FOR IMMEDIATE RELEASE
May 12, 2000
POINT WEST CAPITAL CORPORATION
ANNOUNCES FIRST QUARTER RESULTS
AND FINANCIAL CONDITION
SAN FRANCISCO --(May 12, 2000) Point West Capital Corporation (Nasdaq
Symbol: PWCC) today reported the following: (Dollars in thousands, except per
share amounts)
Three Months Ended
March 31,
2000 1999
-------------------- --------------------
Loss before
extraordinary gain $ (84) $ (500)
-------------------- --------------------
Net income (loss) $ 1,158 $ (500)
-------------------- --------------------
Loss per share before
extraordinary gain:
-------------------- --------------------
Basic $(0.02) (1) $ (0.15)(2)
-------------------- --------------------
Diluted $(0.02) (1) $ (0.15)(2)
-------------------- --------------------
Net income (loss) per
share:
-------------------- --------------------
Basic $ 0.35 (1) $ (0.15)(2)
-------------------- --------------------
Diluted $ 0.31 (3) $ (0.15)(2)
-------------------- --------------------
(1) Based on 3,352,261 weighted-average shares of common stock outstanding.
(2) Based on 3,273,628 weighted-average shares of common stock outstanding.
(3) Based on 3,751,463 weighted-average shares of common stock outstanding.
The increase in net income for the three months ended March 31, 2000 is
attributable to a $1.2 million extraordinary gain, net of income taxes of
$822,000, recognized in connection with Dignity Partners Funding Corp. I
("DPFC")(the Company's wholly-owned viatical settlement subsidiary). In March
2000, as a result of collection delays on life insurance policies held by DPFC,
the Company and the
holders of the Securitized Notes issued by DPFC entered into an agreement
modifying ongoing responsibilities of the Company and the Noteholders. As a
result, the Noteholders will cover any policy collection shortfalls through June
30, 2002 and the Company will recognize a reduced monthly servicing fee of
$18,000. In addition, the Company will not recognize any future gain or loss
related to DPFC until DPFC is sold or liquidated pursuant to the agreement. At
such time, the Company expects to recognize a pre-tax gain in an amount
approximately equal to the $4.6 million accumulated deficit of DPFC at March 31,
2000.
The Company also reported that, at March 31, 2000: Allegiance Capital (which
makes loans to funeral home and cemetery owners) had 22 loans outstanding in the
aggregate principal amount of $34.5 million, all of which bear interest at a
fixed rate; Point West Ventures (which makes loans to and invests in small
businesses) had one loan outstanding in the principal amount of $314,000,
non-marketable securities carried at an aggregate cost of $15.2 million and
investment securities (available-for-sale) carried at fair value in the
aggregate amount of $6.3 million; and Point West Capital (the parent company)
had non-marketable securities carried at an aggregate cost of $939,000.
Point West Capital is a specialty financial services company. Further
information regarding the Company, its results of operations and the other
matters discussed in this press release is contained in the Company's Form 10-Q
for the quarterly period ended March 31, 2000 filed with the Securities and
Exchange Commission on May 12, 2000.
The following is summary balance sheet information as of March 31,
2000:
Cash and cash equivalents...................................$6,829,405
Restricted cash.............................................$1,402,306
Investment Securities -- available-for-sale.................$6,332,746
Loans receivable, net of unearned income of
$541,968 and net of an allowance for loan
losses of $175,000 ....................................$33,910,283
Purchased life insurance policies..........................$31,525,162
Non-marketable securities..................................$16,183,213
Total assets...............................................$97,518,977
Revolving certificates......................................$4,164,978
Term certificates..........................................$24,364,690
Securitized notes payable..................................$36,363,824
Debenture payable...........................................$3,000,000
Total liabilities..........................................$69,252,540
Accumulated comprehensive income, net of tax................$1,661,526
Retained deficit............................................$(656,657)
Total stockholders' equity.................................$28,266,437
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: SPECIALTY FINANCE EARNINGS).
CONTACTS: POINT WEST CAPITAL CORPORATION, SAN FRANCISCO.
Alan B. Perper, 415/394-9467