Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Altisource Asset Management Corp | d678601d8k.htm |
Exhibit 99.1
| 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 Fourth Quarter and Full Year 2013 Results
FREDERIKSTED, United States Virgin Islands, February 20, 2014 (GLOBE NEWSWIRE) - Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE MKT: AAMC) announced today financial and operating results for the fourth quarter and full year of 2013. The Company’s net loss for the fourth quarter of 2013 totaled $0.4 million, or $0.17 per share.1 Net loss attributable to common stockholders for the year ended December 31, 2013 totaled $5.3 million or $2.26 per share.2 Adjusted earnings for the fourth quarter of 2013 totaled $4.0 million and for the full year of 2013 totaled $2.5 million.³
Fourth quarter 2013 highlights:
| • | Generated positive adjusted earnings for the quarter of $4.0 million.³ |
| • | Earned incentive management fees from Altisource Residential Corporation (“Residential”) of $4.8 million. |
| • | Facilitated Residential’s acquisition of three portfolios of non-performing residential mortgage loans (“NPLs”) with an aggregate market value of underlying properties of $1.7 billion representing a 170% increase in underlying property value from the end of the third quarter. $530 million of these NPLs closed in December 2013. |
Full-year 2013 highlights:
| • | Facilitated the acquisition of an aggregate of approximately 13,500 non-performing loans with $2.7 billion in underlying property value. |
| • | Assisted Residential in raising $659 million in equity capital at accretive prices. |
| • | Assisted Residential in securing $750 million of portfolio debt financing. |
Subsequent event highlights
| • | Assisted Residential in raising $468 million in equity capital at accretive prices. |
| • | Facilitated Residential’s purchase of $890 million of NPLs pursuant to fourth quarter agreements. |
Chief Executive Officer Ashish Pandey stated, “2013 was a successful year for AAMC and Residential. Through our sound asset management services, Residential was successful in growing its NPL portfolio, securing additional debt and accretive equity capital and managing the resolution of its loans.”
“We are proud of our implementation of Residential’s differentiated business plan. We believe that, with AAMC’s guidance, Residential successfully delivered on every critical aspect of its business model in 2013. Residential generated positive cash flows and achieved an acquisition discount that we believe translates into significant embedded value in its portfolio. I am pleased with what we have been able to accomplish for Residential and for our shareholders in our first full year of operations,” said Chairman William Erbey.
Webcast and conference call
The Company will host a webcast and conference call on Thursday, February 20, 2014, at 11:30 a.m. Eastern Standard Time to discuss its financial results for the fourth quarter and full year of 2013. The conference call will be webcast live over the internet from the Company’s website at www.altisourceamc.com and can be accessed by clicking on the “Shareholder” section.
| 1 | Based on a weighted average of 2.3 million shares outstanding during the fourth quarter. |
| 2 | Based on a weighted average of 2.3 million shares outstanding during the year. |
| ³ | Adjusted earnings are calculated by excluding non-cash stock compensation expense of $4.4 million and $7.8 million, respectively, from the Company’s reported GAAP net losses of $0.4 million and $5.3 million for the fourth quarter and full year of 2013, respectively. |
About AAMC
AAMC is an asset management company that provides portfolio management and corporate governance services to institutional investors. 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 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, its Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 and other filings with the Securities and Exchange Commission.
Non-GAAP Performance Measures
This news release contains references to “adjusted earnings” which is a non-GAAP performance measure. We believe this non-GAAP performance measure provide additional meaningful information regarding our operating results. This information should be considered in addition to, and not as a substitute for our financial results determined in accordance with U.S. GAAP.
