CFNB Reports First Quarter 2002 EPS of $0.26.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. 24, 2001 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 $3.0 million for the first quarter ended Sept. 30, 2001, down 24% from net earnings of $4.0 million for the first quarter of fiscal 2001. 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 also decreased 24% to $0.26 per share, compared with $0.34 per share for the first quarter of the prior year. For the first quarter ended Sept. 30, 2001, total revenues decreased 19% to $12.7 million, compared with $15.6 million for the first quarter of fiscal 2001. The decreased revenues resulted from a 55% decrease in revenues from sales type leases, which was offset in part by higher lease revenues from direct financing direct financing The raising of funds without using an intermediary. For example, a firm may decide to save an underwriter's fee by offering new securities directly to investors. leases. Gross profit of $8.6 million for the first quarter of fiscal 2002 decreased 21% from $10.9 million reported during the first quarter of the prior year. CFNB's gross profit in the quarter ended Sept. 30, 2001, was primarily impacted by a significant increase in the provision for credit losses and lower income recognized from leases reaching their end of term, which were offset somewhat by increased income from direct financing leases. The increased provision is directly attributable to the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the underlying credit of one large lease transaction in process. During the first quarter, the company's selling, general and administrative ("S,G&A") expenses were cut by 16% to $3.8 million, compared with $4.5 million during the first quarter of fiscal 2001. This decrease in S,G&A expenses is primarily the result of lower salary and benefit expenses related to restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). steps the company took and lower legal and general expenses. Commenting on the results, Patrick E. Paddon, president and chief executive officer, indicated that: "The weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economy hurt our
first-quarter results through its impact on credit quality and demand
for investment in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . During the first quarter, our volume
of new lease originations was the lowest it has been in over 18 months.
"While the quality of our lease portfolio has generally remained good, we had one large customer file bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most , the outcome of which is not yet determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. . Consequently, we concluded that additions to our provision were warranted. "At the same time, revenue and income related to lease extensions was down significantly, in part due to deferring the recognition of income on certain transactions until credit conditions became more certain. Despite the turmoil in the market, we remain strong with almost $55 million in cash and cash equivalents." California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, Calif. 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 and direct mail from a centralized location and will lease capital assets to businesses and organizations and provide business loans to fund the purchase of assets leased by third 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 2001 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
Condensed Statements of Earnings
(000s except per-share data)
Three Months Ended
Sept. 30,
2001 2000
Leasing revenues $ 7,298 $ 9,869
Sales of leased property 4,130 4,346
Interest and other income 1,256 1,415
Total revenues $12,684 $15,630
Gross profit 8,623 10,930
Earnings before income taxes 4,858 6,433
Net earnings $ 2,988 $ 3,956
Basic earnings per share $ 0.27 $ 0.35
Diluted earnings per share $ 0.26 $ 0.34
Weighted average number of common shares
outstanding 11,233 11,415
Diluted number of common shares outstanding 11,438 11,496
CALIFORNIA FIRST NATIONAL BANCORP
Condensed Balance Sheets
(000s)
ASSETS June 30, 2001 June 30, 2001
(Unaudited) (Audited)
Cash and short term investments $ 54,631 $ 59,089
Federal Reserve Bank Stock 600 600
Net receivables 14,022 9,655
Property for transactions in process 22,679 20,490
Net investment in capital leases 117,588 116,288
Other assets 8,429 9,544
Discounted lease rentals assigned to lenders 106,988 121,000
$324,937 $336,666
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 1,247 $ 623
Income taxes payable, including deferred taxes 20,942 21,556
Deposits 1,578 70
Other liabilities 12,327 14,164
Nonrecourse debt 106,988 121,000
Total liabilities 143,082 157,413
Stockholders' equity 181,855 179,253
$324,937 $336,666
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