CharterMac Reports Second Quarter Financial Results.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 -- CharterMac (the "Company") (NYSE NYSE See: New York Stock Exchange : CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) today announced financial results for the second quarter and six months ended June June: see month. 30, 2006. "CharterMac had two significant events occur in the second quarter of 2006, including the launch of our credit intermediation subsidiary, Centerbrook Centerbrook is a village located in the town of Essex, Connecticut. It is home to numerous businesses, the Essex Steam Train, a post office, and Essex Elementary School. It has many houses but it is generally considered the more commercial part of Essex. Financial LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Centerbrook"), and the announcement of our pending acquisition of ARCap Investors LLC ("ARCap")," said Marc D. Schnitzer Schnitzer is a German word meaning "carver" and is the surname of:
(Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ") in 2007, there were several significant costs associated with these transactions that impacted our financial results in the second quarter. Importantly, both transactions will result in significant cost savings to the Company going forward, as well as position the Company for stable growth in 2007 and beyond. Our core businesses performed as we had expected in the second quarter, and we believe we are well positioned to have a strong finish to the year." Financial Highlights CharterMac reported total revenues of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $79.2 million for the three months ended June 30, 2006. Adjusted to exclude the impact of consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: partnerships, as discussed on the third page of this press release, total revenues were approximately $86.5 million, which represents an increase of approximately 1.2% as compared to similarly adjusted revenues of approximately $85.5 million for the three months ended June 30, 2005. For the six months ended June 30, 2006, CharterMac's total revenues were approximately $151.4 million. Adjusted to exclude the impact of consolidated partnerships, total adjusted revenues for the six months ended June 30, 2006 were approximately $163.1 million, which represents an increase of approximately 11.3% as compared to similarly adjusted revenues of approximately $146.5 million for the six months ended June 30, 2005. For the three months ended June 30, 2006, CharterMac earned net income of approximately $4.2 million, representing a decrease of 78.2% as compared to approximately $19.4 million for the three months ended June 30, 2005. On a 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. per share basis, net income was $0.05 for the three months ended June 30, 2006, representing a decrease of 84.8% as compared to $0.33 for the three months ended June 30, 2005. A significant portion of the decrease in net income was due to the following: (i) start-up Start-up The earliest stage of a new business venture. costs associated with Centerbrook; (ii) restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs associated with the Company's pending acquisition of ARCap and with the transfer of the Company's loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. operation to Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. , TX. As a result of this transfer, the Company believes that it will save between $2.5 million and $3.0 million per year in operating costs operating costs npl → gastos mpl operacionales beginning in 2007; (iii) termination fees termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. paid to third party credit providers, 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. interest costs and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred financing costs associated with the re-securitization of $804 million of CharterMac multifamily revenue bonds by Centerbrook. While there were significant fees associated with the launch of Centerbrook, CharterMac believes that Centerbrook will enable the Company to lower its cost of capital going forward. Specifically, with respect to the initial re-securitization transaction, the Company was paying third party credit providers 47.9 basis points in credit intermediation fees on an annual basis and will now capture 38% of those fees through Centerbrook, resulting in $1.5 million of annual savings; (iv) a decrease in the level of equity invested by our Fund Management business due to the timing of the closing of investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company ; and (v) increased interest expense. For the six months ended June 30, 2006, CharterMac earned net income of approximately $18.9 million, representing a decrease of 44.8% as compared to approximately $34.2 million for the six months ended June 30, 2005. On a diluted per share basis, net income was $0.28 for the six months ended June 30, 2006, representing a decrease of 52.5% as compared to approximately $0.59 for the six months ended June 30, 2005. Similar to Net Income, Cash Available for Distribution ("CAD"), CharterMac's primary performance measure, was impacted by many of the same costs described above. For the three months ended June 30, 2006, CharterMac's CAD was approximately $23.9 million, representing a decrease of 