FOR IMMEDIATE RELEASE
August 14, 2000
POINT WEST CAPITAL CORPORATION
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ANNOUNCES SECOND QUARTER RESULTS
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AND FINANCIAL CONDITION
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SAN FRANCISCO --(August 14, 2000) Point West Capital Corporation
(Nasdaq Symbol: PWCC) today reported the following: (Dollars in thousands,
except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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(Loss) gain before extraordinary gain
$ (3,343) $ 1,758 $ (3,427) $ 1,258
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Net (loss) income $ (3,343) $ 1,758 $ (2,185) $ 1,258
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(Loss) income per share before extraordinary gain:
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Basic $(1.00) (1) $ 0.53 (2) $(1.02) (4) $ 0.38 (5)
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Diluted $(1.00) (1) $ 0.48 (3) $(1.02) (4) $ 0.34 (6)
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Net (loss) income per share:
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Basic $(1.00) (1) $ 0.53 (2) $(0.65) (4) $ 0.38 (5)
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Diluted $(1.00) (1) $ 0.48 (3) $(0.65) (4) $ 0.34 (6)
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<FN>
(1) Based on 3,352,624 weighted-average shares of common stock outstanding.
(2) Based on 3,341,635 weighted-average shares of common stock outstanding.
(3) Based on 3,657,996 weighted-average shares of common stock outstanding.
(4) Based on 3,352,443 weighted-average shares of common stock outstanding.
(5) Based on 3,307,820 weighted-average shares of common stock outstanding.
(6) Based on 3,680,091 weighted-average shares of common stock outstanding.
</FN>
The net loss for the three and six months ended June 30, 2000 is
primarily attributable to a net loss on securities related to Point West
Ventures, which makes loans to and invests in small businesses, as a result of
the write-down of impaired investments. During the
three and six months ended June 30, 2000, Ventures wrote-down several
investments in the aggregate amount of $3.9 million and $4.7 million,
respectively. The write-downs were a result of the market downturn related to
Internet and other technology stocks. In addition, during the second quarter of
2000, Allegiance recorded a $650,000 reserve in connection with a delinquent
loan. The six months ended June 30, 2000 reflects a $1.2 million extraordinary
gain, net of income taxes of $822,000, recognized during the first quarter of
2000 in connection with Dignity Partners Funding Corp. I, the Company's
wholly-owned viatical settlement subsidiary.
The Company also reported that, at June 30, 2000, Allegiance Capital,
which makes loans to funeral home and cemetery owners, had 24 loans outstanding
in the aggregate principal amount of $36.0 million, all of which bear interest
at a fixed rate. This amount is up from 22 loans outstanding in the aggregate
principal amount of $34.5 million at March 31, 2000. At June 30, 2000, Point
West Ventures had non-marketable securities carried at an aggregate cost of
$13.8 million and investment securities (available-for-sale) carried at fair
value in the aggregate amount of $1.2 million. These amounts are down from
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 at March 31, 2000. At June 30, 2000, 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 June 30, 2000 filed with the Securities and
Exchange Commission on August 11, 2000.
The following is summary balance sheet information as of June 30, 2000:
Cash and cash equivalents....................................$9,132,639
Restricted cash................................................$642,358
Investment Securities -- available-for-sale..................$1,242,634
Loans receivable, net of unearned income of
$555,563 and net of an allowance for loan
losses of $827,422 .....................................$34,498,265
Purchased life insurance policies...........................$30,971,252
Non-marketable securities...................................$14,783,085
Total assets................................................$95,739,409
Revolving certificates.......................................$4,945,159
Term certificates...........................................$24,218,644
Securitized notes payable...................................$36,206,863
Debenture payable............................................$6,500,000
Total liabilities...........................................$72,788,245
Accumulated comprehensive loss, net of tax...................$(310,707)
Accumulated deficit........................................$(3,999,697)
Total stockholders' equity..................................$22,951,164
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: SPECIALTY FINANCE EARNINGS).
CONTACTS: POINT WEST CAPITAL CORPORATION, SAN FRANCISCO.
Alan B. Perper, 415/394-9467