Brooke Corporation Reports First Quarter 2008 Earnings
13 Mayo 2008 - 10:08AM
PR Newswire (US)
OVERLAND PARK, Kan., May 13 /PRNewswire-FirstCall/ -- Brooke
Corporation (NASDAQ:BXXX) today reported its first quarter
financial results for the quarter ended March 31, 2008. Leland Orr,
Brooke Corporation's president and chief executive officer stated,
"Brooke Corporation's operations focus on banking. Additionally,
Brooke Corporation owns an investment in Aleritas Capital Corp. (a
d/b/a of Brooke Credit Corporation; OTC Bulletin Board: BRCR). This
investment represents a 62% ownership interest and therefore
Aleritas' financial results are consolidated with Brooke
Corporation's financial results for reporting purposes. Because
Aleritas reported a significant loss in the first quarter of 2008
due to increased credit reserves, Brooke Corporation's consolidated
results were negatively impacted by $14.6 million." Leland Orr
continued, "The current economic environment has been challenging
for specialty finance companies like Aleritas. We also own 81% of
Brooke Capital Corporation (AMEX:BCP), an insurance agency
franchisor, and the economic challenges faced by Aleritas have
extended to Brooke Capital. With limited loan funding available to
Aleritas for funding of new franchise acquisitions, Brooke Capital
added few, if any, new franchises in the first quarter." The
consolidated total equity of Brooke Corporation, including minority
shareholder interests, was approximately $81 million on March 31,
2008, as compared to consolidated total equity of approximately $67
million on March 31, 2007. Brooke Corporation book value per share
of common stock was $1.86 at March 31, 2008. Financial Presentation
For accounting purposes, Brooke Corporation currently consolidates
the financial results of Aleritas Capital Corp. and Brooke Capital
Corporation (its investment activities), with Brooke Corporation's
banking and other operations (its non-investment activities).
Financial Results Brooke Corporation reported a first quarter 2008
consolidated loss of $18.5 million as compared to a first quarter
2007 consolidated profit of $6.8 million. The company reported
first quarter 2008 consolidated revenues of approximately $36
million as compared to first quarter 2007 consolidated revenues of
$63 million. The decline in consolidated first quarter results from
the same period a year ago was primarily driven by an increased
provision for credit losses of approximately $12.5 million and an
$11.7 million impairment charge for Aleritas. Investment Activities
Aleritas' first quarter 2008 net loss was approximately $24 million
as compared to net income of approximately $5 million for first
quarter 2007. Aleritas' first quarter 2008 results were adversely
affected by increases in loan loss reserves. Brooke Capital's first
quarter 2008 net loss was approximately $3 million as compared to
profits of approximately $3 million for first quarter 2007. Brooke
Capital's first quarter 2008 results were adversely affected by a
decrease in initial franchise fees. Brooke Corporation had
previously announced plans to sell some of its Aleritas common
stock for the purposes of repaying debt and increasing equity
capital of its bank subsidiary. Brooke Corporation has delayed
those plans until market conditions improve. Non-Investment
Activities Brooke Corporation's non-investment related activities
are focused on banking operations. Banking operations are conducted
through Brooke Savings Bank and its parent company, Brooke
Bancshares, Inc. Brooke Savings Bank reported total assets of
approximately $147 million as of March 31, 2008. Pretax losses of
Brooke Savings Bank were $202,000 in the first quarter 2008, as
compared to pretax profits of $152,000 in the first quarter 2007.
The reduction in bank profits was directly related to the
acquisition of significant agent bank deposits in the first quarter
of 2008. Although Brooke Corporation believes the future
development of Brooke Savings Bank's banker agent network will
increasingly contribute to its profits, these activities are not
expected to significantly impact overall financial results for
Brooke Corporation in the near future. Earnings Conference Call
Brooke Corporation will host a conference call for analysts and
investors on May 13, at 10 a.m. CST. To join the call, please dial
(866) 825-3209 in the United States and Canada, or (617) 213-8061
if calling internationally. The conference ID number is 76717932. A
live broadcast of the call will be available on the Investor
Relations section of Brooke's Web site at
http://www.brookebanker.com/. A replay of this call will be
available for eight days by using the dial-in (888)286-8010 in the
United States and Canada and (617) 801-6888 if calling
internationally. The replay conference ID number is 41279659. About
Brooke Corporation ... Brooke Corporation is listed on the NASDAQ
Global Market under the symbol "BXXX". Brooke Corporation owns 100
percent of Brooke Savings Bank, a banker agent thrift institution,
81 percent of Brooke Capital Corporation (AMEX:BCP), an insurance
company and insurance agency, and 62 percent of Aleritas Capital
Corp. (a d/b/a of Brooke Credit Corporation; OTC Bulletin Board:
BRCR), a finance company specializing in insurance lending.
Investor Relations Contact ... Linda Rothemund, Market Street
Partners, or (415) 445-3236. E-mail Distribution ... To receive
electronic press alerts, visit the Brooke Corporation media room at
http://brookecorp.mediaroom.com/ and subscribe to our E-mail alerts
online through the Get the News link. This press release contains
forward-looking statements. All forward-looking statements involve
risks and uncertainties, and several factors could cause actual
results to differ materially from those in the forward-looking
statements. The following factors, among others, could cause actual
results to differ from those indicated in the forward-looking
statements: the uncertainty that the company will be able to sell
its investments in Aleritas or Brooke Capital or finance such
investments on terms it finds acceptable; the share price of
Aleritas and Brooke Capital common stock; whether Brooke Savings
Bank will succeed in expanding its banker agent network and if it
does, whether it will achieve anticipated results from the network;
the impact of competitive products and pricing; dependence on
third- party suppliers and their pricing; the availability of
funding sources; changes in the law and in economic, political and
regulatory environments; changes in management; the effectiveness
of internal controls; and risks and factors described from time to
time in reports and registration statements filed by Brooke
Corporation with the Securities and Exchange Commission. A more
complete description of Brooke's business is provided in Brooke
Corporation's most recent annual, quarterly and current reports,
which are available from Brooke Corporation without charge or at
http://www.sec.gov/. DATASOURCE: Brooke Corporation CONTACT: Linda
Rothemund of Market Street Partners, +1-415-445-3236, , for Brooke
Corporation Web site: http://www.brookecorp.com/
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