UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 29, 2016
ALTISOURCE ASSET MANAGEMENT CORPORATION
(Exact name of Registrant as specified in its charter)
United States Virgin Islands | 000-54809 | 66-0783125 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
36C Strand Street
Christiansted, United States Virgin Islands 00820
(Address of principal executive offices including zip code)
(340) 692-1055
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On February 29, 2016, Altisource Asset Management Corporation issued a press release announcing financial results for its quarter and year ended December 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this Item 2.02, including the information in Exhibit 99.1, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. It may only be incorporated by reference in another filing under the Securities Exchange Act of 1934 or Securities Act of 1933 if such subsequent filing specifically references this Item 2.02 of this Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. | Description | |
Exhibit 99.1 | Press Release of Altisource Asset Management Corporation dated February 29, 2016 | |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Altisource Asset Management Corporation | ||
February 29, 2016 | By: | /s/ Stephen H. Gray |
Stephen H. Gray General Counsel and Secretary | ||
Exhibit 99.1
FOR IMMEDIATE RELEASE | |
FOR FURTHER INFORMATION CONTACT: Robin N. Lowe Chief Financial Officer T: 1-345-815-9919 E: Robin.Lowe@AltisourceAMC.com | |
Altisource Asset Management Corporation Reports Fourth Quarter and Full Year 2015 Results
CHRISTIANSTED, U.S. Virgin Islands, February 29, 2016 (GLOBE NEWSWIRE) - 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 2015.
Fourth Quarter 2015 Highlights
• | Increased rental portfolio of Altisource Residential Corporation (“Residential”) to 2,732 homes , including 2,118 rented properties, 264 listed and ready for rent and 350 properties under leasehold renovation and unit turn. |
• | Reduced Residential's non-performing mortgage loan (“NPL”) portfolio to 5,739 loans.1 |
• | Increased Residential’s estimated taxable income to $37.8 million, or $0.68 per share, from $10.4 million, or $0.18 per share in the third quarter of 2015. |
• | Managed the increase in Residential’s rental revenue to $5.7 million, representing a 41% increase over the third quarter of 2015. |
• | Facilitated Residential’s completion of the sale of 772 loans within approximately 1% of its balance sheet carrying value; unpaid principal balance (“UPB”) of the sold loans was $309.6 million, or approximately 15% of the total UPB in Residential’s loan portfolio. |
• | Negotiated Residential’s agreement to purchase a portfolio of 627 rental homes; expected to close in the first quarter of 2016.2 |
• | Expanded Residential’s One-by-One purchase program with 156 homes acquired or under contract in the fourth quarter in 9 MSAs. |
• | Completed repurchases of $2.7 million of AAMC common stock, bringing total AAMC stock repurchases under the Board-approved repurchase plan to $249.1 million. |
Full Year 2015 Highlights
• | Achieved estimated taxable income for Residential of $107.6 million and dividends with respect to 2015 taxable income of $1.90 per share, including the $0.15 per share special dividend announced by Residential today. |
• | Increased Residential’s rental portfolio to 2,732 homes as of December 31, 2015, representing an increase of 247% over the 787 properties in the rental portfolio as of December 31, 2014. |
• | Executed a new Asset Management Agreement with Residential that positions AAMC for sustainable growth. Total management fees paid to AAMC were $23.7 million in 2015. |
• | Facilitated Residential’s servicing transfer of 6,818 loans with an aggregate UPB of $1.7 billion to two new mortgage servicers. |
• | Following completed and pending NPL sales, substantially all of Residential’s unsecuritized loans will have been moved to new servicers. |
• | Negotiated the addition, amendment and extension of Residential’s repurchase and lending facilities and completed Residential's third NPL securitization, increasing Residential's financing capacity to $1.8 billion at December 31, 2015 versus $1.6 billion at December 31, 2014. |
Recent Developments
• | Negotiated Residential’s agreement to sell a portfolio of 1,266 NPLs within approximately 1% of balance sheet carrying value; UPB of the loans to be sold is $434.3 million, or approximately 24% of the year-end total UPB in Residential’s loan portfolio; the sale is expected to close in the first quarter of 2016.3 |
“In 2015, we substantially diversified Residential’s acquisition strategies in light of evolving economic conditions and higher pricing in the NPL marketplace, negotiating and completing many key capital markets and financing transactions for Residential throughout the year,” stated Chief Executive Officer George G. Ellison. “Although our asset management fees were lower in 2015 under the new Asset Management Agreement with Residential, we continue to believe the amended fee structure promotes the long-term stability of our client, further aligns our incentives with Residential’s mission, which is to become one of the preeminent single-family rental companies in the industry and, most importantly, better positions Residential and AAMC to provide long-term value to their respective shareholders. We believe that Residential’s ability to achieve its mission will be an important factor in AAMC’s future growth.”
