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Altisource Asset Management Corporation Reports Third Quarter 2022 Results

Altisource Asset Management Corporation
Altisource Asset Management Corporation

CHRISTIANSTED, U.S. Virgin Islands, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE American: AAMC) today announced financial and operating results for the third quarter of 2022.

Third Quarter 2022 Highlights and Recent Developments

  • The Company has acquired and originated more than $79.1 million in loan commitments and has earned $1.9 million from loan interest and fee income during the third quarter of 2022.

  • As of September 30, 2022, AAMC’s cash position was $13.5 million, which is net of the $97.7 million at quarter end for loans held for sale and investment at fair value.

  • The Company entered into a line of credit agreement with Flagstar Bank FSB ("Flagstar"). As of September 30, 2022, the Company has drawn $52.5 million on the line of credit.

  • The Company repurchased 286,873 shares of its common stock from Putnam Focused Equity Fund, a series of Putnam Trust, at $10.00 per share in July 2022.

  • The Company hired a Head of Sales and leased office space in Tampa, Florida for its Alternative Lending Group and has added staff to originate loans.

  • The Company prevailed in our litigation against its former CEO, Indroneel Chatterjee.

“Since March 2022, AAMC’s Alternative Lending Group has utilized both its existing capital and new debt financing to place the Company in a strong position to execute on its business plan,” said Jason Kopcak, Chief Executive Officer. "We do not plan on being an aggregator; however, the current volatility in the fixed income market has delayed our forward flow initiative for selling assets.   We continue to make significant strides of bringing new capital to the bridge space as take-out investors for the alternative assets that we are creating.”

Third Quarter 2022 Financial Results

AAMC’s net loss to common shareholders for the third quarter of 2022 was $(4.0) million compared to $(5.7) million for the same period in 2021. Diluted earnings per share was $(2.24) for the third quarter 2022, compared to $4.76 for the same period in 2021. The $4.76 includes a $16.1 million gain from a settlement of preferred stock that is not reflected in the net loss to common shareholders.

About AAMC

AAMC is an alternative lending company that provides liquidity and capital to under-served markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders such as Crypto-ATMs.

Additional information is available at www.altisourceamc.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, anticipations, and assumptions with respect to, among other things, the Company’s financial results, margins, employee costs, future operations, business plans including its ability to sell loans and obtain funding, and investment strategies as well as industry and market conditions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe,” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from these forward-looking statements may include, without limitation, our ability to develop our businesses, and to make them successful or sustain the performance of any such businesses; our ability to purchase, originate, and sell loans, our ability to obtain funding, market and industry conditions, particularly with respect to industry margins for loan products we may purchase, originate, or sell as well as the current inflationary economic and market conditions and rising interest rate environment; our ability to hire employees and the hiring of such employees; developments in the litigation regarding our redemption obligations under the Certificate of Designations of our Series A Convertible Preferred Stock; and other risks and uncertainties detailed in the “Risk Factors” and other sections described from time to time in the Company’s current and future filings with the Securities and Exchange Commission. The foregoing list of factors should not be construed as exhaustive.

The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.

 

Altisource Asset Management Corporation
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

2022

 

2021

 

2022

 

2021

Revenues:

 

 

 

 

 

 

 

Loan interest income

$

1,739

 

 

$

 

 

$

2,263

 

 

$

 

Loan fee income

 

166

 

 

 

 

 

 

175

 

 

 

 

Servicing fee revenue

 

1

 

 

 

 

 

 

1

 

 

 

 

Total revenues

 

1,906

 

 

 

 

 

 

2,439

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Salaries and employee benefits

 

1,563

 

 

 

878

 

 

 

4,042

 

 

 

4,078

 

Legal fees

 

796

 

 

 

2,207

 

 

 

3,532

 

 

 

5,726

 

Professional fees

 

262

 

 

 

165

 

 

 

837

 

 

 

1,186

 

General and administrative

 

779

 

 

 

585

 

 

 

2,336

 

 

 

1,889

 

Servicing and asset management expense

 

252

 

 

 

 

 

 

433

 

 

 

 

Acquisition charges

 

 

 

 

1,353

 

 

 

513

 

 

 

1,353

 

Interest expense

 

435

 

 

 

 

 

 

435

 

 

 

60

 

Direct loan expense

 

99

 

 

 

 

 

 

99

 

 

 

 

Loan sales and marketing expense

 

5

 

 

 

 

 

 

5

 

 

 

 

Total expenses

 

4,191

 

 

 

5,188

 

 

 

12,232

 

 

 

14,292

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Change in fair value of loans

 

(1,563

)

 

 

 

 

 

(1,888

)

 

 

 

Change in fair value of equity securities

 

 

 

 

(3,310

)

 

 

 

 

 

146

 

Gain on sale of equity securities

 

 

 

 

1,987

 

