ZEEV! Wow! NFI 24.35 +1.55 Incredible earnings + guidance! Tuesday April 23, 4:10 pm Eastern Time
Press Release
SOURCE: NovaStar Financial, Inc.
NovaStar Reports $0.80 Earnings and Dividend Per Share, Increases Earnings Guidance
WESTWOOD, Kan.--(BUSINESS WIRE)--April 23, 2002--NovaStar Financial, Inc. (NYSE: NFI - news), a residential mortgage lender and portfolio investor, announced operating results for the three-month period ended March 31, 2002.
The Company reported net earnings of $8.9 million, or $0.80 per diluted share, for the 2002 first quarter versus earnings of $3.0 million, or $0.30, for the same period in 2001. The Company also announced that its Board of Directors has declared a dividend of $0.80 per share on its common stock. The dividend will be paid on May 7, 2002, to holders of record as of May 1, 2002.
Highlights of this release:
-- Record earnings per share and dividends
-- Earnings outlook increased for 2002 and 2003
-- Record loan production volume
-- Affiliated branch operations continues growth
-- 2002-1 senior subordinate pass-through security issued
-- Liquidity remains strong
Scott Hartman, Chairman and CEO, had the following comments: ``I am very pleased by the positive results the Company has reported over the past several quarters. We once again have set record highs in earnings, dividends, loan production and mortgage loans serviced. Loan delinquency rates and prepayment speeds continue to perform better than internal performance expectations and the overall interest rate environment remains favorable. We have also furthered our commitment to providing our customers with the best possible service by opening a second wholesale processing office in Cleveland, Ohio. This second production office was staffed ahead of the production demand, and as a result we experienced a slight increase in our average cost to originate a loan.''
Earnings Outlook
The Company anticipates earnings and dividends for the second quarter of 2002 to be within a range of $0.85-$0.95 per share. Revised full-year earnings for 2002 are expected to total $3.40-$3.80 per share, an increase over the previous estimate of $2.30-$2.80 per share.
This outlook assumes future interest rates from the March 31 implied forward curve, moderately higher production levels and a cost of production similar to recent past experience. Future earnings and dividends will depend on actual interest rates, production growth, volume of loans sold, whole loan market prices, and credit performance.
Loan Originations
The Company originated $512 million of residential mortgage loan principal during the quarter versus $407 million in the previous quarter and $246 million during the same period a year ago -- respective increases of 26% and 108%. $472 million of the total were non-conforming residential mortgage loans. The remaining $40 million of production was primarily conforming loan volume originated with the intention of being sold to government agencies or unaffiliated third-party lenders. The first-quarter production total also includes the first ever FHA/VA loan originated by the Company.
I'm not sure I've seen any better! tuna |
