TMFZ News TMSF Holdings, Inc. Reports Second-Quarter Results; Loan Originations Increase 22% from Q2 2005 While Industry-Wide Originations Decline 19.8%; Conference Call Scheduled for 1:30 p.m. PT Today
LOS ANGELES--(BUSINESS WIRE)--Aug. 17, 2006--TMSF Holdings, Inc. (OTCBB:TMFZ), today announced results of operations for its fiscal year 2006 second quarter, ended June 30, 2006.
Revenues for the Company and its wholly owned subsidiary, The Mortgage Store Financial, Inc., for the second quarter of 2006 totaled $21.5 million, a 14% increase from $18.8 million for the three months ended June 30, 2005.
Net income for the second quarter of 2006 totaled $1.8 million, or $0.12 per basic and diluted share, compared to $3.0 million, or $0.20 per basic share, $0.19 diluted, for the second quarter of 2005.
The Company's mortgage originations for the quarter ended June 30, 2006 increased 22.0% over the corresponding period of 2005, while one-to-four family residential loan originations declined 19.8% industry-wide over the same period, according to the Mortgage Bankers Association.
"During the second quarter, we increased our volume and amount of originations over first quarter results and on a year-over-year basis. This resulted in substantially stronger profitability compared to the first quarter of 2006," commented Raymond Eshaghian, CEO of TMSF Holdings, Inc. and President of The Mortgage Store Financial, Inc. "This track record is in stark contrast to many of our competitors, who have felt the effects of an industry environment that has changed dramatically over the last year."
Mr. Eshaghian concluded, "The Mortgage Store Financial has a strong track record of increasing our loan originations regardless of the economic environment. Thus far, our strategy of expanding our presence into new markets and gaining share in our existing markets has been successful. Much of this is due to exceptional customer service and our innovative products that make it easier for mortgage brokers to do business with us. So, while we expect the nationwide level of loan originations to continue to decline, our business model is still oriented toward controlled profitable growth."
Management will hold a conference call to discuss financial results for its second quarter of fiscal year 2006, ended June 30, today, Thursday, August 17 at 1:30 p.m. PT (4:30 p.m. ET).
To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (800) 399-7496. There is no pass code required for this call.
If you are unable to participate in the call at this time, a replay will be available on Thursday, August 17, at approximately 2:30 p.m. PT, through Wednesday, August 23 at 9:00 p.m. PT. To access the replay dial (800) 642-1687 and enter the conference ID number 4671170.
A replay of the conference call will also be made available on the TMSF Holdings web site www.TMSFHoldings.com.
About TMSF Holdings
TMSF Holdings, Inc. is a financial holding company that through its wholly owned subsidiary, The Mortgage Store Financial, Inc., is engaged in nationwide mortgage banking. The goal of The Mortgage Store Financial, Inc. is to become a national leader in the mortgage banking industry by continuing to expand its geographic coverage and maximizing the volume of business from existing clients while adopting innovative processes to improve its profitability.
Information Regarding Forward Looking Statements
Certain statements contained in this news release may be deemed to be forward-looking statements under federal securities laws and TMSF intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the `safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. Such factors include, but are not limited to, (i) the condition of the U.S. economy and financial system, (ii) the stability of residential property values, (iii) the potential effect of new state or federal laws or regulations, (iv) the effect of increasing competition in TMSF's sector, (v) the interest rate environment, (vi) TMSF's ability to maintain adequate financing facilities, (vii) the risks identified in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and its other periodic filings with the Securities and Exchange Commission.
