UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
November 4, 1997
(Date of earliest event reported)
Commission File Number: 0-18201
EQUIVEST FINANCE, INC.
(Exact name of Registrant as specified in its charter)
Florida 59-2346270
(State or other jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
2 CLINTON SQUARE, SYRACUSE, NEW YORK 13202
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (315) 422-9088
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Item 5. Other Events
PRESS RELEASE
Equivest Finance, Inc. Announces Increase
In Third-Quarter Earnings
Syracuse, New York, November 4, 1997. Equivest Finance, Inc. (NASD-
EQUI) announced record net income for the quarter and the year to date ended
September 30, 1997.
For the three months ended September 30, 1997, income before taxes
increased 141% to $632,500, compared with $262,400 for the same period in
1996. Net income after tax for the quarter rose to $632,500, an increase of
144.8% over the $258,400 in the year-earlier period. Revenues in the quarter
increased 12.6% to $3,884,100 from $3,448,000 for the year earlier period.
Total expenses increased 2.1% to $3,251,000 from $3,185,600 in the year
earlier quarterly period. Primary earnings per share for the quarter
increased to $0.05 from $0.01, while fully diluted earnings per share
increased to $0.03 from $0.01. At September 30, 1997, total reported capital
was $6,270,300, up 55.3 % since year end 1996.
Richard C. Breeden, Chairman and C.E.O. of Equivest, stated; "We are
very pleased with the continuing robust growth in the company's earnings for
the quarter and the year to date. We have achieved this record while also
adding new board members and arranging a major new financing program. The
continuing increase in the capital base is also an important step for the
future, along with strong quality standards for new originations."
Net income before taxes for the nine months ended September 30, 1997,
was $2,413,000, compared with $1,223,200 in the comparable period in 1996.
This represented an increase of 97.3% over the prior period. Net income
after tax for the nine-month period in 1997 was $2,233,000, up 104.8% over
earnings of $1,090,200 for the same period in the prior year. Primary and
fully diluted earnings per share were $0.18 and $0.10 in 1997, compared with
$0.07 and $0.04, respectively, in 1996. The company reported net income
after tax of $1,660,245 for the entire year of 1996.
Total revenues for the nine months ended September 30, 1997, increased
9.9% to $11,534,300, compared with $10,498,700 for the comparable period in
1996. For the nine months in 1997 total expenses were $9,121,300, down 1.7%
from $9,275,500 for the year-earlier period.
Through its wholly-owned subsidiary Resort Funding, Inc., the company
specializes in financing the development of destination resorts in the
timeshare industry, as well as the purchase of vacation ownership intervals
purchased by consumers in timeshare resorts. The company currently finances
approximately 35 different resorts in the United States, the Caribbean and
Europe, with approximately, $120 million of outstanding loans in the
timeshare field.
Contact: Ben Cesare of Shandwick USA at (212) 420-8100 x 233
NOTE TO INVESTORS: Certain statements in this press release are forward-
looking. These may be identified by the use of forward-looking words or
phrases such as "believe," "expect," "anticipate," "should," "planned,"
"estimated," and "potential." These forward-looking statements are based on
the Company's current expectations. The Private Securities Litigation Reform
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Act of 1995 provides a "safe harbor" for such forward-looking statements. In
order to comply with the terms of the safe harbor, the Company notes that a
variety of factors could cause actual results and experience to differ
materially from the anticipated results or other expectations expressed in
such forward-looking statements. The risks and uncertainties that may affect
the operations, performance, development, and results of the Company's
businesses include a downturn in the real estate cycle or other factors which
result in lower sales of vacation ownership interests, possible financial
difficulties of one or more of the developers with whom the Company does
business, including the risk of carrying non-performing assets or losses if
defaulted loans prove to have insufficient collateral backing, fluctuations
in interest rates, prepayments by consumers of indebtedness, inability of
developers to honor replacement obligations for defaulted consumer notes, and
competition from organizations with greater financial resources.
