RCCK EARNINGS from cbs mkt watch
Click Here For More Information
Search news for:
Search by:Keyword Ticker Search
Keyword examples: "general motors", bio technology and venture, yen
Symbol:
Sponsored by:
Headlines Next Story
Rock Financial Reports Record First Quarter Loan
Production, Revenue and Pre-Tax Income
PR Newswire - April 22, 1999 08:18
Company Also Announces Second Quarter Cash Dividend
BINGHAM FARMS, Mich., April 22 /PRNewswire/ -- Rock Financial Corporation (Nasdaq:
RCCK), a leading provider of retail mortgages, reported record first quarter revenue of $20.1
million for the quarter ended March 31, 1999, a 6.3% increase in revenue over 1998's first quarter
revenue of $18.9 million. Rock reported first quarter pre-tax income of $4.2 million and first
quarter net income of $2.7 million, or $0.18 per share (diluted), a 1.9% increase compared with
1998's first quarter pro forma net income of $2.6 million, or $0.18 per share (diluted).
FINANCIAL HIGHLIGHTS
Divisional
Breakdown of
Loan Production
(In $ millions except EPS) First Quarter % Change 1stQ 1stQ
1999 1998 1999 1998
Production
Prime $495 $368 +35% 86% 77%
Sub-Prime $55 $81 -32% 10% 17%
Government $24 $9 +167% 4% 1%
Other $0 $23 -100% -- 5%
Total Company $574 $481 +19% 100% 100%
Revenue $20.1 $18.9 +6% --
Pre-Tax Income $4.2 $4.1 +2% --
Net Income (1999)/Pro
Forma (1998) $2.7 $2.6 +4% --
EPS (1999)/Pro Forma
(1998) (diluted) $0.18 $0.18 +0% --
Earnings per share are based on approximately 15 million shares outstanding (diluted) for the
quarter ended March 31, 1999. Record revenue and record pre-tax income came on record
closed loan production of $574 million in the first quarter of 1999, a 19% increase over 1998's
first quarter closed loan production of $481 million.
"The first quarter saw continued emphasis on conventional lending and our emerging FHA
program. Many of our resources have been re-deployed from our sub-prime product channel to
these more traditional product lines. We do, however, see the potential for sub-prime production
to re-emerge as the secondary market for those products stabilizes," said Dan Gilbert, Chairman
and CEO of Rock Financial.
"Our company has the ability to quickly shift its resources into product lines that are more in
demand and more profitable at the time," added Gilbert.
Internet Business
In late January of this year, Rock launched its Internet mortgage initiative, RockLoans.com. Rock
previously announced $29 million in Internet closed loan production in the first quarter, $22 million
of which was closed in the month of March.
"Our Internet business is off to an impressive start and is expected to become a major portion of
our company's revenues. As a direct lender offering a broad product line over the web we have
been able to maintain healthy margins while at the same time maintaining high levels of customer
satisfaction," said Gilbert.
Michigan National Launch
Recently, Rock formally launched Rock Home Loans @ Michigan National. Rock and Michigan
National Corporation have formed an exclusive partnership where Rock will offer all of its first
mortgage product lines through 192 Michigan National bank branches, the joint venture's Call
Center and the joint venture's new website. Michigan National has over 450,000 customers.
"The joint venture is up and running and early indications are positive that this will add to Rock's
growth in production over the next six to eighteen months. This venture gives us a large distribution
channel to immediately offer the majority of our product lines," said Gilbert.
Cash Dividend and Strong Cash Position
Rock also continued to maintain a strong balance sheet with nearly $36 million in cash as of March
31, 1999. Rock uses its cash on a daily basis, other than at quarter end, to pay down its
warehouse credit facility and maximize its interest spread income.
Rock's board also declared its fifth straight quarterly cash dividend of $.02 per share since
becoming public on May 1, 1998. The dividend will be payable on May 14, 1999 to common
shareholders of record as of April 30, 1999.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain
statements contained in this press release, which are not historical fact, may be deemed to be
"forward-looking" statements under federal securities laws that involve risk and uncertainties.
There are many important factors that could cause Rock Financial Corporation's actual results to
differ materially from those indicated in the forward-looking statements. Such factors include, but
are not limited to, general economic conditions, including interest rate risk, future residential real
estate values, regulatory changes (legislative or otherwise) affecting the real estate market and
mortgage lending activities, competition, demand for Rock Financial Corporation services,
availability of funding, loan prepayment rates, delinquency and default rates, changes in factors
influencing the loan securitization market and other risks identified in Rock Financial Corporation's
Securities and Exchange Commission filings.
