United States Virgin Islands | 000-54809 | 66-0783125 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Exhibit No. | Description | |
Exhibit 99.1 | Press Release of Altisource Asset Management Corporation dated March 2, 2015 |
Altisource Asset Management Corporation | ||
March 2, 2015 | By: | /s/ Stephen H. Gray |
Stephen H. Gray General Counsel and Secretary |
FOR IMMEDIATE RELEASE | |
FOR FURTHER INFORMATION CONTACT: Robin N. Lowe Chief Financial Officer T: 1-345-815-9919 E: Robin.Lowe@AltisourceAMC.com |
• | Accrued incentive management fees from Residential of $23.8 million as a result of the $0.55 per share dividend declared by Residential to its shareholders including $4.3 million of accrued incentive fees based on a potential post-year end special dividend by Residential intended to distribute 100% of its 2014 REIT taxable income. |
• | Managed the completion of Residential’s second non-performing loan securitization transaction in November 2014. |
• | Facilitated Residential’s realization of net proceeds from asset dispositions of $98.6 million representing an unlevered gain of 29%. |
• | Managed Residential's acquisition of 287 NPLs and real estate owned properties having an aggregate market value of $46.7 million. |
• | Earned incentive management fees of $67.9 million. |
• | Managed Residential’s resolution of an aggregate of 4,923 mortgage loans, including 3,682 REO conversions, in 2014 versus 510 mortgage loans in 2013, representing an increase of 865%. |
• | Facilitated Residential’s realization of net proceeds from asset dispositions of $233.9 million representing an unlevered gain of 31%. |
• | Managed an increase in Residential’s maximum aggregate borrowing capacity to $1.6 billion, including securitizations, versus $750.0 million at the end of 2013. |
• | Continued to build AAMC’s management team with the appointment of George Ellison as Chief Executive Officer and Ashish Pandey as Executive Chairman. |
• | Added two new mortgage loan servicers for Residential. Residential transferred $485 million of unpaid principal balance to Fay Servicing on February 28, 2015 and is in the process of transferring an additional $585 million of unpaid principal balance to BSI Financial Services in April 2015. |
• | Increased the number of properties in Residential’s rental portfolio to 653 as of February 28, 2015; renting properties at a rate of 82 per month in 2015 versus 40 per month in the second half of 2014 |
Three months ended December 31, 2014 | Three months ended December 31, 2013 | Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 845 | $ | 30 | $ | 1,564 | $ | 36 | |||||||
Net unrealized gain on mortgage loans | 91,924 | 35,129 | 350,822 | 61,092 | |||||||||||
Net realized gain on mortgage loans | 21,899 | 6,467 | 55,766 | 10,482 | |||||||||||
Net realized gain on re-performing mortgage loans | 2,469 | — | 2,771 | — | |||||||||||
Net realized gain on real estate | 4,938 | — | 9,482 | — | |||||||||||
Interest income | 136 | 319 | 2,893 | 687 | |||||||||||
Total revenues | 122,211 | 41,945 | 423,298 | 72,297 | |||||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 12,468 | 492 | 26,018 | 767 | |||||||||||
Real estate depreciation and amortization | 603 | 21 | 1,067 | 25 | |||||||||||
Real estate selling costs and impairment | 13,013 | (26 | ) | 21,788 | 184 | ||||||||||
Mortgage loan servicing costs | 18,593 | 6,630 | 68,181 | 10,418 | |||||||||||
Interest expense | 11,295 | 3,405 | 35,647 | 4,568 | |||||||||||
General and administrative | 4,313 | 7,467 | 19,891 | 18,265 | |||||||||||
Related party general and administrative | 888 | 2,715 | 5,485 | 3,767 | |||||||||||
Total expenses | 61,173 | 20,704 | 178,077 | 37,994 | |||||||||||
Other income (expense) | 3,035 | 6 | 5,407 | — | |||||||||||
Income before income taxes | 64,073 | 21,247 | 250,628 | 34,303 | |||||||||||
