Altisource Asset Management Corporation Reports Second Quarter 2022 Results
Second Quarter 2022 Highlights and Recent Developments
- The Company has purchased more than
$40 millionin loans held for investment and has earned $0.5 millionfrom loan interest during the second quarter of 2022.
- As of
June 30, 2022, AAMC’s cash position was $31.3 million, which is net of the $32.0 millionat quarter end for loans held for investment at fair value. Jason Kopcakhas been appointed Chief Executive Officer by the Board of Directors.
- The Company has entered into a
$50 millionline of credit agreement with Flagstar Bank FSB("Flagstar"). As of August 8, 2022, the Company has drawn $40.2 millionon the line of Credit.
- The Company repurchased 286,873 shares of its common stock from
Putnam Focused Equity Fund, a series of Putnam Trust, at $10.00per share in July 2022.
- The Company has hired a Head of Sales and leased approximately 7,000 square feet of office space in
Tampa, Floridafor its Alternative Lending Groupand has begun adding staff to originate loans.
“Since AAMC's announcement of starting its
Second Quarter 2022 Financial Results
AAMC’s net loss to common shareholders for the second quarter of 2022 was
AAMC is an alternative lending company that provides liquidity and capital to under-served markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders such as Crypto-ATMs.
Additional information is available at www.altisourceamc.com.
This press release contains 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, regarding management’s beliefs, estimates, projections, anticipations, and assumptions with respect to, among other things, the Company’s financial results, future operations, business plans and investment strategies as well as industry and market conditions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from these forward-looking statements may include, without limitation, our ability to develop our businesses, and to make them successful or sustain the performance of any such businesses; developments in the litigation regarding our redemption obligations under the Certificate of Designations of our Series A Convertible Preferred Stock; the filing of any lawsuit against
The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
|Three months ended
||Six months ended
|Loan interest income||$||524||$||—||$||524||$||—|
|Loan fee income||9||—||9||—|
|Salaries and employee benefits||1,555||(345||)||2,479||3,200|
|General and administrative||828||611||1,557||1,364|
|Servicing and asset management expense||181||—||181||—|
|Other income (expense):|
|Change in fair value of loans held for investment||(325||)||—||(325||)||—|
|Change in fair value of equity securities||—||(2,411||)||—||3,456|
|Gain on sale of equity securities||—||6,360||—||6,360|
|Total other income (expense)||(317||)||4,816||(309||)||12,936|
|Net (loss) income from continuing operations before income taxes||(4,125||)||1,895||(7,817||)||3,832|
|Income tax expense (benefit)||7||(333||)||12||1,961|
|Net (loss) income from continuing operations||$||(4,132||)||$||2,228||$||(7,829||)||$||1,871|
|Gain on discontinued operations (net of income tax expense of
|Net (loss) income attributable to common stockholders||$||(4,132||)||$||2,228||$||(7,829||)||$||8,084|
|Continuing operations earnings per share|
|Net (loss) income from continuing operations||$||(4,132||)||2,228||$||(7,829||)||1,871|
|Gain on preferred stock transaction||—||—||5,122||71,883|
|Numerator for earnings per share from continuing operations||$||(4,132||)||$||2,228||$||(2,707||)||$||73,754|
|Earnings per share of common stock – Basic:|
|Weighted average common stock outstanding||2,063,078||2,050,786||2,059,872||1,948,070|
|Earnings per share of common stock – Diluted:|
|Weighted average common stock outstanding||2,063,078||2,195,806||2,059,872||2,137,513|
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
|Loans held for investment, at fair value||$||31,981||$||—|
|Accrued interest on loans held for investment||170||—|
|Cash and cash equivalents||31,317||78,349|
|LIABILITIES AND EQUITY|
|Accrued expenses and other liabilities||$||1,100||$||7,145|
|Commitments and contingencies||—||—|
|Redeemable preferred stock:|
|Additional paid-in capital||148,821||143,523|
|Accumulated other comprehensive income||35||54|
|Total stockholders' deficit||(79,078||)||(76,528||)|
|Total Liabilities and Equity||$||67,013||$||81,476|
FOR FURTHER INFORMATION CONTACT: Investor Relations T: +1-704-275-9113 E: IR@AltisourceAMC.com
Source: Altisource Asset Management Corporation