FREDERIKSTED, U.S. Virgin Islands, Feb. 20, 2014 (GLOBE NEWSWIRE) -- Altisource Residential Corporation ("Residential" or the "Company") (NYSE:RESI) announced today financial and operating results for the fourth quarter and full year of 2013. The Company's net income for the fourth quarter of 2013 totaled $21.6 million, or $0.50 per diluted share.1 Net income for the 2013 full year was $39.6 million, or $1.61 per diluted share.2 Taxable income for the 2013 full year was $17.7 million.
The Company also announced today that its Board of Directors has declared a special cash dividend of $0.08 per share of common stock, or an aggregate of $4.5 million based on shares outstanding. This dividend is intended to satisfy its requirement as a REIT to distribute at least 90% of its annual REIT taxable income to its stockholders for the year ended December 31, 2013. The Company will pay this dividend on March 10, 2014 to all stockholders of record as of the close of business on March 3, 2014.
Fourth quarter 2013 highlights:
- Agreed to acquire three portfolios of non-performing residential mortgage loans ("NPLs") with an aggregate market value of underlying properties of $1.7 billion, representing a 170% increase in underlying property value from the end of the third quarter. Completed purchase of $530 million of these NPLs in December 2013.
- Resolved 288 loans in the fourth quarter versus 118 loans in the third quarter representing a 144% increase.
- Increased the maximum aggregate funding available under our repurchase agreements by an additional $325 million to a total of $750 million.
- Declared and paid a dividend of $0.25 per share.
Full-year 2013 highlights
- Agreed to acquire an aggregate of approximately 13,500 non-performing loans with $2.7 billion in underlying property value.
- Raised $659 million in equity capital at accretive prices.
- Generated cash flow of $22.6 million,³ $4.9 million in excess of its taxable income of $17.7 million.
- Declared and paid $0.35 per share in dividends.
Subsequent event highlights
- Raised $468 million in equity capital at accretive prices.
- Completed purchase of $890 million of NPLs pursuant to fourth quarter agreements.
- Declared a special dividend of $0.08 per share.
Chairman William Erbey stated, "In 2013, we successfully delivered on every critical aspect of our business model. We generated positive cash flow and achieved an average acquisition discount that we believe translates into significant embedded value in our portfolio. I am pleased with what we have been able to accomplish in our first full year of operations."
"The operational and financial results we achieved in 2013 underscore the strength of our business model. We made significant progress in our loan resolution efforts, more than doubling our resolutions in the fourth quarter. We expect to build on the momentum we have gained in developing our single-family rental portfolio," said Chief Executive Officer Ashish Pandey.
Webcast and conference call
The Company will host a webcast and conference call on Thursday, February 20, 2014, at 10:00 a.m. Eastern Standard Time to discuss our financial results for the fourth quarter and full year of 2013. 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" section.
About Residential
Residential is focused on providing affordable rental homes to families throughout the United States. It acquires single-family properties through the purchase of distressed mortgage loan portfolios. Residential's strategy is to work with borrowers to modify and refinance loans to keep them in their homes and convert the majority of loans into renovated rental properties. 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 Registration Statement on Form 10, its Annual Report on Form 10-K, its Registration Statements on Form S-11, its Quarterly Report on Form 10-Q for the first, second and third quarters of 2013 and other filings with the Securities and Exchange Commission.
1 Based on a weighted average of 43.2 million shares outstanding during the fourth quarter.
2 Based on a weighted average of 24.6 million shares outstanding during the year.
3See non-GAAP measures – Generated Cash Flow attached.
