OVERLAND PARK, Kan., May 12, 2008 (BUSINESS WIRE) -- Brooke Credit
Corporation d/b/a Aleritas Capital Corp. (OTCBB: BRCR; BRCRW; BRCRU)
today reported first quarter 2008 financial results.
For
the three months ended March 31, 2008, the Company reported after-tax
losses of $23.6 million, or a loss of 0.87 cents per diluted share, on
a loss in operating revenues of $17.4 million, compared to after-tax
profits of $4.9 million, or 0.19 cents per diluted share, on operating
revenues of $13.8 million for the same period in the prior year.
The
first quarter loss was primarily the result of an after-tax expense of
$7.8 million for an increase in loss reserves related to on balance
loans, an after-tax expense of $7.3 million for impairments related to
off balance loans and a one time after-tax expense of $5.1 million
related to debt refinancing.
Aleritas' Chairman Robert D. Orr
stated, "Since rejoining Aleritas on March 31st, Mike Hess and I
completed a comprehensive analysis of the Aleritas loan portfolio.
We've identified certain loans that we have required to be resolved
over the next year and increased reserves in anticipation of
accelerated asset liquidations. Some may think the increase in reserves
is unjustified because it follows so soon after the year end analysis
of reserves. Unfortunately, the credit world has markedly changed in
the last few months and Mike and I believe a more rigorous approach to
troubled loans is required."
As
of March 31, 2008, and after recording the above expenses, Aleritas
Capital had stockholders' equity exceeding $90 million, resulting in a
book value per share of approximately $3.49 and a capital to asset
ratio exceeding 30%. As of May 9, 2008, the closing price of BRCR stock
was $1.50, which represents approximately 43% of the quarter end book
value per share.
Aleritas President Michael Hess added, "We have beefed up
reserves and are now ready to get back to the business of lending. With
$90 million in equity and a capital to asset ratio exceeding 30%, we
believe we have the financial strength to provide credit to insurance
related businesses despite a challenging economic environment."
About
the Company... Aleritas Capital is a specialty finance company that
originates loans to insurance agencies and insurance-related
businesses.
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 the
Company with the Securities and Exchange Commission. A more complete
description of the Company's business is provided in the Company's
reports and registration statements, which are available from the
Company without charge at www.aleritascapital.com
or at www.sec.gov.
Contact Info:
The Equity Group Inc
Adam Prior, Vice President
212-836-9606
aprior@equityny.com
or
Media:
Aleritas Capital
Jeff Wallace, 913-323-9214
jeff.wallace@aleritascapital.com