3rd-Period Loss Widens at Butterfield Equities Corp.
Butterfield Equities Corp., parent company of Butterfield Savings and Loan Assn., said Friday that it lost $5.5 million in its fiscal 1985 third quarter, compared to a loss of $3.8 million in the same period a year ago.
The diversified Santa Ana holding company said only $2.5 million of its quarterly loss came from operations, with the remaining $3 million stemming from “adjustments from prior periods.” Those adjustments, the company said in a prepared statement, followed an audit of Butterfield S&L;’s loan portfolio.
Revenues for the third quarter were $25.7 million, up 34% from $19.2 million a year earlier.
The most recent quarterly loss brings Butterfield Equities’ total losses for the first nine months of fiscal 1985 to $21.3 million, compared to a loss of $5.4 million for the same period last year. For the first nine months, Butterfield Equities’ revenues grew 83%, to $82.7 million from $45.1 million. For all of fiscal 1984, which ended June 30, 1984, Butterfield Equities lost $6.5 million.
Butterfield Equities Chairman Donald Endresen declined comment through a spokeswoman Friday, and other top Butterfield officials could not be reached.
In the past, Butterfield Equities officials have cited the holding company’s restaurant operations and the fast growth of its S&L; as primary sources of the company’s sizable losses.
Diversified Holdings
Butterfield spokesman Dave Ross said Friday that the holding company has not yet broken out financial figures for its individual subsidiaries but expects to do so later this month. In addition to its S&L;, Butterfield also owns a 32-store chain of Love’s barbecue restaurants and a number of Wendy’s hamburger stores. The company also operates a real estate syndication division.
In Friday’s prepared statement, Endresen said the $2.5-million operating loss is down considerably from the $8.7-million loss Butterfield reported for the quarter that ended Dec. 31, 1984.
He said Butterfield Savings and Loan reduced its staff by 30% at the beginning of this year and expects to reduce operating costs by $6 million this year.
