PSMH: Profitable First Quarter!
By Ann Heffron, CFA
PSM Holdings, Inc. (
posted net earnings of $0.2 million, or $0.01 per diluted share,
for the first fiscal quarter ending September 30, 2012. This
compares to a fiscal fourth quarter (ending June 30, 2012) net
loss of $0.3 million, or a loss per share of $0.01. Both quarters
reflected the adoption of PSMH's new business model, including
all five acquisitions the Company has made to date, as well as
contributions from the Costco operations.
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The first quarter matched our diluted EPS estimate of $0.01,
as both revenues and operating expenses were $0.2 million lower
than we had expected.
We have raised our estimate for 2013, as we have increased our
projections for loan origination volume, and have slightly
reduced the gross profit margin due to the growing importance of
the lower margin Costco business in the mix. Our new estimate for
the 2013 fiscal year ending June 30, 2013 is diluted EPS of $0.04
versus $0.02 previously. This represents the first annual profit
in PSMH's history as a public company.
Our initial estimate for fiscal 2014 shows a 10% increase in
total revenues and a 73% gain in net earnings, resulting in
diluted EPS of $0.06.
PSM Holdings, Inc. is engaged in the businesses of mortgage
banking, in which PSMH both originates and funds mortgage loans
through its own warehouse lines of credit and currently accounts
for about 90% of closed loans, as well as mortgage brokerage, in
which PSMH originates mortgage loans funded by over 50
third-party lenders. PSMH immediately sells these loans to its
third-party lenders or into the secondary mortgage market. The
Company offers a full range of mortgage loan products, including
adjustable rate mortgages, fifteen, twenty, and thirty-year fixed
rate loans, and balloon loans with a variety of maturities, as
well as refinancing, construction loans, second mortgages, debt
consolidation, and home equity loans.
PSMH had total assets of $24.7 million at the 2012 fiscal
yearend on June 30, 2012, total revenues of $14.2 million for the
2012 fiscal year, and closed 2,920 mortgage loans, worth $393
million, during this period. Operations are carried out by
the Company's wholly owned subsidiary, PrimeSource Mortgage, Inc.
(PSMI). Through this subsidiary, PSMH operates and is licensed in
the following 15 states: Arkansas, Colorado, Florida,
Iowa, Montana, Missouri, Nebraska, New Jersey, New Mexico, New
York, Oklahoma, Oregon, Texas, Utah, and Washington.
For additional research on PSMH and other small-cap stocks,
PSM HOLDINGS (PSMH): Free Stock Analysis
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