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
March 26, 1998
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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
incorporation) 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 March 26, 1998, The Company issued a press release
announcing 1997 earnings. 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 March 26, 1998.
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SIGNATURES
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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: April 1, 1998
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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
March 26, 1998. 1
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FOR IMMEDIATE RELEASE
March 26, 1998
POINT WEST CAPITAL CORPORATION
ANNOUNCES 1997 EARNINGS
SAN FRANCISCO-(March 26, 1998) Point West Capital Corporation (PWCC)
(formerly known as Dignity Partners, Inc. (DPNR)) today reported net income of
$1.0 million (or basic earnings of $.29 per share based on 3,521,736 weighted
average shares of common stock outstanding) for the year ended December 31,
1997, compared to a net loss of $9.7 million (or a basic loss of (2.46) per
share based on 3,942,166 weighted average shares of common stock outstanding)
for the year ended December 31, 1996. Net income for the year ended December 31,
1997 reflects the effects of $1.2 million of interest income, a $680,000 gain on
a sale of an investment, a $1.5 million pre-tax gain on assets sold, $489,000 of
income on matured life insurance policies, a $328,000 provision for loss on
assets held for sale, and a $3.9 million 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 loss of $199,000(or a basic loss of
($.06) per share based on 3,253,324 weighted average shares of common stock
outstanding) for the quarter ended December 31, 1997 compared to a net loss of
$153,000(or a basic loss of ($.04) per share based on 4,287,993 weighted average
shares of common stock outstanding) for the quarter ended December 31, 1996.
Although the Company realized net income of $1.0 million for the full year of
1997, the Company realized a loss in the fourth quarter of 1997 because the
Company's revenues from the sale of
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assets were generated primarily in the first half of 1997, but the Company
incurred expenses approximately ratably over the year.
The Company's results of operations for the three and twelve months
ended December 31, 1997 are not comparable to the three and twelve months ended
December 31, 1996, primarily as a result of (i) 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, and (ii) the volume
of assets sold during 1997.
Through December 31, 1997, the Company had consummated the sale of 348
policies, representing $28.4 million in aggregate face value, for $19.2 million.
As a result of these sales, the Company realized a pre-tax loss of $180,000 for
the year ended 1996 and a pre-tax gain of $1.5 million for the year ended 1997,
in each case after giving effect to the provision for loss on sale of assets.
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. During 1997 the Company formed and began operating two new
businesses, Fourteen Hill Capital L.P. ("Fourteen Hill Capital") (a small
business investment company licensed by the Small Business Administration) and
Allegiance Capital, LLC ("Allegiance") (a lender to funeral home and cemetery
owners). Fourteen Hill Capital had unrealized gains of $2.6 million at December
31, 1997 based on an estimate of the fair value of its investments on such date.
Any gains or losses for such
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investments will be recognized on the income statement, if ever, upon the sale
of such investments.
The Company also continues to evaluate other strategic business
opportunities. Fourteen Hill Capital and Allegiance are indicative of the types
of business opportunities the Company intends to pursue.
The following is summary balance sheet information as of December 31,
1997:
<TABLE>
<S> <C>
Cash and cash equivalents......................................................................$10,039,560
Restricted cash (1).............................................................................$3,756,714
Investment securities...........................................................................$5,817,343
Loans receivable, net of unearned income........................................................$4,015,716
Assets held for sale..............................................................................$129,334
Purchased life insurance policies..............................................................$36,586,788
Investment in convertible preferred shares......................................................$1,658,478
Total assets...................................................................................$62,969,253
Reserve for equity interest in wholly owned
financing subsidiary.......................................................................$2,300,037
Long term notes payable........................................................................$38,804,107
Total liabilities..............................................................................$41,703,145
Net unrealized investment gains ................................................................$2,597,239
Retained deficit..............................................................................$(7,996,737)
Total stockholders' equity.....................................................................$21,266,108
<FN>
(1) Restricted cash is pledged by the Company's wholly owned financing
subsidiary, Dignity Partners Funding Corp. I, to secure the repayment of long
term notes payable.
</FN>
</TABLE>
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: SPECIALTY FINANCE EARNINGS).
CONTACTS: POINT WEST CAPITAL CORPORATION, SAN FRANCISCO.
Alan B. Perper, 415/394-9467
