BXXX Brooke Corp (MM)

OVERLAND PARK, Kan., Nov. 3 /PRNewswire-FirstCall/ -- Brooke Corporation (NASDAQ:BXXX) reported that net earnings for the nine months ended September 30, 2005, totaled $7,426,000, or $.69 per diluted share, on revenues of $106,132,000, as compared with net earnings of $5,216,000, or $.51 per diluted share, on revenues of $72,067,000 for the same period a year ago. For this nine-month period, total earnings increased 42% and total revenues increased 47%. The Company also announced that net earnings for the three months ended September 30, 2005, totaled $1,980,000, or $.18 per diluted share, on revenues of $37,085,000, as compared with net earnings of $1,408,000, or $.14 per diluted share, on revenues of $26,170,000 for the same period a year ago. For this three-month period, total earnings increased 41% and total revenues increased 42%. About our company ... Brooke Corporation is listed on the Nasdaq National Market under the symbol "BXXX." Brooke Corporation is a holding company with two primary subsidiaries. Brooke Franchise Corporation is a subsidiary that distributes insurance and financial services through a network of over 495 franchise locations. Brooke Credit Corporation is a subsidiary that originates loans to insurance agencies, financial services practices, funeral homes and other local businesses, including Brooke franchises. For more information, go to http://www.brookecorp.com/ . Email Distribution ... If you would like to receive electronic press release information, then please visit the "Investor Relations" section of our web site at http://www.brookecorp.com/ and subscribe to our "Email Alerts" on-line. This press release contains forward-looking statements. All forward- looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company's products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, its ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by Brooke Corporation with the Securities and Exchange Commission. A more complete description of Brooke's business is provided in Brooke Corporation's most recent annual, quarterly and current reports, which are available from Brooke Corporation without charge or at http://www.sec.gov/ . Brooke Corporation Consolidated Statements of Income (in thousands, except per share data) (unaudited) For the For the Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Revenues Insurance commissions $21,857 $15,529 $65,799 $46,718 Interest income (net) 2,921 1,282 7,032 3,159 Seller consulting fees 1,704 1,183 4,206 3,911 Gain on sale of businesses 619 2,755 1,476 3,157 Initial franchise fees for basic services 5,125 2,970 13,250 6,155 Initial franchise fees for buyer assistance plans 4,149 1,848 9,405 5,138 Gain on sale of notes receivable (340) (125) 2,551 1,823 Insurance premiums earned 333 2 553 270 Policy fee income 494 645 1,287 1,523 Other income 223 81 573 213 Total Revenues 37,085 26,170 106,132 72,067 Expenses Commissions expense 17,438 12,396 49,394 35,746 Payroll expense 7,176 5,418 21,125 14,345 Depreciation and amortization 670 650 1,807 1,742 Insurance loss and loss expense incurred - (17) - 13 Other operating expenses 7,140 4,719 17,964 10,294 Other operating interest expense 657 151 1,415 485 Interest expense 1,037 710 2,837 1,634 Total Expenses 34,118 24,027 94,542 64,259 Income Before Income Taxes 2,967 2,143 11,590 7,808 Income tax expense 987 735 4,164 2,592 Net Income $1,980 $1,408 $7,426 $5,216 Net Income per Share: Basic $0.19 $0.14 $0.71 $0.54 Diluted $0.18 $0.14 $0.69 $0.51 DATASOURCE: Brooke Corporation CONTACT: Anita Larson of Brooke Corporation, +1-913-661-0123, Web site: http://www.brookecorp.com/

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