37.6% as compared to approximately $38.4 million for the three months ended June 30, 2005. On a diluted per share basis, CAD was $0.41 for the three months ended June 30, 2006, representing a decrease of 37.9% as compared to approximately $0.66 for the three months ended June 30, 2005. For the six months ended June 30, 2006, CharterMac's CAD was approximately $39.2 million, representing a decrease of 28.1% as compared to approximately $54.5 million for the six months ended June 30, 2005. On a diluted per share basis, CAD was $0.66 for the six months ended June 30, 2006, representing a decrease of 29.8% as compared to CAD of $0.94 for the six months ended June 30, 2005. Incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. for the second quarter and six months ended June 30, 2006, as discussed on the first page of this press release related to the launch of Centerbrook and the pending acquisition of ARCap (the majority of which were recorded in the second quarter) were as follows:
(In thousands) Three Months Six Months
Ended Ended
-------------------------------
June 30, June 30,
2006 2006
-------------------------------
Centerbrook start-up costs $ 3,758 $ 4,313
Restructuring costs in anticipation
of ARCap acquisition 1,995 1,995
Restructuring of securitization
programs - incremental interest
expense 1,915 1,915
Restructuring of securitization
programs - termination fee 1,420 1,420
Restructuring of securitization
programs - write-off of deferred
costs 3,398 3,398
-------- --------
12,486 13,041
Tax effect (752) (863)
-------- --------
Net incremental costs $ 11,734 $ 12,178
======== ========
Impact on Net Income (per Diluted
share) $ 0.20 $ 0.21
======== ========
Impact on CAD (per Diluted share) $ 0.14 $ 0.15
======== ========
The following is a summary of our second quarter and six months ended June 30, 2006 production volume for each of CharterMac's business lines: Fund Management Tax Credit Equity During the three months ended June 30, 2006, CharterMac's subsidiary, CharterMac Capital, raised tax credit equity totaling approximately $308.1 million, bringing total tax credit equity raised for the first six months of 2006 to approximately $369.0 million. Of the $369.0 million, approximately $57.4 million was raised through credit intermediated funds in which the investors receive a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. rate of return. In addition, CharterMac Capital, on behalf of investment funds, made equity investments in tax credit properties totaling approximately $278.6 million and $399.1 million during the second quarter and for the first six months ended June 30, 2006, respectively. 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 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") (AMEX AMEX See: American Stock Exchange :AMC (Advanced Mezzanine Card) See AdvancedTCA. ), the publicly traded mortgage REIT Mortgage REIT An REIT that invests in loans secured by real estate which derive income from mortgage interest and fees. mortgage REIT that CharterMac advises, originated ten first mortgage loans and subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes, totaling over $151 million in the second quarter. The originations were sourced through the Company's mortgage banking subsidiary, CharterMac Mortgage Capital. Mortgage Banking During the three months ended June 30, 2006, the Company's subsidiary, CharterMac Mortgage Capital, originated approximately $458 million of loans, including over $151 million of loans for AMAC and $306.8 million of loans for Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. and conduits. Originations for the first six months of 2006 totaled $739.2 million, which is a 67.6% increase over total originations for the first six months of 2005. Of the $739.2 million, approximately $41 million were commercial mortgage loans for office and retail properties, marking an expansion of our business beyond our traditional multifamily originations. As of June 30, 2006, CharterMac Mortgage Capital's loan servicing portfolio had an outstanding principal balance of approximately $9.2 billion. Portfolio Investing During the three months ended June 30, 2006, CharterMac acquired mortgage revenue bonds totaling approximately $95.5 million in par value, secured by affordable multifamily properties aggregating 1,349 units, bringing the six month total to approximately $136.0 million. As of June 30, 2006, CharterMac had ownership interests in mortgage revenue bonds with a fair value of approximately $2.6 billion, secured by 54,418 multifamily units in 30 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . As of that date, the mortgage revenue bond portfolio had a weighted average interest rate of 6.7%, a weighted average maturity of 34 years, and a weighted average pre-payment lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout of 12 years. Centerbrook Financial LLC During June 2006, CharterMac announced the launch of Centerbrook, marking the culmination of CharterMac's partnership with IXIS Capital Markets North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Inc. Centerbrook plans to provide credit intermediation products, including credit default swaps Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties. Notes: The buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. , to the affordable housing finance industry. Concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. with the launch, Centerbrook completed its first transaction, providing a pool of credit default swaps in connection with the re-securitization of $804 million of CharterMac's existing multifamily revenue bonds. Subsequent to quarter end, Centerbrook completed an additional re-securitization of $175 million of CharterMac's existing multifamily revenue bonds. Share Repurchase Plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and During the second quarter of 2006, in connection with CharterMac's existing program to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. 