Credit Depot Announces Improved Fiscal 1997 Second Quarter Results.GAINESVILLE Gainesville. 1 City (1990 pop. 84,770), seat of Alachua co., N central Fla.; inc. 1869. The Univ. of Florida is a major source of employment in the city. Agriculture and the manufacture of electronic equipment add to the economy. , GA--(BUSINESS WIRE)--JANUARY 30, 1997--Credit Depot Corporation (Nasdaq: LEND) today announced financial results for the fiscal 1997 second quarter and six months ended December December: see month. 31, 1996. For the fiscal 1997 second quarter ended December 31, 1996, revenues increased sharply to $2,194,418 from $190,168 reported a year ago. An operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (income before taxes) of $123,948 was recorded in the fiscal 1997 second quarter compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1,371,078 incurred in the same period a year ago. Net income for the quarter was also $123,948, or $(0.00) per share after preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends, compared to a net loss of $1,371,078, or $0.44 per share after preferred stock dividends, recorded in the similar period a year ago. For the six months ended December 31, 1996, revenues increased sharply to $3,578,130 from $630,144 recorded in the fiscal 1996 first half. The operating loss narrowed sharply to $150,245 in the fiscal 1997 first half from $2,284,934 in the like period a year ago. The net loss in the fiscal 1997 first half also equaled $150,245 versus the year ago loss of $2,284,934. After preferred stock dividends, the losses were equal to $0.12 and $0.71 in the 1997 and 1996 periods respectively. Per share results in the 1997 and 1996 second quarter and first half are based on 3,660,861 and 3,378,761, and 3,519,811 and 3,378,761 weighted average shares outstanding in the respective periods. The Company made no provision for income taxes as a result of the financial effect of prior years tax loss carry-forwards. The improvement in operating results in the fiscal 1997 second quarter and first half reflects principally an increase in 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. of approximately 54% from the fiscal 1997 first quarter and 170% from the fiscal 1996 second quarter, as the Company began to realize the benefits of its expanded marketing programs, and increased profit margins arising from the new securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. program. Gains on sales of mortgage loans in the 1997 fiscal second quarter sharply increased to $2,018,000 from $4,000 in the comparable period a year ago due to the increased volume of loan sales and increased profit margins on these sales. Gerald F. Sullivan Sr., President and Chief Executive Officer, stated: "We are pleased by our results for the fiscal 1997 second quarter and first half. The results are a tangible measure of the continuing successful implementation of our operating plan. "In the fiscal 1997 first half, we completed a $9 million convertible debt offering and agreed to provide $125 million of sub-prime first mortgage residential loans for inclusion in the securitizations of a large institution. Both of these events have provided Credit Depot with additional liquidity and operating flexibility to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the growth opportunities in the sub-prime residential real estate market. Credit Depot Corporation is a multi-state financial services 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. Company that provides residential real estate financing to individuals unable to secure loans through conventional sources. The Company operates in 14 states. These loans are collateralized by mortgages, primarily on owner-occupied residential properties. "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. " Statement under 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: The statements in this press release regarding matters that are not statements of historical fact, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, strategies, expectations and future economic results, are 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. within the meaning of Section 21E of the Securities Exchange Act of 1934, as 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. . Actual results may differ materially from the statements made, as a result of various factors, including risks associated with the Company's mortgage loan investments, such as the risks of defaults on mortgage loans, economic and other factors which impact real estate values and prevailing interest rates, the Company's ability to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. a sufficient volume of mortgage loans, the Company's ability to resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. the mortgage loans in the secondary market, and other factors which are listed from time to time in the Company's Securities and Exchange Commission filings. -0-
Credit Depot Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1996 1995 1996 1995
Revenues:
Finance income and
fees earned $ 109,254 $ 188,831 $ 260,550 $ 295,494
Gain on sale of
receivable 2,018,212 4,482 3,284,266 308,342
Other 66,952 (3,145) 33,314 26,308
2,194,418 190,168 3,578,130 630,144
Expenses:
Salaries and
employee benefits 915,987 648,516 1,661,674 1,271,894
Legal and
professional fees 97,986 72,556 194,697 180,600
Other operating
expenses 612,340 653,312 1,098,596 1,079,906
Provision for
credit losses 45,000 25,000 65,000 75,000
Interest expense and
amortization of
financing costs 399,157 161,862 708,408 307,678
2,070,470 1,561,246 3,728,375 2,915,078
Income (loss) before
provision for income
taxes 123,948 (1,371,078) (150,245) (2,284,934)
Provision for income
tax - - - -
Net income (loss) $ 123,948 $ (1,371,078) $ (150,245) $(2,284,934)
<
Dividends on
preferred stock 141,750 127,677 285,750 127,677
Net loss per share
common stock $ (0.00)$ (0.44) $ (0.12) $ (0.71)
Weighted average
shares outstanding 3,660,861 3,378,761 3,519,811 3,378,761
CONTACT: Credit Depot Corporation Gerald F. Sullivan / Charles Farrahar (770) 531-9927 or Kehoe, White, Savage & Company, Inc. John P. Kehoe / Van Negris (212) 888-1616 |
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