Altisource Asset Management Corporation Reports First Quarter 2018 Results
08 Mai 2018 - 1:30PM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE MKT:AAMC) today announced financial and operating results for
the first quarter of 2018.
First Quarter 2018 Highlights and Recent
Developments
- Increased rental revenues of Front Yard Residential Corporation
(“Front Yard”) by 14% to $39.8 million compared to $34.9 million
for the fourth quarter of 2017.
- Maintained strong operating metrics for Front Yard.
- Reduced Front Yard's remaining legacy REOs to 320, down 35%
from 490 at December 31, 2017.
- Continued optimization of Front Yard's funding, of which 65%
had fixed or capped rates and 78% had maturities of over 3.5
years.
“Under our management, Front Yard reported strong results in the
first quarter of 2018,” stated Chief Executive Officer George
Ellison. “We expect to see continued improvement in Front Yard's
numbers going forward, which should positively impact AAMC.”
First Quarter 2018 Financial Results
AAMC’s net loss attributable to common stockholders for the
first quarter of 2018 was $4.4 million, or $2.75 per diluted share,
which included a $(2.9) million change in the fair value of our
shares of Front Yard common stock, compared to $1.4 million, or
$0.89 per diluted share, for the first quarter of 2017.
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.
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
Front Yard's ability to compete; Front Yard’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
itself or Front Yard; Front Yard’s ability to sell residential
mortgage assets or non-rental real estate owned on favorable terms
or at all; AAMC's ability to identify and acquire assets for Front
Yard’s portfolio; Front Yard’s ability to complete potential
transactions in accordance with anticipated terms and on a timely
basis or at all; Altisource Portfolio Solutions S.A. and its
affiliates’ ability to effectively perform its obligations under
various agreements with AAMC and Front Yard; the failure of Main
Street Renewal, LLC to effectively perform under its property
management agreement with Front Yard; and other risks and
uncertainties detailed in the “Risk Factors” and other sections
described from time to time in the Company’s current and future
filings with the Securities and Exchange Commission. The foregoing
list of factors should not be construed as exhaustive. 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.
Altisource Asset Management
CorporationCondensed Consolidated Statements of
Operations(In thousands, except share and per
share amounts)(Unaudited)
|
Three months ended March 31, |
|
2018 |
|
2017 |
Revenues: |
|
|
|
Management fees from
Front Yard |
$ |
3,727 |
|
|
$ |
4,211 |
|
Conversion fees from
Front Yard |
63 |
|
|
604 |
|
Expense reimbursements
from Front Yard |
262 |
|
|
196 |
|
Total
revenues |
4,052 |
|
|
5,011 |
|
Expenses: |
|
|
|
Salaries and employee
benefits |
4,214 |
|
|
4,687 |
|
Legal and professional
fees |
352 |
|
|
684 |
|
General and
administrative |
947 |
|
|
1,157 |
|
Total
expenses |
5,513 |
|
|
6,528 |
|
Other (loss)
income: |
|
|
|
Change in fair value of
Front Yard common stock |
(2,940 |
) |
|
— |
|
Dividend income on
Front Yard common stock |
244 |
|
|
244 |
|
Other income |
43 |
|
|
12 |
|
Total
other (loss) income |
(2,653 |
) |
|
256 |
|
Loss before income
taxes |
(4,114 |
) |
|
(1,261 |
) |
Income tax expense |
250 |
|
|
57 |
|
Net
loss |
(4,364 |
) |
|
(1,318 |
) |
Amortization of
preferred stock issuance costs |
(51 |
) |
|
(52 |
) |
Net loss
attributable to common stockholders |
$ |
(4,415 |
) |
|
$ |
(1,370 |
) |
|
|
|
|
Loss per share
of common stock – basic: |
|
|
|
Loss per basic
share |
$ |
(2.75 |
) |
|
$ |
(0.89 |
) |
Weighted average common
stock outstanding – basic |
1,603,898 |
|
|
1,545,555 |
|
|
|
|
|
Loss per share
of common stock – diluted: |
|
|
|
Loss per diluted
share |
$ |
(2.75 |
) |
|
$ |
(0.89 |
) |
Weighted average common
stock outstanding – diluted |
1,603,898 |
|
|
1,545,555 |
|
|
|
|
|
|
|
Altisource Asset Management
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts)
|
March 31, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
29,115 |
|
|
$ |
33,349 |
|
Short-term
investments |
432 |
|
|
625 |
|
Front Yard common
stock |
16,326 |
|
|
19,266 |
|
Receivable from Front
Yard |
4,027 |
|
|
4,151 |
|
Prepaid expenses and
other assets |
1,440 |
|
|
1,022 |
|
Total
current assets |
$ |
51,340 |
|
|
$ |
58,413 |
|
Other non-current
assets |
1,527 |
|
|
1,974 |
|
Total
assets |
52,867 |
|
|
60,387 |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accrued salaries and
employee benefits |
$ |
2,045 |
|
|
$ |
5,651 |
|
Accounts payable and
other accrued liabilities |
1,471 |
|
|
2,085 |
|
Total
liabilities |
3,516 |
|
|
7,736 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Redeemable
preferred stock: |
|
|
|
Preferred stock, $0.01
par value, 250,000 shares issued and outstanding as of March 31,
2018 and December 31, 2017; redemption value $250,000 |
249,597 |
|
|
249,546 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock, $0.01 par
value, 5,000,000 authorized shares; 2,830,461 and 1,611,747 shares
issued and outstanding, respectively, as of March 31, 2018 and
2,815,122 and 1,599,210 shares issued and outstanding,
respectively, as of December 31, 2017 |
28 |
|
|
28 |
|
Additional paid-in
capital |
39,025 |
|
|
37,765 |
|
Retained earnings |
33,225 |
|
|
38,970 |
|
Accumulated other
comprehensive loss |
— |
|
|
(1,330 |
) |
Treasury stock, at
cost, 1,218,714 shares as of March 31, 2018 and 1,215,912 shares as
of December 31, 2017 |
(272,524 |
) |
|
(272,328 |
) |
Total
stockholders' deficit |
(200,246 |
) |
|
(196,895 |
) |
Total
liabilities and equity |
$ |
52,867 |
|
|
$ |
60,387 |
|
FOR FURTHER
INFORMATION CONTACT: |
Robin N. Lowe |
Chief Financial
Officer |
T: +1-345-815-9919 |
E:
Robin.Lowe@AltisourceAMC.com |
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