The Midland Company Increases Annual Dividend by 63 Percent
January 25 2007 - 4:54PM
PR Newswire (US)
-- Increase Supported By Consistently Higher Earnings CINCINNATI,
Jan. 25 /PRNewswire-FirstCall/ -- The Midland Company
(NASDAQ:MLAN), a highly focused provider of specialty insurance
products and services, today announced that its Board of Directors
approved a 63.3 percent increase in the company's indicated annual
dividend to 40 cents per share from 24.5 cents per share. As a
result, the next quarterly dividend, payable April 4, 2007, to
shareholders of record as of March 21, 2007, will be 10 cents per
share, up from the previous level of 6.125 cents per share. As of
December 31, 2006, Midland had 19,224,000 common shares
outstanding. "Our expanded specialty property and casualty
insurance product platform has in recent years consistently
produced earnings that have significantly exceeded the earnings
levels achieved several years ago. We are confident both in our
current capabilities and in the long-term outlook for our business.
This marks the 21st consecutive year that Midland has increased its
annual dividend, increasing over that 21-year period at a 12.6
percent compounded annual growth rate. We are pleased that our
profitability has made it possible for us to reward shareholders by
increasing dividends year after year. We are also delighted that
our higher earnings levels of the past few years and our positive
long-term outlook have enabled us to increase the dividend this
year by 63.3 percent," said Joseph P. Hayden III, chairman and
chief operating officer. Anticipate Record Full-Year Results
Earlier this month, the company announced that it anticipates
record 2006 full-year results in the range of $3.56 to $3.60 per
share. This compares to $3.37 per share, the prior record set in
2005. Net income before realized capital gains* for the full year
is also anticipated to come in at a record level in the range of
$3.28 to $3.32 per share. This compares to the previous record of
$3.16 per share in 2005. The company will further discuss its 2006
results and 2007 outlook in its quarterly conference call on
February 15, 2007 at 1:30 p.m. (EST). *Non-GAAP Measure and
Reconciliation to GAAP Measure Net income before realized capital
gains is a non-GAAP measure. Items excluded from this measure are
significant components in understanding and assessing the company's
financial performance. The company believes that this non-GAAP
financial measure provides a clearer picture of the underlying
operating activities than the GAAP measure of net income, as it
removes potential issues such as timing of investment gains (or
losses) and allows readers to individually assess these components
of net income. Full Year 2006 2005 Estimated Range Actual Per Share
Amounts (After-Tax, Diluted): Net Income Before Realized Capital
Gains $3.28 $3.32 $3.16 Net Realized Capital Gains 0.28 0.28 0.21
Net Income (GAAP) $3.56 $3.60 $3.37 About the Company Midland,
which is headquartered in Cincinnati, Ohio, is a provider of
specialty insurance products and services through its wholly owned
subsidiary, American Modern Insurance Group, which accounts for
approximately 95 percent of Midland's consolidated revenue.
American Modern specializes in writing physical damage insurance
and related coverages on manufactured housing and has expanded to
other specialty insurance products including coverage for
site-built homes, motorcycles, watercraft, snowmobiles,
recreational vehicles, physical damage on long-haul trucks,
extended service contracts, excess and surplus lines coverages,
credit life and related products as well as collateral protection
and mortgage fire products sold to financial institutions and their
customers. Midland also owns a niche transportation business, M/G
Transport Group, which operates a fleet of dry cargo barges for the
movement of dry bulk commodities on the inland waterways. Midland's
common stock is traded on the Nasdaq Global Select Market under the
symbol MLAN. Additional information on the company can be found on
the Internet at http://www.midlandcompany.com/. DATASOURCE: The
Midland Company CONTACT: W. Todd Gray, Executive Vice President and
CFO of The Midland Company, +1-513-943-7100 Web site:
http://www.midlandcompany.com/
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