-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Nl5q4KOq2hzItyC4jvorZbXYu/2O7DqpFE5Mh02GLj9xux8S/b8awiNv3B+S9zQc 9Sq7reoisXsvzBq8wJH2OQ== 0000025191-95-000004.txt : 199507120000025191-95-000004.hdr.sgml : 19950711 ACCESSION NUMBER: 0000025191-95-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950328 ITEM INFORMATION: Other events FILED AS OF DATE: 19950328 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COUNTRYWIDE CREDIT INDUSTRIES INC CENTRAL INDEX KEY: 0000025191 STANDARD INDUSTRIAL CLASSIFICATION: MORTGAGE BANKERS & LOAN CORRESPONDENTS [6162] IRS NUMBER: 954083087 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08422 FILM NUMBER: 95523857 BUSINESS ADDRESS: STREET 1: 155 NORTH LAKE AVE CITY: PASADENA STATE: CA ZIP: 91101-1857 BUSINESS PHONE: 8183048400 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: March 28, 1995 Date of earliest event reported: March 21, 1995 COUNTRYWIDE CREDIT INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 1-8422 95-4083087 (State or other jurisdiction (Commission (IRS Employer of incorporation File Number) Identification Number) 155 North Lake Avenue, Pasadena, CA 91101 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code:(818) 304-8400 Item 5. Other Events. A copy of a press release dated March 21, 1995, announcing the Company's preliminary results for the fiscal year ended February 28, 1995, is attached hereto as Exhibit 99 and is incorporated herein by this reference. Item 7. Financial Statement and Exhibits. (c) Exhibits (99) Press-release dated March 21, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COUNTRYWIDE CREDIT INDUSTRIES, INC. Dated: March 28, 1995 By: /s/ Stanford L. Kurland Stanford L. Kurland Senior Managing Director, Chief Operating Officer and Chief Financial Officer EX-99 2 FOR IMMEDIATE RELEASE CONTACT: Eric Sieracki John Dolphin (818) 304-7523 Laura Snow (818) 304-4422 COUNTRYWIDE CREDIT INDUSTRIES, INC. REPORTS FOURTH QUARTER EARNINGS - DECLARES CASH DIVIDEND PASADENA, CA (March 21, 1995) -- Countrywide Credit Industries, Inc. (NYSE:CCR), the nation's largest residential mortgage lender and servicer, announced today that unaudited net earnings for the fourth fiscal quarter ended February 28, 1995 were $19.4 million. Primary and fully diluted earnings per common share were $0.21. Earnings for the quarter ended February 28, 1994 were $47.1 million, or $0.51 per primary and fully diluted share. Unaudited net earnings for fiscal 1995 amounted to $88.4 million, down 51 percent versus the prior year. Primary and fully diluted earnings per share for the year were $0.96. In fiscal 1994, net earnings totaled $179.5 million, or $1.94 per fully diluted share. Countrywide's Board of Directors declared a cash dividend of $0.08 per common share for the fourth quarter, payable April 17, 1995 to shareholders of record on April 3, 1995. "In Countrywide's fourth fiscal quarter, the servicing segment highlights included continued portfolio expansion and healthy profit margins," said David S. Loeb, chairman. "The portfolio grew by $8 billion during the quarter and $28 billion for the fiscal year, despite difficult market conditions. Bulk acquisitions, which complement current production and augment portfolio growth, amounted to $4 billion for the quarter and $18 billion for the fiscal year. Prepayments occurred at an annualized rate of only 5 percent during the quarter. Expectations of low future prepayments contributed to a servicing asset amortization rate of 6 percent which, coupled with modest hedge costs, resulted in servicing margins remaining strong during the quarter. (more) "Production for the quarter approached $6 billion in spite of downward seasonal trends," Loeb continued. "More importantly, application activity reflected steady improvement during the quarter. The daily average application rate was $119 million in December, $125 million in January and $135 million in February. Furthermore, this rate has increased to over $150 million month-to-date and the pipeline currently exceeds $4 billion. As the portfolio continues to grow, the production segment provides necessary protection for our valuable servicing asset and remains a critical component of our counter cyclical macro-hedge. Loss on sale of loans moderated for the quarter, but this improvement was substantially offset by a decline in