_________________
1 | The 5,739 NPLs excludes 1,297 loans held for sale at December 31, 2015. |
2 | Definitive purchase agreement was executed in February 2016. Sale is subject to completion of due diligence and expected to close in the first quarter of 2016. |
3 | Sale is subject to completion of due diligence and final negotiation of definitive purchase agreement. Final purchase price is subject to final confirmation |
Fourth Quarter and Full Year 2015 Financial Results
Net loss attributable to stockholders for the fourth quarter of 2015 totaled $8.9 million, or $4.12 per diluted share, compared to net income attributable to stockholders of $21.9 million, or $7.92 per diluted share, for the fourth quarter of 2014. Net loss attributable to stockholders for the year ended December 31, 2015 totaled $3.3 million, or $1.59 per diluted share, compared to net income attributable to stockholders of $59.7 million, or $21.07 per diluted share, for the year ended December 31, 2014.
Webcast and Conference Call
The Company expects to host a webcast and conference call on Monday, February 29, 2016, at 10:00 a.m. Eastern Time to discuss its financial results for the fourth quarter and full year of 2015. The conference call will be webcast live over the internet from the Company’s website at www.altisourceamc.com and can be accessed by clicking on the “Shareholders” link.
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. Residential undertakes no obligation to update any forward-looking statements
whether as a result of new information, future events or otherwise. 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 Residential's ability to compete; Residential’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 Residential; Residential’s ability to sell residential mortgage assets on favorable terms; AAMC's ability to identify and acquire assets for Residential’s portfolio; Altisource Portfolio Solutions’ ability to effectively perform its obligations under various agreements with Residential; and other risks and uncertainties detailed in the “Forward-Looking Statements,” “Risk Factors” and other sections of AAMC’s Annual Reports on Form 10-K (including the Form 10-K filed today), its quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission.
Altisource Asset Management Corporation
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Three months ended December 31, 2015 | Three months ended December 31, 2014 | Year ended December 31, 2015 | Year ended December 31, 2014 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 5,672 | $ | 845 | $ | 13,233 | $ | 1,564 | |||||||
Net unrealized gain on mortgage loans | (42,013 | ) | 91,924 | 88,829 | 350,822 | ||||||||||
Net realized gain on mortgage loans | 10,533 | 21,899 | 58,061 | 55,766 | |||||||||||
Net realized gain on mortgage loans held for sale | 35,927 | 2,469 | 36,432 | 2,771 | |||||||||||
Net realized gain on real estate | 14,006 | 4,938 | 50,932 | 9,482 | |||||||||||
Interest income | 17 | 136 | 612 | 2,893 | |||||||||||
Total revenues | 24,142 | 122,211 | 248,099 | 423,298 | |||||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 20,376 | 12,468 | 66,266 | 26,018 | |||||||||||
Real estate depreciation and amortization | 3,080 | 603 | 7,472 | 1,067 | |||||||||||
Acquisition fees and costs | 1,298 | 293 | 2,292 | 1,545 | |||||||||||
Related party acquisition fees and costs | — | 314 | — | 1,039 | |||||||||||
Real estate and mortgage loan selling costs and impairment | 37,995 | 13,013 | 72,230 | 21,788 | |||||||||||
Mortgage loan servicing costs | 14,357 | 18,593 | 62,346 | 68,181 | |||||||||||
Interest expense | 14,217 | 11,295 | 53,131 | 35,647 | |||||||||||
General and administrative | 7,425 | 4,020 | 32,896 | 18,346 | |||||||||||
Related party general and administrative | — | 574 | — | 4,446 | |||||||||||
