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Altisource Asset Management Corporation Reports First Quarter 2013 Results

FREDERIKSTED, U.S. Virgin Islands, May 9, 2013 (GLOBE NEWSWIRE) -- Altisource Asset Management Corporation ("AAMC") (OTCQX:AAMC) announced today financial and operating results for the first quarter 2013. Net loss attributable to stockholders for the quarter totaled $840,000 or $0.36 per share based on 2.3 million shares outstanding.

First quarter business performance highlights:

  • On February 21, 2013, we completed an acquisition on behalf of Altisource Residential Corporation (Residential) of a portfolio of non-performing residential mortgage loans (NPLs) having aggregate collateral market value of approximately $94.2 million.
  • On March 21, 2013, we completed an acquisition on behalf of Residential of an NPL portfolio having aggregate collateral market value of approximately $38.7 million.
  • On March 22, 2013, on behalf of Residential, we entered into a $100 million Master Repurchase Agreement to finance the acquisition and ownership of sub-performing and non-performing residential mortgage loans and REO properties by Residential.

Subsequent events

On April 5, 2013, we completed an acquisition of behalf of Residential of an NPL portfolio having aggregate collateral market value of approximately $122.1 million.

On May 1, 2013, Residential completed a follow-on equity offering of 17,250,000 shares at $18.75 per share from which Residential received net proceeds of $309.6 million.

Chairman William Erbey stated, "AAMC is off to a solid start with successfully acquiring NPL portfolios that meet Residential's investment criteria, securing financing to leverage Residential's assets and completing an accretive follow-on equity offering to further grow the non-performing loan portfolios for Residential."

"Our recent portfolio acquisitions and financing activities for Residential are important steps in building a sustainable business," said Chief Executive Officer Ashish Pandey.

Webcast and conference call

The Company will host a webcast and conference call on Thursday, May 9, 2013, at 11:30 A.M. Eastern Time to discuss its financial results for the first quarter 2013. The conference call will be webcast live over the internet from the Company's website at www.altisourceamc.com, click on the "Shareholder" section.

About AAMC

AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles that own real estate related assets. Its initial client is Residential, a real estate investment trust that is focused on providing affordable rental homes to families throughout the United States. 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 achieve its business and strategy and 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 Registration Statement on Form 10, its Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

Altisource Asset Management Corporation
(A development stage company)
Consolidated Statement of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three months ended
March 31, 2013
March 15, 2012
(Inception)
to March 31, 2013
Net investment gains:
Net unrealized gains on mortgage loans at fair value $ 1,128 $ 1,128
Net realized gains on mortgage loans at fair value 387 387
Total net investment gains 1,515 1,515
Expenses:
Related party mortgage loan servicing costs 392 392
Interest expense 42 42
General and administrative 2,698 2,833
Related party general and administrative 207 207
Total expenses 3,339 3,474
Net loss (1,824) (1,959)
Net loss attributable to noncontrolling interest in consolidated affiliate 984 1,073
Net loss attributable to common stockholders $ (840) $ (886)
Loss per share of common stock – basic:
Loss per basic share $ (0.36)
Weighted average common stock outstanding – basic 2,343,213
Loss per share of common stock – diluted:
Loss per diluted share $ (0.36)
Weighted average common stock outstanding – diluted 2,343,213

Altisource Asset Management Corporation
(A development stage company)
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
March 31, 2013 December 31, 2012
Assets:
Real estate owned (from consolidated VIE) $ 434 $ —
Mortgage loans at fair value (from consolidated VIE) 87,670
Cash and cash equivalents (including from consolidated VIE $21,947 and $100,005, respectively) 25,894 105,014
Related party receivables (including from consolidated VIE $1,627 and $0, respectively) 1,841 361
Deferred financing costs, net (from consolidated VIE) 1,133
Prepaid expenses and other assets (including from consolidated VIE $635 and $6, respectively) 1,267 440
Total assets 118,239 105,815
Liabilities:
Repurchase agreement (from consolidated VIE) 12,926
Accounts payable and accrued liabilities (including from consolidated VIE $954 and $46, respectively) 1,714 406
Related party payables (including from consolidated VIE $227 and $5, respectively) 328 528
Total liabilities 14,968 934
Commitments and contingencies
Equity:
Common stock, $.01 par value, 5,000,000 authorized shares; and 2,343,213 shares issued and outstanding 23 23
Additional paid-in capital 5,207 4,993
Deficit accumulated during the development stage (886) (46)
Total stockholders' equity 4,344 4,970
Noncontrolling interest in consolidated affiliate 98,927 99,911
Total equity 103,271 104,881
Total liabilities and equity $ 118,239 $ 105,815

