Altisource Asset Management Corporation Reports Fourth Quarter and Full Year 2021 Results
31 Mars 2022 - 10:31PM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE American: AAMC) today announced financial and operating
results for the fourth quarter and full year of 2021.
Recent Developments
As previously announced on March 18, 2022, the
Company has started operations of its Alternative Lending Group
(ALG) with a capital commitment of $40 million.
As of March 31, 2022, the Company pipeline
consists of the following:
Description |
Amount |
Loans acquired |
$18,470,000 |
Loans under evaluation |
9,258,000 |
Total |
27,728,000 |
Our Interim Chief Executive Officer, Thomas K.
McCarthy, has had his engagement extended to May 31, 2022.
Our new President and Chief Operating Officer,
Jason Kopcak, will officially start his new position on or before
May 15, 2022.
Subsequent to year end, the Company entered into
a settlement agreement regarding its outstanding Series A
Convertible Preferred Stock and has agreed to pay two institutional
investors approximately $665 thousand in cash in exchange for 5,788
Series A Preferred shares ($5.79 million of liquidation
preference).
In addition, subsequent to year end, the Company
has agreed to a settlement in principle with its former General
Counsel effective March 2022.
“We are pleased with our current efforts in
launching our new Alternative Lending Group (“ALG”) platform. This
past year has been challenging for the Company as we attempted to
find the best fit given our resources and where we could leverage
the experience of our management team. We believe that both our
lending plans through ALG complimented by an opportunity with
Crypto-ATMs will provide long-term shareholder value. We still have
a lot of work to do in 2022, and we believe that we have the right
strategy, management team and capital position to capitalize on
these two opportunities,” stated Interim Chief Executive Officer,
Thomas K. McCarthy.
Fourth Quarter and Full
Year 2021 GAAP Financial Results
AAMC’s net loss to common shareholders for the
fourth quarter of 2021 was $(8.4) million compared to net income of
$39.7 million for the same period in 2020. The loss per share was
$(4.09) for the quarter, compared to $20.35 for the same period in
2020.
AAMC's net loss to common shareholders for the
year ended December 31, 2021 was $(6.0) million compared to
net income of $39.8 million for the same period in 2020. Due to an
$88.0 million gain on settlement of preferred shares in 2021, which
was recorded directly to equity, but is included in the numerator
for our earnings per share calculations; diluted earnings per share
was $37.90 for the year ended December 31, 2021, compared with
$24.38 for the same period in 2020.
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 implement our
business strategy; our ability to develop and implement new
businesses or, to the extent such businesses are developed, our
ability to make them successful or sustain the performance of any
such businesses; our ability to retain and maintain our strategic
relationships; our ability to effectively compete with our
competitors; developments in the litigation regarding our
redemption obligations under the Certificate of Designations of our
Series A Convertible Preferred Stock (the “Series A Shares”),
including our ability to obtain declaratory relief confirming that
we were not obligated to redeem any of the Series A Shares on the
March 15, 2020 redemption date if we do not have funds legally
available to redeem all, but not less than all, of the Series A
Shares requested to be redeemed on that redemption date; 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 December 31, |
|
Twelve months ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
1,557 |
|
|
$ |
3,896 |
|
|
$ |
5,635 |
|
|
$ |
11,977 |
|
Legal fees |
|
1,159 |
|
|
|
810 |
|
|
|
6,885 |
|
|
|
4,748 |
|
Professional fees |
|
345 |
|
|
|
714 |
|
|
|
1,531 |
|
|
|
1,457 |
|
General and administrative |
|
684 |
|
|
|
619 |
|
|
|
2,633 |
|
|
|
2,328 |
|
Acquisition charges |
|
2,555 |
|
|
|
— |
|
|
|
3,908 |
|
|
|
— |
|
Total expenses: |
|
6,300 |
|
|
|
6,039 |
|
|
|
20,592 |
|
|
|
20,510 |
|
|
|
|
|
|
|
|
|
Other income (loss): |
|
|
|
|
|
|
|
Change in fair value of Front Yard common stock |
|
— |
|
|
|
12,118 |
|
|
|
146 |
|
|
|
6,270 |
|
Dividend income on Front Yard common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
244 |
|
Dividend income |
|
— |
|
|
|
— |
|
|
|
3,061 |
|
|
|
— |
|
Gain on sale of equity securities |
|
— |
|
|
|
— |
|
|
|
8,347 |
|
|
|
— |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
