CFNB Reports Second Quarter 2004 EPS of $.22.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)--Jan. 21, 2004 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 $2.5 million for the second quarter ended December December: see month. 31, 2003, a 15% decrease from net earnings of $2.9 million for the second 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 second quarter also decreased 15% to $0.22 per share, compared to $0.26 per share for the second quarter of the prior year. For the six months ended December 31, 2003, net earnings were down 20% to $4.8 million, compared to $5.9 million for the first six months of fiscal 2003. Earnings per share were $.43 for the first six months of fiscal 2004, down 17% from $.52 per share reported for the same period of fiscal 2003. For the second quarter ended December 31, 2003, gross profit of $8.9 million was down 2% from the second quarter of the prior year. This reflected a $513,000 decrease in net direct finance and interest income, which was offset by a $365,000 increase in other income. The decrease in net direct finance and interest income to $4.6 million is primarily due to lower direct finance income resulting from lower yields earned on the investment in capital leases, despite an increase in average balances, and lower investment and interest income earned on the Company's liquid investments. The provision for lease losses was relatively unchanged compared to the same quarter of the prior year, as the overall level of reserves required against problem leases did not increase during the period. The increase in other income to $4.2 million during the second quarter of fiscal 2003 primarily reflects a significant increase in the gain on sales of leased property. For the six months ending December 31, 2003, gross profit of $17.2 million decreased 4% from $17.8 million reported for the same period of the prior year. This decrease was primarily due to a $579,000 decrease in net direct finance and interest income. Total direct finance and interest income decreased 6% to $9.5 million, compared to $10.1 million for the first six months of fiscal 2003, reflecting a significant decrease in interest and investment income earned on liquid investments, along with lower direct finance income resulting from lower yields earned. The provision for lease losses decreased by $95,000 compared to the six-month period of the prior year, again reflecting the stable portfolio performance over the period. Other income was essentially unchanged at $8.0 million, as increased gains on sale of leased property offset lower income from sales-type leases Sales-type lease The leasing out of a firm's own equipment, such as a printing company leasing its own presses, thereby competing with an independent leasing company. . During the second quarter, CalFirst Bancorp's selling, general and administrative expenses ("S,G&A") expenses increased by 13% to $4.8 million, compared to $4.3 million during the second quarter of fiscal 2003. For the first six months, S,G&A expenses increased by 16% to $9.4 million compared to $8.2 million reported for the first six months of the prior year. The increase in S,G&A expenses for both periods is due to higher costs related to an expansion of the sales organization. Commenting on the results, Patrick E. Paddon, President and Chief Executive Officer, indicated that "During the first six months of fiscal 2004, CalFirst Bancorp began to see some results from our investment in developing our organization. The volume of new leases originated during the first six months increased by 50% when compared to the first six months of last year. Our 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 unbooked leases remains above $100 million, and the pace of new lease activity remains good. While our investment in capital leases did not grow over the first six months, our transactions in process did increase by 55%. In line with our forecast, the portfolio of leases reaching the end of term during fiscal 2004 is comparable to the prior year, and the Company's income from lease renewals and sales of leased property during the first six months is only slightly below last year. For the second quarter and six months ended December 31, 2003, CalFirst Bank recorded a small profit." 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 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 ("CalFirst 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 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. and the 2004 quarterly reports on Form 10Q.
CALIFORNIA FIRST NATIONAL BANCORP
Consolidated Statement of Earnings
(000's except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
Direct finance income $4,676 $4,946 $9,306 $9,524
Interest income on investments $118 $301 $211 $617
Total direct finance and interest
income $4,794 $5,247 $9,517 $10,141
Interest expense on deposits $115 $62 $180 $130
Provision for credit losses $45 $38 $123 $218
Net direct finance and interest
income after provision for credit
losses $4,634 $5,147 $9,214 $9,793
Other income
Operating and sales-type lease
income $1,272 $1,307 $2,445 $3,096
Gain on sale of leases and leased
property $2,818 $2,436 $5,150 $4,640
Other income $140 $122 $365 $285
Total other income $4,230 $3,865 $7,960 $8,021
Gross Profit $8,864 $9,012 $17,175 $17,814
Selling, general and
administrative expenses $4,850 $4,304 $9,446 $8,165
Earnings before income taxes $4,014 $4,708 $7,728 $9,649
Income taxes $1,545 $1,813 $2,975 $3,715
Net earnings $2,469 $2,895 $4,753 $5,934
Basic earnings per share $0.23 $0.26 $0.43 $0.53
Diluted earnings per share $0.22 $0.26 $0.43 $0.52
Weighted average common shares
outstanding 10,935 11,096 10,935 11,103
Diluted number of common shares
outstanding 11,118 11,327 11,096 11,385
CALIFORNIA FIRST NATIONAL BANCORP
Consolidated Balance Sheets
(000's)
ASSETS December 31, June 30,
2003 2003
(Unaudited) (Audited)
Cash and short term investments $66,261 $67,340
Federal Reserve Bank Stock 553 553
Net receivables 3,428 1,964
Property for transactions in process 31,474 20,287
Net investment in capital leases 146,343 146,396
Other assets 2,350 2,095
Discounted lease rentals assigned to lenders 23,421 40,056
$273,830 $278,691
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $1,131 $1,598
Income taxes payable, including deferred taxes 17,374 22,385
Deposits 20,849 7,594
Other liabilities 11,087 9,781
Nonrecourse debt 23,421 40,056
Total liabilities 73,862 81,414
Stockholders' Equity 199,968 197,277
$273,830 $278,691
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