Essex Bancorp - ESX - .10 book value - Turnaround? Message Board

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Non-Tech : Essex Bancorp - ESX - .10 book value - Turnaround?

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To: skibob who wrote (10)	10/15/1997 9:32:00 PM
From: skibob	of 22

The following was taken from the most recent SEC filing for ESX. August 11, 1997 ESSEX BANCORP INC /NEW (ESX) Quarterly Report (SEC form 10-Q) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Total shareholders' equity at June 30, 1997 was $15.5 million. However, the Series B and Series C preferred stock has a stated value and liquidation preference of $15.0 million, exclusive of cumulative but undeclared dividends and accrued interest thereon of $2.6 million at June 30, 1997. To the extent that EBI's income is not sufficient to cover the cumulative dividends and accrued interest on the Series B and C preferred stock, the equity of EBI's common shareholders will be affected. Accordingly, EBI's board of directors and the Strategic Evaluation Committee continue to evaluate profitability enhancements and possibilities for corporate restructurings. (If I understand this correctly common shares have little or know value. Also earnings per share will be used primarily to pay delinquent dividends and accrued interest on same. This may cause them to become delinquent on additional dividends due on forthcoming quarters.) Loan servicing fee and ancillary servicing fee income in future periods will be negatively impacted by the transfer of Essex Home's largest subservicing client to another servicer effective May 31, 1997. Because no assurances can be made that this significant servicing volume can be replaced in its entirety in the near term, Essex Home has implemented a plan for operating expense reductions. Notwithstanding the impact of the cancellation of this subservicing contract, Essex Home increased its mortgage loan servicing volume since December 31, 1996 by approximately 700 loans with an aggregate principal balance of $74.2 million as of June 30, 1997. The following was taken from Paul Kangas' Wall Street Wrap Up which was published 10/14/97 after the close of the market: Essex Bancorp (AMEX:ESX) up 1 3/4. The company has been telling the financial press it knows no reason for a very unusual activity recently. I would greatly appreciate the opinion and explanation of someone more capable of digesting the information available on ESX. TIA Bob

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