Aames Financial Corporation Announces March 2004 Quarter Results.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--April 26, 2004 Record quarterly loan production of $1.9 billion Net income of $20.9 million compared to $6.7 million a year ago Aames Aames is a surname and may refer to:
This page or section lists people with the surname Aames. Financial Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMSF AMSF Australian Motor Sport Foundation AMSF Area Maintenance and Supply Facility (US Army) AMSF Army Morale Support Fund AMSF Area Maintenance Support Facility AMSF Army Maintenance Supply Facilities AMSF Alkali Metal Storage Facility ), a 50 year old national subprime mortgage lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. , today reported results of operations for the three and nine months ended March 31, 2004, announcing net income of $20.9 million and $66.7 million, respectively, compared to net income of $6.7 million and $18.7 million, respectively, during the comparable three and nine month periods a year ago. During the three and nine months ended March 31, 2004, diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income to common stockholders was $21.4 million and $68.3 million, respectively, compared to $6.7 million and $18.7 million, respectively, during the comparable three and nine month periods a year ago. Diluted net income per common share was $0.20 and $0.65 during the three and nine months ended March 31, 2004, respectively, compared to diluted net income per common share of $0.07 and $0.20 during the comparable three and nine month periods in 2003, respectively. Net income during the three and nine months ended March 31, 2004 includes income tax benefits of $0.1 million and $18.1 million, respectively. Net income during the three and nine months ended March 31, 2003 is net of income tax provisions of $0.9 million and $3.1 million, respectively. The income tax benefit recognized during the three and nine months ended March 31, 2004 is due to the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of a portion of the Company's available net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. . Net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. is income before income taxes, excluding write-downs of the Company's residual interests Residual Interest A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC). Notes: Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. and debt forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne income. Net operating income during the three months ended March 31, 2004 was $20.8 million, an increase of $13.3 million, or 177.0%, over net operating income of $7.5 million during the comparable three-month period a year ago. Net operating income during the nine months ended March 31, 2004 was $48.7 million, an increase of $22.2 million, or 83.5%, over net operating income of $26.5 million during the comparable nine-month period during 2003. The Company did not record residual interest write-downs or debt forgiveness income during the three months or nine months ended March 31, 2004. During the three months ended March 31, 2003, the Company did not record write-downs to its residual interests but recorded $0.1 million of debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. income. During the nine months ended March 31, 2003, the Company recorded residual interest write-downs of $31.9 million and debt extinguishment income of $27.2 million. In making the announcement, A. Jay Meyerson Meyerson can refer to:
Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased growth in our wholesale and retail loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. channels. Moreover, our increased loan volumes combined with improved operating efficiency contributed to our 177.0% operating income growth during the March 2004 quarter over net operating income during the same period a year ago." Summary of Three Month Financial Results Total revenues Total revenue increased $30.2 million, or 46.2%, to $95.7 million during the three months ended March 31, 2004 over $65.5 million of total revenue during the comparable three-month period a year ago. The $30.2 million increase in total revenue was comprised of increases of $27.7 million, $1.0 million, $0.9 million and $0.6 million in gain on sale of loans, interest income, loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. and origination fees A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. , respectively. Total revenue during the three months ended March 31, 2003 included $0.1 million of debt extinguishment income and there was no such income during the three months ended March 31, 2004. Total expenses Total expenses during the three months ended March 31, 2004 increased $17.0 million, or 29.4%, to $74.9 million over $57.9 million of total expenses during the three months ended March 31, 2003. The increase in total expenses during the three months ended March 31, 2004 over total expenses reported during the comparable three month period a year ago was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to increases of $14.7 million, $3.5 million and $0.5 million in personnel, production and general and administrative expenses, respectively, partially offset by a $1.7 million decrease in interest expense. Summary of Nine Month Financial Results Total revenues Total revenue increased $58.3 million, or 29.6%, to $255.1 million during the nine months ended March 31, 2003 from $196.8 million during the nine months ended March 31, 2003. