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 7, 2000
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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 or 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 7, 2000 The Company issued a press release
announcing 1999 results and financial condition.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits
99.1 Text of Press Release dated March 7, 2000.
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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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President
Date: March 9, 2000
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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 7, 2000 1
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FOR IMMEDIATE RELEASE
March 7, 2000
POINT WEST CAPITAL CORPORATION
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ANNOUNCES 1999 RESULTS
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AND FINANCIAL CONDITION
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SAN FRANCISCO --(March 7, 2000) Point West Capital Corporation (Nasdaq
Symbol: PWCC) today reported the following: (Dollars in thousands, except per
share amounts)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Net income (loss) $ 4,411 $ (1,601) $ 9,832 $ (3,650)
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Basic income
(loss) per share $ 1.32 (1) $ (0.49)(2) $ 2.95(3) $(1.12)(2)
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Diluted income
(loss) per share $ 1.25 (4) $ (0.49)(2) $ 2.70(5) $(1.12)(2)
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<FN>
(1) Based on 3,350,667 weighted-average shares of common stock outstanding.
(2) Based on 3,253,324 weighted-average shares of common stock outstanding.
(3) Based on 3,329,409 weighted-average shares of common stock outstanding.
(4) Based on 3,525,610 weighted-average shares of common stock outstanding.
(5) Based on 3,641,716 weighted-average shares of common stock outstanding.
</FN>
</TABLE>
The increase in net income for the year 1999 is primarily attributable
to $14.0 million of net income produced by Point West Ventures (which makes
loans to and invests in small businesses which are generally highly focused in
the areas of e-commerce, Internet and telecommunications), offset by a $3.7
million net loss by Dignity Partners Funding Corp.
The Company also reported that, at December 31, 1999, Allegiance
Capital (which makes loans to funeral home and cemetery owners) had 21 loans
outstanding in the aggregate principal amount of $33.8 million, all of which
bear interest at a fixed rate and that Point West Ventures had two loans
outstanding in the principal amount of $2.6
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million, non-marketable securities carried at an aggregate cost of $5.0 million
and investment securities (available-for-sale) carried at fair value in the
aggregate amount of $6.5 million. In addition, Point West Capital (the parent
company) had non-marketable securities carried at an aggregate cost of $939,000.
The Company also reported that, on February 25, 2000, the United States
District Court for the Northern District of California approved the settlement
agreement executed by the plaintiffs and defendants in the federal and state
alleged class action lawsuits against the Company. Pursuant to the settlement
agreement, all actions against all defendants will be dismissed and plaintiffs
will be paid $3.15 million, of which the Company's D&O insurance will pay $2.2
million.
Finally, the Company reported that it appears likely that sometime
between March and June 2000 there will be insufficient funds available to pay
interest and make other payments (including the Company's servicing fee and
reimbursement for premiums) on the Securitized Notes. Therefore, an event of
default under the related Indenture may occur. An event of default would give
the Noteholders the right to accelerate payment of the Securitized Notes,
foreclose on the policies and dismiss Point West Capital as servicer. The
Securitized Notes represent the obligations solely of Dignity Partners Funding
Corp. Point West Capital did not guarantee the repayment of the Securitized
Notes and is not required to fund any principal or interest deficiency
thereunder. The Company does not currently know what actions might be taken or
claims might be made by either the Noteholders or the Company with respect to an
event of default or any insufficiency of funds to pay costs associated with the
Securitized Notes.
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Further information regarding the Company, its results of operations
and the other matters discussed in this press release is contained in the
Company's 1999 Form 10-K filed with the Securities and Exchange Commission on
March 6, 2000.
This press release includes forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements
herein which are not based on historical facts are forward looking and,
accordingly, involve risks and uncertainties that could cause actual results to
differ materially from those discussed. A discussion of factors that could cause
actual results to differ materially from those contemplated by the forward
looking statements is contained in the Company's 1999 Form 10-K.
The following is summary balance sheet information as of December 31,
1999:
Cash and cash equivalents.................................$12,836,125
Restricted cash (1).................................... ...$3,074,057
Investment securities
Held-to-maturity......................................$2,504,610
Available-for-sale....................................$6,519,821
Loans receivable, net of unearned income of
$540,867 and net of an allowance for loan
losses of $155,000 ...................................$35,467,079
Purchased life insurance policies.........................$31,727,966
Non-marketable securities..................................$5,933,133
Total assets.............................................$101,525,851
Accrued litigation settlement..............................$2,205,000
Revolving certificates.....................................$4,200,000
Term certificates.........................................$24,498,815
Securitized notes payable............................... .$38,528,914
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Debenture payable..........................................$3,000,000
Total liabilities.........................................$73,983,058
Accumulated comprehensive income...........................$2,098,960
Retained deficit.........................................$(1,814,985)
Total stockholders' equity................................$27,542,793
(1) $1.0 million of restricted cash is pledged by the Company's wholly owned
financing subsidiary, Dignity Partners Funding Corp. I, to secure the repayment
of securitized notes payable.
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: SPECIALTY FINANCE EARNINGS).
CONTACTS: POINT WEST CAPITAL CORPORATION, SAN FRANCISCO.
Alan B. Perper, 415/394-9467