CFNB Reports 4% Increase in First Quarter EPS.Business Editors SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--Oct. 23, 2002 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). First National Bancorp (Nasdaq:CFNB CFNB California First National Bancorp ) ("CalFirst Bancorp") today announced net earnings of $3 million for the first quarter ended Sept. 30, 2002, a 2% increase from the first quarter of fiscal 2002. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the first quarter increased 4% to $0.27 per share, compared with $0.26 per share for the first quarter of the prior year, benefiting from a lower number of shares outstanding during the period. For the first quarter ended Sept. 30, 2002, net direct finance and interest income increased 30% to $4.3 million, compared with $3.3 million for the first quarter of fiscal 2002. This improvement is primarily due to a significant decrease in the provision for lease losses, as the credit quality of the lease portfolio remained stable over the period. Total direct finance and interest income was down 6%, when compared with the prior year, reflecting lower interest rates earned on the company's cash and investment balances. Other income decreased 15% to $4.5 million, compared with $5.3 million during the first quarter of fiscal 2002. The decrease reflects a decline in income from sales of leased property at lease expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created and other income, which was offset slightly by higher income from lease extensions. As a result of the foregoing, gross profit of $8.8 million for the first quarter of fiscal 2003 increased 2% from $8.6 million reported for the first quarter of the prior year. During the first quarter of fiscal 2003, CalFirst Bancorp's SG&A expenses increased by 3% to $3.9 million, compared with $3.8 million during the first quarter of fiscal 2002. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , over the past two quarters the company's leasing operation has expanded the sales organization through adding management and sales executives. These actions have, and will continue to, increase the company's overhead expenses when compared with fiscal 2002. Commenting on the results, Patrick E. Paddon, president and chief executive officer, indicated that: "During the first quarter, our volume of lease originations continued to be stronger than during the comparable quarter of last year. Leases closed and booked during the quarter increased 9% from the first quarter of fiscal 2002, and CalFirst Bancorp finished the quarter with a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approved but un-booked leases up 15% from a year ago. "Residual Residual See:Residual value realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. contributed better than expected to our first quarter results, however, the volume of leases reaching their end of term during fiscal 2003 will be substantially lower than last year, and as a result, we expect income from sales of leased property and lease extensions to be lower for the balance of the year." California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, California Orange County is a county in Southern California, United States. Its county seat is Santa Ana. According to the 2000 Census, its population was 2,846,289, making it the second most populous county in the state of California, and the fifth most populous in the United States. . California First Leasing Corp. leases and finances computer networks and other high-technology assets through a centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. marketing program designed to offer cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. leasing alternatives. California First National Bank is a FDIC-insured national bank that gathers deposits using telephone, the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and direct mail from a centralized location, and will lease capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) to businesses and organizations and provide business loans to fund the purchase of assets leased by first parties. 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. , which involve management assumptions, risks and uncertainties. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , the company's actual results could differ materially from the results forecast in the forward-looking statements. For further discussion regarding management assumptions, risks and uncertainties, readers should refer to the company's 2002 annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. .
CALIFORNIA FIRST NATIONAL BANCORP
Consolidated Statement of Earnings
(000s except per share data)
Three Months Ended
Sept. 30,
2002 2001
Direct finance income $ 4,241 $ 4,330
Interest income on investments 316 525
Total direct finance and interest income 4,557 4,855
Interest expense on deposits 67 7
Provision for credit losses 180 1,532
Net direct finance and interest income
after provision for credit losses 4,310 3,316
Other income
Operating and sales-type lease income 2,125 1,738
Gain on sale of leases and leased property 2,204 2,837
Other income 163 731
Total other income 4,492 5,306
Gross Profit 8,802 8,622
Selling, general and administrative expenses 3,861 3,764
Earnings before income taxes 4,941 4,858
Income taxes 1,902 1,870
Net earnings $ 3,039 $ 2,988
Basic earnings per share $ 0.27 $ 0.27
Diluted earnings per share $ 0.27 $ 0.26
Weighted average common shares outstanding 11,112 11,233
Diluted number of common shares outstanding 11,415 11,438
CALIFORNIA FIRST NATIONAL BANCORP
Consolidated Balance Sheets
(000s)
ASSETS Sept. 30, 2002 June 30, 2002
(Unaudited) (Audited)
Cash and short-term investments $ 78,041 $ 88,393
Federal Reserve Bank Stock 583 583
Net receivables 10,464 15,961
Property acquired for transactions
in process 28,430 20,570
Net investment in capital leases 117,080 108,091
Other assets 1,244 2,289
Discounted lease rentals assigned
to lenders 63,133 72,754
$ 298,975 $ 308,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 1,613 $ 1,422
Income taxes payable, including deferred
taxes 22,005 22,501
Deposits 8,433 8,969
Other liabilities 11,091 11,604
Nonrecourse debt 63,133 72,754
Total liabilities 106,275 117,250
Stockholders' Equity 192,700 191,391
$ 298,975 $ 308,641
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