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased $53.5 million, or 26.5% during the nine months ended March 31, 2004 over operating revenue of $201.6 million during the comparable nine month period in 2003. The $53.5 million increase in operating revenue during the nine months ended March 31, 2004 over the same period a year ago resulted primarily from a $53.9 million and $5.3 million increase in gain on sale of loans and origination fees, respectively, over amounts reported during the same nine month period a year ago which were partially offset by a decrease of $5.7 million interest income from amounts reported in the comparable nine month period in 2003. Loan servicing revenue of $6.3 million during the nine months ended March 31, 2004 was flat compared to the same amount reported during the same nine month period a year ago. Total expenses Total expenses increased $31.3 million, or 17.9%, to $206.4 million during the nine months ended March 31, 2004 over $175.1 million during the nine months ended March 31, 2003. The $31.3 million increase in total expense during the nine months ended March 31, 2004 over total expense during the comparable nine month period in 2003 was attributable to increases of $28.8 million, $7.5 million and $3.8 million in personnel, production and general and administrative expense, respectively, partially offset by a $8.8 million decline in interest expense. Loan Production Total Production. During the three months ended March 31, 2004, the Company originated a total of $1.9 billion of mortgage loans, an increase of $206.7 million, or 12.5%, over the $1.7 billion of total loan production reported during the three months ended December December: see month. 31, 2003, and an increase of $849.4 million, or 83.5% over the $1.0 billion of total loan production during the three months ended March 31, 2003. Total loan production during the nine months ended March 31, 2004 was $5.0 billion, an increase of $1.7 billion, or 52.6 %, over the $3.3 billion of total mortgage loans originated during the nine months ended March 31, 2003. The Company's continued growth in loan origination volumes has been driven by continued strong demand for sub-prime mortgage products, growth of the Company's wholesale and retail sales forces, improved marketing results, and geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion of our wholesale channel. Total Retail Production. The Company's total retail production was $586.5 million during the three months ended March 31, 2004, a decrease of $5.3 million, or 0.1 %, from the $591.9 million reported during the three months ended December 31, 2003, and an increase of $192.3 million, or 48.8%, over the $394.2 million of total retail production during the three months ended March 31, 2003. During the nine months ended March 31, 2004, total retail production increased $392.5 million, or 28.8%, to $1.8 billion over the $1.4 billion of total retail production during the nine months ended March 31, 2003. Total Broker Production. The Company's total broker loan production during the three months ended March 31, 2004 was $1.3 billion, an increase of $212.1 million, or 19.9%, over the $1.1 billion of total broker production reported during the three months ended December 31, 2003, and an increase of $657.1 million, or 105.6%, over the $622.6 million of total broker loan production during the three months ended March 31, 2003. Total broker loan production during the nine months ended March 31, 2003 was $3.3 billion an increase of $1.3 million, or 69.3%, over the $1.9 billion of total broker production reported during the nine months ended March 31, 2003. Loans dispositions and loan servicing Loan Dispositions The Company's total loan dispositions were $1.8 billion during the three months ended March 31, 2004, an increase of $48.8 million, or 2.8%, over $1.7 billion of total loan dispositions during the three months ended December 31, 2003, and an increase of $515.3 million, or 41.3%, over $1.2 billion of total loan dispositions during the three months ended March 31, 2003. During the nine months ended March 31, 2004, total loan dispositions increased $1.3 billion, or 39.5%, to $4.7 billion over $3.3 billion of total loan dispositions during the comparable nine month period a year ago. All of the Company's loan dispositions during the three and nine months ended March 31, 2004 were in the form of whole loan sales for cash with servicing released. The Company's increased loan dispositions during the three and nine months ended March 31, 2004 over the comparable three and nine month periods a year ago are related to the Company's increased loan origination volumes during the 2004 periods over production levels reported during the comparable three and nine month periods in 2003. During both the three and nine months ended March 31, 2004, the Company relied solely on whole loan sales for cash due to attractive pricing conditions prevailing in the whole loans markets during such periods. During the three months ended March 31, 2003, all of the Company's loan dispositions were in the form of whole loan sales for cash. Of the $3.3 billion of total mortgage loan dispositions during the nine months ended March 31, 2003, the Company securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. $315.0 million of mortgage loans and sold $3.0 billion of mortgage loans in whole loan sales for cash. All of the Company's loan dispositions during the three and nine months ended March 31, 2003 were sold on a servicing released basis. Loan servicing At March 31, 2004 and June June: see month. 