HUGE ATTENTION ON WGHI.HUGE NEWS OUT.
THAT IS WHAT I CALL NEWS.
WGHI TRADES ON NASDAQ, AND IS ONE
OF TAKI'S PICK. TAKE A LOOK AT THESE GREAT NEWS.
Westmark Tops $283 Million in 1998 Production; Increases
Projection to $500 Million for 1999
PR Newswire - January 07, 1999 11:56
BOCA RATON, Fla., Jan. 7 /PRNewswire/ -- Westmark Group Holdings, Inc. (Nasdaq:
WGHI)
reported today it had produced $283.2 million in sub-prime mortgage loan production for
the calendar
year 1998.
Ranked as one of the nation's fastest-growing sub-prime lenders by an independent
industry trade
journal, Westmark extended its trend of triple digit percentage growth in loan volume this
past year.
Indeed, the year-end total represents a 121% increase over loan volume of $128.2 million
for the full
year 1997.
Moreover, in 1998 Westmark exceeded analysts' and internal projections for year-end
loan production,
which were both originally established at $250 million, and were revised upward to $280
million at
mid-year.
"Despite the widespread credit crisis that resulted in a general downturn for most
sub-prime lenders
industry wide, Westmark again topped projections by setting new all-time records for
loan volume, loan
sales and revenue. This should enable our Company to ultimately report the best-ever
year-end earnings
in our history," said Mark D. Schaftlein, President & Chief Executive Officer of
Westmark.
Westmark anticipates filing audited year-end financial results with the U.S. Securities &
Exchange
Commission by mid-March.
Half-Billion In 1999 Loan Volume:
Looking ahead, Schaftlein noted that Westmark capped off the year by completing its
best month ever in
December, producing in excess of $35 million in monthly production for the first time in
its history. This
run-rate, coupled with Westmark's expected growth -- and additional production capacity
recently
acquired from Credit Depot Corporation and Prestige Financial Services Corporation --
has Westmark
anticipating total loan volume in excess of $500 million for 1999.
Though Westmark plans to announce audited year-end financial results well within the
90-day window
provided by the SEC (through March 31), Schaftlein explained that the Company is
reporting operational
results in January in response to shareholder inquiries concerning loan production trends.
Westmark,
which had previously announced loan volume on a monthly basis, is now reporting all
results -- financial
as well as operational -- on a quarterly basis pursuant to standard SEC practice.
Therefore in advance of filing its Annual Report on Form 10-KSB with the SEC,
Westmark is providing
the following unaudited detail to facilitate trend analysis and historical tracking:
Annual Sub-Prime Loan Volume:
(Dollars In Millions) 1999 (E) 1998 1997 1996
Actual: -- $283.1 $128.2 $40.7
Revised Projection: $500.0 $280.0 $120.0 --
Original Projection: $420.0 $250.0 $96.0 --
Increase Over Prior Year: 77% 121% 215% 63%
Quarterly Sub-Prime Loan Volume:
(Dollars In Millions,
% over prior year) 1998 1997 1996
1st Quarter: $46.2 (+133%) $19.8 (+313%) $4.8
2nd Quarter: $73.7 (+149%) $29.5 (+244%) $8.6
3rd Quarter: $81.3 (+142%) $33.6 (+182%) $11.9
4th Quarter: $81.9 (+81%) $45.3 (+194%) $15.4
Year-End: $283.1 (+121%) $128.2 (+215%) $40.7
Monthly Sub-Prime Loan Volume:
(Dollars In Millions,
% over prior year) 1998 1997
January: $13.5 (+114%) $6.3 (+214%)
February: $13.9 (+146%) $5.7 (+273%)
March: $18.8 (+139%) $7.9 (+518%)
April: $23.2 (+137%) $9.8 (+246%)
May: $22.8 (+138%) $9.6 (+158%)
June: $27.6 (+172%) $10.1 (+397%)
July: $28.4 (+166%) $10.7 (+129%)
August: $25.0 (+120%) $11.4 (+205%)
September: $27.9 (+142%) $11.5 (+229%)
October: $20.7 (+24%) $16.8 (+330%)
November: $25.6 (+90%) $13.5 (+207%)
December: $35.6 (+137%) $15.0 (+111%)
Year-End: $283.1 (+121%) $128.2 (+215%)
Westmark Group Holdings, Inc., through its wholly-owned subsidiary, Westmark
Mortgage Corporation,
is primarily engaged in the origination and purchase of non-conforming, residential
mortgage loans
secured by a first or second lien on the borrower's primary place of residence. The
majority of these
loans are made to borrowers with "A-minus, B and C" rated (sub-prime) credit histories
who might not
qualify for agency-conforming mortgage loans under traditional banking guidelines.
Westmark pools
these loans and sells them on a bulk basis to institutional investors. Westmark
distinguishes itself from
many of its peers in that it does not retain servicing rights on its loans, and all of its loans
are sold
monthly on a whole loan, cash basis, with revenues recognized only after the cash sale is
completed.
Common stock of Westmark trades on The Nasdaq Stock Market under the symbol
"WGHI."
(NOTE: This News Release contains forward-looking statements. For this purpose, any
statements
contained herein that are not statements of historical fact may be deemed to be
forward-looking
statements. Without limiting the foregoing, the words "projects," "plans," "believes,"
"expects," and similar
expressions are intended to identify forward-looking statements. There are a number of
important
factors that could cause the Company's actual results -- including, without limitation, loan
production,
production capacity acquired from Credit Depot Corporation and Prestige Financial
Services, loan sales,
revenues, net income -- to differ materially from those indicated by such forward-looking
statements.
These factors include, without limitation, interest rate fluctuations, the ability to generate,
acquire,
re-package and sell loans to institutional investors on favorable terms, and other factors
as set forth in
WGHI's 1997 Annual Report (Form 10-KSB) under the caption "Certain Factors That
May Affect
Future Results.")
CONTACT: Louis J. Resweber, 888-389-2266, Christina B. Domingue, 225-927-9330, or
Amy M.
Varisco, 800-240-2014, or lou@wghi.com, all of Westmark Group Holdings, Inc.
SOURCE Westmark Group Holdings, Inc.
/CONTACT: Louis J. Resweber, 888-389-2266, Christina B. Domingue,
225-927-9330, or Amy M. Varisco, 800-240-2014, or lou@wghi.com, all of
Westmark Group Holdings, Inc./
/Web site: westmark-mortgage.com
(WGHI) |
