Annaly Mortgage Management, Inc. Announces Quarterly Earnings Results.WEEHAWKEN, N.J.--(BUSINESS WIRE)--Oct. 17, 1997-- Company Also Reports Underwriters Exercise Option to Purchase Additional 1,277,100 Shares in Connection with Recent Initial Public Offering Annaly Mortgage Management, Inc. (NYSE NYSE See: New York Stock Exchange :NLY) today reported net income of $1,199,523, or $0.32 per share, for the quarter ended September 30, 1997. The Company, which began operations on February 18, 1997, has generated earnings of $2,539,582, or $0.68 per share, through the period ended September 30, 1997. The Company previously declared a special dividend of $0.18 per share, payable on October 23, 1997, for shareholders of record on September 2, 1997. The dividend represents the two month period from July 1, 1997 through August 31, 1997. At September 30, there were 3.8 million shares outstanding. Annaly will elect to be taxed as a Real Estate Investment Trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ") and, as a result, is required to pay substantially all of its net taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. for the calendar year. The Company's shares began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. on October 8, 1997. The Company's net equity stands at approximately $133,000,000 subsequent to its initial public offering on October 7, 1997. This amount includes 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). from a Private Placement completed on February 18, 1997 and reflects a decision by the underwriters, led by Friedman, Billings, Ramsey & Co., Inc., to increase the size of the original public filing by 20% and to exercise their option to purchase 1,277,100 additional shares to cover overallotments in the initial public offering. The current outstanding float is 12,713,900 shares. Michael A.J. Farrell, Chairman and Chief Executive Officer, stated, "We are extremely proud of the accomplishments of the Company since we began operations eight months ago. The Company has been operating in an extremely competitive environment and our diligent efforts in acquiring assets, deploying capital and controlling expenses has led to exceptional results for our shareholders. When viewed in the overall context of the effort required for the successful completion of our initial public offering, we are especially grateful for the confidence expressed by our existing and new investors." Annaly Mortgage Management, Inc. owns and manages a portfolio of mortgage- backed securities, including mortgage-backed pass-through certificates, collateralized mortgage obligations Collateralized mortgage obligation (CMO) A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. and other securities representing interests in or obligations backed by pools of mortgage loans which can be readily financed. The Company seeks to generate net income for distribution to stockholders from the spread between the interest income on its mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. and the costs of borrowing to finance its acquisition of mortgage-backed securities. Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including general economic conditions, interest rates and other risk factors outlined in the Company's Prospectus and SEC reports. CONTACT: The MWW MWW Municipal Waste Water MWW Most Wanted Website Group Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most - Tel. (201) 507-9500 Contact: Robert E. Swadosh (rswadosh@mww.com) Robert C. Ferris (rferris@mwww.com) |
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