Total expenses | 98,748 | 61,173 | 296,633 | 178,077 | |||||||||||
Other income | — | 3,035 | — | 5,407 | |||||||||||
(Loss) income before income taxes | (74,606 | ) | 64,073 | (48,534 | ) | 250,628 | |||||||||
Income tax expense | 114 | 668 | 354 | 2,096 | |||||||||||
Net (loss) income | (74,720 | ) | 63,405 | (48,888 | ) | 248,532 | |||||||||
Net (income) loss attributable to noncontrolling interest in consolidated affiliate | 65,779 | (41,482 | ) | 45,598 | (188,853 | ) | |||||||||
Net (loss) income attributable to common stockholders | $ | (8,941 | ) | $ | 21,923 | $ | (3,290 | ) | $ | 59,679 | |||||
(Loss) earnings per share of common stock – basic: | |||||||||||||||
(Loss) earnings per basic share | $ | (4.12 | ) | $ | 9.99 | $ | (1.59 | ) | $ | 26.31 | |||||
Weighted average common stock outstanding – basic | 2,180,167 | 2,189,318 | 2,202,815 | 2,261,968 | |||||||||||
(Loss) earnings per share of common stock – diluted: | |||||||||||||||
(Loss) earnings per diluted share | $ | (4.12 | ) | $ | 7.92 | $ | (1.59 | ) | $ | 21.07 | |||||
Weighted average common stock outstanding – diluted | 2,180,167 | 2,768,300 | 2,202,815 | 2,832,188 | |||||||||||
Altisource Asset Management Corporation
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
December 31, 2015 | December 31, 2014 | ||||||
Assets: | |||||||
Real estate held for use: | |||||||
Land (from consolidated VIE) | $ | 56,346 | $ | 14,424 | |||
Rental residential properties (net of accumulated depreciation of $7,127 and $1,062, respectively - from consolidated VIE) | 224,040 | 60,908 | |||||
Real estate owned (from consolidated VIE) | 455,483 | 457,045 | |||||
Total real estate held for use, net | 735,869 | 532,377 | |||||
Real estate assets held for sale (from consolidated VIE) | 250,557 | 92,230 | |||||
Mortgage loans at fair value (from consolidated VIE) | 960,534 | 1,959,044 | |||||
Mortgage loans held for sale (from consolidated VIE) | 317,336 | 12,535 | |||||
Cash and cash equivalents (including from consolidated VIE $116,702 and $66,166, respectively) | 184,544 | 116,782 | |||||
Restricted cash (from consolidated VIE) | 20,566 | 13,282 | |||||
Accounts receivable, net (including from consolidated VIE $45,903 and $10,313, respectively) | 46,026 | 11,068 | |||||
Related party receivables (from consolidated VIE) | — | 17,491 | |||||
Deferred leasing and financing costs, net (from consolidated VIE) | 7,886 | 4,251 | |||||
Prepaid expenses and other assets (including from consolidated VIE $415 and $373, respectively) | 2,458 | 1,638 | |||||
Total assets | $ | 2,525,776 | $ | 2,760,698 | |||
Liabilities: | |||||||
Repurchase agreements (from consolidated VIE) | $ | 767,513 | $ | 1,015,000 | |||
Other secured borrowings (from consolidated VIE) | 505,630 | 324,082 | |||||
Accounts payable and accrued liabilities (including from consolidated VIE $32,448 and $11,678, respectively) | 38,722 | 16,726 | |||||
Related party payables (including from consolidated VIE $0 and $4,879, respectively) | — | 6,169 | |||||
Total liabilities | 1,311,865 | 1,361,977 | |||||
Commitments and contingencies | |||||||
Redeemable preferred stock: | |||||||
Preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of December 31, 2015 and 2014; redemption value $250,000 | 249,133 | 248,927 | |||||
Equity: | |||||||
Common stock, $.01 par value, 5,000,000 authorized shares; 2,556,828 and 2,048,223 shares issued and outstanding, respectively, as of December 31, 2015 and 2,452,101 and 2,188,136 shares issued and outstanding, respectively as of December 31, 2014 | 26 | 25 | |||||
Additional paid-in capital | 23,419 | 14,152 | |||||
Retained earnings (accumulated deficit) | 50,678 | 54,174 | |||||
Treasury stock, at cost, 508,605 shares as of December 31, 2015 and 263,965 as of December 31, 2014 | (254,984 | ) | (245,468 | ) | |||
