CHRISTIANSTED, U.S. Virgin Islands, Aug. 10, 2015 (GLOBE NEWSWIRE) -- Altisource Residential Corporation (“Residential” or the “Company”) (NYSE:RESI) today announced financial and operating results for the second quarter of 2015.
Second Quarter 2015 Highlights:
- Estimated taxable income for the second quarter of 2015 increased by 42% to $37.7 million, from $26.5 million for the second quarter of 2014.
- Declared and paid a $0.55 per share dividend.
- Agreed to purchase up to 1,325 single-family rental homes from Invitation Homes for an aggregate purchase price of $112.6 million. Transaction expected to close in August 2015.
- Completed a third non-performing loan securitization in June 2015.
- Transferred servicing of 4,342 loans with an aggregate UPB of $1.2 billion to our two new mortgage servicers.
- Sold 189 re-performing mortgage loans for total proceeds of $34.6 million.
- Asset management fees reduced to $5.2 million in the second quarter of 2015 from $15.5 million in the second quarter of 2014.
- Initiated a program to acquire rental properties on a one-by-one basis using a proprietary valuation model. Expect to commence purchases in the third quarter of 2015.
“In the second quarter of 2015, we took crucial steps to diversify Residential’s acquisition strategies to anticipate and respond to changing market conditions and grow our single-family rental portfolio,” said Chief Executive Officer George G. Ellison. “I believe these critical achievements position Residential to be one of the preeminent single-family rental players in the industry. We are also undertaking grass root efforts to offer quality, affordable rental homes to working class families while offering incentives and beneficial programs for our renters to improve their credit ratings and provide with them opportunities to improve their living situations.”
Second Quarter 2015 Financial Results
Net income totaled $13.1 million, or $0.23 per diluted share, for the second quarter of 2015 compared to net income of $67.8 million, or $1.18 per diluted share, for the second quarter of 2014. Net income for the six months ended June 30, 2015 totaled $25.5 million, or $0.44 per diluted share, compared to net income of $109.7 million, or $1.97 per diluted share, for the six months ended June 30, 2014.
Webcast and conference call
The Company will host a webcast and conference call on Monday, August 10, 2015, at 8:30 a.m. Eastern Time to discuss its financial results for the second quarter of 2015. The conference call will be webcast live over the internet from the Company’s website at www.altisourceresi.com and can be accessed by clicking on the “Shareholders” link.
About Residential
Residential is focused on providing quality, affordable rental homes to families throughout the United States. Additional information is available at www.altisourceresi.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. Residential 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: Residential’s ability to implement its business plan; Residential’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 Residential’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 Residential Corporation | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three months ended June 30, 2015 | Three months ended June 30, 2014 | Six months ended June 30, 2015 | Six months ended June 30, 2014 | ||||||||||||
| Revenues: | |||||||||||||||
| Rental revenues | $ | 2,140 | $ | 181 | $ | 3,540 | $ | 250 | |||||||
| Net unrealized gain on mortgage loans | 42,209 | 105,042 | 103,343 | 170,172 | |||||||||||
| Net realized gain on mortgage loans | 19,272 | 10,819 | 34,654 | 20,140 | |||||||||||
| Net realized gain on re-performing mortgage loans | 254 | — | 405 | — | |||||||||||
| Net realized gain on real estate | 12,404 | 1,234 | 23,012 | 1,234 | |||||||||||
| Interest income | 240 | 81 | 480 | 189 | |||||||||||
| Total revenues | 76,519 | 117,357 | 165,434 | 191,985 | |||||||||||
| Expenses: | |||||||||||||||
| Residential property operating expenses | 16,857 | 3,253 | 29,316 | 4,303 | |||||||||||
| Real estate depreciation and amortization | 1,344 | 103 | 2,342 | 151 | |||||||||||
| Real estate selling costs and impairment | 8,839 | 2,879 | 23,530 | 3,233 | |||||||||||
| Mortgage loan servicing costs | 16,246 | 16,925 | 34,512 | 28,362 | |||||||||||
| Interest expense | 13,398 | 6,945 | 25,041 | 12,653 | |||||||||||
| General and administrative | 1,569 | 2,808 | 6,350 | 3,846 | |||||||||||