1,500,000 of our common shares, the Company entered into a 10b5-1 trading plan to facilitate the purchases of shares under this program. Including purchases subsequent to the quarter end, CharterMac repurchased 748,800 of the Company's common shares through open market purchases using the plan. Consolidated Partnerships As previously reported, CharterMac's earnings results include the results of partnerships consolidated pursuant to FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Interpretation 46 ( R ), as well as other partnerships we control, but in which we have little or no equity interest. As CharterMac has virtually no equity interest in these partnerships, the net losses they generated were allocated almost entirely to their investors. The consolidation, therefore, has an insignificant impact on net income, although certain CharterMac revenues are eliminated in consolidation and revenues and expenses of the consolidated partnerships are reflected in the income statement. Management Conference Call Management will conduct a conference call today at 11:00 a.m. Eastern Time to review the Company's second quarter financial results for the period ended June 30, 2006. Callers will be invited to ask questions. Investors, brokers, analysts, and shareholders wishing to participate should call 800-967-7141. A webcast of the presentation will be available live and can be accessed through the Company's website, http://www.chartermac.com. To listen to the presentation via webcast, please go to the website's "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section at least 15 minutes prior to the start of the presentation. For interested individuals unable to join the conference call, a replay of the call will be available through Sunday Sunday: see Sabbath; week. , August 13, 2006, at 888-203-1112 (Passcode 2964501) or on our website, through Wednesday Wednesday: see week. , September September: see month. 6, 2006. Supplemental Financial Information For more detailed financial information, please access the Supplemental Financial Package, which is available in the Investor Relations section of the CharterMac website at www.chartermac.com. About the Company CharterMac, through its subsidiaries, is one of the nation's leading full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. real estate finance companies. CharterMac offers capital solutions to developers and owners of properties throughout the country and quality investment products to institutional and retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. . For more information, please visit CharterMac's website at http://www.chartermac.com or contact the Investor Relations Department directly at 800-831-4826.
CHARTERMAC AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
=======================
June 30, December
31,
2006 2005
----------- -----------
(Unaudited)
Revenue bonds - at fair value $2,413,949 $2,294,787
----------- -----------
Net addition to assets from consolidation of
partnerships $3,518,378 $3,365,685
----------- -----------
Total assets $7,303,740 $6,978,828
----------- -----------
Liabilities:
Financing arrangements $1,600,778 $1,429,692
----------- -----------
Preferred shares of subsidiary (subject to
mandatory repurchase) $ 273,500 $ 273,500
----------- -----------
Notes payable $ 408,337 $ 304,888
----------- -----------
Liabilities of consolidated partnerships $1,365,076 $1,627,556
----------- -----------
Total liabilities $3,812,371 $3,814,911
----------- -----------
Minority interests in subsidiaries $ 253,191 $ 262,274
----------- -----------
Preferred shares of subsidiary (not subject to
mandatory repurchase) $ 104,000 $ 104,000
----------- -----------
Partners' interests in consolidated
partnerships $2,156,653 $1,747,808
----------- -----------
Total shareholders' equity $ 977,525 $1,049,835
----------- -----------
===========================================
Three Months Ended
June 30,
-------------------------------------------
2006
-------------------------------------------
(Unaudited)
As As
Reported Adjustments(1) Adjusted(1)
--------- -------------- -----------
Total revenues $ 79,231 $ 7,293 $ 86,524
Interest expense (28,810) -- (28,810)
General and
administrative (39,861) -- (39,861)
Depreciation and
amortization (14,615) -- (14,615)
Loss on impairment of
assets (2,271) -- (2,271)
Expenses and equity
losses of consolidated
partnerships (99,799) 99,799 --
Equity and other income 3,548 (2) 3,546
Gain on sale of loans
and repayment of
revenue bonds 2,538 -- 2,538
Income allocated to
preferred shareholders
and minority interests (3,208) -- (3,208)
Loss allocated to
partners of
consolidated
partnerships 107,090 (107,090) --
---------- ---------- ----------
Income before income
