FREDERIKSTED, U.S. Virgin Islands, July 22, 2014 (GLOBE NEWSWIRE) -- Altisource Residential Corporation ("Residential" or the "Company") (NYSE:RESI) announced today financial and operating results for the second quarter of 2014. Net income for the second quarter of 2014 totaled $67.8 million, or $1.18 per diluted share, compared to net income of $5.2 million, or $0.26 per diluted share, for the second quarter of 2013.
Net income for the six months ended June 30, 2014 totaled $109.7 million, or $1.97 per diluted share, compared to net income of $4.2 million, or $0.29 per diluted share, for the six months ended June 30, 2013.
Residential also reported estimated taxable income of $26.5 million for the second quarter of 2014 compared to taxable income of $3.3 million for the second quarter of 2013 and $25.8 million for the first quarter of 2014.
Second quarter 2014 highlights:
- Agreed to acquire an aggregate of 4,374 non-performing and re-performing mortgage loans having an aggregate market value of underlying properties of $1.23 billion.
- Declared and paid a dividend of $0.45 per share, marking Residential's third consecutive quarterly dividend increase.
- Resolved 1,156 loans, up from 822 loans in the first quarter of 2014.
- Increased rental portfolio to 142 properties, well in excess of target of 100 rental properties by June 30, 2014.
Chairman William Erbey stated, "Residential had a very strong quarter, marking the third consecutive increase in our quarterly dividend."
"We are very pleased with our second quarter results and the execution of our strategic plan. We continue to be focused on acquiring portfolios that grow our rental portfolio while delivering attractive returns to shareholders," said Chief Executive Officer Ashish Pandey.
Webcast and conference call
The Company will host a webcast and conference call on Tuesday, July 22, 2014, at 10:00 a.m. Eastern Time to discuss its financial results for the second quarter of 2014. 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 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 it expects to convert the majority of remaining 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 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, 2014 |
Three months ended June 30, 2013 |
Six months ended June 30, 2014 |
Six months ended June 30, 2013 |
|
| Rental revenues and net gain on investments: | ||||
| Rental revenues | $ 181 | $ — | $ 250 | $ — |
| Net unrealized gain on mortgage loans | 105,042 | 7,165 | 170,172 | 8,293 |
| Net realized gain on mortgage loans | 10,819 | 1,719 | 20,140 | 2,106 |
| Total rental revenues and net gain on investments | 116,042 | 8,884 | 190,562 | 10,399 |
| Expenses: | ||||
| Residential property operating expenses | 3,253 | 84 | 4,303 | 84 |
| Real estate depreciation and amortization | 103 | — | 151 | — |
| Mortgage loan servicing costs | 16,925 | 1,242 | 28,362 | 1,634 |
| Interest expense | 6,945 | 654 | 12,653 | 696 |
| General and administrative | 5,687 | 714 | 7,079 | 1,701 |
| Related party general and administrative | 17,467 | 1,156 | 30,099 | 2,234 |
| Total expenses | 50,380 | 3,850 | 82,647 | 6,349 |
| Other income | 1,698 | 193 | 1,806 | 193 |
| Income before income taxes | 67,360 | 5,227 | 109,721 | 4,243 |
| Income tax (benefit) expense | (422) | — | 26 | — |
| Net income | $ 67,782 | $ 5,227 | $ 109,695 | $ 4,243 |
| Earnings per share of common stock – basic: | ||||
| Earnings per basic share | $ 1.19 | $ 0.27 | $ 1.98 | $ 0.31 |
| Weighted average common stock outstanding – basic | 57,138,695 | 19,374,601 | 55,297,630 | 13,624,599 |
| Earnings per share of common stock – diluted: | ||||
| Earnings per diluted share | $ 1.18 | $ 0.26 | $ 1.97 | $ 0.29 |
| Weighted average common stock outstanding – diluted | 57,401,953 | 20,259,184 | 55,754,685 | 14,522,227 |
