BNC Mortgage Inc. Reports Third Quarter Operating Results.Business Editors 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)--May 8, 2000 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:BNCM BNCM Bayesian Network Causal Model ) Monday Monday: see week. reported earnings and loan production for the three months ended March 31, 2000. The company reported a net loss of $1.1 million or a ($0.21) 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 for the quarter ended March 31, 2000, compared with net income of $642,000 or $0.12 per diluted share for the quarter ended March 31, 1999. The loss is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the discontinuing the company's wholesale prime operations, and the related write off of $1.4 million of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with Mortgage Logic.com Inc., 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. it formed in February February: see month. 1999. For the quarter ended March 31, 2000, total mortgage loan production increased 17.31% to $402.6 million from $343.2 million for the corresponding 1999 quarter. Subprime mortgage loan production increased 41.8% to $345.7 million for the three months ended March 31, 2000, as compared with $243.8 million in the corresponding 1999 period. In addition, prime mortgage loan production decreased 42.8% to $56.9 million for the three months ended March 31, 2000 compared with $99.4 million for the corresponding 1999 period. For the quarter ended March 31, 2000, mortgage loan sales increased 43.4% to $413.0 million with a cash gain on sale of $7.0 million compared with mortgage loan sales of $288.0 million with a cash gain on sale of $5.5 million for the same fiscal quarter a year ago. The increase in cash gain on sale was due to an increase in mortgage loans originated in the current quarter compared to the corresponding 1999 period. For the quarter ended March 31, 2000, total revenues increased to $13.1 million from $10.3 million for the corresponding 1999 period, primarily due to an increase in cash gain on sale of mortgage loans. For the quarter ended March 31, 2000, total expenses excluding the write off of intangible assets of $1.4 million increased 46.7% to $13.5 million from $9.2 million for the corresponding 1999 period. BNC Mortgage 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. Except for historical information contained herein, this news 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.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Nine
Months Ended Months Ended
March 31 March 31
2000 1999 2000 1999
Revenues:
Gain on sale of
mortgage loans $ 7,003 $ 5,498 $ 22,848 $ 27,738
Loan origination
income 2,327 1,927 7,590 5,615
Interest income 3,381 2,494 10,160 5,893
Other income 385 353 1,115 1,122
Total revenues 13,096 10,272 41,713 40,368
Expenses:
Employees'
salaries and
commissions 6,796 5,221 19,698 18,363
General and
administrative
expenses 5,642 2,452 12,399 9,430
Interest expense 2,463 1,547 7,507 3,755
Total expenses 14,901 9,220 39,604 31,548
Income before
income taxes (1,805) 1,052 2,109 8,820
Income tax expense (722) 410 852 3,513
Net income ($1,083) $ 642 $ 1,257 $ 5,307
Basic earnings (loss)
per share ($ 0.21) $ 0.12 $ 0.25 $ 0.94
Diluted earnings
(loss) per share ($ 0.21) $ 0.12 $ 0.24 $ 0.94
Weighted average
number of shares
outstanding -- basic 5,138 5,418 5,122 5,613
Weighted average
number of shares
outstanding -- diluted 5,138 5,418 5,138 5,613
BNC MORTGAGE INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, 2000 June 30, 1999
ASSETS
Cash and cash equivalents $ 22,103 $ 29,867
Restricted cash 1,117 1,105
Mortgage loans held for sale 112,583 141,749
Property and equipment, net 1,667 1,882
Intangible assets, net 0 1,468
Deferred income taxes 3,181 2,424
Other assets 2,860 3,484
Total assets $ 143,511 $ 181,979
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Warehouse line-of-credit $ 103,469 $ 142,163
Accounts payable & accrued
liabilities 5,089 4,955
Accrued income taxes 419 1,945
Total liabilities 108,977 149,063
Stockholders' Equity:
Preferred stock -- --
Common stock 5 5
Additional paid in capital 12,341 11,980
Retained earnings 22,188 20,931
Total stockholders' equity 34,534 32,916
Total liabilities &
stockholders' equity $ 143,511 $ 181,979
BNC MORTGAGE INC.
SELECTED FINANCIAL DATA
(In thousands)
Three Nine
Months Ended Months Ended
March 31 March 31
2000 1999 2000 1999
Loan Production
Subprime $ 345,733 $ 243,835 $ 983,013 $ 717,533
Prime 56,897 99,352 265,714 163,542
Total Production $ 402,630 $ 343,187 $ 1,248,727 $ 881,075
Operating Expenses
Subprime $ 10,080 $ 6,900 $ 27,143 $ 25,939
Prime 2,358 773 4,954 1,854
Total $ 12,438 $ 7,673 $ 32,097 $ 27,793
Operating Expenses as a
% of Loan Production
Subprime 2.92% 2.83% 2.76% 3.61%
Prime 4.14% 0.78% 1.86% 1.13%
Total 3.09% 2.24% 2.57% 3.15%
BNC MORTGAGE INC.
SELECTED FINANCIAL DATA (continued)
(In thousands)
Three Nine
Months Ended Months Ended
March 31 March 31
2000 1999 2000 1999
Loan Sales
Subprime $ 350,568 $ 212,999 $ 999,009 $ 705,026
Prime 62,457 75,021 267,480 141,006
Total Loan Sales $ 413,025 $ 288,020 $ 1,266,489 $ 846,032
Premiums as a % of Loan Sales:
Subprime
Gross Sales Premiums 3.20% 3.43% 3.42% 4.86%
Yield Spread Premium
Paid to Brokers/Lenders (1.28) (0.92) (1.23) (1.03)
Net Sales Premiums 1.92 2.51 2.19 3.83
Origination Fees
received 0.60 0.71 0.65 0.71
2.52% 3.22% 2.84% 4.54%
Prime
Gross Sales Premiums 1.28% 0.93% 1.17% 1.02%
Yield Spread Premium
Paid to Brokers/Lenders (0.84) (0.71) (0.81) (0.49)
Net Sales Premiums 0.44 0.22 0.36 0.53
Origination Fees
received 0.39 0.54 0.40 0.43
0.83% 0.76% 0.76% 0.96%
Total
Gross Sales Premiums 2.91% 2.78% 2.95% 4.22%
Yield Spread Premium
Paid to Brokers/Lenders (1.21) (0.87) (1.14) (0.94)
Net Sales Premiums 1.70 1.91 1.81 3.28
Origination Fees
received 0.56 0.67 0.60 0.66
2.26% 2.58% 2.41% 3.94%
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