Anthracite Capital, Inc Reports Income of $0.34 Per Share for the Second Quarter of 1999.NEW YORK--(BUSINESS WIRE)--July 30, 1999-- Anthracite anthracite (ăn`thrəsīt'): see coal. anthracite or hard coal Coal containing more fixed carbon than any other form of coal and the lowest amount of volatile (quickly evaporating) material, giving it the Capital, Inc. (Anthracite) (NYSE NYSE See: New York Stock Exchange : AHR AHR Aryl Hydrocarbon Receptor AHR American Historical Review (Journal of the American History Association) AHR Anchor AHR airway hyper-responsiveness AHR Assisted Human Reproduction AHR Air-Conditioning Heating Refrigeration ) today reported earnings for the quarter ended June 30, 1999 of $7,196,000 or $0.34 per share both on a 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. basis versus $6,735,000 or $0.33 per share for the period ended March 31, 1999. During the same period, estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. basis net income was $0.39 per basic and diluted common share. Based on the $0.29 per share dividend that was paid on July 15, 1999, and the quarter-end stock price of $6.625, Anthracite's 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. dividend yield is 17.5%. For the six months ended June 30, 1999, Anthracite declared and paid dividends totaling $12,179,000 or $0.58 per share. During the same period, Anthracite reported GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis earnings of $13,931,000 or $0.67 per share both on a basic and diluted basis. There were no comparable results for the quarter or six months ended June 30, 1998 as Anthracite did not commence operations until March 24, 1998, and had not fully invested the proceeds of 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. as of June 30, 1998. The components of second quarter earnings include $0.30 per share of net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and $0.04 per share of net gains from trading strategies In finance, a trading strategy (see also trading system) is a predefined set of rules to apply. Usually, this refers to a means used to replicate an option in order to give it an arbitrage free value in the sense that the cost of buying some financial assets to give the same . The comparable figures for the first quarter of 1999 were $0.30 and $0.03 respectively. Net interest income increased quarter over quarter as certain higher yielding investments were funded but this increase was partially offset by increased expenses for diligence of investment transactions that were not ultimately consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . Trading gains were slightly higher in the second quarter than in the first although there can be no assurance that this level of gains will be sustained or will recur. The second quarter results represent an annualized net interest margin of 6.2% on the operating portfolio and a weighted average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. of 5.50%. Anthracite's annualized return on quarter end GAAP equity for the quarter was 15.8%. During the second quarter Anthracite strengthened its balance sheet with the closing of a $185 million committed credit facility from Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , AG and closing of a $17.5 million commitment with another party to term-fund an existing 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). . The multipurpose mul·ti·pur·pose adj. Designed or used for several purposes: a multipurpose room; multipurpose software. multipurpose Adjective Deutsche Bank facility has a two-year term with a one-year extension at Anthracite's option. "We are pleased to report that our dividends and earnings continue to be stable and our balance sheet is meaningfully strengthened. The recent closing of two committed financing facilities gives us increased financial stability to take advantage of future opportunities" said Hugh R. Frater Fra´ter n. 1. (Eccl.) A monk; also, a frater house. Frater house an apartament in a convent used as an eating room; a refectory; - called also a fratery ltname>. , 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. . GAAP book value at June 30, 1999 was $178,256,000 based upon market prices provided by dealers for securities available for sale. GAAP book value at March 31, 1999 was $180,814,000. All of Anthracite's securities portfolio is classified as available for sale and so, is recorded at market value, thus its GAAP book value will change in response to changes in market prices. The decline of $2,588,000 over the quarter was due to an increase in market interest rates which was partially offset by a modest tightening of credit spreads on the Company's securities portfolio. GAAP book value per share declined approximately 1% from $8.61 to $8.49. Anthracite's quarter-end stock price of $6.625 represented a 22% discount to GAAP book value on that date. Dividend Reinvestment Plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Anthracite has established a dividend reinvestment plan that provides current share owners of its common stock with a simple, economical and convenient method of increasing their investment. For the second quarter dividend Anthracite used amounts invested through the plan to purchase shares on the open market. To request a prospectus and receive enrollment materials or to ask questions about the plan, interested investors and shareholders may contact Investor Relations Investor relations The process by which the corporation communicates with its investors. , The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. (the Plan Administrator), at 1-800-524-4458 or Investor Relations, Anthracite Capital, Inc. at 212-409-3333. Anthracite is a specialty finance company taxed as a REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). and externally managed by BlackRock, Inc., a New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. based investment manager with over $144 billion in global assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The company's principal business objective is 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 loan investments and the costs of financing these investments. Certain matters discussed 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 federal securities laws. Anthracite's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those detailed from time to time in Anthracite's reports and filings with the Securities and Exchange Commission. For further information, please contact Hugh Frater, President and Chief Executive Officer at 212-754-5535 or Richard Shea, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and Chief Financial Officer at 212-754-5579, or visit Anthracite's website at ahr.blackrock.com. -0-
Anthracite Capital, Inc.