Income tax expense | 668 | — | 2,096 | — | |||||||||||
Net income | 63,405 | 21,247 | 248,532 | 34,303 | |||||||||||
Net income attributable to noncontrolling interest in consolidated affiliate | (41,482 | ) | (21,644 | ) | (188,853 | ) | (39,596 | ) | |||||||
Net income attributable to common stockholders | $ | 21,923 | $ | (397 | ) | $ | 59,679 | $ | (5,293 | ) | |||||
Earnings per share of common stock – basic: | |||||||||||||||
Earnings per basic share | $ | 9.99 | $ | (0.17 | ) | $ | 26.31 | $ | (2.26 | ) | |||||
Weighted average common stock outstanding – basic | 2,189,318 | 2,346,993 | 2,261,968 | 2,346,993 | |||||||||||
Earnings per share of common stock – diluted: | |||||||||||||||
Earnings per diluted share | $ | 7.92 | $ | (0.17 | ) | $ | 21.07 | $ | (2.26 | ) | |||||
Weighted average common stock outstanding – diluted | 2,768,300 | 2,346,993 | 2,832,188 | 2,346,993 |
December 31, 2014 | December 31, 2013 | ||||||
Assets: | |||||||
Real estate held for use: | |||||||
Land (from consolidated VIE) | $ | 14,424 | $ | 478 | |||
Rental residential properties (net of accumulated depreciation of $1,062 and $24, respectively - from consolidated VIE) | 60,908 | 3,092 | |||||
Real estate owned (from consolidated VIE) | 457,045 | 32,332 | |||||
Total real estate held for use, net | 532,377 | 35,902 | |||||
Real estate assets held for sale (from consolidated VIE) | 92,230 | 1,186 | |||||
Mortgage loans at fair value (from consolidated VIE) | 1,959,044 | 1,207,163 | |||||
Mortgage loans held for sale (from consolidated VIE) | 12,535 | — | |||||
Cash and cash equivalents (including from consolidated VIE $66,166 and $115,988, respectively) | 116,782 | 140,000 | |||||
Restricted cash (from consolidated VIE) | 13,282 | 5,878 | |||||
Accounts receivable (including from consolidated VIE $10,313 and $1,428, respectively) | 11,068 | 1,428 | |||||
Related party receivables (from consolidated VIE) | 17,491 | 9,260 | |||||
Deferred leasing and financing costs, net (from consolidated VIE) | 4,251 | 2,293 | |||||
Prepaid expenses and other assets (including from consolidated VIE $373 and $1,542, respectively) | 1,638 | 1,994 | |||||
Total assets | $ | 2,760,698 | $ | 1,405,104 | |||
Liabilities: | |||||||
Repurchase agreements (from consolidated VIE) | $ | 1,015,000 | $ | 602,382 | |||
Other secured borrowings (from consolidated VIE) | 324,082 | — | |||||
Accounts payable and accrued liabilities (including from consolidated VIE $11,678 and $4,952, respectively) | 16,726 | 6,872 | |||||
Related party payables (including from consolidated VIE $4,879 and $1,409, respectively) | 6,169 | 2,883 | |||||
Total liabilities | 1,361,977 | 612,137 | |||||
Commitments and contingencies | |||||||
Redeemable preferred stock: | |||||||
Preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of December 31, 2014 and none issued or outstanding as of December 31, 2013; redemption value $250,000 | 248,927 | — | |||||
Equity: | |||||||
Common stock, $.01 par value, 5,000,000 authorized shares; 2,452,101 and 2,188,136 shares issued and outstanding, respectively as of December 31, 2014 and 2,354,774 shares issued and outstanding as of December 31, 2013 | 25 | 24 | |||||
Additional paid-in capital | 14,152 | 12,855 | |||||
Retained earnings (accumulated deficit) | 54,174 | (5,339 | ) | ||||
Treasury stock, at cost, 263,965 shares as of December 31, 2014 and none as of December 31, 2013 | (245,468 | ) | — | ||||
Total stockholders' equity (deficit) | (177,117 | ) | 7,540 | ||||
Noncontrolling interest in consolidated affiliate | 1,326,911 | 785,427 | |||||
Total equity | 1,149,794 | 792,967 | |||||
Total liabilities and equity | $ | 2,760,698 | $ | 1,405,104 |
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 845 | $ | — | $ | — | $ | — | $ | 845 | |||||
