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America's Senior Financial Services

Symbol:
AMSE

Recommended:
11/27/01 - $0.155

Price as of:
11/27/01 - $0.155

2002 Target: 
$1.81

52 Wk Range:
 $0.11 - $0.55
Financial Summary Share-Related Items
AMSE is a licensed mortgage lender engaged in originating, processing and obtaining funding for forward and reverse mortgage loans secured by single family residences.  Total Revenues from loan operations for the three-month period ending September 30, 2001 were $1,945,249 versus $1,516,140 for the comparable period in 2000.  Total Revenues for the nine-month period ending September 30, 2001 were $5,686,121 versus $4,922,941 for the comparable period in 2000.  This is an increase over the prior year of $763,180 or 16 per-cent.  The Company's forward mortgage origination platform experienced a sales increase year to date 2001 directly benefiting from demand created by declining interest rates and from the Company's internal focus on better execution.  The Company believes that these results demonstrate its ability to capture greater sales from existing units while continuing to execute its strategy for "organic growth".  For example, during the nine-month period ending September 30, 2001 the Company operated 10 offices - down from 14 offices during the prior year.  This provides evidence that the Company continued to increase sales while closing unprofitable units.

More from Market Guide: Significant Developments
Recent Price (3/19/02) $0.11
Market Capitalization $1.93M
Shares Outstanding 17.6M
Float 12.8M
Daily Volume (3-month avg) 60.8K
Daily Volume (10-day avg) 86.0K
Delayed Quote
Business Description
America's Senior Financial Services Inc., along with its wholly owned subsidiary Jupiter Mortgage Corporation, is a licensed mortgage lender active in originating, processing and obtaining funding for forward and reverse mortgage loans secured by single family residences which are funded by financial institutions or independent investors.  The Company receives income from three sources in connection with its mortgage lending activities.  
  • The Company charges certain non-refundable mortgage application and processing fees to potential borrowers.  
  • Upon closing a loan, the Company receives additional fees payable by the borrower or investor, which fees are based upon a percentage of the loan or the specific program selected.
  • The Company earns additional fees from its warehouse line execution, and the sale of servicing rights.

America's Senior Financial Services, Inc. is a major mortgage originator engaged in originating, processing, and obtaining funding for forward and reverse mortgages with headquarters in Florida.  AMSE offers many different kinds of mortgage financing options to all age groups.  America's Senior operates a highly developed forward mortgage platform which includes retail loan origination, a bank services division that provides a branded platform for small financial institutions, and a wholesale loan operation providing lending services to other mortgage bankers.  America's Senior Financial Services' strategic mission is to develop the senior demographic, specifically by developing and educating this segment on the benefits and features of reverse mortgages secured by single family residences while continuing to grow its traditional forward mortgage business, adding a banking platform, and adding wholesale lending capacity.

Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling the homes.  Homeowners can collect a lump-sum, monthly payments, or tap into a line of credit to get cash when needed.  No repayment is necessary as long as the homeowner lives in a home with a reverse mortgage.  The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies.  Reverse mortgages are insured by HUD and offered by both FHA and Fannie Mae.  The concept has been endorsed by the American Association of Retired Persons (AARP), along with others, as a viable source of retirement cash flow for certain seniors.

The U.S. population is currently comprised of approximately 34 million persons aged 65 and above, a large percentage of which own a home.  By the year 2015, the U.S. Census Bureau estimates that approximately 46 million persons will make up the “aged 62 and over” demographic segment.  However, according to reports from major U.S. Life Insurance and Annuities firms, approximately 95% of Americans currently rely on Social Security to pay a portion of their monthly recurring bills.  As a result, reverse mortgages may be a viable alternative for additional sources of income for these persons in the future.  AMSE strives to provide superior training to its loan officers, who then educate senior citizens through the Company’s taped television series entitled “Ask Mr. Mortgage”, and through videotapes that explain the Industry’s current products in easy-to-understand language.  The Company believes that it is the only publicly-traded company with a strategy that includes financial products targeted at senior citizens and estimates that it is currently in the top 10 companies marketing reverse mortgage products in the U.S.

