BNC Mortgage Inc. Reports Fourth Quarter Operating Results.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Aug. 5, 1999-- BNC (hardware) BNC - A connector for coaxial cable such as that used for some video connections and RG58 "cheapernet" connections. A BNC connector has a bayonet-type shell with two small knobs on the female connector which lock into spiral slots in the male connector when it is twisted Mortgage, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BNCM BNCM Bayesian Network Causal Model ) today reported earnings and loan production for the year and three months ended June June: see month. 30, 1999. Net earnings for the year ended June 30, 1999, were $6.3 million or $1.14 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to the $7.2 million or $1.51 per diluted share for the year ended June 30, 1998. Net earnings for the three months ended June 30, 1999 were $972,000 or $0.19 per diluted share compared to $2.2 million or $0.36 per diluted share, in the corresponding 1998 period. The decrease in net earnings resulted primarily from a reduction in the cash gain on sale of mortgage loans during the period due to secondary market conditions. Mortgage loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. were $1.3 billion and $454.5 million for the year and three months ended June 30, 1999, respectively as compared to $788.5 million and $252.3 million in the corresponding 1998 periods, respectively. Subprime mortgage loan production increased 12% to $257.6 million for the three months ended June 30, 1999 as compared to $230.4 million for the corresponding 1998 period. "We are pleased with loan production levels, changes to our cost structure, and the strength of our current balance sheet. As of June 30, 1999 the Company had cash of $29.9 million or $5.78 per diluted share. The Company continues to believe that being a low cost provider is our first priority and one of the keys to ensuring our continued success in the future. During the past year we have taken several steps to ensure that BNC remains one of the efficient producers, while maintaining a balance to continue our growth," said Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. W. Monahan Monahan is a name of Gaelic origin, derived from manacháin, meaning "little monk".[1], and may refer to the following: People with the surname Monahan
On February February: see month. 26, 1999 the purchase of certain assets and assumption of certain liabilities of America's Lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. , Inc. was completed. The origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real platform is being operated as Mortgage Logic.com, Inc. ("Mortgage Logic"), which reflects its use of an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. internet based wholesale lending operation that links independent mortgage brokers to an automated underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and credit reporting system. This internet site allows independent mortgage brokers to access a borrower's credit history, complete and submit loan applications, and receive loan underwriting decisions. "During the quarter ended June 30, 1999, its first full quarter of operations as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of BNC Mortgage, Inc., Mortgage Logic originated $174.9 million in prime mortgage loans, of which $63.1million or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 36% was originated through this internet-based system," stated Peter R. Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). , Chief Financial Officer. "As America's Lender, the Mortgage Logic origination platform has successfully originated loans through the internet since 1996. With its leading technology, this internet site has proven to be an efficient and low cost means of originating mortgage loans. We intend to make certain enhancements to our internet site including a consumer direct application which is expected to give the retail customer an underwriting decision within minutes over the internet," added Mr. Evans. "Mortgage Logic provides us with a vast array of internet opportunities and we intend to continue to explore avenues to expand Mortgage Logic's e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. business and, the Company as a whole, in ways that are accretive to our stockholders, stated Mr. Monahan. Year Ended June 30, 1999 Compared to June 30, 1998 Net earnings were $6.3 million or $1.14 per diluted share for the year ended June 30, 1999 compared to $7.2 million or $1.51 per diluted share for the year ended June 30, 1998. For the year ended June 30, 1999, total mortgage loan production increased 65% to $1.3 billion from $788.5 million for the corresponding 1998 period. For the year ended June 30, 1999, mortgage loan sales increased 75% to $1.3 billion with a cash gain on sale of $34.9 million compared to mortgage loan sales of $744.4 million with a cash gain on sale of $30.5 million for the corresponding 1998 period. For the year ended June 30, 1999, total revenues increased 19% to $52.9 million from $44.4 million for the same period a year earlier, primarily due to the increase in cash gain on sale of mortgage loans, and increased loan origination income. For the year ended June 30, 1999, total expenses increased 32% to $42.5 million from $32.3 million for the corresponding 1998 period. Three Months Ended June 30, 1999 Compared to June 30, 1998 Net earnings were $972,000 or $0.19 per diluted share for the quarter ended June 30, 1999, compared to $2.2 million or $0.36 per diluted share for the quarter ended June 30, 1998. For the quarter ended June 30, 1999, total mortgage loan production increased 80% to $454.5 million from $252.3 million for the corresponding 1998 quarter. For the quarter ended June 30, 1999, mortgage loan sales increased 84% to $428.3 million with a cash gain on sale of $7.1 million compared to mortgage loan sales of $232.7 million with a cash gain on sale of $9.3 million for the same fiscal quarter a year ago. The reduction in cash gain on sale between periods was due to decreased cash premiums paid for subprime mortgage loans in the secondary market. For the quarter ended June 30, 1999, total revenues decreased 9% to $12.5 million from $13.7 million for the corresponding 1998 period, primarily due to a decrease in cash gain on sale of mortgage loans. For the quarter ended June 30, 1999, total expenses increased 8% to $10.9 million from $10.1 million for the corresponding 1998 period. During the fiscal year ended June 30, 1999, the Board of Directors approved a $5 million common stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . The Company is pleased to report that it repurchased 783,629 shares or 13.34% of the issued shares of stock for an aggregate amount of $4.2 million, at an average price of $5.36 per share. "During a very difficult year, the Company successfully implemented its business plan, produced profits and positive cash flow, and used these proceeds to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. common stock, invest in technology and complete an acquisition. We are pleased with the results for the year end June 30,1999 and the outlook for the coming term," said Mr. Monahan. BNC Mortgage, Inc. is a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. finance company engaged in the business of originating, purchasing and selling, on a whole loan basis for cash, conforming con·form v. con·formed, con·form·ing, con·forms v.intr. 1. To correspond in form or character; be similar. 2. and non-conforming, residential mortgage loans secured by one-to-four family residences. Mortgage Logic.com, Inc. is a mortgage lender specializing in borrowers with conforming credit that generally satisfy the underwriting standards such as those utilized by FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association and FHLMC See Federal Home Loan Mortgage Corporation. . Mortgage Logic currently originates loans in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . It is anticipated that expansion plans will include several western states. Except for historical information contained herein, this new release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. in Section 21E of the Securities Exchange Act of 1934, as amended and involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements can be identified by the use of words "anticipate", "may," "will," "expect," "intend," "could," "would," and "remain," "continue," or the negative or other variations thereof or comparable terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or . The Company's actual results could differ materially from those anticipated in the forward-looking statements based on changes in the Company's business strategy. BNC Mortgage, Inc. Fourth Quarter Report via AT&T Teleconference -- August 6, 1999 -- 8:00 a.m. -- Pacific Time Zone Hosts: Mr. Kelly W. Monahan, President and Mr. Peter R. Evans, Chief Financial Officer Teleconference Dial-In Number: 800/553-0327. Questions will be accepted during the Teleconference. Note: To hear a play-back of the complete conference on tape, you may dial in as follows: (USA) Number -- 800/475-6701 ACCESS CODE: 464169 between 10:00 a.m. August 6, 1999 and 11:59 p.m. August 13, 1999. (International) Number -- 320/365-3844 ACCESS CODE: 464169 between 10:00 a.m. August 6, 1999 and 11:59 p.m. August 13, 1999.
