NU Online News Service, Aug. 13, 2004, 12:35. EDT
Standard Management Corporation lost over $2 million in the 2nd quarter, mostly due to heavy spending on its health care units.[@@]
The Indianapolis company reports a net loss of almost $2.5 million on revenues of around $29 million in the 2nd quarter of 2004, compared to net income of over $1 million on more than $41 million in revenues in the 2nd quarter of 2003.
The company’s bright spot was its financial services segment, which marked its 2nd straight profitable quarter. The segment’s net income, however, was down from last year–$800,000, compared to about $2.7 million in the same period of 2003.
Health services reported a loss of over $2 million, up from a $924,000 loss a year earlier.
Ronald D. Hunter, the company’s chairman and chief executive officer said its financial services segment increased spread income and operational economies, improving company margins in the 2nd quarter.
As for health services, Hunter says Standard Management’s substantial spending on the division may soon pay off. Its recently announced acquisition of SVS Optical, with approximately $35 million in revenue and about $4 million in earnings “will significantly contribute to the achievement of $200 to $300 million in revenue over the next 36 months,” Hunter stated.