Finantra Capital, Inc.
150 S. Pine Island Road, Suite 500
Plantation, Florida, 33324

Tel:  (954) 577-9225
Fax: (954) 577-9228

E-Mail: investor@finantra.com
Web Site: www.finantra.com

Investment Highlights:

• Currently trading at 4 to 5 times cash
• Currently trading below book value
• Acquisitions in progress should significantly increase revenue 
• Value play to diversify into a solid, established business segment
• Est. 68% revenue growth over previous fiscal year
• Continued boom in home sales keeps the sector strong
• Tightening of bank credit means more opportunities for specialty lenders

Profile

Finantra Capital, Inc. is a specialty finance company that is focused on the US consumer mortgage and consumer lending market.  Finantra has two separate business platforms: a consumer/residential mortgage division and a consumer finance division.  Closure of pending acquisitions would see the Company with some 500 employees operating from 30 offices nationwide having created a significant non-bank mortgage market operation. Public as of January 1998, Finantra has grown from a small Florida-based regional company to one that projects revenue in the vicinity of USD $50 million this year.
 
 

Corporate Strategy

Finantra’s corporate strategy is to become a leader in the consumer specialty finance market through attributive acquisitions, continued internal growth and effective marketing. By utilizing technology, management is building the back office of the future that will allow Finantra to build a technological advantage over its competition. A streamlining of internal processes coupled with higher productivity from existing resources resulting from technology additions are expected to increase profitability.

 
 

Consumer Mortgage Operations

Finantra’s consumer/residential division named Americap Mortgage was formed in January 1999.  Americap’s business began in South Florida concentrating on loans from builders, government programs for first time homebuyers and some wholesale operations. Americap business has grown steadily to its current turnover rate of approximately USD $15 million to $20 million per month.  Americap has two pending acquisitions. Successful conclusion of these transactions will see Americap become one of the forty largest non-bank mortgage originators in the country with approximately $1.3 billion in annual loans originated. 

The two pending acquisitions are:

• Based in New York; Consumer Home Mortgage is the largest non-bank FHA lender in the tri-state area.  Consumer’s loan volume is approximately USD $300 million.  The acquisition is attractive in that traditionally FHA loans are negotiated with much greater spreads than traditional conforming loans.  The acquisition has closed subject to New York State Mortgage Banking approval.  A response is expected by the end of the second quarter.   Consumers Home Mortgage is currently operating as an affiliate of Americap, combining many back office and treasury management functions.

• United Financial Mortgage is a Chicago based mortgage company with licenses in 38 states and an annual mortgage origination of USD $450 million United possesses state of the art technology, which technology will be integrated to function as Americap’s post loan closing and processing center.  Both United and Consumers bring with them managerial and operational expertise that will aid Finantra to integrate the acquisitions and grow this sector of the business going forward.  These transactions bring to Finantra a number of benefits, including but not limited to, increased access to lines of credit at significantly reduced interest rates; the opportunity to consummate capital market (securitization) transactions directly with Wall Street; cost savings associated with consolidating the back offices and processing centers of the various entities; and increased margins. Once completed, the combined annual run rate revenue for Americap is expected to reach USD $30 million annum.

Consumer Finance Operations

Travelers Acceptance Corp, Carlsbad, CA is a niche consumer finance and service company that has been profitable for each of the thirty years it has been in business. Traveler’s business consists of purchasing retail installment contracts from companies such as Gateway Computers, Craftmatic Beds, Sylvan Learning Centers, and American Airlines Technical Schools, that need to offer their own clientele financing. This is generally done at a discount to face value of approximately 35%.  Travelers maintains a large billing and collection business for its own portfolio as well as for its customers.  Travelers recently securitized a portion of its portfolio through Dain Rauscher. The rated portion of the transaction received an investment grade rating of A2 by Moody’s. It is expected that Travelers will produce revenue in excess of USD $20 million in 2001 and continue its profitability. 
 
 

Officers And Directors

Robert Press: CEO and Chairman of the Board – Robert founded the predecessor company to Finantra and has held senior level management positions since its inception. He joined in the formation of the worldwide derivative trading operations for Chemical Bank (now Chase). As its principal trader, he was responsible for the global trading and investment of a multi-billion dollar portfolio.

Maynard Hellman: Acting COO and Director – Maynard has been a Director since 1997. In January 2001, Mr. Hellman assumed the title of Acting Chief Operating Officer prior to which he was the managing partner of Hellman and Mass, a law firm in Coral Gables, Florida.  Mr. Hellman is well known as a Florida real estate financier and developer.

Brian Lazurus CPA: Treasurer Vice - President, Finance – Brian came to Finantra in 2000 from KPMG LLP where he spent the previous 6 years. At the time of departure from KPMG, Brian held the position of Senior Audit Manager.

Fred Dupuy: Serving as a member of the board since 1998, Mr. Dupuy is a principal in Coast Partners Securities, a boutique investment-banking firm having been involved in the Florida consumer finance market for 20 years.

Arthur J. Press: A Director since 1998, Mr. Press retired in 1987 from the position of Vice President of  the Commercial Lending Division of Chemical Bank after 30 years of service.

Thomas W. Dwyer: Director – Tom joined the board in 1999 and is currently the Vice President of Fuji Capital Markets, a division of Fuji Bank having over 15 years experience in the banking industry.

Steven Beitler: Steven became a Director in 2000.  Mr. Beitler is the co-founder of TJM Institutional Services of Chicago, a diversified financial services company.  Prior to this he was with Prudential and also at the Marine Midland Bank of New York where he headed the treasury desk. 

Safe Harbor Statement:
Statements contained in this document, including those pertaining to acquisitions, earnings estimates and related commercial plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made.

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