Case Financial, Inc. Reports 1st Quarter Results; Company Positioned To Launch Comprehensive New Litigation Finance Program In Q2.Business Editors SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Feb. 25, 2003 Case Financial, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CSEF CSEF Committee for Safe Energy Future ), announced financial results for the first quarter ended December 31, 2002. Revenues for the three months ended December 31, 2002 were $139,404, a decrease of $171,937 or 55 percent, loss from operations totaled ($504,814) and the Company reported a net loss of ($555,536), or ($0.04) per share, as compared with revenues for the three-month year ended December 31, 2001 of $311,341, a loss from operations of ($59,483) and a net loss of ($385,948) or ($0.11) per share. Eric A. Alden, Chief Executive Officer said, "There was a 55 percent decline in revenue from December 31, 2001 to December 31, 2002 resulting from the fact that most of the portfolio from which revenues were generated was not acquired in the reverse acquisition. Current revenue is derived from a new portfolio created with the capital obtained in the reverse acquisition last May and the $2.2 million recently raised. It's important to note that as of December 31, 2002, we have estimated unrecorded income of $1,550,000 on this new portfolio which we will recognize as the underlying cases are resolved (generally nine to twelve months following funding). It should also be noted that we realized a $273,000, or 83%, reduction in interest expense compared with December 2001 as a result of eliminating substantial long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. in the reverse acquisition. "Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter ended December 31, 2002 included legal and accounting charges for the annual audit and for the change in fiscal year end to September 30, as well as legal and other costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc raising $2.2 million of debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . None of these costs were present in the same quarter last year. Sales and marketing expenses, however, increased over last year consistent with our focus on new customer acquisition and product development activities," Alden continued. "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , during the quarter we finalized the details for the launch in Q2 of a comprehensive new litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. financing program in development for several quarters. In sum, we ended the quarter with a strong cash position resulting from the $2.2 million of new financing, and we have a solid foundation from which to continue our growth in 2003." The Company also reported that as of February 1, its Chief Financial Officer has moved from full to part time status, and will continue to serve the company on an interim basis in the capacity of "acting" CFO See Chief Financial Officer. . Founded in 1998, Case Financial is one of California's leading litigation funding Litigation funding is a practice in which individuals who are plaintiffs in lawsuits receive money from firms and individuals who take a lien on the proceeds of a personal injury suit in return for ready cash. companies, providing pre-settlement advances to law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for certain forward-looking statements. The statements contained in this news release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. The forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. These factors include, without limitation, the Company's lack of profitability, the Company's need for future financing, the Company's relatively brief operating history, the uncertainty of litigation outcomes, the length of the Company's collection cycle, the Company's ability to collect upon the judgment recovery, future legislation including tort reform that may potentially affect the Company's business, and the acceptance of future new programs the Company may introduce. For a detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's filing with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FINANCIAL HIGHLIGHTS
Three-Months Ended Three-Months Ended
December 31, December 31,
2001 2002
Revenues $ 311,341 $ 116,988
Net (Loss) from Operations (59,481) (504,814)
Net (Loss) (385,948) (555,536)
(Loss) Per Share Basic &
Diluted (0.11) (0.04)
Weighted Avg. Shares
Outstanding 3,400,543 15,561,108
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion