TMSF Holdings Inc (fka TMFZ)

[Guy]

TMSF Holdings, Inc. Reports Record First-Quarter Results
Tuesday May 24, 8:02 am ET
Revenue of $19.2 Million Was 158.7% Higher Than First Quarter 2004
First-Quarter Net Income Increased 183.4% to $3.0 Million over Previous Year
Conference Call Scheduled for 10:00 a.m. PDT Today

http://biz.yahoo.com/bw/050524/245445.html?.v=1

LOS ANGELES--(BUSINESS WIRE)--May 24, 2005-- TMSF Holdings, Inc. (OTCBB:TMFZ - News) today announced results of operations for the three months ended March 31, 2005. For the first quarter of 2005, revenues for the Company and its wholly owned subsidiary, The Mortgage Store Financial, Inc., totaled $19.2 million compared to revenues of $7.4 million for the three months ended March 31, 2004. This represented a 158.7% improvement from the prior-year first quarter. Income from operations for the first quarter of 2005 was $4.9 million, a 183.9% increase over operating income of $1.7 million for the same period in 2004.
Net income for the 2005 first quarter was $3.0 million, or $0.20 cents per basic share, $0.19 diluted, a 183.4% increase compared to net income of $1.0 million, or $0.07 per basic and diluted share, for the first quarter of last year.

Commenting on the company's performance during the quarter, Raymond Eshaghian, CEO of TMSF Holdings, Inc. and President of The Mortgage Store Financial, Inc., said, "Our mortgage originations for the three months ended March 31st increased nearly 140% over the prior year, compared to the whole industry where in the first quarter of 2005 nationwide loan originations grew a little more than 7% over the same period last year. This reflects success of our plan to expand marketing efforts in new geographical areas, and our strategy to emphasize purchase money mortgage originations.

"Our first-quarter purchase money mortgages grew 198% year over year and accounted for 69.6% of our originations during the quarter ended March 2005, compared to 55.9% for the same period in 2004," Mr. Eshaghian continued.

"We remain committed to providing superior customer service while maintaining one of the highest standards of quality control in the industry," Mr. Eshaghian concluded.

Management of TMSF Holdings will hold a conference call to discuss first-quarter results today, Tuesday, May 24, at 10:00 a.m. PDT (1:00 p.m. EDT). To participate in the conference call, please call the following number five to ten minutes prior to the scheduled start time to register: 877-586-7724. International callers should dial 706-679-0614. There is no passcode required for this call.

If you are unable to participate in the call at this time, a replay will be available on Tuesday, May 24 at 11:00 a.m. PDT, through Tuesday, May 31 at 9:00 p.m. PDT. To access the replay dial 800-642-1687 and enter the conference ID number 6523068.

A replay of the conference call will also be made available on the TMSF Holdings web site www.TMSFHoldings.com.

About TMSF Holdings

TMSF Holdings, Inc. is a financial holding company that through its wholly owned subsidiary, The Mortgage Store Financial, Inc., is engaged in nationwide mortgage banking. The goal of The Mortgage Store Financial, Inc. is to become a national leader in the mortgage banking industry by continuing to expand its geographic coverage and maximizing the volume of business from existing clients while adopting innovative processes to improve its profitability.

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in TMSF Holdings, Inc. Information Statement Filing and its Annual Report on form 10-K for the year ended December 31, 2004, and its subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission.

TMSF HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
For the Three Months Ended March 31, 2005 and March 31, 2004

For the three months
ended March 31,
------------------------
2005 2004
------------ -----------

Total revenue $19,154,210 $7,405,235

Total cost of sales 8,696,981 3,182,360
------------------------

Gross profit 10,457,229 4,222,875

Operating expenses 5,531,900 2,488,101
------------ -----------

Income from operations 4,925,329 1,734,774

Total Other Income 18,659 94,953
------------ -----------

Income before provision for income taxes 4,943,988 1,829,727

Provision for income taxes 1,973,226 781,600
------------ -----------

Net income $2,970,762 $1,048,127
============ ===========

Basic earnings per share $0.20 $0.07
============ ===========
Diluted earnings per share $0.19 $0.07
============ ===========

Basic weighted average common shares
outstanding 15,000,000 15,000,000
============ ===========
Diluted average common shares outstanding 16,057,691 15,750,000
============ ===========





TMSF HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2005 and December 31, 2004

ASSETS

March 31, December 31,
2005 2004
------------- -------------

Current assets
Cash and cash equivalents $7,025,640 $8,565,215
Mortgage loans held for sale
(net of loss reserve of $127,500 &
$43,690 respectively) 91,062,307 121,115,941
Mortgage loans to be repurchased
(net of loss reserve of $775,600 &
$475,238 respectively) 6,535,998 3,843,045
Other current assets 4,917,244 3,339,521
------------- -------------

Total current assets 109,541,189 136,863,722

Restricted cash 1,551,087 1,356,170
Real estate owned (net of loss reserves of
$50,000 & $0, respectively) 654,821 -
Property and equipment, (net of $419,269
and $342,704 accumulated depreciation) 939,546 667,269
Deposits and other assets 30,390 28,574
Deferred tax asset 439,701 439,701
------------- -------------

Total assets $113,156,734 $139,355,436
============= =============


LIABILITIES ------------ -------------
Current liabilities
Warehouse line of credit $84,522,516 $115,554,147
Obligation to repurchase mortgage
loans 7,311,598 4,318,283
Other current liabilities 3,939,642 5,070,789
------------ -------------

Total current liabilities 95,773,756 124,943,219

Long Term Liabilities
Deferred tax liability 102,709 102,709
------------ -------------

Total Liabilities 95,876,465 125,045,928
------------ -------------





TMSF HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS, continued
March 31, 2005 and December 31, 2004

March 31, December 31,
2005 2004
------------- -------------

Commitments and contingencies

Shareholders' equity

Preferred stock, $0.001 par value
10,000,000 shares authorized
no shares issued and outstanding - -

Common stock, $0.001 par value
100,000,000 shares authorized
15,000,000 shares
issued and outstanding 15,000 15,000
Additional paid-in capital 3,078,682 3,078,682
Retained earnings 14,186,587 11,215,826
------------- -------------

Total shareholders' equity 17,280,269 14,309,508
------------- -------------

Total liabilities and shareholders'
equity $113,156,734 $139,355,436
============= =============