American Mortgage Acceptance Company Reports First Quarter Financial Results; Net Income Per Common Share Increases 16.3%.Business Editors/Real Estate Writers NEW YORK--(BUSINESS WIRE)--May 7, 2003 American Mortgage Acceptance Company ("AMAC AMAC Adults Molested As Children AMAC Assistance to Mine-Affected Communities AMAC Aircraft Monitor And Control AMAC Approximate Message Authentication Code AMAC American Military Arms Corporation AMAC Asset Management Assistance Center " or the "Company") (AMEX AMEX See: American Stock Exchange :AMC (Advanced Mezzanine Card) See AdvancedTCA. ) today announced financial results for its first quarter ended March 31, 2003. "AMAC had a very solid first quarter from both a financial and operational perspective," commented Stuart Boesky, President and Chief Executive Officer of AMAC. "Maintaining the momentum the Company gained during 2002, AMAC has started the year strongly with a common equity offering and significant investment activity." Financial Highlights For the three months ended March 31, 2003, AMAC had net income of approximately $3.2 million, representing an increase of approximately 49.2% as compared to net income of approximately $2.1 million for the three months ended March 31, 2002. On a per share basis (basic and 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 was $0.50 for the three months ended March 31, 2003, representing an increase in net income per share of approximately 16.3% as compared to $0.43 for the three months ended March 31, 2002. AMAC had total revenues of approximately $4.2 million for the three months ended March 31, 2003, representing an increase of approximately 107.2% as compared to revenues of approximately $2.0 million for the three months ended March 31, 2002. AMAC's present quarterly dividend on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis is $1.60 per share, representing an approximate 10.2% yield on the $15.75 per share closing price on May 6, 2003. First Quarter Portfolio Investment Activity In February 2003, AMAC provided a predevelopment bridge loan of approximately $6.9 million and agreed to provide a $7.3 million rehabilitation rehabilitation: see physical therapy. loan for Noble Tower Apartments, a 195-unit apartment complex in Oakland, California “Oakland” redirects here. For other uses, see Oakland (disambiguation). Oakland (IPA: /ˈoʊklənd/), founded in 1852, is the eighth-largest city in the U.S. . AMAC has received a 1% fee for the bridge loan, which bears an interest rate of 12.0% and matures in July 2005. The Company will receive an additional 1% commitment fee for the rehabilitation loan, when funded, which will bear interest at a rate of 9.75% and is expected to have a term of fifteen months. In March 2003, AMAC partially funded an acquisition bridge loan totaling approximately $11.0 million for Baywoods Apartments, a 128-unit multifamily apartment complex located in Antioch, California Antioch is a suburb of San Francisco and Oakland located in Contra Costa County, California, U.S., in the East Bay region of the San Francisco Bay Area along the San Joaquin-Sacramento River Delta. As of the 2006 estimate, the population is approximately 100,586. . The Company's initial funding was approximately $10.5 million. The loan, which matures in March 2005, bears an interest rate of the 30-day London Inter-Bank Offer Rate ("LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ") plus 400 basis points. AMAC received a 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. fee of 0.625%. Also in March 2003, AMAC partially funded a bridge loan of $1.7 million for The Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. at Gessner, a 288-unit apartment complex located in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . AMAC's initial funding was approximately $1.5 million. The loan, which matures in March 2005, bears an interest rate of 12.0%. AMAC received a 2.0% fee for the bridge loan. Subsequent Investment Activity In April 2003, AMAC partially funded a mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). of $3.3 million for Villas of Highpointe, a 304-unit apartment complex in Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. . AMAC's initial funding was approximately $2.4 million. AMAC received a 5.71% fee for the mezzanine loan, which bears interest at a fixed rate of 11.5% plus, upon conversion to a permanent Fannie Mae Fannie Mae: see Federal National Mortgage Association. loan, an additional 5.0% fixed accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. payable annually. The loan is anticipated to convert to a permanent loan within 22 months following closing and matures 30 years from the permanent loan closing date. In April and May 2003, AMAC made commitments to purchase six Fannie Mae DUS DUS Driving Under Suspension (criminal charge) DUS Dwelling Unit (real estate) DUS Dynamic Underground Stripping DUS Dusseldorf, Germany - Dusseldorf (Airport Code) certificates for an aggregate face amount of approximately $18.9 million. The Fannie Mae DUS certificates are secured by properties in California, Louisiana, Maryland, Massachusetts, Minnesota, and Texas and were purchased at a weighted average yield of 5.6% to AMAC. Loan Repayments In February 2003, AMAC received approximately $10.0 million in proceeds relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Stony Brook Stony Brook may refer to: Massachusetts:
