MDCM Financials Just Released!Wednesday August 25, 5:53 pm Eastern Time
Company Press Release
SOURCE: Mortgage.com
Mortgage.com Announces Second Quarter Revenue Increase of Sixty-five Percent
PLANTATION, Fla., Aug. 25 /PRNewswire/ -- Mortgage.com (Nasdaq: MDCM - news), announced today that for the second quarter ended June 30, 1999, revenues increased 65.6% to $14.3 million over the $8.6 million in last year's comparable period and the net loss for the second quarter was $8.6 million, or ($1.00) per share, as compared with $763,000, or ($0.14) per share in the comparable period one year ago. Excluding the amortization of stock-based compensation, net loss for the quarter was $7.7 million or ($0.91) per share.
During the second quarter of 1999, Mortgage.com originated and closed 4,459 loans with a total principal amount of $848.2 million, compared with 2,673 loans with a total principal amount of $478.6 million during last year's comparable quarter.
The Company's growth during a period of rising interest rates reflects Mortgage.com's unique business-to-business strategy and its focus on the home purchase-money financing market. Revenues in Mortgage.com's business-to-business segment rose 124.5% to $11.0 million for the second quarter compared with the comparable period last year. Business-to-business growth was driven by the Company's agreements with 23 mortgage brokerage companies, mortgage banks, and financial institutions that are utilizing Mortgage.com's proprietary Internet technology and mortgage banking resources to offer mortgages on their own private-label or co-branded web sites, and by on-line financial services sites such as Intuit's Quicken Mortgage.
Sixty-five percent of Mortgage.com's funded loan volume in the second quarter was related to purchase-money mortgages. The purchase-money mortgage market is considerably less sensitive to interest rate fluctuations than the re-finance mortgage market.
Mortgage.com completed an initial public offering of 7,062,500 shares of common stock on August 11, 1999, raising $52.5 million in net proceeds. The Company plans to utilize the proceeds to repay existing indebtedness and for general corporate purposes including working capital, advertising and promotional campaigns, and research and development. This press release shall not constitute an offer to sell or the solicitation or an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
As defined by the Safe Harbor provisions of the Securities and Exchange Commission, this news release contains forward-looking statements based on management's current expectations. Mortgage.com's 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 movements, and competition from other on-line loan providers. These and other risk factors are detailed in Mortgage.com's prospectus dated August 11, 1999 as filed with the Securities and Exchange Commission. A copy of the prospectus can be viewed and downloaded from the investor relations section of the mortgage.com web site or obtained from the company's investor relations telephone line at 888-INFO-MDCM.
Mortgage. Com, Inc.
Financial Highlights
(In thousands except for per share data)
Quarter Ended June 30, Six Months Ended June 30,
1999 1998 1999 1998
Statement of
Operations Data
Revenues:
Secondary marketing
revenue-net $9,946 $6,620 $18,546 $12,027
Loan production &
processing fees-net 3,103 1,278 5,702 2,200
Management, technology
& other fees 967 649 2,958 1,194
Net warehouse interest
income (expense) 288 89 458 77
Total revenue 14,304 8,636 27,663 15,498
Expenses:
Compensation and
employee benefits 12,713 5,892 22,359 10,819
Marketing 3,043 258 4,580 343
Research and Development 593 578 1,370 1,011
Depreciation and
amortization 1,154 268 1,852 422
General and
administrative 4,416 2,292 8,175 3,881
Interest on
subordinated debt 941 111 1,085 155
Total expenses 22,861 9,399 39,420 16,631
Net loss $(8,557) $(763) $(11,756) $(1,133)
Net loss per share,
basic & diluted $(1.00) $(0.14) $(1.44) $(0.23)
Balance Sheet Data
June 30, December 31,
1999 1998
Assets:
Cash and cash equivalents $6,562 $3,412
Mortgage loans available for sale - net 148,432 176,373
Property and equipment - net 10,740 5,266
Other assets 17,042 8,387
Total assets $182,776 $193,438
Liabilities:
Warehouse notes payable $124,923 $171,778
Subordinated debt 40,040 100
Other liabilities 11,383 8,424
Total liabilities 176,346 180,302
Shareholders' equity 6,430 13,137
Total liabilities and
shareholders' equity $182,776 $193,439 |