| Dividends declared per common share | $ 0.45 | $ — | $ 0.93 | $ — |
|
Altisource Residential Corporation Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
||
| June 30, 2014 | December 31, 2013 | |
| Assets: | ||
| Real estate held for use: | ||
| Land | $ 3,875 | $ 478 |
| Rental residential properties, net | 14,917 | 3,092 |
| Real estate owned | 231,013 | 32,332 |
| Total real estate held for use, net | 249,805 | 35,902 |
| Real estate assets held for sale | 27,572 | 1,186 |
| Mortgage loans | 2,024,028 | 1,207,163 |
| Mortgage loans held for investment | 144,009 | — |
| Cash and cash equivalents | 130,758 | 115,988 |
| Restricted cash | 10,269 | 5,878 |
| Accounts receivable | 631 | 1,428 |
| Related party receivables | 12,608 | 9,260 |
| Investment in affiliate | 18,000 | 18,000 |
| Deferred leasing and financing costs, net | 3,457 | 2,293 |
| Prepaid expenses and other assets | 260 | 1,542 |
| Total assets | $ 2,621,397 | $ 1,398,640 |
| Liabilities: | ||
| Repurchase agreements | $ 1,271,483 | $ 602,382 |
| Accounts payable and accrued liabilities | 7,459 | 4,952 |
| Related party payables | 31,947 | 5,879 |
| Total liabilities | 1,310,889 | 613,213 |
| Commitments and contingencies | — | — |
| Equity: | ||
| Common stock, $.01 par value, 200,000,000 authorized shares; 57,162,071 and 42,286,669 shares issued and outstanding, at June 30, 2014 and December 31, 2013, respectively | 572 | 423 |
| Additional paid-in capital | 1,226,939 | 758,584 |
| Retained earnings | 82,997 | 26,420 |
| Total equity | 1,310,508 | 785,427 |
| Total liabilities and equity | $ 2,621,397 | $ 1,398,640 |
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 never 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 (unaudited, $ in thousands):
| U.S. GAAP | Adjustments | Tax | |
|
Three months ended June 30, 2014 |
Three months ended June 30, 2014 |
Three months ended June 30, 2014 |
|
| Rental revenues and net gain on investments: | |||
| Rental revenues | $ 181 | $ — | $ 181 |
| Net unrealized gain on mortgage loans | 105,042 | (58,655) | 46,387 |
| Net realized gain on mortgage loans | 10,819 | (2,283) | 8,536 |
| Interest income, advance recoveries and other | — | 1,855 | 1,855 |
| Total revenues | 116,042 | (59,083) | 56,959 |
| Expenses: | |||
| Residential property operating expenses | 3,253 | — | 3,253 |
| Real estate depreciation and amortization | 103 | (7) | 96 |
| Mortgage loan servicing costs | 16,925 | (14,581) | 2,344 |
| Interest expense | 6,945 | — | 6,945 |
| General and administrative | 5,687 | (2,774) | 2,913 |
| Related party general and administrative | 17,467 | (841) | 16,626 |
| Total expenses | 50,380 | (18,203) | 32,177 |
| Other income | 1,698 | — | 1,698 |
| Income before income taxes | $ 67,360 | $ (40,880) | $ 26,480 |
|
Six months ended June 30, 2014 |
Six months ended June 30, 2014 |
Six months ended June 30, 2014 |
|
| Rental revenues and net gain on investments: | |||
| Rental revenues | $ 250 | $ — | $ 250 |
| Net unrealized gain on mortgage loans | 170,172 | (84,194) | 85,978 |
| Net realized gain on mortgage loans | 20,140 | (3,405) | 16,735 |
| Interest income, advance recoveries and other | — | 2,854 | 2,854 |
| Total revenues | 190,562 | (84,745) | 105,817 |
| Expenses: | |||
| Residential property operating expenses | 4,303 | — | 4,303 |
| Real estate depreciation and amortization | 151 | (39) | 112 |
| Mortgage loan servicing costs | 28,362 | (23,203) | 5,159 |
| Interest expense | 12,653 | — | 12,653 |
| General and administrative | 7,079 | (3,202) | 3,877 |
| Related party general and administrative | 30,099 | (867) | 29,232 |
| Total expenses | 82,647 | (27,311) | 55,336 |
| Other income | 1,806 | — | 1,806 |
| Income before income taxes | $ 109,721 | $ (57,434) | $ 52,287 |