Net unrealized gain on mortgage loans | 91,924 | — | — | — | 91,924 | ||||||||||
Net realized gain on mortgage loans | 21,899 | — | — | — | 21,899 | ||||||||||
Net realized gain on re-performing mortgage loans | 2,469 | — | — | — | 2,469 | ||||||||||
Net realized gain on real estate | 4,938 | — | — | — | 4,938 | ||||||||||
Interest income | 136 | 156 | — | (156 | ) | 136 | |||||||||
Incentive management fee | — | — | 23,820 | (23,820 | ) | — | |||||||||
Expense reimbursements | — | — | 1,431 | (1,431 | ) | — | |||||||||
Total revenues | 122,211 | 156 | 25,251 | (25,407 | ) | 122,211 | |||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 12,468 | — | — | — | 12,468 | ||||||||||
Real estate depreciation and amortization | 603 | — | — | — | 603 | ||||||||||
Real estate selling costs and impairment | 13,013 | — | — | — | 13,013 | ||||||||||
Mortgage loan servicing costs | 18,593 | — | — | — | 18,593 | ||||||||||
Interest expense | 11,460 | — | — | (165 | ) | 11,295 | |||||||||
General and administrative | 1,382 | 3,787 | (856 | ) | — | 4,313 | |||||||||
Related party general and administrative | 25,401 | 210 | 528 | (25,251 | ) | 888 | |||||||||
Total expenses | 82,920 | 3,997 | (328 | ) | (25,416 | ) | 61,173 | ||||||||
Other income | 2,160 | 3,030 | 5 | (2,160 | ) | 3,035 | |||||||||
Income before income taxes | 41,451 | (811 | ) | 25,584 | (2,151 | ) | 64,073 | ||||||||
Income tax expense | (31 | ) | — | 699 | — | 668 | |||||||||
Net income | 41,482 | (811 | ) | 24,885 | (2,151 | ) | 63,405 | ||||||||
Net income attributable to noncontrolling interest in consolidated affiliate | — | — | — | (41,482 | ) | (41,482 | ) | ||||||||
Net income attributable to common stockholders | $ | 41,482 | $ | (811 | ) | $ | 24,885 | $ | (43,633 | ) | $ | 21,923 |
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 1,564 | $ | — | $ | — | $ | — | $ | 1,564 | |||||
Net unrealized gain on mortgage loans | 350,822 | — | — | — | 350,822 | ||||||||||
Net realized gain on mortgage loans | 55,766 | — | — | — | 55,766 | ||||||||||
Net realized gain on re-performing mortgage loans | 2,771 | — | — | — | 2,771 | ||||||||||
Net realized gain on real estate | 9,482 | — | — | — | 9,482 | ||||||||||
Interest income | 2,893 | 156 | — | (156 | ) | 2,893 | |||||||||
Incentive management fee | — | — | 67,949 | (67,949 | ) | — | |||||||||
Expense reimbursements | — | — | 7,011 | (7,011 | ) | — | |||||||||
Total revenues | 423,298 | 156 | 74,960 | (75,116 | ) | 423,298 | |||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 26,018 | — | — | — | 26,018 | ||||||||||
Real estate depreciation and amortization | 1,067 | — | — | — | 1,067 | ||||||||||
Real estate selling costs and impairment | 21,788 | — | — | — | 21,788 | ||||||||||
Mortgage loan servicing costs | 68,181 | — | — | — | 68,181 | ||||||||||
Interest expense | 35,812 | — | — | (165 | ) | 35,647 | |||||||||
General and administrative | 7,047 | 4,168 | 8,676 | — | 19,891 | ||||||||||
Related party general and administrative | 77,030 | 941 | 2,474 | (74,960 | ) | 5,485 | |||||||||
Total expenses | 236,943 | 5,109 | 11,150 | (75,125 | ) | 178,077 | |||||||||
Other income | 2,543 | 5,015 | 9 | (2,160 | ) | 5,407 | |||||||||
Income before income taxes | 188,898 | 62 | 63,819 | (2,151 | ) | 250,628 | |||||||||
Income tax expense | 45 | — | 2,051 | — | 2,096 | ||||||||||
Net income | 188,853 | 62 | 61,768 | (2,151 | ) | 248,532 | |||||||||
Net income attributable to noncontrolling interest in consolidated affiliate | — | — | — | (188,853 | ) | (188,853 | ) | ||||||||
Net income attributable to common stockholders | $ | 188,853 | $ | 62 | $ | 61,768 | $ | (191,004 | ) | $ | 59,679 |
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 30 | $ | — | $ | — | $ | — | $ | 30 | |||||
Net unrealized gain on mortgage loans | 35,129 | — | — | — | 35,129 | ||||||||||
