TORONTO, Sept. 27, 2004 (PRIMEZONE) -- Ofek Capital Corp. (Pink Sheets:OFCC) issued its audited consolidated annual financial statements along with Management Discussion and Analysis (MD&A) for the year ended October 31, 2003; submitted it for filing on SEDAR, the System for Electronic Document Analysis and Retrieval for public securities filings at www.sedar.com, and posted it on Ofek's website at www.Ofekcapital.com.
Comparative results between annual period ending October 31, 2002 and annual period ending October 31, 2003:
-- Revenues increased over 17.5% from $481,094 to $566,758
-- Expenses increased over 30% from $696,656 to $913,012,
materially caused by increased expenses at the holding
entity level and not at AJM Leasing, the operating
subsidiary
-- Net loss before the extraordinary one time writedown of goodwill
and the hypothetical future income tax was actually reduced by
over 60% from ($406,717) to ($162,157)
-- Assets decreased from $4,179,447 to $2,460,201, largely due
to the extraordinary one time writedown of goodwill
-- Shareholders' Net Equity decreased from $2,770,859 to
$713,918 materially because of the extraordinary one
time writedown of goodwill
-- EBITDA (Earning before Interest, Taxes, Depreciation and
Amortization) increased from 51% to 60%. Management considers
EBITDA to be primary measure of the financial performance of its
current operations
Effective November 1, 2002, Ofek changed its accounting policy with respect to leases of its operating subsidiary, AJM Leasing, which led to revenues being identified and recorded pursuant to the direct finance method. The impact of such changes is more thoroughly explained within the financial statement and the MD&A
Management's decision to writedown the entire goodwill during the 1st and 3rd quarters, will shore up Ofek's balance sheet, eliminate costly annual evaluation expenses and amortization charges going forward, as well as ultimately benefits shareholders.
Ofek's only operating subsidiary, AJM Leasing, recorded operational profit during this period. Management expects revenues to continue expanding at over 20%, to increase profit from operations, and to reduce expenses.
About Ofek Capital www.OfekCapital.com
Ofek Capital is a North American financial services company that operates within the sub-prime lending and financing market. Ofek believes that the sub-prime market is the most lucrative niche in the financial services industry.
Ofek Capital subsidiaries include: AJM Leasing, Mortgage Bankers of North America, Venture Capital, and SecondaryMarkets.
-- Ofek leases used cars through its Ontario subsidiary,
AJM Leasing
-- Mortgage Bankers of North America, a California subsidiary,
anticipates offering traditional mortgage banking services in
24 states Venture Capital Corp. is currently evaluating a
number of equity involvements, funding and investment prospects,
which upon integration expects its choices to enhance Ofek's
balance sheet and shareholder equity and value
-- SecondaryMarkets, a California subsidiary, anticipates the
development of a proprietary, patent pending, automated
submission and lending approval software system. It will be
state-of-the-art and capable of generating immediate loan
approval from multiple loan providers
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements.