MMA Muni Mtg & Equ Llc

MuniMae (NYSE: MMA) today announced unaudited financial results for the fourth quarter and full year 2005. Net earnings were $16.1 million ($.42 per diluted share) for the three months ended December 31, 2005, as compared to $17.1 million ($.48 per diluted share) for the fourth quarter of 2004, as restated. For the full year, net earnings were $85.8 million ($2.24 per diluted share) in 2005, as compared to $50.9 million ($1.46 per diluted share) in 2004, as restated. Cash available for distribution (CAD) was $29.8 million for the quarter and $95.7 million for the year ended December 31, 2005, an increase of 34% and 17%, respectively over the comparable amounts for 2004. On a per share basis, CAD was $.78 for the three months ended December 31, 2005, an increase of 24% over the fourth quarter of 2004. For the full year, CAD per share was a record $2.51, an increase of 8% over 2004 results. A reconciliation of CAD to net earnings is included in the accompanying financial table. The financial results described above are subject to the completion of the audit by the Company's independent registered public accountants, and are therefore subject to change. 2005 Highlights -- Closed $77 million of acquisitions. -- Originated $3.8 billion of new investments, an increase of $1.2 billion and 49% ahead of 2004 production. -- Increased tax credit equity syndications 15% to $1.3 billion making MuniMae the largest sponsor of tax credit equity investments in the United States. -- Generated $135 million of fee revenue (on a CAD basis), a 28% increase over 2004. -- Raised more than $250 million of capital through balanced issuances of common stock and preferred shares. In recognition of these outstanding achievements, the Company's Board of Directors approved the 36th consecutive increase in the quarterly distribution that was paid to shareholders on February 10, 2006. The distribution of $.4925 per share represents a 4% increase from the comparable distribution last year. On an annualized basis, the distribution equates to $1.97 per common share and represents a 7.5% yield based on the April 10, 2006 closing price of $26.35 per share. The stated yield does not give effect to any tax savings investors may realize from the portion of the distribution that is exempt from Federal income taxes. Commenting on the Company's strong performance, Michael L. Falcone, Chief Executive Officer stated, "We accomplished a great deal in 2005. We closed the acquisitions of MONY Realty Capital and Glaser Financial which significantly expanded the mortgage banking products we offer as well as the services we can provide to institutional investors. In addition, we reorganized our operations to improve profitability and client service for many years to come. With greater diversity of revenue sources, a more efficient operating platform and a distribution that represents a lower percentage of CAD, MuniMae is well positioned for continued growth over the long-term." Conference Call The Company will host a conference call to discuss these financial results at 9:00 am EST on April 12, 2006 which will be webcast. All interested parties are welcome to attend the live webcast which can be accessed through the "Shareholders" section of our website (www.munimae.com). The dial in number for the conference call is (877) 464-5945 (no password is required). About MuniMae MuniMae and its subsidiaries arrange debt and equity financing for developers of multifamily housing, and provide other real estate related investment management and advisory services. Assets under management are more than $16 billion secured by approximately 3,000 properties, containing 330,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. MuniMae is organized as a limited liability company, which allows it to combine the limited liability, governance and management characteristics of a corporation with the pass-through income features of a partnership. As a result, the tax-exempt income derived from certain investments remains tax-exempt when passed through to shareholders. Distributions to shareholders are normally declared quarterly. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of such statements in this press release include our prospects for improved profitability and future growth, and our unaudited financial results. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include completion of pending investments, continued ability to originate new investments, the mix of business between tax-exempt and taxable activities, the availability and cost of capital for future investments, competition within the finance and real estate industries, economic conditions, loss experience and other risks detailed from time to time in the Company's SEC reports. This press release does not constitute an offer to sell any securities of the Company or any other entity. -0- *T MUNIMAE: INTEGRITY. INNOVATION. SERVICE. www.MuniMae.com MUNICIPAL MORTGAGE & EQUITY, LLC CASH AVAILABLE FOR DISTRIBUTION (In thousands, except per share data) (Unaudited) For the three months For the year ended ended December 31, December 31, --------------------- --------------------- 2005 2004 2005 2004 --------- --------- --------- --------- CAD REVENUES: Interest on investments $ 38,755 $ 31,184 $ 141,009 $ 126,830 Syndication fees 25,745 21,319 55,135 51,852 Asset management and advisory fees 8,845 3,139 35,107 20,054 Origination and brokerage fees 7,236 4,032 18,025 12,651 Guarantee fees 5,880 4,857 13,393 11,852 Loan servicing fees 4,536 2,079 13,342 7,979 Distributions from equity investments in partnerships 1,424 2,299 10,456 8,178 Other income 5,153 3,073 13,375 8,385 Interest on short-term investments 3,082 1,288 6,712 5,178 --------- --------- --------- --------- TOTAL CAD REVENUES 100,656 73,270 306,554 252,959 --------- --------- --------- --------- CAD EXPENSES: Interest expense on debt 19,359 16,548 69,959 63,528 Interest expense on debentures and preferred shares 6,869 4,984 25,037 16,803 Salaries and benefits 29,096 14,543 87,049 64,286 Professional fees 3,887 4,057 11,048 10,294 General and administrative 7,290 5,175 21,751 16,523 Income tax expense 2,296 214 4,173 971 --------- --------- --------- --------- TOTAL CAD EXPENSES 68,797 45,521 219,017 172,405 --------- --------- --------- --------- Net gains (losses) 42 (4,795) 13,131 1,919 Dividends paid on preferred shares of subsidiaries 2,125 755 4,962 755 --------- --------- --------- --------- CASH AVAILABLE FOR DISTRIBUTION $ 29,776 $ 22,199 $ 95,706 $ 81,718 ========= ========= ========= ========= COMMON SHARES OUTSTANDING 38,207 35,183 ========= ========= CAD PER COMMON SHARE $ 0.78 $ 0.63 $ 2.51 $ 2.33 ========= ========= ========= ========= CASH DISTRIBUTION PER COMMON SHARE $ 0.4925 $ 0.4725 $ 1.9400 $ 1.8600 ========= ========= ========= ========= PAYOUT RATIO 63.2% 74.9% 77.1% 79.7% ========= ========= ========= ========= RECONCILIATION OF CAD TO NET INCOME: For the three months For the year ended ended December 31, December 31, --------------------- --------------------- (Restated) (Restated) 2005 2004 2005 2004 --------- ---------- --------- ---------- CASH AVAILABLE FOR DISTRIBUTION $ 29,776 $ 22,199 $ 95,706 $ 81,718 Adjustments to income due to the financing method and consolidation of tax credit funds (3,786) 376 (11,610) (8,679) Fees deferred for GAAP purposes (22,355) (10,606) (42,435) (26,904) Non-cash items 12,465 6,586 8,720 4,438 Adjustments for investments in partnerships - (1,651) 25,929 (8,994) Different carrying bases - 215 9,481 9,347 --------- --------- --------- --------- NET INCOME (unaudited) $ 16,100 $ 17,119 $ 85,791 $ 50,926 ========= ========= ========= ========= --------- --------- --------- --------- EARNINGS PER SHARE, DILUTED (unaudited) $ 0.42 $ 0.48 $ 2.24 $ 1.46 ========= ========= ========= ========= *T