AMSE offers virtually every mortgage loan program and product available including the following: 

  1. Fixed and adjustable rate mortgages 
  2. FHA/VA loans 
  3. Construction/perm loans 
  4. Commercial loans 
  5. Jumbo mortgages 
  6. No income verification, no closing costs, second mortgages 
  7. First time homebuyer programs, and many more
  8. Reverse mortgages for the senior demographic

During 2001, several aspects of the Company's business have been  restructured in order to maximize future potential and eliminate duplicative services.  Dow Guarantee Mortgage consolidated its entire back office operation into the Jupiter unit. Jupiter modified Dow's lending practices to fit into the Jupiter Model. The Company now expects the Dow unit to produce profits during 2002. It will now operate as a branch of Jupiter Mortgage Corporation.  The Company also announced that recently the parent of AMSE's primary warehouse lender shut down.  AMSE anticipated this situation and replaced the facility quickly with no material affect on its ability to fund loans.  However, their shut down cost AMSE approximately $425,000 in lost revenues.  The Company will record this charge in the 4th quarter 2001.  There can be no assurances that legal proceedings, if any, will recover this loss from the former vendor.  If the Company succeeds, it will record an appropriate non-recurring gain in 2002.  The Company still expects its 2001 bottom line performance to show improvement of almost $2 million dollars.

Visit the Company's websites at www.americassenior.com and www.jupiter-mortgage.com.
 Expanded Business Description
Key Management

 

Nelson Locke
Chairman and Chief Executive Officer

Nelson A. Locke founded the Company in 1990 and has served as its President since that time. He is the past President of the Florida Association of Mortgage Brokers - Miami Chapter and has earned the NAMB's certified residential mortgage lender designation. Mr. Locke is a Marine Corps veteran and holds a B.A. from California State University.

Michael Buono
President and COO

Michael Buono has been CEO of Jupiter since AMSE acquired the company in August of 1999.  He has been in the mortgage business since 1990 and is well regarded for his technology expertise and his knowledge of jumbo loan products.  He also serves the company's audit committee.  In August 2000 he was appointed Corporate Chief Operating Officer of AMSE. In October 2001 he was named President.

Dean Girard
CFO, Treasurer and Vice President

Dean Girard has been the Chief Financial Officer of Jupiter Mortgage Corporation since 1998.  In June of 2000, he assumed the role of CFO for AMSE.  He serves on the Company's audit committee and is responsible for the timely completion of all of AMSE's SEC filings.
Analyst Summary

In April of 2000, the Company’s Chairman and CEO Nelson Locke began (1) consolidating offices that were in close proximity to one another and (2) cutting non-essential staff, while simultaneously implementing an aggressive direct-mail marketing campaign in which 3 million reverse mortgage mailers were sent to senior citizens throughout the U.S.  Management also amended the terms of an outstanding convertible debenture, and renegotiated the sales price of two of its prior acquisitions, resulting in less shares being issued in final settlement of existing stock purchase agreements.  According to Mr. Locke, these actions greatly improved the Company’s financial condition.  Looking at the financials provided below, we believe that you will agree with us that this was a success.

The Company has acquired three mortgage lenders since going-public in 1998, and it plans to continue acquiring mortgage lenders over the next several years, in its goal to become a major regional provider of all types of residential mortgage products including those which benefit the senior demographic.  One acquisition, in due diligence, should add $1.25M to top line fee income and over $500K to the bottom line in its first year.

Fundamental Opinion - 11/27/01

AMSE's comparative financial analysis offers and suggests tremendous future stock price appreciation from current levels based on the Consumer Financial  Services industry comparative figures (P/E= 24.85) and even more conservatively, the Financial sector (P/E= 24.49).  Assuming the market returns to bullish conditions and the Company meets projections provided by the Company and included in this report, at sector values the stock could reach a 2002 target price of $1.81.  Based on current prices, this would be an increase of over 1000%.
.

Actual and Projected* Financials for AMSE
YEAR 1998 1999 2000 2001*(1) 2002*(1)
Mortgages  125,000,000  175,000,000 240,000,000 300,000,000 500,000,000
Gross Fees 2,000,000 4,500,000 6,500,000 7,500,000 9,500,000
Income (2,000,000) (7,000,000) (2,000,000) 0 1,000,000
 
 

Price to Book Ratio
Sector Industry AMSE
3.09 5.24 0.44

(1)EBITDA

AMSE management's target share price exceeds our forecasts. They have set a target price of $2.50 for FY2002 based on:

  1. AMSE is unique and the only public company with a heads up on the huge senior market.
  2. The Company has a proprietary product under development that once funded will open up the reverse mortgage market to brokers everywhere. 
  3. AMSE recently announced Insurance Industry alliance is a much hailed step in the right direction to explode that business. In 1999, Fannie Mae said that these types of alliances would be the key to the future. To our knowledge, no one has tried to do it on as large a scale as the Company has just launched.

