Front Yard Residential Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 10, 2015

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8-K - 8-K - Front Yard Residential Corpresiform8k2q2015earn.htm


Exhibit 99.1


FOR IMMEDIATE RELEASE
 
 
FOR FURTHER INFORMATION CONTACT:
Robin N. Lowe
Chief Financial Officer
T: 1-345-815-9919
E: Robin.Lowe@AltisourceAMC.com 

Altisource Residential Corporation Reports Second Quarter 2015 Results

CHRISTIANSTED, U.S. Virgin Islands, August 10, 2015 (GLOBE NEWSWIRE) - Altisource Residential Corporation (“Residential” or the “Company”) (NYSE: RESI) today announced financial and operating results for the second quarter of 2015.

Second Quarter 2015 Highlights:

•
Estimated taxable income for the second quarter of 2015 increased by 42% to $37.7 million, from $26.5 million for the second quarter of 2014.
•
Declared and paid a $0.55 per share dividend.
•
Agreed to purchase up to 1,325 single-family rental homes from Invitation Homes for an aggregate purchase price of $112.6 million. Transaction expected to close in August 2015.
•
Completed a third non-performing loan securitization in June 2015.
•
Transferred servicing of 4,342 loans with an aggregate UPB of $1.2 billion to our two new mortgage servicers.
•
Sold 189 re-performing mortgage loans for total proceeds of $34.6 million.
•
Asset management fees reduced to $5.2 million in the second quarter of 2015 from $15.5 million in the second quarter of 2014.
•
Initiated a program to acquire rental properties on a one-by-one basis using a proprietary valuation model. Expect to commence purchases in the third quarter of 2015.

“In the second quarter of 2015, we took crucial steps to diversify Residential’s acquisition strategies to anticipate and respond to changing market conditions and grow our single-family rental portfolio,” said Chief Executive Officer George G. Ellison. “I believe these critical achievements position Residential to be one of the preeminent single-family rental players in the industry. We are also undertaking grass root efforts to offer quality, affordable rental homes to working class families while offering incentives and beneficial programs for our renters to improve their credit ratings and provide with them opportunities to improve their living situations.”

Second Quarter 2015 Financial Results

Net income totaled $13.1 million, or $0.23 per diluted share, for the second quarter of 2015 compared to net income of $67.8 million, or $1.18 per diluted share, for the second quarter of 2014. Net income for the six months ended June 30, 2015 totaled $25.5 million, or $0.44 per diluted share, compared to net income of $109.7 million, or $1.97 per diluted share, for the six months ended June 30, 2014.





Webcast and conference call

The Company will host a webcast and conference call on Monday, August 10, 2015, at 8:30 a.m. Eastern Time to discuss its financial results for the second quarter of 2015. The conference call will be webcast live over the internet from the Company’s website at www.altisourceresi.com and can be accessed by clicking on the “Shareholders” link.

About Residential

Residential is focused on providing quality, affordable rental homes to families throughout the United States.  Additional information is available at www.altisourceresi.com.

Forward-looking statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical fact, including statements about management’s beliefs and expectations. Forward-looking statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. Residential undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: Residential’s ability to implement its business plan; Residential’s ability to leverage strategic relationships on an efficient and cost-effective basis; its ability to compete; general economic and market conditions; governmental regulations, taxes and policies; availability of adequate and timely sources of liquidity and financing and other risks and uncertainties detailed in the “Forward-Looking Statements,” “Risk Factors” and other sections of Residential’s Annual Report on Form 10-K, its quarterly reports on Form 10-Q and its other filings with the Securities and Exchange Commission.









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

 
Three months ended June 30, 2015
 
Three months ended June 30, 2014
 
Six months ended June 30, 2015
 
Six months ended June 30, 2014
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
Rental revenues
$
2,140

 
$
181

 
$
3,540

 
$
250

Net unrealized gain on mortgage loans
42,209

 
105,042

 
103,343

 
170,172

Net realized gain on mortgage loans
19,272

 
10,819

 
34,654

 
20,140

Net realized gain on re-performing mortgage loans
254

 
—

 
405

 
—

Net realized gain on real estate
12,404

 
1,234

 
23,012

 
1,234

Interest income
240

 
81

 
480

 
189

Total revenues
76,519

 
117,357

 
165,434

 
191,985

Expenses:
 
 
 
 
 
 
 