Statement of Financial Condition
June 30, 1999 (Unaudited)
(in thousands, except per share data)
June 30, 1999 December 31, 1998
------------- -----------------
ASSETS
Cash and cash equivalents $ 9,346 $ 1,087
Restricted cash equivalents - 3,243
Deposits with brokers as
collateral for securities sold short 24,250 276,617
Securities available for sale,
at fair value
Subordinated commercial
mortgage-backed securities (CMBS) $263,186 $273,018
Other securities 200,964 192,050
------------- -----------------
Total securities available for sale 464,150 465,068
Securities held for trading,
at fair value -- 166,835
Commercial mortgage loans, net 48,324 35,581
Other assets 7,096 7,964
------------ -----------------
Total Assets $ 553,166 $ 956,395
============ =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Short-term borrowings:
Secured by pledge of
subordinated CMBS $150,786 $160,924
Secured by pledge of other
securities available for sale
and cash equivalents 148,927 168,963
Secured by pledge of securities
held for trading - 133,163
Secured by pledge of commercial
mortgage loans 23,014 23,014
------------ -----------------
Total short-term borrowings $ 322,727 $ 486,064
Securities sold short, at fair value 24,042 275,085
Payable for Investment purchase 19,712 -
Distributions payable 6,088 5,796
Other liabilities 2,341 7,721
------------ -----------------
Total Liabilities 374,910 774,666
------------ -----------------
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, par value
$0.001 per share; 100,000 shares
authorized; No shares issued - -
Common stock, par value $0.001 per
share; 400,000 share authorized;
22,378 shares issued, 20,998 shares
outstanding in 1999; and 21,365 shares
issued, 19,985 shares outstanding
in 1998 22 21
Additional paid-in capital 303,562 296,836
Distributions in excess of earnings (18,394) (20,148)
Accumulated other comprehensive loss (91,091) (79,137)
Treasury stock, at cost (1,380 shares) (15,843) (15,843)
------------ -----------------
Total Stockholders' Equity 178,256 181,729
------------ -----------------
Total Liabilities and
Stockholders' Equity $ 553,166 $ 956,395
============ =================
Anthracite Capital, Inc.
Statement of Operations (Unaudited)
(in thousands, except per share data)
For the Three For the Six
Months Ended Months Ended
June 30, 1999 June 30, 1999
------------- -------------
Operating Portfolio
Interest Income:
Securities available for sale $ 11,622 $ 22,948
Commercial mortgage loans 1,135 2,043
Cash and cash equivalents 58 300
---------- ----------
Total interest income 12,815 25,291
---------- ----------
Expenses:
Interest 4,637 9,634
Management fee 1,073 2,123
Other expenses 734 1,034
---------- ----------
Total expenses 6,444 12,791
---------- ----------
Income from operating portfolio 6,371 12,500
---------- ----------
Trading Strategies
Interest income 1,136 2,619
Interest expense (1,374) (3,500)
Gain on securities held for trading 1,072 2,253
---------- ----------
Gain from trading strategies 834 1,372
---------- ----------
Other Gains (Losses)
Gain on sale of securities
available for sale 7 142
Foreign currency loss (16) (83)
========== ==========
Net Income $ 7,196 $ 13,931
========== ==========
Income from operating
portfolio per share:
Basic $ 0.30 $ 0.61
Diluted $ 0.30 $ 0.61
Net income per share:
Basic $ 0.34 $ 0.67
Diluted $ 0.34 $ 0.67
Weighted average number of
shares outstanding:
Basic 20,998 20,641
Diluted 20,998 20,641
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