FiNet.com Reports Financial Results for the Quarter Ended March 31, 2001

Revenues Increased by 73% Over Prior Year Period Net Loss Decreased 64%



Company Expects Break-Even by Third Quarter, 2001



Apr 26, 2001, 01:00 ET from FiNet.com, Inc.

    SAN RAMON, Calif., April 26 /PRNewswire/ --
 FiNet.com, Inc. (Nasdaq:   FNCM), and its wholly owned subsidiaries (the
 "Company") today announced financial results for the quarter ended March 31,
 2001.
     Revenue for the first quarter ended March 31, 2001 increased 73% from
 $1.45 million to $2.51 million compared to the year-ago quarter ended March
 31, 2000, and increased by 20% from $2.10 million for the prior quarter, ended
 December 31, 2000.
     As a result of a shift into higher margin products, gross margins
 increased by 495% over the year-ago quarter, ended March 31, 2000, and by 197%
 over the prior quarter, ended December 31, 2000.
     Operating expenses declined by 55% over the year-ago quarter ended March
 31, 2000, from $7.68 million to $3.41 million, and declined by 28% from
 $4.75 million for the prior quarter, ended December 31, 2000.
     Net loss for the quarter ended March 31, 2001 decreased over the year-ago
 quarter ended March 31, 2000, from $6.54 million to $2.37 million, an
 improvement of 64%.  Net loss improved by 59% over the quarter ended December
 31, 2000, or by $3.43 million compared to a $5.80 million loss in the prior
 quarter.
     Net loss per share for the quarter ended March 31, 2001 was $0.25 per
 share, compared to a net loss of $0.84 per share in the year-ago quarter,
 ended March 31, 2000, and a loss of $0.64 per share in the prior quarter,
 ended December 31, 2000.  These amounts have been restated to reflect the
 Company's recent one-for-twelve reverse stock split.
     Net cash used in operating activities during the first quarter, ended
 March 31, 2001 was $0.28 million, a reduction of 90% from $2.67 million during
 the prior quarter, ended December 31, 2000.  Cash position as of March 31,
 2001 was $9.16 million.
     "When I first joined the Company just a little over a year ago, we faced
 significant challenges," commented Rick Cossano, FiNet's President and Chief
 Executive Officer.  "We were suffering from significant losses, and an
 overhead structure which was quickly burning through the Company's available
 cash resources.  In response, we acted aggressively over the past several
 months to reduce operating expenses, concentrate on higher margin products,
 and put into place an overall strategy which will lead us to profitability in
 the near future.  Based upon our first quarter results, I believe we are right
 on target with the programs we have implemented, and as a result, the Company
 expects to achieve break-even by the third quarter of this year.  Further,
 based upon these projections, we anticipate existing cash-on-hand to be
 sufficient to fund ongoing operations until such time as the Company becomes a
 positive cash generator."
     Major accomplishments during the quarter ended March 31, 2001, include:
 
     -- An agreement in principle with First Bank, with nearly $6 billion in
 assets and 140 offices, to provide the Company with a $10 million credit
 facility for funding loans.  Part of the agreement calls for First Bank to
 purchase funded loans within a 48 hour time period, thus permitting the
 Company to re-use the credit facility repeatedly.
     -- The addition of Jim Gueno, a wholesale mortgage lending professional
 with over 15 years experience, to establish a regional presence on the East
 Coast for Monument Mortgage, the Company's wholesale mortgage lending arm.
 Wholesale mortgage brokers account for approximately 75% of all mortgage loan
 activity generated in the United States and are an important growth target for
 the Company.
     -- A restructuring of the Company's retail lending operation to focus on
 markets with higher potential while reducing overall advertising expenses.
 Based upon the initial success of this restructuring, the Company now
 anticipates its retail operation to be profitable by the second quarter, 2001.
 
