November 9, 2015

Altisource Asset Management Corporation Reports Third Quarter 2015 Results

CHRISTIANSTED, U.S. Virgin Islands, Nov. 09, 2015 (GLOBE NEWSWIRE) -- Altisource Asset Management Corporation ("AAMC" or the "Company") (NYSE MKT:AAMC) today announced financial and operating results for the third quarter of 2015.

Third Quarter 2015 Highlights:

  • Increased the rental portfolio of Altisource Residential Corporation ("Residential") to 2,516 homes as of September 30, 2015, including 2,105 rented properties, 156 properties listed for rent and 255 properties under leasehold renovation and unit turn, representing an increase of 156% over the 984 properties in the rental portfolio as of June 30, 2015.
  • Facilitated Residential's agreement to sell 871 non-performing loans at its balance sheet carrying value; unpaid principal balance ("UPB") of loans to be sold is $346.9 million, or approximately 15% of the total UPB in Residential's loan portfolio; sale is expected to close in the fourth quarter.1
  • Advised Residential on the completion of its acquisition of 1,314 rental homes in Atlanta for an aggregate purchase price of $111.4 million.
  • Facilitated Residential's declaration and payment of a $0.55 per share dividend.
  • Negotiated Residential's amendment of its repurchase facility with Wells Fargo to extend the facility to September 2017, increase the funding capacity to $750.0 million and increase its ability to finance REO to 40% of the facility.
  • Earned asset management fees of $5.2 million.

"In the third quarter of 2015, we successfully implemented Residential's diversified acquisition strategy to substantially grow its single-family rental portfolio," said Chairman and Chief Executive Officer George G. Ellison.  "Although our asset management fees remained lower during the third quarter, we continue to believe the amended fee structure promotes the long-term stability of both companies, aligns our incentives with Residential's strategy of becoming a large single-family rental home operator and better positions Residential for growth and improved returns. We believe the successful implementation of Residential's strategy will be an important factor in AAMC's future growth."

 _____________
1 Sale is subject to completion of due diligence and final negotiation of definitive purchase agreement.  Final purchase price is expected to be in the range of 1-2% of Residential's balance sheet carrying value for the loans.

Third Quarter 2015 Financial Results

Net loss attributable to stockholders for the third quarter of 2015 totaled $2.0 million, or $0.92 per diluted share, compared to net income attributable to stockholders of $17.7 million, or $6.25 per diluted share, for the third quarter of 2014. Net income attributable to stockholders for the nine months ended September 30, 2015 totaled $5.7 million, or $2.07 per diluted share, compared to net income attributable to stockholders of $37.8 million, or $13.23 per diluted share, for the nine months ended September 30, 2014.

Webcast and conference call

The Company will host a webcast and conference call on Monday, November 9, 2015, at 10:00 a.m. Eastern Time to discuss its financial results for the third quarter 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. AAMC 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; its ability to compete; general economic and market conditions; governmental regulations, taxes and policies; availability of adequate and timely sources of liquidity and financing; and other risks and uncertainties detailed in the "Forward-Looking Statements," "Risk Factors" and other sections of AAMC's Annual Report on Form 10-K, 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)
(Unaudited)
 
 Three months
ended September
30, 2015
 Three months
ended September
30, 2014
 Nine months
ended September
30, 2015
 Nine months
ended September
30, 2014
        
Revenues:       
Rental revenues$4,021  $469  $7,561  $719 
Net unrealized gain on mortgage loans27,499  88,726  130,842  258,898 
Net realized gain on mortgage loans12,874  13,727  47,528  33,867 
Net realized gain on mortgage loans held for sale100  302  505  302 
Net realized gain on real estate13,914  3,310  36,926  4,544 
Interest income115  2,568  595  2,757 
Total revenues58,523  109,102  223,957  301,087 
Expenses:       
Residential property operating expenses16,574  9,247  45,890  13,550 
Real estate depreciation and amortization2,050  313  4,392  464 
Real estate and mortgage loan selling costs and impairment10,705  5,542  34,235  8,775 
Mortgage loan servicing costs13,477  21,226  47,989  49,588 
Interest expense14,194  11,699  38,914  24,352 
General and administrative8,935  5,435  26,465  15,578 
Related party general and administrative  999    4,597 
Total expenses65,935  54,461  197,885  116,904 
Other income  1,586    2,372 
(Loss) income before income taxes(7,412) 56,227  26,072  186,555 
Income tax (benefit) expense(97) 853  240  1,428 
Net (loss) income(7,315) 55,374  25,832  185,127 
Net loss (income) attributable to noncontrolling interest in consolidated affiliate5,335  (37,676) (20,181) (147,371)
Net (loss) income attributable to common stockholders$(1,980) $17,698  $5,651  $37,756 
        
