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 MINNEAPOLIS, Aug. 23 /PRNewswire/ -- Olympic Financial Ltd. (NASDAQ-NMS: OLYM) today reported net income of $102,493 for the fourth quarter ended June 30, 1993, compared with $38,987 in the same period last year. Earnings per share were 1 cent, compared with 1 cent per share on a smaller number of shares outstanding in the fourth quarter last year. Average shares outstanding doubled during the year.
 Non-interest income climbed to $1,934,244 in the fourth quarter of 1993 from $1,349,972 a year earlier, largely on the strength of Olympic's second public offering of asset-backed securities -- a $66.1-million issue of auto-loan backed certificates sold in June. It was the company's third and largest securitization during fiscal 1993, reflecting the company's growth in loan originations and aggressive program of geographical expansion.
 Total operating expenses were $1,995,441 in the fourth quarter of 1993, compared with $918,697 in the final quarter last year. The increase reflects the stepped-up rate of office expansion during the year. The company is now operating branch offices in six states, compared with two at the close of fiscal 1992.
 "By broadening Olympic's market base and increasing loan originations, the company will achieve efficiencies and economies of scale in the origination and servicing of its total loan portfolio," said Jeffrey C. Mack, chairman and chief executive officer. "We have the systems capacity to support large-scale growth, and we believe it is in the long-term interest of the company and our shareholders to build a national market base as aggressively as practical at this stage of our development.
 "We were able to meet or exceed our growth and securitization objectives for fiscal 1993, achieving triple-A ratings from both Standard & Poor's and Moody's as a result of a 100-percent guarantee provided by Financial Security Assurance Inc. The growing efficiencies and size of our securitizations have and should continue to reduce our cost of funds as we mature."
 To determine gains on sales of its loans, the company must estimate the amount of future prepayments and credit losses. The carrying value of finance income receivables is adjusted periodically to reflect the differences between these estimates and the actual prepayment rates and credit losses at each balance sheet date.
 Consequently, fourth-quarter 1993 earnings were after a $402,000 reduction in gain on sale of receivables securitized in prior quarters, resulting primarily from higher-than-expected loan prepayments and credit losses. Prepayments accounted for a majority of the reduction.
 For the year ended June 30, the company reported a loss of $1,000,773 or 11 cents per share, compared with a loss of $1,797,395 or 48 cents per share in fiscal 1992.
 Non-interest income climbed to $5,089,822 in fiscal 1993 from $1,369,119 a year earlier. The company's three securitizations during fiscal 1993 totaled $154,214,640, up sharply from $50,835,158 for two securitizations in fiscal 1992.
 Net interest margin grew to $1,561,135 in fiscal 1993 from $408,569 last year -- an increase attributable to the growth of the company's portfolio of loans held for sale and larger interest spreads obtained on the loans.
 Olympic Financial is a rapidly growing Minneapolis-based consumer finance company that purchases, sells and services retail installment sales contracts originated by a network of automobile dealers under contract with the company. The network grew from 243 to 592 dealerships in fiscal 1993, a 144-percent increase. Loan origination volume grew to $173 million during the year, a 158-percent increase.
 Founded in March 1990, the company now has offices in Arizona, Colorado, Florida, Texas and Washington, in addition to Minnesota.
 Three months ended
 June 30, 1993 June 30, 1992
 Interest Income $1,089,538 $1,283,705
 Interest expense on
 financings of auto loans (549,787) (1,116,439)
 Provision for credit losses 13,000 16,000
 Net interest margin 552,751 183,266
 Non-interest income 1,934,244 1,349,972
 Other interest expense (389,061) (118,013)
 Operating expenses (1,995,441) (918,697)
 Income before extraordinary
 item 102,493 496,528
 Extraordinary item (a) - (457,541)
 Net income $ 102,492 $ 38 987
 Net income per share before
 extraordinary item $ 0.01 $ 0.10
 Extraordinary item per share - 0.09
 Net income per share $ 0.01 $ 0.01
 Weighted average common and
 common equivalent shares
 outstanding 10,899,538 5,106,184
 Twelve months ended
 June 30, 1993 June 30, 1992
 Interest Income $ 3,942,253 $ 4,115,775
 Interest expense on
 financings of auto loans (2,291,118) (3,615,106)
 Provision for credit losses (90,000) (92,100)
 Net interest margin 1,561,135 408,569
 Non-interest income 5,089,822 1,369,119
 Other interest expense (1,680,092) (118,013)
 Operating expenses (5,971,638) (2,999,529)
 Loss before extraordinary
 item (1,000,773) (1,339,854)
 Extraordinary item (a) - (457,541)
 Net loss $(1,000,773) $(1,797,395)
 Loss per share before
 extraordinary item $ (0.11) $ (0.36)
 Extraordinary item per share - (0.12)
 Loss per share $ (0.11) $ (0.48)
 Weighted average common and
 common equivalent shares
 outstanding 9,001,187 3,704,137
 (a) Premiums paid to financial institutions to repurchase receivables to be included in a securitization at more favorable interest spreads.
 -0- 8/23/93
 /CONTACT: Tom Langenfeld of Swenson Falker Associates, 612-371-0000, for Olympic Financial; or Jeffrey C. Mack of Olympic Financial Ltd., 612-942-9880/

CO: Olympic Financial Ltd ST: Minnesota IN: FIN SU: ERN

AL -- MN002 -- 4941 08/23/93 09:21 EDT
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Publication:PR Newswire
Date:Aug 23, 1993

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