American Home Mortgage Reports Second Quarter Results.Business Editors NEW YORK--(BUSINESS WIRE)--July 31, 2002 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:AHMH AHMH American Home Mortgage Holdings, Inc. )-- -- The Company's Board of Director's approved a 33% increase in the regular quarterly dividend from $0.03 to $0.04 to take effect with the next dividend to be paid in October 2002. -- The Company was added to Russell 2000 equity index on July 1, 2002. Each year, Frank Russell Company ranks U.S. public companies according to total market capitalization at the end of May. Performance of the largest 2,000 companies in the ranking is measured by the Russell 2000 equity index. -- American Home Mortgage raised $37.4 million in June through a secondary offering led by UBS Warburg LLC, Friedman, Billings, Ramsey & Co., Inc., Wedbush Morgan Securities Inc. and Advest, Inc. The proceeds provide the Company with greater liquidity and the necessary proceeds to complete the acquisition of Columbia National. -- The Company announced a new outsourcing agreement with Greater Bay Bancorp, a $7 billion regional bank based in Palo Alto, CA. American Home Mortgage Holdings, Inc. (Nasdaq:AHMH), one of the nation's largest independent retail mortgage bankers 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 said second quarter earnings rose 17% to $6.5 million from $5.6 million in the year-ago period. Earnings rose 63% to $13.2 million from $8.1 million for the first six months of 2002 versus the first six months of 2001, before the cumulative effect of change in accounting principle. FINANCIAL HIGHLIGHTS
-- The Company's Board of Director's approved a 33% increase in the regular quarterly dividend from $0.03 to $0.04 to take effect with the next dividend to be paid in October 2002.
-- The Company was added to Russell 2000 equity index on July 1, 2002. Each year, Frank Russell Company ranks U.S. public companies according to total market capitalization at the end of May. Performance of the largest 2,000 companies in the ranking is measured by the Russell 2000 equity index.
-- American Home Mortgage raised $37.4 million in June through a secondary offering led by UBS Warburg LLC, Friedman, Billings, Ramsey & Co., Inc., Wedbush Morgan Securities Inc. and Advest, Inc. The proceeds provide the Company with greater liquidity and the necessary proceeds to complete the acquisition of Columbia National.
-- The Company announced a new outsourcing agreement with Greater Bay Bancorp, a $7 billion regional bank based in Palo Alto, CA.
OPERATING STATISTICS
Three Months Ended June 30th
------------------------------
2002 2001
-------------- ---------------
Total Loan Originations $2.0 billion $2.1 billion
Retail E-Commerce Loan Originations $262 million $403 million
Loans Sold $2.0 billion $2.1 billion
Applications Accepted $3.3 billion $2.8 billion
End of Period Application Pipeline $3.7 billion $1.8 billion
End of Period Application Pipeline $3.0 billion $1.8 billion
(excluding Columbia National)
Number of Branches 131 55
Six Months Ended June 30th
------------------------------
2002 2001
-------------- ---------------
Total Loan Originations $3.9 billion $3.4 billion
Retail E-Commerce Loan Originations $746 million $604 million
Loans Sold $4.1 billion $3.3 billion
Applications Accepted $6.3 billion $5.8 billion
Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Strauss Strauss (strous, Ger. shtrous), family of Viennese musicians. Johann Strauss, 1804–49, learned to play the violin against his parents' wishes. , chairman and chief executive of American Home Mortgage said, "The second quarter benefited from strong home-buying activity offset by reduced 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. However, we saw a pick-up pick-up Noun 1. a small truck with an open body used for light deliveries 2. Informal a casual acquaintance made for a sexual purpose 3. Informal a. in refinancing Refinancing An extension and/or increase in amount of existing debt. at the end of the second quarter due to lower interest rates." Separately, the Company said it completed the acquisition of Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. National, Inc., based in Columbia, MD, in June June: see month. . By acquiring Columbia National, American Home adds an $8.6 billion servicing portfolio and a fully functioning servicing platform. Columbia National generated $2.8 billion of retail loans last year and operates 57 loan production offices concentrated on the East Coast and Upper Midwest The Upper Midwest is a region of the United States with no universally agreed-upon boundary, but it almost always lies within the US Census Bureau's definition of the Midwest and includes the states of Minnesota and Wisconsin, as well as at least the Upper Peninsula of Michigan. , with its largest lending activity 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). , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , New Jersey and Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . "The addition of Columbia National was the highlight of the second quarter," continued Mr. Strauss. "The acquisition is aligned with our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy, it strengthens our 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. presence and will immediately boost our earnings. It also increases our scale. