Great American Financial Resources, Inc. Announces Completion of Sale of Chatham Bars Inn
June 02 2006 - 5:15PM
PR Newswire (US)
CINCINNATI, June 2 /PRNewswire-FirstCall/ -- Great American
Financial Resources, Inc. ("GAFRI") (NYSE:GFR) today announced that
it has completed the sale of Chatham Bars Inn, its resort property
located on Cape Cod, Massachusetts, for a price of approximately
$166 million. In connection with the sale, $10 million of the sale
proceeds have been placed in escrow for possible use in satisfying
certain contingencies. GAFRI expects to report a gross gain (after
sales expenses and contingencies) of approximately $78-$80 million
on the sale. After taxes and the write-off of certain deferred
acquisition costs on annuities associated with the gain
recognition, the Company expects to report a gain of approximately
$29-$32 million ($0.60 - $0.67 per share). These amounts are lower
than originally forecasted due primarily to the contingent amount
discussed above. The gain will be included in the Company's results
for the second quarter of 2006. Additional gains could be recorded
to the extent that the contingencies are favorably resolved. The
Company had owned and operated the hotel since 1993. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041206/CLM061LOGO) S. Craig
Lindner, GAFRI's Chief Executive Officer, commented, "We are
pleased to have completed the sale of Chatham Bars Inn. We intend
to continue our efforts to grow our core businesses organically and
through acquisitions and will look for opportunities to utilize the
proceeds of this sale as part of those growth efforts." About GAFRI
GAFRI is a Cincinnati-based insurance holding company with nearly
$12 billion in assets. The Company's subsidiaries include Great
American Life Insurance Company, Annuity Investors Life Insurance
Company, United Teacher Associates Insurance Company (headquartered
in Austin, Texas) and Loyal American Life Insurance Company.
Through these companies, GAFRI markets traditional fixed, indexed
and variable annuities and a variety of supplemental insurance
products. Forward-Looking Statements The Private Securities
Litigation Reform Act of 1995 encourages corporations to provide
investors with information about the Company's anticipated
performance and provides protection from liability if future
results are not the same as management's expectations. Documents
may contain certain forward-looking statements that are based on
assumptions which management believes are reasonable but, by their
nature, inherently uncertain. Future events and results could
differ materially from those projected. Factors that could cause
such differences include, but are not limited to: the Company's
expectations concerning the amount of gain to be realized,
transaction costs to be incurred, the ability to address certain
contingencies, regulatory actions and the amount of deferred
acquisition costs associated with the gain recognition.
Forward-looking statements are made only as of the date of their
release and GAFRI does not have any obligation to update any
forward-looking statements to reflect subsequent events or
circumstances.
http://www.newscom.com/cgi-bin/prnh/20041206/CLM061LOGO
http://photoarchive.ap.org/ DATASOURCE: Great American Financial
Resources, Inc. CONTACT: Mark F. Muething, Executive Vice President
of Great American Financial Resources, Inc., +1-513-333-5515 Web
site: http://www.gafri.com/
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