Altisource Asset Management Corporation
Consolidated Statements of Operations
($ in thousands)
| Three months ended December 31, 2013 |
For the year ended December 31, 2013 |
|||||||
| Rental revenues and net gain on investments: |
||||||||
| Rental revenues |
$ | 30 | $ | 36 | ||||
| Net unrealized gain on mortgage loans |
35,129 | 61,092 | ||||||
| Net realized gain on mortgage loans |
6,467 | 10,482 | ||||||
|
|
|
|
|
|||||
| Total rental revenues and net gain on investments |
41,626 | 71,610 | ||||||
| Expenses: |
||||||||
| Residential rental property operating expenses |
492 | 767 | ||||||
| Real estate depreciation and amortization |
21 | 25 | ||||||
| Mortgage loan servicing costs |
6,630 | 10,418 | ||||||
| Interest expense |
3,405 | 4,568 | ||||||
| General and administrative |
7,441 | 18,449 | ||||||
| Related party general and administrative |
2,715 | 3,767 | ||||||
|
|
|
|
|
|||||
| Total expenses |
20,704 | 37,994 | ||||||
| Other income |
325 | 687 | ||||||
|
|
|
|
|
|||||
| Net income |
21,247 | 34,303 | ||||||
| Net loss (income) attributable to noncontrolling interest in consolidated affiliate |
(21,644 | ) | (39,596 | ) | ||||
|
|
|
|
|
|||||
| Net loss attributable to common stockholders |
$ | (397 | ) | $ | (5,293 | ) | ||
|
|
|
|
|
|||||
| Earnings per share of common stock – basic: |
||||||||
| Earnings per share basic |
$ | (0.17 | ) | $ | (2.26 | ) | ||
| Weighted average common stock outstanding – basic |
2,346,993 | 2,346,993 | ||||||
| Earnings per share of common stock – diluted: |
||||||||
| Earnings per share diluted |
$ | (0.17 | ) | $ | (2.26 | ) | ||
| Weighted average common stock outstanding – diluted |
2,346,993 | 2,346,993 | ||||||
Altisource Asset Management Corporation
Consolidated Balance Sheets
($ in thousands)
| December 31, 2013 | December 31, 2012 | |||||||
| Assets: |
||||||||
| Real estate assets: |
||||||||
| Land (from consolidated VIE) |
$ | 478 | $ | — | ||||
| Rental residential properties, net (from consolidated VIE) |
3,092 | — | ||||||
| Real estate owned (from consolidated VIE) |
32,332 | — | ||||||
|
|
|
|
|
|||||
| 35,902 | — | |||||||
| Real estate assets held for sale (from consolidated VIE) |
1,186 | — | ||||||
| Mortgage loans (from consolidated VIE) |
1,207,163 | — | ||||||
| Cash and cash equivalents (including from consolidated VIE $115,988 and $100,005, respectively) |
140,000 | 105,014 | ||||||
| Restricted cash (from consolidated VIE) |
5,878 | — | ||||||
| Accounts receivable (from consolidated VIE) |
1,428 | — | ||||||
| Related party receivables (including from consolidated VIE $9,260 and $0, respectively) |
9,260 | 361 | ||||||
| Deferred leasing and financing costs, net (from consolidated VIE) |
2,293 | — | ||||||
| Prepaid expenses and other assets (including from consolidated VIE $1,542 and $6, respectively) |
1,994 | 440 | ||||||
|
|
|
|
|
|||||
| Total assets |
1,405,104 | 105,815 | ||||||
|
|
|
|
|
|||||
| Liabilities: |
||||||||
| Repurchase agreements (from consolidated VIE) |
602,382 | — | ||||||
| Accounts payable and accrued liabilities (including from consolidated VIE $4,952 and $46, respectively) |
6,872 | 406 | ||||||
| Related party payables (including from consolidated VIE $1,409 and $54, respectively) |
2,883 | 528 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
612,137 | 934 | ||||||
| Commitments and contingencies |
||||||||
| Equity: |
||||||||
| Common stock, $.01 par value, 5,000,000 authorized shares; 2,354,774 and 2,343,213 shares issued and outstanding as of December 31, 2013 and 2012, respectively |
24 | 23 | ||||||
| Additional paid-in capital |
12,855 | 4,993 | ||||||
| Accumulated deficit |
(5,339 | ) | (46 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
7,540 | 4,970 | ||||||
| Noncontrolling interest in consolidated affiliate |
785,427 | 99,911 | ||||||
| Total equity |
792,967 | 104,881 | ||||||
|
|
|
|
|
|||||
| Total liabilities and equity |
$ | 1,405,104 | $ | 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
Consolidating Statement of Operations
Year ended December 31, 2013
($ thousands)
| Residential (GAAP) |
NewSource stand-alone (non-GAAP) |
AAMC stand- alone (non-GAAP) |
Consolidating entries |
AAMC consolidated (GAAP) |
||||||||||||||||
| Revenues and net gain on investments: |
||||||||||||||||||||
| Rental revenues |
$ | 36 | $ | — | $ | — | $ | — | $ | 36 | ||||||||||
| Net unrealized gain on mortgage loans |
61,092 | — | — | — | 61,092 | |||||||||||||||
| Net realized gain on mortgage loans |
10,482 | — | — | — | 10,482 | |||||||||||||||
| Incentive management fee |
— | — | 4,880 | (4,880 | ) | — | ||||||||||||||
| Expense reimbursements |
— | — | 5,411 | (5,411 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
71,610 | — | 10,291 | (10,291 | ) | 71,610 | ||||||||||||||
| Expenses: |
||||||||||||||||||||
| Residential rental property operating expenses |
767 | — | — | — | 767 | |||||||||||||||
| Real estate depreciation and amortization |
25 | — | — | — | 25 | |||||||||||||||
| Mortgage loan servicing costs |
10,418 | — | — | — | 10,418 | |||||||||||||||
| Interest expense |
4,568 | — | — | — | 4,568 | |||||||||||||||
| General and administrative |
4,392 | 77 | 13,980 | — | 18,449 | |||||||||||||||
| Related party general and administrative |
12,531 | — | 1,527 | (10,291 | ) | 3,767 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total expenses |
32,701 | 77 | 15,507 | (10,291 | ) | 37,994 | ||||||||||||||
| Other income |
687 | — | — | — | 687 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
39,596 | (77 | ) | (5,216 | ) | — | 34,303 | |||||||||||||
| Net income attributable to noncontrolling interest in consolidated affiliate |
— | — | — | (39,596 | ) | (39,596 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common stockholders |
$ | 39,596 | $ | (77 | ) | $ | (5,216 | ) | $ | (39,596 | ) | $ | (5,293 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Altisource Asset Management Corporation
Consolidating Statement of Operations
Three months ended December 31, 2013
($ in thousands)
| Residential (GAAP) |
NewSource stand-alone (non-GAAP) |
AAMC stand-alone (non-GAAP) |
Consolidating entries |
AAMC consolidated (GAAP) |
||||||||||||||||
| Revenues and net gain on investments: |
||||||||||||||||||||
| Rental revenues |
$ | 30 | $ | — | $ | — | $ | — | $ | 30 | ||||||||||
| Net unrealized gain on mortgage loans |
35,129 | — | — | — | 35,129 | |||||||||||||||
| Net realized gain on mortgage loans |
6,467 | — | — | — | 6,467 | |||||||||||||||
| Incentive management fee |
— | — | 1,509 | (1,509 | ) | — | ||||||||||||||
| Expense reimbursements |
— | — | 5,360 | (5,360 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
41,626 | — | 6,869 | (6,869 | ) | 41,626 | ||||||||||||||
| Expenses: |
||||||||||||||||||||
| Residential rental property operating expenses |
492 | — | — | — | 492 | |||||||||||||||
| Real estate depreciation and amortization |
21 | — | — | — | 21 | |||||||||||||||
| Mortgage loan servicing costs |
6,630 | — | — | — | 6,630 | |||||||||||||||
| Interest expense |
3,405 | — | — | — | 3,405 | |||||||||||||||
| General and administrative |
1,702 | 77 | 5,662 | — | 7,441 | |||||||||||||||
| Related party general and administrative |
8,057 | — | 1,527 | (6,869 | ) | 2,715 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total expenses |
20,307 | 77 | 7,189 | (6,869 | ) | 20,704 | ||||||||||||||
| Other income |
325 | — | — | — | 325 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
21,644 | (77 | ) | (320 | ) | — | 21,247 | |||||||||||||
| Net income attributable to noncontrolling interest in consolidated affiliate |
— | — | — | (21,644 | ) | (21,644 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common stockholders |
$ | 21,644 | $ | (77 | ) | $ | (320 | ) | $ | (21,644 | ) | $ | (397 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Altisource Asset Management Corporation
Consolidating Balance Sheet
December 31, 2013
($ thousands)
| Residential | NewSource stand-alone |
AAMC stand-alone |
Consolidating | AAMC consolidated |
||||||||||||||||
| (GAAP) | (non-GAAP) | (non-GAAP) | entries | (GAAP) | ||||||||||||||||
| Assets: |
||||||||||||||||||||
| Real estate assets, net: |
||||||||||||||||||||
| Land |
$ | 478 | $ | — | $ | — | $ | — | $ | 478 | ||||||||||
| Rental residential properties, net |
3,092 | — | — | — | 3,092 | |||||||||||||||
| Real estate owned |
32,332 | — | — | — | 32,332 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 35,902 | — | — | — | 35,902 | ||||||||||||||||
| Real estate assets held for sale |
1,186 | — | — | — | 1,186 | |||||||||||||||
| Mortgage loans |
1,207,163 | — | — | — | 1,207,163 | |||||||||||||||
| Cash and cash equivalents |
115,988 | 19,923 | 4,089 | — | 140,000 | |||||||||||||||
| Restricted cash |
5,878 | — | — | — | 5,878 | |||||||||||||||
| Accounts receivable |
1,428 | — | — | — | 1,428 | |||||||||||||||
| Related party receivables |
9,260 | — | 4,486 | (4,486 | ) | 9,260 | ||||||||||||||
| Investment in affiliate |
18,000 | — | 2,000 | (20,000 | ) | — | ||||||||||||||
| Deferred leasing and financing costs, net |
2,293 | — | — | — | 2,293 | |||||||||||||||
| Prepaid expenses and other assets |
1,542 | — | 452 | — | 1,994 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
1,398,640 | 19,923 | 11,027 | (24,486 | ) | 1,405,104 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities: |
||||||||||||||||||||
| Repurchase agreement |
602,382 | — | — | — | 602,382 | |||||||||||||||
| Accounts payable and accrued liabilities |
4,952 | — | 1,920 | — | 6,872 | |||||||||||||||
| Related party payables |
5,879 | — | 1,490 | (4,486 | ) | 2,883 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
613,213 | — | 3,410 | (4,486 | ) | 612,137 | ||||||||||||||
| Commitments and contingencies |
||||||||||||||||||||
| Equity: |
||||||||||||||||||||
| Common stock |
423 | — | 24 | (423 | ) | 24 | ||||||||||||||
| Additional paid-in capital |
758,584 | 20,000 | 12,855 | (778,584 | ) | 12,855 | ||||||||||||||
| Retained earnings (accumulated deficit) |
26,420 | (77 | ) | (5,262 | ) | (26,420 | ) | (5,339 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity |
785,427 | 19,923 | 7,617 | (805,427 | ) | 7,540 | ||||||||||||||
| Noncontrolling interest in consolidated affiliate |
— | — | — | 785,427 | 785,427 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total equity |
785,427 | 19,923 | 7,617 | (20,000 | ) | 792,967 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and equity |
$ | 1,398,640 | $ | 19,923 | $ | 11,027 | $ | (24,486 | ) | $ | 1,405,104 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Altisource Asset Management Corporation
Consolidating Balance Sheet
December 31, 2012
(Unaudited, in thousands)
| Residential | AAMC Stand-alone | Consolidating | AAMC Consolidated |
|||||||||||||
| (GAAP) | (Non-GAAP) | Entries | (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 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||