Contact Information: CONTACT: Shearson Financial Network Las Vegas, Nevada Michael Barron 702-868-7922
Shearson Financial Network, Inc. Reports Quarterly Results
| Source: Shearson Home Loans
LAS VEGAS, NV -- (MARKET WIRE) -- May 21, 2007 -- Shearson Financial Network, www.sfnncorp.com,
(OTCBB : SFNN ) reported a 73% decrease in its net loss for the quarter ended
March 31, 2007 as compared to the same period during 2006, as filed with
the SEC today on Form 10QSB. Shearson posted a loss for the period of
$787,324 as compared to a $2.8 million loss for the same period during
2006, which represents a net loss decrease of $2.1 million.
Net revenues from origination and/or sale of loans increased 487.3% or
$933,000 to $1.1 million for the quarter ended March 31, 2007 from $191,000
for the quarter ended March 31, 2006. The increase in revenues can be
attributable to the acquisition of 85% of Allstate Home Loans, Inc. Total
operating expenses decreased 49.5% or $1.5 million to $1.5 million for the
quarter ended March 31, 2007 from $2.9 million for the quarter ended March
31, 2006. The decrease in expenses is related to a 46.5% decrease in wages
of $537,769 and a 69.2% decrease in professional fees of $949,234, which is
attributable to the Company's reduction in its work force, consolidation of
expenses due to acquisitions and a stabilization of professional fees
associated with investment activities.
"We are pleased with the operating results our company has reported for
this difficult quarter in 2007," stated Michael Barron, the company's
Chairman. "Our industry has experienced one of the most challenging
periods in mortgage history. Over 70 companies within our industry have
ceased doing business and many more have felt the impact of their departure
during this correction in the sub-prime market. We have improved over last
year's results for the period and continue strive to return to
profitability for 2007."
About Shearson Financial Network, Inc.
The company is a consolidator of independent mortgage brokerages. Shearson
operates 17,538 sq. ft. of branch office space and is licensed in 33
states. The company currently is seeking new branches for its growing
network. For more information, please visit the company's website at
www.shearsonfinancialnetwork.com.
Statements in this press release other than statements of historical fact,
including statements regarding the company's plans, beliefs, and estimates
as to projected results and market size are "forward-looking statements."
Such statements are subject to certain risks and uncertainties, including
factors listed from time to time in the company's SEC filings, and actual
results could differ materially. These forward-looking statements represent
the company's judgment as of the date of this release. The company
disclaims, however, any intent of obligation to update these
forward-looking statements.