JJFN looks interesting, profitable and trading 0.01 above
it's 52 week low;
New York, New York, Nov. 16, 2000 (Market News Publishing via COMTEX) --
Strategic Capital Resources, Inc. reported a net income for its fiscal first
quarter 2001 of $167,378, or $.01 (diluted) per share, on revenues of $9,061,668
versus $118,030, or $.00 per share (diluted) on revenues of $9,155,596 for the
same quarter of fiscal 2000. the periods ended September 30. The company
attributed the improved income to a $103,000 increase in gains on the resale of
model homes.
Lease revenues increased approximately $432,000, a 46% rise during the three
months ended September 30, 2000 as compared with the same period in 1999.
Average model homes on lease during the period were approximately $45.7 million
compared to $31.3 million for the like period a year earlier, resulting in the
increased revenue.
During the quarter, Strategic Capital Resources acquired $28,380,490 in
revenue-producing assets comprised of $7,834,480 in model home acquisitions, and
$20,546,010 of residential real estate on lease, bringing total
revenue-producing assets to $74,052,748 at September 30, 2000, an 82% increase
versus total revenue-producing assets at September 30, 1999.
The company purchases model homes from the top publicly-held and rated
homebuilding companies. The model homes are then leased to the homebuilders at
lease rates in excess of the company's cost of funds. The model homes remain on
lease until sold to an independent third party for proceeds of not less than the
company's original acquisition cost.
Strategic Capital Resources has a similar program for acquisition, development
and sale of residential real estate. The program provides for the purchase of
parcels of land and contracts for the development of parcels into finished lots.
The property is simultaneously leased to a client homebuilder who is given the
exclusive option to purchase the finished lots at a cost equal to the company's
investment in the property. The company recovers its investment in the property
plus the profits generated by the spread between the lease rates charged and the
costs to finance the property.
STRATEGIC CAPITAL RESOURCES, Inc.
Financial Summary
3 months Ended Sept.30
2000 1999
Revenues $ 9,061,668 $ 9,155,596
Costs & Expenses $ 8,822,290 $ 8,988,566
Income before income taxes $ 239,378 $ 167,030
Deferred income tax expense $ 72,000 $ 49,000
Net income $ 167,378 $ 118,030
Weighted average shares outstanding 15,621,345 15,903,870
Earnings per share Basic .01 .01
Diluted .01 .00
Sept.30, 2000 June 30,2000
Model homes on lease $43,278,739 $42,025,520
Residential real estate on lease $20,546,010
Multi-Family Residential Properties $10,227,999 $10,227,999
Total Assets $77,838,111 $56,129,439
Shareholders' Equity $ 8,519,791 $ 8,396,003
"Safe Harbor" Statement"
Except for the historical information contained herein, certain of
the matters discussed in this press release are "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995, which involve
certain risks and uncertainties, including but not limited to, changes in
competition, environmental factors, and governmental regulations affecting the
company's operations. See the company's latest annual report on Form 10-K for
the year, and form 10-Q filed with the SEC for a discussion of these and other
risks and uncertainties applicable to the company's business.
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TEL: 561/995-0043 Strategic Capital Resources, Inc., Boca Raton
TEL: 561/995-0043 Strategic Capital Resources, Inc., Boca Rato
John Kushay, CFO |