 

 

 

 

 

8,347

 

Dividend income

 

 

 

 

20

 

 

 

 

 

 

3,061

 

Other

 

8

 

 

 

8

 

 

 

24

 

 

 

87

 

Total other (expense) income

 

(1,555

)

 

 

(1,295

)

 

 

(1,864

)

 

 

11,641

 

 

 

 

 

 

 

 

 

Net loss from continuing operations before income taxes

 

(3,840

)

 

 

(6,483

)

 

 

(11,657

)

 

 

(2,651

)

Income tax expense (benefit)

 

146

 

 

 

(786

)

 

 

158

 

 

 

1,175

 

Net loss from continuing operations

$

(3,986

)

 

$

(5,697

)

 

$

(11,815

)

 

$

(3,826

)

 

 

 

 

 

 

 

 

Gain on discontinued operations (net of income tax expense of $1,272)

 

 

 

 

 

 

 

 

 

 

6,213

 

Net (loss) income attributable to common stockholders

$

(3,986

)

 

$

(5,697

)

 

$

(11,815

)

 

$

2,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations earnings per share

 

 

 

 

 

 

 

Net loss from continuing operations

$

(3,986

)

 

 

(5,697

)

 

$

(11,815

)

 

 

(3,826

)

Gain on preferred stock transaction

 

 

 

 

16,101

 

 

 

5,122

 

 

 

87,984

 

Numerator for earnings per share from continuing operations

$

(3,986

)

 

$

10,404

 

 

$

(6,693

)

 

$

84,158

 

 

 

 

 

 

 

 

 

Earnings per share of common stock – Basic:

 

 

 

 

 

 

 

Continuing operations

$

(2.24

)

 

$

5.06

 

 

$

(3.41

)

 

$

42.41

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

3.13

 

Total

$

(2.24

)

 

$

5.06

 

 

$

(3.41

)

 

$

45.54

 

Weighted average common stock outstanding

 

1,777,009

 

 

 

2,055,561

 

 

 

1,964,198

 

 

 

1,984,294

 

 

 

 

 

 

 

 

 

Earnings per share of common stock – Diluted:

 

 

 

 

 

 

 

Continuing operations

$

(2.24

)

 

$

4.76

 

 

$

(3.41

)

 

$

39.06

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

2.88

 

Total

$

(2.24

)

 

$

4.76

 

 

$

(3.41

)

 

$

41.94

 

Weighted average common stock outstanding

 

1,777,009

 

 

 

2,187,585

 

 

 

1,964,198

 

 

 

2,154,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Altisource Asset Management Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)

 

 

 

 

 

September 30, 2022

 

December 31, 2021

 

(unaudited)

 

 

ASSETS

 

 

 

Loans held for sale, at fair value

$

7,158

 

 

$

 

Loans held for investment, at fair value

 

90,514

 

 

 

 

Cash and cash equivalents

 

10,195

 

 

 

78,349

 

Restricted cash

 

3,000

 

 

 

 

Other assets

 

4,811

 

 

 

3,127

 

Total assets

$

115,678

 

 

$

81,476

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Liabilities

 

 

 

Accrued expenses and other liabilities

$

3,887

 

 

$

7,145

 

Lease liabilities

 

976

 

 

 

859

 

Credit facility

 

52,467

 

 

 

 

Total liabilities

 

57,330

 

 

 

8,004

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Redeemable preferred stock:

 

 

 

Preferred stock, $0.01 par value, 250,000 shares authorized as of September 30, 2022 and December 31, 2021. 144,212 shares issued and outstanding and $144,212 redemption value as of September 30, 2022 and 150,000 shares issued and outstanding and $150,000 redemption value as of December 31, 2021.

 

144,212

 

 

 

150,000

 

 

 

 

 

Stockholders' deficit:

 

 

 

Common stock, $0.01 par value, 5,000,000 authorized shares; 3,425,058 and 1,777,205 shares issued and outstanding, respectively, as of September 30, 2022 and 3,416,541 and 2,055,561 shares issued and outstanding, respectively, as of December 31, 2021.

 

34

 

 

 

34

 

Additional paid-in capital

 

148,900

 

 

 

143,523

 

Retained earnings

 

45,635

 

 

 

57,450

 

Accumulated other comprehensive income

 

25

 

 

 

54

 

Treasury stock, at cost, 1,647,853 shares as of September 30, 2022 and 1,360,980 shares as of December 31, 2021.

 

(280,458

)

 

 

(277,589

)

Total stockholders' deficit

 

(85,864

)

 

 

(76,528

)

Total Liabilities and Equity

$

115,678

 

 

$

81,476

 

 

 

 

 

 

 

 

 

CONTACT: FOR FURTHER INFORMATION CONTACT: Investor Relations T: +1-704-275-9113 E: IR@AltisourceAMC.com