ROCK FINANCIAL CORPORATION
STATEMENTS OF INCOME
Three Months Ended March 31, 1998 and 1999
(Unaudited)
For the Three-Month
Periods Ended March 31,
1998 1999
Revenue:
Interest income $3,099,267 $3,026,124
Interest expense 1,737,637 1,418,938
Net interest margin 1,361,630 1,607,186
Provision for credit losses 114,470 570,546
Net interest margin after
provision for credit losses 1,247,160 1,036,640
Loan fees and gains on sale of mortgages 17,663,331 19,016,292
Net gain (loss) on sale of marketable
securities -- --
Other income 10,420 14,820
Total 18,920,911 20,067,752
Expenses:
Salaries, commissions and employee
benefits 8,494,324 9,476,247
General and administrative expenses 2,881,938 3,423,360
Marketing expenses 2,899,706 2,374,294
Depreciation and amortization 542,655 637,184
Total 14,818,623 15,911,085
Income before income taxes 4,102,288 4,156,667
Income taxes due to quarterly earnings -- 1,497,000
Net income $4,102,288 $2,659,667
Pro forma information:
Provision for pro forma income taxes 1,476,824 --
Pro forma net income $2,625,464 $--
Earnings per share (Pro forma 1998):
Basic $0.19 $0.19
Diluted $0.18 $0.18
Weighted average number of shares outstanding
(Pro forma 1998):
Basic 13,829,500 13,790,537
Diluted 14,911,994 14,795,713
ROCK FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 1998 and March 31, 1999
December 31, March 31,
1998 1999
(Audited) (Unaudited)
ASSETS
Cash and cash equivalents $30,081,524 $35,943,156
Mortgage loans held for sale 155,631,112 79,035,216
Mortgage loans held for investment (net of
allowance for losses of $634,851 and
$1,194,900 at December 31, 1998 and
March 31, 1999, respectively) 3,766,171 3,370,224
Real estate owned 49,989 222,989
Shareholders' advances 994,372 --
Property and equipment (net of accumulated
depreciation of $5,400,480 and $5,794,494 at
December 31, 1998 and March 31, 1999,
respectively) 10,775,733 9,828,307
Deferred income taxes 1,945,000 1,500,000
Other assets 1,193,552 1,546,465
Total assets $204,437,453 $131,446,357
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Warehouse line of credit $98,008,105 $33,277,161
Reverse repurchase agreement 11,521,065 2,675,073
Notes payable -- --
Drafts payable 44,021,087 40,654,912
Accounts payable 4,680,275 4,200,574
Accrued expenses and other liabilities 8,171,773 6,878,692
Total Liabilities 166,402,305 87,686,412
Shareholders' equity:
Common shares, $ .01 par value. Authorized 135,905 143,028
50,000,000 shares; issued and outstanding
13,590,500 shares and 14,302,770 shares at
December 31, 1998 and March 31, 1999,
respectively
Additional paid-in capital 26,297,782 29,632,435
Retained earnings 11,601,461 13,984,482
Total shareholders' equity 38,035,148 43,759,945
Total liabilities and shareholders'
equity $204,437,453 $131,446,357
SOURCE Rock Financial Corporation
/NOTE TO EDITORS: For more information on Rock Financial Corporation,
dial 1-800-PRO-INFO and enter the Company ticker "RCCK"/
/CONTACT: Kelley Krass, Investor Relations of Rock Financial,
248-723-7172; or General, Tad Gage, 312-640-6745, Analyst, Alicia Da Costa,
312-640-6780, or Media, Margie Baigh, 312-640-6690, all of The Financial
Relations Board/
(RCCK)
Headlines Next Story
RCCK %FIN %RLT %CPR %ERN V%PRN P%PRN
Click Here For More Information
FRONT PAGE NEWS INDEX HEADLINES COLUMNS MARKET DATA GLOBAL MARKETS MARKET MONITOR
CHARTING PORTFOLIOS MUTUAL FUNDS WEALTH CLUB STOCKCHAT TRADING CENTER
FEEDBACK ADVERTISING INVESTOR'S PRIMER
CBS MARKETWATCH RT CBS MARKETWATCH LIVE
© 1998 MarketWatch.com, L.L.C. All rights reserved. Disclaimer.
MarketWatch.com is a joint venture of CBS and Data Broadcasting Corporation. Company Information.
CBS and the CBS "eye device" are registered trademarks of CBS Inc.
|
