AAMES FINANCIAL CORP. REPORTS RESULTS
AAMES FINANCIAL CORP. REPORTS RESULTS LOS ANGELES, April 28 /PRNewswire/ -- Aames Financial Corp.
(NASDAQ: AAMS) today reported financial results for its third quarter ended March 31, 1992. The company also announced it is in the final stages of discussions regarding the placement of its first investment mortgage loan pool, to be offered by Oppenheimer & Co.
Net income for the three-month period amounted to $229,000, equal to $.07 per share, compared with $530,000, or $.23 per share, for last year's third quarter. Revenues for the period rose to $4,640,000 from $4,116,000 last year. Not included in results for the most recently completed third quarter was $6,000,000 in recorded loans funded as part of the company's mortgage investment pool that is being packaged for sale to institutional investors. Had the loan pool been placed during the quarter, Aames would have achieved substantially higher net income. For the nine months ended March 31, 1992, net income rose to $1,745,000, equal to $.72 per share, from $1,074,000, or $.47 per share, a year ago. Revenue advanced to $13,950,000 from $13,122,000 last year. Gary K. Judis, Aames' chief executive officer, said on an operating basis the company's third quarter was strong, with new loan recordings increasing to $31 million from $23 million last year. Judis noted that the planned investment mortgage loan pool will be composed of $10 million to $12 million of mortgage loans and is expected to be offered prior to Aames' fiscal year-end, June 30, 1992. The commencement of the offering is subject to a variety of conditions, including final due diligence, completion of negotiation of terms and placement of pool insurance. Judis said he anticipates the pool will receive an AAA rating by the major rating agencies. "We believe this program will help increase the company's profitability and allow us to expand our loan production by providing Aames with added liquidity for the sale of its loans," said Judis. "Furthermore, the large volume of loans in a pool reduces our expenses and enhances our revenues," he added. Judis said the new investment vehicle represents the first in a series of mortgage pools Aames plans to offer in the years ahead to complement the firms's existing and growing private investor program. Aames Financial Corp. is the parent of Aames Home Loan, which has arranged equity-backed first and junior trust deed financing since 1954. The company operates 19 offices throughout California and currently services a loan portfolio of approximately $200 million. AAMES FINANCIAL CORP. AND SUBSIDIARIES Combined Statement of Income (Unaudited) Third Quarter Ended Nine Months Ended March 31, March 31, March 31, March 31, 1992(a) 1991 1992(a) 1991 Revenues $4,640,000 $4,116,000 $13,950,000 $13,122,000 Income before income taxes 372,000 546,000 2,050,000 1,102,000 Provision for income taxes 143,000 16,000 305,000 28,000 Net income 229,000 530,000 1,745,000(b) 1,074,000 Net income per share .07 .23 .72 .47 Weighted average number of shares outstanding 3,303,685 2,303,685 2,417,815 2,303,685 (a) Does not include $6,000,000 in recorded loans, funded as part of a proposed mortgage investment pool to be offered to institutional investors. Had the pool been placed during the quarter, net income would have been substantially higher. (b) Includes non-recurring gain of $179,000, relating to an adjustment in value of an officer's stock option. -0- 4/28/92 /CONTACT: Gregory J. Witherspoon of Aames Financial, 213-351-6500; or Roger S. Pondel or Keith H. Karpe of Pondel Parsons & Wilkinson, 310-207-9300, for Aames Financial/ (AAMS) CO; Aames Financial Corp. ST: California IN: FIN SU: ERN
KJ-EH -- LA013 -- 3633 04/28/92 09:49 EDT
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|Date:||Apr 28, 1992|
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