OVERLAND PARK, KS--(Marketwire - July 21, 2008) - Brooke Capital Corporation (AMEX: BCP) provided an update on the operating initiatives the company announced in May.
During the second quarter, Brooke Capital transitioned from a high-growth insurance agency franchisor that was dependent on credit availability for acquisitions by franchisees, to a no-growth insurance agency franchisor that is positioned to survive the credit crunch. This transition required significant expense reductions.
Although the second quarter represented a challenging time, Brooke Capital's cash flow projections for the third quarter indicate that the result of the transition met the company's expectations. The transition is mostly completed and Brooke Capital expects to return to profitability in the third quarter. Brooke Capital appreciates the patience of franchisees, employees, investors and vendors during this difficult transition period.
Assisting lenders with the sale of underperforming franchisees is Brooke Capital's only remaining transitional activity of significance. After underperforming franchisees are eliminated from the franchise system, Brooke Capital's business activities will focus on basic franchisor services such as commission allocations, document management and advertising assistance.
As the result of national office personnel reductions, Brooke Capital will soon terminate its office lease at 10950 Grandview in Overland Park and consolidate these operations into Brooke Capital's offices at 8500 College Blvd., in Overland Park.
Brooke Capital Corporation (AMEX: BCP) is an Overland Park, Kansas-based insurance organization founded in 1997. Brooke Capital is an insurance agency franchisor and consultant.