July 28, 1999 16:15
E-LOAN, Inc. Reports Second Quarter Revenues and Earnings;
Q2 FY 99 Revenues Up 270% vs. Q2 FY 98
DUBLIN, Calif.--(BUSINESS WIRE)--July 28, 1999--E-LOAN, Inc. (Nasdaq: EELN), (www.eloan.com), a leading provider of online mortgages, today announced financial results for the second quarter ended June 30, 1999.
Revenues for the second quarter of 1999 were $4.6 million, up 270 percent from $1.2 million in the second quarter of 1998. Net loss for the second quarter of 1999 was $16.9 million compared to a net loss of $1.7 million in the second quarter of 1998. Net loss applicable to common shareholders for the second quarter of 1999, which included $525,000 of accretion on preferred stock, was ($0.52) per pro forma share on approximately 33.6 million pro forma shares, compared to a net loss of ($0.07) per pro forma share on 23.3 million pro forma shares in the second quarter of 1998. Net loss for the second quarter of 1999 included a non-cash compensation charge of $5.8 million related to the company's stock option plan and a $900,000
charge for a one-time charitable contribution to the E-LOAN foundation. Excluding the non-cash compensation charge and one-time charitable contribution, net loss for the second quarter would have been $10.2 million or ($0.30) per pro forma share. Pro forma shares assume the conversion of all preferred stock, as if the conversion occurred at the beginning of the period or at date of issuance, if later.
During the quarter ended June 30, 1999, E-LOAN closed 2,006 loans with an average loan size of $188,000. Total value of closed loans was $376 million, with 83% being funded by E-LOAN.
"I am pleased with our performance during the second quarter. Our strong business model, combined with our commitment to customer service, enabled us to strengthen our leadership position in the online mortgage industry," said Chris Larsen, CEO and co-founder of E-LOAN. "We are also pleased that our application mix is rapidly moving to a greater percentage of purchase loans, which are less sensitive to interest rate changes than refinancings.
"During the quarter, we took great strides in establishing our international presence by forming several partnerships including joint ventures in Japan, the United Kingdom, Australia and New Zealand. We also expanded our brand recognition through key strategic initiatives including agreements with Road Runner, USAToday.com and WingspanBank.com that will allow us to further increase market awareness of E-LOAN and attract new customers," said Mr. Larsen.
The company completed an initial public offering of 4,020,000 shares of its common stock on June 28, 1999, raising $52.3 million in net proceeds. Concurrently, the company sold 960,061 shares of its common stock for $12.5 million in net proceeds in a private placement to Forum Holdings, Inc., an investment subsidiary of Group Arnault. The company's common stock is listed on the Nasdaq National Market under the symbol "EELN."
Conference Call
E-LOAN will make its second quarter earnings conference call replay available to the general public. The call, hosted by Chris Larsen, CEO of E-LOAN, can be accessed by dialing 402/220-3001, access code, 8169718. The replay will be available today, Wednesday, July 28th
until Thursday, August 5th, at 12:00 Midnight (PST).
This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. E-LOAN actual results may differ from the results described in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, general conditions in the mortgage industry, interest rate fluctuations, and the impact of competitive products. These and other risk factors are detailed in E-LOAN's prospectus dated June 28, 1999, and filed with the Securities and Exchange Commission.
E-LOAN, Inc. is a leading online mortgage company. The company offers consumers the ability to search more than 50,000 products from over 70 lenders at substantially lower transaction costs. Borrowers can analyze and compare various products to find the best loan that fits their criteria.
E-LOAN offers customers 24 hour a day online access to updated information on their loan status through its proprietary E-Track(SM) service. The company is the exclusive mortgage services provider on many leading Internet sites, including Yahoo!, DLJ direct, E Trade,
CBS MarketWatch and USAToday. The company is headquartered in Dublin,
California.
E-LOAN, Inc.
June 30, 1999
Statement of Operations
(in thousands)
Three Months Ended
June 30, June 30,
1999 1998
Total Revenues $ 4,562 $ 1,233
OPERATING EXPENSES
Operations 4,835 1,157
Sales & marketing 7,574 890
Technology 749 392
General & administration 2,473 319
Amortization of unearned compensation 5,785 211
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Total operating expenses 21,416 2,969
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Loss from operations (16,854) (1,736)
Other income, net (66) 29
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Net loss (16,920) (1,707) Accretion on preferred stock (525)
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Net loss applicable to common shareholders ($17,445) ($1,707)
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Pro forma net loss applicable to common shareholders per pro forma common share (1) ($0.52)
($0.07)
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Pro forma weighted average number of shares outstanding 33,584 23,314
(1) Pro forma net loss per share has been computed by dividing net loss applicable to common
shareholders by the pro forma weighted average number of shares outstanding. Pro forma
weighted average shares assume the conversion of all preferred stock (which were ultimately
converted to common stock in conjunction with the IPO on June 28, 1999), as if the conversion
occurred at the beginning of the period or at date of issuance, if later.
E-LOAN, Inc.
Condensed Balance Sheet Data
June 30, 1999
(in thousands)
June 30, December 31,
1999 1998 Assets Cash and cash equivalents $ 931 $ 9,141 Mortgage loans held-for-sale
70,462 42,154 Proceeds receivable from sale of common stock 64,840 0
Total assets 149,457 55,523
Liabilities and Stockholders' Equity Warehouse lines $ 69,106 $ 41,046
Total liabilities 89,330 45,314
Total Stockholders' Equity 60,127 10,209
Total Liabilities and Stockholders' Equity 149,457 55,523
CONTACT: E-LOAN, Inc.
Frank Siskowski, 925/241-2400 (Chief Financial Officer)
or
Stapleton Communications Inc.
Bob Okunski, 650/470-4232
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