     Rick Cossano, FiNet's President and Chief Executive Officer, will host a
 conference call to discuss the results and outline his strategy for FiNet at
 4:30 p.m. Eastern Time.  The conference call can be accessed by calling
 800-816-3054, passcode #53092 (you must enter the pound sign first).  The call
 will also be simulcast over the Internet on the FiNet web site at
 www.finet.com.  Listeners should go to the web site ten minutes before the
 call and download the necessary audio software.
 
     About FiNet.com
     FiNet.com, Inc., through its wholly owned subsidiaries (the "Company") is
 a leading e-commerce provider of financing services that facilitate home
 ownership, including a variety of technology and loan products and automated
 services for mortgage broker businesses and for consumers. The Company offers
 online solutions to mortgage broker businesses through Monument Mortgage at
 www.monument.com and residential financial services directly to consumers at
 www.finet.com.
 
     Safe Harbor
     Certain statements in this press release, including the completion of a
 definitive agreement with First Bank, the anticipated development and
 expansion of the Company's business, and the intent, belief, or current
 expectations of the Company or its officers and directors concerning the
 Company's ability to break-even and/or obtain profitability during 2001, are
 "forward-looking" statements (as such term is defined in the Private
 Securities Litigation Reform Act of 1995).  Because such statements are
 subject to risks and uncertainties, including that the Company will be unable
 to complete a definitive agreement with First Bank or break even and/or obtain
 profitability in 2001, actual results may differ materially from those
 expressed or implied by such forward-looking statements. Investors are also
 encouraged to read the "Risk Factors" section of the Company's Annual Report
 on Form 10-K for the year ended December 31, 2000 and the Company's Quarterly
 Report on Form 10-Q for the quarter ended September 30, 2000, which are on
 file with the Securities and Exchange Commission.
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Balance Sheets - Unaudited
     (Amounts in thousands)
 
                                                     March 31     December 31
                                                         2001           2000
 
     ASSETS
 
         Cash and cash equivalents                     $9,161         $9,454
         Restricted cash                                  940            300
         Accounts receivable, net                         317            416
         Mortgages held for sale, net                  18,918         39,975
         Furniture, fixtures & equipment, net           2,439          2,712
         Goodwill, net                                  1,150          1,309
         Other assets                                     453            581
 
       Total Assets                                  $ 33,378       $ 54,747
 
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
       Liabilities:
         Warehouse and other lines of credit         $ 16,765       $ 35,922
         Accounts payable                                 191            187
         Notes payable                                     70             70
         Accrued expenses and other liabilities         5,808          5,708
 
       Total Liabilities                               22,834         41,887
 
 
       Stockholders' equity:
         Common stock                                   1,029          1,024
         Additional paid-in capital                   109,890        109,841
         Accumulated deficit                        (100,375)       (98,005)
 
       Total Stockholders' Equity                      10,544         12,860
 
       Total Liabilities and Stockholders' Equity     $33,378       $ 54,747
 
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Statements of Operations - Unaudited
     (Amounts in thousands - except per share data)
 
 
                                                           Quarter Ended
                                                     March 31       March 31
 
                                                         2001           2000
 
 
     Revenues                                          $2,505         $1,452
     Cost of Revenues                                   1,466          1,715
 
     Gross Profit (Loss)                                1,039          (263)
 
     Operating Expenses
       General and administrative                       2,803          5,018
       Marketing and advertising                           96            864
       Depreciation and amortization                      506            494
       Special charges                                     --          1,299
 
     Total Operating Expenses                           3,405          7,675
 
     Loss from Operations                             (2,366)        (7,938)
     Gain on marketable securities                         --          1,321
     Other interest income                                 10            100
     Income tax expense                                  (15)           (23)
 
     Net Loss                                        $(2,371)      $ (6,540)
 
 
     Basic and diluted net loss
      per common share                               $ (0.25)       $ (0.84)
 
     Shares used in computing
      basic and diluted share data                      9,498          7,814
 
 
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Statements of Operations - Unaudited
     (Amounts in thousands - except per share data)
 
