Cityscape Financial Corp. reports record earnings for fourth quarter and 1996.ELMSFORD, N.Y.--(BUSINESS WIRE)--March 3, 1997-- -- Cityscape (company) CityScape - A re-seller of Internet connections to the PIPEX backbone. E-Mail: <sales@cityscape.co.uk>. Address: CityScape Internet Services, 59 Wycliffe Rd., Cambridge, CB1 3JE, England. Telephone: +44 (1223) 566 950. also announces key appointments -- Cityscape Financial Corp. (Nasdaq:CTYS CTYS Chat to You Soon ) today reported record earnings on sharply higher revenues for the fourth quarter and year ended December 31, 1996. Earnings before extraordinary items increased 238% to $15.9 million during the fourth quarter of 1996 or $0.48 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $4.7 million or $0.18 per share in the fourth quarter of 1995. There were 36.3 million weighted average fully diluted common shares and common stock equivalents for the fourth quarter of 1996, compared to 26.1 million shares a year ago. For the year, earnings before extraordinary item increased 326% to $50.7 million or $1.59 per fully diluted share, from $11.9 million or $0.50 per share for the year ended 1995. There were 34.2 million weighted average fully diluted common shares and common stock equivalents for 1996, compared to 23.8 million shares for 1995. Net earnings for 1995 reflect an extraordinary charge of approximately $296,000 (net of tax) related to the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Revenues increased 294% to $73.7 million during the fourth quarter of 1996, from $18.7 million in the same quarter a year ago. For the year, revenues were up 302% to $199.2 million, from $49.5 million for 1995, driven primarily by increased originations and new product offerings. Domestic loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. totaled $363.6 million during the quarter and $1.3 billion for the year, a significant increase over $146.2 million in the same quarter a year ago and $417.9 million for all of 1995. Cityscape's UK operations recorded $85.7 million in originations for the fourth quarter and $463.5 million for the year (including $242.4 million of loans acquired as a result of the J&J Securities Limited ("J&J") and Heritable her·i·ta·ble adj. 1. Capable of being passed from one generation to the next; hereditary. 2. Capable of inheriting or taking by inheritance. Group Limited ("Heritable") acquisitions), compared to $20.0 million in the prior year quarter and $41.4 million for 1995. Cityscape commenced operations in the UK in May 1995. Broker originations and wholesale loan originations increased during the quarter and the year, demonstrating Cityscape's focus on growing its diversified diversified (di·verˑ·s origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real networks. For 1996, broker originations totaled $548.3 million representing 43% of the Company's total US loan origination volume, and wholesale originations were $741.1 million (including $129.1 million of bulk purchases) for the year or 57% of total US originations. For the quarter, broker originations totaled $170.8 million or 47% of total US originations, and wholesale originations were $192.8 million or 53% of total US originations. "We are very pleased with our results for the quarter and for the year," commented Cityscape's Chief Executive Officer, Robert Grosser. "Our performance particularly reflects the success we've had in broadening our core business, both domestically and abroad, and we are adding new products to take advantage of the demand in our markets. I believe that those factors, combined with our successful efforts to increase our financial flexibility, position us well for continued growth in 1997." Cityscape continued to expand geographically throughout 1996, extending its operations from 31 states at the end of 1995 to 42 states as of December 31, 1996. As the Company has grown, it also has significantly broadened its product line to where it now includes a host of distinctive loan products. Cityscape's Sav*-A-Loan(R) home improvement and debt consolidation product, which was introduced during the first quarter of 1996, grew significantly during the fourth quarter. During the fourth quarter of 1996, the Sav*-A-Loan(R) program generated $89.0 million in loans at a weighted average coupon Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. of 14.5%. Borrowers qualify for the Sav*-A-Loan(R) program with