Harbourton Capital Group, Inc. Reports 2005 Second Quarter Earnings of $59,459 and Year to Date Earnings of $578,921
August 26 2005 - 7:30AM
Business Wire
Harbourton Capital Group, Inc. ("Harbourton" or the "Company")
(OTC:HBTC) today reported net income after tax of $59,459, or $0.01
per common share, for the three months ended June 30, 2005,
compared to net income after tax of $640,536, or $0.11 per common
share, for the comparable period in 2004. Net income after tax for
the six months ended June 30, 2005 was $578,921, or $0.11 per
common share, as compared with $1,092,461, or $0.22 per common
share, for the respective period in 2004. The return on average
equity for the quarter and six months ended June 30, 2005 was 0.9 %
and 4.2 %, respectfully, as compared with 10.6% and 9.1%, for the
comparable periods in 2004. Total shareholders' equity at June 30,
2005 increased to $27.7 million, with a corresponding book value of
$5.47 per share, as compared with total shareholders' equity at
December 31, 2004 of $27.1 million, or $5.35 per share. There were
5,061,388 shares of common stock outstanding during the three and
six months ended June 30, 2005 and 2004. The results for the
quarter were negatively impacted by increased fees for audit and
accounting expenses, as well as lower earnings in both of the
Company's subsidiaries, Harbourton Mortgage Investment Corporation
("HMIC") and Harbourton Financial Corporation "HFC". HMIC
implemented an aggressive campaign to grow its presence in the
eastern United States with the addition of 40 account executives.
The costs associated with this initiative as well as the
administrative expenses associated with the final development and
testing of HMIC's new automated underwriting and loan origination
system, "HELPS" (Harbourton Electronic Loan Processing System),
materially impacted HMIC's results for the period. Mortgage
activity in the quarter mirrored that of the national market,
including intense interest rate competition and compressed margins.
Nonetheless, during the quarter ended June 30, 2005, HMIC increased
loan fundings to $219.6 million with corresponding loan sales of
$213.7 million, as compared to loan fundings of $202.4 million and
loan sales of $192.6 million during the prior quarter ended March
31, 2005. HFC revenue was negatively impacted by the foreclosure of
a major project at the end of the first quarter. Although the
project's residential condominium units were principally complete,
the sales process was delayed pending receipt of final occupancy
permits from the local governmental agency. Currently 40% of the
units are sold with the remainder listed for sale. HFC continues to
experience strong demand for mezzanine financing, with a
significant pipeline of future transactions. HFC intends to
redeploy the proceeds from former projects to satisfy existing
demand. J. Kenneth McLendon, president and CEO, stated, "Both the
board of directors and management were disappointed with the
results for the second quarter. Still, we recognize that in the
mezzanine business it may be necessary to proceed with a
foreclosure to protect HFC's investment. Moreover, HFC expects to
recover all of its principal from the project." He continued,
"HMIC's strategic investment in systems and staff during a
challenging period in the industry creates an opportunity for
consistent growth in a cost efficient manner, which in turn should
lead to superior financial returns." Harbourton is a holding
company comprising two main financial businesses, mezzanine lending
conducted by the HFC subsidiary and mortgage banking by HMIC. HFC's
primary business is originating loans to builders and developers of
residential projects. The loans include financing for acquisition,
development and construction ("AD&C") of residential
single-family homes, townhouses, and condominiums. HMIC's primary
business consists of originating and purchasing both conforming and
non-conforming mortgage loans and the subsequent sale of these
loans servicing released to investors in the secondary market. This
press release may contain various "forward-looking statements,"
within the meaning of Section 27A of the Securities Exchange Act of
1934, as amended, that represent the Company's expectations or
beliefs concerning future events. Such forward-looking statements
are about matters that are inherently subject to risks and
uncertainties. Factors that could cause actual results or
performance to differ from the expectations expressed or implied in
such forward-looking statements include changes in the timing and
amount of earning assets which may be originated by the Company,
changes in revenue and expense trends (including trends affecting
charge-offs) of the Company, changes in the Company's markets and
changes in the economy (particularly in the markets served by the
Company). -0- *T Selected Financial Data: (000's except per share
data) June 30, December 31, June 30, 2005 2004 2004 ------------
------------ ---------- Total Assets $ 107,715.4 $ 90,430.3
$75,863.9 Total Liabilities 80,049.3 63,327.9 51,386.7
Shareholders' Equity 27,666.1 27,102.4 24,477.2 Book Value Per
Share $ 5.47 $ 5.35 $ 4.84 Common Shares Outstanding 5,061.4
5,061.4 5,061.4 Three Months Ended Six Months Ended June 30, June
30, ------------------- ------------------- 2005 2004 2005 2004
--------- --------- --------- --------- Revenues: Interest income
$1,763.1 $1,386.2 $3,570.1 $2,479.3 Interest expense (1,069.2)
(485.5) (1,929.8) (805.5) --------- --------- --------- ---------
Net interest income before provision 693.9 900.7 1,640.3 1,673.8
Provision for loss (251.3) (100.7) (625.1) (237.2) ---------
--------- --------- --------- Net interest income after provision
442.6 800.0 1,015.2 1,436.7 Fees and other income 3,650.5 2,442.8
7,406.0 4,712.2 --------- --------- --------- --------- Total net
revenues 4,093.1 3,242.8 8,421.2 6,148.9 Expenses Compensation and
benefits 2,822.0 1,641.4 5,579.2 3,177.9 General &
administrative 865.7 474.9 1,419.3 976.2 Professional fees 170.4
15.7 250.6 114.7 Depreciation 134.8 38.7 248.6 73.6 ---------
--------- --------- --------- Total Expenses 3,992.9 2,170.7
7,497.7 4,342.4 Income before income tax 100.2 1,072.1 923.5
1,806.5 Income tax 40.7 431.6 344.6 714.0 --------- ---------
--------- --------- Net income $ 59.5 $ 640.5 $ 578.9 $1,092.5
========= ========= ========= ========= Income per common share $
0.01 $ 0.13 $ 0.11 $ 0.22 Weighted average shares outstanding
5,061.4 5,061.4 5,061.4 5,061.4 Return on average equity "ROAE" 0.9
% 10.6 % 4.2 % 9.1 % *T
(USOTC:HBTC)
Historical Stock Chart
From Jun 2024 to Jul 2024
(USOTC:HBTC)
Historical Stock Chart
From Jul 2023 to Jul 2024