Primus Guaranty, Ltd. (“the Company”) (OTC PINK:PRSG) today announced
its financial results for the second quarter ended June 30, 2014.
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GAAP net income available to common shares for the second quarter 2014
was $2.3 million, or $0.11 per diluted share, compared with GAAP net
income available to common shares of $16.4 million, or $0.65 per
diluted share, for the second quarter 2013.
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GAAP book value per common share was $1.82 at June 30, 2014, compared
with GAAP book value per common share of $8.89 at December 31, 2013.
The June 30, 2014 GAAP book value per common share reflects the $7.25
distribution per common share that was paid to shareholders in the
second quarter 2014.
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At June 30, 2014, the notional principal of Primus Financial Products,
LLC’s consolidated credit swap portfolio totaled $300 million,
compared with $3.3 billion at December 31, 2013.
Additional Information
A copy of this press release and a letter dated July 30, 2014 to the
shareholders from Richard Claiden, Chief Executive Officer, are
available in the Investor Relations section of the Company’s Web site at www.primusguaranty.com.
About Primus Guaranty
Primus Guaranty, Ltd. is a Bermuda company with offices in New York.
Through its subsidiary, Primus Financial Products, LLC, the Company
provides protection against the risk of default on primarily investment
grade corporate reference entities. Its common shares trade on the OTC
Pink Tier of the OTC market. Investors can find market information for
the Company on www.otcmarkets.com.
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Primus Guaranty, Ltd.
Condensed Consolidated Statements of Financial Condition
(Unaudited)
(in thousands except share amounts)
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June 30,
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December 31,
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2014
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2013
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Assets
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Cash and cash equivalents
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$
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20,500
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$
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27,512
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Investments, at fair value
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24,207
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66,230
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Restricted cash
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-
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106,580
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Accrued interest and premiums
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311
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1,270
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Unrealized gain on credit swaps, at fair value
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162
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1,981
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Other assets (includes $524 and $822 at fair value as of
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June 30, 2014 and December 31, 2013, respectively)
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1,331
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1,366
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Total assets
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$
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46,511
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$
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204,939
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Liabilities and Equity
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Liabilities
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Accounts payable and accrued expenses
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$
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6,051
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$
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4,447
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Unrealized loss on credit swaps, at fair value
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-
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5,453
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Other liabilities (includes $624 and $979 at fair value as of
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June 30, 2014 and December 31, 2013, respectively)
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878
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1,281
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Total liabilities
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$
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6,929
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$
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11,181
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Equity
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Common shares, $0.08 par value, 62,500,000 shares
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authorized, 21,786,187 and 21,786,406 shares issued and
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outstanding at June 30, 2014 and December 31, 2013, respectively
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1,743
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1,743
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Additional paid-in capital
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37,537
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116,629
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Accumulated other comprehensive income
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137
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538
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Retained earnings
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165
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74,848
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Total equity
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$
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39,582
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$
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193,758
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Total liabilities and equity
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$
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46,511
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$
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204,939
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Primus Guaranty, Ltd.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands except per share amounts)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2014
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2013
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2014
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2013
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Revenues
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Net credit swap revenue
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$
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2,924
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$
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16,524
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$
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5,466
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$
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36,832
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Interest income
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482
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1,176
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1,175
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2,860
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Other income
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122
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621
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317
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1,402
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Total revenues
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3,528
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18,321
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6,958
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41,094
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Expenses
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Compensation and employee benefits
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583
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740
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1,476
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2,338
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Professional and legal fees
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217
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330
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434
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649
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Interest expense
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-
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-
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-
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692
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Other
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425
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444
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868
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995
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Total expenses
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1,225
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1,514
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2,778
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4,674
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Income from continuing operations before provision
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for income taxes
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2,303
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16,807
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4,180
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36,420
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Provision for income taxes
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(11)
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-
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12
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19
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Income from continuing operations, net of tax
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2,314
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16,807
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4,168
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36,401
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Income from discontinued operations, net of tax
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2
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154
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15
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238
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Net income
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2,316
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16,961
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4,183
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36,639
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Less:
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Distributions on preferred securities of subsidiary
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-
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578
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-
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1,350
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Net income available to common shares
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$
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2,316
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$
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16,383
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$
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4,183
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$
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35,289
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Income per common share:
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Basic:
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Income from continuing operations
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$
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0.11
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$
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0.65
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$
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0.19
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$
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1.37
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Income from discontinued operations
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$
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-
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$
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-
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$
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-
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$
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0.01
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Net income available to common shares
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$
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0.11
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$
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0.65
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$
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0.19
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$
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1.38
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Diluted:
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Income from continuing operations
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$
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0.11
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$
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0.65
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$
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0.19
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$
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1.37
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Income from discontinued operations
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$
|
-
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$
|
-
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$
|
-
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$
|
0.01
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Net income available to common shares
|
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$
|
0.11
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$
|
0.65
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$
|
0.19
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$
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1.38
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Weighted average common shares outstanding:
|
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Basic
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21,786
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25,125
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|
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21,786
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25,625
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Diluted
|
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21,786
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25,126
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|
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21,786
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25,634
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Copyright Business Wire 2014