Total stockholders' equity (deficit) | (180,861 | ) | (177,117 | ) | |||
Noncontrolling interest in consolidated affiliate | 1,145,639 | 1,326,911 | |||||
Total equity | 964,778 | 1,149,794 | |||||
Total liabilities and equity | $ | 2,525,776 | $ | 2,760,698 | |||
The following tables set forth consolidating financial information which should be considered in addition to, and not as a substitute for, our consolidated financial statements presented in accordance with U.S. GAAP:
Altisource Asset Management Corporation
Consolidating Statement of Operations
Three months ended December 31, 2015
(In thousands, unaudited)
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||||||
Revenues: | |||||||||||||||||||
Rental revenues | $ | 5,672 | $ | — | $ | — | $ | — | $ | 5,672 | |||||||||
Net unrealized loss on mortgage loans | (42,013 | ) | — | — | — | (42,013 | ) | ||||||||||||
Net realized gain on mortgage loans | 10,533 | — | — | — | 10,533 | ||||||||||||||
Net realized gain on mortgage loans held for sale | 35,927 | — | — | — | 35,927 | ||||||||||||||
Net realized gain on real estate | 14,006 | — | — | — | 14,006 | ||||||||||||||
Interest income | 16 | 1 | — | — | 17 | ||||||||||||||
Conversion fee | — | — | 309 | (309 | ) | — | |||||||||||||
Base management fee | — | — | 4,524 | (4,524 | ) | — | |||||||||||||
Incentive management fee | — | — | (6,906 | ) | 6,906 | — | |||||||||||||
Total revenues | 24,141 | 1 | (2,073 | ) | 2,073 | 24,142 | |||||||||||||
Expenses: | |||||||||||||||||||
Residential property operating expenses | 20,376 | — | — | — | 20,376 | ||||||||||||||
Real estate depreciation and amortization | 3,080 | — | — | — | 3,080 | ||||||||||||||
Acquisition fees and costs | 1,298 | — | — | — | 1,298 | ||||||||||||||
Real estate and mortgage loan selling costs and impairment | 37,995 | — | — | — | 37,995 | ||||||||||||||
Mortgage loan servicing costs | 14,357 | — | — | — | 14,357 | ||||||||||||||
Interest expense | 14,217 | — | — | — | 14,217 | ||||||||||||||
General and administrative | 1,036 | 41 | 6,348 | — | 7,425 | ||||||||||||||
Related party general and administrative, net of reimbursements | (2,073 | ) | — | — | 2,073 | — | |||||||||||||
Total expenses | 90,286 | 41 | 6,348 | 2,073 | 98,748 | ||||||||||||||
Other income | — | — | 33 | (33 | ) | — | |||||||||||||
Loss before income taxes | (66,145 | ) | (40 | ) | (8,388 | ) | (33 | ) | (74,606 | ) | |||||||||
Income tax expense | 13 | — | 101 | — | 114 | ||||||||||||||
Net loss | (66,158 | ) | (40 | ) | (8,489 | ) | (33 | ) | (74,720 | ) | |||||||||
Net loss attributable to noncontrolling interest in consolidated affiliate | — | — | — | 65,779 | 65,779 | ||||||||||||||
Net loss attributable to common stockholders | $ | (66,158 | ) | $ | (40 | ) | $ | (8,489 | ) | $ | 65,746 | $ | (8,941 | ) | |||||
Altisource Asset Management Corporation
Consolidating Statement of Operations
Year ended December 31, 2015
(In thousands, unaudited)
Residential (GAAP) | NewSource Stand-alone (Non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||||||
Revenues: | |||||||||||||||||||
Rental revenues | $ | 13,233 | $ | — | $ | — | $ | — | $ | 13,233 | |||||||||
Net unrealized gain on mortgage loans | 88,829 | — | — | — | 88,829 | ||||||||||||||
Net realized gain on mortgage loans | 58,061 | — | — | — | 58,061 | ||||||||||||||
Net realized gain on mortgage loans held for sale | 36,432 | — | — | — | 36,432 | ||||||||||||||
Net realized gain on real estate | 50,932 | — | — | — | 50,932 | ||||||||||||||
Interest income | 611 | 564 | — | (563 | ) | 612 | |||||||||||||
Conversion fee | — | — | 1,037 | (1,037 | ) | — | |||||||||||||
Base management fee | — | — | 14,565 | (14,565 | ) | — | |||||||||||||
Incentive management fee | — | — | 7,994 | (7,994 | ) | — | |||||||||||||
