Printer Friendly

AMERICAN RESIDENTIAL EARNINGS RISE IN THIRD QUARTER

 AMERICAN RESIDENTIAL EARNINGS RISE IN THIRD QUARTER
 LA JOLLA, Calif., Oct. 21 /PRNewswire/ -- American Residential


Holding Corp. (NASDAQ: AMRS) recorded net earnings of $8.4 million for the third quarter of 1992, an increase of 116 percent over the $3.9 million earned in the third quarter of 1991. American Residential Holding Corp. is the parent company of American Residential Mortgage Corp., one of the country's leading residential lenders.
 For the first nine months of the year, the company's net income was $15.1 million, a 78 percent increase over the $8.5 million earned during the same period in 1991. Continued growth in both originations and servicing accounted for the increases. More than 73 percent of the revenues were generated by these core businesses during 1992.
 Strong consumer demand for refinancing and home loans pushed mortgage origination revenues upward. Loan volumes were up 93 percent and 79 percent for the three- and nine-month periods of 1992 respectively, compared to the same periods in 1991. Declining interest rates in 1992 contributed to higher gains on the sale of mortgages in the secondary market.
 For the first nine months of 1992, servicing revenues increased by $7.1 million over the same period in 1991 because of a 59 percent increase in the company's loan servicing portfolio since the beginning of 1992. The increase in servicing revenues was achieved despite an expected decline in certain RTC subservicing fees.
 The company increased earnings in the third quarter and nine months ended Sept. 30, 1992, and continued to build "off balance sheet" value in its servicing portfolio. Specifically, net growth in the servicing portfolio was $3.2 billion for the first nine months in 1992, while capitalized cost relative to its servicing portfolio increased only $4.8 million or 15 basis points. John Robbins, president and chief executive officer of American Residential, commented, "In the mortgage banking industry the creation of off balance sheet value is one of the key factors in measuring performance. American Residential continues to have low capitalized costs relative to its servicing portfolio which means future servicing fees will be less burdened by amortization charges."
 American Residential Holding Corp. sold 3,141,500 shares of common stock in a recent initial public offering.
 American Residential Mortgage Corp., headquartered in La Jolla, operates 49 offices nationwide. The company originated a record $3.7 billion in home loans for the first nine months of the year and serviced and subserviced $9.5 billion in residential loans as of Sept. 30, 1992.
 AMERICAN RESIDENTIAL HOLDING CORP.
 Comparative Results of Operations
 (Unaudited)
 (In Millions Except Per Share Amounts)
 Period Ended Three Months Nine Months
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues
 Loan origination $17.3 $7.7 $34.8 $18.3
 Servicing 7.0 8.0 22.5 15.4
 Sale of servicing 6.4 .9 9.9 7.4
 Net interest income 4.1 3.5 10.5 7.4
 Other .1 --- .3 ---
 Total revenues $34.9 $20.1 $78.0 $48.5
 Operating expenses (20.7) (14.1) (52.5) (35.5)
 Income taxes (5.8) (2.4) (10.4) (5.2)
 Income before
 extraordinary item 8.4 3.6 15.1 7.8
 Extraordinary item --- .3 --- .7
 Net income $8.4 $3.9 $15.1 $8.5
 Net income per share:
 Primary (a) 1.01 .55 2.08 1.18
 Fully diluted 1.01 .55 2.08 1.17
 Average shares outstanding:
 Primary (a) 8.325 6.633 7.270 6.602
 Fully diluted 8.347 6.646 7.287 6.646
 (a) Pro forma earnings per share if calculated based on 9,585,000 shares outstanding after the initial public offering on Aug. 14, 1992, and 301,119 shares of common stock equivalents are $.85 and $1.53 for the three and nine months ended Sept. 30, 1992, respectively.
 -0- 10/21/92
 /CONTACT: Judith A. Berry, 619-535-4425, or Clay Strittmatter, 619-535-4433, both of American Residential Holding/
 (AMRS) CO: American Residential Holding Corp.; American Residential
 Mortgage Corp. ST: California IN: FIN SU: ERN


BP-JB -- SD007 -- 3001 10/21/92 15:00 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:684
Previous Article:1993 TOUR DU PONT PROMISES LONGER, MORE MOUNTAINOUS RACE
Next Article:FISHER-PRICE ANNOUNCES THIRD QUARTER RESULTS
Topics:


Related Articles
HORIZON ANNOUNCES RECORD THIRD QUARTER SALES AND IMPROVED PROFITS
AMERICAN ELECTRIC POWER THIRD QUARTER EARNINGS DECREASE
LADD REPORTS STRONG THIRD QUARTER SALES GAIN
DUKE POWER REPORTS EARNINGS OF 53 CENTS PER SHARE
THIRD QUARTER AND YEAR-TO-DATE NET INCOME RISES AT AMERICAN RESIDENTIAL
AMERICAN RESIDENTIAL HOLDING CORP. REPORTS FIRST QUARTER NET INCOME OF $5.9 MILLION
AMERICAN SENSORS ACHIEVES RECORD GROWTH WITH REVENUE OF U.S. $10.7 MILLION AND EARNINGS PER SHARE OF $0.59 FOR QUARTER ENDED SEPT. 30, 1994
LADD Third Quarter Earnings Up 91 Percent On 10 Percent Sales Gain.
AFMA revises sales projections.
LADD Furniture's Third Quarter Earnings Rise 35 Percent.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters