adequate
and timely rate increases on our supplemental health products including our
long-term care business; (v) general economic conditions and other factors,
including prevailing interest rate levels, stock and credit market performance
and health care inflation, which may affect (among other things) our ability to
sell products and access capital on acceptable terms, the market value of our
investments, and the lapse rate and profitability of policies; (vi) our ability
to achieve anticipated synergies and levels of operational efficiencies; (vii)
customer response to new products, distribution channels and marketing
initiatives; (viii) mortality, morbidity, usage of health care services,
persistency and other factors which may affect the profitability of our
insurance products; (ix) performance of our investments; (x) changes in the
Federal income tax laws and regulations which may affect or eliminate the
relative tax advantages of some of our products; (xi) increasing competition in
the sale of insurance and annuities; (xii) regulatory changes or actions,
including those relating to regulation of the financial affairs of our insurance
companies, including the payment of dividends to us, regulation of financial
services affecting (among other things) bank sales and underwriting of insurance
products, regulation of the sale, underwriting and pricing of products, and
health care regulation affecting health insurance products; (xiii) the ultimate
outcome of lawsuits filed against us and other legal and regulatory proceedings
to which we are subject; and (xiv) the risk factors or uncertainties listed from
time to time in our filings with the Securities and Exchange Commission.
Other factors and assumptions not identified above are also relevant to the
forward-looking statements, and if they prove incorrect, could also cause actual
results to differ materially from those projected.
All written or oral forward-looking statements attributable to us are expressly
qualified in their entirety by the foregoing cautionary statement. Our
forward-looking statements speak only as of the date made. We assume no
obligation to update or to publicly announce the results of any revisions to any
of the forward-looking statements to reflect actual results, future events or
developments, changes in assumptions or changes in other factors affecting the
forward-looking statements.