30, 2003 the Company's total servicing portfolio was $2.4 billion and $1.7 billion, respectively, of which $2.3 billion and $1.7 billion, respectively, or 97.5% and 94.9%, respectively, was serviced in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. . Loans in securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. trusts serviced in-house declined to $260.7 million at March 31, 2004 from $741.0 million at June 30, 2003 due primarily to Company's call and sale of the mortgage loans in securitization trusts and, to a lesser extent, to mortgage loan run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → , during the nine months ended March 31, 2004. The Company's servicing portfolio at March 31, 2004 and June 30, 2003 included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.1 billion and $911.0 million, respectively, of loans serviced for others on an interim basis, which includes loans sold where servicing has yet to be transferred and loans held for sale. The Company's servicing portfolio was $2.0 billion at March 31, 2003, of which $1.9 billion, or 95.3 %, was serviced in-house. Aames Financial Corporation is a 50 year old national sub-prime mortgage lender, and at March 31, 2004 operated 93 retail branches, 2 National Loan Centers and 5 regional broker operations centers The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Forward Looking Statements From time to time the Company may publish forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc such matters as anticipated financial performance, business prospects and similar matters. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance and results of the Company's business include the following: increases in mortgage lending interest rates; adverse changes in the secondary market for mortgage loans; decline in real estate values; decreases in earnings from the Company calling securitization trusts; limited cash flow to fund operations; dependence on short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. financing facilities; obligations to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. mortgage loans and indemnify To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which investors; concentration of operations in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and and Texas; extensive government regulation; concentrated ownership of the Company by a single stockholder; losses in securitization trusts; and intense competition in the mortgage lending industry. For a more complete discussion of these risks and uncertainties, see "Item 7. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations - Risk Factors" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 2003 and subsequent filings by the Company with the United States Securities and Exchange Commission. Additional Information and Where to Find It On March 24, 2004, Aames Investment Corporation, a wholly-owned subsidiary of the Company, filed registration statements with the United States Securities and Exchange Commission in connection with the Company's proposed merger with Aames Investment and the related initial public offering of Aames Investment. These registration statements have not yet become effective. The securities relating to these registration statements may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. This press release shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful Contrary to or unauthorized by law; illegal. When applied to promises, agreements, or contracts, the term denotes that such agreements have no legal effect. The law disapproves of such conduct because it is immoral or contrary to public policy. prior to registration or qualification under the securities laws of any such State. In connection with Aames Investment's proposed merger with the Company, Aames Investment filed a preliminary registration statement on Form S-4, including the preliminary joint proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus constituting a part thereof, with the SEC. Aames Investment will file a final registration statement, including a definitive joint proxy statement/prospectus constituting a part thereof, and other documents with the SEC. Shareholders of the Company are encouraged to read the registration statement and any other relevant documents filed with the SEC, including the joint proxy statement/ prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. that will be part of the registration statement, because they will contain important information about the proposed merger. The final joint proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. prospectus will be mailed to shareholders of the Company. Investors and security holders are able to obtain the documents free of charge at the SEC's web site, www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . After the registration statement containing the joint proxy statement/prospectus is declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. effective by the SEC, the joint proxy statement/prospectus and other documents will be available free of charge by directing a request to John F. Madden mad·den v. mad·dened, mad·den·ing, mad·dens v.tr. 1. To make angry; irritate. 2. To drive insane. v.intr. To become infuriated. , Jr., Secretary, Aames Financial Corporation, 350 South Grand Avenue, 43rd Floor, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , California 90071, or emailing Aames Financial's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at info@aamescorp.com. Participants in Solicitation The Company, Aames Investment, their directors, and certain of their executive officers may be considered participants in the solicitation of proxies in connection with the proposed reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. and information about such registrants' interest therein, including by way of security holdings or otherwise, may be found in the proxy statement for the Company's 2003 annual meeting of stockholders and in the registration statement on Form S-4 filed by Aames Investment, including the definitive proxy statement/prospectus constituting a part thereof that will be sent to the Company's stockholders.
