Desert Capital REIT, Inc. Announces Third Quarter 2005 Results.HENDERSON Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , Nev. -- First graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. , first sentence: net loss per share amount should read $0.30 (sted $0.18). First graph, second sentence: net loss per share amount should read $1.45 (sted $0.34). The corrected release reads: DESERT CAPITAL REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . ANNOUNCES THIRD QUARTER 2005 RESULTS Desert Capital REIT, Inc. today announced that its net income for the third quarter of 2005 totaled $1,311,625 or $0.25 per share, as compared to a net loss of $71,979 or $0.30 per share reported for the third quarter of 2004. Net income for the nine months ended September September: see month. 30, 2005, totaled $2,933,409, or $0.78 per share, as compared to a net loss of $136,834 or $1.45 per share for the same period in 2004. Total revenues for the quarter ended September 30, 2005, totaled $4.1 million, as compared to $64,557 in the same period in 2004. Interest income for the third quarter was $1.3 million, as compared to $64,557 reported for the same period in 2004. For the nine months ended September 30, 2005, total revenues and interest income were $12.5 million and $2.9 million respectively. Total revenues and interest income for the same period in 2004 were $64,557 and $64,557 respectively. Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. B. Parriott, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and Chairman of the Board of Directors of Desert Capital REIT, Inc., said, "This has been a tremendous quarter for our company. With the recent consolidation of all of our business divisions to our new corporate headquarters and the completed acquisition of Consolidated Mortgage consolidated mortgage A mortgage made to replace two or more outstanding mortgages. , now a wholly-owned subsidiary of Desert Capital REIT, we are in a solid financial position moving into the fourth quarter and look for continued growth across all segments of our business." Portfolio Activity During the third quarter of 2005, DCR DCR Department of Conservation and Recreation DCR Decrease DCR Digital Cable Ready (television) DCR Dark Crisis (Yu-Gi-Oh! cards) DCR Debt Coverage Ratio DCR Dacryocystorhinostomy funded all or a portion of 52 loans totaling $35.6 million. Of the new loans, 32 were acquisition and development loans totaling $29 million, and 20 were construction loans totaling $6.6 million. At September 30, 2005, DCR's loan portfolio balance was $47.3 million, with an average interest rate of 12.5%. Subsequent to the Quarter End DCR purchased an additional 22% of the outstanding equity of Consolidated Mortgage LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , bringing its ownership of Consolidated Mortgage to 100%. Consolidated Mortgage is a mortgage broker whose principal business activity is the 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 and servicing of mortgage loans for DCR and over 3,000 private investors. Earnings Guidance Based on the current expectations of management, DCR expects earnings per share for the fourth quarter of 2005 to be between $0.31 and $0.34 per share, and be between $1.09 and $1.12 per share for the full-year 2005. About Desert Capital REIT, Inc. Desert Capital REIT, Inc., is a Henderson, Nev.-based real estate investment trust that invests in loans to owners and developers of real estate properties. Formed in December December: see month. 2003, Desert Capital's portfolio of mortgage loans consists of acquisition and development, construction, commercial property and residential loans. For more information, please call 800-419-2855 or visit www.desertcapitalreit.com. About Consolidated Mortgage, LLC With more than 27 years of continuous real estate investment success, Consolidated Mortgage, LLC is one of the largest private trust deed A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. investment firms in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , with over $340 million in currently brokered loans. The company is located at 1291 Galleria Drive, Suite 220, Henderson, NV 89104. For information, please call 702-739-9090. 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 Statements included herein that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements within the meaning of 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 which, by their nature, involve known and unknown risks and uncertainties. The company's actual results, performance or achievements could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements.
Consolidated Statements of Operations
(Unaudited)
Three Months Nine Months
Ended September, 30 Ended September 30,
------------------- --------------------
2005 2004 2005 2004
---- ---- ---- ----
INTEREST INCOME:
Mortgage notes receivable $1,202,034 - $2,746,415 -
Other interest 59,520 64,557 133,324 64,557
------------------- --------------------
Total interest income 1,261,554 64,557 2,879,739 64,557
INTEREST EXPENSE:
Interest expense 289,428 13,401 790,735 13,401
------------------- --------------------
Total interest expense 289,428 13,401 790,735 13,401
Net interest income 972,126 51,156 2,089,004 51,156
Provision for loan
losses 13,739 4,589 41,345 4,589
Net interest income after
provision for loan loss 958,387 46,567 2,047,659 46,567
NON-INTEREST INCOME:
Loan brokerage fees 2,350,262 - 7,769,711 -
Service and other loan
fees 385,439 - 1,750,241 -
Other 66,978 - 133,609 -
------------------- --------------------
Total non-interest
income 2,802,679 - 9,653,561 -
NON-INTEREST EXPENSE:
Compensation 475,000 43,993 1,412,455 91,993
Management fees 816,764 5,606 2,562,539 5,606
Professional fees 378,501 - 1,363,305 -
Insurance 99,780 51,000 328,911 51,000
Other 329,990 17,947 953,822 34,804
------------------- --------------------
Total non-interest
expense 2,100,035 118,546 6,621,032 183,403
------------------- --------------------
Net income before taxes 1,661,031 (71,979) 5,080,188 (136,836)
Income tax expense 89,662 - 451,678 -
Income before minority
interest 1,571,369 (71,979) 4,628,510 (136,836)
Income allocated to minority
interest 259,744 - 1,695,101 -
------------------- --------------------
Net income $1,311,625 (71,979) $2,933,409 (136,836)
=================== ====================
Net earnings (loss) per share
-- basic and diluted 0.25 (0.30) 0.78 (1.45)
Weighted average outstanding
shares 5,271,441 243,068 3,764,800 94,356
Consolidated Balance Sheets
September December
30, 2005 31, 2004
----------- -----------
(Unaudited)
ASSETS
Mortgage investments -- net $47,216,340 $17,217,116
Goodwill 10,576,657 -
Building and equipment -- net 8,283,548 180,000
Land 1,820,000 -
Cash 5,644,877 2,375,309
Investment in subsidiary - 3,501,047
Other 532,116 281,882
----------- -----------
Total assets $74,073,538 $23,555,354
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $12,162,097 $ 6,322,139
Accounts payable and accrued expenses 1,802,460 450,227
----------- -----------
Total liabilities 13,964,557 6,772,366
----------- -----------
Minority interest 409,831 -
Preferred stock, $0.01 par value: 15,000,000
shares authorized, none outstanding - -
Common stock, $0.01 par value: 100,000,000
shares authorized; 6,848,583, and 1,996,386
shares issued and outstanding on September
30, 2005, and December 31, 2004,
respectfully 68,486 19,964
Additional paid-in capital 59,889,997 16,782,200
Retained earnings (259,333) (19,176)
----------- -----------
Total stockholders' equity 59,699,150 16,782,988
----------- -----------
Total liabilities and stockholders' equity $74,073,538 $23,555,354
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