TMSF HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months and Six Months Ended
June 30, 2006 (unaudited) and 2005 (unaudited)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
Loan income
Income from sale
of mortgage
loans $16,083,566 $14,771,542 $25,820,706 $28,227,539
Mortgage
interest income 5,214,604 3,869,581 8,818,317 7,290,260
Commission fee
income 176,413 198,043 411,824 257,692
Total loan income 21,474,583 18,839,166 35,050,847 35,775,491
Costs of loan
origination and
sale of mortgages
Commissions 4,725,987 3,471,040 7,174,010 6,151,552
Warehouse
Interest
expense 4,685,121 3,534,915 7,729,908 6,301,359
Appraisals 509,279 475,470 891,709 785,782
Credit reports 59,817 35,382 105,248 78,844
Warehouse fees 84,047 97,838 135,081 190,217
Provision for
impairment of
mortgage loans 139,473 (339,950) 1,022,651 184,872
Other costs 8,722 30,907 32,825 92,072
Total costs of
loan origination
and sale of
mortgages 10,212,446 7,305,602 17,091,432 13,784,698
Gross profit 11,262,136 11,533,564 17,959,415 21,990,793
Operating expenses
Salaries 6,027,864 5,081,288 10,970,865 9,091,388
General and
administrative 1,986,377 1,156,452 3,547,703 2,401,319
Occupancy 210,527 263,353 428,613 528,982
Total operating
expenses 8,224,768 6,501,093 14,947,181 12,021,690
Income (loss) from
operations 3,037,369 5,032,471 3,012,234 9,969,103
Other income
(expense)
Interest income
(expense) 40,953 39,074 89,912 46,432
Other income
(expense) 26,812 - 27,475 -
Income (loss) on
disposal of
assets - (39,340) 213 (39,340)
Total other income 67,765 (266) 117,600 7,091
Income before
provision for
income taxes 3,105,134 5,032,205 3,129,834 9,976,193
Provision for
income taxes 1,283,318 2,011,491 1,300,348 3,984,717
Net income $1,821,816 $3,020,714 $1,829,486 $5,991,476
Basic earnings per
share $0.12 $0.20 $0.12 $0.40
Diluted earnings
per share $0.12 $0.19 $0.12 $0.37
Basic weighted-
average common
shares
outstanding 15,000,000 15,000,000 15,000,000 15,000,000
Diluted weighted-
average common
shares
outstanding 15,612,928 16,106,439 15,896,488 16,129,638
TMSF HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2006 (unaudited) and December 31, 2005
ASSETS
June 30, December 31,
2006 2005
(Unaudited) (Audited)
Cash and cash equivalents $8,393,471 $10,247,233
Mortgage loans held for sale 88,490,699 65,693,818
Mortgage loans to be repurchased 21,724,235 10,071,210
Reserve for impairment of mortgage loans (1,269,938) (1,189,000)
Prepaid expenses 502,731 274,538
Prepaid income taxes 965,321 -
Warehouse receivables 9,120,295 6,603,235
Other receivables and employee advances
(net of $208,125 & $0, respectively,
allowance for bad debts) 322,109 528,149
Income tax receivable 525,036 525,036
Deferred tax asset - current 970,341 970,341
Total current assets 129,744,300 93,724,560
Restricted cash 245,270 413,292
Real estate owned (net of loss reserves of
$417,602 & $34,000, respectively) 1,104,888 425,299
Property and equipment, (net of accumulated
depreciation of
$872,550 & $648,753, respectively) 848,899 815,846
Deposits and other assets 642,580 283,245
Total assets $132,585,937 $95,662,242
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Warehouse lines of credit $79,862,269 $59,385,101
Obligation to repurchase mortgage loans 21,724,235 10,071,210
Accounts and other payables 4,194,762 2,273,369
Accrued expenses 1,362,699 416,994
Total current liabilities 107,143,965 72,146,674
Long Term Liabilities
Deferred tax liability 4,269 4,269
Total Liabilities $107,148,234 $72,150,943
Shareholders' equity
Preferred stock, $0.001 par value
100,000 shares authorized
no shares issued and outstanding - -
Common stock, $0.001 par value
30,000,000 shares authorized
15,000,000 shares
issued and outstanding 15,000 15,000
Additional paid-in capital 3,175,601 3,078,682
Retained earnings 22,247,102 20,417,617
Total shareholders' equity 25,437,703 23,511,298
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities and shareholders' equity $132,585,937 $95,662,242
