Exhibit 99.1
BROOKE ANNOUNCES THIRD QUARTER RESULTS
OVERLAND PARK, Kan., Nov. 3 /PRNewswire-FirstCall/ -- Brooke Corporation
(Nasdaq: BXXX) reported that net earnings for the nine months ended September
30, 2005, totaled $7,426,000, or $.69 per diluted share, on revenues of
$106,132,000, as compared with net earnings of $5,216,000, or $.51 per diluted
share, on revenues of $72,067,000 for the same period a year ago. For this
nine-month period, total earnings increased 42% and total revenues increased
47%.
The Company also announced that net earnings for the three months ended
September 30, 2005, totaled $1,980,000, or $.18 per diluted share, on revenues
of $37,085,000, as compared with net earnings of $1,408,000, or $.14 per diluted
share, on revenues of $26,170,000 for the same period a year ago. For this
three-month period, total earnings increased 41% and total revenues increased
42%.
About our company ... Brooke Corporation is listed on the Nasdaq National
Market under the symbol "BXXX." Brooke Corporation is a holding company with two
primary subsidiaries. Brooke Franchise Corporation is a subsidiary that
distributes insurance and financial services through a network of over 495
franchise locations. Brooke Credit Corporation is a subsidiary that originates
loans to insurance agencies, financial services practices, funeral homes and
other local businesses, including Brooke franchises. For more information, go to
http://www.brookecorp.com.
Email Distribution ... If you would like to receive electronic press release
information, then please visit the "Investor Relations" section of our web site
at http://www.brookecorp.com and subscribe to our "Email Alerts" on-line.
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 achieve its short-term and long-term profitability and
growth goals, uncertainties associated with market acceptance of and demand for
the Company's products and services, the impact of competitive products and
pricing, the dependence on third-party suppliers and their pricing, its ability
to meet product demand, the availability of funding sources, the exposure to
market risks, uncertainties associated with the development of technology,
changes in the law and in economic, political and regulatory environments,
changes in management, the dependence on intellectual property rights, 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.
Brooke Corporation
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Nine Months Ended
September 30 September 30
------------------------ -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues
Insurance commissions $ 21,857 $ 15,529 $ 65,799 $ 46,718
Interest income (net) 2,921 1,282 7,032 3,159
Seller consulting fees 1,704 1,183 4,206 3,911
Gain on sale of
businesses 619 2,755 1,476 3,157
Initial franchise fees
for basic services 5,125 2,970 13,250 6,155
Initial franchise fees
for buyer assistance
plans 4,149 1,848 9,405 5,138
Gain on sale of notes
receivable (340) (125) 2,551 1,823
Insurance premiums earned 333 2 553 270
Policy fee income 494 645 1,287 1,523
Other income 223 81 573 213
Total Revenues 37,085 26,170 106,132 72,067
Expenses
Commissions expense 17,438 12,396 49,394 35,746
Payroll expense 7,176 5,418 21,125 14,345
Depreciation and
amortization 670 650 1,807 1,742
Insurance loss and loss
expense incurred - (17) - 13
Other operating expenses 7,140 4,719 17,964 10,294
Other operating interest
expense 657 151 1,415 485
Interest expense 1,037 710 2,837 1,634
Total Expenses 34,118 24,027 94,542 64,259
Income Before Income
Taxes 2,967 2,143 11,590 7,808
Income tax expense 987 735 4,164 2,592
Net Income $ 1,980 $ 1,408 $ 7,426 $ 5,216
Net Income per Share:
Basic $ 0.19 $ 0.14 $ 0.71 $ 0.54
Diluted $ 0.18 $ 0.14 $ 0.69 $ 0.51
SOURCE Brooke Corporation
-0- 11/03/2005
/CONTACT: Anita Larson of Brooke Corporation, +1-913-661-0123,
larsa@brookecorp.com /
/Web site: http://www.brookecorp.com /
(BXXX)