CFNB Reports Lower First Quarter Net Earnings.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)--Oct. 22, 2003 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 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 :CFNB CFNB California First National Bancorp ) ("CalFirst Bancorp") today announced net earnings of $2.3 million for the first quarter ended Sept. 30, 2003, a 25% decline from $3.0 million earned during the first quarter of fiscal 2003. 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 decreased 22% to $0.21 per share, compared to $0.27 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, 2003, net direct finance and interest income of $4.6 million was essentially unchanged from the first quarter of the prior year. This result reflected a small increase in direct finance income and a small decrease in the provision for lease losses, which were offset by a decrease in interest and investment income. Lower investment income is due to the combined impact of lower yields on lower investment balances and the volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in short term interest rates during the quarter. Other income decreased 10% to $3.7 million, compared to $4.2 million reported for the first quarter of fiscal 2003. The decrease primarily reflects a decline in income from lease extensions, which offset slight increases in sales of leased property and other income. Based on the foregoing, gross profit of $8.3 million for the first quarter of fiscal 2004 decreased 6% from $8.8 million reported for the first quarter of the prior year. During the first quarter of fiscal 2004, CalFirst Bancorp's S,G&A expenses increased by 19% to $4.6 million, compared to $3.9 million reported for the first quarter of fiscal 2003. The increase reflects the expansion of the sales organization, which primarily occurred during the last nine months of fiscal 2003. When compared to the fourth quarter of fiscal 2003, S,G&A expenses were down 5%. Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated that: "During the first quarter, we began to see more benefits from our expansion in the sales organization. The volume of lease originations approved during the first quarter was almost double the volume of the comparable quarter of last year. 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 30% from a year before, and at the highest level seen in almost three years. The contribution from 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]. continues to be lower than in years past, although not substantially below the level reported for the first quarter of last year. This is due to the fact that the volume of leases reaching their end of term during fiscal 2004, while down substantially from fiscal 2002, is expected to be relatively unchanged from the volume realized during fiscal 2003." California First National Bancorp is a bank holding company with leasing and bank operations based in Orange County, Calif. California First Leasing Corporation 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 an 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 third parties. This press 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 Incorrect means to not be correct and may also refer to:
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 2003 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
(000's except per share data)
Three Months Ended
September 30,
2003 2002
Direct finance income $4,630 $4,577
Interest and investment income 93 316
Total direct finance and interest income 4,723 4,893
Interest expense on deposits 64 67
Provision for lease losses 78 180
Net direct finance and interest income
after provision for credit losses 4,581 4,646
Other income
Operating and sales-type lease income 1,173 1,789
Gain on sale of leases and leased property 2,332 2,204
Other income 225 163
Total other income 3,730 4,156
Gross Profit 8,311 8,802
Selling, general and administrative expenses 4,597 3,861
Earnings before income taxes 3,714 4,941
Income taxes 1,430 1,902
Net earnings $2,284 $3,039
Basic earnings per share $0.21 $0.27
Diluted earnings per share $0.21 $0.27
Weighted average common shares outstanding 10,934 11,112
Diluted number of common shares outstanding 11,072 11,415
CALIFORNIA FIRST NATIONAL BANCORP
Consolidated Balance Sheets
(000's)
ASSETS September June 30,
30, 2003 2003
(Unaudited) (Audited)
Cash and short term investments $ 69,968 $ 67,340
Federal Reserve Bank Stock 553 553
Net receivables 12,533 16,683
Property acquired for transactions in process 23,043 20,287
Net investment in capital leases 135,309 131,677
Other assets 2,484 2,095
Discounted lease rentals assigned to lenders 32,063 40,056
$275,953 $278,691
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $625 $1,598
Deferred income taxes, including income taxes
payable 20,500 22,385
Deposits 13,484 7,594
Other liabilities 10,806 9,781
Non-recourse debt 32,063 40,056
Total liabilities 77,478 81,414
Stockholders' Equity 198,475 197,277
$275,953 $278,691
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