FOR IMMEDIATE RELEASE:
For Additional Information:
United Financial Mortgage Corp.
600 Enterprise Dr., Suite 206
Oak Brook, IL 60523
(630) 571-7222
(630) 571-2623 fax
Contact: Steve Khoshabe
Chief Financial Officer
[email protected]
Coffin Communications Group
15300 Ventura Boulevard, Suite 303
Sherman Oaks, CA 91403
(818) 789-0100
(818) 789-1152 fax
Contact: William F. Coffin, CEO
Martin Halsall, Senior Account Principal
[email protected]
For Immediate Release
United Financial Mortgage Corporation Reports Results For First
Quarter Fiscal Year 2001
Oak Brook, IL - September 18, 2000 - United Financial Mortgage Corp.(CHX:'UFM'
or 'the Company') today announced results for the first quarter ended July 31,
2000.
Revenues for the first quarter ended July 31, 2000 were $2.93 million
compared to revenues of $2.92 million for the first quarter ended July 31,
1999. Net income for the first quarter ended July 31, 2000 increased 4%
to $71,465 or $0.02 per diluted share, compared to net income of $68,738
or $0.02 per diluted share for the first quarter ended July 31, 1999.
The Company's first quarter earnings were enhanced by an increase in loan
originations coupled with a decrease in certain operational expenses.
Joseph Khoshabe, President and CEO of United Financial Mortgage stated,
"The Company has closed its first quarter on a positive operational note.
We have maintained our loan volume and revenues compared to the previous
quarter last year, a period characterized by record levels of refinancing
activity. We have also been very successful at controlling our costs despite
the continued expansion of our sales organization and decreasing margins.
"As we move forward we will continue our strategy of technological advancement
and infrastrucutre improvement to coincide with the planned opening of new
branch offices. This strategy whcih includes increasing our servicing of
mortgage loans, anticipated to increase our future cash flow, will help us to
minimize seasonal revenue fluctuations prevalent in the mortgage industry,"
concluded Mr. Khoshabe.
About United Financial Mortgage Corp.
United Financial Mortgage Corp. is a national mortgage banker principally
engaged in originating both retail and wholesale mortgages for single family
residences of one to four units. The Company is headquartered in Oak Brook,
IL and has regional offices in several other states. The Company's web site
www.ufmc.com allows consumers to get information on the many different
types of mortgage loans offered by the Company, calculated mortgage payments,
and apply on-line for a mortgage.
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This press release may contain forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
the statements contained herein. Such risks and uncertainties include, but
are not limited to, changes in the performance of the financial markets,
changes in the demand for and market acceptance of the Company's products,
changes in general economic conditions, including interest rates, the impact
of competition, changes in the value of real estate, the ability to maintain
and increase sources of funding, and other risks disclosed from time to time
in the Company's SEC reports and filings.
--FINANCIAL STATEMENTS TO FOLLOW--
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United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Three Months Ended Three Months Ended
July 31, 1999 July 31, 2000
ASSETS
<S> <C> <C>
Current Assets:
Cash $ 4,563,533 $ 3,737,966
Loans Held For Sale 30,599,216 25,458,203
Accounts Receivable 271,490 423,624
Due From Employees 23,500 15,877
Due from Officers 2,439 0
Due from Affiliates 1,000 0
Deferred Tax Asset 0 20,633
U.S. Savings Bonds 2,000 3,600
Notes Receivable 110,000 128,000
Prepaid Expense 229,668 118,222
Total Current Assets 35,802,846 29,906,125
Furniture, Fixtures & Equipment
Cost 694,218 707,500
Accumulated Depreciation (308,775) (384,810)
Net Furniture, Fixtures, &
Equipment 385,443 322,690
Other Assets:
Servicing Rights 295,695 322,560
Land Investments 0 275,000
Escrow Deposits 196,061 0
Security Deposits 17,769 23,417
Deferred Advisor Fees 39,000 0
Investment 5,850 81,453
Goodwill Net 129,139 123,562
Total Other Assets 683,514 825,991
Total Assets 36,871,802 31,054,807
The accompanying Notes are an integral part of this statement
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United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Three Months Ended Three Months Ended
July 31, 1999 July 31, 2000
LIABILITES AND STOCKHOLDERS EQUITY
<S> <C> <C>
Current Liabilities:
Accounts Payable $ 235,950 $ 332,793
Loans Payable 700,766 0
Accrued Expenses 177,675 511,171
Leases Payable-Short Term 17,015 13,000
Deferred Income Taxes 270,599 0
Taxes Payable 46,145 0
Escrow Payable 177,972 25,363
Notes Payable - Current 28,560,371 23,611,960
Total Current Liabilities 30,186,494 24,494,287
Leases Payable-Long Term 22,943 10,140
Total Liabilities 30,209,437 24,504,427
Stockholders' Equity
Common Shares, 20,000,000
Authorized, No Par Value,
Shares Issued and Outstanding;
3,897,529 at July 31, 1999
and 3,881,129 at July 31, 2000 6,527,278 6,494,323
Preferred Shares, 5,000,000
authorized, No Par Value, 63
Series A Redeemable Shares
Issued And Outstanding at
July 31, 1999 and July 31, 2000 315,000 315,000
Retained Earnings (179,913) (258,944)
Total Stockholders Equity 6,662,365 6,550,379
Total Liabilities Plus
Stockholders Equity 36,871,802 31,054,807
The accompanying Notes are an integral part of this statement
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United Financial Mortgage Corp.
Condensed Statement of Income
(Unaudited)
Three Months Three Months
Ended Ended
July 31, 1999 July 31, 2000
<S> <C> <C>
Revenues:
Commissions & Fees $ 2,430,230 $ 2,402,571
Interest Income 485,146 528,566
Other Income & Expenses 0 0
Total Revenues 2,915,376 2,931,137
Expenses:
Salaries & Commissions $ 1,559,345 $ 1,527,122
Selling & Administrative 730,924 723,991
Depreciation 35,839 39,009
Interest Expense 472,764 515,103
Total Expenses 2,798,872 2,805,225
Income (loss) Before
Income Taxes 116,505 125,911
Income Tax Provision 47,767 54,446
Net Income(Loss) 68,738 71,465
Less Dividends Paid on
Preferred Stock 0 0
Net Income Applicable
To Common Shareholders 68,738 71,465
Basic Net Income
Per Common Share 0.0176 0.0184
Diluted Net Income
Per Common Share 0.0166 0.0171
Shares used in computation of
Basic Net Income Per Share 3,897,529 3,881,129
Shares used in computation of
Diluted Net Income Per Share 4,139,529 4,181,129
The accompanying Notes are an integral part of this statement
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