Altisource Asset Management Corporation Reports First Quarter 2022 Results
April 22 2022 - 7:47AM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE American: AAMC) today announced financial and operating
results for the first quarter of 2022.
First Quarter 2022 Highlights and
Recent Developments
- The Company announced the creation of the Alternative Lending
Group (“ALG”) and approved an initial equity capital commitment of
up to $40 million for the purchase and origination of alternative
mortgage loans. The Company acquired a total commitment amount of
$18.5 million in loans, of which $17.8 million was outstanding at
March 31, 2022.
- As of March 31, 2022, AAMC’s cash position was $54.3 million,
which is net of the $17.8 million spent for the acquired
loans.
- The Company intends to bring a lawsuit against our former
director, Nathaniel Redleaf, and Luxor Capital Group, LP and
certain of its funds and managed accounts (collectively, “Luxor”),
for among other things, breach of fiduciary duty, aiding and
abetting breach of fiduciary duty, and breach of contract. The
Company has taken steps to facilitate the filing of this
lawsuit.
- The Company has hired Jason Kopcak as President and Chief
Operating Officer to lead ALG, among other responsibilities and is
expected to join AAMC in May 2022. Mr. Kopcak was most recently at
Morgan Stanley, joining in September 2018 as an Executive Director
with Morgan Stanley’s residential mortgage team within Global
Capital Markets. Prior to Morgan Stanley, Mr. Kopcak worked at
Nomura, a global financial services group, from May 2012 until
September 2018 in a similar capacity.
- The Company also secured a right of first refusal with the
technology company, ForumPay, to deploy crypto-enabled ATMs/Kiosks
worldwide. AAMC has earmarked up to $2.0 million initially to fund
both the acquisition of ATMs and build the operational capabilities
of the business line.
- The Company entered into a settlement agreement with two
institutional investors of its Series A preferred shares. The
Company paid the institutional investors approximately $665
thousand in cash in exchange for 5,788 Series A shares ($5.79
million of liquidation preference) and recognized a gain of
approximately $5.1 million to Additional paid in capital in the
first quarter of 2022.
“After a challenging 2021, management of the Company has
established a strong foundation for its future growth,” stated
Thomas K. McCarthy, Interim Chief Executive Officer, “and we are
extremely fortunate to have hired Mr. Kopcak and expect with his
expertise that we can execute on the ALG business plan in the form
of bottom line profits while managing risk.”
First Quarter 2022 Financial Results
AAMC’s net loss to common shareholders for the first quarter of
2022 was $(3.7) million compared to net income of $5.9 million for
the same period in 2021. Due to a $5.1 million gain on settlement
of preferred shares, which was recorded directly to equity, but is
included in the numerator of our earnings per share calculations,
diluted earnings per share was $0.66 for the quarter, compared to
$37.41 for the same period in 2021 which also included a $71.9
million gain on settlement of preferred shares.
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 our 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, future operations, business plans
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; developments in the litigation regarding
our redemption obligations under the Certificate of Designations of
our Series A Convertible Preferred Stock; the filing of any lawsuit
against Mr. Redleaf and Luxor; 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
CorporationCondensed Consolidated Statements of
Operations(In thousands, except share and per
share amounts)(Unaudited) |
|
|
|
|
|
Three months ended March 31, |
|
|
2022 |
|
2021 |
Expenses: |
|
|
|
|
Salaries and benefits |
|
$ |
924 |
|
|
$ |
3,545 |
|
Legal fees |
|
|
1,357 |
|
|
|
1,336 |
|
Professional fees |
|
|
266 |
|
|
|
549 |
|
General and
administrative |
|
|
729 |
|
|
|
753 |
|
Acquisition charges |
|
|
424 |
|
|
|
— |
|
Total expenses: |
|
|
3,700 |
|
|
|
6,183 |
|
|
|
|
|
|
Other (loss)
income: |
|
|
|
|
Change in fair value of Front
Yard common stock |
|
|
— |
|
