Brooke Credit Corporation Reports Third Quarter Earnings
Brooke Credit reports third quarter and year-to-date 2007 financial results
Brooke Credit Corporation Reports Third Quarter Earnings
OVERLAND PARK, KS, November 6, 2007 - Brooke Credit Corporation (OTCBB: BRCR; BRCRW; BRCRU) today reported its third quarter and year-to-date 2007 financial results. Watch webcast of November results.
Net earnings for the nine months ended September 30, 2007, totaled $10.7 million, or 41 cents per diluted share, on revenues of $34.9 million, compared to net earnings of $5.4 million, or 22 cents per diluted share, on revenues of $19.4 million for the same period in the prior year. For this nine-month period, total earnings increased 98 percent and total revenues increased 80 percent.
Net earnings for the three months ended September 30, 2007, totaled $2.3 million, or 8 cents per diluted share, on revenues of $10.1 million, compared to net earnings of $2.9 million, or 12 cents per diluted share, on revenues of $9.7 million for the same period in the prior year. Total earnings decreased during this period in 2007 primarily as a result of a non-cash compensation expense totaling $991,000 during the period relating to the granting of restricted stock to the Company's executives. Additionally, earnings decreased during the quarter resulting from the establishment of a $830,000 loan loss reserve against loans held in the Company's inventory for eventual sale.
As of September 30, 2007, loan portfolio balances totaled approximately $642.9 million, compared to approximately $593.4 million on June 30, 2007 and up from $483.3 million on December 31, 2006. For the three months ended September 30, 2007, the Company's loan portfolio balances were positively impacted by loan originations of approximately $86.8 million, and offset by principal payments of approximately $37.3 million. For the three months ended September 30, 2007, originations included $22.8 million in Brooke franchise insurance agency loans, $48.9 million in non-franchise insurance agency loans and $3.9 million in non-franchise death care loans.
Michael Lowry, the Company's CEO, stated "I am excited about the Company's prospects and am pleased with the strong performance of Brooke Credit so far in 2007, as evidenced by the growth in revenues, net income and loan portfolio balances. I would like to issue a special thanks to our customers, employees and business partners for their contributions to our continued success."
Although third quarter earnings were negatively impacted by non-cash charges that reduced after tax earnings by approximately $1.1 million, I am pleased with the growth of the Company's core business revenues and profits during the quarter," Lowry also noted.
Brooke Credit will host a conference call for analysts and investors at 9:00 am CST (10:00 am EST) on Wednesday, November 7, 2007. The dial-in number is (866) 271-6130 (United States and Canada) or (617) 213-8894 (Internationally) and the conference ID is 57012444. The public and media are also invited to listen to the call, which will be broadcast live via the Internet. The conference call will be accompanied by a PowerPoint Presentation. Management encourages all parties to log on to the Company's website at www.brookecredit.com at least 15 minutes prior to the scheduled start to download the presentation. A replay of the call will be available on the Web site for the next 12 months.
About the Company… Brooke Credit is a specialty finance company that originates loans to insurance agencies and insurance-related businesses. Loans are mostly sold as individual loans to participating lenders or as pooled loans to investors through asset-backed securitizations.
3rd Quarter Consolidated Statement (PDF)
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company's products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, its ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by the Company with the Securities and Exchange Commission. A more complete description of the Company's business is provided in the Company's reports and registration statements, which are available from the Company without charge or at www.sec.gov.