taxes 3,843 -- 3,843
Income tax benefit 405 -- 405
---------- ---------- ----------
Net income $ 4,248 $ -- $ 4,248
========== ========== ==========
4.4% CRA Preferred
dividend
requirements (1,188) -- (1,188)
---------- ---------- ----------
Net income available to
common and CRA
shareholders $ 3,060 $ -- $ 3,060
========== ========== ==========
Net income per share:
Basic $ 0.05 $ -- $ 0.05
========== ========== ==========
Diluted $ 0.05 $ -- $ 0.05
========== ========== ==========
Weighted average shares
outstanding:
Basic 58,639 -- 58,639
========== ========== ==========
Diluted 58,919 -- 58,919
========== ========== ==========
===========================================
Three Months Ended
June 30,
-------------------------------------------
2005
-------------------------------------------
(Unaudited)
As As
Reported Adjustments(1) Adjusted(1)
--------- -------------- -----------
Total revenues $ 78,480 $ 6,996 $ 85,476
Interest expense (19,076) -- (19,076)
General and
administrative (33,068) -- (33,068)
Depreciation and
amortization (9,469) -- (9,469)
Loss on impairment of
assets (1,098) -- (1,098)
Expenses and equity
losses of consolidated
partnerships (86,374) 86,374 --
Equity and other income 552 -- 552
Gain on sale of loans
and repayment of
revenue bonds 5,229 -- 5,229
Income allocated to
preferred shareholders
and minority interests (9,437) -- (9,437)
Loss allocated to
partners of
consolidated
partnerships 93,370 (93,370) --
---------- --------- ----------
Income before income
taxes 19,109 -- 19,109
Income tax benefit 335 -- 335
---------- --------- ----------
Net income $ 19,444 $ -- $ 19,444
========== ========= ==========
4.4% CRA Preferred
dividend
requirements -- -- --
Net income available to
common and CRA
shareholders $ 19,444 $ -- $ 19,444
========== ========= ==========
Net income per share:
Basic $ 0.34 $ -- $ 0.34
========== ========= ==========
Diluted $ 0.33 $ -- $ 0.33
========== ========= ==========
Weighted average shares
outstanding:
Basic 57,890 -- 57,890
========== ========= ==========
Diluted 58,274 -- 58,274
========== ========= ==========
CHARTERMAC AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
==========================================
Six Months Ended
June 30,
------------------------------------------
2006
------------------------------------------
(Unaudited)
As As
Reported Adjustments(1) Adjusted(1)
--------- -------------- -----------
Total revenues $ 151,370 $ 11,701 $ 163,071
Interest expense (50,642) -- (50,642)
General and
administrative (72,427) -- (72,427)
Depreciation and
amortization (23,528) -- (23,528)
Loss on impairment of
assets (2,271) -- (2,271)
Expenses and equity
losses of consolidated
partnerships (184,175) 184,175 --
Equity and other income 4,058 (5) 4,053
Gain on sale of loans
and repayment of
revenue bonds 7,968 -- 7,968
Income allocated to
preferred shareholders
and minority interests (10,643) -- (10,643)
Loss allocated to
partners of
consolidated
partnerships 195,871 (195,871) --
---------- --------- ----------
Income before income
taxes 15,581 -- 15,581
Income tax benefit 3,324 -- 3,324
---------- --------- ----------
Net income $ 18,905 $ -- $ 18,905
========== ========= ==========
4.4% CRA Preferred
dividend
requirements (2,376) -- (2,376)
---------- --------- ----------
Net income available to
shareholders $ 16,529 $ -- $ 16,529
========== ========= ==========
Net income per share:
Basic $ 0.28 $ -- $ 0.28
========== ========= ==========
Diluted $ 0.28 $ -- $ 0.28
========== ========= ==========
Weighted average shares
outstanding:
Basic 58,609 -- 58,609
========== ========= ==========
Diluted 58,961 -- 58,961
========== ========= ==========
==========================================
Six Months Ended
June 30,
------------------------------------------
2005
------------------------------------------
As As
Reported Adjustments(1) Adjusted(1)
--------- -------------- ------------
Total revenues $ 136,426 $ 10,084 $ 146,510
Interest expense (34,380) -- (34,380)
General and
administrative (59,280) -- (59,280)
Depreciation and
amortization (17,165) -- (17,165)
Loss on impairment of
assets (1,098) -- (1,098)
Expenses and equity
losses of consolidated
partnerships (154,249) 154,249 --
Equity and other income 1,076 -- 1,076
Gain on sale of loans
and repayment of
revenue bonds 6,924 -- 6,924
Income allocated to
preferred shareholders
and minority interests (17,058) -- (17,058)
Loss allocated to
partners of
consolidated
partnerships 164,333 (164,333) --
---------- --------- ----------
Income before income
taxes 25,529 -- 25,529
Income tax benefit 8,700 -- 8,700
---------- --------- ----------
Net income $ 34,229 $ -- $ 34,229
========== ========= ==========
4.4% CRA Preferred
dividend
requirements -- -- --
---------- --------- ----------
Net income available to
shareholders $ 34,229 $ -- $ 34,229
========== ========= ==========
Net income per share:
Basic $ 0.59 $ -- $ 0.59
========== ========= ==========
Diluted $ 0.59 $ -- $ 0.59
========== ========= ==========
Weighted average shares
outstanding:
Basic 57,856 -- 57,856
========== ========= ==========
Diluted 58,271 -- 58,271
========== ========= ==========
Reconciliation of Net Income to Cash Available
for Distribution ("CAD")(2)
(In thousands)
=================
Three Months
Ended
June 30,
-----------------
2006 2005
-----------------
Net Income $ 4,248 $19,444