 
                                                           Quarter Ended
                                                     March 31     December 31
 
                                                         2001           2000
 
 
     Revenues                                          $2,505         $2,102
     Cost of Revenues                                   1,466          3,172
 
     Gross Profit (Loss)                                1,039        (1,070)
 
     Operating Expenses
       General and administrative                       2,803          3,627
       Marketing and advertising                           96            304
       Depreciation and amortization                      506            319
       Special charges                                     --            500
 
 
     Total Operating Expenses                           3,405          4,750
 
 
     Loss from Operations                             (2,366)        (5,820)
     Gain (loss) on marketable securities                  --             --
     Other interest income                                 10             17
     Income tax (expense) benefit                        (15)              3
 
     Net Loss                                        $(2,371)      $ (5,800)
 
 
     Basic and diluted net loss
      per common share                               $ (0.25)       $ (0.64)
 
     Shares used in computing
      basic and diluted share data                      9,498          9,013
 
 
 
     Finet.com, Inc.
     Consolidated Condensed Statement of Cashflows - Unaudited
     (Amounts in thousands)
 
 
                                                             Quarter
                                                              Ended
     OPERATING ACTIVITIES:                                  03/31/01
 
 
     Net loss                                              $(2,371)
       Depreciation                                             294
       Amortization of Goodwill                                 212
       Changes in operating assets and liabilities:
         Increase in restricted cash                          (640)
         Decrease in mortgage loans held for sale            21,057
         Decrease in receivables                                 99
         Decrease in other assets                               117
         Decrease in warehouse borrowings                  (19,157)
         Increase in accounts payable
          and accrued exp                                       106
     Net cash used in operating activities                    (283)
 
     INVESTING ACTIVITIES:
     Purchase of furniture, fixtures and equipment             (10)
     Net cash used by investing activities                     (10)
 
     FINANCING ACTIVITIES:
     Net cash provided by financing activities                   --
 
     Net decrease in cash                                     (293)
     Cash at beginning of period                              9,454
     Cash at end of period                                   $9,161
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X24924099
 
 

SOURCE FiNet.com, Inc.
    SAN RAMON, Calif., April 26 /PRNewswire/ --
 FiNet.com, Inc. (Nasdaq:   FNCM), and its wholly owned subsidiaries (the
 "Company") today announced financial results for the quarter ended March 31,
 2001.
     Revenue for the first quarter ended March 31, 2001 increased 73% from
 $1.45 million to $2.51 million compared to the year-ago quarter ended March
 31, 2000, and increased by 20% from $2.10 million for the prior quarter, ended
 December 31, 2000.
     As a result of a shift into higher margin products, gross margins
 increased by 495% over the year-ago quarter, ended March 31, 2000, and by 197%
 over the prior quarter, ended December 31, 2000.
     Operating expenses declined by 55% over the year-ago quarter ended March
 31, 2000, from $7.68 million to $3.41 million, and declined by 28% from
 $4.75 million for the prior quarter, ended December 31, 2000.
     Net loss for the quarter ended March 31, 2001 decreased over the year-ago
 quarter ended March 31, 2000, from $6.54 million to $2.37 million, an
 improvement of 64%.  Net loss improved by 59% over the quarter ended December
 31, 2000, or by $3.43 million compared to a $5.80 million loss in the prior
 quarter.
     Net loss per share for the quarter ended March 31, 2001 was $0.25 per
 share, compared to a net loss of $0.84 per share in the year-ago quarter,
 ended March 31, 2000, and a loss of $0.64 per share in the prior quarter,
 ended December 31, 2000.  These amounts have been restated to reflect the
 Company's recent one-for-twelve reverse stock split.
     Net cash used in operating activities during the first quarter, ended
 March 31, 2001 was $0.28 million, a reduction of 90% from $2.67 million during
 the prior quarter, ended December 31, 2000.  Cash position as of March 31,
 2001 was $9.16 million.
     "When I first joined the Company just a little over a year ago, we faced
 significant challenges," commented Rick Cossano, FiNet's President and Chief
 Executive Officer.  "We were suffering from significant losses, and an
 overhead structure which was quickly burning through the Company's available
 cash resources.  In response, we acted aggressively over the past several
 months to reduce operating expenses, concentrate on higher margin products,
 and put into place an overall strategy which will lead us to profitability in
 the near future.  Based upon our first quarter results, I believe we are right
 on target with the programs we have implemented, and as a result, the Company
 expects to achieve break-even by the third quarter of this year.  Further,
 based upon these projections, we anticipate existing cash-on-hand to be
 sufficient to fund ongoing operations until such time as the Company becomes a
 positive cash generator."
     Major accomplishments during the quarter ended March 31, 2001, include:
 