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
(A development stage company)
Consolidating Statement of Operations
Three months ended March 31, 2013
(In thousands, unaudited)
Residential
(GAAP)
AAMC Stand-
alone (Non-GAAP)
Consolidating
Entries
AAMC
Consolidated
(GAAP)
Net investment gains:
Net unrealized gains on mortgage loans at fair value $ 1,128 $ — $ — $ 1,128
Net realized gains on mortgage loans at fair value 387 387
Expense reimbursements 895 (895)
Total net investment gains 1,515 895 (895) 1,515
Expenses:
Related party mortgage loan servicing costs 392 392
Interest expense 42 42
Related party general and administrative 1,078 24 (895) 207
General and administrative 987 1,711 2,698
Total expenses 2,499 1,735 (895) 3,339
Net loss (984) (840) (1,824)
Net loss attributable to noncontrolling interest in consolidated affiliate 984 984
Net loss attributable to common stockholders $ (984) $ (840) $ 984 $ (840)

Altisource Asset Management Corporation
(A development stage company)
Consolidating Balance Sheet
March 31, 2013
(In thousands, unaudited)
Residential (GAAP) AAMC Stand-alone
(Non-GAAP)
Consolidating
Entries
AAMC
Consolidated
(GAAP)
Assets:
Real estate owned $ 434 $ — $ — $ 434
Mortgage loans at fair value 87,670 87,670
Cash and cash equivalents 21,947 3,947 25,894
Related party receivables 1,627 626 (412) 1,841
Deferred financing costs, net 1,133 1,133
Prepaid expenses and other assets 635 632 1,267
Total assets 113,446 5,205 (412) 118,239
Liabilities:
Repurchase agreement 12,926 12,926
Accounts payable and accrued liabilities 954 760 1,714
Related party payables 639 101 (412) 328
Total liabilities 14,519 861 (412) 14,968
Commitments and contingencies
Equity:
Common stock 78 23 (78) 23
Additional paid-in capital 99,922 5,207 (99,922) 5,207
Deficit accumulated during the development stage (1,073) (886) 1,073 (886)
Total stockholders' equity 98,927 4,344 (98,927) 4,344
Noncontrolling interest in consolidated affiliate 98,927 98,927
Total equity 98,927 4,344 103,271
Total liabilities and equity $ 113,446 $ 5,205 $ (412) $ 118,239

Altisource Asset Management Corporation
(A development stage company)
Consolidating Balance Sheet
December 31, 2012
(In thousands, unaudited)
Residential
(GAAP)
AAMC Stand-
alone (Non-GAAP)
Consolidating
Entries
AAMC
Consolidated
(GAAP)
Assets:
Cash and cash equivalents $ 100,005 $ 5,009 $ — $ 105,014
Related party receivables 410 (49) 361
Prepaid expenses and other assets 6 434 440
Total assets 100,011 5,853 (49) 105,815
Liabilities:
Accounts payable and accrued liabilities 46 360 406
Related party payables 54 523 (49) 528
Total liabilities 100 883 (49) 934
Commitments and contingencies
Equity:
Common stock 78 23 (78) 23
Additional paid-in capital 99,922 4,993 (99,922) 4,993
Deficit accumulated during the development stage (89) (46) 89 (46)
Total stockholders' equity 99,911 4,970 (99,911) 4,970
Noncontrolling interest in consolidated affiliate 99,911 99,911
Total equity 99,911 4,970 104,881
Total liabilities and equity $ 100,011 $ 5,853 $ (49) $ 105,815

CONTACT: Kenneth D. Najour Chief Financial Officer T: 561-682-8947 E: Kenneth.Najour@AltisourceAMC.comSource:Altisource Asset Management Corporation