DEL MAR, Calif., April 30 /PRNewswire/ -- American Residential Investment
Trust, Inc. (NYSE: INV) today announced that for the first quarter ended March
31, 2001, the Company reported a net loss of $594,000, or $0.07 per diluted
share before the cumulative effect of adopting SFAS 133, compared to net
income of $1.5 million, or $0.19 per diluted share at March 31, 2000.
Reiterating the Company's policy to pay dividends based on taxable earnings,
the Board of Directors suspended its dividend payment.
The Company adopted SFAS 133 in the quarter, which required all cap
agreements to be reduced to market value. Previously, the Company amortized
the cost of cap agreements as expense over the life of the caps. The net loss
for the first quarter including the cumulative effect of the accounting change
was $1.7 million, or $0.21 per diluted share. The charge related to the
change was $1.1 million, or $0.14 per diluted share. The Company's total
mortgage assets were $784 million at March 31, 2001 compared to $1.1 billion
at March 31, 2000.
In commenting on the first quarter, John M. Robbins, Jr., Chairman and
Chief Executive Officer, said, "As I have previously stated, near-term we
expect that gross operating revenues will continue to decline as we allow the
size of the portfolio to decrease in favor of allocating capital to support
our anticipated investment in LoanCity. Wider margins in the portfolio were
offset in the first quarter by higher credit provisions tied to a normal
seasoning of our non-conforming portfolio. We expect that the recent interest
rate cuts will have a positive effect on our second quarter 2001 earnings and
cash flow. However, because dividends are based on taxable earnings, the
Company does not anticipate paying dividends in 2001 due to a tax loss carry
forward."
Robbins further noted, "Our ongoing objective is to maintain a strong
capital structure during our transition to an origination company. The
transaction with LoanCity is a critical milestone in diversifying our income
stream and creating significant long-term revenue and growth opportunities."
On April 16, 2001 American Residential announced that it had signed a
letter of intent to purchase a controlling interest in LoanCity.com, a leading
provider of loan search software and fulfillment tailored to the needs of
mortgage brokers and mortgage bankers. LoanCity generated approximately
$400 million in mortgage loans in March 2001. It was formed in 1987 and began
offering its METRO 8.0 search software in 2000 through its network of five
regional offices located in Arizona, California, and Florida. LoanCity is
licensed to do business in 49 states and has correspondent agreements with
30 top-tier lending institutions.
Subsequent to the completion of the LoanCity transaction, which is
expected to close in May, the Company plans to issue guidance on its earnings
for the remainder of the year.
Headquartered in Del Mar, California, American Residential Investment
Trust, Inc. is a real estate investment trust (REIT) that has invested
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 decline of gross
operating revenues, a decrease in portfolio size, the allocation of capital to
an investment in LoanCity, second quarter 2001 earnings and cash flow, the
lack of dividend payments in 2001, the Company's ability to transition to an
origination company through an investment in LoanCity and resulting revenue
and growth opportunities and the issuance of future earnings guidance. 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 complete due diligence and negotiate a definitive agreement to
invest in LoanCity; the Company's liquidity position and other risk factors
outlined in the Company's SEC reports.
AMERICAN RESIDENTIAL INVESTMENT TRUST, INC.
Three Months Three Months Three Months
Ended Ended Ended
03/31/2001 12/31/2000 03/31/2000
Income Statement
Interest income $18,077 $19,244 $25,029
Interest expense (14,249) (15,624) (18,856)
Gross interest spread on
mortgage portfolio 3,828 3,620 6,173
Other interest income 188 233 180
Premium amortization (2,476) (2,337) (3,438)
Hedging expense, net -- (217) (139)
Net interest income before
provision for loan losses 1,540 1,299 2,776
Provision for loan losses and
net (loss) gain on sale-REO (1,893) (1,114) (700)
Gain (loss) on retained interest
in securitization -- (391) --
Unrealized loss on interest rate
cap agreements (9) -- --
Prepayment penalty income 821 833 936
Other operating income 162 342 111
Management fees (766) (835) (1,093)
Loan, general & administrative
expenses (449) (700) (527)
(Loss) income before cumulative
effect of accounting change (594) (566) 1,503
Cumulative effect of accounting
change (1,106) -- --
Net (loss) income $(1,700) $(566) $1,503
Per Share Data
Weighted average common and
common equivalent shares
outstanding 7,970,133 8,053,872 8,055,500
Net (loss) income per share
before cumulative effect of
accounting change $(0.07) $(0.07) $0.19
(Loss) income per share - basic
and diluted $(0.21) $(0.07) $0.19
Common dividend declared for the
period $-- $0.20 $0.20
Balance Sheet Data
Total mortgage assets $784,481 $858,199 $1,123,232
Total assets 806,154 882,573 1,149,028
Short-term debt 3,988 5,083 63,139
Long-term debt, net 724,829 797,182 996,005
Total stockholders' equity $74,769 $76,627 $87,757
Asset to equity ratio 10.8:1 11.5:1 13.1:1
Total mortgage assets purchased
in period $-- $-- $622
($ in thousands, except per share data)
SOURCE American Residential Investment Trust, Inc.
 back to top
Related links:
http://www.amerreit.com
CONTACT:
investors, Judith Berry, Chief Financial
Officer, 858-350-5012, judy@amerreit.com, or Clay Strittmatter,
Senior Vice President, Finance, 858-350-5006, clay@amerreit.com,
both of American Residential Investment Trust, Inc.; or media,
Corinne Forti, President of Forti Communications, Inc.,
805-498-0113, forticomm@aol.com, for American Residential
Investment Trust, Inc.
|