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma with Columbia, American Home is now one of the nation's 20 largest retail lenders." In other news: -- The Company's Board of Director's approved a 33% increase in the regular quarterly dividend from $0.03 to $0.04 to take effect with the next dividend to be paid in October 2002. -- The Company was added to Russell 2000 equity index on July 1, 2002. Each year, Frank Russell Company ranks U.S. public companies according to total market capitalization at the end of May. Performance of the largest 2,000 companies in the ranking is measured by the Russell 2000 equity index. -- American Home Mortgage raised $37.4 million in June through a secondary offering led by UBS Warburg LLC, Friedman, Billings, Ramsey & Co., Inc., Wedbush Morgan Securities Inc. and Advest, Inc. The proceeds provide the Company with greater liquidity and the necessary proceeds to complete the acquisition of Columbia National. -- The Company announced a new outsourcing agreement with Greater Bay Bancorp, a $7 billion regional bank based in Palo Alto, CA. Third Quarter and Full-Year 2002 Outlook The Company is experiencing a heightened volume of applications during the first month of the third quarter of 2002. Based upon the first 20 business days of July July: see month. , applications for American Home Mortgage without the benefit of Columbia National increased to a run rate of $3.9 billion per quarter, compared to actual application volume of $3.2 billion during the second quarter. Columbia National's quarterly run rate based upon the first 20 business days of July was $1.3 billion. We intend to closely monitor applications flow during the remainder of the third quarter of 2002 and plan on providing additional information as the quarter progresses. The Company also affirms its previous full-year 2002 earnings per share guidance of $1.95 to $2.00. ABOUT AMERICAN HOME MORTGAGE American Home Mortgage Holdings, Inc. is an 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 (1) Not connected to the Internet, online service or internal network. See offline file. (2) Not connected to or not installed in the computer. If a terminal, printer or other device is physically connected to the computer, but is not turned on or in ready mode, it is . Its online operation, MortgageSelect.com is a leader in online closed loan volume, and has outperformed its online competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in terms of profitability. Offline, the Company has grown organically and by acquisition and now has 131 community loan offices across the country. For additional information, please visit the Company's Web site at www.americanhm.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 known 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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-3 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,
------------------------------------------
2002 2001 2002 2001
------------------------------------------
Gain on sale of mortgage
loans $ 34,946 $ 29,479 $ 65,580 $ 50,637
Interest income - net 3,932 2,864 6,929 3,502
Other 1,454 6 1,766 272
------------------------------------------
40,332 32,349 74,275 54,411
------------------------------------------
Salaries, commissions and
benefits, net 17,759 14,944 32,761 25,596
Occupancy and equipment 3,441 2,295 5,822 4,122
Marketing and promotion 1,976 1,522 3,552 2,943
Data processing and
communications 1,614 938 3,049 1,715
Other 5,487 2,982 8,613 5,840
------------------------------------------
30,277 22,681 53,797 40,216
------------------------------------------
Net income before income
taxes and cumulative
Effect of change in
accounting principle 10,055 9,668 20,478 14,195
Income taxes 3,555 4,110 7,275 6,104
------------------------------------------
Net income before cumulative
effect of change
in accounting principle 6,500 5,558 13,203 8,091
Cumulative effect of change
in accounting principle
net of income taxes - - - 2,143
------------------------------------------
Net income $ 6,500 $ 5,558 $ 13,203 $ 10,234
==========================================
Per share data:
Basic before cumulative
effect of change in
accounting principle $ 0.50 $ 0.62 $ 1.06 $ 0.90
Basic after cumulative
effect of change in
accounting principle $ 0.50 $ 0.62 $ 1.06 $ 1.14
Diluted before cumulative
effect of change in
accounting principle $ 0.49 $ 0.59 $ 1.02 $ 0.86
Diluted after cumulative
effect of change in
accounting principle $ 0.49 $ 0.59 $ 1.02 $ 1.09
Weighted average number of
shares - basic 12,912,523 9,002,261 12,491,933 9,001,524
Weighted average number of
shares - diluted 13,397,434 9,491,296 12,977,909 9,379,156
AMERICAN HOME MORTGAGE HOLDINGS, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2002 2001
-------------------------------
Assets
Cash and cash equivalents $ 55,430 $ 26,393
Mortgage loans held for sale - net 465,048 419,900
Mortgage servicing rights - net 105,686 46
Other assets 94,977 54,786
-------------------------------
Total assets $ 721,141 $ 501,125
===============================
Liabilities
Lines of credit:
Warehouse $ 430,417 $ 351,454
Servicing 89,928 -
Other liabilities 71,015 71,054
Stockholders' equity 129,781 78,617
-------------------------------
Total liabilities and stockholders'
equity $ 721,141 $ 501,125
===============================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion