Printer Friendly

AMERICAN RESIDENTIAL HOLDING CORP. REPORTS STRONG FIRST QUARTER EARNINGS

 LA JOLLA, Calif., April 15 /PRNewswire/ -- American Residential Holding Corp. (NASDAQ: AMRS) recorded net income of $6.1 million for the first quarter ended March 31, 1993, more than doubling the $3.0 million earned in the first quarter of 1992. American Residential Holding Corp. is the parent company of American Residential Mortgage Corp., one of the country's leading residential lenders.
 Earnings per share increased to $.61 for the period from $.32 per share during the first quarter of 1992 (giving effect to the August 1992 initial public offering).
 Revenues for the first quarter of 1993 increased to $27.5 million, a 34 percent increase over the $20.6 million in revenues during the first quarter of 1992. The increase was primarily attributable to higher gains from the sale of mortgage loan servicing rights, increased net interest income and increased servicing fees derived from a larger servicing portfolio. The company also recorded an income statement benefit associated with the adoption of SFAS No. 109 -- Accounting for Income Taxes. The improvement of revenues was partially offset by increased operating expenses, an expected reduction in subservicing income and increased amortization of capitalized servicing.
 In announcing first quarter results, John M. Robbins, chairman and chief executive officer, said, "American Residential continued to achieve earnings growth by using strategic sales of servicing rights to offset fluctuations in origination income. As anticipated, first quarter originations decreased from a record level in the fourth quarter of 1992 due to the normal decline in home buying during January and February and lower refinancing transactions. We plan to increase originations, servicing, earnings and off-balance-sheet servicing value during 1993, continuing our commitment to building shareholder value."
 The company recently announced that its pipeline of loans-in- process was $1.85 billion as of March 31, 1993, 27 percent higher than one year earlier. Robbins commented, "A larger branch system, increasing market share and the current housing recovery will enable the company to increase its 1993 originations over 1992 levels. We entered the second quarter with a record pipeline for this time of year and are seeing very encouraging signs for home purchasing activity in many of our markets."
 American Residential Holding Corp. completed a public offering of 2,500,000 shares of common stock on April 1, 1993, of which 2,000,000 shares were issued by the company and 500,000 shares by selling shareholders. The proceeds to the company will be used to increase origination capacity and purchase servicing contracts. Robbins noted, "We are well positioned to take advantage of excellent market conditions for loan originations and to participate in a dramatic industry consolidation which is already underway. As true residential lending specialists, mortgage bankers with strong capitalization should continue to outpace the industry in both origination and servicing portfolio growth." According to recently published industry rankings for 1992, American Residential increased its loan origination volume over 1991 by 85 percent when the total U.S. market increase was 58 percent. Its servicing portfolio increased by 76 percent while total U.S. residential 1-4 mortgages outstanding increased by 8 percent.
 American Residential is headquartered in La Jolla. It has 54 branch offices throughout the United States.
 AMERICAN RESIDENTIAL HOLDING CORP.
 Consolidated Statements of Income
 (Dollars in thousands, except per share data)
 Unaudited
 Quarter ended March 31,
 1993 1992
 Mortgage Origination Income:
 Origination fees $6,641 $6,655
 Secondary marketing gain (loss) 1,661 1,765
 Total mortgage origination income 8,302 8,420
 Servicing income 9,958 7,687
 Less amortization of
 capitalized servicing (3,172) (1,942)
 Servicing income, net 6,786 5,745
 Subservicing income 781 3,305
 Total servicing income 7,567 9,050
 Sale of servicing gains 7,463 8
 Interest income, net 3,932 2,900
 Other 267 199
 Total revenue 27,531 20,577
 Total operating expenses 21,951 15,605
 Income before taxes and
 cumulative effect of
 change in account principle 5,580 4,972
 Taxes (2,236) (1,970)
 Income before cumulative effect
 of change in accounting principle 3,344 3,002
 Cumulative effect of change
 in accounting principle 2,784 0
 Net income $6,128 $3,002
 Primary Earnings Per Share:
 Net income before cumulative
 effect $0.34 $0.44
 Cumulative effect of change
 in accounting principle 0.28 ---
 Net income after cumulative
 effect $0.62 $0.44
 Average shares outstanding 9,960,930 6,751,182
 Fully Diluted Earnings Per Share:
 Net income before cumulative
 effect $0.33 $0.44
 Cumulative effect of change
 in accounting principle 0.28 ---
 Net income after cumulative
 effect $0.61 $0.44
 Average shares outstanding 9,972,735 6,751,182
 Fully Diluted Pro Forma
 Earnings Per Share:(a)
 Net income before cumulative
 effect $0.33 $0.32
 Cumulative effect of change
 in accounting principle 0.28 ---
 Net income after cumulative
 effect $0.61 $0.32
 Pro forma average shares
 outstanding 9,972,735 9,892,682
 (a) Pro forma earnings per share for the first quarter of 1992 reflect the initial public offering on Aug. 14, 1992, as if the 3,141,500 shares were outstanding for the period shown, with adjustments to net income for reduced warehouse borrowings by the amount of IPO proceeds.
 AMERICAN RESIDENTIAL HOLDING CORP.
 Financial Highlights
 (Dollars in millions)
 Unaudited
 Quarter ended March 31, 1993 1992
 Loan originations $1,157 $1,216
 Average loan size $0.121 $0.122
 Application pipeline $1,851 $1,457
 Ending servicing portfolio(a) $9,748 $6,774
 Weighted average loan rate 8.6 pct 9.4 pct
 Balance Sheet:
 Cash and equivalents $33 $12
 Loans held for sale $501 $418
 Capitalized servicing rights $45 $38
 Total assets $610 $490
 Warehouse line of credit $450 $370
 Total shareholders' equity $94 $35
 (a) Excludes warehouse loans and subservicing contracts.
 NOTE: The above operating statistics do not constitute all factors impacting the quarterly and annual financial results of the company. All figures above are unaudited and may be adjusted in the reported financial statements of the company, which are provided by the company quarterly. The company makes no commitment to update this information for changes in circumstances or events which occur subsequent to the date of their release.
 -0- 4/15/93
 /CONTACT: Kasey Emmel of American Residential, 619-535-4310/
 (AMRS)