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Altisource Residential Corporation Consolidated Statements of Operations ($ in thousands) |
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Three months ended December 31, 2013 |
For the year ended December 31, 2013 |
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| Rental revenues and net gain on investments: | ||
| Rental revenues | $ 30 | $ 36 |
| Net unrealized gain on mortgage loans | 35,129 | 61,092 |
| Net realized gain on mortgage loans | 6,467 | 10,482 |
| Total rental revenues and net gain on investments | 41,626 | 71,610 |
| Expenses: | ||
| Residential rental property operating expenses | 492 | 767 |
| Real estate depreciation and amortization | 21 | 25 |
| Mortgage loan servicing costs | 6,630 | 10,418 |
| Interest expense | 3,405 | 4,568 |
| Related party general and administrative | 8,057 | 12,531 |
| General and administrative | 1,702 | 4,392 |
| Total expenses | 20,307 | 32,701 |
| Other income | 325 | 687 |
| Net income | $ 21,644 | $ 39,596 |
| Earnings per share of common stock – basic: | ||
| Earnings per share basic | $ 0.51 | $ 1.67 |
| Weighted average common stock outstanding – basic (1) | 42,286,669 | 23,734,869 |
| Earnings per share of common stock – diluted: | ||
| Earnings per share diluted | $ 0.50 | $ 1.61 |
| Weighted average common stock outstanding – diluted (1) | 43,172,796 | 24,620,996 |
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Altisource Residential Corporation Consolidated Balance Sheets ($ in thousands) |
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| December 31, 2013 | December 31, 2012 | |
| Assets: | ||
| Real estate assets: | ||
| Land | $ 478 | $ — |
| Rental residential properties, net | 3,092 | — |
| Real estate owned | 32,332 | — |
| 35,902 | — | |
| Real estate assets held for sale | 1,186 | — |
| Mortgage loans | 1,207,163 | — |
| Cash and cash equivalents | 115,988 | 100,005 |
| Restricted cash | 5,878 | — |
| Accounts receivable | 1,428 | — |
| Related party receivables | 9,260 | — |
| Investment in affiliate | 18,000 | — |
| Deferred leasing and financing costs, net | 2,293 | — |
| Prepaid expenses and other assets | 1,542 | 6 |
| Total assets | 1,398,640 | 100,011 |
| Liabilities: | ||
| Repurchase agreements | 602,382 | — |
| Accounts payable and accrued liabilities | 4,952 | 46 |
| Related party payables | 5,879 | 54 |
| Total liabilities | 613,213 | 100 |
| Commitments and contingencies | ||
| Equity: | ||
| Common stock, $.01 par value, 200,000,000 authorized shares; 42,286,669 and 7,810,708 shares issued and outstanding at December 31, 2013 and 2012, respectively | 423 | 78 |
| Additional paid-in capital | 758,584 | 99,922 |
| Retained earnings (accumulated deficit) | 26,420 | (89) |
| Total equity | 785,427 | 99,911 |
| Total liabilities and equity | $ 1,398,640 | $ 100,011 |
Non-GAAP measures - REIT taxable income
REIT taxable income is a measure that we use in connection with monitoring our compliance with certain REIT requirements. 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 REIT taxable income ($ in thousands):
| US GAAP | Adjustments | Tax | |
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For the year ended December 31, 2013 |
For the year ended December 31, 2013 |
For the year ended December 31, 2013 |
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| Rental revenues and net gain on investments: | |||
| Rental revenues | $ 36 | $ — | $ 36 |
| Net unrealized gain on mortgage loans | 61,092 | (35,908) | 25,184 |
| Net realized gain on mortgage loans | 10,482 | (459) | 10,023 |
| Interest income, advance recoveries and other | — | 3,558 | 3,558 |
| Total rental revenues and net gain on investments | 71,610 | (32,809) | 38,801 |
| Expenses: | |||
| Residential rental property operating expenses | 767 | (27) | 740 |
| Real estate depreciation and amortization | 25 | (9) | 16 |
| Mortgage loan servicing costs | 10,418 | (7,586) | 2,832 |
| Interest expense | 4,568 | — | 4,568 |
| Related party general and administrative | 12,531 | (1,391) | 11,140 |
| General and administrative | 4,392 | (1,934) | 2,458 |
| Total expenses | 32,701 | (10,947) | 21,754 |
| Other income | 687 | — | 687 |
| Net income | $ 39,596 | $ (21,862) | $ 17,734 |
Non-GAAP measures – Generated Cash Flow
The Company's generated cash flows, as used in this release, are calculated by adding the following GAAP and non-GAAP numbers ($ in thousands):
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For the year ended December 31, 2013 |
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| Mortgage loan dispositions – GAAP | $ 38,967 |
| Mortgage loan payments – GAAP | 4,901 |
| Real estate tax advances to borrowers – GAAP | (6,472) |
| Changes in receivables from mortgage loan dispositions, payments and real estate tax advances to borrowers, net – GAAP | 9,812 |
| Net cash used in operating activities – GAAP | (22,563) |
| Estimated cost of renovations – non-GAAP estimate | (2,000) |
| Generated cash flow – non-GAAP | $ 22,645 |
Generated cash flow is a measure that we use in connection with monitoring our business. Generated cash flow should not be considered as an alternative to net increase (decrease) in cash and cash equivalents in our consolidated statements of cash.