CHRISTIANSTED, U.S. Virgin Islands, May 7, 2015 (GLOBE NEWSWIRE) -- Altisource Residential Corporation ("Residential" or the "Company") (NYSE:RESI) today announced financial and operating results for the first quarter of 2015. Net income totaled $12.4 million, or $0.22 per diluted share, for the first quarter of 2015 compared to net income of $41.9 million, or $0.77 per diluted share, for the first quarter of 2014.
Residential also reported estimated taxable income of $21.7 million for the first quarter of 2015 compared to taxable income of $25.8 million for the first quarter of 2014.
2015 highlights to date:
- Declared and paid dividends of $0.63 per share, including an $0.08 per share catch up dividend related to 2014 taxable income.
- Entered into a new asset management agreement with Altisource Asset Management Corporation ("AAMC") that positions Residential for sustainable growth.
- Established a new $100.0 million loan facility to finance REO assets.
- Renewed the repurchase facility with Credit Suisse to increase the funding capacity from $225 million to $275 million with increased REO sublimits.
- Appointed two new mortgage servicers and arranged for the transfer of approximately $1 billion of servicing to the new servicers.
- Resolved an aggregate of 1,069 mortgage loans.
- Increased rental portfolio to 785 properties as of April 30, 2015, including 655 rented properties.
"In the first quarter of 2015, we renegotiated Residential's management agreement with AAMC on favorable terms for Residential and made substantial progress on transferring servicing to new servicers," said President George Ellison. "I believe these are critically important achievements. Despite their negative impact on first quarter results, I believe they will lower our long-term cost of capital and put the Company on a strong foundation to return to growth. As a result, beginning in April we were able to strengthen our financial position by renewing and expanding our financing facilities."
Webcast and conference call
The Company will host a webcast and conference call on Thursday, May 7, 2015, at 8:00 a.m. Eastern Time to discuss its financial results for the first 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 affordable rental homes to families throughout the United States. It acquires single-family properties primarily 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 seeks 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 Annual Report on Form 10-K, its quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission.
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Altisource Residential Corporation Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
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Three months ended March 31, 2015 |
Three months ended March 31, 2014 |
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| Revenues: | ||
| Rental revenues | $ 1,400 | $ 69 |
| Net unrealized gain on mortgage loans | 61,134 | 65,130 |
| Net realized gain on mortgage loans | 15,382 | 9,321 |
| Net realized gain on re-performing mortgage loans | 151 | — |
| Net realized gain on real estate | 10,608 | — |
| Interest income | 240 | 108 |
| Total revenues | 88,915 | 74,628 |
| Expenses: | ||
| Residential property operating expenses | 12,459 | 1,050 |
| Real estate depreciation and amortization | 998 | 48 |
| Real estate selling costs and impairment | 14,691 | 354 |
| Mortgage loan servicing costs | 18,266 | 11,437 |
| Interest expense | 11,643 | 5,708 |
| General and administrative | 4,379 | 1,038 |
| Related party general and administrative | 16,052 | 12,632 |
| Total expenses | 78,488 | 32,267 |
| Other income | 2,000 | — |
| Income before income taxes | 12,427 | 42,361 |
| Income tax expense | 3 | 448 |
| Net income | $ 12,424 | $ 41,913 |
| Earnings per share of common stock – basic: | ||
| Earnings per basic share | $ 0.22 | $ 0.78 |
| Weighted average common stock outstanding – basic | 57,200,889 | 53,436,108 |
| Earnings per share of common stock – diluted: | ||
| Earnings per diluted share | $ 0.22 | $ 0.77 |
| Weighted average common stock outstanding – diluted | 57,406,619 | 54,086,959 |
| Dividends declared per common share | $ 0.63 | $ 0.48 |
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Altisource Residential Corporation Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
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| March 31, 2015 | December 31, 2014 | |
| Assets: | ||
| Real estate held for use: | ||
| Land | $ 21,267 | $ 14,424 |
| Rental residential properties (net of accumulated depreciation of $2,046 and $1,062, respectively) | 86,206 | 60,908 |
| Real estate owned | 456,479 | 457,045 |
| Total real estate held for use, net | 563,952 | 532,377 |
| Real estate assets held for sale | 150,807 | 92,230 |
| Mortgage loans at fair value | 1,853,495 | 1,959,044 |
| Mortgage loans held for sale | 12,485 | 12,535 |
| Cash and cash equivalents | 53,246 | 66,166 |
| Restricted cash | 14,766 | 13,282 |
| Accounts receivable | 10,398 | 10,313 |
| Related party receivables | 24,530 | 17,491 |
| Investment in affiliate | 18,000 | 18,000 |
| Deferred leasing and financing costs, net | 5,384 | 4,251 |
| Prepaid expenses and other assets | 672 | 373 |
| Total assets | $ 2,707,735 | $ 2,726,062 |
| Liabilities: | ||
| Repurchase agreements | $ 929,287 | $ 1,015,000 |
| Other secured borrowings (including $14,991 repurchase agreement with NewSource at December 31, 2014) | 379,840 | 339,082 |
| Accounts payable and accrued liabilities | 42,686 | 11,678 |
| Related party payables | 52,541 | 33,391 |
| Total liabilities | 1,404,354 | 1,399,151 |
| Commitments and contingencies | ||
| Equity: | ||
| Common stock, $.01 par value, 200,000,000 authorized shares; 57,203,211 and 57,192,212 shares issued and outstanding, at March 31, 2015 and December 31, 2014, respectively | 572 | 572 |
| Additional paid-in capital | 1,227,175 | 1,227,091 |
| Retained earnings | 75,634 | 99,248 |
| Total equity | 1,303,381 | 1,326,911 |
| Total liabilities and equity | $ 2,707,735 | $ 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 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(1) | Tax | |
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Three months ended March 31, 2015 |
Three months ended March 31, 2015 |
Three months ended March 31, 2015 |
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| Revenues: | |||
| Rental revenues | $ 1,400 | $ — | $ 1,400 |
| Net unrealized gain on mortgage loans | 61,134 | (13,009) | 48,125 |
| Net realized gains | 26,141 | (13,403) | 12,738 |
| Interest income, advance recoveries and other | 240 | 6,182 | 6,422 |
| Total revenues | 88,915 | (20,230) | 68,685 |
| Expenses: | |||
| Residential property operating expenses including depreciation | 13,457 | (1,952) | 11,505 |
| Mortgage loan servicing costs | 18,266 | (13,295) | 4,971 |
| General, administrative and other | 44,765 | (14,214) | 30,551 |
| Total expenses | 76,488 | (29,461) | 47,027 |
| Estimated income before income taxes | $ 12,427 | $ 9,231 | $ 21,658 |
| (1) Adjustments between GAAP earnings and estimated taxable REIT income primarily represent temporary timing differences in the recognition of revenue and expense items, as provided above. | |||