Westar greets investors with good news

CHRIS CLOUGH, THE OLYMPIAN

TUMWATER -- Monday was an uncommonly busy day for publicly traded companies in what is known as a state-government community.

Illuminet, one of three publicly traded corporations in Thurston County, announced it was being acquired in a $1.2 billion stock deal, and another public company -- Tumwater's Westar Financial Services -- welcomed investors to its annual shareholders meeting.

And those investors received some welcome news on earnings and revenues.

"We are expecting 76 cents in earnings per share for the quarter that ends Sept. 30," said Bob Christensen Jr., Westar's chief executive officer.

He said Westar expects $137 million in revenue and $1.8 million in profits in its second quarter.

In the same quarter last year, Westar reported revenue of $60 million and a loss of $1.5 million. For fiscal year 2001, which ended March 31, revenue was $307 million.

Second-quarter results this year could be another step toward sustained profitability.

"On a trailing 12-month basis at the close of the quarter, we expect revenues to exceed $488 million and net income to be more than $3.4 million or $1.48 per share, based on current activity," Christensen said.

Westar deems itself "the leading publicly traded automobile-oriented e-commerce financial portal" and completed the first entirely electronic auto purchase on the Internet.

It recently announced an Internet partnership with Leasebanc and has existing private label partnerships with AmSouth Bancorporation, Mellon Bank and USAA Federal Savings Bank.

Revenues and earnings will likely get a further boost in future quarters as the fallout from Bank of America's exit from auto leasing brings more customers to Westar.

"We've barely begun to see the effects of Bank of America's decision to withdraw from the market," Christensen said.

About 110 people -- including visitors from California, Montana and Eastern Washington -- attended the Westar event at the Tumwater Comfort Inn. Shareholders elected Michael Kranitz and Robert Lovely as board members.

"There were lots of questions, lots of interest and lots of enthusiasm," Christensen said. Some of the questions centered on Westar possibly being traded on the Nasdaq. It's now an over-the-counter stock.

Christensen said companies need to meet one of three criteria to trade on the Nasdaq. One seems within reach for Westar: Earning $750,000 or more in a fiscal year.

"Being on the Nasdaq is something we would certainly like to do because it would give us more analyst coverage," Christensen said.

Among the attendees Monday was Lou Feldman of Hoefer & Arnett, a San Francisco-based investment bank.

"I think that it's very positive that in the four years I've known the firm, this is where they have talked about heading," said Feldman, who works out of the bank's Portland office.

Westar Financial

Leading publicly traded automobile-oriented e-commerce financial portal.

- Headquarters: 150 Israel Road S.W., Tumwater

- Telephone: 360-754-6227

- Stock: Traded over the counter under the symbol WEST.OB

- Monday's closing price: $9.10, up $0.35 a share, on a volume of 4,900 trades.

- 52-week high, low: $10.10 on Sept. 10 and $1.63 on Jan. 24.

The Olympian Copyright 2001

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