Expense reimbursements | — | — | 750 | (750 | ) | — | |||||||||||||
Total revenues | 248,098 | 564 | 24,346 | (24,909 | ) | 248,099 | |||||||||||||
Expenses: | |||||||||||||||||||
Residential property operating expenses | 66,266 | — | — | — | 66,266 | ||||||||||||||
Real estate depreciation and amortization | 7,472 | — | — | — | 7,472 | ||||||||||||||
Acquisition fees and costs | 2,292 | — | — | — | 2,292 | ||||||||||||||
Real estate and mortgage loan selling costs and impairment | 72,230 | — | — | — | 72,230 | ||||||||||||||
Mortgage loan servicing costs | 62,346 | — | — | — | 62,346 | ||||||||||||||
Interest expense | 53,694 | — | — | (563 | ) | 53,131 | |||||||||||||
General and administrative | 9,539 | 199 | 23,158 | — | 32,896 | ||||||||||||||
Related party general and administrative | 23,716 | 630 | 2,000 | (26,346 | ) | — | |||||||||||||
Total expenses | 297,555 | 829 | 25,158 | (26,909 | ) | 296,633 | |||||||||||||
Other income | 3,518 | — | 211 | (3,729 | ) | — | |||||||||||||
Loss before income taxes | (45,939 | ) | (265 | ) | (601 | ) | (1,729 | ) | (48,534 | ) | |||||||||
Income tax expense | 66 | — | 288 | — | 354 | ||||||||||||||
Net loss | (46,005 | ) | (265 | ) | (889 | ) | (1,729 | ) | (48,888 | ) | |||||||||
Net loss attributable to noncontrolling interest in consolidated affiliate | — | — | — | 45,598 | 45,598 | ||||||||||||||
Net loss attributable to common stockholders | $ | (46,005 | ) | $ | (265 | ) | $ | (889 | ) | $ | 43,869 | $ | (3,290 | ) | |||||
Altisource Asset Management Corporation
Consolidating Statement of Operations
Three months ended December 31, 2014
(In thousands, unaudited)
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 mortgage loans held for sale | 2,469 | — | — | — | 2,469 | ||||||||||||||
Net realized gain on real estate | 4,938 | — | — | — | 4,938 | ||||||||||||||
Interest income | 136 | 156 | — | (156 | ) | 136 | |||||||||||||
Base management fee | — | — | 210 | — | 210 | ||||||||||||||
Incentive management fee | — | — | 23,820 | (23,820 | ) | — | |||||||||||||
Expense reimbursements | — | — | 1,221 | (1,431 | ) | (210 | ) | ||||||||||||
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 | ||||||||||||||
Acquisition fees and costs | 293 | — | — | — | 293 | ||||||||||||||
Related party acquisition fees and costs | 314 | — | — | — | 314 | ||||||||||||||
Real estate and mortgage loan 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 | 1,089 | 3,787 | (856 | ) | — | 4,020 | |||||||||||||
Related party general and administrative | 25,087 | 210 | 528 | (25,251 | ) | 574 | |||||||||||||
Total expenses | 82,920 | 3,997 | (328 | ) | (25,416 | ) | 61,173 | ||||||||||||
Other income | 2,160 | 3,030 | 5 | (2,160 | ) | 3,035 | |||||||||||||
Loss before income taxes | 41,451 | (811 | ) | 25,584 | (2,151 | ) | 64,073 | ||||||||||||
Income tax expense | (31 | ) | — | 699 | — | 668 | |||||||||||||
Net loss | 41,482 | (811 | ) | 24,885 | (2,151 | ) | 63,405 | ||||||||||||
Net loss attributable to noncontrolling interest in consolidated affiliate | — | — | — | (41,482 | ) | (41,482 | ) | ||||||||||||
Net loss attributable to common stockholders | $ | 41,482 | $ | (811 | ) | $ | 24,885 | $ | (43,633 | ) | $ | 21,923 | |||||||
Altisource Asset Management Corporation
Consolidating Statement of Operations
Year ended December 31, 2014
(In thousands, unaudited)
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 mortgage loans held for sale | 2,771 | — | — | — | 2,771 | ||||||||||||||
Net realized gain on real estate | 9,482 | — | — | — | 9,482 | ||||||||||||||
Interest income | 2,893 | 156 | — | (156 | ) | 2,893 | |||||||||||||
Base management fee | — | — | 941 | (941 | ) | — | |||||||||||||
Incentive management fee | — | — | 67,949 | (67,949 | ) | — | |||||||||||||
