Anthracite Capital, Inc. Reports Income of $0.33 Per Share for the First Quarter of 1999.NEW YORK--(BUSINESS WIRE)--May 12, 1999-- (Amounts in Thousands, Except Per Share Data) 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 financial results for the quarter ended March 31, 1999. On a financial statement basis, earnings for the first quarter of 1999 were $6,735 or $0.33 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. The components of first quarter earnings include $0.30 per share of net investment income and $0.03 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 . Tax basis net income for the first quarter of 1999 is estimated to be $0.39 per basic and diluted common share. The net realized capital gains from trading strategies will be retained as capital and will be offset by the capital loss carryforward Loss Carryforward An accounting technique with which a company applies net operating losses of the current year to future year's profits in order to reduce tax liability. Notes: incurred in 1998. "Market tone and liquidity are considerably improved since year end although there has not yet been significant tightening of lending spreads in the subordinate and mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. classes of real estate debt that Anthracite holds and originates," said Hugh Hugh (pronunced hyuu) is a male given name. It is Germanic and means "Bright in Mind and Spirit" or "Thoughtful". It is related to the name Hugin( one of Odin's ravens, who represented Thought.) The following medieval rulers were named 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. . "Interest rates have risen based on the persistent strength of the economy and this creates attractive new investing opportunities in an environment of continued strong credit fundamentals. We are looking forward to adding additional assets to our high yielding portfolio over the next several quarters," said Mr. Frater. Anthracite paid a first quarter dividend of $0.29 per share on April 15, 1999, which is representative of its current level of recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. earnings. This is consistent with maintaining the company's eligibility for REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). tax status while retaining capital where possible. The level of Anthracite's recurring earnings and future dividend distributions may be affected by a number of factors, including the amount and cost of borrowings, hedging transactions, and actual credit losses. In addition, future dividend distributions may be affected by available cash, the annual distribution requirements under REIT tax provisions and such other factors, as Anthracite's board of directors deems relevant. -0-
Operating Results and Financial Position
Anthracite's results for the first quarter of 1999, and its
financial position as of March 31, 1999 can be summarized as follows
(unaudited, dollars in thousands, except per share data):
Per Basic
and Diluted
Amount Common Share(1)
Operating Results for the Quarter
Ended March 31, 1999:
Financial statement (GAAP) basis:
Income from operating portfolio $ 6,101 $ 0.30
Net gain from trading strategies $ 565 $ 0.03
Gain on sale of securities
available for sale $ 136 $ 0.00
Foreign currency loss $ (67) $ (0.00)
Net Income $ 6,735 $ 0.33
Tax basis net income plus gains $ 7,853 $ 0.39
Funds from operations (FFO) $ 6,735 $ 0.33
Dividends declared $ 6,089 $ 0.29
(1) Per share amounts are based on basic weighted average common
shares outstanding and per diluted share amounts are based on
diluted weighted average common shares outstanding, including
common stock equivalents; basic and diluted share were the same
for the first quarter of 1999.
Summary of Financial Position as of March 31, 1999:
Cash and cash equivalents $576
Deposits with brokers as collateral for
securities sold short $24,713
Securities available for sale:
Subordinated CMBS $266,091
Investment grade securities $207,743
Commercial mortgage loans, net $38,969
Due from brokers $122,440
Other assets $8,780
Total assets $669,312
Liabilities $488,498
Total stockholders' equity $180,814
Total liabilities and stockholders' equity $669,312
-0- Included in the balance sheet at March 31, 1999 are net Treasury and agency securities positions representing trading strategies Anthracite employs from time to time to generate realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. . Such realized gains are retained as capital and offset against the tax capital loss carryforward incurred in 1998. Realized and unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. or losses on these strategies are reflected in the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). income statement during the period in which they occur. GAAP net book value at March 31, 1999 was $180,814 based upon market prices provided by dealers for securities available for sale. Net book value at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998 was $181,729. Book value per share of $8.61 as of March 31, 1999 declined approximately five percent from year end primarily due to an unrealized decline in the market value of Anthracite's portfolio as market interest rates rose. GAAP book value per share at March 31, 1999 is based on 20,998 shares outstanding on that date. Underlying Asset Quality Remains Strong The collateral underlying Anthracite's subordinate commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. positions is comprised of 1,500 loans on 1,739 separate properties. As of March 31, 1999, there were two loans more than 90 days delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. and one loan more than 30 days but less than 60 days delinquent. The two loans past due more than 90 days have subsequently been transferred to special servicing and foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. actions have been initiated. The one loan more than 30 days but less than 60 days delinquent has also been transferred to special servicing and a workout Workout Informal repayment or loan forgiveness arrangement between a borrower and creditors. workout 1. The process of a debtor's meeting a loan commitment by satisfying altered repayment terms. plan is being developed with the borrower. At this time, there are no other known delinquent assets in the portfolio. Based on current information, there are no losses expected in excess of Anthracite's original loss projections made at the time of the acquisition of these assets. These loss estimates are reflected in GAAP net interest income on a level yield basis. 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. The company 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 in Anthracite. Anthracite is currently using 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. Set forth below are Anthracite's unaudited statement unaudited statement A financial statement prepared by an auditor but not in accordance with generally accepted auditing standards. Unaudited statements are prepared to less rigorous standards than audited statements. Compare audited statement. of financial condition as of March 31, 1999 and unaudited statement of operations for the quarter ended March 31, 1999. As Anthracite did not commence operations until March 24, 1998, its earnings during the prior year's first quarter are not presented as they were not material. -0-
Anthracite Capital, Inc.