a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. credit profile and demonstrated income stability. The Company also announced the formation of a Conventional Lending Unit. This new unit will offer conventional loans by leveraging the Company's existing relationships with its brokers and correspondents and commenced operations in the first quarter of 1997. "The Sav*-A-Loan(R) program demonstrates our ability to effectively and efficiently introduce new loan products to our nationwide origination network," Mr. Grosser remarked. "We are confident that the new Conventional Lending Unit will be successful given the high demand that we are seeing in our markets for that type of product." In the UK, City Mortgage Corporation Limited ("CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled. 1. "), Cityscape's wholly-owned UK subsidiary, has successfully utilized direct mail and telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. to target Council tenants who qualify to buy their houses at a significant discount to market value under the "Right to Buy" UK legislation. CMC, in cooperation with a leading UK mortgage broker, also began marketing its loan products through television advertising. The Company believes that this is the only advertising campaign of its kind utilizing UK television. Additionally, CMC commenced use of predictive dialing during the fourth quarter to enhance the Company's servicing results. CMC now services approximately 30,000 loans. HIGHLIGHTS OF THE QUARTER -- Cityscape's new regional processing center in Anaheim, California “Anaheim” redirects here. For Annaheim, see Annaheim, Saskatchewan. Anaheim is a city in Orange County, California, located 28 miles southeast of Los Angeles. was brought fully on-line and furthered the development of the Company's West Coast presence. 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). is the most significant single market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and the Company expects to see growth in originations coming from the Anaheim office during 1997. -- Cityscape began to benefit fully from its new servicing center in Hawthorne, New York Hawthorne is an unincorporated hamlet and census-designated place (CDP) located in the town of Mount Pleasant in Westchester County, New York. The population was 7,083 at the 2000 census. History Much of Hawthorne was once known as Sherman Park. . This facility consolidates all of the Company's US servicing activities into one main center. The new office is equipped with the advanced, highly efficient ALLTEL servicing system, which is now operational. -- The Company completed a puo CMC, offering CMC the right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. on these brokers' non-conforming loan A non-conforming loan is a loan that fails to meet bank criteria for funding. Reasons include the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it. business. Mr. Grosser commented, "We are very pleased with the strides CMC has made in penetrating penetrating breaching the tissues of the body. the UK market. CMC's actions illepresenting 2.6% of total loans serviced. "We continue to monitor closely the percentage of our US serviced portfolio that is 30 or more days delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. and have seen 30 days or more delinquencies decline to 8.1% of our serviced portfolio as of the end of January," commented Mr. Grosser. "We are generally pleased with the improvement in our servicing operations and the transition to our new servicing system. The end of the year is typically a difficult period for collections, but we have made important progress in bringing our new servicing system on-line, and we are now utilizing some of the advanced capabilities of our new servicing and collection software." KEY APPOINTMENTS In a separate press release, Cityscape today announced the following appointments: -- Mr. Steven M. Miller has been appointed Managing Director. Mr. Miller's responsibilities will include direction of the Company's securitizations and capital markets and strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. activities. He comes to Cityscape from Greenwich Capital Markets, Inc. where he served as Senior Vice President and Co-Head of the Asset Backed Group. -- Mr. Glenn R. Dinetz has been appointed Chief Information Officer, responsible for development, implementation and oversight
