Contact Information: CONTACT: Shearson Financial Network Las Vegas, Nevada Michael Barron 702-868-7922
Shearson Financial Network, Inc. Posts Profit for Second Quarter
| Source: Shearson Home Loans
LAS VEGAS, NV--(Marketwire - August 14, 2007) - Shearson Financial Network, Inc. (OTCBB : SFNN ) (www.sfnncorp.com) announced today that it has posted an operating
profit for the second quarter ending June 30, 2007 of $322,309. The
Company's net income for the quarter after accounting for interest expense,
debt discount expense and minority shareholder interest was $176,753. For
the six month period the company posted a net loss of $610,571.
Second Quarter Results
Net revenues from origination and/or sale of loans increased 10% or
$152,182 to $1,679,763 for the quarter ended June 30, 2007 from $1,527,581
for the quarter ended June 30, 2006. Total operating expenses decreased
$116,755 or 9.2% to $1,156,892 for the quarter ended June 30, 2007, from
$1,273,647 for the quarter ended June 30, 2006. Income from operations
increased $517,685 or 265%, to $322,309 for the quarter ended June 30, 2007
as compared to a loss from operations of $195,376 for the quarter ended
June 30, 2006.
Six Month Results
Net revenues from origination and/or sale of loans increased 63.1% or
$1,085,236 to $2,084,036 for the six months ended June 30, 2007 from
$1,718,000 for the six months ended June 30, 2006. Total operating
expenses decreased $1,440,786 or 35.3% to $2,643,335 for the six months
ended June 30, 2007 as compared to $4,084,121 for the six months ended June
30, 2006. The decrease is related to a reduction in wages of $428,084 or
27.3%, a decrease in professional fees of $1,211,313 or 70% and a decrease
in depreciation of $28,922 or 9.4%, offset by an increase in SGA of
$227,533 or 47.4%. The decrease is attributable to the reduction in work
force and the stabilization of professional fees, offset by the increase in
SGA which is related to the acquisition of 85% of Allstate Home Loans, Inc.
Income from operations increased $2,578,034 or 890%, from a loss from
operations of $2,891,866 for the six months ended June 30, 2006. to a loss
of $313,832 for the six months ended June 30, 2007 as compared to a loss
from operations of $2,891,866
Shearson Home Loans, the Company's mortgage banking and brokerage
subsidiary, posted its 18th consecutive quarter with an operating profit
for the period ending June 30, 2007 of $862,457. Six month net income
results for Shearson Home Loans was a profit of $929,369.
"We are pleased with our operating results for the quarter and for the six
months ending June 30, 2007. Our company has made difficult decisions and
our team has pulled together during this difficult time in our industry
when so many of our friends are no longer here," stated Michael Barron,
Chairman & CEO. "It's been a tough time for mortgage companies, perhaps the
worst of all time, but we feel we have done the things necessary to remain
a profitable enterprise." He continued. "Our strategy is to continue the
things that got us here and focus on the fundamentals of our business --
good, sound, low risk mortgage origination."
Shearson Financial Network, Inc. reported net income of $2.8 million for
the year ending December 31, 2006 and the company's operating unit,
Shearson Home Loans, contributed $1.6 million to earnings. The value of
Assets held by SFNN increased to $30.6 million for the year ended December
31, 2006 from $4.4 million in 2005, an increase of 590%. Net worth
increased to $6.4 million from $(7.8) million during the same period,
representing an increase of $14.2 million. Revenue from the originations of
loans increased 25% or $1.7 million to $8.5 million. Earnings per share for
the year ended December 31, 2006 was $0.02 as compared to a loss per share
of $0.50 from the year ended December 31, 2005.
About Shearson Financial Network, Inc.
The company is a consolidator of independent mortgage brokerages. Shearson
operates 17,538 sq. ft. of branch office space 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, www.sfnncorp.com or
www.shearsonhomeloans.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.