Attached files

file filename
8-K - 8-K - Altisource Asset Management Corpq120138kaamcearnings.htm


FOR IMMEDIATE RELEASE
 
 
FOR FURTHER INFORMATION CONTACT:
Kenneth D. Najour
Chief Financial Officer
T: 561-682-8947
E: Kenneth.Najour@AltisourceAMC.com 




Altisource Asset Management Corporation Reports First Quarter 2013 Results

FREDERIKSTED, USVI May 9, 2013 (GLOBE NEWSWIRE) - Altisource Asset Management Corporation (AAMC or the Company) (OTCQX: AAMC) announced today financial and operating results for the first quarter 2013. Net loss attributable to stockholders for the quarter totaled $840,000 or $0.36 per share based on 2.3 million shares outstanding.

First quarter business performance highlights:

On February 21, 2013, we completed an acquisition on behalf of Altisource Residential Corporation (Residential) of a portfolio of non-performing residential mortgage loans (NPLs) having aggregate collateral market value of approximately $94.2 million.
On March 21, 2013, we completed an acquisition on behalf of Residential of an NPL portfolio having aggregate collateral market value of approximately $38.7 million.
On March 22, 2013, on behalf of Residential, we entered into a $100 million Master Repurchase Agreement to finance the acquisition and ownership of sub-performing and non-performing residential mortgage loans and REO properties by Residential.

Subsequent events
On April 5, 2013, we completed an acquisition of behalf of Residential of an NPL portfolio having aggregate collateral market value of approximately $122.1 million.

On May 1, 2013, Residential completed a follow-on equity offering of 17,250,000 shares at $18.75 per share from which Residential received net proceeds of $309.6 million.

Chairman William Erbey stated, “AAMC is off to a solid start with successfully acquiring NPL portfolios that meet Residential's investment criteria, securing financing to leverage Residential's assets and completing an accretive follow-on equity offering to further grow the non-performing loan portfolios for Residential.”

“Our recent portfolio acquisitions and financing activities for Residential are important steps in building a sustainable business,” said Chief Executive Officer Ashish Pandey.

Webcast and conference call
The Company will host a webcast and conference call on Thursday, May 9, 2013, at 11:30 A.M. Eastern Time to discuss its financial results for the first quarter 2013. The conference call will be webcast live over the internet from the Company's website at www.altisourceamc.com, click on the “Shareholder” section.

About AAMC
AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles that own real estate related assets. Its initial client is Residential, a real estate investment trust that is focused on providing affordable rental homes to families throughout the United States.  Additional information is available at www.altisourceamc.com.






Forward-looking statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical fact, including statements about management's beliefs and expectations. Forward-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. AAMC undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: AAMC's ability to achieve its business and strategy and implement its business plan; AAMC's ability to leverage strategic relationships on an efficient and cost-effective basis; its ability to compete; general economic and market conditions; governmental regulations, taxes and policies; availability of adequate and timely sources of liquidity and financing; and other risks and uncertainties detailed in the "Forward-Looking Statements," "Risk Factors" and other sections of AAMC's Registration Statement on Form 10, its Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.






Altisource Asset Management Corporation
(A development stage company)
Consolidated Statement of Operations
(In thousands, except share and per share amounts)
(Unaudited)

 
Three months ended March 31, 2013
March 15, 2012 (Inception)
to March 31, 2013
 
 
 
Net investment gains:
 
 
Net unrealized gains on mortgage loans at fair value
$
1,128

$
1,128

Net realized gains on mortgage loans at fair value
387

387

Total net investment gains
1,515

1,515

Expenses:
 
 
Related party mortgage loan servicing costs
392

392

Interest expense
42

42

General and administrative
2,698

2,833

Related party general and administrative
207

207

Total expenses
3,339

3,474

Net loss
(1,824
)
(1,959
)
Net loss attributable to noncontrolling interest in consolidated affiliate
984

1,073

Net loss attributable to common stockholders
$
(840
)
$
(886
)
 
 
 
Loss per share of common stock – basic:
 
 
Loss per basic share
$
(0.36
)
 
Weighted average common stock outstanding – basic
2,343,213

 
Loss per share of common stock – diluted:
 
 
Loss per diluted share
$
(0.36
)
 
Weighted average common stock outstanding – diluted
2,343,213

 






Altisource Asset Management Corporation
(A development stage company)
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)

 
March 31, 2013
December 31, 2012
Assets:
 
 
Real estate owned (from consolidated VIE)
$
434

$

Mortgage loans at fair value (from consolidated VIE)
87,670


Cash and cash equivalents (including from consolidated VIE $21,947 and $100,005, respectively)
25,894

105,014

Related party receivables (including from consolidated VIE $1,627 and $0, respectively)
1,841

361

Deferred financing costs, net (from consolidated VIE)
1,133


Prepaid expenses and other assets (including from consolidated VIE $635 and $6, respectively)
1,267