|
|
146 |
|
Foreign exchange loss,
net |
|
|
2 |
|
|
|
— |
|
Change in fair value of equity
securities |
|
|
— |
|
|
|
5,721 |
|
Dividend income |
|
|
— |
|
|
|
2,154 |
|
Interest expense |
|
|
— |
|
|
|
(36 |
) |
Other income |
|
|
5 |
|
|
|
135 |
|
Total other income: |
|
|
7 |
|
|
|
8,120 |
|
|
|
|
|
|
Net (loss) income from
continuing operations before income taxes |
|
|
(3,693 |
) |
|
|
1,937 |
|
Income tax expense |
|
|
5 |
|
|
|
2,294 |
|
Net loss from continuing operations |
|
|
(3,698 |
) |
|
|
(357 |
) |
|
|
|
|
|
Discontinued
operations: |
|
|
|
|
Gain on disposal of operation
related to Front Yard |
|
|
— |
|
|
|
7,485 |
|
Income tax expense related to
disposal |
|
|
— |
|
|
|
1,272 |
|
Net gain on discontinued operations |
|
|
— |
|
|
|
6,213 |
|
|
|
|
|
|
Net (loss) income |
|
|
(3,698 |
) |
|
|
5,856 |
|
Net (loss) income attributable to common
stockholders |
|
$ |
(3,698 |
) |
|
$ |
5,856 |
|
|
|
|
|
|
|
|
|
|
|
Continuing operations earnings
per share |
|
|
|
|
Net loss from continuing
operations |
|
|
(3,698 |
) |
|
|
(357 |
) |
Gain on preferred stock transaction |
|
|
5,122 |
|
|
|
71,883 |
|
Numerator for earnings
per share from continuing operations |
|
$ |
1,424 |
|
|
$ |
71,526 |
|
|
|
|
|
|
Discontinued operations
earnings per share |
|
|
|
|
Net income from
discontinued operations |
|
$ |
— |
|
|
$ |
6,213 |
|
|
|
|
|
|
Earnings per share of
common stock – basic: |
|
|
|
|
Continuing operations –
basic |
|
$ |
0.69 |
|
|
$ |
38.78 |
|
Discontinued operations –
basic |
|
|
0.00 |
|
|
|
3.37 |
|
Earnings per basic common share |
|
$ |
0.69 |
|
|
$ |
42.15 |
|
Weighted average common stock
outstanding – basic |
|
|
2,056,666 |
|
|
|
1,844,212 |
|
|
|
|
|
|
Earnings per share of
common stock – diluted: |
|
|
|
|
Continuing operations –
diluted |
|
$ |
0.66 |
|
|
$ |
34.42 |
|
Discontinued operations –
diluted |
|
|
0.00 |
|
|
|
2.99 |
|
Earnings per diluted common share |
|
$ |
0.66 |
|
|
$ |
37.41 |
|
Weighted average common stock
outstanding – diluted |
|
|
2,174,002 |
|
|
|
2,078,077 |
|
|
|
|
|
|
|
|
|
|
|
Altisource Asset Management
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts) |
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
(unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
54,370 |
|
|
$ |
78,349 |
|
Loans held for sale |
|
17,723 |
|
|
|
— |
|
Prepaid expenses and other
assets |
|
1,752 |
|
|
|
1,837 |
|
Total current assets |
|
73,845 |
|
|
|
80,186 |
|
|
|
|
|
Non-current
assets: |
|
|
|
Right-of-use lease assets |
|
785 |
|
|
|
825 |
|
Other non-current assets |
|
355 |
|
|
|
465 |
|
Total non-current assets |
|
1,140 |
|
|
|
1,290 |
|
Total assets |
$ |
74,985 |
|
|
$ |
81,476 |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accrued salaries and employee
benefits |
$ |
814 |
|
|
$ |
983 |
|
Accounts payable and accrued
liabilities |
|
2,680 |
|
|
|
3,465 |
|
Short-term lease
liabilities |
|
144 |
|
|
|
139 |
|
Total current liabilities |
|
3,638 |
|
|
|
4,587 |
|
|
|
|
|
Non-current
liabilities: |
|
|
|
Long-term lease
liabilities |
|
677 |
|
|
|
720 |
|
Other non-current
liabilities |
|
1,470 |
|
|
|
2,697 |
|
Total non-current liabilities |
|
2,147 |
|
|
|
3,417 |
|
Total liabilities |
|
5,785 |
|
|
|
8,004 |
|
|
|
|
|
Commitments and
contingencies: |
|
— |
|
|
|
— |
|
|
|
|
|
Redeemable preferred
stock: |
|
|
|
Preferred stock, $0.01 par
value, 250,000 shares authorized as of March 31, 2022 and
December 31, 2021. 144,212 shares issued and outstanding and
$144,212 redemption value as of March 31, 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; 3,422,391 and 2,061,411 shares issued
and outstanding, respectively, as of March 31, 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 |
|
148,742 |
|
|
|
143,523 |
|
Retained earnings |
|
53,753 |
|
|
|
57,450 |
|
Accumulated other
comprehensive loss |
|
48 |
|
|
|
54 |
|
Treasury stock, at cost,
1,360,980 shares as of March 31, 2022 and December 31,
2021. |
|
(277,589 |
) |
|
|
(277,589 |
) |
Total stockholders' deficit |
|
(75,012 |
) |
|
|
(76,528 |
) |
Total liabilities and equity |
$ |
74,985 |
|
|
$ |
81,476 |
|
|
|
|
|
|
|
|
|
FOR FURTHER INFORMATION CONTACT:Investor
RelationsT: +1-704-275-9113E: IR@AltisourceAMC.com
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