IMN Financial Corp
Wednesday August 19, 5:42 pm Eastern Time
Company Press Release
IMN Financial Announces Second Quarter and Six
Months Results: Net Income For Second Quarter
Increases to Over $250,000
MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 19, 1998--IMN Financial Corp. (OTC: Bulletin Board: IMNF), announced today the results for the second quarter and for the six months ended June 30, 1998.
Total revenues for the six months increased to $11.4 million in 1998 as compared to $2.2 million in 1997, an increase of 429 percent. The company attributes the increase to the various acquisitions between Aug. 1, 1997 and Dec. 31, 1997. IMN's profit for the six months was $404,545 or $0.01 per share, as compared to $207,023 or $0.03 per share for the comparable six months of 1997. The weighted average number of shares outstanding for the six months ended June 30, 1998 was 31,764,157 as compared to 5,503,629 for the same six months in 1997. Net income increased 95 percent for this comparable period and was attributed to the increase of sales volume.
Operating profit for the six months was $532,106 up from $207,023. Total general administrative expenses for the six months ended June 30, increased to $9.9 million as compared to $2.0 million for the same period in 1997. Total interest expense for the six months ended June 30, increased to $2.2 million as compared to $171,480 for the same period in 1997. Second quarter revenues increased to $6.1 million from $2.2 million in the same period last year. Total net income for the three months ended June 30, increased to $255,831 as compared to $208,523 for the same period in 1997, an increase of 23 percent.
Total revenues for the three months ended June 30, increased to $7.0 million as compared to $2.4 million for the same period in 1997, an increase of 187 percent.
Edward Capuano, president and CEO of IMN Financial Corp., noted that ''the second quarter was characterized by profitability for the second consecutive quarter, and that the Company continues to absorb 'internally' its numerous acquisitions.'' In commenting about the upcoming second half of the year, Capuano was both upbeat and confident that ''IMN had its eye on the ball and additional analyst type information would be forthcoming in the form of projections.''
About IMN Financial Corp.
The company announced on Aug. 13, 1998 that it was pleased to announce that Robert Stata, a consultant to IMN is preparing to form a retail sub-prime lender. The company is confident that these types of ventures will continue to pave the way for future growth, and sustained profitability of the company. IMN's principle business, through its wholly-owned subsidiary Island Mortgage Network Inc., is mortgage banking through origination's and sale of residential mortgage loans under the guidelines of VA, FHA, Fannie Mae, and Freddie Mac. Island Mortgage Network Inc. has grown from one branch of
operation in 1995 to a national mortgage banking company with forty (40) branches operating in twenty states. In addition, IMN was able to secure a $55 million dollar increase in their warehouse lines, increasing the ability to handle loan originations.
Except for the historical information contained herein the matters discussed in this news release include forward-looking statements that may vary significantly based on a number of factors, including but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, and other risk factors detailed in the company's most recent annual report, and other filings with the Securities and Exchange Commission.
IMN Financial Corp. and Subsidiaries
Form 10 - QSB
Condensed Consolidated Statement of Income
(Unaudited)
Three Months Three Months
Ended Ended
6/30/98 6/30/97
Operating Income
Points, Fees and Premium Income $ 6,062,085 $ 2,296,774
Interest Income 957,292 150,138
Total Operating Income 7,019,377 2,446,912
Operating Expenses
General and Administrative
Expenses 5,304,843 2,012,374
Interest Expense 1,318,295 171,480
Depreciation 35,449 25,316
Amortization of Acquisition
Goodwill (70,914) 0
Other Amortization 26,598 29,219
Total Operating Expenses 6,614,271 2,238,389
Income from Operations 405,106 208,523
Income (loss) from Subsidiary (107,715) 0
Income before Provision for
Income Taxes 297,391 208,523
Provision for Income Taxes 41,560 0
Net Income $ 255,831 $ 208,523
IMN Financial Corp. and Subsidiaries
Form 10-QSB
Condensed Consolidated Balance Sheets
Liabilities & Stockholders' Equity
Six Months Six Months
Ended Ended
6/30/98 6/30/97
Operating Income
Points, Fees and Premium Income $11,352,545 $ 2,296,774
Interest Income 1,593,150 150,138
Total Operating Income 12,945,695 2,446,912
Operating Expenses
General and Administrative Expenses 9,967,787 2,013,874
Interest Expense 2,210,085 171,480
Depreciation 100,464 25,316
Amortization of Acquisition Goodwill 84,006 0
Other Amortization 51,247 29,219
Total Operating Expenses 12,413,589 2,239,889
Income From Operations 532,106 207,023
Income (Loss) From Subsidiary (77,038) 0
Income Before Provision For
Income Taxes 455,068 207,023
Provision for Income Taxes 50,523 0
Net Income $ 404,545 $ 207,023
Weighted Average Number of
Shares Outstanding 31,764,157 5,503,629
Basic Earnings Per Share 0.0127 0.0376
Diluted Earnings Per Share 0.0127 0.0376
IMN Financial Corp. and Subsidiaries
Form 10 - QSB
Condensed Consolidated Balance Sheet
Assets
6/30/98 6/30/97
Unaudited Unaudited
Assets
Cash $2,905,908 $ 232,333
Mortgage Inventory 59,839,563 16,253,149
Points and Fees Receivable 4,396,093 368,100
Stock Subscription
Receivable 0 6,600,000
Other Current Receivables 754,310 144,967
Investments 7,356,558 5,660,293
Prepaid Expenses 4,727,117 1,798,493
Property and Equipment - net 1,583,210 489,795
Notes and Mortgages
Receivable 4,219,964 2,296,229
Intangible Assets - net 4,377,447 694,649
Other Assets 85,167 69,994
Total Assets 90,245,337 34,608,002
IMN Financial Corp. and Subsidiaries
Form 10 - QSB
Condensed Consolidated Balance Sheet
Liabilities & Stockholders' Equity
6/30/98 6/30/97
Unaudited Unaudited
Liabilities
Accounts payable and
accrued expenses $4,794,209 $ 1,902,274
Warehouse lines of credit 59,258,693 15,880,615
Borrowers escrow funds 272,393 364,621
Capital lease obligations 191,054 146,470
Notes payable 585,586 0
Due to related party 7,098,595 2,196,436
Deferred income 1,175,540 280,809
Deferred income taxes 415,019 0
Other liabilities 0 5,374
Total liabilities 73,791,089 20,776,599
Stockholders' Equity
Preferred stock - authorized
5 million shares $.001
par value per share, the
number of shares outstanding
at June 30, 1998 and
June 30, 1997 - 4,250 and -0-
respectively 4 0
Common stock - authorized 45 million
shares, $0.001 par value per share,
the number of shares outstanding at
June 30, 1998 and June 30, 1997 -
31,764,201 and 23,686,700,
respectively 31,858 2,369
Paid-in capital 20,548,166 13,639,304
Stock subscription
receivable (3,766,666) 0
Unrealized gain on
available-for-sale
securities 253,129 0
Retailed earnings (612,243) 189,730
Total stockholders' equity 16,454,248 13,831,403
Total liabilities and
stockholders' equity $90,245,337 $34,608,002
Contact:
Consulting for Strategic Growth, Ltd.
Stanley Wunderlich, Public Relations
Corporate Development Consultants
516/625-4523
From USA 800/625-2236
cfsg@iname.com
or
IMN Financial Corp., Melville
Edward R. Capuano, Chief Executive Officer
Cheryl Schneider, Public Relations
516/844-9805
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