WTHL moving on news...
(COMTEX) B: Whitehall Enterprises 3rd Quarter Earnings Report; ALG In
B: Whitehall Enterprises 3rd Quarter Earnings Report; ALG Increases Revenue
371% and the Company Reports $2,712,477 of Net Income
MIAMI, Aug 22, 2000 (BUSINESS WIRE) -- Whitehall Enterprises (OTCBB:WTHL) today
announced third quarter and nine months ending June 30, 2000 financial
statements. Whitehall Enterprise's subsidiary, Alternative Lending Group
increased revenues approximately 371% over the preceding quarter surpassing
expectations, which called for a 300% increase this quarter. ALG's net income
for the quarter ended June 30, 2000 was $70,722.
"I am extremely pleased with our financial subsidiary's performance for the past
quarter," said Luis Alvarez, President and CEO of Whitehall Enterprises. "I
consider ALG's achievement to be indicative for what is to come in the
approaching quarters. Furthermore, I envision the additions of Direct Financial
and our newly formed title insurance company, Alternative Title, to
exponentially expand the financial breath of ALG and ultimately Whitehall
Enterprises," further stated Luis Alvarez.
Through a partnership with Guardian Title, Whitehall Enterprises now offers
title insurance with the creation of Alternative Title. The partnership provides
ALG with more flexibility in pricing, a reduction in overhead as well as allows
the Company to close loans virtually any time, anywhere, no matter how far the
distance within the 23 states which ALG is currently licensed to do business.
The Company is among the first in the mortgage industry to offer this kind of
innovation and management believes Alternative Title will place the Company in a
strong position to compete directly with on-line leaders such as E-Loan
(Nasdaq:EELN) and Mortgage.com (Nasdaq:MDCM) by offering a superior product and
low cost mortgage options to all customers regardless of credit history and
rating.
Whitehall Enterprises's total operating revenues for the quarter ending June 30,
2000 were reported as $1,580,481 versus $352,637 for the same period year ago,
representing a $1,227,844 increase or 348%. Total operating revenues for the
nine months ending June 30, 2000 were reported as $2,072,634 versus $789,742 for
the same period year ago, representing a $1,282,892 or 162%.
General and administrative expenses, exclusive of stock options of $463,000
issued to directors and non employees for services rendered, amounted to
$2,362,126 for the nine month period ended on June 30, 2000. Total general and
administrative expenses for the nine and three months ended June 30, 2000 were
$2,845,126 and $723,945.
The Company's consolidated net loss from operations for the nine and three
months ended June 30, 2000 amounted to $(766,437) and $(41,226) compared to net
income of $65,797 and $53,175 for the preceding period of operations ended June
30, 1999. Net losses exclusive of expenses paid through stock options issued to
directors and non employees for services rendered aggregating $483,000, would
become a net loss of $(283,437) for the nine month period ended June 30, 2000.
ALG's net income for the quarter ended June 30, 2000 was $70,722.
On June 30, 2000 Whitehall Enterprises, Inc. made and entered into an agreement
to sell MBM in exchange for notes receivable in the amount of $3,647,000 (at
present value). The Company recorded a pretax gain of $2,751,177. Information
relative to the sale of MBM will be presented in an 8-K by August 31, 2000.
Notwithstanding the Company's divestiture of MBM, Whitehall Enterprises's June
30, 2000 third quarter and nine months ending net income were reported as
$2,712,477 and $1,987,266 respectively versus $53,175 and $65,797 reported in
the same periods one year ago.
The Company's balance sheet for the quarter ended June 30, 2000, reported total
assets of $6,418,061 an increase of $2,556,472 or 66% over last year same
period. Total liabilities decreased $1,365,614 or 49% to $1,406,460 versus
$2,772,074 for the same period last year and stockholders equity increased
$3,922,086 or 359% to $5,011,601 versus $ 1,089,515 same period year ago.
"I am very pleased going into the fourth quarter as a financially stable
company", stated Luis Alvarez. "We are building a war chest to complete more
profitable acquisitions. Our cash assets, stockholder's equity, revenues, and
net income have considerably grown and the next transactions are only going to
add to our primary financial structure in a very positive way," concluded Luis
Alvarez.
Whitehall Enterprises Inc. (OTCBB:WTHL) is a growth oriented holding company
targeting business acquisitions, which will contribute a diversified asset base
for the company. Whitehall Enterprises' current business activities include
marketing hair growth promotion and hair loss prevention technologies and
e-commerce mortgage banking.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain information included in this news
release (as well as information included in oral statements or other written
statements made or to be made by Whitehall Enterprises, Inc.) contains
statements that are forward-looking, such as statements related to consummation
of the transaction, anticipated future revenues of the companies and success of
current product offerings. Such forward-looking information involves important
risks and uncertainties that could significantly affect anticipated results in
the future and accordingly, such results may differ materially from those
expressed in any forward-looking statements made by or on behalf of Whitehall
Enterprises. For a description of additional risks and uncertainties, please
refer to Whitehall Enterprises, Inc.'s filings with the Securities and Exchange
Commission, including Forms 10K and 10-Q.
CONTACT: Investor Relations Services, Inc.
New Smyrna Beach, Fla.
Tom Biggs, 904/409-0200
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