SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
November 13, 1997
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Date of Report (Date of earliest event reported)
POINT WEST CAPITAL CORPORATION.
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(Exact name of registrant as specified in its charter)
Delaware 0-27736 94-3165263
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(State of other (Commission (IRS Employer
jurisdiction of File Number) Identification
corporation) NO)
1700 Montgomery Street, Suite 250, San Francisco, CA 94111
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415)394-9467
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Item 5. Other Events.
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On November 13, 1997, The Company issued a press release
announcing third quarter earnings and new strategic direction. The press release
is filed herewith as exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits
99.1 Text of Press Release dated November 13, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.
Point West Capital
Corporation
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By/s/Alan B. Perper
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Alan B. Perper
President
Date: November 14, 1997
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EXHIBIT INDEX
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Exhibit Number Document Description Sequential
Page Number
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99.1 Text of Press Release dated
November 13, 1997 1
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FOR IMMEDIATE RELEASE
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November 13, 1997
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POINT WEST CAPITAL CORPORATION ANNOUNCES
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THIRD QUARTER EARNINGS AND NEW STRATEGIC DIRECTION
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SAN FRANCISCO-(November 13, 1997) Point West Capital Corporation (PWCC)
(formerly known as Dignity Partners, Inc. (DPNR)) today reported a net loss of
$118,000 (or $0.04 per share based on 3,324,449 weighted average outstanding
shares) for the quarter ended September 30, 1997, compared to a net loss of
$10,034,000 (or $2.34 per share based on 4,291,824 weighted average outstanding
shares) for the quarter ended September 30, 1996. The net loss for the third
quarter of 1997 reflects the effects of a $328,000 provision for loss on assets
held for sale, a $98,000 pre-tax gain on assets sold and a $943,000 net loss in
the Company's wholly owned financing subsidiary which was charged to the
previously provided reserve for the loss of the equity interest in such
subsidiary. The Company also reported a net gain of $1,210,000 (or $0.33 per
share based on 3,671,700 weighted average outstanding shares) for the nine
months ended September 30, 1997, compared to a net loss of $9,547,000 (or $2.49
per share based on 3,838,548 weighted average outstanding shares) for the nine
months ended September 30, 1996.
The Company's results of operations and cash flows for the three and
nine months ended September 30, 1997 are not comparable to the three and nine
months ended September 30, 1996, primarily as a result of the reclassification
in the third quarter of 1996 of a substantial portion of the Company's assets as
"assets held for sale" and related accounting consequences.
Through September 30, 1997, the Company had sold or entered into
agreements to sell 373 policies, representing $29.2 million in aggregate face
value, for $19.5 million. As a result of these sales, the Company reported a
pre-tax loss of $300,000 in the first nine months of 1996 ($180,000 pre-tax loss
for the year ended 1996) and a pre-tax gain of $1,461,000 in the first nine
months of 1997 (including $98,000 in the third quarter).
The Company also reported that Fourteen Hill Capital, L.P. ("Fourteen
Hill"), a limited partnership the Company formed in June 1997, received a
license from the Small Business Administration ("SBA") to become a small
business investment company ("SBIC") effective September 26, 1997. George Corey,
Esquire, the Chief of the Licensing Unit at the SBA, and Abigail Freeman, a
Presidential Intern serving as a financial analyst at the SBA, stated that "it
was the fastest SBIC license ever granted by the SBA since 1993 when the SBA
revised its licensing procedures." Fourteen Hill commenced operations in August
1997 by consummating two financings in the aggregate principal amount of $1.25
million.
In September 1997 the Company formed a limited liability company called
Allegiance Capital, LLC ("Allegiance"). Allegiance will provide senior secured
loans to funeral home and cemetery owners nation wide from its principal offices
in San Francisco. Allegiance commenced operations in October 1997 by issuing a
commitment letter to make a senior secured loan to an unaffiliated entity for
$2.1 million. The Company serves as the manager of Allegiance and has a 51%
equity interest in the new entity. The other two members, Michael McDermitt and
Daniel Isard, own the remaining 49% interest. Mr. McDermitt has an extensive
background in finance. He most recently spent seven years at Smith Barney as
Vice President in its structured finance group where he focused on innovative
securitizations and other financings. Mr. McDermitt serves as President of
Allegiance. Mr. Isard has broad experience in the death care industry having
provided consulting services to more than 700 funeral homes, cemeteries and
mortuaries across the nation since 1987. Mr. Isard serves as Vice President of
Marketing.
Until February 1997 the Company provided viatical settlements for
terminally ill persons. Subsequently, the Company has sought to become a
broad-based specialty financial services company. To that end, the Company has
expanded its financial services business through the formation and investment in
other entities, including Fourteen Hill and Allegiance. The Company is currently
evaluating other strategic business opportunities. Fourteen Hill and Allegiance
are indicative of the types of business opportunities the Company intends to
pursue.
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: SPECIALTY FINANCE EARNINGS).
CONTACTS: POINT WEST CAPITAL CORPORATION, SAN FRANCISCO.
Alan B. Perper, 415/394-9467