When you consider the above plus a $3 million dollar tax loss carry forward, AMSE management's goals appear well within reach.

Note: To meet the suggested target prices, the Company would have to trade at the Services sector multiples and the Company would have to achieve earnings and revenue estimates provided by management in this report. A divergence either up or down from the projections could materially affect the target prices.

Technical Analysis : 11/26/01 courtesy of the Buy, Sell or Hold Company
Short Term Opinion: 
OUTPERFORM
On a short-term technical basis, the trend is Bullish (up) and the stock is slightly above its 50-day moving average at 0.18 which also confirms its Bullish (up) trend. The stock is slightly oversold according to the Stochastic indicator (26.14).

Long Term Opinion: 
HOLD
On a long-term technical basis, the stock (AMSE) is trading below its 200-day moving average which implies it is in a negative trend.

The stock has support at 0.18 and 0.15. If the stock breaks down through support at 0.18 then it will probably continue lower to 0.15. The stock has resistance at 0.20 and at 0.22. If the stock breaks up through resistance at 0.20 then it will probably continue higher to 0.22. The 200-day moving average is at 0.21. This will also act as resistance. The stock has broken out of its long-term downtrend and is looking more positive recently. If the stock can form new support above 0.18 look for a rally to previous highs. The stock is slightly oversold according to the Stochastic Indicator (26.73).

Note: Although technical analysis is an important tool to determine the short-term directional movement of securities, technical analysis of stocks under $10 is many times not as reliable as higher priced, higher volume securities.

11/26/01 - Enlarge chart
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Recent News

(all times are US Eastern)

Wednesday, Mar 13, 2002

Tuesday, Feb 26, 2002

Thursday, Jan 31, 2002

Monday, Dec 17, 2001

Friday, Dec 14, 2001

Thursday, Dec 13, 2001

Friday, Nov 23, 2001

Thursday, Nov 15, 2001

Monday, Nov 12, 2001

Monday, Nov 5, 2001 Monday, Oct 29, 2001 Monday, Oct 15, 2001 Tuesday, Aug 28, 2001 Tuesday, Aug 21, 2001 Wednesday, Aug 15, 2001
Tuesday, May 15, 2001 Friday, Apr 13, 2001
Quarterly Income Statement 
 

AMERICA'S SENIOR FINANCIAL SERVICES, INC. AND SUBSIDIARIES
Consolidated Balance Sheet (unaudited) September 30, 2001
September 30, 2001  Dec. 31, 2000
CURRENT ASSETS: 
Cash and cash equivalents $ 1,142,276 $ 463,079
Brokerage fees receivable  282,064 289,891
Employee advances

17,005

1,300
Mortgage loans held for sale 3,952,648 3,976,845
Prepaid expenses 322,765 346,561
     TOTAL CURRENT ASSETS 5,716,758 5,077,676
PROPERTY AND EQUIPMENT, net

313,563

368,558
OTHER ASSETS
Goodwill, net 4,645,534 4,838,953
Notes receivable 250,000 250,000
Other assets 70,420 73,585
     TOTAL OTHER ASSETS 4,965,954

5,162,538

TOTAL

 $10,996,275 $10,608,772
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES: 
Current portion of long-term debt and 
     capital lease obligations 		 $ 5,878 $ 44,471
Lines of credit 634,137 149,091
Warehouse lines of credit 3,910,261 3,961,286
Accounts payable 529,640 648,415
Accrued liabilities 1,468,260 1,026,085
  TOTAL CURRENT LIABILITIES 6,548,166 5,829,348
CAPITAL LEASE OBLIGATIONS, 
less current portion		 43,785 32,600
LONG TERM DEBT, convertible debentures  - 1,136,000
STOCKHOLDERS EQUITY: 
Preferred stock, $0.001 par value; 
10,000,000 shares Authorized, 
shares issued and outstanding 		 5,034,669 4,118,003
Common stock, $0.001 par value; 
25,000,000 shares Authorized, 
shares issued and outstanding,		 13,143,428 9,406,326
Additional paid in capital 15,040,770 14,086,285
Retained earnings (deficit) (10,575,660) (10,395,979)
Income Year to Date (78,964) (93,006)
  TOTAL STOCKHOLDERS' EQUITY 4,404,324  3,610,824
TOTAL $ 10,996,275 $10,806,772 

