Altisource Asset Management Corporation Reports Second Quarter 2018 Results
09 August 2018 - 1:30PM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE MKT: AAMC) today announced financial and operating results
for the second quarter of 2018.
Second Quarter 2018 Highlights and
Recent Developments
- Advised Front Yard Residential Corporation (“Front Yard”) on
the acquisition of property management firm HavenBrook Partners,
LLC (“HavenBrook”) as well as the portfolio of 3,236 homes managed
by HavenBrook, increasing Front Yard's single-family rental (“SFR”)
portfolio to approximately 15,000 homes.
- Maintained strong operating metrics for Front Yard.
- Reduced Front Yard's remaining legacy REOs to 190, down 41%
from 320 at March 31, 2018 and down 61% from 490 at December 31,
2017.
- Continued optimization of Front Yard's funding, of which 65%
had fixed or capped rates and 79% had maturities of over three
years.
On August 8, 2018, Front Yard acquired HavenBrook and the
3,236 homes managed by HavenBrook, expanding its SFR portfolio to
approximately 15,000 homes and providing Front Yard with an
internal property management platform. The combined purchase price
was $485.0 million. As part of the internalization of Front Yard's
property management, we negotiated Front Yard's amendment to its
Master Services Agreement with Altisource Portfolio Solutions S.A.
(“ASPS”). Under the amendment, the properties currently managed by
ASPS are expected to be transitioned into the newly acquired
HavenBrook property management platform by December 31, 2018. In
conjunction with this acquisition, Berkadia Commercial Mortgage LLC
provided Front Yard with $508.7 million of 10-year, fixed rate
financing as part of the Freddie Mac's affordable single-family
rental pilot program, further solidifying Front Yard as a leader in
the affordable housing rental market. This financing includes the
transfer of certain properties already owned by Front Yard from its
existing warehouse facilities to the new financing arrangement.
“The completion of this transformative acquisition represents a
significant milestone in Front Yard's evolution,” stated Chief
Executive Officer George Ellison. “Under our guidance, this new
internal property management platform will enable Front Yard to
provide affordable homes and excellent service to its tenants while
driving operating efficiency. As Front Yard begins to realize the
benefits of this structure, we expect positive results for the
shareholders of AAMC.”
Second Quarter 2018 Financial Results
AAMC’s net loss attributable to common stockholders for the
second quarter of 2018 was $1.1 million, or $0.69 per diluted
share, which included a $0.6 million change in the fair value of
our shares of Front Yard common stock, compared to $1.8 million, or
$1.15 per diluted share, for the second quarter of 2017. AAMC’s net
loss attributable to common stockholders for the six months ended
June 30, 2018 was $5.5 million, or $3.44 per diluted share, which
included a $(2.3) million change in the fair value of our shares of
Front Yard common stock, compared to $3.2 million, or $2.03 per
diluted share, for the six months ended June 30, 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 non-rental real
estate owned properties 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;
AAMC’s ability to integrate newly acquired rental assets into Front
Yard’s portfolio; the ability to successfully and efficiently
integrate and manage Front Yard’s newly acquired property manager
or effectively manage the performance of Front Yard’s internal
property manager at the level and/or the cost that it anticipates;
the failure of external property managers to effectively perform
their obligations under their agreements with Front Yard; our
failure to maintain Front Yard’s qualification as a REIT; 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 June 30, |
|
Six months ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
|
|
Management fees from
