LAHA, great news today! Anyone still in this one?
Lahaina Reports Record Mortgage Revenue for 2nd Quarter
23% Increase From 1st Quarter
ALPHARETTA, Ga.--(BUSINESS WIRE)--May 23, 2000-- Lahaina Acquisitions, Inc. (OTC BB:LAHA - news; commonly known as ``Accent'') today announced that its mortgage
origination operation has produced record revenue and significant second quarter growth. Revenue from Accent's mortgage brokerage services for the second fiscal quarter was $2,174,000, a
23% increase from the first quarter and a 1200% increase from the same quarterly period in 1999. Revenue from mortgage brokerage services for the first six months of the fiscal year was
$3,860,487, compared to $560,097 for the first six months of the prior fiscal year (which was changed to a September 30 from a December 31 year end). Pre-tax income from Accent's
mortgage brokerage services for the first six months of the fiscal year was $261,278, compared to a net loss of $(389,446) for the first six months (ended June 30, 1999) of the prior fiscal year.
Chairman and CEO L. Scott Demerau believes the revenue and earnings increase shows that the future looks brighter than ever as the company moves to take full advantage of its recent
acquisition of certain assets of Paradigm. This acquisition created revenue for Accent beginning March 20.
Betty Sullivan, Executive Vice President and COO commented, ``The Paradigm acquisition had little opportunity to contribute to this quarter's revenue or earnings, since we were only able to
recognize revenue for 10 days before the close of the quarter. Yet the company was still able to achieve this remarkable high level of growth. Total mortgage originations increased by 23%
during the second quarter, and the acquired Paradigm branches accounted for only 7% of the growth. With the acquired Paradigm branches now in the Accent fold, we fully expect substantial
growth to continue. Our business model is working as growth in our mortgage services operation consistently exceeds projections.''
Mortgage brokerage revenue was approximately 77% of the total revenue for the quarter compared to approximately 61% for the previous quarter. The company's real estate operations resulted
in revenue of $600,000, a decline of $550,000 from the previous quarter. The nature of the projects under development means revenue from Accent's real estate activities will be inconsistent
from quarter to quarter. Overall, Accent's net income for the quarter was $148,782, or approximately $.01 per share. Net income for the first two quarters of the year was $454,437, or
approximately $.03 per share.
``We are continuing to examine ways to enhance shareholder value,'' says Demerau. ``The last two quarters, during which most of the mortgage industry has been in decline, have signaled for
us that the foundation of our mortgage operation is solid. Generous growth is a reasonable expectation based upon acquisitions, including opening new branches, and increased mortgage
volume from existing branches as our new incentive programs take hold. We must now develop and implement plans that will ensure the overall growth of the whole company is as rapid and
healthy as the mortgage division.''
More About Accent
Accent operates a nationwide mortgage brokerage organization and has an on-line mortgage presence at www.accentmortgage.com. Accent's goal is to become the recognized leader in the
mortgage brokerage industry by continuing to open new branches at a rapid pace, acquiring existing mortgage operations and using new and revolutionary Internet-based technology to
significantly increase loan closing productivity.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such
forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the `safe harbor' provisions
of the Private Securities Litigation Reform Act of 1995. Lahaina Acquisitions, Inc. actual results may differ materially from the results anticipated in these forward-looking statements as a result
of a variety of factors, including those identified in Lahaina Acquisitions, Inc. Annual Report on Form 10-K for the fiscal year ended September 30, 1999 and its Quarterly Reports on Form
10-Q filed with the Securities and Exchange.
Contact:
Lahaina Acquisitions
L. Scott Demerau
Betty M. Sullivan
770-754-6140 |
