Altisource Asset Management Corporation Reports Third Quarter 2017 Results; Strong Progress on RESI's Strategic Objectives
November 07 2017 - 7:30AM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE MKT:AAMC) today announced financial and operating results for
the third quarter of 2017.
Third Quarter 2017 Highlights and Recent
Developments
- Represented Altisource Residential Corporation (“RESI”) in
confirming the portfolio of 1,750 to 2,000 single-family rental
homes comprising the final closing under RESI’s previously
announced agreement to acquire up to 3,500 rental homes from
entities sponsored by Amherst Holdings, LLC.1
- Advised RESI in awarding a sale of up to 365 mortgage loans to
a third party, leaving only 66 legacy loans in its portfolio.2
- Sold 450 non-rental REO properties for RESI, reducing the
number of non-rental REOs by 30% over the prior quarter.
- Continued to improve RESI’s operating metrics: Stabilized
Rental Net Operating Income Margin improved to 65.8%, Stabilized
Rental Core Funds from Operations improved to $0.15 per diluted
share and stabilized occupancy was 93%.
“We continue to make strong progress on RESI’s strategic
objectives,” stated Chief Executive Officer, George Ellison.
“RESI’s legacy asset disposal is on track, we are executing on new
rental home acquisitions and we are delivering strong and improving
operating metrics. We continue to believe that RESI’s success will
position AAMC for future success.”
Third Quarter 2017 Financial Results
AAMC’s net loss attributable to common stockholders for the
third quarter of 2017 was $2.2 million, or $1.38 per diluted share,
compared to $1.1 million, or $0.67 per diluted share, for the third
quarter of 2016. Net loss attributable to common stockholders for
the nine months ended September 30, 2017 was $5.3 million, or $3.42
per diluted share, compared to $3.4 million, or $1.89 per diluted
share, for the nine months ended September 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.
______________________
1 |
|
Closing is
scheduled to occur in the fourth quarter of 2017 and is subject to
continuing due diligence, inspection of homes and finalization of
pricing and transaction documentation. |
2 |
|
Closing is
scheduled to occur in November 2017, subject to execution of a
definitive purchase agreement and completion of final due
diligence. Certain loans may not be sold in the closing due to
their conversion to REO and diligence findings; therefore, the
total number of sold loans may be less than 365. |
|
|
|
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 September 30,
2017 |
|
Three months ended September 30,
2016 |
|
Nine months ended September 30,
2017 |
|
Nine months ended September 30,
2016 |
Revenues: |
|
|
|
|
|
|
|
Management fees from
RESI |
$ |
3,966 |
|
|
$ |
4,208 |
|
|
$ |
12,176 |
|
|
$ |
12,838 |
|
Conversion fees from
RESI |
163 |
|
|
450 |
|
|
1,201 |
|
|
1,396 |
|
Expense reimbursements
from RESI |
300 |
|
|
196 |
|
|
706 |
|
|
553 |
|
Total
revenues |
4,429 |
|
|
4,854 |
|
|
14,083 |
|
|
14,787 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
5,035 |
|
|
4,460 |
|
|
15,003 |
|
|
13,054 |
|
Legal and professional
fees |
899 |
|
|
420 |
|
|
1,919 |
|
|
1,503 |
|
General and
administrative |
778 |
|
|
1,152 |
|
|
2,661 |
|
|
3,343 |
|
Total
expenses |
6,712 |
|
|
6,032 |
|
|
19,583 |
|
|
17,900 |
|
Other
income: |
|
|
|
|
|
|
|
Dividend income on RESI
common stock |
244 |
|
|
244 |
|
|
731 |
|
|
780 |
|
Other income |
41 |
|
|
4 |
|
|
68 |
|
|
64 |
|
Total
other income |
285 |
|
|
248 |
|
|
799 |
|
|
844 |
|
Loss before income
taxes |
(1,998 |
) |
|
(930 |
) |
|
(4,701 |
) |
|
(2,269 |
) |
Income tax expense |
127 |
|
|
141 |
|
|
484 |
|
|
1,003 |
|
Net
loss |
(2,125 |
) |
|
(1,071 |
) |
|
(5,185 |
) |
|
(3,272 |
) |
Amortization of
preferred stock issuance costs |
(52 |
) |
|
(51 |
) |
|
(155 |
) |
|
(155 |
) |
Net loss
attributable to common stockholders |
$ |
(2,177 |
) |
|
$ |
(1,122 |
) |
|
$ |
(5,340 |
) |
|
$ |
(3,427 |
) |
|
|
|
|
|
|
|
|
Loss per share
of common stock – basic: |
|
|
|
|
|
|
|
Loss per basic
share |
$ |
(1.38 |
) |
|
$ |
(0.67 |
) |
|
$ |
(3.42 |
) |
|
$ |
(1.89 |
) |
Weighted average common
stock outstanding – basic |
1,574,822 |
|
|
1,676,651 |
|
|
1,562,056 |
|
|
1,813,929 |
|
|
|
|
|
|
|
|
|
Loss per share
of common stock – diluted: |
|
|
|
|
|
|
|
Loss per diluted
share |
$ |
(1.38 |
) |
|
$ |
(0.67 |
) |
|
$ |
(3.42 |
) |
|
$ |
(1.89 |
) |
Weighted average common
stock outstanding – diluted |
1,574,822 |
|
|
1,676,651 |
|
|
1,562,056 |
|
|
1,813,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Altisource Asset Management
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts) |
|
|
September 30, 2017 |
|
December 31, 2016 |
|
(Unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
32,813 |
|
|
$ |
40,584 |
|
Available-for-sale
securities (RESI common stock) |
18,048 |
|
|
17,934 |
|
Receivable from
RESI |
4,680 |
|
|
5,266 |
|
Prepaid expenses and
other assets |
3,168 |
|
|
1,964 |
|
Total
assets |
$ |
58,709 |
|
|
$ |
65,748 |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accrued salaries and
employee benefits |
$ |
4,428 |
|
|
$ |
4,100 |
|
Accounts payable and
other accrued liabilities |
2,016 |
|
|
4,587 |
|
Total
liabilities |
6,444 |
|
|
8,687 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Redeemable
preferred stock: |
|
|
|
Preferred stock, $0.01
par value, 250,000 shares issued and outstanding as of September
30, 2017 and December 31, 2016; redemption value $250,000 |
249,495 |
|
|
249,340 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock, $0.01 par
value, 5,000,000 authorized shares; 2,795,830 and 1,583,613 shares
issued and outstanding, respectively, as of September 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 |
36,499 |
|
|
30,696 |
|
Retained earnings |
40,805 |
|
|
46,145 |
|
Accumulated other
comprehensive loss |
(2,548 |
) |
|
(2,662 |
) |
Treasury stock, at
cost, 1,212,217 shares as of September 30, 2017 and 1,123,717
shares as of December 31, 2016 |
(272,014 |
) |
|
(266,484 |
) |
Total
stockholders' deficit |
(197,230 |
) |
|
(192,279 |
) |
Total
liabilities and equity |
$ |
58,709 |
|
|
$ |
65,748 |
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATION CONTACT:Robin N.
LoweChief Financial OfficerT: +1-345-815-9919E:
Robin.Lowe@AltisourceAMC.com
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