AAMES FINANCIAL CORPORATION and SUBSIDIARIES
Condensed consolidated financial statements
(In thousands, except per share data)
CONDENSED CONSOLIDATED March 31, June 30,
BALANCE SHEETS 2004 2003
-------- --------
(Unaudited) (Audited)
Cash and cash equivalents $17,071 $23,860
Loans held for sale, at
lower of cost or market 797,144 401,001
Advances and other
receivables 22,097 41,315
Residual interests, at
estimated fair value 48,486 129,232
Deferred income taxes 17,190 --
Other assets 25,002 26,604
-------- --------
Total assets $926,990 $622,012
======== ========
Borrowings $82,718 $138,512
Revolving warehouse and
repurchase facilities 699,641 343,675
Accrued dividends on
convertible preferred stock -- 51,232
Other liabilities 35,132 35,619
-------- --------
Total liabilities 817,491 569,038
Stockholders' equity 109,499 52,974
-------- --------
Total liabilities and
stockholders' equity $926,990 $622,012
======== ========
CONDENSED CONSOLIDATED Three Months Ended Nine Months Ended
INCOME STATEMENTS March 31, March 31,
2004 2003 2004 2003
-------- -------- -------- --------
(Unaudited) (Unaudited)
Revenue:
Gain on sale of loans $62,948 $35,157 $153,093 $99,216
Write-down of residual
interests -- -- -- (31,923)
Origination fees 12,980 12,435 45,416 40,125
Loan servicing 2,155 1,252 6,332 6,336
Debt extinguishment income -- 83 -- 27,175
Interest 17,621 16,556 50,217 55,913
-------- -------- -------- --------
Total revenue,
including write-down
of residual interests 95,704 65,483 255,058 196,842
Expenses:
Personnel 46,676 31,904 127,569 98,781
Production 10,333 6,832 26,107 18,647
General and administrative 12,583 12,114 37,557 33,710
Interest 5,315 7,042 15,161 23,933
-------- -------- -------- --------
Total expenses 74,907 57,892 206,394 175,071
-------- -------- -------- --------
Income before income taxes 20,797 7,591 48,664 21,771
Provision (benefit) for
income taxes (93) 900 (18,069) 3,086
-------- -------- -------- --------
Net income $20,890 $6,691 $66,733 $18,685
======== ======== ======== ========
Net income to common shareholders
Basic $18,021 $2,919 $56,548 $9,057
======== ======== ======== ========
Diluted $21,412 $6,691 $68,300 $18,685
======== ======== ======== ========
Net income per common share:
Basic $2.53 $0.44 $8.07 $1.39
======== ======== ======== ========
Diluted $0.20 $0.07 $0.65 $0.20
======== ======== ======== ========
Weighted average number of
common shares outstanding:
Basic 7,120 6,595 7,009 6,530
======== ======== ======== ========
Diluted 104,800 98,339 104,333 92,933
======== ======== ======== ========
AAMES FINANCIAL CORPORATION and SUBSIDIARIES
Supplemental Information
The following table sets forth information regarding basic and
diluted net income to common stockholders and basic and diluted net
income per common share for the three and nine months ended March 31,
2004 and 2003 (amounts in thousands, except per share data):
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
-------- -------- -------- --------
Basic net income per common share:
Net income $20,890 $6,691 $66,733 $18,685
Less: Accrued dividends on
Series B, C and D Convertible
Preferred Stock (2,869) (3,772) (10,185) (9,628)
-------- -------- -------- --------
Basic net income to common
stockholders $18,021 $2,919 $56,548 $9,057
======== ======== ======== ========
Basic weighted average number
of common shares outstanding 7,120 6,595 7,009 6,530
======== ======== ======== ========
Basic net income per common
share $2.53 $0.44 $8.07 $1.39
======== ======== ======== ========
Diluted net income per common share:
Basic net income to common
stockholders $18,021 $2,919 $56,548 $9,057
Plus: Accrued dividends on
Series B, C and D Convertible
Preferred Stock 2,869 3,772 10,185 9,628
Interest on 5.5% Convertible
Preferred Debentures 522 -- 1,567 --
-------- -------- -------- --------
Diluted net income to common
stockholders $21,412 $6,691 $68,300 $18,685
======== ======== ======== ========
Basic weighted average number
of common shares outstanding 7,120 6,595 7,009 6,530
Plus incremental shares from:
Assumed conversion of:
Series B, C and D
Convertible Preferred
Stock 85,061 85,538 85,439 85,547
5.5% Convertible
Subordinated
Debentures 824 -- 824 --
Assumed exercise of:
Warrants 3,684 1,911 3,485 266
Common stock options 8,111 4,295 7,576 590
-------- -------- -------- --------
Diluted weighted average
number of common shares
outstanding 104,800 98,339 104,333 92,933
======== ======== ======== ========
Diluted net income per
common share $0.20 $0.07 $0.65 $0.20
======== ======== ======== ========
The terms 'operating revenue' and 'net operating income' are used
in the accompanying press release. This table reconciles total revenue
in conformity with generally accepted accounting principles ("GAAP")
to operating revenue and, reconciles net operating income to GAAP net
income.
