Cityscape announces adjustments for changes in accounting treatment in connection with second quarter acquisitions.ELMSFORD, N.Y.--(BUSINESS WIRE)--Nov. 19, 1996--Cityscape Financial Corp. (Nasdaq:CTYS CTYS Chat to You Soon ) announced today that it has revised its previously issued financial statements for the periods ended June June: see month. 30, 1996 and September September: see month. 30, 1996 to reflect certain additional changes in the accounting treatment used in connection with the second quarter 1996 acquisitions of 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. Finance Group ("Heritable") and J&J Securities Limited ("J&J"). Specifically, the accounting changes result in the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. to goodwill of $5.0 million of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. expensed and $17.3 million in deferred tax assets recorded in the 1996 second quarter. These changes resulted in an increase in the amount of goodwill recorded in connection with the acquisitions to $30.6 million from $10.6 million. As a result of these adjustments, second quarter net earnings increased by $2.8 million or $0.08 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 $8.3 million or $0.27 per fully diluted share, to $11.1 million or $0.35 per fully diluted share. Further, as a result of these adjustments, the increase in goodwill amortization recorded during the third quarter of 1996 resulted in a decrease in net income of $502,150, or $0.02 per fully diluted share to $14.4 million or $0.43 per fully diluted share from the previously reported $14.9 million or $0.45 per fully diluted share. For the nine months ended September 30, 1996, net income increased $2.3 million to $34.8 million or $1.11 per fully diluted share from the previously announced results of $32.5 million or $1.04 per fully diluted share. In connection with the increase in goodwill 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. will record a $502,150 per quarter increase in amortization expense through the first quarter of 2006. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Grosser, Cityscape's President and Chief Executive Officer, said, "As previously disclosed on September 26, 1996, the Company announced certain adjustments to the accounting treatment used in connection with the Heritable and J&J acquisitions. Upon further review of such accounting treatment, and after discussion with the Company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. , we determined that these additional accounting adjustments are necessary and appropriate; however, it is important to note that the adjustments relate to these two acquisitions only, and not to the core operations of the Company." Cityscape Financial Corp. is a consumer finance company which, through its wholly-owned subsidiaries, Cityscape Corp. and City Mortgage Corporation Limited, is engaged in the business of originating, purchasing, selling and servicing home equity mortgage loans, secured primarily by one-to-four-family residences, 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 United Kingdom. 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 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). , 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). . Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. tables follow. -0-
CITYSCAPE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited) (As Revised)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
REVENUES:
Gain on sale of loans $29,217 $8,592 $53,310 $12,471
Mortgage origination income 1,356 785 2,192 1,405
Interest 6,461 1,068 9,478 2,134
Servicing income 795 74 1,356 99
Earnings from partnership 110 197 260 431
Other 514 31 636 43
Total revenues 38,453 10,747 67,232 16,583
EXPENSES:
Salaries and benefits 9,170 2,282 14,553 4,084
Interest expense 4,684 1,393 6,382 2,333
Selling expenses 3,012 607 4,375 918
Other operating expenses 1,980 1,656 6,025 2,690
Amortization of goodwill 708 --- 1,202 ---
Total expenses 19,554 5,938 32,537 10,025
Earnings before minority
interest and income taxes 18,899 4,809 34,695 6,558
Minority interests -- 846 -- 846
Earning before income taxes 18,899 3,963 34,695 5,712
Provision for income taxes 7,773 1,585 14,296 2,285
Net earnings $11,126 $2,378 $20,399 $3,427
Earnings per share(1)
Primary $0.37 $0.11 $0.68 $0.16
Fully diluted $0.35 N/A $0.66 N/A
Weighted average number of
shares and common stock
equivalents outstanding(1)
Primary 30,452 22,082 30,152 22,082
Fully diluted 33,842 N/A 31,941 N/A
(1) All share results give effect to 2-for-1 stock splits effected
September 29, 1995, and July 1, 1996.
CITYSCAPE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited) (As Revised)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
REVENUES: (Audited)
Gain on sale of loans $45,328 $11,775 $98,637 $23,772
Mortgage origination income 467 815 2,659 2,220
Interest 7,502 1,536 16,981 3,670
Servicing income 1,046 211 2,401 309
Earnings from partnership -- 319 260 750
Other 3,927 78 4,564 121
Total revenues 58,270 14,734 125,502 30,842
EXPENSES:
Salaries and benefits 10,736 3,653 25,288 7,910
Interest expense 5,530 947 11,912 2,769
Selling expenses 9,343 519 13,718 1,275
Other operating expenses 6,479 1,670 12,504 4,386
Amortization of goodwill 1,272 --- 2,474 ---
Total expenses 33,360 6,789 65,896 16,340
Earnings before minority interest
and income taxes 24,910 7,945 59,606 14,502
Minority interest -- 1,534 -- 2,379
Earnings before income taxes 24,910 6,411 59,606 12,123
Income taxes 10,495 2,625 24,792 4,910
Net earnings $14,415 $3,786 $34,814 $7,213
Earnings per share(1)
Primary $0.47 $0.17 $1.14 $0.32
Fully diluted $0.43 N/A $1.11 N/A
Weighted average number of
shares and common stock
equivalents outstanding(1)
Primary 30,914 22,417 30,431 22,417
Fully diluted 36,390 N/A 33,424 N/A
(1) All share results give effect to 2-for-1 stock splits effected
September 29, 1995, and July 1, 1996.
CITYSCAPE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
At September 30, At December 31,
1996 1995
(Unaudited) (Audited)
(As Revised)
Assets
Cash and cash equivalents $4,665 $3,599
Cash held in escrow 3,613 5,920
Prepaid commitment fees 36,547 ---
Available-for-sale securities 13,964 ---
Mortgage servicing receivables 166,922 24,561
Trading securities 79,487 15,571
Mortgages held for sale, net 133,728 73,852
Mortgages held for investment, net 5,388 1,024
Equipment and leasehold improvements, net 10,791 2,381
Goodwill 47,921 19,258
Other assets 47,103 6,353
Total Assets $550,129 $152,519
Liabilities
Warehouse financing facilities $102,817 $74,902
Accounts payable and other liabilities 53,365 16,411
Allowance for loan losses 15,629 2,131
Income taxes payable 45,579 1,205
Standby financing facility 7,966 771
Notes payable 68,000 ---
Convertible subordinated debentures 143,750 ---
Total Liabilities 437,106 95,420
Stockholders' Equity
Total Stockholders' Equity 113,023 57,099
Total Liabilities and Stockholders'
Equity $550,129 $152,519
CONTACT: Cityscape Financial Corp., Elmsford 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, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Michele Michele murders wife’s lover; hides body under cloak. [Ital. Opera: Puccini, The Cloak, Westerman, 362–363] See : Murder Katz/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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