EquiFin Reports Filing of Results for the Second Quarter and the Continued Expansion of Portfolio Assets.Business Editors SPRING LAKE, N.J.--(BUSINESS WIRE)--Aug. 18, 2003 EquiFin, Inc. (the "Company")(AMEX AMEX See: American Stock Exchange :II and II,WS) a commercial finance company which provides structured credit to small and mid-size business enterprises throughout 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. , today reported its results for the second quarter of 2003 which closed on June June: see month. 30, 2003. For the three months ended June 30, 2003, EquiFin reported revenues from fees and interest charges of $514,000 from its structured credits, compared with revenues of $299,000 from these finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. for the three months ended June 30, 2002. The Company had a loss from operations of $434,000 for the quarter ended June 30, 2003, as compared to a loss of $456,000 for the same quarter in 2002. This resulted in a per share loss in the second quarter of each year of ($.06). The loss from the Company's operations in the second quarter of 2003 continues to reflect significant operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for professional fees and management personnel that are necessary even during the Company's early stage of development as a commercial finance company. Also, during the second quarter ended June 30, 2003 unusual expenses ($44,000) associated with changes to the Company's senior loan facility, together with other nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. expenses ($41,000) which were not incurred during the second quarter of 2002. For the six months ended June 30, 2003, revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $922,000, compared with revenues of $533,000 for the six months ended June 30, 2002. The loss from continuing operations for the first six months of 2003 was $830,000, or ($.11) per share, compared with a loss of $892,000, or ($.11) per share for the same period in 2002. The income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in 2003 was $65,000, or $.01 per share compared to income of $84,000 from discontinued operations in the first six months of 2002 resulting in a net loss of $765,000, or ($.10) per share for the first six months ending June 30, 2003, compared to a net loss of $808,000, or ($.10) per share in the 2002 period. "During the recently completed quarter, we continued to expand our business by increasing our portfolio assets to $11,546,000 at June 30, 2003, as compared to outstanding structured credits of $8,672,000 at March 30, 2003," said Walter Craig, EquiFin's President and Chief Executive Officer. "A year ago, at June 30, 2002, our structured credits were $6,015,000. Our commercial finance portfolio of structured credits are handled through our subsidiary, Equinox equinox (ē`kwĭnŏks), either of two points on the celestial sphere where the ecliptic and the celestial equator intersect. The vernal equinox, also known as "the first point of Aries," is the point at which the sun appears to cross the Business Credit Corp. ("EBCC EBCC European Breast Cancer Conference EBCC East Bay Conservation Corps (California) EBCC Essexville Baptist Community Church (Essexville, Michigan) "). If EBCC continues to build portfolio assets during the second half of 2003, as it did in the first half, its operations can turn profitable in 2003. A significant portion of our ongoing loss is attributable to the expenses related to being a public enterprise as well as expenses we are incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. to seek capital for our business expansion and to review prospective acquisitions. In this regard, we announced during the second quarter, the signing of a definitive merger agreement for Celtic Capital, a west coast commercial finance company with portfolio assets of approximately $20,000,000. The merger of Celtic with EquiFin is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the successful raise of $3,000,000 in new capital. We are currently in final negotiations to secure this capital, but until we secure the capital on terms we feel are prudent, we will not finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... this proposed transaction," said Mr. Craig. Except for the historical information contained herein, this press release contains 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. which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results. In addition to other factors that may be discussed in the Company's filings with the Securities and Exchange Commission, the following factors, among others, could cause the Company's actual results to differ materially from those expressed in any forward-looking statement made by the Company: (i) general economic and business conditions; (ii) the loss, insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet or failure to pay its debts by a significant customer or customers; (iii) the maturing of debt and the ability of the Company to raise capital to repay or refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. such debt on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms; and (iv) the success or failure of the Company's efforts to implement its business strategy with respect to credit accommodations, which could depend upon, among other factors, the availability of capital on favorable terms toward the Company and the effects of economic conditions on the Company's borrowers and the capital markets.
EquiFin, Inc. and Subsidiaries
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts, Unaudited)
Three months ended June 30,
2003 2002
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Revenue $ 514 $ 299
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General and administrative expense 679 592
Interest expense 273 175
Interest income (4) (12)
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Net Loss $ (434) $ (456)
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Per Share - basic and assuming
dilution $ (.06) $ (.06)
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Six months ended June 30,
2003 2002
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Revenue $ 922 $ 533
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General and administrative expense 1,249 1,139
Interest expense 517 311
Interest income (14) (25)
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Loss from continuing
operations $ (830) $ (892)
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Discontinued operations:
Income (loss) from operations -- 84
Income on disposal 65 --
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Income (Loss) from discontinued
operations 65 84
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Net Loss $ (765) $ (808)
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Per Share - basic and assuming
dilution:
Continuing operations $ (.11) $ (.11)
Discontinued operations .01 .01
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$ (.10) $ (.10)
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