Statement of Financial Condition
March 31, 1999 (Unaudited)
(in thousands, except per share data)
ASSETS
Cash and cash equivalents $ 576
Deposits with brokers as collateral
for securities sold short 24,713
Securities available for sale, at fair value
Subordinated commercial
mortgage-backed securities (CMBS) $266,091
Other securities 207,743
--------
Total securities available for sale 473,834
Commercial mortgage loans, net 38,969
Due from brokers 122,440
Other assets 8,780
========
Total Assets $669,312
========
LIABILITIES and STOCKHOLDERS' EQUITY
Liabilities:
Short-term borrowings:
Secured by pledge of subordinated CMBS $ 158,655
Secured by pledge of other securities
available for sale 151,215
Secured by pledge of commercial
mortgage loans 23,014
---------
Total short-term borrowings $ 332,884
Securities sold short, at fair value 24,617
Due to brokers 122,424
Distributions payable 6,089
Other liabilities 2,484
---------
Total Liabilities 488,498
---------
Commitments and Contingencies
Stockholders' Equity:
Common stock, par value $0.001 per share;
400,000 shares authorized; 22,378 shares
issued; 20,998 shares outstanding 22
Additional paid-in capital 303,562
Distributions in excess of earnings (19,501)
Accumulated other comprehensive loss (87,426)
Treasury stock, at cost (1,380 shares) (15,843)
---------
Total Stockholders' Equity 180,814
---------
Total Liabilities and Stockholders' Equity $ 669,312
=========
Anthracite Capital, Inc.
Statement of Operations (Unaudited)
(in thousands, except per share data)
For the Three
Months Ended
March 31, 1999
Operating Portfolio
Interest Income:
Securities available for sale $ 11,299
Commercial mortgage loans 908
Cash and cash equivalents 241
--------
Total interest income 12,448
--------
Expenses:
Interest 4,997
Management fee 1,050
Other expenses 300
--------
Total expenses 6,347
--------
Income from operating portfolio 6,101
--------
Trading Strategies
Interest income 1,510
Interest expense (2,126)
Gain on securities held for trading 1,181
--------
Gain from trading strategies 565
--------
Other Gains (Losses)
Gain on sale of securities available for sale 136
Foreign currency loss (67)
========
Net Income $ 6,735
========
Income from operating portfolio per share:
Basic $ 0.30
Diluted $ 0.30
Net income per share:
Basic $ 0.33
Diluted $ 0.33
Weighted average number of shares outstanding:
Basic 20,279
Diluted 20,279
-0- Anthracite is a specialty finance company taxed as a REIT and externally managed by BlackRock BlackRock Inc. (NYSE: BLK) is a major American investment management firm. As of September 30, 2007, BlackRock’s assets under management totaled $1.3 trillion[2] across fixed income, liquidity, equity, alternative investment and real estate strategies. , 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 $140 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. . BlackRock's parent, PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank N.A. in Pittsburgh Pittsburgh (pĭts`bərg), city (1990 pop. 369,879), seat of Allegheny co., SW Pa., at the confluence of the Allegheny and the Monongahela rivers, which there form the Ohio River; inc. 1816. , originates commercial, multifamily and residential real estate loans and services over $40 billion in commercial mortgage loans for third parties through its Midland Loan Services subsidiary. 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. |
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