American Home Mortgage Reports Record Second Quarter Results; EPS Exceeds First Call Analyst Consensus.Business Editors NEW YORK--(BUSINESS WIRE)--July 25, 2001 American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Mortgage Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AHMH AHMH American Home Mortgage Holdings, Inc. ), a leading online and offline retail mortgage banker Mortgage Banker A company, individual or institution that originates, sells and services mortgage loans. Notes: Don't confuse a mortgage banker with a mortgage broker. , today reported record results for the second quarter ended June 30, 2001. During the quarter, American Home Mortgage achieved record loan production, revenue, net income, and earnings per share, marking the Company's seventh consecutive quarter of record net income since its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in 1999. FINANCIAL HIGHLIGHTS - Fully diluted earnings per share rose to $0.59, an increase of 321.4% over $0.14 for the same period in 2000. - Total revenue rose to $32.4 million, an increase of 182.1% over $11.5 million for the same period in 2000. - Total loan closings rose to $2.1 billion, an increase of 197.0% over $718 million during the same period in 2000. - Total Internet loan closings rose to $403 million, an increase of 178.7% over $145 million for the same period in 2000. - Net income rose to $5.6 million, an increase of 369.5% over $1.2 million during the same period in 2000. "We are very excited about the second quarter's results," said Michael Strauss, Chairman, President, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Home Mortgage. "We have consistently achieved record net income on a quarter over quarter basis since our IPO in 1999. However, it is important to note that the quarter's results were particularly enhanced by extraordinary refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. activity. As the year proceeds, and refinancings begin to taper off Verb 1. taper off - end weakly; "The music just petered out--there was no proper ending" fizzle, fizzle out, peter out discontinue - come to or be at an end; "the support from our sponsoring agency will discontinue after March 31" 2. , our results should return to more normal levels, as we previously discussed last quarter. We reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re our guidance of annual earnings in excess of $1.50 per share on a go-forward basis." "For the remainder of 2001, we expect quarterly EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. results of $0.35 to $0.40 per share. Our diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d focus on our three main growth drivers - - continued accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. , growth of our Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the business, and organic growth in our existing branches - - has taken us to our projected run-rate of $1.50 per share for 2001. We intend to pursue this strategy with the goal of achieving continued rapid growth in 2002." CORPORATE HIGHLIGHTS - The Company's board of directors declared a regular quarterly dividend of $0.03 per share. The dividend, the second in fiscal year 2001, was payable on July 24, 2001, to shareholders of record as of July 13, 2001. - The Company raised 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). of approximately $23 million through the sale of 2,400,000 shares of common stock in an offering that settled July 3, 2001. These proceeds will be used for general corporate purposes including working capital, acquisitions, and capital expenditures. - The Company closed on the acquisition of ComNet Mortgage, thereby acquiring three loan production branches in Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , and two in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . - The Company's Internet channel The Internet Channel is a version of the Opera 9 web browser for use on the Wii by Opera Software and Nintendo.[1] On December 22, 2006, a free beta version (promoted as a "trial version") of the browser was released. , MortgageSelect.com, entered into four new partnership agreements including outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. agreements with Sterling Bank, Madison Bank, and Insurers Bank, as well as becoming a key lender on Planet Realtor Realtor In the United States a designation used to describe a member of the National Association of Realtors (NAR). Notes: The term "realtor" is a registered trademark and encompasses agents, brokers and associates who are members of a real-estate firm associated with . - MortgageSelect.com loan production reached $403 million, up from $201 million during the first quarter. - The Company launched its concierge service, American Home Solutions, that provides homebuyers and homeowners with an easy, one-step home buying experience through added savings and solutions. ABOUT AMERICAN HOME MORTGAGE American Home Mortgage Holdings is a leading independent retail originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting of residential mortgage loans both online and offline. Its online operation, MortgageSelect.com is a leader in online closed loan volume, and has outperformed its online competitors in terms of profitability. Offline, the Company has grown organically and by acquisition and now has 55 community loan offices across the country. For additional information please visit the Company's Website at www.mortgageselect.com. 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. Statement under 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: This news release contains statements about future events and expectations, which are "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. ." Any statement in this release that is not a statement of historical fact, including, but not limited to earnings guidance and forecasts, and projections of financial results, may be deemed to be a forward-looking statement. Such forward-looking statements involve know and unknown risks, uncertainties and other factors which may cause the company's actual results to be materially different from any future results, performance or achievements expresses or implied by such forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: the potential fluctuations in the company's operating results; the company's potential need for additional capital, the direction of interest rates and their subsequent effect on the company's business, federal and state regulation of mortgage banking; the company's competition; the company's ability to attract and retain skilled personnel; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission.
AMERICAN HOME MORTGAGE HOLDINGS, INC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------- --------
2001 2000 2001 2000
---- ---- ---- ----
Gain on sale
of mortgage loans $ 29,480 $ 9,838 $ 50,637 $ 17,870
Interest income - net 2,864 981 3,502 1,920
Other 6 648 272 1,144
--------- -------- --------- --------
32,350 11,467 54,411 20,934
--------- -------- --------- --------
Salaries, commissions
and benefits, net 14,944 5,224 25,596 9,597
Occupancy and equipment 2,295 1,303 4,123 2,379
Marketing and promotion 1,522 490 2,943 935
Provision for loss 54 49 84 49
Other 3,867 2,287 7,470 4,274
------- ------ ------ ------
22,682 9,353 40,216 17,234
-------- ------ ------- -------
Net income
before income taxes 9,668 2,114 14,195 3,700
Income taxes 4,110 930 6,104 1,628
------ ----- ------ -----
Net income before
income taxes and
cumulative effect
of change in
accounting principle 5,558 1,184 8,091 2,072
Cumulative effect of
change in
accounting principle
net of income taxes - - 2,143 -
------- -------- -------- -------
Net income $ 5,558 $ 1,184 $ 10,234 $ 2,072
======= ======== ======== =======
Per share data:
Basic before cumulative
effect of change in
accounting principle $ 0.62 $ 0.14 $ 0.90 $ 0.25
Basic after cumulative
effect of change in
accounting principle $ 0.62 $ 0.14 $ 1.14 $ 0.25
Diluted before
cumulative effect of
change in accounting
principle $ 0.59 $ 0.14 $ 0.86 $ 0.25
Diluted after
cumulative effect of
change in accounting
principle $ 0.59 $ 0.14 $ 1.09 $ 0.25
Weighted average
number of
shares - basic 9,002,261 8,292,129 9,001,524 8,289,438
Weighted average
number of
shares - diluted 9,491,296 8,292,129 9,379,156 8,289,438
AMERICAN HOME MORTGAGE HOLDINGS, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2001 2000
---- ----
(unaudited)
Assets
Cash and cash equivalents $ 6,609 $ 6,005
Mortgage loans
held for sale - net 248,208 143,967
Other assets 40,519 33,560
-------------- -----------------
Total assets $ 295,336 $ 183,532
============== =================
Liabilities
Warehouse lines of credit $ 208,591 $ 130,484
Other liabilities 49,847 26,437
Stockholders' equity 36,898 26,611
-------------- -----------------
Total liabilities and
stockholders' equity $ 295,336 $ 183,532
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