Altisource Asset Management Corporation Reports Second Quarter 2017 Results; Continues to Deliver on RESI's Strategic Objecti...
August 08 2017 - 7:30AM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE MKT:AAMC) today announced financial and operating results for
the second quarter of 2017.
Second Quarter 2017 Highlights and
Recent Developments
- Increased Altisource Residential Corporation's (“RESI”) rental
portfolio to 10,053 homes, of which 97% are stabilized.
- Negotiated RESI's acquisition of 751 homes in the second
closing under the previously announced agreement to purchase up to
3,500 rental homes with seller financing from entities sponsored by
Amherst Holdings, LLC.
- Completed RESI’s sale of 2,104 mortgage loans to a third party,
leaving 442 loans in its portfolio.
- Sold 522 non-rental REO properties for RESI, reducing the
number of non-rental REOs by 24% over the prior quarter.
- Continued to improve RESI's operating metrics: Stabilized
Rental Net Operating Income Margin increased to 62%, Stabilized
Rental Core Funds from Operations increased to $0.12 per diluted
share and stabilized occupancy remained at 95%.
- Completed repurchases of $1.0 million of AAMC common stock,
bringing total repurchases under AAMC's repurchase program to
approximately $265.5 million.
“We continue to deliver on RESI's strategic objectives,” stated
Chief Executive Officer, George Ellison. “The disposal of RESI's
legacy mortgage loan portfolio has substantially been completed,
its acquisitions of stabilized rental properties under our
management have increased RESI's rental portfolio to over 10,000
homes and we have continued to improve RESI's operating metrics,
all of which are key steps in positioning AAMC for future
success.”
Second Quarter 2017 Financial Results
AAMC’s net loss attributable to common stockholders for the
second quarter of 2017 totaled $1.8 million, or $1.15 per diluted
share, compared to $1.3 million, or $0.74 per diluted share, for
the second quarter of 2016. Net loss attributable to common
stockholders for the six months ended June 30, 2017 was $3.2
million, or $2.03 per diluted share, compared to $2.3 million, or
$1.22 per diluted share, for the six months ended June 30,
2016.
About AAMC
AAMC is an asset management company that provides portfolio
management and corporate governance services to investment
vehicles. 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.
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; AAMC's and
RESI's ability to compete; AAMC’s ability to implement RESI’s
business plan; general economic and market conditions; governmental
regulations, taxes and policies; AAMC's ability to generate
adequate and timely sources of liquidity and financing for itself
or RESI; RESI’s ability to sell residential mortgage assets or
non-rental real estate owned on favorable terms or at all; AAMC's
ability to identify and acquire assets for RESI’s portfolio; RESI’s
ability to complete potential transactions in accordance with
anticipated terms and on a timely basis or at all; Altisource
Portfolio Solutions S.A. and its affiliates’ ability to effectively
perform its obligations under various agreements with RESI; the
failure of Main Street Renewal, LLC to effectively perform under
its property management agreement with RESI; and other risks and
uncertainties detailed in the “Risk Factors” and other sections
described from time to time in the Company’s current and future
filings with the Securities and Exchange Commission. The foregoing
list of factors should not be construed as exhaustive.
The statements made in this press release are current as of the
date of this press release only. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements or any other information contained herein, whether as a
result of new information, future events or otherwise.