     -- An agreement in principle with First Bank, with nearly $6 billion in
 assets and 140 offices, to provide the Company with a $10 million credit
 facility for funding loans.  Part of the agreement calls for First Bank to
 purchase funded loans within a 48 hour time period, thus permitting the
 Company to re-use the credit facility repeatedly.
     -- The addition of Jim Gueno, a wholesale mortgage lending professional
 with over 15 years experience, to establish a regional presence on the East
 Coast for Monument Mortgage, the Company's wholesale mortgage lending arm.
 Wholesale mortgage brokers account for approximately 75% of all mortgage loan
 activity generated in the United States and are an important growth target for
 the Company.
     -- A restructuring of the Company's retail lending operation to focus on
 markets with higher potential while reducing overall advertising expenses.
 Based upon the initial success of this restructuring, the Company now
 anticipates its retail operation to be profitable by the second quarter, 2001.
 
     Rick Cossano, FiNet's President and Chief Executive Officer, will host a
 conference call to discuss the results and outline his strategy for FiNet at
 4:30 p.m. Eastern Time.  The conference call can be accessed by calling
 800-816-3054, passcode #53092 (you must enter the pound sign first).  The call
 will also be simulcast over the Internet on the FiNet web site at
 www.finet.com.  Listeners should go to the web site ten minutes before the
 call and download the necessary audio software.
 
     About FiNet.com
     FiNet.com, Inc., through its wholly owned subsidiaries (the "Company") is
 a leading e-commerce provider of financing services that facilitate home
 ownership, including a variety of technology and loan products and automated
 services for mortgage broker businesses and for consumers. The Company offers
 online solutions to mortgage broker businesses through Monument Mortgage at
 www.monument.com and residential financial services directly to consumers at
 www.finet.com.
 
     Safe Harbor
     Certain statements in this press release, including the completion of a
 definitive agreement with First Bank, the anticipated development and
 expansion of the Company's business, and the intent, belief, or current
 expectations of the Company or its officers and directors concerning the
 Company's ability to break-even and/or obtain profitability during 2001, are
 "forward-looking" statements (as such term is defined in the Private
 Securities Litigation Reform Act of 1995).  Because such statements are
 subject to risks and uncertainties, including that the Company will be unable
 to complete a definitive agreement with First Bank or break even and/or obtain
 profitability in 2001, actual results may differ materially from those
 expressed or implied by such forward-looking statements. Investors are also
 encouraged to read the "Risk Factors" section of the Company's Annual Report
 on Form 10-K for the year ended December 31, 2000 and the Company's Quarterly
 Report on Form 10-Q for the quarter ended September 30, 2000, which are on
 file with the Securities and Exchange Commission.
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Balance Sheets - Unaudited
     (Amounts in thousands)
 
                                                     March 31     December 31
                                                         2001           2000
 
     ASSETS
 
         Cash and cash equivalents                     $9,161         $9,454
         Restricted cash                                  940            300
         Accounts receivable, net                         317            416
         Mortgages held for sale, net                  18,918         39,975
         Furniture, fixtures & equipment, net           2,439          2,712
         Goodwill, net                                  1,150          1,309
         Other assets                                     453            581
 