(Loss) earnings per share of common stock — basic:       
(Loss) earnings per basic share$(0.92) $7.91  $2.49  $16.51 
Weighted average common stock outstanding — basic2,208,658  2,238,225  2,210,448  2,286,451 
(Loss) earnings per share of common stock — diluted:       
(Loss) earnings per diluted share$(0.92) $6.25  $2.07  $13.23 
Weighted average common stock outstanding — diluted2,208,658  2,831,617  2,733,747  2,853,751 


Altisource Asset Management Corporation
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
 
 September 30, 2015
(Unaudited)
 December 31, 2014
Assets:   
Real estate held for use:   
Land (from consolidated VIE)$49,518  $14,424 
Rental residential properties (net of accumulated depreciation of $5,048 and $1,062, respectively - from consolidated VIE)200,136  60,908 
Real estate owned (from consolidated VIE)567,228  457,045 
Total real estate held for use, net816,882  532,377 
Real estate assets held for sale (from consolidated VIE)133,154  92,230 
Mortgage loans at fair value (from consolidated VIE)1,380,575  1,959,044 
Mortgage loans held for sale (from consolidated VIE)254,835  12,535 
Cash and cash equivalents (including from consolidated VIE $83,881 and $66,166, respectively)152,634  116,782 
Restricted cash (from consolidated VIE)25,511  13,282 
Accounts receivable (including from consolidated VIE $35,507 and $10,313, respectively)35,514  11,068 
Related party receivables (from consolidated VIE)  17,491 
Deferred leasing and financing costs, net (from consolidated VIE)9,806  4,251 
Prepaid expenses and other assets (including from consolidated VIE $395 and $373, respectively)1,790  1,638 
Total assets$2,810,701  $2,760,698 
Liabilities:   
Repurchase and loan and security agreements (from consolidated VIE)$929,478  $1,015,000 
Other secured borrowings (from consolidated VIE)513,049  324,082 
Accounts payable and accrued liabilities (including from consolidated VIE $63,871 and $11,678, respectively)68,585  16,726 
Related party payables (including from consolidated VIE $0 and $4,879, respectively)  6,169 
Total liabilities1,511,112  1,361,977 
Commitments and contingencies   
Redeemable preferred stock:   
Preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of September 30, 2015 and December 31, 2014; redemption value $250,000249,082  248,927 
Equity:   
Common stock, $.01 par value, 5,000,000 authorized shares; 2,515,697 and 2,213,222 shares issued and outstanding, respectively, as of September 30, 2015 and 2,452,101 and 2,188,136 shares issued and outstanding, respectively, as of December 31, 201425  25 
Additional paid-in capital20,977  14,152 
Retained earnings59,670  54,174 
Treasury stock, at cost, 302,475 shares as of September 30, 2015 and 263,965 shares as of December 31, 2014(252,072) (245,468)
Total stockholders' equity (deficit)(171,400) (177,117)
Noncontrolling interest in consolidated affiliate1,221,907  1,326,911 
Total equity1,050,507  1,149,794 
Total liabilities and equity$2,810,701  $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 September 30, 2015
(In thousands)
 
  Residential
(GAAP)
NewSource
Stand-alone
(Non-GAAP)
 AAMC
Stand-alone

(Non-GAAP)
 Consolidating
Entries
 AAMC
Consolidated
(GAAP)
Revenues:     
Rental revenues$4,021 $ $ $ $4,021 
Net unrealized gain on mortgage loans27,499    27,499 
Net realized gain on mortgage loans12,874    12,874 
Net realized gain on mortgage loans held for sale100    100 
Net realized gain on real estate13,914    13,914 
Interest income115 242  (242)115 
Conversion fee  329 (329) 
Base management fee  4,869 (4,869) 
Total revenues58,523 242 5,198 (5,440)58,523 
Expenses:     
Residential property operating expenses16,574    16,574 
Real estate depreciation and amortization2,050    2,050 
Real estate and mortgage loan selling costs and impairment10,705    10,705 
Mortgage loan servicing costs13,477    13,477 
Interest expense14,436   (242)14,194 
General and administrative3,147 40 5,748  8,935 
Related party general and administrative4,988 210  (5,198) 
Total expenses65,377 250 5,748 (5,440)65,935 
Other income1,518  178 (1,696) 
Loss before income taxes(5,336)(8)(372)(1,696)(7,412)
Income tax expense (benefit)27  (124) (97)
Net loss(5,363)(8)(248)(1,696)(7,315)
Net loss attributable to noncontrolling interest in consolidated affiliate   5,335 5,335 
Net loss attributable to common stockholders$(5,363)$(8)$(248)$3,639 $(1,980)


