GAINSCO Reports 4th Quarter and Year 2004 Results

DALLAS, March 11 /PRNewswire-FirstCall/ -- GAINSCO, INC.
(OTC Bulletin Board: GNAC) today reported net income for the fourth quarter
2004 of $1.8 million. After the accretion of the discount on the Redeemable
Preferred Stock of $0.9 million and dividends on the Redeemable Preferred
Stock of $0.3 million, net income available to common shareholders for the
fourth quarter 2004 was $0.6 million, or $0.03 per common share, basic and
diluted.
For the year ended December 31, 2004, net income was $5.5 million. After
the accretion of the discount on the Redeemable Preferred Stock of
$3.4 million and dividends on the Redeemable Preferred Stock of $1.1 million,
net income available to common shareholders for the twelve months ended
December 31, 2004 was $0.9 million, or $0.04 per common share, basic and
diluted.
"Our profit this quarter was due to the Company's continued success in its
nonstandard personal automobile insurance business and the realization of
capital gains in its investment portfolio. With the capital restructuring
transaction accomplished, the Company is now pursuing its long-term growth
plan in nonstandard personal automobile insurance. We began writing business
in Nevada and initiated our California program in the fourth quarter of 2004,
giving us additional momentum going into 2005," said Glenn W. Anderson,
GAINSCO's president and chief executive officer.
The Company is now writing nonstandard personal auto insurance in the five
states of Florida, Texas, Arizona, Nevada and California. As a result of the
expansion and diversification efforts currently in place, the Company
experienced significant growth in premiums written during the first two months
of 2005. The Company's implementation of its expansion plan is occurring in
an increasingly competitive environment and could be adversely impacted by
such market conditions.