COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Financial Services, Inc. (NYSE: NFS), a leading provider of long-term savings and retirement products, today reported first quarter 2008 net income of $44.5 million, or $0.32 per diluted share, compared with first quarter 2007 net income of $208.3 million, or $1.42 per diluted share.As a result of the continued challenging capital markets, the first quarter results contain non-operating realized investment losses of $87.9 million, or $0.64 per diluted share, compared to losses of $7.0 million, or $0.05 per diluted share, in the prior year quarter. Of the $87.9 million in the current quarter, $57.5 million was related to other-than-temporary impairments, $20.9 million was associated with the mark-to market of living benefit liabilities, net of economic hedges, and $9.5 million related to other miscellaneous items.
Additionally, first quarter 2007 net income included a $45.5 million gain, or $0.31 per diluted share, resulting from the sale of The 401(k) Company.
Nationwide Financial analyzes operating performance using a non-GAAP financial measure called “net operating earnings,” which the company believes enhances understanding and comparability of its performance by highlighting its results from continuing operations and the underlying profitability drivers. See Exhibit 3 for a description of non-GAAP financial measures included in this earnings announcement, a reconciliation of non-GAAP financial measures to GAAP financial measures, and the substantive reasons why the company believes presentation of these non-GAAP financial measures provides useful information to investors regarding its financial condition and results of operations. The table on the top of page 10 reconciles net operating earnings to net income, including the related diluted per share amounts for the periods indicated.
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