SOURCE: Surety Capital Corp.

Surety Capital Corp.

April 08, 2015 13:12 ET

Surety Capital Corp. (SRYP.PK) Announces First Quarter 2015 Earnings

Earnings Are Up 20% From 2014

FORT WORTH, TX--(Marketwired - Apr 8, 2015) - Surety Capital Corp. (OTC PINK: SRYP) announces its first quarter ended March 31, 2015 unaudited financial results. Surety's Chairman of the Board and CEO Ralph Mendoza stated, "Surety's net income for the quarter was $19,666, a 20% increase over the same quarter ended March 31, 2014. This increase was primarily attributable to an increase in revenue. This is the seventeenth quarter in a row that Surety has had a net income from its ordinary business operations. The Company is continuing its efforts to grow its customer base within the Hispanic funeral home receivable financing segment and its net income is impacted not only by competitive lending sources, but by factors that impact the demand for funeral home receivable financing in general and its cost of capital."

Mendoza finally stated, "Our decision last year to conserve cash and direct earning back into the Company by not continuing to incur the cost to have the Company pay fees to be quoted on the OTC Market and publish the required reports has significantly contributed to maintaining a positive trend in net income; however it has resulted in marginal to no trading in our shares and a 'stop sign' issued by the OTC. The last reported trade of $.014 per share would indicate our market capitalization is less than three times our annual earnings for the past twelve months and approximately what our liquidation book value is. While there are many factors that influence the volume and value of our share trading, we believe that with our growth and consecutive quarters of positive earnings, our Company's stock is undervalued and represents an opportunity to invest in itself. Therefore, the Board of Directors is considering authorizing the purchase of our stock in the open market. Should the Company determine to make such purchases it will attempt to follow the safe harbor guidelines set forth in SEC Rule 10b-18. Further, we trade as if we are a 'penny stock' but we only have sixteen million shares outstanding while 'penny stocks' usually have many times the number of shares we have outstanding!"

CEO, Chairman Mendoza stated "The Board of Directors received shareholders' approval that Surety convert its domicile to the State of Texas from Delaware with a revised authorized share structure." Surety Capital Corporation currently has 16,400,809 shares of common stock $.01 par value outstanding out of an authorized 20,000,000 shares.

Market Statement: Some limited information about Surety is contained on the OTC Markets OTCPink website; however the Company does not file reports with the Securities and Exchange Commission or otherwise make current financial or other information publicly available. With a lack of current public information available, anyone considering purchasing or selling the Company shares should carefully consider the risks involved with the lack of having such information.

Forward-Looking Statement
This release contains forward-looking statements that reflect Surety's plans and expectations. In this press release and related comments by Company management, words like "hope," "profit," "leading," "opportunity," "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions are used to identify forward-looking statements, representing management's current judgment and expectations about possible future events. Management believes these forward-looking statements and the judgments upon which they are based to be reasonable, but they are not guarantees of future performance and involve numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

Contact Information

  • Contact:
    Surety Capital Corp.
    Ralph Mendoza
    Dick Abrams
    817.850.9800
    dick@sryp.net