Altisource Asset Management Corporation Reports Fourth Quarter and Full Year 2017 Results
March 01 2018 - 7:30AM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE MKT:AAMC) today announced financial and operating results for
the fourth quarter and full year of 2017.
Fourth Quarter 2017 Highlights and
Recent Developments
- Managed the name change of Altisource Residential Corporation
to Front Yard Residential Corporation (“Front Yard”).
- Negotiated the acquisition of 1,957 homes by Front Yard from
Amherst Holdings, LLC, increasing Front Yard's rental portfolio to
11,975 homes, of which 98% were stabilized.
- Executed Front Yard's sale of 322 mortgage loans, leaving 111
loans with a carrying value of $11.5 million at December 31, 2017
remaining in its portfolio.
- Managed Front Yard's sale of 325 non-rental REO properties,
leaving it with 490 legacy properties under evaluation for rental
or sale with a carrying value of $110.1 million at year end
2017.
- Maintained Front Yard's strong operating metrics: Stabilized
Rental Net Operating Income Margin was 64.9%, Stabilized Rental
Core Funds from Operations was $0.15 per diluted share and 93% of
stabilized rentals were leased at December 31, 2017.
Full Year 2017 Highlights
- Increased Front Yard's rental portfolio by 3,372 homes, a 39%
increase from December 31, 2016.
- Improved Front Yard's rental revenue by 155% over 2016 to
$123.6 million.
- Executed the disposal of substantially all of Front Yard's
mortgage loans, reducing its portfolio by 96% from 3,474 loans at
December 31, 2016 to 111 loans.
- Managed Front Yard's sale of 1,710 legacy REO properties,
reducing its portfolio of legacy REO properties by 75% from 1,930
properties at December 31, 2016 to 490 at December 31, 2017.
- Completed repurchases of $5 million of AAMC stock, bringing
total repurchases under the repurchase program to $265.5
million.
- Continued to extend Front Yard's debt maturities: 77% of debt
funding was over 3.9 years at December 31, 2017 compared to 46% at
December 31, 2016.
“During 2017, we continued to deliver on Front Yard's strategic
objectives,” stated Chief Executive Officer George Ellison. “We
completed the sale of most of Front Yard's legacy assets, achieved
strong growth in its rental portfolio and significantly improved
its operating metrics. We expect our continued execution of Front
Yard's strategic objectives will build value for AAMC's
stockholders in the long term.”
Fourth Quarter and Full Year 2017 Financial
Results
Net loss attributable to stockholders for the fourth quarter of
2017 totaled $1.8 million, or $1.15 per diluted share, compared to
a net loss attributable to stockholders of $1.7 million, or $1.09
per diluted share, for the fourth quarter of 2016. Net loss
attributable to stockholders for the year ended December 31, 2017
totaled $7.0 million, or $4.57 per diluted share, compared to net
loss attributable to stockholders of $4.9 million, or $2.93 per
diluted share, for the year ended December 31, 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
Front Yard's ability to compete; Front Yard’s ability to implement
its 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 Front Yard; Front Yard’s ability to sell residential
mortgage assets on favorable terms or at all; AAMC's ability to
identify and acquire assets for Front Yard’s portfolio; Front
Yard’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 Front Yard;
the failure of Main Street Renewal, LLC to effectively perform
under its property management agreement with Front Yard; 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
CorporationConsolidated Statements of
Operations(In thousands, except share and per share
amounts) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Management fees from
Front Yard |
$ |
3,834 |
|
|
$ |
4,496 |
|
|
$ |
16,010 |
|
|
$ |
17,334 |
|
Conversion fees from
Front Yard |
90 |
|
|
445 |
|
|
1,291 |
|
|
1,841 |
|
Expense reimbursements
from Front Yard |
153 |
|
|
263 |
|
|
859 |
|
|
816 |
|
Total
revenues |
4,077 |
|
|
5,204 |
|
|
18,160 |
|
|
19,991 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
4,390 |
|
|
4,315 |
|
|
19,393 |
|
|
17,369 |
|
Legal and professional
fees |
875 |
|
|
670 |
|
|
2,794 |
|
|
2,173 |
|
General and
administrative |
659 |
|
|
1,429 |
|
|
3,320 |
|
|
4,772 |
|
Total
expenses |
5,924 |
|
|
6,414 |
|
|
25,507 |
|
|
24,314 |
|
Other
income: |
|
|
|
|
|
|
|
Dividend income on
Front Yard common stock |
244 |
|
|
243 |
|
|
975 |
|
|
1,023 |
|
Other income |
43 |
|
|
7 |
|
|
111 |
|
|
71 |
|
Total
other income |
287 |
|
|
250 |
|
|
1,086 |
|
|
1,094 |
|
Loss before income
taxes |
(1,560 |
) |
|
(960 |
) |
|
(6,261 |
) |
|
(3,229 |
) |
Income tax expense |
224 |
|
|
703 |
|
|
708 |
|
|
1,706 |
|
Net loss
attributable to stockholders |
(1,784 |
) |
|
(1,663 |
) |
|
(6,969 |
) |
|
(4,935 |
) |
Amortization of
preferred stock issuance costs |
(51 |
) |
|
(52 |
) |
|
(206 |
) |
|
(207 |
) |
Net loss
attributable to common stockholders |
$ |
(1,835 |
) |
|
$ |
(1,715 |
) |
|
$ |
(7,175 |
) |
|
$ |
(5,142 |
) |
|
|
|
|
|
|
|
|
Loss per share
of common stock – basic: |
|
|
|
|
|
|
|
Loss per basic
share |
$ |
(1.15 |
) |
|
$ |
(1.09 |
) |
|
$ |
(4.57 |
) |
|
$ |
(2.93 |
) |
Weighted average common
stock outstanding – basic |
1,595,272 |
|
|
1,568,637 |
|
|
1,570,428 |
|
|
1,752,302 |
|
Loss per share
of common stock – diluted: |
|
|
|
|
|
|
|
Loss per diluted
share |
$ |
(1.15 |
) |
|
$ |
(1.09 |
) |
|
$ |
(4.57 |
) |
|
$ |
(2.93 |
) |
Weighted average common
stock outstanding – diluted |
1,595,272 |
|
|
1,568,637 |
|
|
1,570,428 |
|
|
1,752,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altisource Asset Management
CorporationConsolidated Balance Sheets(In
thousands, except share and per share amounts) |
|
December 31, 2017 |
|
December 31, 2016 |
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
33,349 |
|
|
$ |
40,584 |
|
Short-term
investments |
625 |
|
|
— |
|
Available-for-sale
securities (Front Yard common stock) |
19,266 |
|
|
17,934 |
|
Receivable from Front
Yard |
4,151 |
|
|
5,266 |
|
Prepaid expenses and
other assets |
1,022 |
|
|
1,964 |
|
Total
current assets |
58,413 |
|
|
65,748 |
|
Other non-current
assets |
1,974 |
|
|
— |
|
Total assets |
$ |
60,387 |
|
|
$ |
65,748 |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accrued salaries and
employee benefits |
$ |
5,651 |
|
|
$ |
4,100 |
|
Accounts payable and
accrued liabilities |
2,085 |
|
|
4,587 |
|
Total
liabilities |
7,736 |
|
|
8,687 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Redeemable
preferred stock: |
|
|
|
Series A preferred
stock, $0.01 par value, 250,000 shares issued and outstanding as of
December 31, 2017 and 2016; redemption value $250,000 |
249,546 |
|
|
249,340 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock, $.01 par
value, 5,000,000 authorized shares; 2,815,122 and 1,599,210 shares
issued and outstanding, respectively, as of December 31, 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 |
37,765 |
|
|
30,696 |
|
Retained earnings |
38,970 |
|
|
46,145 |
|
Accumulated other
comprehensive loss |
(1,330 |
) |
|
(2,662 |
) |
Treasury stock, at
cost, 1,215,912 and 1,123,717 shares as of December 31, 2017 and
2016, respectively |
(272,328 |
) |
|
(266,484 |
) |
Total stockholders'
deficit |
(196,895 |
) |
|
(192,279 |
) |
Total
liabilities and equity |
$ |
60,387 |
|
|
$ |
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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