Oversight may refer to:
KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Peat Marwick s Enabling Technologies Practice. Cityscape Financial Corp. is a consumer finance company that, through its wholly-owned subsidiaries, Cityscape Corp. and City Mortgage Corporation Limited, is engaged in the business of originating, purchasing, selling and servicing mortgage loans in the United States and the United Kingdom, secured primarily by one- to four-family residences. Cityscape was founded in 1985 and is headquartered in Elmsford, New York Elmsford is a village in Westchester County, New York, United States. The population was 4,676 at the 2000 census. As a village, it is located in the Town of Greenburgh. The village is named after a large elm tree that once grew in the community. , with regional processing offices in California, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . -0-
CITYSCAPE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Year Ended
Ended
December 31, December 31,
1996 1995 1996 1995
REVENUES:
Gain on sale of loans $57,615 $14,426 $156,252 $38,198
Mortgage origination 133 743 2,791 2,963
income
Interest 12,323 3,035 29,304 6,706
Servicing income 1,349 468 3,750 777
Other 2,294 (5) 7,118 867
Total revenues 73,714 18,667 199,215 49,511
EXPENSES:
Salaries and benefits 15,563 4,255 40,852 12,165
Interest expense 8,312 1,841 20,224 4,610
Selling expenses 10,172 1,620 23,889 2,895
Other operating 12,863 2,195 25,367 6,582
expenses
Amortization of 1,301 494 3,775 494
goodwill
Total expenses 48,211 10,405 114,107 26,746
Earnings before
minority interest, 25,503 8,262 85,108 22,765
income taxes and
extraordinary item
Minority interest --- --- --- 2,379
Earnings before income 25,503 8,262 85,108 20,386
taxes and
extraordinary item
Provision for income 9,636 3,605 34,427 8,515
taxes
Earnings before 15,867 4,657 50,681 11,871
extraordinary item
Loss from
extinguishment of --- 296 --- 296
debt,
net of taxes
Net earnings $15,867 $4,361 $50,681 $11,575
Primary earnings per share (a):
Earnings per share
before extraordinary
item $0.51 $0.18 $1.66 $0.50
Extraordinary item --- (0.01) --- (0.01)
(per share)
Net earnings per share
$0.51 $0.17 $1.66 $0.49
Fully diluted earnings $0.48 N/A $1.59 N/A
per share
Weighted average
number of shares and
common stock
equivalents
outstanding (a)
Primary 30,818 26,076 30,538 23,838
Fully diluted 36,334 N/A 34,153 N/A
(a) All share results give effect to the 100% stock dividends
paid in September 1995 and July 1996.
CITYSCAPE FINANCIAL CORP.
SELECTED OPERATING DATA
(Dollars in millions)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
ORIGINATION & SALE DATA:
Loans originated and
purchased:
US (a) $363.6 $146.2 $1,289.4 $417.9
UK 85.7 20.0 463.5(b) 41.4
Total $ 449.3 $166.2 $1,752.9 $459.3
Loan origination by channel:
(US only)
Wholesale $ 192.8 $85.6 $741.1 $126.0
Broker 170.8 60.6 548.3 291.9
Total $ 363.6 $ 146.2 $1,289.4 $417.9
Loans sold:
US $ 379.1 $ 126.5 $1,277.5 $359.0
UK 110.9 20.1 451.9(c) 41.4
Total $ 490.0 $ 146.6 $1,729.4 $400.4
As of December 31,
1996 1995
PORTFOLIO DATA:
Loans serviced portfolio
US(d) $1,470.3 $ 311.6
UK 511.1 40.3
Total $1,981.4 $ 351.9
Total delinquencies
US 8.92% 3.89%
UK (e) 15.40% 8.53%
(a) As of December 31, 1996 and 1995, the Company was licensed or
registered in 42 and 31 states, respectively.
(b) Includes $51.9 million and $190.5 million of loans acquired
as a result of the J&J and Heritable acquisitions.
(c) Includes the sale of $51.1 million and $179.2 million of
loans acquired as a result of the J&J and Heritable acquisitions.
(d) Excludes loans serviced pursuant to contract servicing and
master servicing agreements.
(e) The Company has only been servicing loans in the UK since May
1995; accordingly, the UK loan serviced portfolio is unseasoned.
CITYSCAPE FINANCIAL CORP.
SELECTED BALANCE SHEET DATA
(In thousands)
December 31,
1996 1995
Total assets $ 820,273 $ 152,519
Goodwill 47,467 19,258
Total debt 377,651 75,673
Total liabilities 674,794 95,420
Total stockholders 145,479 57,099
equity
-0- CONTACT: Cityscape Financial Corp. Robert C. Patent, EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition Tim S. Ledwick, CFO See Chief Financial Officer. 914/592-6677 or Morgen-Walke Associates Michele Katz/ Geoffrey Buscher/Jason Langer Press: Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich/Elisabeth Philippe 212/850-5600 |
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