Residential property operating expenses
16,857

 
3,253

 
29,316

 
4,303

Real estate depreciation and amortization
1,344

 
103

 
2,342

 
151

Real estate selling costs and impairment
8,839

 
2,879

 
23,530

 
3,233

Mortgage loan servicing costs
16,246

 
16,925

 
34,512

 
28,362

Interest expense
13,398

 
6,945

 
25,041

 
12,653

General and administrative
1,569

 
2,808

 
6,350

 
3,846

Related party general and administrative
5,151

 
17,467

 
20,801

 
30,099

Total expenses
63,404

 
50,380

 
141,892

 
82,647

Other income
—

 
383

 
2,000

 
383

Income before income taxes
13,115

 
67,360

 
25,542

 
109,721

Income tax expense (benefit)
23

 
(422
)
 
26

 
26

Net income
$
13,092

 
$
67,782

 
$
25,516

 
$
109,695

 
 
 
 
 
 
 
 
Earnings per share of common stock – basic:
 
 
 
 
 
 
 
Earnings per basic share
$
0.23

 
$
1.19

 
$
0.45

 
$
1.98

Weighted average common stock outstanding – basic
57,208,273

 
57,138,695

 
57,204,602

 
55,297,630

Earnings per share of common stock – diluted:
 
 
 
 
 
 
 
Earnings per diluted share
$
0.23

 
$
1.18

 
$
0.44

 
$
1.97

Weighted average common stock outstanding – diluted
57,407,845

 
57,401,953

 
57,407,253

 
55,754,685

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.55

 
$
0.45

 
$
1.18

 
$
0.93











Altisource Residential Corporation
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)

 
June 30, 2015
 
December 31, 2014
Assets:
 
 
 
Real estate held for use:
 
 
 
Land
$
23,743

 
$
14,424

Rental residential properties (net of accumulated depreciation of $3,351 and $1,062, respectively)
97,533

 
60,908

Real estate owned
548,137

 
457,045

Total real estate held for use, net
669,413

 
532,377

Real estate assets held for sale
134,027

 
92,230

Mortgage loans at fair value
1,716,489

 
1,959,044

Mortgage loans held for sale
5,977

 
12,535

Cash and cash equivalents
70,502

 
66,166

Restricted cash
18,459

 
13,282

Accounts receivable
45,981

 
10,313

Related party receivables
—

 
17,491

Investment in affiliate
18,000

 
18,000

Deferred leasing and financing costs, net
8,605

 
4,251

Prepaid expenses and other assets
6,184

 
373

Total assets
$
2,693,637

 
$
2,726,062

Liabilities:
 
 
 
Repurchase and loan and security agreements
$
810,236

 
$
1,015,000

Other secured borrowings (including $14,991 repurchase agreement with NewSource at June 30, 2015 and December 31, 2014)
538,916

 
339,082

Accounts payable and accrued liabilities
54,247

 
11,678

Related party payables
5,163

 
33,391

Total liabilities
1,408,562

 
1,399,151

Commitments and contingencies

 
 
Equity:
 
 
 
Common stock, $.01 par value, 200,000,000 authorized shares; 57,216,166 and 57,192,212 shares issued and outstanding, at June 30, 2015 and December 31, 2014, respectively
572

 
572

Additional paid-in capital
1,227,246

 
1,227,091

Retained earnings
57,257

 
99,248

Total equity
1,285,075

 
1,326,911

Total liabilities and equity
$
2,693,637

 
$
2,726,062








Non-GAAP measures - Estimated REIT taxable income

Estimated REIT taxable income is a measure that we use in connection with monitoring our compliance with certain REIT requirements. Estimated REIT taxable income should not be considered as an alternative to net income or net income per share as indicators of our operating performance.

The following table is a reconciliation of U.S. GAAP net income to estimated REIT taxable income ($ in thousands):

 
Three months ended June 30, 2015
 
Six months ended June 30, 2015
Income before income taxes
$
13,115

 
$
25,542

Add net loss of taxable REIT subsidiaries
9,119

 
14,066

Adjusted net income
22,234

 
39,608

Book to tax differences:
 
 
 
Net unrealized gain on mortgage loans
5,598

 
(7,051
)
Net realized gain on mortgage loans
(1,411
)
 
(4,255
)
Net realized gain on re-performing mortgage loans
194

 
112

Net realized gain on real estate sold
(13,175
)
 
(23,974
)
Interest income, advances and recoveries
8,432

 
14,614

Depreciation
(254
)
 
100

Valuations and impairments
3,743

 
14,451

Mortgage loan servicing cost
12,301

 
25,461

Acquisition fees and due diligence
(92
)
 
36

Other book/tax differences, net
97

 
223

Estimated REIT taxable income
$
37,667

 
$
59,325





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