440

Total assets
118,239

105,815

Liabilities:
 
 
Repurchase agreement (from consolidated VIE)
12,926


Accounts payable and accrued liabilities (including from consolidated VIE $954 and $46, respectively)
1,714

406

Related party payables (including from consolidated VIE $227 and $5, respectively)
328

528

Total liabilities
14,968

934

Commitments and contingencies
 
 
Equity:
 
 
Common stock, $.01 par value, 5,000,000 authorized shares; and 2,343,213 shares issued and outstanding
23

23

Additional paid-in capital
5,207

4,993

Deficit accumulated during the development stage
(886
)
(46
)
Total stockholders' equity
4,344

4,970

Noncontrolling interest in consolidated affiliate
98,927

99,911

Total equity
103,271

104,881

Total liabilities and equity
$
118,239

$
105,815






The following tables set forth consolidating financial information which should be considered in addition to, and not as a substitute for, our consolidated financial statements presented in accordance with U.S. GAAP:

Altisource Asset Management Corporation
(A development stage company)
Consolidating Statement of Operations
Three months ended March 31, 2013
(In thousands, unaudited)

 
 Residential (GAAP)
 AAMC Stand-alone (Non-GAAP)
 Consolidating Entries
 AAMC Consolidated (GAAP)
 
 
 
 
 
Net investment gains:
 
 
 
 
Net unrealized gains on mortgage loans at fair value
$
1,128

$

$

$
1,128

Net realized gains on mortgage loans at fair value
387



387

Expense reimbursements

895

(895
)

Total net investment gains
1,515

895

(895
)
1,515

Expenses:
 
 
 
 
Related party mortgage loan servicing costs
392



392

Interest expense
42



42

Related party general and administrative
1,078

24

(895
)
207

General and administrative
987

1,711


2,698

Total expenses
2,499

1,735

(895
)
3,339

Net loss
(984
)
(840
)

(1,824
)
Net loss attributable to noncontrolling interest in consolidated affiliate


984

984

Net loss attributable to common stockholders
$
(984
)
$
(840
)
$
984

$
(840
)






Altisource Asset Management Corporation
(A development stage company)
Consolidating Balance Sheet
March 31, 2013
(In thousands, unaudited)

 
 Residential (GAAP)
 AAMC Stand-alone (Non-GAAP)
 Consolidating Entries
 AAMC Consolidated (GAAP)
 
 
 
 
 
Assets:
 
 
 
 
Real estate owned
$
434

$

$

$
434

Mortgage loans at fair value
87,670



87,670

Cash and cash equivalents
21,947

3,947


25,894

Related party receivables
1,627

626

(412
)
1,841

Deferred financing costs, net
1,133



1,133

Prepaid expenses and other assets
635

632


1,267

Total assets
113,446

5,205

(412
)
118,239

Liabilities:
 
 
 
 
Repurchase agreement
12,926



12,926

Accounts payable and accrued liabilities
954

760


1,714

Related party payables
639

101

(412
)
328

Total liabilities
14,519

861

(412
)
14,968

Commitments and contingencies
 
 
 
 
Equity:
 
 
 
 
Common stock
78

23

(78
)
23

Additional paid-in capital
99,922

5,207

(99,922
)
5,207

Deficit accumulated during the development stage
(1,073
)
(886
)
1,073

(886
)
Total stockholders' equity
98,927

4,344

(98,927
)
4,344

Noncontrolling interest in consolidated affiliate


98,927

98,927

Total equity
98,927

4,344


103,271

Total liabilities and equity
$
113,446

$
5,205

$
(412
)
$
118,239






Altisource Asset Management Corporation
(A development stage company)
Consolidating Balance Sheet
December 31, 2012
(In thousands, unaudited)

 
 Residential (GAAP)
 AAMC Stand-alone (Non-GAAP)
 Consolidating Entries
 AAMC Consolidated (GAAP)
Assets:
 
 
 
 
Cash and cash equivalents
$
100,005

$
5,009

$

$
105,014

Related party receivables

410

(49
)
361

Prepaid expenses and other assets
6

434


440

Total assets
100,011

5,853

(49
)
105,815

Liabilities:
 
 
 
 
Accounts payable and accrued liabilities
46

360


406

Related party payables
54

523

(49
)
528

Total liabilities
100

883

(49
)
934

Commitments and contingencies
 
 
 
 
Equity:
 
 
 
 
Common stock
78

23

(78
)
23

Additional paid-in capital
99,922

4,993

(99,922
)
4,993

Deficit accumulated during the development stage
(89
)
(46
)
89

(46
)
Total stockholders' equity
99,911

4,970

(99,911
)
4,970

Noncontrolling interest in consolidated affiliate


99,911

99,911

Total equity
99,911

4,970


104,881

Total liabilities and equity
$
100,011

$
5,853

$
(49
)
$
105,815