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
-------- -------- -------- --------
(Amounts in thousands)
GAAP revenue $95,704 $65,483 $255,058 $196,842
Add: Write-down of residual
interests -- -- -- 31,923
Less: Debt extinguishment income -- (83) -- (27,175)
-------- -------- -------- --------
Operating revenue 95,704 65,400 255,058 201,590
GAAP expenses (74,907) (57,892) (206,394) (175,071)
-------- -------- -------- --------
Net operating income $20,797 $7,508 $48,664 26,519
Less: Write-down of residual
interests -- -- -- (31,923)
Add: Debt forgiveness income -- 83 -- 27,175
(Add) Less: Provision (benefit)
for income taxes (93) 900 (18,069) 3,086
-------- -------- -------- --------
GAAP net income $20,890 $6,691 $66,733 $18,685
======== ======== ======== ========
AAMES FINANCIAL CORPORATION and SUBSIDIARIES
Supplemental Information
MORTGAGE LOAN PRODUCTION:
(In thousands) Three Months Ended Nine Months Ended
-------------------------------- ---------------------
March 31, Dec. 31, March 31,
2004 2003 2003 2004 2003
---------- ---------- ---------- ---------- ----------
Broker
production(1) $1,279,701 $622,555 $1,067,627 $3,267,923 $1,930,002
Retail
production 586,527 394,238 591,861 1,755,202 1,362,685
---------- ---------- ---------- ---------- ----------
Total mortgage loan
production $1,866,228 $1,016,793 $1,659,488 $5,023,125 $3,292,687
========== ========== ========== ========== ==========
(1) Includes the purchase of closed loans on a flow basis from
correspondents of $-0- million, $6.8 million, and $0.2 million
during the three months ended March 31, 2004 and 2003, and
December 31, 2003, respectively, and $4.1 million and $11.1
million during the nine months ended March 31, 2003 and 2003,
respectively.
LOAN DISPOSITIONS:
(In thousands) Three Months Ended Nine Months Ended
-------------------------------- ---------------------
March 31, Dec. 31, March 31,
2004 2003 2003 2004 2003
---------- ---------- ---------- ---------- ----------
Whole loan
sales $1,763,435 $1,248,096 $1,714,640 $4,664,233 $3,029,769
Loans pooled and
sold in
securitizations -- -- -- -- 314,958
---------- ---------- ---------- ---------- ----------
Total loan
dispositions $1,763,435 $1,248,096 $1,714,640 $4,664,233 $3,344,727
========== ========== ========== ========== ==========
LOAN SERVICING: At
--------------------------------
March 31, June 30,
--------------------- ----------
2004 2003 2003
---------- ---------- ----------
(In millions)
Mortgage loans serviced:
Loans serviced on
an interim
basis $2,074.7 $1,099.3 $911.0
Loans in
securitization
trusts 260.7 852.7 741.0
---------- ---------- ----------
Serviced
in-house 2,335.4 1,952.0 1,652.0
Loans serviced
by others 59.7 96.2 88.0
---------- ---------- ----------
Total servicing
portfolio $2,395.1 $2,048.2 $1,740.0
========== ========== ==========
Percentage
serviced
in-house 97.5% 95.3% 94.9%
========== ========== ==========
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