4.4% CRA Preferred dividends (1,188) --
Mortgage revenue bond yield adjustments 468 (360)
Fees deferred for GAAP 10,574 14,292
Depreciation and amortization expense 14,615 9,469
Gain on sale of loans (2,190) (5,012)
Tax adjustment 187 (1,116)
Non-cash compensation 1,061 1,576
Difference between subsidiary equity distributions
and income allocated to subsidiary equity holders (7,209) (779)
Loss on impairment of assets 2,271 1,098
Other, net 1,112 (208)
-------- -------
CAD $23,949 $38,404
======== =======
Reconciliation of Net Income to Cash Available
for Distribution ("CAD")(2)
(In thousands)
=================
Six Months Ended
June 30,
-----------------
2006 2005
-----------------
Net Income $ 18,905 $34,229
4.4% CRA Preferred dividends (2,376) --
Mortgage revenue bond yield adjustments 631 (850)
Fees deferred for GAAP 9,420 18,722
Depreciation and amortization expense 23,528 17,165
Gain on sale of loans (6,813) (6,649)
Tax adjustment 219 (9,481)
Non-cash compensation 3,413 3,534
Difference between subsidiary equity
distributions and income allocated
to subsidiary equity holders (10,234) (3,354)
Loss on impairment of assets 2,271 1,098
Other, net 240 127
-------- -------
CAD $ 39,204 $54,541
======== =======
(1) As previously reported, CharterMac's earnings results include
the results of partnerships consolidated pursuant to FASB
Interpretation 46 ( R ), as well as other partnerships we control, but
in which we have little or no equity interest. As CharterMac has
virtually no equity interest in these partnerships, the net losses
generated by them were allocated almost entirely to their investors.
The consolidation, therefore, has an insignificant impact on net
income, although certain CharterMac revenues are eliminated in
consolidation and revenues and expenses of the consolidated
partnerships are reflected in the income statement. The adjusted
figures presented are not in accordance with generally accepted
accounting principles ("GAAP") but are presented for the purpose of
comparability.
(2) CharterMac believes that Cash Available for Distribution
("CAD") is helpful to investors in measuring the performance of our
Company that it is the performance measure used by our chief
decision-maker to allocate resources among our segments. CAD
represents net income (computed in accordance with GAAP), adjusted
for:
-- Cash fees and other revenues received but deferred in
accordance with GAAP. Fees recognized for CAD but deferred for
GAAP purposes are generally earned over a period of time in
connection with certain of our product lines, such as fund
sponsorship and credit enhancement fees.
-- The effect of straight line revenue recognition of interest
income on revenue bonds with fixed changes in interest rates.
-- Depreciation and amortization.
-- Non-cash gains recognized on sale of mortgage loans when
servicing rights are retained.
-- Losses on sales of loans or repayment of revenue bonds.
-- Impairment losses.
-- The portion of tax benefit or provision that is not expected
to be realized in cash.
-- Non-cash compensation expenses.
-- The difference between earnings allocated to Subsidiary Equity
in accordance with GAAP and distributions to holders of that
equity.
There is no generally accepted methodology for computing CAD, and
the Company's computation of CAD may not be comparable to CAD reported
by other companies. CAD does not represent net cash provided by
operating activities determined in accordance with GAAP and should not
be considered as an alternative to net income (determined in
accordance with GAAP) as an indication of the Company's performance,
as an alternative to net cash provided from operating activities
(determined in accordance with GAAP) as a measure of our liquidity, or
as an indication of our ability to make cash distributions.
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 CharterMac'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, and include, among others, adverse changes in the real estate markets including, among other things, competition with other companies; interest rate fluctuations; general economic and business conditions, which will, among other things, affect the availability and credit worthiness wor·thy adj. wor·thi·er, wor·thi·est 1. Having worth, merit, or value; useful or valuable. 2. Honorable; admirable: a worthy fellow. 3. of prospective tenants, lease rents and the terms and availability of financing for properties financed by mortgage revenue bonds we own; environment/safety requirements; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; risk of default associated with the mortgage revenue bonds and other securities held by us or our subsidiaries; risks associated with providing credit intermediation; risk of loss under mortgage banking loss sharing agreements; the risk that relationships with key investors and developers may not continue; our ability to generate fee income may not continue; and risks related to the form and structure of our financing arrangements.. Such forward-looking statements speak only as of the date of this document. CharterMac expressly disclaims any obligation or undertaking to release publicly any updates or revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statements contained herein to reflect any change in CharterMac'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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