AmNet Mortgage, Inc. Announces Stock Repurchase Plan.Business Editors/Real Estate Writers SAN DIEGO, Calif.--(BUSINESS WIRE)--May 13, 2004 AmNet Mortgage, Inc. (formerly American Residential Investment Trust, Inc.) (Amex(R):INV INV abbr. in vitro fertilization ), the parent company of American Mortgage Network (AmNet), a wholesale mortgage bank serving mortgage brokers nationwide, announced today that the Board of Directors has authorized the repurchase of up to 400,000 shares of its outstanding common stock contingent upon the completion of the pending sale of its mortgage portfolio assets and receipt of approximately $25 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . The shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. for repurchase represent approximately 5% of the common shares outstanding at March 31, 2004. Repurchases may be made from time to time at prevailing market prices through open market or negotiated block purchase transactions at the discretion of the Company. The timing of the repurchases will depend on market conditions and corporate requirements. The repurchases will be made using the Company's cash resources. John M. Robbins, Chief Executive Officer, stated, "We believe that the value of the Company's net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. is significantly higher than the recent stock price trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. . A stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program is especially compelling while the Company's shares are trading at a substantial discount to our book value. This is prudent utilization of the Company's capital from a portion of the proceeds from the pending sale of the mortgage portfolio. It is an excellent way to leverage our strong balance sheet to enhance stockholder value." The Company reported today that it had decided to sell the majority of the remaining mortgage asset portfolio and focus entirely on the mortgage banking business. Certain portfolio assets were reclassified 'held for sale' as a result of a pending sale of those assets. About AmNet Mortgage, Inc. AmNet Mortgage Inc., formerly American Residential Investment Trust, Inc., is the parent company of American Mortgage Network. For more information, please visit amnetmortgageinc.com. About American Mortgage Network Headquartered in San Diego, AmNet is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AmNet Mortgage, Inc. AmNet originates loans for the national mortgage broker community through its network of branches and business-to-business over the Internet. AmNet has loan production offices in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Minnesota, New Jersey, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Oregon, Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , Texas, Virginia and Washington. AmNet has a total of $1.4 billion in warehouse borrowing capacity and is approved to do business in 49 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). either by license or exemption. AmNet has 5,000 approved broker customers across the nation. For more information, please visit www.amnetmortgage.com. Forward-Looking Statement Certain matters discussed in this press release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding: The timing, financial and operational impact of the sale of a majority of the Company's mortgage asset portfolio; the Company's ability to purchase shares in the open market, the timing of those purchases and use of the Company's cash reserves for these transactions. Actual results and the timing of certain events could also differ materially from those projected in or contemplated by our forward-looking statements due to a number of other factors, including but not limited to: the level of interest rates generally; economic conditions generally; the size of the national mortgage market, including subprime loans; the stability of the subprime mortgage secondary market; the predictability of the Company's expenses and margins; the future correlation of volatility in forward mortgage sale instruments to the Company's loan lock commitments; interest rate volatility; the ability to retain and renew warehouse lending facilities for the funding of mortgage loans, including subprime loans; the Company's liquidity position; the availability of qualified mortgage professionals and other risk factors outlined in the Company's SEC reports. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion