DEL MAR, Calif., Jan. 22 /PRNewswire/ -- American Residential Investment
Trust, Inc. (NYSE: INV) today announced that for the quarter ended December
31, 2000, the Company reported a net loss of $566 thousand, or $0.07 per
diluted share. On December 14, 2000, the Company estimated the loss for the
quarter to be between $0.05 and $0.10 per share.
The net loss for the year ended December 31, 2000 was $ 6.2 million
compared to a net loss of $3.9 million for the year ended December 31,
1999. The net loss per diluted share was $ 0.77 for the year ended December
31, 2000 compared to a net loss of $0.48 per diluted share for 1999. The
Company's total mortgage assets were $858 million at December 31, 2000
compared to $1.3 billion at December 31, 1999.
The Company's net operating loss for the year ended December 31, 2000 was
$1.1 million, or $0.14 per diluted share, net of accounting charges incurred
related to a retained interest in a REMIC securitization.
In commenting on the fourth quarter, John M. Robbins, Jr., Chairman and
Chief Executive Officer, stated, "As I said in December, our goal is to
maintain a strong capital structure during our transition and to allocate the
majority of our cash reserves to build the infrastructure for our origination
business. Although short-term operating income suffered because the size of
the portfolio has decreased, we believe our strategy to become a mortgage
originator will provide new sources of revenue."
Robbins further noted, "The recent lowering of interest rates by the
Federal Reserve Board, as well as the general decline in most market interest
rates, will lower the cost of much of the Company's borrowings. We are
encouraged by the widening spreads that this brings to the portfolio."
On December 14th, the Company's Board of Directors declared a dividend of
$0.20 per share of common stock for the fourth quarter of 2000. The fourth
quarter dividend had a record date of January 3, 2001 and will be paid on
January 31, 2001. For the year ended December 31, 2000, the Company declared
dividends totaling $0.80 per common share. In December, American Residential
also announced that the Board of Directors had authorized the Company to
repurchase up to $1 million of its common stock. The timing and extent of
these repurchases are dependent on market conditions and corporate
requirements.
American Residential Investment Trust, Inc. is a real estate investment
trust (REIT) that invests primarily in non-conforming, residential mortgage
assets. For more information on American Residential, please visit the
Company's web site at http://www.amerreit.com.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of federal securities laws.
Forward-looking statements include statements regarding the Company's
investment in and development of a direct origination business, the allocation
of cash reserves, the ability of the Company to provide new sources of
revenue, the Company's borrowing costs and portfolio spreads and the amount
and timing of stock repurchases. Actual results and the timing of certain
events could differ materially from those projected in or contemplated by
these forward-looking statements due to a number of factors, including but not
limited to: general economic conditions; mortgage loan prepayment rates;
credit losses; overall interest rates; the shape of the yield curve; the
availability of suitable mortgage assets; the availability of financing for
the origination, acquisition or securitization of mortgage assets; the impact
of leverage; the Company's ability to successfully implement a residential
mortgage direct origination business, the Company's liquidity position and
other risk factors outlined in the Company's SEC reports.
--table to follow--
AMERICAN RESIDENTIAL INVESTMENT TRUST, INC.
Three Three
Months Months Year Year
Ended Ended Ended Ended
12/31/2000 12/31/1999 12/31/2000 12/31/1999
Income Statement
Interest income $19,244 $25,477 $86,347 $77,367
Interest expense (15,624) (17,797) (69,328) (49,644)
Gross interest spread on
mortgage portfolio 3,620 7,680 17,019 27,723
Other interest income 233 437 880 3,531
Premium amortization (2,338) (4,036) (10,773) (16,625)
Premium write down -- (12,294) -- (12,294)
Hedging expense, net (216) (69) (690) (1,779)
Net interest income / (loss)
before provision for loan
losses 1,299 (8,282) 6,436 556
Provision for loan losses and
net (loss) / gain on sale-REO (1,113) (1,186) (6,113) (3,999)
Net (loss) / gain on sale of
mortgage assets -- -- (167) 30
Impairment loss on retained
interest in securitization (391) -- (5,093) --
Prepayment penalty income 833 1,093 3,633 3,774
Other operating income 343 167 922 645
Management fees (843) (1,182) (3,852) (3,557)
Loan, general & administrative
expenses (694) (266) (1,964) (1,299)
Net (loss) / income (566) (9,656) (6,198) (3,850)
Per Share Data
Weighted average common and
common equivalent shares
outstanding 8,053,872 8,055,500 8,055,500 8,055,500
(Loss) / income per share -
basic and diluted $(0.07) $(1.20) $(0.77) $(0.48)
Common dividend declared for
the period $0.20 $0.30 $0.80 $1.02
Balance Sheet Data
Total mortgage assets 858,199 1,291,744
Total assets 882,573 1,313,342
Short-term debt 5,083 119,003
Long-term debt, net 797,182 1,103,258
Total stockholders' equity $76,627 $86,854
Asset to equity ratio 11.5:1 15.1:1
Total mortgage assets
purchased in period $-- $126,292 $622 $990,557
($ in thousands, except per share data)
SOURCE American Residential Investment Trust, Inc.
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Related links:
http://www.amerreit.com
CONTACT:
Judith Berry, 858-350-5012, or Clay
Strittmatter, 858-350-5006, both of American Residential
Investment Trust, Inc.; or Corinne Forti of Forti Communications,
Inc., 805-498-0113
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