Net realized gain on mortgage loans | 6,467 | — | — | — | 6,467 | ||||||||||
Interest income | 319 | — | — | — | 319 | ||||||||||
Incentive management fee | — | — | 4,829 | (4,829 | ) | — | |||||||||
Expense reimbursements | — | — | 2,040 | (2,040 | ) | — | |||||||||
Total revenues | 41,945 | — | 6,869 | (6,869 | ) | 41,945 | |||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 492 | — | — | — | 492 | ||||||||||
Real estate depreciation and amortization | 21 | — | — | — | 21 | ||||||||||
Real estate selling costs and impairment | (26 | ) | — | — | — | (26 | ) | ||||||||
Mortgage loan servicing costs | 6,630 | — | — | — | 6,630 | ||||||||||
Interest expense | 3,405 | — | — | — | 3,405 | ||||||||||
General and administrative | 1,728 | 77 | 5,662 | — | 7,467 | ||||||||||
Related party general and administrative | 8,057 | — | 1,527 | (6,869 | ) | 2,715 | |||||||||
Total expenses | 20,307 | 77 | 7,189 | (6,869 | ) | 20,704 | |||||||||
Other income | 6 | — | — | — | 6 | ||||||||||
Net income (loss) | 21,644 | (77 | ) | (320 | ) | — | 21,247 | ||||||||
Net income attributable to noncontrolling interest in consolidated affiliate | — | — | — | (21,644 | ) | (21,644 | ) | ||||||||
Net income (loss) attributable to common stockholders | $ | 21,644 | $ | (77 | ) | $ | (320 | ) | $ | (21,644 | ) | $ | (397 | ) |
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 36 | $ | — | $ | — | $ | — | $ | 36 | |||||
Net unrealized gain on mortgage loans | 61,092 | — | — | — | 61,092 | ||||||||||
Net realized gain on mortgage loans | 10,482 | — | — | — | 10,482 | ||||||||||
Interest income | 687 | — | — | — | 687 | ||||||||||
Incentive management fee | — | — | 4,880 | (4,880 | ) | — | |||||||||
Expense reimbursements | — | — | 5,411 | (5,411 | ) | — | |||||||||
Total revenues | 72,297 | — | 10,291 | (10,291 | ) | 72,297 | |||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 767 | — | — | — | 767 | ||||||||||
Real estate depreciation and amortization | 25 | — | — | — | 25 | ||||||||||
Real estate selling costs and impairment | 184 | — | — | — | 184 | ||||||||||
Mortgage loan servicing costs | 10,418 | — | — | — | 10,418 | ||||||||||
Interest expense | 4,568 | — | — | — | 4,568 | ||||||||||
General and administrative | 4,208 | 77 | 13,980 | — | 18,265 | ||||||||||
Related party general and administrative | 12,531 | — | 1,527 | (10,291 | ) | 3,767 | |||||||||
Total expenses | 32,701 | 77 | 15,507 | (10,291 | ) | 37,994 | |||||||||
Other expense | — | — | — | — | — | ||||||||||
Net income (loss) | 39,596 | (77 | ) | (5,216 | ) | — | 34,303 | ||||||||
Net income attributable to noncontrolling interest in consolidated affiliate | — | — | — | (39,596 | ) | (39,596 | ) | ||||||||
Net income (loss) attributable to common stockholders | $ | 39,596 | $ | (77 | ) | $ | (5,216 | ) | $ | (39,596 | ) | $ | (5,293 | ) |
Residential (GAAP) | NewSource stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Assets: | |||||||||||||||
Real estate held for use: | |||||||||||||||
Land | $ | 14,424 | $ | — | $ | — | $ | — | $ | 14,424 | |||||
Rental residential properties, net | 60,908 | — | — | — | 60,908 | ||||||||||
Real estate owned | 457,045 | — | — | — | 457,045 | ||||||||||
Total real estate held for use, net | 532,377 | — | — | — | 532,377 | ||||||||||
Real estate assets held for sale | 92,230 | — | — | — | 92,230 | ||||||||||
Mortgage loans | 1,959,044 | — | — | — | 1,959,044 | ||||||||||
Mortgage loans held for sale | 12,535 | — | — | — | 12,535 | ||||||||||
Cash and cash equivalents | 66,166 | 6,026 | 44,590 | — | 116,782 | ||||||||||
Restricted cash | 13,282 | — | — | — | 13,282 | ||||||||||
Accounts receivable | 10,313 | 919 | 1 | (165 | ) | 11,068 | |||||||||
Related party receivables | 17,491 | 14,991 | 28,512 | (43,503 | ) | 17,491 | |||||||||
Investment in affiliate | 18,000 | — | 2,000 | (20,000 | ) | — | |||||||||