BNC MORTGAGE, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Twelve
Months Ended Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Gain on sale
of mortgage
loans $7,122 $9,317 $34,860 $30,458
Loan origination
income 2,797 1,745 8,412 5,399
Interest
income 2,274 2,269 8,167 7,860
Other
Income 351 327 1,473 676
Total
revenues 12,544 13,658 52,912 44,393
Expenses:
Employees' salaries
and
commissions 6,031 5,678 24,394 18,828
General and
administrative
expenses 3,063 2,802 12,493 8,028
Interest
expense 1,853 1,572 5,608 5,486
Total
expenses 10,947 10,052 42,495 32,342
Income before
income taxes 1,597 3,606 10,417 12,051
Income tax
expense 625 1,426 4,138 4,815
Net income $ 972 $ 2,180 $6,279 $7,236
Net income
per share
basic $ 0.19 $ 0.37 $ 1.14 $ 1.55
Net income
per share
diluted $ 0.19 $ 0.36 $ 1.14 $ 1.51
Weighted average
number of shares
outstanding --
basic 5,166 5,934 5,502 4,654
Weighted average
number of shares
outstanding --
diluted 5,166 6,072 5,502 4,796
BNC MORTGAGE, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, 1999 June 30, 1998
ASSETS:
Cash and cash equivalents $ 29,867 $25,890
Restricted cash 1,105 638
Mortgage loans held for sale 141,749 98,717
Property and equipment, net 1,882 1,533
Intangible assets, net 1,468 --
Deferred income taxes 2,132 2,131
Other assets 3,483 1,646
Total assets $181,686 $130,555
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Warehouse line-of-credit $142,163 $ 96,022
Accounts payable & accrued
liabilities 4,955 2,880
Accrued income taxes 1,652 802
Total Liabilities 148,770 99,704
Stockholders' Equity:
Preferred stock -- --
Common stock 5 6
Additional paid in capital 11,980 16,193
Retained earnings 20,931 14,652
Total stockholders' equity 32,916 30,851
Total liabilities &
stockholders' equity $181,686 $ 130,555
BNC MORTGAGE, INC.
SELECTED FINANCIAL DATA
(In thousands)
Three Months Ended Year Ended
June 30, June 30,
1999 1998 1999 1998
Loan Production
Subprime $ 257,595 $ 230,367 $ 975,128 $ 761,763
Prime (a) 196,905 21,946 360,447 26,716
Total Production $ 454,500 $ 252,313 $1,335,575 $ 788,479
Operating Expenses
Subprime $ 7,543 $ 8,166 $33,482 $ 26,373
Prime (a) 1,551 314 3,405 483
Total $ 9,094 $ 8,480 $36,887 $ 26,856
Operating Expenses
as a % of Loan Production
Subprime 2.93% 3.54% 3.43% 3.46%
Prime (a) 0.79 1.43 0.94 1.81
Total 2.00% 3.36% 2.76% 3.41%
(a) Includes data from the Prime Division of BNC Mortgage, Inc.
and Mortgage Logic.com, Inc.
BNC MORTGAGE, INC.
SELECTED FINANCIAL DATA continued
(In thousands)
Three Months Ended Year Ended
June 30, June 30,
1999 1998 1999 1998
Loan Sales
Subprime 234,700 217,178 939,727 728,592
Prime (a) 193,602 15,534 334,608 15,773
Total Loan Sales $ 428,302 $ 232,712 $ 1,274,335 $ 744,365
Premiums as a % of Loan Sales:
Subprime
Gross Sales
Premiums 3.82% 5.58% 4.60% 5.58%
Yield Spread Premium
Paid to
Brokers/Lenders (0.98) (1.35) (1.02) (1.42)
Net Sales Premiums 2.84 4.23 3.58 4.16
Origination Fees
received 0.84 0.79 0.74 0.74
3.68% 5.02% 4.32% 4.90%
Prime (a)
Gross Sales Premiums 1.31% 0.89% 1.19% 0.89%
Yield Spread Premium
Paid to
Brokers/Lenders (1.07) (0.01) (0.82) (0.01)
Net Sales Premiums 0.24 0.88 0.37 0.88
Origination Fees
received 0.42 0.12 0.42 0.10%
0.66% 1.00% 0.79% 0.98%
Total
Gross Sales Premiums 2.68% 5.31% 3.70% 5.48%
Yield Spread Premium
Paid to
Brokers/Lenders (1.02) (1.31) (0.96) (1.39)
Net Sales Premiums 1.66 4.00 2.74 4.09
Origination Fees
received 0.65 0.75 0.66 0.73
2.31% 4.75% 3.40% 4.82%
(a) Includes data from the Prime Division of BNC Mortgage, Inc. and Mortgage Logic.com, Inc. |
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