American Mortgage Acceptance Company Reports Fourth Quarter and Year-End Results for 2005.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 -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of 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 fourth quarter and year ended December December: see month. 31, 2005. "AMAC performed very well in 2005, demonstrating the strength and viability of the Company's business model," commented Marc D. Schnitzer Schnitzer is a German word meaning "carver" and is the surname of:
n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by our solid origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume, which increased 56.2% over our origination volume in 2004. We are well positioned to achieve our expansion plans for 2006." Financial Highlights AMAC reported total revenues of approximately $8.2 million for the three months ended December 31, 2005, representing an increase of approximately 54.6% as compared to revenues of approximately $5.3 million for the three months ended December 31, 2004. AMAC's total revenues for the twelve months ended December 31, 2005 was approximately $36.1 million, representing an increase of 64.2% as compared to revenues of approximately $22.0 million for the twelve months ended December 31, 2004. As previously reported during September September: see month. 2005, a Ginnie Mae Ginnie Mae: see Federal National Mortgage Association. Certificate ("GNMA GNMA abbr. Government National Mortgage Association ") and 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). were prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. . In
connection with the prepayment Prepayment1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. , AMAC received fees related to the prepayment of approximately $5.6 million. As AMAC's 2005 financial results include the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. impact of this one-time prepayment, the Company is reporting revenues, net income and Funds from Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. both including and excluding ("adjusted") the incremental impact of the prepayment. AMAC's total adjusted revenues were approximately $30.6 million for the twelve months ended December 31, 2005, representing an increase of approximately 38.8% as compared to revenues of approximately $22.0 million for the twelve months ended December 31, 2004. The substantial growth in our annual revenues in 2005 (exclusive of the prepayment fees) resulted primarily from increases in investment activity and the recognition of rental revenue for real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . For the three months ended December 31, 2005, AMAC earned net income of approximately $2.0 million, representing an increase of 50.4% as compared to net income of approximately $1.3 million for the three months ended December 31, 2004. 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 $0.24 for the three months ended December 31, 2005, representing an increase of 50.0% as compared to net income of $0.16 for the three months ended December 31, 2004. For the twelve months ended December 31, 2005, AMAC earned net income of approximately $15.2 million, representing an increase of 35.1% as compared to net income of approximately $11.3 million for the twelve months ended December 31, 2004. On a per share basis (basic and diluted), net income was $1.83 for the twelve months ended December 31, 2005, representing an increase of 35.6% as compared to $1.35 for the twelve months ended December 31, 2004. AMAC earned adjusted net income of approximately $10.9 million for the twelve months ended December 31, 2005, representing a decrease of approximately 3.2% as compared to net income of approximately $11.3 million for the twelve months ended December 31, 2004. On a per share basis (basic and diluted), adjusted net income was $1.31 for the twelve months ended December 31, 2005, representing a decrease of 3.0% as compared to net income of $1.35 for the twelve months ended December 31, 2004. Adjusted net income was impacted by financing costs (particularly due to higher interest rates), and Advisory fees due to higher profits and an increased asset base. In addition, the net amount of earnings from real estate owned declined due to the refinancing Refinancing An extension and/or increase in amount of existing debt. of a portion of the portfolio, leading to a decline in AMAC's economic interests in the real estate. Funds from Operations ("FFO FFO See: Funds from operations ") for the three months ended December 31, 2005 was approximately $3.4 million, representing an increase of approximately 8.1% as compared to FFO of approximately $3.1 million for the three months ended December 31, 2004. On a per share basis (basic and diluted), FFO was $0.41 for the three months ended December 31, 2005, representing an increase of 10.8% as compared to FFO of $0.37 for the three months ended December 31, 2004. FFO for the twelve months ended December 31, 2005 was approximately $17.6 million, representing an increase of approximately 31.4% as compared to FFO of approximately $13.4 million for the twelve months ended December 31, 2004. On a per share basis (basic and diluted), FFO was $2.12 for the twelve months ended December 31, 2005, representing an increase of 31.7% as compared to FFO of $1.61 for the twelve months ended December 31, 2004. Adjusted FFO for the twelve months ended December 31, 2005 was approximately $13.3 million, representing a decrease of approximately 0.9% as compared to FFO of approximately $13.4 million for the twelve months ended December 31, 2004. On a per share basis (basic and diluted), adjusted FFO was $1.60 for the twelve months ended December 31, 2005, representing a decrease of 0.6% as compared to FFO of $1.61 for the twelve months ended December 31, 2004. The adjusted FFO results were impacted by the same cost factors that affected adjusted net income results. 