PSM Holdings, Inc. (fka PSMH)

[Royal]

PSMH "We attribute our $.02 earnings per share loss for the quarter to expected increases in operating expenses related to the Company's investment in recruiting experienced mortgage executives and certain non-recurring charges related to the our Phase 1 growth strategy in acquiring four mortgage companies, which resulted in the Company incurring significant general and administrative expenses as compared to the expenses incurred in the comparable prior period in 2010. Many overlapping expenses among the acquired companies are in the process of being eliminated which we expect, once completed, will have a positive material impact on EBITA and free cash flow, as we continue to absorb each acquisition," Mr. Hanna added.