       Total Assets                                  $ 33,378       $ 54,747
 
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
       Liabilities:
         Warehouse and other lines of credit         $ 16,765       $ 35,922
         Accounts payable                                 191            187
         Notes payable                                     70             70
         Accrued expenses and other liabilities         5,808          5,708
 
       Total Liabilities                               22,834         41,887
 
 
       Stockholders' equity:
         Common stock                                   1,029          1,024
         Additional paid-in capital                   109,890        109,841
         Accumulated deficit                        (100,375)       (98,005)
 
       Total Stockholders' Equity                      10,544         12,860
 
       Total Liabilities and Stockholders' Equity     $33,378       $ 54,747
 
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Statements of Operations - Unaudited
     (Amounts in thousands - except per share data)
 
 
                                                           Quarter Ended
                                                     March 31       March 31
 
                                                         2001           2000
 
 
     Revenues                                          $2,505         $1,452
     Cost of Revenues                                   1,466          1,715
 
     Gross Profit (Loss)                                1,039          (263)
 
     Operating Expenses
       General and administrative                       2,803          5,018
       Marketing and advertising                           96            864
       Depreciation and amortization                      506            494
       Special charges                                     --          1,299
 
     Total Operating Expenses                           3,405          7,675
 
     Loss from Operations                             (2,366)        (7,938)
     Gain on marketable securities                         --          1,321
     Other interest income                                 10            100
     Income tax expense                                  (15)           (23)
 
     Net Loss                                        $(2,371)      $ (6,540)
 
 
     Basic and diluted net loss
      per common share                               $ (0.25)       $ (0.84)
 
     Shares used in computing
      basic and diluted share data                      9,498          7,814
 
 
 
     FiNet.com,Inc. and Subsidiaries
     Consolidated Condensed Statements of Operations - Unaudited
     (Amounts in thousands - except per share data)
 
 
                                                           Quarter Ended
                                                     March 31     December 31
 
                                                         2001           2000
 
 
     Revenues                                          $2,505         $2,102
     Cost of Revenues                                   1,466          3,172
 
     Gross Profit (Loss)                                1,039        (1,070)
 
     Operating Expenses
       General and administrative                       2,803          3,627
       Marketing and advertising                           96            304
       Depreciation and amortization                      506            319
       Special charges                                     --            500
 
 
     Total Operating Expenses                           3,405          4,750
 
 
     Loss from Operations                             (2,366)        (5,820)
     Gain (loss) on marketable securities                  --             --
     Other interest income                                 10             17
     Income tax (expense) benefit                        (15)              3
 
     Net Loss                                        $(2,371)      $ (5,800)
 
 
     Basic and diluted net loss
      per common share                               $ (0.25)       $ (0.64)
 
     Shares used in computing
      basic and diluted share data                      9,498          9,013
 
 
 
     Finet.com, Inc.
     Consolidated Condensed Statement of Cashflows - Unaudited
     (Amounts in thousands)
 
 
                                                             Quarter
                                                              Ended
     OPERATING ACTIVITIES:                                  03/31/01
 
 
     Net loss                                              $(2,371)
       Depreciation                                             294
       Amortization of Goodwill                                 212
       Changes in operating assets and liabilities:
         Increase in restricted cash                          (640)
         Decrease in mortgage loans held for sale            21,057
         Decrease in receivables                                 99
         Decrease in other assets                               117
         Decrease in warehouse borrowings                  (19,157)
         Increase in accounts payable
          and accrued exp                                       106
     Net cash used in operating activities                    (283)
 
     INVESTING ACTIVITIES:
     Purchase of furniture, fixtures and equipment             (10)
     Net cash used by investing activities                     (10)
 
     FINANCING ACTIVITIES:
     Net cash provided by financing activities                   --
 
     Net decrease in cash                                     (293)
     Cash at beginning of period                              9,454
     Cash at end of period                                   $9,161
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X24924099
 
 SOURCE  FiNet.com, Inc.