Corporation Reports Second Quarter Earnings
PARK, Kan., August 8, 2007 - Brooke Corporation
(Nasdaq: BXXX) today reported its second quarter financial results.
earnings for the six months ended June 30, 2007, totaled $9,515,000, or 63
per diluted share, on revenues of $120,619,000, compared to net earnings of
$6,443,000, or 50 cents per diluted share, on revenues of $86,751,000 for the
same period in the prior year. For this six-month period, total earnings
increased 48 percent and total revenues increased 39 percent. Total earnings
increased primarily as the result of increased revenues from gain on loan
earnings for the three months ended June 30, 2007, totaled $2,706,000, or 15
cents per diluted share, on revenues of $56,595,000, compared to net earnings
$2,911,000, or 22 cents per diluted share, on revenues of $45,565,000 for the
same period in the prior year. For this three-month period, total earnings
decreased 7 percent and total revenues increased 24 percent. Total earnings
decreased primarily as the result of decreased revenues from initial franchise
discussions of segment revenues and selected data follow.
the second quarter of 2007, the lending segment recorded before tax income
$5,673,000, compared to before tax income of $2,641,000 in the second quarter
2006. This segment’s performance remains consistent with the earn-out benchmarks
of the July 18 merger between Oakmont and Brooke Credit. The lending segment’s
loan portfolio increased to $593,400,000 on June 30, 2007.
Lowry, president and chief executive officer of Brooke Credit Corporation
stated, “I am pleased with Brooke Credit’s results during the second quarter.
This solid earnings quarter for Brooke Credit resulted in large part from strong
loan origination activities. Second quarter loan originations totaled
approximately $102 million, compared to $86 million in the comparable quarter
2006, or a 19 percent increase.”
the second quarter of 2007, the franchise segment recorded before tax loss
$727,000, compared to before tax income of $2,081,000 in the second quarter
2006. The number of franchise locations increased to 828 on June 30, 2007.
Garst, chairman and chief executive officer of Brooke Franchise Corporation
stated, “Franchise recruitment is a “lumpy” activity. Our second quarter results
reflected decreased revenues from initial franchise fees resulting primarily
from granting fewer start up franchises. We believe this to be temporary and
result of more rigorous franchise underwriting and transitioning of marketing
include a sales seminar approach.”
financial services segment was added during the first quarter of 2007 as a
result of the recent acquisitions of Brooke Savings Bank and a controlling
interest in Brooke Capital Corporation. The financial services segment includes
activities associated with the sale of banking services by Brooke Savings Bank,
the sale of life insurance policies by First Life America Corporation and the
brokering of loans to insurance-related businesses by Brooke Capital Advisors.
During the second quarter of 2007, the financial services segment recorded
before tax income of $1,946,000 primarily as the result of consulting fees
generated by Brooke Capital Advisors.
The following information was filed by Aleritas Capital Corp. on Monday, August 13, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.