Message #14 From:
NewsBot Date: November 20, 2006 05:00:00 AM
TMFZ News TMSF Holdings, Inc. Reports Third-Quarter Results
LOS ANGELES--(BUSINESS WIRE)--TMSF Holdings, Inc. (OTCBB:TMFZ), today announced results of operations
for its fiscal year 2006 third quarter, ended September 30, 2006.
Revenues for the Company and its wholly owned subsidiary, The Mortgage
Store Financial, Inc., for the third quarter of 2006 totaled $23.8
million, a 17.4% increase from $20.3 million for the three months ended
September 30, 2005.
Net income for the third quarter of 2006 totaled $1.4 million, or $0.09
per basic and diluted share, compared to $3.2 million, or $0.21 per
basic share, $0.20 diluted, for the third quarter of 2005. Net income in
the third quarter of 2006 includes a $2.8 million provision for
impairment of mortgage loans versus a $0.4 million impairment provision
during the third quarter of 2005.
Net income as a percentage of total revenues declined to 5.8% in the
2006 third quarter compared to 15.7% in the corresponding period of
2005. The net income was negatively impacted by significantly higher
loss provision recorded during the quarter and generally higher interest
cost on the company’s warehouse lines of
credit.
The dollar value of the Company’s mortgage
originations for the quarter ended September 30, 2006, increased 15.8%
over the corresponding period of 2005, while the industry-wide dollar
value of one-to-four family residential loan originations declined
approximately 28% over the same period, according to the Mortgage
Bankers Association. For the nine months ended September 30, 2006, the
Company’s loan originations grew 15.4%
compared to the corresponding period of 2005. Industry-wide,
originations declined by approximately 16% in the same time period.
“While we are pleased that we outperformed
the industry in increasing loan originations during the quarter, our
primary objectives for the immediate future are to increase gross
premiums earned on loans sold, to reduce loan problems and reserves
related thereto, and to increase operating efficiency through increased
technology,” commented Raymond Eshaghian, CEO
of TMSF Holdings, Inc. and President of The Mortgage Store Financial,
Inc.
“This most recent quarter was negatively
impacted by a large increase in the loan loss provision,”
Mr. Eshaghian concluded. “This, we feel, was
an appropriate and necessary response to a mortgage industry environment
that is experiencing significant changes, with higher interest rates, a
slowdown in new housing, higher delinquencies and far greater scrutiny
being paid by investors to compliance provisions in the loan portfolios
we sell.”
Management of TMSF Holdings will hold a conference call to discuss
financial results for the third quarter and nine months of fiscal year
2006, ended September 30, on Monday, November 20, at 11:30 a.m. Pacific
Time (2:30 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 Monday, November 20, at approximately 1:30 p.m. PT,
through Monday, November 27, at 9:00 p.m. PT. To access the replay dial
800-642-1687 and enter the conference ID number 2217960.
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, and (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 Nine Months Ended September 30, 2006
(unaudited) and 2005 (unaudited)