CO: American Residential Holdings Corp. ST: California IN: FIN SU: ERN

JL-JB -- SD001 -- 6194 04/15/93 11:31 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1993
Words:1057
Previous Article:STEWART & STEVENSON SERVICES, INC. MAKES ANNOUNCEMENT
Next Article:BOISE CASCADE ISSUES STATEMENT
Topics:


Related Articles
AMERICAN RESIDENTIAL EARNINGS RISE IN THIRD QUARTER
AMERICAN RESIDENTIAL MORTGAGE REPORTS STRONG FIRST QUARTER ORIGINATIONS AND PIPELINE
FLEET MORTGAGE GROUP REPORTS FIRST QUARTER NET INCOME OF $26.8 MILLION
THE FIRST AMERICAN FINANCIAL CORP. REPORTS RESULTS
THIRD QUARTER AND YEAR-TO-DATE NET INCOME RISES AT AMERICAN RESIDENTIAL
AMERICAN RESIDENTIAL 1993 EARNINGS INCREASE 44 PERCENT; NET INCOME RISES TO $28.4 MILLION
AMERICAN RESIDENTIAL HOLDING CORP. REPORTS FIRST QUARTER NET INCOME OF $5.9 MILLION
AMERICAN RESIDENTIAL 10-Q DISCLOSES FIRST QUARTER NET INCOME AND EARLY SECOND QUARTER SECONDARY MARKETING LOSS
GATX ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS
The First American Financial Corporation Announces Significantly Improved Profitability in Third Quarter 1996

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