Altisource Asset Management Corporation
Consolidating Statement of Operations
Nine months ended September 30, 2015
(In thousands, unaudited)
 
  Residential
(GAAP)
NewSource
Stand-alone
(Non-GAAP)
 AAMC
Stand-alone

(Non-GAAP)
 Consolidating
Entries
 AAMC
Consolidated
(GAAP)
Revenues:     
Rental revenues$7,561 $ $ $ $7,561 
Net unrealized gain on mortgage loans130,842    130,842 
Net realized gain on mortgage loans47,528    47,528 
Net realized gain on mortgage loans held for sale505    505 
Net realized gain on real estate36,926    36,926 
Interest income595 563  (563)595 
Conversion fee  728 (728) 
Base management fee  10,041 (10,041) 
Incentive management fee  14,900 (14,900) 
Expense reimbursements  750 (750) 
Total revenues223,957 563 26,419 (26,982)223,957 
Expenses:     
Residential property operating expenses45,890    45,890 
Real estate depreciation and amortization4,392    4,392 
Real estate and mortgage loan selling costs and impairment34,235    34,235 
Mortgage loan servicing costs47,989    47,989 
Interest expense39,477   (563)38,914 
General and administrative9,497 158 16,810  26,465 
Related party general and administrative25,789 630 2,000 (28,419) 
Total expenses207,269 788 18,810 (28,982)197,885 
Other income3,518  178 (3,696) 
Income (loss) before income taxes20,206 (225)7,787 (1,696)26,072 
Income tax expense53  187  240 
Net income (loss)20,153 (225)7,600 (1,696)25,832 
Net income attributable to noncontrolling interest in consolidated affiliate   (20,181)(20,181)
Net income (loss) attributable to common stockholders$20,153 $(225)$7,600 $(21,877)$5,651 

 

Altisource Asset Management Corporation
Consolidating Statement of Operations
Three months ended September 30, 2014
(In thousands)
 
  Residential
(GAAP)
NewSource
Stand-alone
(Non-GAAP)
 AAMC
Stand-alone

(Non-GAAP)
 Consolidating
Entries
 AAMC
Consolidated
(GAAP)
Revenues:     
Rental revenues$469 $ $ $ $469 
Net unrealized gain on mortgage loans88,726    88,726 
Net realized gain on mortgage loans13,727    13,727 
Net realized gain on mortgage loans held for sale302    302 
Net realized gain on real estate3,310    3,310 
Interest income2,568    2,568 
Base management fee  210 (210) 
Incentive management fee  19,503 (19,503) 
Expense reimbursements  1,591 (1,591) 
Total revenues109,102  21,304 (21,304)109,102 
Expenses:     
Residential property operating expenses9,247    9,247 
Real estate depreciation and amortization313    313 
Real estate selling costs and impairment5,542    5,542 
Mortgage loan servicing costs21,226    21,226 
Interest expense11,699    11,699 
General and administrative1,819 286 3,330  5,435 
Related party general and administrative21,530 210 563 (21,304)999 
Total expenses71,376 496 3,893 (21,304)54,461 
Other income 1,586   1,586 
Income before income taxes37,726 1,090 17,411  56,227 
Income tax expense50  803  853 
Net income37,676 1,090 16,608  55,374 
Net income attributable to noncontrolling interest in consolidated affiliate   (37,676)(37,676)
Net income attributable to common stockholders$37,676 $1,090 $16,608 $(37,676)$17,698 


Altisource Asset Management Corporation
Consolidating Statement of Operations
Nine months ended September 30, 2014
(In thousands)
 