Deferred leasing and financing costs, net | 4,251 | — | — | — | 4,251 | ||||||||||
Prepaid expenses and other assets | 373 | 3 | 1,262 | — | 1,638 | ||||||||||
Total assets | $ | 2,726,062 | $ | 21,939 | $ | 76,365 | $ | (63,668 | ) | $ | 2,760,698 | ||||
Liabilities: | |||||||||||||||
Repurchase agreements | $ | 1,015,000 | $ | — | $ | — | $ | — | $ | 1,015,000 | |||||
Other secured borrowings | 339,082 | — | — | (15,000 | ) | 324,082 | |||||||||
Accounts payable and accrued liabilities | 11,678 | 3,173 | 2,040 | (165 | ) | 16,726 | |||||||||
Related party payables | 33,391 | 941 | 349 | (28,512 | ) | 6,169 | |||||||||
Total liabilities | 1,399,151 | 4,114 | 2,389 | (43,677 | ) | 1,361,977 | |||||||||
Commitments and contingencies | — | — | — | — | — | ||||||||||
Preferred stock | — | — | 248,927 | — | 248,927 | ||||||||||
Equity: | |||||||||||||||
Common stock | 572 | — | 25 | (572 | ) | 25 | |||||||||
Additional paid-in capital | 1,227,091 | 20,000 | 14,152 | (1,247,091 | ) | 14,152 | |||||||||
Retained earnings (accumulated deficit) | 99,248 | (2,175 | ) | 56,340 | (99,239 | ) | 54,174 | ||||||||
Treasury stock | — | — | (245,468 | ) | — | (245,468 | ) | ||||||||
Total stockholders' equity (deficit) | 1,326,911 | 17,825 | (174,951 | ) | (1,346,902 | ) | (177,117 | ) | |||||||
Noncontrolling interest in consolidated affiliate | — | — | — | 1,326,911 | 1,326,911 | ||||||||||
Total equity (deficit) | 1,326,911 | 17,825 | (174,951 | ) | (19,991 | ) | 1,149,794 | ||||||||
Total liabilities and equity | $ | 2,726,062 | $ | 21,939 | $ | 76,365 | $ | (63,668 | ) | $ | 2,760,698 |
Residential (GAAP) | NewSource stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||
Assets: | |||||||||||||||
Real estate held for use: | |||||||||||||||
Land | $ | 478 | $ | — | $ | — | $ | — | $ | 478 | |||||
Rental residential properties, net | 3,092 | — | — | — | 3,092 | ||||||||||
Real estate owned | 32,332 | — | — | — | 32,332 | ||||||||||
Total real estate held for use, net | 35,902 | — | — | — | 35,902 | ||||||||||
Real estate assets held for sale | 1,186 | — | — | — | 1,186 | ||||||||||
Mortgage loans | 1,207,163 | — | — | — | 1,207,163 | ||||||||||
Cash and cash equivalents | 115,988 | 19,923 | 4,089 | — | 140,000 | ||||||||||
Restricted cash | 5,878 | — | — | — | 5,878 | ||||||||||
Accounts receivable | 1,428 | — | — | — | 1,428 | ||||||||||
Related party receivables | 9,260 | — | 4,486 | (4,486 | ) | 9,260 | |||||||||
Investment in affiliate | 18,000 | — | 2,000 | (20,000 | ) | — | |||||||||
Deferred leasing and financing costs, net | 2,293 | — | — | — | 2,293 | ||||||||||
Prepaid expenses and other assets | 1,542 | — | 452 | — | 1,994 | ||||||||||
Total assets | $ | 1,398,640 | $ | 19,923 | $ | 11,027 | $ | (24,486 | ) | $ | 1,405,104 | ||||
Liabilities: | |||||||||||||||
Repurchase agreement | $ | 602,382 | $ | — | $ | — | $ | — | $ | 602,382 | |||||
Accounts payable and accrued liabilities | 4,952 | — | 1,920 | — | 6,872 | ||||||||||
Related party payables | 5,879 | — | 1,490 | (4,486 | ) | 2,883 | |||||||||
Total liabilities | 613,213 | — | 3,410 | (4,486 | ) | 612,137 | |||||||||
Commitments and contingencies | — | — | — | — | — | ||||||||||
Equity: | |||||||||||||||
Common stock | 423 | — | 24 | (423 | ) | 24 | |||||||||
Additional paid-in capital | 758,584 | 20,000 | 12,855 | (778,584 | ) | 12,855 | |||||||||
Retained earnings (accumulated deficit) | 26,420 | (77 | ) | (5,262 | ) | (26,420 | ) | (5,339 | ) | ||||||
Total stockholders' equity | 785,427 | 19,923 | 7,617 | (805,427 | ) | 7,540 | |||||||||
Noncontrolling interest in consolidated affiliate | — | — | — | 785,427 | 785,427 | ||||||||||
Total equity | 785,427 | 19,923 | 7,617 | (20,000 | ) | 792,967 | |||||||||
Total liabilities and equity | $ | 1,398,640 | $ | 19,923 | $ | 11,027 | $ | (24,486 | ) | $ | 1,405,104 |