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
Date of Report(date of earliest event reported) July 22, 1997
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Litchfield Financial Corporation
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(Exact name of registrant as specified in its charter)
Massachusetts 0-19822 04-3023928
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
789 Main Road, Stamford, VT 05352
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (802)694-1200
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(Former name or former address, if changed since last report)
Item 5. Other Events
NEWS RELEASE
NASDAQ Symbol - LTCH
FOR IMMEDIATE RELEASE
Contact : Heather A. Sica, Executive Vice President
Telephone : 802-694-1200 x 123 Fax: 802-694-1552
LITCHFIELD FINANCIAL CORPORATION ANNOUNCES RECORD SECOND QUARTER EARNINGS.
Stamford, Vermont (July 22, 1997) ... Litchfield Financial Corporation
(NASDAQ : LTCH) announced today that earnings per share for the second quarter
of 1997 increased 19% to $0.32 from $0.27 in the second quarter of 1996. Second
quarter net income increased 20% to $1,880,000 from $1,564,000 in the second
quarter of 1996. Revenues for the second quarter of 1997 were $7.7 million, up
26% from $6.1 million in the second quarter of 1996.
Earnings per share for the six months ended June 30, 1997 increased 27% to
$0.52 from $0.41 for the first half of 1996. Net income for the first six months
of 1997 increased 28% to $3,025,000 from $2,362,000 in the 1996 period. Revenues
for the six months ended June 30,1997 were $14.1 million, up 31% from $10.8
million in the six months ended June 30, 1996.
Randy Stratton, President and CEO of Litchfield commented, "Our goal is to
deliver attractive earnings growth on a consistent basis. We believe our success
can be attributed to the strength of our origination network and underwriting
standards, as well as strict expense control. In addition, approximately 70% of
our revenues come from interest and servicing income which provide a significant
base of stable, recurring revenues."
Litchfield recently announced that its second quarter originations
increased 45% to $47.2 million from $32.6 million in the second quarter of 1996.
Litchfield's originations for the six months ended June 30, 1997 increased 41%
to $83.3 million from $59.0 million for the six months ended June 30, 1996.
Loan sales for the second quarter of 1997 were $27.4 million. Approximately
$12.1 million were sold through Litchfield's existing land and timeshare
commercial paper facilities and $15.3 million of dealer hypothecation loans were
sold in a private placement.
Mr. Stratton added, "We continue to have strong demand for our land and VOI
loans. Our improved bank and loan sale facilities will enable us to further
expand our marketing by offering more attractive terms to certain customers. In
addition, we have had good success in related niches of lending such as
construction and receivables finance."
Litchfield Financial Corporation is a specialty finance company which
provides financing for the purchase of rural and vacation properties, financing
of vacation ownership interests (popularly known as timeshare interests), loans
to rural land dealers and resort developers secured by consumer receivables or
real estate, and other secured loans.
Litchfield is listed on the NASDAQ Stock Market under the symbol LTCH.
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LITCHFIELD FINANCIAL CORPORATION SECOND QUARTER RESULTS
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(All numbers in 000's except per share data and number of shares)
Three months ended Six months ended
June 30, June 30,
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1997 1996 1997 1996
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Revenues :
Interest income $4,783 $3,348 $ 9,329 $ 6,640
Gain on sale of loans 2,563 2,474 4,067 3,354
Servicing and other income 345 279 702 757
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7,691 6,101 14,098 10,751
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Expenses :
Interest expense 2,648 1,768 5,042 3,297
Salaries and employee benefits 833 645 1,646 1,382
Other operating expenses 853 618 1,756 1,282
Provision for loan losses 300 529 735 954
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4,634 3,560 9,179 6,915
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Income before income taxes 3,057 2,541 4,919 3,836
Provision for income taxes 1,177 977 1,894 1,474
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Net income $1,880 $1,564 $3,025 $2,362
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Earnings per share $ 0.32 $ 0.27 $ 0.52 $ 0.41
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Weighted average number of shares 5,917,911 5,708,191 5,861,180 5,698,866
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CONSOLDIATED CONDENSED BALANCE SHEETS
June 30, December 31,
1997 1996
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(unaudited)
Assets :
Cash and cash equivalents $ 7,061 $ 5,557
Restricted cash 21,364 18,923
Loans held for sale, net 20,475 12,260
Other loans, net 91,750 79,996
Retained interest in loan sales 27,759 28,912
Other assets 6,901 7,041
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Total assets $175,310 $152,689
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Liabilities and Stockholder's Equity :
Liabilities :
Lines of credit $ 34,287 $ 36,299
Term note payable 6,396 7,428
Accounts payable and accrued liabilities 3,981 3,811
Dealer/developer reserves 10,626 10,628
Deferred income taxes 6,035 5,080
Long-term notes 66,382 46,995
Stockholder's equity 47,603 42,448
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Total liabilities and stockholders' equity $175,310 $152,689
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Notes to Investors
This press release may contain certain forward-looking statements which
involve a number of risks and uncertainties that could cause actual results to
differ materially. Specifically, comments related to originations, revenues, net
income, profitability, delinquencies, defaults may be considered forward-looking
and subject to a number of risks and uncertainties, including but not limited to
: demand for loans, declines in real estate value, changes in prevailing
interest rates, continued availability of various funding sources, economic
cycles, prepayment, timing of loan sales, collection and delinquency risks,
contingent repurchase obligations, dependence on senior management, competition,
regulation and environmental liabilities. Refer to Form 10-K for the year ended
1996 for a complete list of factors as discussed under "Risk Factors".
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