Brooke Capital Corporation Announces Fourth Quarter 2007 Earnings

OVERLAND PARK, Kan., March 13 /PRNewswire-FirstCall/ -- Brooke Capital
Corporation (Amex: BCP) today reported its fourth quarter financial results
for the quarter ended Dec. 31, 2007.
"Overall I am pleased with our 2007 results," said Kyle Garst, chief
executive officer of Brooke Capital Corporation. "As we enter into 2008 I
believe our organization is very well positioned to capitalize on the large
market opportunity in front of us, and we have the right team, organizational
structure and operational discipline to execute on our strategy."
The following includes net earnings and revenue information as reported
for the three- and twelve- month periods ended Dec. 31, 2007. However, to
provide investors with a clearer picture of Brooke Capital's financial
results, certain pro forma financial information is provided to illustrate how
Brooke Capital's results of operations would have been if the company included
the results of operations for Delta Holdings for the periods presented.
Reported Results of Operations
Net earnings reported for year ended
Dec. 31, 2007, totaled $2.4 million or 28 cents per diluted share, on reported
revenues of $172 million, compared to net earnings of $3.5 million or 50 cents
per diluted share, on reported revenues of $144 million for the same period in
the prior year. For the year, total revenues increased 19 percent.
Reported net loss for the three months ended Dec. 31, 2007, totaled
$2.3 million or 27 cents per diluted share, on reported revenues of
$40.1 million, compared to net earnings of $1 million, or 13 cents per diluted
share, on reported revenues of $35.2 million for the same period in the prior
year. For this three-month period, total reported revenues increased
14 percent.
Insurance Company Segment
On a pro forma basis, assuming the proposed acquisition of Delta Plus
occurred as of Jan. 1, 2007, this segment had total revenues of $19.2 million
and income before taxes of $677,000 for the year ended Dec. 31, 2007.
Insurance Agency Segment
Insurance agency operations generated total revenues of $166.2 million and
income before taxes of $5.1 million for the year ended Dec. 31, 2007.
Comparatively, insurance agency operations total revenues and income before
taxes from franchise and consulting activities totaled $143.5 million and $5.0
million during the year ended Dec. 31, 2006.
Corporate Segment
Revenues for Brooke Capital parent company-only are not significant. On a
pro forma basis, the parent company-only incurred losses before income taxes
of $1.8 million for the year ended Dec. 31, 2007.
During 2007 Brooke Capital Corporation's insurance agency segment incurred
net expenses totaling $15.6 million for the purpose of assisting insurance
agency borrowers pursuant to collateral preservation agreements with lenders.
Brooke Capital Corporation began invoicing lenders for the cost of providing
these borrower assistance services in 2008.
Additional information is provided in the quarterly report on Form 10-K
filed with the Securities and Exchange Commission by Brooke Capital
Corporation and Brooke Corporation.
Earnings Conference Call
Brooke Capital Corporation's Chief Executive Officer, Kyle Garst, and
Chief Operating Officer, Dane Devlin, along with Chairman, Robert D. Orr, and
Vice Chairman, Michael Hess, will host an investor and analyst conference call
on Friday, March 14, at 9 a.m. CDT (10 a.m. EDT) to discuss its financial and
operating results for the fourth quarter of 2007.
To join the call, please dial 1-866-831-6270 in the United States and
Canada, or 1-617-213-8858 if calling internationally. The conference ID number
is 12308790. A live broadcast of the call will be available on the Investor
Relations section of Brooke Capital Corporation's Web site here. A replay of this call will be
available for eight days by using the dial-in 1-888-286-8010 in the United
States and Canada and 1-617-801-6888 if calling internationally. The replay
conference ID number is 14152271.
About Brooke Capital Corporation ... Brooke Capital Corporation is an
affiliate of Brooke Corporation that operates a life insurance company and has
agreed to acquire an auto insurance company. As the result of a recent merger
with Brooke Franchise Corporation, the company's insurance company business is
supported by a network of independent insurance agency franchises. For more
information, visit www.brookeagent.com.
This press release contains forward-looking statements. All
forward-looking statements involve risks and uncertainties, and several
factors could cause actual results to differ materially from those in the
forward-looking statements. The following factors, among others, could cause
actual results to differ from those indicated in the forward-looking
statements: the uncertainty that the Company will achieve its short-term and
long-term profitability and growth goals, uncertainties associated with market
acceptance of and demand for the Company's products and services, the impact
of competitive products and pricing, the dependence on third-party suppliers
and their pricing, the ability to meet product demand, the availability of
funding sources, the exposure to market risks, uncertainties associated with
the development of technology, changes in the law and in economic, political
and regulatory environments, changes in management, the dependence on
intellectual property rights, the effectiveness of internal controls, the risk
that all closing conditions may not be met and the proposed merger of Brooke
Franchise into Brooke Capital may not close and risks and factors described
from time to time in reports and registration statements filed by Brooke
Corporation with the Securities and Exchange Commission. A more complete
description of Brooke's business is provided in Brooke Corporation's most
recent annual, quarterly and current reports, which are available from Brooke
Corporation without charge or at www.sec.gov.
SOURCE Brooke Capital Corporation

investors, Karen Haus of Market Street Partners, +1-415-445-3238,
Karen@marketstreetpartners.com, for Brooke Capital Corporation