OWHC - Ocean West Holdings (fka OWHC)

[slow_feet]

Q ending 12/32/03: loss of .095 ps (-529k)


Three Months Ended December 31, 2003 Compared to Three Months Ended December 31,

During the quarter ended December 31, 2003, we funded 1,177 loans with an aggregate dollar value of approximately $211 million compared to 1,222 loans with an aggregate dollar value of approximately $206 million in the quarter ended December 31, 2002. This decrease was due to less favorable market conditions. The average loan size for the quarter ended December 31, 2003 was approximately $179,000, which was a decrease from an average loan size of $169,000 for the quarter ended December 31, 2002. As the Company continues to increase its originations in markets outside California, the average loan size decreases due to lower home prices in much of the rest of the nation.

Net revenues from origination and/or sale of loans decreased to $3.1 million for the quarter ended December 31, 2003 from $3.3 million for the quarter ended December 31, 2002. The decrease in revenues can be attributed to the fact that the Company was unable to fund loan production due to the loss of warehouse line capacity.

Total operating expenses increased by $694,000 to $3.6 million for the quarter ended December 31, 2003 from $2.9 million for the quarter ended December 31, 2002. Salaries, wages and payroll taxes were $1.6 million for the quarter ended December 31, 2003 compared to $1.5 million for the December 31, 2002. The increase in salaries, wages and payroll taxes was primarily due to an increase in staff personnel at the branch offices. Other general and administrative expenses consist primarily of rent, advertising services, and fees for professional services, insurance and office expenses. These expenses increased $601,000 to $2.0 million for the quarter ended December 31, 2003 from $1.4 million for the same period in 2002. Rent, insurance and related office expenses increased as more branch officers were added as we continued to move from primarily originating loans through independent brokers to originating loans primarily though our employees.

We had a net loss of $529,566 for the quarter ended December 31, 2003 compared to net income of $337,008 for the same quarter of 2002. The significant decrease in income for the December 31, 2003 quarter was due to a decrease in loan volume and an increase in general and administrative expenses.
http://www.sec.gov/Archives/edgar/data/1104538/000095015004000261/a96605e10qsb.htm