A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. of approximately $331,000, and additional interest of approximately $526,000. In March 2003, the Concord at Palm bridge loan was repaid. AMAC received proceeds in the amount of approximately $3.9 million, which approximated the carrying amount of the bridge loan. Also in March 2003, the Casitas at Montecito Ginnie Mae Ginnie Mae: see Federal National Mortgage Association. certificate was repaid. AMAC received proceeds in the amount of approximately $5.8 million. The carrying amount of the certificate was approximately $6.2 million. As a result of the repayment, AMAC realized a loss of approximately $391,000 due to an unamortized premium that was recorded when the Ginnie Mae certificate was purchased. Interest Rate Swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. In order to minimize the Company's floating interest rate exposure, on March 24, 2003, AMAC entered into a five-year LIBOR interest rate swap with a notional amount The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional. of $30 million, which represents approximately 32% of the outstanding floating rate debt of the Company's repurchase facility at March 31, 2003. The annual fixed interest rate payable by AMAC on this swap is 3.48%. Capital Markets Activity In April 2003, AMAC completed the public offering of 1,955,000 common shares of beneficial interest at a price of $15.00 per share, which includes the full exercise of the over-allotment option. RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
JMP Java Memory Profiler JMP Joint Manpower Program JMP Joint Management Plan JMP Joint Marketing Program JMP JCL Manipulation Program JMP Joint Mission Planning (US DoD) JMP Joint Military Program Securities served as underwriters for the common equity offering. The offering resulted in aggregate 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 $27.6 million to AMAC. Management Conference Call Management will conduct a conference call today to review the Company's first quarter financial results for the period ended March 31, 2003. The conference call is scheduled for 11:00 a.m. Eastern Time. Callers will be invited to ask questions. Investors, brokers, analysts, and shareholders wishing to participate should call (800) 967-7185. For interested individuals unable to join the conference call, a replay of the call will be available through Sunday, May 11, 2003, at (888) 203-1112 (Passcode 523241) or on our website, http://www.americanmortgageco.com, through Wednesday, May 21, 2003. Supplemental Financial Information For more detailed financial information, please access the Supplemental Financial Package, which is available in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the AMAC website at http://www.americanmortgageco.com. About the Company AMAC is a real estate investment trust that specializes in multifamily housing finance. AMAC originates and acquires mezzanine loans, bridge loans, and government-insured first mortgages secured by multifamily housing properties 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. . For more information, please visit our website at http://www.americanmortgageco.com or contact the Shareholder Services Department directly at (800) 831-4826.
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
========== ==========
March December
31, 31,
2003 2002
---------- ---------
(Unaudited)
ASSETS
Investments in mortgage loans, net $ 12,367 $ 22,384
Investments in GNMA certificates-
available for sale 115,773 114,034
Investment in ARCap 20,240 20,240
Real estate owned 7,920 --
Cash and cash equivalents 3,645 10,404
Restricted cash 8,282 --
Notes receivable 42,442 25,997
Accrued interest receivable 1,336 1,170
Other assets 801 834
---------- ---------
Total assets $212,806 $195,063
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Repurchase facilities payable $ 93,565 $ 87,880
Warehouse facility payable 16,997 8,788
Interest rate derivatives 393 --
Accrued interest payable 187 60
Accounts payable and accrued
expenses 350 762
Due to Advisor and affiliates 611 690
Distributions payable 2,545 2,545
---------- ----------
Total liabilities 114,648 100,725
---------- ----------
Commitments and contingencies
Shareholders' equity:
Shares of beneficial interest; $.10
par value;
25,000,000 shares authorized;
6,738,826 issued
and 6,363,630 outstanding in 2003
and 2002 674 674
Treasury shares of beneficial
interest;
375,196 shares (38) (38)
Additional paid-in capital 99,470 99,470
Distributions in excess of net
income (13,824) (14,471)
Accumulated other comprehensive
income 11,876 8,703
---------- ----------
Total shareholders' equity 98,158 94,338
---------- ----------
Total liabilities and shareholders'
equity $212,806 $195,063
========== ==========
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Dollars in thousands except per share amounts)
(Unaudited)
======================
Three Months Ended
March 31,
----------------------
2003 2002
----------------------
Revenues:
Interest income:
Mortgage loans $ 1,407 $ 401
GNMA certificates 1,872 1,084
Notes receivable 918 487
Temporary investments 8 11
Other income 28 60
---------- ----------
Total revenues 4,233 2,043
---------- ----------
Expenses:
Interest 407 272
General and administrative 243 120
Fees to Advisor 443 357
Amortization 77 6
Fannie Mae loan program -- 355
Other 80 --
---------- ----------
Total expenses 1,250 1,110
---------- ----------
Other gain:
Equity in earnings of ARCap 600 592
Net gain (loss) on repayments and sales
of GNMA certificates (391) 614
---------- ----------
Total other gain 209 1,206
---------- ----------
Net income $ 3,192 $ 2,139
========== ==========
Net income per share (basic and diluted) $ .50 $ .43
========== ==========
Weighted average shares outstanding
(basic and diluted) 6,363,630 4,960,852
========== ==========
Certain statements in this press release may constitute 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. within the meaning of the "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. " provisions of 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. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements speak only as of the date of this press release. AMAC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in AMAC's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based. |
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