UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report
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(Date of earliest event reported): July 20, 2004
OCWEN FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Florida 1-13219 65-0039856
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
The Forum, Suite 1000
1675 Palm Beach Lakes Boulevard, West Palm Beach, Florida 33401
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (561) 682-8000
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N/A
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(Former name or former address, if changed since last report)
Page 1 of 6
Exhibit Index on Page 4
Item 5. Other Events
The news release of the Registrant dated July 20, 2004,
announcing the order of a federal judge vacating a jury award of
$9.3 million against the Registrant's subsidiaries, Ocwen Federal
Bank FSB and Ocwen Technology Xchange, and ordering a new trial
on damages is attached hereto and filed herewith as Exhibit 99.2.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
(a) - (b) Not applicable.
(c) Exhibits
The following exhibits are filed as part of this report:
99.1 Text of a press release by the Registrant dated July 20,
2004.
99.2 Text of a press release by the Registrant dated July 20,
2004.
Item 12. Disclosure of Results of Operations and Financial Condition
The news release of the Registrant dated July 20, 2004,
announcing increased second quarter 2004 net income is attached
hereto and filed herewith as Exhibit 99.1.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
OCWEN FINANCIAL CORPORATION
(Registrant)
By: /s/ MARK S. ZEIDMAN
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Mark S. Zeidman
Senior Vice President and
Chief Financial Officer
Date: July 20, 2004
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INDEX TO EXHIBIT
Exhibit No. Description Page
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99.1 News release of Ocwen Financial 5
Corporation, dated July 20, 2004,
announcing increased second quarter 2004
net income and certain other information.
99.2 The news release of Ocwen Financial 6
Corporation dated July 20, 2004,
announcing the order of a federal judge
vacating a jury award of $9.3 million
against its subsidiaries, Ocwen Federal
Bank FSB and Ocwen Technology Xchange, and
ordering a new trial on damages.
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Exhibit 99.1
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OCWEN
[LOGO OMITTED] Ocwen Financial Corporation(R)
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FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
Robert J. Leist, Jr.
Vice President & Chief Accounting Officer
T: (561) 682-7958
E: rleist@ocwen.com
OCWEN FINANCIAL CORPORATION ANNOUNCES
INCREASED SECOND QUARTER 2004 NET INCOME
West Palm Beach, FL - (July 20, 2004) Ocwen Financial Corporation (NYSE:OCN)
today reported that it has increased its net income for the second quarter of
2004 to $9.1 million or $0.13 per share compared to the originally reported net
income of $0.8 million or $0.01 per share reported in its press release of July
13, 2004. Year to date, the Company reported net income of $15.9 million or
$0.23 per share as compared to $7.5 million or $0.11 per share as reported in
the July 13th release. The revision of 2004 net income reflects the reversal of
reserves established as a result of a jury verdict announced on July 9th, and
subsequently vacated by the federal judge, as discussed further below.
Ocwen learned on July 19th that a federal judge in Denver, Colorado vacated a
$9.3 million jury verdict in a trade secrets case brought by a former real
estate valuation vendor, Cartel Asset Management, Inc. ("Cartel") and ordered a
new trial on damages. The Court's order also vacated the punitive damage
component of the jury's verdict. The lawsuit does not involve challenges to
Ocwen Federal Bank's core Residential Loan Servicing practices.
Ocwen Financial Corporation is a diversified financial services holding company
with headquarters in West Palm Beach, Florida and operations in India, Japan and
Taiwan. Ocwen Financial Corporation is engaged in a variety of businesses
related to residential and commercial mortgage servicing, real estate asset
management, asset recovery, global outsourcing and the marketing and sales of
technology solutions to third parties. Ocwen Financial Corporation is a global
leader in customer service excellence as a result of our company-wide commitment
to quality, integrity and accountability. Additional information about Ocwen
Financial Corporation is available at www.ocwen.com.
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, but not limited to,
interest rates and the impact of changes in interest rates on the servicing
business, the availability of financing alternatives, the potential actions that
may result in our no longer being a thrift holding company, and expectations
with regard to litigation. Forward-looking statements are not guarantees of
future performance, and involve a number of assumptions, risks and uncertainties
that could cause actual results to differ materially.
Important factors that could cause actual results to differ materially from
those suggested by the forward-looking statements include, but are not limited
to, the following: general economic and market conditions, prevailing interest
or currency exchange rates, governmental regulations and policies, international
political and economic uncertainty, availability of adequate and timely sources
of liquidity, uncertainty related to dispute resolution and litigation, federal
income tax rates, recognition of deferred tax credits and real estate market
conditions and trends, as well as other risks detailed in OCN's reports and
filings with the Securities and Exchange Commission, including its periodic
report on Form 10-K for the year ended December 31, 2003. The forward-looking
statements speak only as of the date they are made and should not be relied
upon. OCN undertakes no obligation to update or revise the forward-looking
statements.
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Exhibit 99.2
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OCWEN
[LOGO OMITTED] Ocwen Financial Corporation(R)
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FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
Robert J. Leist, Jr.
Vice President & Chief Accounting Officer
T: (561) 682-7958
E: rleist@ocwen.com
COURT THROWS OUT DAMAGES VERDICT AGAINST
OCWEN FEDERAL BANK AND OCWEN TECHNOLOGY XCHANGE
West Palm Beach, FL (July 20, 2004) - Ocwen Federal Bank FSB and Ocwen
Technology Xchange, Inc., both wholly-owned subsidiaries of Ocwen Financial
Corporation (NYSE:OCN), learned yesterday that a federal judge in Denver,
Colorado threw out a $9.3 million jury verdict in a trade secrets case brought
by a former real estate valuation vendor, Cartel Asset Management, Inc.
("Cartel"). The lawsuit does not involve challenges to Ocwen Federal Bank's core
Residential Loan Servicing practices.
In vacating the jury's July 9, 2004 verdict and ordering a new trial on damages,
U.S. District Judge Phillip S. Figa held that "assumptions in Cartel's damages
testimony and in the evidence generally render its damages case of `junk'
quality." The Court described Cartel's damages allegation variously as
"untenable as a matter of law," "highly questionable and speculative. Indeed, it
is flat-out wrong."
The Court's order also vacated the punitive damage component of the jury's
verdict. "Because punitive damages require a correlation with the magnitude of
the injury and the actual damages," wrote Judge Figa, "they too were improperly
awarded as a matter of law."
The parties were ordered to appear for a scheduling conference with the Court on
September 10, 2004.
Ocwen Financial Corporation is a diversified financial services holding company
with headquarters in West Palm Beach, Florida and operations in India, Japan and
Taiwan. Ocwen Financial Corporation is engaged in a variety of businesses
related to residential and commercial mortgage servicing, real estate asset
management, asset recovery, global outsourcing and the marketing and sales of
technology solutions to third parties. Ocwen Financial Corporation is a global
leader in customer service excellence as a result of our company-wide commitment
to quality, integrity and accountability. Additional information about Ocwen
Financial Corporation is available at www.ocwen.com.
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