origination fees driven by a higher percentage of third-party production. In addition, due to lower volume during the quarter, the production segment margin rate was substantially the same as in the third quarter despite a smaller loss. "While fiscal 1995 was a challenging year, it was the third most profitable year in the company's history. The industry landscape appears to be improving because liquidations and outsourcing are reducing excess capacity and a flattening yield curve is increasing consumer demand for fixed-rate loans. This improving environment, combined with our business development efforts and substantial servicing earnings, should provide a stable foundation for the company as we enter fiscal 1996." Countrywide ended the year with a servicing portfolio of approximately $113 billion, 34 percent higher than the portfolio it held at the end of fiscal 1994. The weighted average coupon of the loans serviced was 7.6 percent at February 28, 1995 and 7.2 percent at February 28, 1994. In the fourth quarter, prepayments slowed to an annualized rate of 5 percent, down from 32 percent in the quarter ended February 28, 1994. Of the $28 billion of loans produced during the year, 30 percent were refinances versus 75 percent in fiscal 1994. Adjustable-rate loans accounted for 34 percent of total production during fiscal 1995 and 19 percent during fiscal 1994. Countrywide Credit Industries, Inc., founded in 1969, originates, purchases, sells and services loans for single-family homes. (tables follow) Countrywide Credit Industries, Inc. CONSOLIDATED INCOME STATEMENTS (unaudited) Three Months Twelve Months Ended Ended February 28, February 28, (Dollar amounts in 1995 1994 % 1995 1994 % thousands, except Change Change share data) Revenues Loan origination fees $35,360 $97,565 (64%) $203,426 $379,533 (46%) Gain (loss) on sale of loans (11,036) 22,555 (149%) (41,342) 88,212 (147%) production revenue 24,324 120,120 (80%) 162,084 467,745 (65%) Interest earned 97,380 108,695 (10%) 343,138 376,225 (9%) Interest charges (83,766) (77,141) 9% (267,685) (275,906) (3%) Net interest income 13,614 31,554 (57%) 75,453 100,319 (25%) Loan servicing income 118,918 86,001 38% 428,994 307,477 40% Less Amortization of servicing assets (24,371) (38,742) (37%) (95,768) (242,177) (60%) Servicing hedge (amortization) benefit (608) (7,500) (92%) (40,030) 73,400 (155%) Less write-off of servicing hedge 0 0 0% (25,600) 0 100% Net loan administration income 93,939 39,759 136% 267,596 138,700 93% Gain on sale of servicing 0 0 0% 56,880 0 100% Commissions, fees and other income 8,836 12,764 (31%) 40,650 48,816 (17%) Total revenues 140,713 204,197 (31%) 602,663 755,580 (20%) Expenses Salaries and related expenses 45,013 62,590 (28%) 199,061 227,702 (13%) Occupancy and other office expenses 25,304 28,387 (11%) 102,193 101,691 0% Guarantee fees 24,113 16,775 44% 85,831 57,576 49% Marketing expenses 5,361 7,771 (31%) 23,217 26,030 (11%) Branch and administrative office consolidation costs 0 0 0% 8,000 0 100% Other operating expenses 8,572 10,103 (15%) 37,016 43,481 (15%) Total expenses 108,363 125,626 (14%) 455,318 456,480 (0%) Earnings before income taxes 32,350 78,571 (59%) 147,345 299,100 (51%) Provision for income taxes 12,940 31,428 (59%) 58,938 119,640 (51%) NET EARNINGS $19,410 $47,143 (59%) $88,407 $179,460 (51%) Earnings per Share Primary $0.21 $0.51 (59%) $0.96 $1.97 (51%) Fully Diluted $0.21 $0.51 (59%) $0.96 $1.94 (51%) Weighted Average Shares Outstanding Primary 92,066,000 92,315,000 0% 92,087,000 90,501,000 2% Fully Diluted 92,284,000 92,315,000 0% 92,216,000 92,445,000 0% (more) Countrywide Credit Industries, Inc. SELECTED OPERATING DATA (unaudited) (Dollar amounts in thousands) Three Months Ended Twelve Months Ended February 28, February 28, 1995 1994 % 1995 1994 % Change Change Volume of loans produced $5,784,191 $13,127,607 (56%) $27,866,170 $52,458,879 (47%) Number of loans produced 55,872 99,366 (44%) 250,335 382,853 (35%) Bulk servicing acquisitions $4,444,859 $46,998 9,358% $17,569,390 $3,432,271 412% At February 28, 1995 1994 % Change Pipeline of loans- in-process $3,640,385 $7,622,592 (52%) Loan servicing portfolio* $113,110,562 $84,677,802 34% Number of loans serviced* 987,139 697,390 42% *Includes warehoused loans and loans under subservicing agreements. -----END PRIVACY-ENHANCED MESSAGE-----