Front Yard |
$ |
3,644 |
|
|
$ |
3,999 |
|
|
$ |
7,371 |
|
|
$ |
8,210 |
|
Conversion fees from
Front Yard |
53 |
|
|
434 |
|
|
116 |
|
|
1,038 |
|
Expense reimbursements
from Front Yard |
219 |
|
|
210 |
|
|
481 |
|
|
406 |
|
Total
revenues |
3,916 |
|
|
4,643 |
|
|
7,968 |
|
|
9,654 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
4,524 |
|
|
5,281 |
|
|
8,738 |
|
|
9,968 |
|
Legal and professional
fees |
467 |
|
|
336 |
|
|
819 |
|
|
1,020 |
|
General and
administrative |
843 |
|
|
726 |
|
|
1,790 |
|
|
1,883 |
|
Total
expenses |
5,834 |
|
|
6,343 |
|
|
11,347 |
|
|
12,871 |
|
Other income
(loss): |
|
|
|
|
|
|
|
Change in fair value of
Front Yard common stock
|
601 |
|
|
— |
|
|
(2,339 |
) |
|
— |
|
Dividend income on
Front Yard common stock |
243 |
|
|
243 |
|
|
487 |
|
|
487 |
|
Other income |
49 |
|
|
15 |
|
|
92 |
|
|
27 |
|
Total
other income (loss) |
893 |
|
|
258 |
|
|
(1,760 |
) |
|
514 |
|
Loss before income
taxes |
(1,025 |
) |
|
(1,442 |
) |
|
(5,139 |
) |
|
(2,703 |
) |
Income tax expense |
42 |
|
|
300 |
|
|
292 |
|
|
357 |
|
Net
loss |
(1,067 |
) |
|
(1,742 |
) |
|
(5,431 |
) |
|
(3,060 |
) |
Amortization of
preferred stock issuance costs |
(52 |
) |
|
(51 |
) |
|
(103 |
) |
|
(103 |
) |
Net loss
attributable to common stockholders |
$ |
(1,119 |
) |
|
$ |
(1,793 |
) |
|
$ |
(5,534 |
) |
|
$ |
(3,163 |
) |
|
|
|
|
|
|
|
|
Loss per share
of common stock – basic: |
|
|
|
|
|
|
|
Loss per basic
share |
$ |
(0.69 |
) |
|
$ |
(1.15 |
) |
|
$ |
(3.44 |
) |
|
$ |
(2.03 |
) |
Weighted average common
stock outstanding – basic |
1,612,382 |
|
|
1,563,272 |
|
|
1,608,163 |
|
|
1,554,462 |
|
|
|
|
|
|
|
|
|
Loss per share
of common stock – diluted: |
|
|
|
|
|
|
|
Loss per diluted
share |
$ |
(0.69 |
) |
|
$ |
(1.15 |
) |
|
$ |
(3.44 |
) |
|
$ |
(2.03 |
) |
Weighted average common
stock outstanding – diluted |
1,612,382 |
|
|
1,563,272 |
|
|
1,608,163 |
|
|
1,554,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altisource Asset Management
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts)
|
June 30, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
29,266 |
|
|
$ |
33,349 |
|
Short-term
investments |
142 |
|
|
625 |
|
Front Yard common
stock |
16,927 |
|
|
19,266 |
|
Receivable from Front
Yard |
4,252 |
|
|
4,151 |
|
Prepaid expenses and
other assets |
1,371 |
|
|
1,022 |
|
Total
current assets |
51,958 |
|
|
58,413 |
|
Other non-current
assets |
1,484 |
|
|
1,974 |
|
Total
assets |
$ |
53,442 |
|
|
$ |
60,387 |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accrued salaries and
employee benefits |
$ |
3,114 |
|
|
$ |
5,651 |
|
Accounts payable and
other accrued liabilities |
713 |
|
|
2,085 |
|
Total
liabilities |
3,827 |
|
|
7,736 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Redeemable
preferred stock: |
|
|
|
Preferred stock, $0.01
par value, 250,000 shares issued and outstanding as of June 30,
2018 and December 31, 2017; redemption value $250,000 |
249,649 |
|
|
249,546 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock, $0.01 par
value, 5,000,000 authorized shares; 2,832,462 and 1,613,268
sharesissued and outstanding, respectively, as of June 30, 2018 and
2,815,122 and 1,599,210 sharesissued and outstanding, respectively,
as of December 31, 2017 |
28 |
|
|
28 |
|
Additional paid-in
capital |
40,387 |
|
|
37,765 |
|
Retained earnings |
32,106 |
|
|
38,970 |
|
Accumulated other
comprehensive loss |
— |
|
|
(1,330 |
) |
Treasury stock, at
cost, 1,219,194 shares as of June 30, 2018 and 1,215,912 shares as
of December 31, 2017 |
(272,555 |
) |
|
(272,328 |
) |
Total
stockholders' deficit |
(200,034 |
) |
|
(196,895 |
) |
Total
liabilities and equity |
$ |
53,442 |
|
|
$ |
60,387 |
|
|
FOR FURTHER
INFORMATION CONTACT: |
Robin N. Lowe |
Chief Financial
Officer |
T: +1-345-815-9919 |
E:
Robin.Lowe@AltisourceAMC.com |
Altisource Asset Managem... (AMEX:AAMC)
Historical Stock Chart
Von Sep 2024 bis Okt 2024
Altisource Asset Managem... (AMEX:AAMC)
Historical Stock Chart
Von Okt 2023 bis Okt 2024