BALTIMORE, Nov. 9, 2018 /PRNewswire/ -- MMA Capital
Management, LLC (NASDAQ: MMAC) ("MMA Capital" or
"the Company") today reported financial results for the
quarter ended September 30, 2018,
including common shareholders' equity of $193.5 million, or $32.96 per share of diluted common shareholders'
equity ("Book Value"). The Company filed its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2018 (the "Third Quarter 2018
Report") with the Securities and Exchange Commission
("SEC") earlier today and will hold an investor call on
Monday, November 12, 2018, at 8:30
a.m. EST.
Common shareholders' equity increased from $186.7 million at June 30,
2018 to $193.5 million at
September 30, 2018. This change
was driven by $5.3 million in
comprehensive income that was allocable to common shareholders and
by $1.6 million of other increases in
common shareholders' equity. Book Value per share increased
$0.94 per share in the third quarter
of 2018 to $32.96 at September 30, 2018.
We recognized comprehensive income that was allocable to common
shareholders of $5.3 million in the
third quarter of 2018, which consisted of $8.6 million of net income that was allocable to
common shareholders and $3.3 million
of other comprehensive loss that was allocable to common
shareholders. In comparison, we recognized $10.0 million of comprehensive income that was
allocable to common shareholders during the third quarter of 2017,
which consisted of $9.9 million of
net income that was allocable to common shareholders and
$0.1 million of other comprehensive
income that was allocable to common shareholders. Net income that
we recognized in the third quarter of 2018 was primarily driven by
net interest income, net gains on bonds and equity in income from
unconsolidated funds and ventures. Other comprehensive loss
that we reported in the third quarter of 2018 was primarily
attributable to the reclassification of unrealized holding gains
out of accumulated other comprehensive income ("AOCI") and
into our Consolidated Statements of Operations due to the sale of
certain bond investments. The impact of this reclassification
was partially offset by net unrealized holding gains that we
recognized in AOCI during the third quarter in connection with our
Bond Portfolio.
Michael Falcone, MMA Capital's
Chief Executive Officer stated, "The Company had another solid
quarter with a 3% increase in Book Value per share and we were able
to put approximately $18 million of
cash to work through increased investment in the solar ventures
during the quarter, thus taking advantage of the prior quarter
transaction related to the buyout of one of our investment
partners. In addition, in early October, Hunt exercised its option
and subsequently completed its acquisition of the MGM LIHTC
business. As a result of that transaction, we expect to
recognize an estimated $14 million
increase in common shareholders' equity, or approximately
$2.35 per share based upon diluted
shares outstanding at September 30,
2018, in the fourth quarter and the full impact of the Hunt
transaction will be realized in our financial statements.
With the final element of the Hunt transaction completed, we
are focused on creating and maintaining the optimal investment mix
in the current business environment, and in that regard, we
continue to see greater opportunity to add to our Energy Capital
portfolio. In order to fund that additional investment in the
renewable lending space, we may be opportunistic and monetize some
of our leveraged bond investments in an effort to take advantage of
this market opportunity.
"In addition, the Board approved an extension of the 2018
buyback program earlier this week by 31,250 shares, which increased
the total amount of authorized shares to be repurchased to 218,750
shares, as well as increased the maximum price to be paid to
$32.96 per share. The Company
has purchased 187,500 shares year-to-date at an average price of
$27.25 per share. Historically, share
buybacks have been accretive and, therefore, have helped drive
growth in Book Value per share. On a cumulative basis over
the past six years, we have bought back over 3.2 million shares at
an average price of approximately $13.51. We may continue using buybacks to
be opportunistic in periods of significant disconnect between our
Book Value per share and trading price, similar to today's
environment, but the long-term sustainability of the Company will
continue to be driven by our future investments in real estate and
infrastructure, particularly in renewable energy, as we focus on
growing the business in the coming years."
Conference Call Information
The conference call with investors will be webcast. All
interested parties are welcome to join the live webcast, which can
be accessed through the Company's web site at
www.mmacapitalmanagement.com (refer to the Shareholder
Relations tab of our website for more information).
Participants may also join the conference call by dialing
toll free 1-888-346-6987 or 1-412-902-4268 for international
participants and 1-855-669-9657 for Canadian participants.
For purposes of the conference call, the Company will reference
select tables from Item 2 of the Third Quarter 2018 Report
(Management's Discussion & Analysis). In addition, the
Company may reference our Investor Presentation for the period
ended September 30, 2018 which will
be published on the Company's website prior to the start of the
conference call on Monday, November 12,
2018.
An archived replay of the event will be available one hour after
the event through November 19, 2018,
toll free at 1-877-344-7529, or 1-412-317-0088 for international
participants and 1-855-669-9658 for Canadian participants
(Passcode: 10125740).
About MMAC
MMA Capital primarily invests in debt associated with renewable
energy infrastructure and real estate. MMA Capital is externally
managed and advised by Hunt Investment Management, LLC, an
affiliate of Hunt Companies, Inc. For additional information about
MMA Capital Management, LLC (NASDAQ: MMAC), please visit MMA
Capital's website at www.mmacapitalmanagement.com. For
additional information about Hunt Investment Management, LLC,
please see its Form ADV and brochure (Part 2A of Form ADV)
available at https://www.adviserinfo.sec.gov.
Source: MMA Capital Management, LLC
Cautionary Statement Regarding
Forward-Looking Statements
This Release contains forward-looking statements intended to
qualify for the safe harbor contained in Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements often include words such as "may," "will," "should,"
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "seek," "would," "could," and similar words or are made
in connection with discussions of future operating or financial
performance.
Forward-looking statements reflect our management's
expectations at the date of this Release regarding future
conditions, events or results. They are not guarantees of future
performance. By their nature, forward-looking statements are
subject to risks and uncertainties. Our actual results and
financial condition may differ materially from what is anticipated
in the forward-looking statements. There are many factors that
could cause actual conditions, events or results to differ from
those anticipated by the forward-looking statements contained in
this Release. These factors include changes in market conditions
that affect the willingness of potential investors or lenders to
provide us with debt or equity, changes in market conditions that
affect the value or marketability of assets we own, changes in
market conditions or other factors that affect our access to cash
that we may need to meet our commitments to other persons, changes
in interest rates or other conditions that affect the value of
mortgage loans we have made, changes in interest rates that affect
our cost of funds, tax laws, environmental laws or other conditions
that affect the value of the real estate underlying mortgage loans
we own, and changes in tax laws or other things beyond our control
that affect the tax benefits available to us and our investors.
Readers are cautioned not to place undue reliance on
forward-looking statements. We have not undertaken to update any
forward-looking statements in this Release.
MMA CAPITAL MANAGEMENT: INTEGRITY. INNOVATION.
SERVICE.
www.mmacapitalmanagement.com
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SOURCE MMA Capital Management, LLC