ABFS Reports $115M Loss

American Business Financial Services Inc., Philadelphia, has reported a loss of $115 million ($34.07 per share) for its fiscal year ended June 30, compared with a loss of $29.9 million ($9.32 per share) a year earlier.Even though the company's first fiscal quarter of 2005 ended on Sept. 30, it reported the fiscal year 2004 results on Oct. 13. For the fourth quarter, the loss was $30.9 million ($8.81 per share), which is actually an improvement on the fourth fiscal quarter 2003 loss of $34.1 million ($10.62 per share). "Factors impacting the company during fiscal 2004 included a high level of loan prepayment activity and an inability to generate new loan originations for a six-month period early in the year," said ABFS executive vice president and chief financial officer Albert W. Mandia. "However, we have made numerous strides to counteract these issues, and exiting fiscal 2004 we believe that the transition to our adjusted business model, which is focused on increasing loan originations and whole loan sales, will generate improved financial performance during fiscal 2005." ABFS said it anticipates reporting a loss for the just-ended first fiscal quarter of 2005.