|In its 3rd quarter earnings announcement, E-Loan said that it expects a pro-forma operating profit of $1 million in the 4th quarter of this year, an increase from the prior pro-forma break even guidance. The company reported a $9 million loss from operations for the third quarter, and a Pro Forma profit of $312,000.
Proforma net income excludes a compensation charge related to the company's stock option plan, amortization of goodwill on the acquisition of CarFinance.com, and amortization of marketing costs related to warrants issued to purchase the Company's common stock. Amortization of marketing costs and goodwill concluded in the second and third quarters of 2001, respectively.
In the third quarter, E-Loan sold 3,343 mortgage loans for a total dollar volume of $702.3 million. Also in the third quarter, E-Loan sold 1,765 home equity loans for a total dollar volume of approximately $87.4 million.
One sign of life beyond the end of the refinance boom for E-Loan was the growth in purchase money business. "The strong growth in our purchase mortgage business -- up 65 percent from last quarter -- is particularly exciting: It's further evidence that consumers are embracing and more willing than ever to trust the E-Loan brand," said Chris Larsen, E-Loan's Chairman and CEO.
E-Loan, which has been a proponent of the disclosure of credit scores to consumers, was recently reported to have an imminent plan to compensate real estate agents. In its announcement, the company's CFO said that customers who would recommend E-Loan to a friend has grown to 90 percent.