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
April 16, 1998
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(Date of earliest event reported)
Commission File Number: 0-18201
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EQUIVEST FINANCE, INC.
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(Exact name of Registrant as specified in its charter)
Florida 59-2346270
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
2 CLINTON SQUARE, SYRACUSE, NEW YORK 13202
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(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
Record Quarterly Income
Syracuse, New York, April 16, 1998. Equivest Finance, Inc. (NASD-EQUI)
today announced record quarterly net income. Net income rose 100.3% to $1.45
million for the first quarter ended March 31, 1998, from $725 thousand for the
same period in 1997. Income before taxes for the quarter was $2.11 million, up
160.4%, from $809 thousand for the same period in 1997. Diluted earnings per
share increased 100% to $.06 for the first quarter in 1998, from $.03 for the
first quarter in 1997.
Richard C. Breeden, Chairman and C.E.O. of Equivest, stated "The first
quarter of 1998 continues to build off of the strong growth in new business and
the reduction in borrowing rates created in 1997. Net income and diluted
earnings per share both doubled for the first quarter of 1998. This continues to
demonstrate the company's commitment to creating shareholder value."
Total revenues increased 36.7% to $5.09 million for the quarter ended
March 31, 1998, from $3.72 million for the same period in 1997. Total
originations rose to $18.7 million for the first quarter in 1998, a 92.4%
increase over the 1997 first quarter volume of $9.7 million. Total expenses rose
2.3% to $2.98 million for the first quarter, from $2.91 million for the same
period in 1997. Total expenses, not including the provision for doubtful
accounts, decreased 5.4% for the first quarter of 1998 compared to the same
period in 1997.
Breeden also commented that, "With the new financing facility and
re-capitalized balance sheet, both completed in the fourth quarter of 1997, the
persistent growth in the company's timeshare origination was evident in the
first quarter. Originations rose over 92% for the first quarter of 1998, and the
fundamentals are in place to allow the company to increase originations in the
future. Through its wholly-owned subsidiary Resort Funding, the company enjoys a
leading role in the rapidly growing timeshare industry."
Equivest Finance, Inc. is a specialty finance company that, through Resort
Funding, finances the development of destination resorts in the timeshare
industry, as well as the purchase of vacation ownership intervals purchased by
consumers in the timeshare resorts. The company currently finances approximately
35 different resorts in the United States, the Caribbean and Europe, with
approximately $130 million of outstanding loans in the timeshare industry.
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Equivest Finance, Inc. First Quarter Results
Comparative Statement of Income
(All numbers in 000's except number of shares and per share data)
Three months ended
March 31,
1998 1997
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Revenues:
Interest $ 4,750 3,677
Gain on sale of contracts -- 30
Other income 333 10
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Total revenues 5,083 3,717
Expenses:
Provision for doubtful accounts 225 0
Interest 1,653 2,164
Debt related costs 314 252
Selling, general, administrative 784 492
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Total expenses 2,976 2,908
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Income before taxes 2,107 809
Provision for income taxes 655 84
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Net Income 1,452 725
Preferred stock dividends 150 173
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Net income after dividends $ 1,302 $ 552
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Basic earnings per share $ 0.06 $ 0.06
Diluted earnings per share $ 0.06 $ 0.03
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 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
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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, prepayments by developers, inability of developers to
honor replacement obligations for defaulted consumer notes, and competition from
organizations with greater financial resources.
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