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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[x]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2004
or
 
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________ to _____________

Commission File Number: 1-12109
 
 
DELTA FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
11-3336165
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)


1000 Woodbury Road, Suite 200, Woodbury, New York 11797
(Address of registrant’s principal executive offices including ZIP Code)

(516) 364 - 8500
(Registrant’s telephone number, including area code)

No Change
(Former name, former address and former fiscal year, if changed since last report)

 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ x ]       No [ ]

As of July 31, 2004, 20,238,299, shares of the Registrant’s common stock, par value $0.01 per share, were outstanding.
   
INDEX TO FORM 10-Q

Page No.
PART I - FINANCIAL INFORMATION
 
 
 
 
Item 1.
Financial Statements
 
 
 
 
 
1
 
 
 
 
 
 
June 30, 2004 and June 30, 2003 (unaudited)
2
 
 
 
 
 
 
ended June 30, 2004 (unaudited)
3
 
 
 
 
 
 
June 30, 2004 and June 30, 2003 (unaudited)
4
 
 
 
 
5
 
 
 
Item 2.
14
 
 
 
Item 3.
43
 
 
 
Item 4.
46
 
 
 
PART II - OTHER INFORMATION
 
 
 
 
Item 1.
46
 
 
 
Item 2.
48
 
 
 
Item 3.
49
 
 
 
Item 4.
49
 
 
 
Item 5.
49
 
 
 
Item 6.
49
 
 
 
Signatures
50
 
 
 
Certifications
 

 
   
PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements.

DELTA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


 
June 30, 2004
December 31, 2003
 
(Unaudited)
(Audited)
(Dollars in thousands, except for share data)
    
 
 
    
 
  
$
4,615
  
$
4,576
  
Mortgage loans held for sale, net
  
140,465
    
190,801
  
Mortgage loans held for investment, net of deferred fees and costs
  
1,059,053
    
--
  
Less: allowance for loan losses
  
(2,676
)
  
--
  
 
 
 
Mortgage loans held for investment, net
  
1,056,377
    
--
  
Excess cash flow certificates, net
  
19,264
    
19,853
  
 
3,661
    
3,147
  
 
6,431
    
244
  
Accounts receivable
  
2,146
    
2,569
  
 
20,293
    
4,617
  
Deferred tax asset
  
36,811
    
31,184
  
 
 
 
$
1,290,063
  
$
256,991
  
 
 
 
 
  
 
    
 
  
Liabilities and Stockholders’ Equity
  
 
    
 
  
 
 
    
 
  
$
913
  
$
2,292
  
 
83,777
    
144,826
  
 
1,101,143
    
--
  
 
3,013
    
2,362
  
Accrued interest payable
  
1,280
    
62
  
Servicing premium reimbursement
  
6,981
    
--
  
Accounts payable and other liabilities
  
19,285
    
11,496
  
 
 
 
 
1,216,392
    
161,038
  
 
 
 
 
  
 
    
 
  
Stockholders’ Equity:
  
 
    
 
  
Preferred stock, Series A, $100 preference value. Authorized 150,000
shares, 139,156 shares outstanding at December 31, 2003
  
 
--
    
 
13,916
  
Common stock, $.01 par value. Authorized 49,000,000 shares;
17,071,502 and 17,032,052 shares issued and 16,954,702 and
16,915,252 shares outstanding at June 30, 2004 and December 31,
2003, respectively
  
 
 
 
171
    
 
 
 
170
  
Additional paid-in capital
  
100,094
    
99,913
  
Accumulated deficit
  
(25,321
)
  
(16,728
)
Accumulated other comprehensive income, net of taxes
  
45
    
--
  
Treasury stock, at cost (116,800 shares)
  
(1,318
)
  
(1,318
)
 
 
 
Total stockholders’ equity
  
73,671
    
95,953
  
 
 
 
Total liabilities and stockholders’ equity
$
1,290,063
  
$
256,991
  
 
 
 
See accompanying notes to consolidated financial statements.
 
  1  
 
DELTA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
  
Three Months Ended
June 30,
Six Months Ended
June 30,
   
 
  
2004
2003
2004
2003
   
(Dollars in thousands, except share and per share data)
  
 
 
 
 
Revenues
    
 
    
 
    
 
    
 
  
 
$
1,513
  
$
25,198
  
$
9,253
  
$
44,095
  
   
18,869
    
2,868
    
25,708
    
4,982
  
Excess cashflow certificate income
    
545
    
541
    
1,102
    
1,237
  
   
56
    
226
    
79
    
351
  
   
 
 
 
 
   
20,983
    
28,833
    
36,142
    
50,665
  
   
 
 
 
 
   
 
    
 
    
 
    
 
  
   
12,595
    
9,135
    
24,154
    
17,491
  
   
5,473
    
1,396
    
7,381
    
2,475
  
General and administrative
    
8,200
    
6,566
    
14,371
    
11,934
  
Provision for loan losses and recourse loans
    
2,266
    
--
    
2,700
    
64
  
   
(4,585
)
  
--
    
139
    
--
  
   
 
 
 
 
Total expenses
    
23,949
    
17,097
    
48,745
    
31,964
  
   
 
 
 
 
 
    
 
    
 
    
 
    
 
  
(Loss) income before income tax (benefit) expense
    
(2,966
)
  
11,736
    
(12,603
)
  
18,701
  
Provision for income tax (benefit) expense
   
(1,136
)
  
35
    
(4,858
)
  
303
  
   
 
 
 
 
 
$
(1,830
)
$
11,701
  
$
(7,745
)
$
18,398
  
   
 
 
 
 
 
    
 
    
 
    
 
    
 
  
Other Comprehensive (Loss) Income:
    
 
    
 
    
 
    
 
  
Net unrealized holding gains on derivatives
arising during the period
    
45
   
--
    
45
   
--
  
   
 
 
 
 
Other comprehensive (loss) income
  
$
(1,785
)
$
11,701
  
$
(7,700
)
$
18,398
  
   
 
 
 
 
 
    
 
    
 
    
 
    
 
  
   
 
    
 
    
 
    
 
  
outstanding
    
16,943,982
   
16,207,593
    
16,934,174
   
16,065,175
  
   
 
 
 
 
Diluted -weighted average number of shares
outstanding
    
16,943,982
   
19,137,433
   
16,934,174
   
18,952,356
  
   
 
 
 
 
 
$
(1,830
)
$
11,005
 
$
(7,745
)
$
17,702
  
   
 
 
 
 
 
$
(0.11
)
$
0.68
  
$
(0.46
)
$
1.10
 
   
 
 
 
 
 
$
(0.11
)
$
0.58
 
$
(0.46
)
$
0.93