SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002
Commission File Number: 001-13709
ANWORTH MORTGAGE ASSET CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| MARYLAND |
|
52-2059785 |
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| 1299 Ocean Avenue, #250, Santa Monica, California |
|
90401 |
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| Registrant’s telephone number, including area code: (310) 255-4493 | ||
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| Yes |
x |
No |
o |
As of November 12, 2002, the Registrant had 24,238,351 shares of Common Stock issued and outstanding.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
ANWORTH MORTGAGE ASSET CORPORATION
BALANCE SHEETS
(in thousands, except for share amounts)
|
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September 30, |
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December 31, |
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| ASSETS |
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Mortgage backed securities |
|
$ |
2,371,562 |
|
$ |
420,214 |
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Other marketable securities |
|
|
— |
|
|
1,803 |
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Cash and cash equivalents |
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284 |
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290 |
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Interest and dividend receivable |
|
|
12,302 |
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|
2,293 |
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Prepaid expenses and other |
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180 |
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|
10 |
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2,384,328 |
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$ |
424,610 |
| |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| Liabilities |
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Reverse repurchase agreements |
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$ |
2,113,347 |
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$ |
325,307 |
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Payable for purchase of mortgage-backed securities |
|
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— |
|
|
40,819 |
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|
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Accrued interest payable |
|
|
7,697 |
|
|
1,293 |
|
|
|
Dividends payable |
|
|
11,975 |
|
|
1,329 |
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Accrued expenses and other |
|
|
1,872 |
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|
865 |
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$ |
2,134,891 |
|
$ |
369,613 |
| |
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| Stockholders’ Equity |
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Common stock, par value $.01 per share; authorized 100,000,000 shares; 24,100,418 and 7,000,765 issued and 24,050,418 and 6,950,765 outstanding respectively |
|
|
241 |
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|
70 |
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Additional paid in capital |
|
|
241,313 |
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|
54,324 |
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Accumulated other comprehensive income, unrealized gain on available-for-sale securities |
|
|
13,196 |
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|
705 |
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Retained earnings |
|
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(4,310 |
) |
|
127 |
|
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|
Unearned restricted stock |
|
|
(774 |
) |
|
— |
|
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Treasury stock at cost (50,000 shares) |
|
|
(229 |
) |
|
(229 |
) |
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|
|
|
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|
249,437 |
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|
54,997 |
| |
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| |
|
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$ |
2,384,328 |
|
$ |
424,610 |
| |
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See accompanying notes to financial statements.
-1-
ANWORTH MORTGAGE ASSET CORPORATION
STATEMENTS OF OPERATIONS
(in thousands,
except for per share amounts)
(unaudited)
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For the three months ended |
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For the nine months ended |
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2002 |
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2001 |
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2002 |
|
2001 |
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| Interest and dividend income net of amortization of premium and discount |
|
$ |
23,134 |
|
$ |
2,564 |
|
$ |
43,276 |
|
$ |
7,639 |
| |
| Interest expense |
|
|
(10,469 |
) |
|
(1,403 |
) |
|
(18,590 |
) |
|
(4,974 |
) | |
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| Net interest income |
|
|
12,665 |
|
|
1,161 |
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|
24,686 |
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|
2,665 |
| |
| Gain on sales |
|
|
1,838 |
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|
166 |
|
|
3,493 |
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|
318 |
| |
| Expenses: |
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External base management fee |
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— |
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(52 |
) |
|
(400 |
) |
|
(148 |
) |
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External incentive fee |
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|
— |
|
|
(174 |
) |
|
(1,741 |
) |
|
(318 |
) |
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|
Compensation and benefits |
|
|
(189 |
) |
|
— |
|
|
(207 |
) |
|
— |
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Incentive compensation |
|
|
(1,428 |
) |
|
— |
|
|
(1,751 |
) |
|
— |
|
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Cost incurred in acquiring external manager |
|
|
(295 |
) |
|
— |
|
|
(3,475 |
) |
|
— |
|
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Other expenses |
|
|
(490 |
) |
|
(77 |
) |
|
(700 |
) |
|
(255 |
) |
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| |
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Net income |
|
$ |
12,101 |
|
$ |
1,024 |
|
$ |
19,905 |
|
$ |
2,262 |
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| Basic earnings per share |
|
$ |
0.52 |
|
$ |
0.43 |
|
$ |
1.32 |
|
$ |
0.96 |
| |
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| Dividends declared per share |
|
$ |
0.50 |
|
$ |
0.54 |
|
$ |
1.50 |
|
$ |
0.98 |
| |
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| Average number of shares outstanding |
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23,336 |
|
|
2,384 |
|
|
15,112 |
|
|
2,369 |
| |
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| Diluted earnings per share |
|
$ |
0.52 |
|
$ |
0.42 |
|
$ |
1.31 |
|
$ |
0.95 |
| |
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| Average number of diluted shares outstanding |
|
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23,433 |
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|
2,423 |
|
|
15,192 |
|
|
2,381 |
| |
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See accompanying notes to financial statements.
-2-
ANWORTH MORTGAGE ASSET CORPORATION
STATEMENTS OF STOCKHOLDERS’ EQUITY
(in
thousands)
(unaudited)
|
|
|
Common |
|
Common |
|
Additional |
|
Accum. |
|
Retained |
|
Unearned |
|
Treasury |
|
Compre- |
|
Total |
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| Balance, December 31, 2001 |
|
|
6,951 |
|
$ |
70 |
|
$ |
54,324 |
|
$ |
705 |
|
$ |
127 |
|
$ |
|
|
$ |
(229 |
) |
|
|
|
$ |
54,997 |
| |
|
|
Issuance of common stock |
|
|
4,882 |
|
|
49 |
|
|
40,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,152 |
|
|
|
Available-for-sale securities, fair value adjustment |
|
|
|
|
|
|
|
|
|
|
|
(4,448 |
) |
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|
|
|
|
|
|
|
|
|
(4,448 |
) |
|
(4,448 |
) |
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Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,115 |
|
|
|
|
|
|
|
|
4,115 |
|
|
4,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(333 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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| Balance, March 31, 2002 |
|
|
11,833 |
|
$ |
119 |
|
$ |
94,427 |
|
$ |
(3,743 |
) |
$ |
4,242 |
|
$ |
|
|
$ |
(229 |
) |
|
|
|
$ |
94,816 |
| |
|
|
Issuance of common stock |
|
|
10,992 |
|
|
109 |
|
|
131,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131,986 |
|
|
|
Available-for-sale securities, fair value adjustment |
|
|
|
|
|
|
|
|
|
|
|
7,574 |
|
|
|
|
|
|
|
|
|
|
|
7,574 |
|
|
7,574 |
|
|
|
Unrealized gain on cash flow hedge recognized in net income |
|
|
|
|
|
|
|
|
|
|
|
(391 |
) |
|
|
|
|
|
|
|
|
|
|
(391 |
) |
|
(391 |
) |
|
|
Issuance of restricted stock |
|
|
60 |
|
|
1 |
|
|
793 |
|
|
|
|
|
|
|
|
(794 |
) |
|
|
|
|
|
|
|
— |
|
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|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,689 |
|
|
|
|
|
|
|
|
3,689 |
|
|
3,689 |
|
|
|
|
|
|
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