Lomas Financial Corp. announced a mammoth loss of $182.7 million for its year ended June 30.

At the same time, the company said it had made asset sales that should bring more than $25 million in cash into its coffers, easing a liquidity crunch.

Much of the $9.07 per share loss systems from special charges. Operating losses from continuing operations were $12.9 million.

But the Dallas-based company made an $80 million writedown to the value of its servicing portfolio as well as $74.2 million in charges to its discontinued information processing and short-term lending units.

Lomas also recorded a charge of $15.6 million related to layoffs and restructurings.

Lomas executives attempted to focus on the positive side of the news.

"The $180 million loss doesn't look so good, but we are now at the end of a five-year restructuring," said Bert Byedey, senior vice president and treasurer.

Key to this is the sale of Lomas Information Systems to Prudential Insurance Corp., announced last week. Lomas Information was a drag on earning for several years, loosing more than $23 million last year.

"It's a mixed bag; it's good that they stopped cash losses... but all the results are still on the come," said Michael Corasaniti, an analyst at Alex. Brown who has long had a "sell" rating on Lomas.

Under a deal announced last week, but detailed Tuesday, Prudential Insurance Corp. will buy Lomas Information Systems for a mix of cash, securities and an earn-out provision.

The deal in short:

* A $2.5 million cash payment at closing.

* An $8.0 million payment-i.nkind note due five years after closing, against which certain ongoing losses may be debited.

* A royalty provision equalling 35% of the Lomas Information Systems revenues in excess of $55 million per year from 19952001.

Lomas values the payment at $40 million. "The LIS sale is a win-win situation," said Jess Hay, Lomas' chairman. "For Lomas it means the elimination of operating losses which in fiscal 1994 totaled $23.2 million and the cessation of cash subsidies ... of $15 million per year."

However, to get to the $40 million figure, Prudential will have to pay Lomas $102 million over the seven-year earnout. That figure implies average revenues of more than $90 million a year at the unit, up from $35 million.

The $35 million was produced by servicing 1.3 million loans. Lomas expects that Prudential will have some 7.2 million loans on board in five to six years, a spectacular rise.

Lomas also hailed its progress in disposing of the assets of its Short-Term Lending unit.

By selling 12 properties, the company will be able to retire $19 million of debt and upstream about $24 million of cash.

"The cash isn't a lifesaver, but we have been fairly cash constrained," said ML Byerley.

The news, announced after trading Tuesday, pushed shares of Lomas upward yesterday by as much as 78 cents, to $5.25.

Having disposed of Lomas Information Systems and made strides with ST Lending, the company may now seek to sell its mortgage banking operations..

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