| Related party general and administrative | 5,151 | 17,467 | 20,801 | 30,099 | |||||||||||
| Total expenses | 63,404 | 50,380 | 141,892 | 82,647 | |||||||||||
| Other income | — | 383 | 2,000 | 383 | |||||||||||
| Income before income taxes | 13,115 | 67,360 | 25,542 | 109,721 | |||||||||||
| Income tax expense (benefit) | 23 | (422 | ) | 26 | 26 | ||||||||||
| Net income | $ | 13,092 | $ | 67,782 | $ | 25,516 | $ | 109,695 | |||||||
| Earnings per share of common stock – basic: | |||||||||||||||
| Earnings per basic share | $ | 0.23 | $ | 1.19 | $ | 0.45 | $ | 1.98 | |||||||
| Weighted average common stock outstanding – basic | 57,208,273 | 57,138,695 | 57,204,602 | 55,297,630 | |||||||||||
| Earnings per share of common stock – diluted: | |||||||||||||||
| Earnings per diluted share | $ | 0.23 | $ | 1.18 | $ | 0.44 | $ | 1.97 | |||||||
| Weighted average common stock outstanding – diluted | 57,407,845 | 57,401,953 | 57,407,253 | 55,754,685 | |||||||||||
| Dividends declared per common share | $ | 0.55 | $ | 0.45 | $ | 1.18 | $ | 0.93 | |||||||
| Altisource Residential Corporation | |||||||
| Consolidated Balance Sheets | |||||||
| (In thousands, except share and per share amounts) | |||||||
| (Unaudited) | |||||||
| June 30, 2015 | December 31, 2014 | ||||||
| Assets: | |||||||
| Real estate held for use: | |||||||
| Land | $ | 23,743 | $ | 14,424 | |||
| Rental residential properties (net of accumulated depreciation of $3,351 and $1,062, respectively) | 97,533 | 60,908 | |||||
| Real estate owned | 548,137 | 457,045 | |||||
| Total real estate held for use, net | 669,413 | 532,377 | |||||
| Real estate assets held for sale | 134,027 | 92,230 | |||||
| Mortgage loans at fair value | 1,716,489 | 1,959,044 | |||||
| Mortgage loans held for sale | 5,977 | 12,535 | |||||
| Cash and cash equivalents | 70,502 | 66,166 | |||||
| Restricted cash | 18,459 | 13,282 | |||||
| Accounts receivable | 45,981 | 10,313 | |||||
| Related party receivables | — | 17,491 | |||||
| Investment in affiliate | 18,000 | 18,000 | |||||
| Deferred leasing and financing costs, net | 8,605 | 4,251 | |||||
| Prepaid expenses and other assets | 6,184 | 373 | |||||
| Total assets | $ | 2,693,637 | $ | 2,726,062 | |||
| Liabilities: | |||||||
| Repurchase and loan and security agreements | $ | 810,236 | $ | 1,015,000 | |||
| Other secured borrowings (including $14,991 repurchase agreement with NewSource at June 30, 2015 and December 31, 2014) | 538,916 | 339,082 | |||||
| Accounts payable and accrued liabilities | 54,247 | 11,678 | |||||
| Related party payables | 5,163 | 33,391 | |||||
| Total liabilities | 1,408,562 | 1,399,151 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Common stock, $.01 par value, 200,000,000 authorized shares; 57,216,166 and 57,192,212 shares issued and outstanding, at June 30, 2015 and December 31, 2014, respectively | 572 | 572 | |||||
| Additional paid-in capital | 1,227,246 | 1,227,091 | |||||
| Retained earnings | 57,257 | 99,248 | |||||
| Total equity | 1,285,075 | 1,326,911 | |||||
| Total liabilities and equity | $ | 2,693,637 | $ | 2,726,062 | |||
Non-GAAP measures - Estimated REIT taxable income
Estimated REIT taxable income is a measure that we use in connection with monitoring our compliance with certain REIT requirements. Estimated REIT taxable income should not be considered as an alternative to net income or net income per share as indicators of our operating performance.
The following table is a reconciliation of U.S. GAAP net income to estimated REIT taxable income ($ in thousands):
| Three months ended June 30, 2015 | Six months ended June 30, 2015 | ||||||
| Income before income taxes | $ | 13,115 | $ | 25,542 | |||
| Add net loss of taxable REIT subsidiaries | 9,119 | 14,066 | |||||
| Adjusted net income | 22,234 | 39,608 | |||||
| Book to tax differences: | |||||||
| Net unrealized gain on mortgage loans | 5,598 | (7,051 | ) | ||||
| Net realized gain on mortgage loans | (1,411 | ) | (4,255 | ) | |||
| Net realized gain on re-performing mortgage loans | 194 | 112 | |||||
| Net realized gain on real estate sold | (13,175 | ) | (23,974 | ) | |||
| Interest income, advances and recoveries | 8,432 | 14,614 | |||||
| Depreciation | (254 | ) | 100 | ||||
| Valuations and impairments | 3,743 | 14,451 | |||||
| Mortgage loan servicing cost | 12,301 | 25,461 | |||||
| Acquisition fees and due diligence | (92 | ) | 36 | ||||
| Other book/tax differences, net | 97 | 223 | |||||
| Estimated REIT taxable income | $ | 37,667 | $ | 59,325 | |||