Pasadena, Calif.-based PAULA Financial announced that it has completed the refinancing of its outstanding debt balance of $1.8 million. The new credit facility represents a significant improvement in both interest rate and principal repayment terms. Additionally, the new agreement provides for the payment of shareholder dividends and also allows for the company to make stock repurchases — two restrictions the company agreed to during the period associated with the winding down of its insurance company subsidiary.
The company reported net income for the third quarter of 2003 of $0.07 per share compared to $0.02 per share for the 2002 period. Total revenue for the third quarter of 2003 was $5.2 million compared to $3.5 million for the 2002 period.
Net income for the first nine months of 2003 was $0.14 per share compared to $0.06 per share for the 2002 period. Total revenue for the first nine months of 2003 was $14.1 million compared to $9.7 million for the 2002 period.
Jeff Snider, chairman and CEO, commented, “We are pleased to announce our new relationship with U.S. Bank and the improved terms we obtained on the debt agreement. The agency’s results during the first nine months of 2003 continue to track with our expectations. Policy persistency remains high and we have generated net new business gains in each month of the 2003 year. We continue to monitor developments in Sacramento related to workers’ compensation reform as it may bear upon the viability of the State Compensation Insurance Fund as a significant source of current agency commissions. We are all too familiar with the complexity of the issues — so we worry how little attention is being paid to the notion of exclusive remedy — and the remarkable litigation content of the workers’ compensation claims delivery system which continues to frustrate this important idea.”
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