  Residential
(GAAP)
NewSource
Stand-alone
(Non-GAAP)
 AAMC
Stand-alone

(Non-GAAP)
 Consolidating
Entries
 AAMC
Consolidated
(GAAP)
Revenues:     
Rental revenues$719 $ $ $ $719 
Net unrealized gain on mortgage loans258,898    258,898 
Net realized gain on mortgage loans33,867    33,867 
Net realized gain on mortgage loans held for sale302    302 
Net realized gain on real estate4,544    4,544 
Interest income2,757    2,757 
Base management fee  731 (731) 
Incentive management fee  44,129 (44,129) 
Expense reimbursements  4,849 (4,849) 
Total revenues301,087  49,709 (49,709)301,087 
Expenses:     
Residential property operating expenses13,550    13,550 
Real estate depreciation and amortization464    464 
Real estate selling costs and impairment8,775    8,775 
Mortgage loan servicing costs49,588    49,588 
Interest expense24,352    24,352 
General and administrative5,665 381 9,532  15,578 
Related party general and administrative51,629 731 1,946 (49,709)4,597 
Total expenses154,023 1,112 11,478 (49,709)116,904 
Other income383 1,985 4  2,372 
Income before income taxes147,447 873 38,235  186,555 
Income tax expense76  1,352  1,428 
Net income147,371 873 36,883  185,127 
Net income attributable to noncontrolling interest in consolidated affiliate   (147,371)(147,371)
Net income attributable to common stockholders$147,371 $873 $36,883 $(147,371)$37,756 


Altisource Asset Management Corporation
Consolidating Balance Sheet
September 30, 2015
(In thousands)
 
  Residential
(GAAP)
NewSource
stand-alone
(Non-GAAP)
 AAMC
Stand-alone

(Non-GAAP)
 Consolidating
Entries
 AAMC
Consolidated
(GAAP)
      
Assets:     
Real estate held for use:     
Land$49,518 $ $ $ $49,518 
Rental residential properties, net200,136    200,136 
Real estate owned567,228    567,228 
Total real estate held for use, net816,882    816,882 
Real estate assets held for sale133,154    133,154 
Mortgage loans at fair value1,380,575    1,380,575 
Mortgage loans held for sale254,835    254,835 
Cash and cash equivalents83,881 6,189 62,564  152,634 
Restricted cash25,511    25,511 
Accounts receivable35,507  7  35,514 
Related party receivables  6,701 (6,701) 
Investment in affiliate  12,007 (12,007) 
Deferred leasing and financing costs, net9,806    9,806 
Prepaid expenses and other assets395 37 1,349 9 1,790 
Total assets$2,740,546 $6,226 $82,628 $(18,699)$2,810,701 
Liabilities:     
Repurchase agreements$929,478 $ $ $ $929,478 
Other secured borrowings513,049    513,049 
Accounts payable and accrued liabilities63,871 1,573 3,141  68,585 
Related party payables5,126 1,571 3 (6,700) 
Total liabilities1,511,524 3,144 3,144 (6,700)1,511,112 
Commitments and contingencies     
Redeemable preferred stock  249,082  249,082 
Equity:     
Common stock572  25 (572)25 
Additional paid-in capital1,227,334 7,000 18,663 (1,232,020)20,977 
Retained earnings (accumulated deficit)21,099 (3,918)63,786 (21,297)59,670 
Treasury stock(19,983) (252,072)19,983 (252,072)
Total stockholders' equity (deficit)1,229,022 3,082 (169,598)(1,233,906)(171,400)
Noncontrolling interest in consolidated affiliate   1,221,907 1,221,907 
Total equity (deficit)1,229,022 3,082 (169,598)(11,999)1,050,507 
Total liabilities and equity$2,740,546 $6,226 $82,628 $(18,699)$2,810,701 


Altisource Asset Management Corporation
Consolidating Balance Sheet
December 31, 2014
(In thousands)
 
  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, net60,908    60,908 
Real estate owned457,045    457,045 
Total real estate held for use, net532,377    532,377 
Real estate assets held for sale92,230    92,230 
Mortgage loans at fair value1,959,044    1,959,044 
Mortgage loans held for sale12,535    12,535 
Cash and cash equivalents66,166 6,026 44,590  116,782 
Restricted cash13,282    13,282 
Accounts receivable10,313 919 1 (165)11,068 
Related party receivables17,491 14,991 28,512 (43,503)17,491 
Investment in affiliate18,000  2,000 (20,000) 
Deferred leasing and financing costs, net4,251    4,251 
Prepaid expenses and other assets373 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 borrowings339,082   (15,000)324,082 
Accounts payable and accrued liabilities11,678 3,173 2,040 (165)16,726 
Related party payables33,391 941 349 (28,512)6,169 
Total liabilities1,399,151 4,114 2,389 (43,677)1,361,977 
Commitments and contingencies     
Redeemable preferred stock  248,927  248,927 
Equity:     
Common stock572  25 (572)25 
Additional paid-in capital1,227,091 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 

 

FOR FURTHER INFORMATION CONTACT:
Robin N. Lowe
Chief Financial Officer
T: 1-345-815-9919
E: Robin.Lowe@AltisourceAMC.com


Close window | Back to top

Copyright 2017 Altisource Asset Management