Expense reimbursements | — | — | 6,070 | (6,070 | ) | — | |||||||||||||
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 | ||||||||||||||
Acquisition fees and costs | 1,545 | — | — | — | 1,545 | ||||||||||||||
Related party acquisition fees and costs | 1,039 | — | — | (1,039 | ) | — | |||||||||||||
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 | 5,502 | 4,168 | 8,676 | — | 18,346 | ||||||||||||||
Related party general and administrative | 75,991 | 941 | 2,474 | (73,921 | ) | 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 | ||||||||
Altisource Asset Management Corporation
Consolidating Balance Sheet
December 31, 2015
(In thousands, unaudited)
Residential (GAAP) | NewSource stand-alone (non-GAAP) | AAMC Stand-alone (Non-GAAP) | Consolidating Entries | AAMC Consolidated (GAAP) | |||||||||||||||
Assets: | |||||||||||||||||||
Real estate held for use: | |||||||||||||||||||
Land | $ | 56,346 | $ | — | $ | — | $ | — | $ | 56,346 | |||||||||
Rental residential properties, net | 224,040 | — | — | — | 224,040 | ||||||||||||||
Real estate owned | 455,483 | — | — | — | 455,483 | ||||||||||||||
Total real estate held for use, net | 735,869 | — | — | — | 735,869 | ||||||||||||||
Real estate assets held for sale | 250,557 | — | — | — | 250,557 | ||||||||||||||
Mortgage loans at fair value | 960,534 | — | — | — | 960,534 | ||||||||||||||
Mortgage loans held for sale | 317,336 | — | — | — | 317,336 | ||||||||||||||
Cash and cash equivalents | 116,702 | 4,583 | 63,259 | — | 184,544 | ||||||||||||||
Restricted cash | 20,566 | — | — | — | 20,566 | ||||||||||||||
Accounts receivable | 45,903 | — | 123 | — | 46,026 | ||||||||||||||
Related party receivables | 2,180 | — | — | (2,180 | ) | — | |||||||||||||
Investment in affiliate | — | — | 12,007 | (12,007 | ) | — | |||||||||||||
Deferred leasing and financing costs, net | 7,886 | — | — | — | 7,886 | ||||||||||||||
Prepaid expenses and other assets | 415 | 5 | 2,028 | 10 | 2,458 | ||||||||||||||
Total assets | $ | 2,457,948 | $ | 4,588 | $ | 77,417 | $ | (14,177 | ) | $ | 2,525,776 | ||||||||
Liabilities: | |||||||||||||||||||
Repurchase agreements | $ | 767,513 | $ | — | $ | — | $ | — | $ | 767,513 | |||||||||
Other secured borrowings | 505,630 | — | — | — | 505,630 | ||||||||||||||
Accounts payable and accrued liabilities | 32,448 | 1,546 | 4,728 | — | 38,722 | ||||||||||||||
Related party payables | — | — | 2,180 | (2,180 | ) | — | |||||||||||||
Total liabilities | 1,305,591 | 1,546 | 6,908 | (2,180 | ) | 1,311,865 | |||||||||||||
Commitments and contingencies | — | — | — | — | — | ||||||||||||||
Preferred stock | — | — | 249,133 | — | 249,133 | ||||||||||||||
Equity: | |||||||||||||||||||
Common stock | 572 | — | 26 | (572 | ) | 26 | |||||||||||||
Additional paid-in capital | 1,227,385 | 7,000 | 21,089 | (1,232,055 | ) | 23,419 | |||||||||||||
(Accumulated deficit) retained earnings | (50,617 | ) | (3,958 | ) | 55,245 | 50,008 | 50,678 | ||||||||||||
Treasury stock | (24,983 | ) | — | (254,984 | ) | 24,983 | (254,984 | ) | |||||||||||
Total stockholders' equity | 1,152,357 | 3,042 | (178,624 | ) | (1,157,636 | ) | (180,861 | ) | |||||||||||
Noncontrolling interest in consolidated affiliate | — | — | — | 1,145,639 | 1,145,639 | ||||||||||||||
Total equity | 1,152,357 | 3,042 | (178,624 | ) | (11,997 | ) | 964,778 | ||||||||||||
Total liabilities and equity | $ | 2,457,948 | $ | 4,588 | $ | 77,417 | $ | (14,177 | ) | $ | 2,525,776 | ||||||||
Altisource Asset Management Corporation
Consolidating Balance Sheet
December 31, 2014
(In thousands, unaudited)
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 at fair value | 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 | 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 | 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 | ||||||||