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 10.5% yield on the $15.25 per share closing price on February 27, 2006. Investment Activity During the fourth quarter of 2005, AMAC acquired four Fannie Mae Fannie Mae: see Federal National Mortgage Association. certificates with principal amounts totaling approximately $23.5 million and originated a $5.0 million subordinated interest in a first mortgage loan. Overall, for the twelve months ended December 31, 2005, AMAC's investment activity included: --Approximately $24.4 million of floating rate mezzanine loans, $21.9 million of which has been funded through December 31, 2005; --Approximately $10.6 million of fixed rate mezzanine loans, $7.5 million of which has been funded through December 31, 2005; --Approximately $7.5 million of first mortgage loans; --A $5.0 million subordinated interest in a first mortgage loan; and --$61.7 million of Fannie Mae certificates. Management Conference Call Management will conduct a conference call today to review the Company's fourth quarter and year-end financial results for the period ended December 31, 2005. 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) 946-0720. For interested individuals unable to join the conference call, a replay of the call will be available through Saturday, March 4, 2006, at (888) 203-1112 (Passcode 7412150) or on our website, http://www.americanmortgageco.com, through Tuesday, March 14, 2006. Supplemental Financial Information For more detailed financial information, please access the Supplemental Financial Package, which will be 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 commercial real estate finance. AMAC originates and acquires first mortgage loans, mezzanine loans, bridge loans, and government-insured first mortgages secured by 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
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
============================
December 31, December 31,
2005 2004
============ ============
Financial Position
Total assets $400,723 $349,033
Repurchase facilities payable $209,101 $157,633
Warehouse facility payable $ 4,070 $ 3,827
Line of credit - related party $ -- $ 4,600
Mortgages payable on real estate owned $ 40,487 $ 56,993
Preferred shares of subsidiary
(subject to mandatory repurchase) $ 25,000 $ --
Total liabilities $286,540 $228,501
Total shareholders' equity $114,183 $120,532
-------- --------
======================================
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
================== ===================
Operations
Total revenues $ 8,237 $ 5,328 $ 36,143 $ 22,011
Adjusted total revenues(a) $ 8,237 $ 5,328 $ 30,562 $ 22,011
Net income $ 2,027 $ 1,348 $ 15,235 $ 11,273
Adjusted net income(a) $ 2,027 $ 1,348 $ 10,909 $ 11,273
Net income per share
(basic and diluted) $ 0.24 $ 0.16 $ 1.83 $ 1.35
Adjusted net income per share
(basic and diluted)(a) $ 0.24 $ 0.16 $ 1.31 $ 1.35
Weighted average shares outstanding
Basic 8,307 8,336 8,316 8,336
Diluted 8,307 8,336 8,317 8,343
------- ------- -------- --------
(a) Excludes incremental earnings in 2005 from the prepayment of
GNMA and related mezzanine investments.
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
Funds from Operations ("FFO")(1), as calculated in accordance with
the National Association of Real Estate Investment Trusts ("NAREIT")
definition, for the three and twelve months ended December 31, 2005
and 2004, is summarized in the following table:
======================================
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
================== ===================
Net Income $ 2,027 $ 1,348 $ 15,235 $ 11,273
Depreciation of real property 1,351 1,776 2,389 2,143
FFO $ 3,378 $ 3,124 $ 17,624 $ 13,416
Adjusted FFO(a) $ 3,378 $ 3,124 $ 13,298 $ 13,416
Cash flows from
operating activities $ 2,985 $ 3,683 $ 18,036 $ 14,032
Cash flows from
investing activities $ 2,745 $(34,388) $(64,512)$(22,592)
Cash flows from
financing activities $(11,475)$ 20,944 $ 55,016 $ 9,206
FFO per share
(basic and diluted) $ 0.41 $ 0.37 $ 2.12 $ 1.61
Adjusted FFO per share
(basic and diluted)(a) $ 0.41 $ 0.37 $ 1.60 $ 1.61
Weighted average shares outstanding
Basic 8,307 8,336 8,316 8,336
Diluted 8,307 8,336 8,317 8,343
-------- -------- -------- --------
(a) Excludes incremental earnings in 2005 from the prepayment of
GNMA and related mezzanine investments.
(1) FFO represents net income or loss (computed in accordance with
generally accepted accounting principles ("GAAP")), excluding gains
(or losses) from sales of property, excluding depreciation and
amortization related to real property and including funds from
operations for unconsolidated joint ventures calculated on the same
basis. AMAC calculates FFO in accordance with the NAREIT definition.
FFO does not represent cash generated from operating activities in
accordance with GAAP and is not necessarily indicative of cash
available to fund cash needs. FFO should not be considered as an
alternative to net income as an indicator of the Company's operating
performance or as an alternative to cash flows as a measure of
liquidity. Management considers FFO a supplemental measure of
operating performance, and, along with cash flows from operating
activities, financing activities, and investing activities, it
provides investors with an indication of the ability of the Company to
incur and service debt, to make capital expenditures, and to fund
other cash needs. Since not all companies calculate FFO in a similar
fashion, our calculation presented above may not be comparable to
similarly titled measures reported by other companies.
Certain statements in this document 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 factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in AMAC's most recent 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. and in its other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this document. 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 there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or change in events, conditions, or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. |
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