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Outlook for 2004 | |||
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The drivers of our earnings during the fourth quarter of 2003—improved returns in our investing activities, earning asset growth and market share gains—will continue to be our focus as we look ahead to 2004. Given the significant transition underway in the mortgage industry, our forecasted range for 2004 EPS is $2.90 to $3.25 (1), which is relatively level with the 2003 result. After 2004, we expect to resume EPS growth at our targeted annual rate of 15% or better given our more than ten year compounded annual growth rate of 27%. |
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| We remain exclusively focused on the single-family residential mortgage market. | ||||
| As we look further ahead, our strategies remain consistent. We continue to believe that a disciplined and exclusive focus on the mortgage market will serve IndyMac and its shareholders well. Mortgage debt outstanding (a statistic which filters out the refinance cycles) expands consistently at a 7% to 8% annual growth rate. For those companies with the exclusive focus and expertise that we have, this market provides a great platform for EPS growth and robust shareholder returns. | ||||
| After carefully analyzing trends in the mortgage industry, we have set two key five-year goals for IndyMac: | ||||
| > To become the eighth largest mortgage
originator by 2008 (we’re now the 19th largest). |
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| > To achieve EPS of $8 per share by 2008. | ||||
| (1) The range for 2004 does not yet factor in a potential change in accounting discussed by an SEC staff member in a speech in December 2003, but not yet issued in written form. If this change comes to fruition, it would impact the timing of revenue recognition and have a one-time negative impact on gain on sale revenues in the quarter implemented. This potential change is described in more detail in our Form 10-K. | ||||
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