|
Altisource Asset Management
CorporationCondensed Consolidated Statements of
Operations(In thousands, except share and per
share amounts)(Unaudited) |
|
|
Three months ended June 30, 2017 |
|
Three months ended June 30, 2016 |
|
Six months ended June 30, 2017 |
|
Six months ended June 30, 2016 |
Revenues: |
|
|
|
|
|
|
|
Management fees from
RESI |
$ |
3,999 |
|
|
$ |
4,506 |
|
|
$ |
8,210 |
|
|
$ |
8,630 |
|
Conversion fees from
RESI |
434 |
|
|
544 |
|
|
1,038 |
|
|
946 |
|
Expense reimbursements
from RESI |
210 |
|
|
357 |
|
|
406 |
|
|
357 |
|
Total
revenues |
4,643 |
|
|
5,407 |
|
|
9,654 |
|
|
9,933 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
5,281 |
|
|
4,385 |
|
|
9,968 |
|
|
8,594 |
|
Legal and professional
fees |
336 |
|
|
542 |
|
|
1,020 |
|
|
1,083 |
|
General and
administrative |
726 |
|
|
1,170 |
|
|
1,883 |
|
|
2,191 |
|
Total
expenses |
6,343 |
|
|
6,097 |
|
|
12,871 |
|
|
11,868 |
|
Other
income: |
|
|
|
|
|
|
|
Dividend income on RESI
common stock |
243 |
|
|
244 |
|
|
487 |
|
|
536 |
|
Other income |
15 |
|
|
58 |
|
|
27 |
|
|
60 |
|
Total
other income |
258 |
|
|
302 |
|
|
514 |
|
|
596 |
|
Loss before income
taxes |
(1,442 |
) |
|
(388 |
) |
|
(2,703 |
) |
|
(1,339 |
) |
Income tax expense |
300 |
|
|
873 |
|
|
357 |
|
|
862 |
|
Net
loss |
$ |
(1,742 |
) |
|
$ |
(1,261 |
) |
|
$ |
(3,060 |
) |
|
$ |
(2,201 |
) |
Amortization of
preferred stock issuance costs |
(51 |
) |
|
(52 |
) |
|
(103 |
) |
|
(104 |
) |
Net loss
attributable to common stockholders |
$ |
(1,793 |
) |
|
$ |
(1,313 |
) |
|
$ |
(3,163 |
) |
|
$ |
(2,305 |
) |
|
|
|
|
|
|
|
|
Loss per share
of common stock – basic: |
|
|
|
|
|
|
|
Loss per basic
share |
$ |
(1.15 |
) |
|
$ |
(0.74 |
) |
|
$ |
(2.03 |
) |
|
$ |
(1.22 |
) |
Weighted average common
stock outstanding – basic |
1,563,272 |
|
|
1,776,831 |
|
|
1,554,462 |
|
|
1,883,322 |
|
|
|
|
|
|
|
|
|
Loss per share
of common stock – diluted: |
|
|
|
|
|
|
|
Loss per diluted
share |
$ |
(1.15 |
) |
|
$ |
(0.74 |
) |
|
$ |
(2.03 |
) |
|
$ |
(1.22 |
) |
Weighted average common
stock outstanding – diluted |
1,563,272 |
|
|
1,776,831 |
|
|
1,554,462 |
|
|
1,883,322 |
|
|
Altisource Asset Management
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts) |
|
|
June 30, 2017 |
|
December 31, 2016 |
|
(Unaudited) |
|
|
Assets: |
|
|
|
Cash and cash
equivalents |
$ |
31,652 |
|
|
$ |
40,584 |
|
Available-for-sale
securities (RESI common stock) |
21,021 |
|
|
17,934 |
|
Related party
receivables |
4,933 |
|
|
5,266 |
|
Prepaid expenses and
other assets |
2,857 |
|
|
1,964 |
|
Total
assets |
$ |
60,463 |
|
|
$ |
65,748 |
|
|
|
|
|
Liabilities: |
|
|
|
Accrued salaries and
employee benefits |
$ |
2,821 |
|
|
$ |
4,100 |
|
Accounts payable and
other accrued liabilities |
2,109 |
|
|
4,587 |
|
Total
liabilities |
4,930 |
|
|
8,687 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Redeemable
preferred stock: |
|
|
|
Preferred stock, $0.01
par value, 250,000 shares issued and outstanding as of June 30,
2017 and December 31, 2016; redemption value $250,000 |
249,443 |
|
|
249,340 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock, $0.01 par
value, 5,000,000 authorized shares; 2,784,454 and 1,572,237 shares
issued and outstanding, respectively, as of June 30, 2017 and
2,637,629 and 1,513,912 shares issued and outstanding,
respectively, as of December 31, 2016 |
28 |
|
|
26 |
|
Additional paid-in
capital |
34,833 |
|
|
30,696 |
|
Retained earnings |
42,982 |
|
|
46,145 |
|
Accumulated other
comprehensive income (loss) |
261 |
|
|
(2,662 |
) |
Treasury stock, at
cost, 1,212,217 shares as of June 30, 2017 and 1,123,717 shares as
of December 31, 2016 |
(272,014 |
) |
|
(266,484 |
) |
Total
stockholders' deficit |
(193,910 |
) |
|
(192,279 |
) |
Total liabilities and equity |
$ |
60,463 |
|
|
$ |
65,748 |
|
FOR FURTHER INFORMATION CONTACT:
Robin N. Lowe
Chief Financial Officer
T: 1-345-815-9919
E: Robin.Lowe@AltisourceAMC.com
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