Credit Depot announces fiscal 1997 third 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)--May 12, 1997--Credit Depot Corporation (Nasdaq: LEND) today announced that the net loss for the three and nine months ended March 31, 1997 was $(872,038) and $(1,022,283), or $(0.27) and $(0.40) per share, respectively, 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. The Company had previously reported a net loss for the three and nine months ended March 31, 1996 of $(474,302) and $(2,759,236), or $(0.18) and $(0.90) per share after preferred stock dividends, respectively. The Company had reported net income of $123,948, or $0.00 per share after preferred stock dividends in the 1997 second quarter. Revenues for the 1997 three and nine month periods were $1,394,992 and $4,973,122, respectively, compared to $1,138,190 and $1,768,334 in the similar periods a year ago. The net loss for the quarter resulted primarily from increases in interest rates during the quarter that reduced the Company's gain on sale; the fact that a higher portion of loan production during the quarter consisted of bulk purchases which resulted in lower profit margins on sales than originated loans; increased overhead resulting from recent expansion of the Company's operations; and liquidity pressures which adversely affected the volume of loans originated during the quarter. The Company stated that its agreement with a national financial institution to purchase loans from Credit Depot and the receipt of approximately $1.5 million of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). in a recently completed private placement of preferred stock and warrants improved its liquidity. However, the Company continues to require additional equity capital or a warehouse financing facility to increase loan volume in order to improve operating results and is seeking such financing. 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 adj. 1. lived in by the owner; - of dwellings. Adj. 1. owner-occupied - lived in by the owner; "one owner-occupied and three rental apartments" inhabited - having inhabitants; lived in; "the inhabited regions of the earth" residential properties. -0- "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 Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
Revenues:
Finance income and
fees earned $ 16,991 $ 332,128 $ 277,541 $ 627,622
Gain on sale of
receivable 1,370,208 754,402 4,654,474 1,062,744
Other 7,793 51,660 41,107 77,968
1,394,992 1,138,190 4,973,122 1,768,334
Expenses:
Salaries and
employee benefits 1,079,988 712,477 2,741,662 1,984,371
Legal and professional
fees 173,749 55,782 368,446 236,382
Other operating expenses 638,280 532,084 1,736,876 1,433,571
Provision for credit
losses 10,000 - 75,000 75,000
Interest expense and
amortization of deferred
financing costs 365,013 312,149 1,073,421 798,246
2,267,030 1,612,492 5,995,405 4,527,570
Income (loss) before
provision for
income taxes (872,038) (474,302) (1,022,283) (2,759,236)
Provision for income tax - - - -
Net income (loss) $ (872,038) $ (474,302) $(1,022,283) $(2,759,236)
Dividends on preferred
stock 141,750 144,000 427,500 271,677
Net loss per share
common stock $ (0.27) $ (0.18) $ (0.40) $ (0.90)
Weighted average shares
outstanding 3,753,328 3,378,761 3,594,539 3,378,761
CONTACT: Credit Depot Corporation Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. 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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