AMERICA'S SENIOR FINANCIAL SERVICES, INC. AND SUBSIDIARIES 
CONSOLIDATED INCOME STATEMENTS (UNAUDITED) 
THREE MONTHS
ENDED SEPTEMBER 30		 NINE MONTHS
ENDED SEPTEMBER 30
2001 2000 2001 2000
REVENUES $1,945,249 $1,516,140 $5,686,121  $4,922,941
EXPENSES:
Payroll and related Expenses  1,561,174 1,130,873 4,240,100 3,649,222
Administrative, processing and occupancy  540,640 611,575 1,524,438 2,418,650
Depreciation 21,120 21,802 63,358 65,404
Goodwill amortization 64,473 64,472 193,419 193,416
Acquisitions, mergers and investment related expense 256,186 - 658,657 -

TOTAL EXPENSES

 2,443,593  1,828,722 6,679,972 6,326,692
LOSS FROM OPERATIONS  (498,344) (312,582) (993,851) (1,403,751)
OTHER
Interest Income - - -
Interest expense 36,278 22,082 71,803 64,067
Total other, net 36,278 22,082 71,803 64,067
INCOME/(LOSS) BEFORE EXTRAORDINARY
 ITEMS AND INCOME TAXES		 (534,622) (334,664) (1,065,654) (1,467,818)
EXTRAORDINARY ITEMS 
Gain on settlement of Debenture 
(No applicable income tax) 		 986,690
NET INCOME/(LOSS) (534,622) (334,664) (78,964) (1,467,818)
INCOME/(LOSS) PER COMMON SHARE: Basic $ (0.042)  $ (0.037) $ (0.007) $ (0.164)
Diluted $ (0.042) $ (0.037) $ (0.007) $ (0.164)
Weighted average common shares outstanding 12,824,428 9,110,208 11,966,448 8,974,352

AMERICA'S SENIOR FINANCIAL SERVICES, INC. AND SUBSIDIARIES 
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
 NINE MONTHS ENDED SEPTEMBER 30
CASH FLOWS FROM OPERATING ACTIVITIES  2001 2000
Net Income / (Loss) $ (78,964)  $ (1,467,818)
Adjustments to reconcile net income / (loss) 
  to net cash Provided by (used in) operating activities:
Depreciation and amortization 256,777  258,820
Extraordinary item settlement of debenture (986,690) -
Common stock issued for services 842,460  202,244
Common stock issued for deposits - 25,000
Changes in certain assets and liabilities:
Brokerage fee receivable 7,623  31,604
Employee advances (15,705)  6,940
Prepaid expenses  23,796  (72,155)
Other current assets and liabilities, net 3,371  68,690
Accounts payable  96,808  348,591
Accrued liabilities 192,246  (169,802)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 341,722  (767,886)
CASH FLOWS FROM INVESTING ACTIVITIES: 
Purchase / Sale of property and equipment 		 (8,363)  (6,024)
Acquisition expenditures, net of cash required - 460,219
Increase in Mortgage loans (120)  (1,238,885)
NET CASH USED IN INVESTING ACTIVITIES (8,483)  (784,690)
CASH FLOWS FROM FINANCING ACTIVITIES: 
Proceeds from issuance of common stock, net		 30,000  187,292
Other capital contributions - (807)
Net borrowings under line of credit 485,047  987,637
Due from shareholder - 20,734
Change in long-term debt (169,089)  10,099
NET CASH PROVIDED BY FINANCING ACTIVITIES 345,958  1,204,955
NET INCREASE /(DECREASE) IN CASH 
AND CASH EQUIVALENTS 		 679,197  (347,621)
CASH AND CASH EQUIVALENTS, beginning of period 463,079  402,373
CASH AND CASH EQUIVALENTS, end of period  $ 1,142,276  $ 54,752 
 

More Financials for America's Senior Financial Services Inc.
November 15, 2001 - Quarterly Report

August 15, 2001 - Quarterly Report

May 15, 2001 - Quarterly Report

April 13, 2001 - Annual Report

November 22, 2000 - Quarterly Report

 
Contact Information

Larry Handler
Jupiter Island
561-743-4245 
amseinfo@JupiterIslandInvestments.com 

America's Senior Financial Services - Corporate Offices 
10800 Biscayne Boulevard - Suite 500 
Miami, Florida 33161 
Office 305-751-3232 x2266 
Fax 305-762-5548

Visit the Company Websites at www.americassenior.com and www.jupiter-mortgage.com.

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