(60 |
) |
|
|
— |
|
Other income (expense) |
|
7 |
|
|
|
16 |
|
|
|
154 |
|
|
|
45 |
|
Total other income: |
|
7 |
|
|
|
12,134 |
|
|
|
11,648 |
|
|
|
6,559 |
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations before income
taxes |
|
(6,293 |
) |
|
|
6,095 |
|
|
|
(8,944 |
) |
|
|
(13,951 |
) |
Income tax expense |
|
2,098 |
|
|
|
1,860 |
|
|
|
3,273 |
|
|
|
769 |
|
Net income (loss) from continuing operations |
|
(8,391 |
) |
|
|
4,235 |
|
|
|
(12,217 |
) |
|
|
(14,720 |
) |
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
Income from operations related to Front Yard, net of tax |
|
— |
|
|
|
35,526 |
|
|
|
— |
|
|
|
54,643 |
|
Gain on disposal of operation related to Front Yard |
|
— |
|
|
|
(102 |
) |
|
|
7,485 |
|
|
|
(102 |
) |
Income tax expense related to disposal |
|
— |
|
|
|
— |
|
|
|
1,272 |
|
|
|
— |
|
Net gain on discontinued operations |
|
— |
|
|
|
35,424 |
|
|
|
6,213 |
|
|
|
54,541 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(8,391 |
) |
|
|
39,659 |
|
|
|
(6,004 |
) |
|
|
39,821 |
|
Amortization of preferred stock issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42 |
) |
Net income (loss) attributable to common stockholders |
|
(8,391 |
) |
|
|
39,659 |
|
|
|
(6,004 |
) |
|
|
39,779 |
|
|
|
|
|
|
|
|
|
Continuing operations earnings per share |
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
$ |
(8,391 |
) |
|
|
4,235 |
|
|
|
(12,217 |
) |
|
|
(14,720 |
) |
Reverse amortization of preferred stock issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42 |
|
Gain (loss) on preferred stock transaction |
|
(23 |
) |
|
|
— |
|
|
|
87,961 |
|
|
|
— |
|
Numerator for earnings per share from continuing operations |
$ |
(8,414 |
) |
|
$ |
4,235 |
|
|
$ |
75,744 |
|
|
$ |
(14,678 |
) |
|
|
|
|
|
|
|
|
Discontinued operations earnings per share |
|
|
|
|
|
|
|
Net income from discontinued operations |
$ |
— |
|
|
$ |
35,424 |
|
|
$ |
6,213 |
|
|
$ |
54,541 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share of common stock –
basic: |
|
|
|
|
|
|
|
Continuing operations – basic |
$ |
(4.09 |
) |
|
$ |
2.57 |
|
|
$ |
37.83 |
|
|
$ |
(9.05 |
) |
Discontinued operations – basic |
|
— |
|
|
|
21.49 |
|
|
|
3.11 |
|
|
|
33.43 |
|
Earnings (loss) per basic common share |
$ |
(4.09 |
) |
|
$ |
24.06 |
|
|
$ |
40.94 |
|
|
$ |
24.38 |
|
Weighted average common stock outstanding – basic |
|
2,055,561 |
|
|
|
1,648,000 |
|
|
|
2,002,111 |
|
|
|
1,631,326 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share of common stock –
diluted: |
|
|
|
|
|
|
|
Continuing operations – diluted |
$ |
(4.09 |
) |
|
$ |
2.17 |
|
|
$ |
35.03 |
|
|
$ |
(9.05 |
) |
Discontinued operations – diluted |
|
— |
|
|
|
18.18 |
|
|
|
2.87 |
|
|
|
33.43 |
|
Earnings (loss) per diluted common share |
$ |
(4.09 |
) |
|
$ |
20.35 |
|
|
$ |
37.90 |
|
|
$ |
24.38 |
|
Weighted average common stock outstanding – diluted |
|
2,055,561 |
|
|
|
1,948,704 |
|
|
|
2,162,378 |
|
|
|
1,631,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Altisource Asset Management
Corporation Condensed Consolidated Balance
Sheets (In thousands, except share and per share
amounts)
|
December 31, 2021 |
|
December 31, 2020 |
|
(unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
78,349 |
|
|
$ |
41,623 |
|
Front Yard common stock, at fair value |
|
— |
|
|
|
47,355 |
|
Receivable from Front Yard |
|
— |
|
|
|
3,414 |
|
Prepaid expenses and other assets |
|
1,837 |
|
|
|
3,328 |
|
Current assets held for sale |
|
— |
|
|
|
894 |
|
Total current assets |
|
80,186 |
|
|
|
96,614 |
|
|
|
|
|
Non-current assets: |
|
|
|
Right-of-use lease assets |
|
825 |
|
|
|
656 |
|
Other non-current assets |
|
465 |
|
|
|
503 |
|
Non-current assets held for sale |
|
— |
|
|
|
1,979 |
|
Total non-current assets |
|
1,290 |
|
|
|
3,138 |
|
Total assets |
|
81,476 |
|
|
|
99,752 |
|
|
|
|
|
Current liabilities: |
|
|
|
Accrued salaries and employee benefits |
$ |
983 |
|
|
$ |
2,539 |
|
Accounts payable and accrued liabilities |
|
3,465 |
|
|
|
9,152 |
|
Short-term lease liabilities |
|
139 |
|
|
|
75 |
|
Current liabilities held for sale |
|
— |
|
|
|
1,338 |
|
Total current liabilities |
|
4,587 |
|
|
|
13,104 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Long-term lease liabilities |
|
720 |
|
|
|
600 |
|
Other non-current liabilities |
|
2,697 |
|
|
|
1,027 |
|
Non-current liabilities held for sale |
|
— |
|
|
|
1,599 |
|
Total non-current liabilities |
|
3,417 |
|
|
|
3,226 |
|
Total liabilities |
|
8,004 |
|
|
|
16,330 |
|
|
|
|
|
Commitments and contingencies: |
|
— |
|
|
|
— |
|
|
|
|
|
Redeemable preferred stock: |
|
|
|
Preferred stock, $0.01 par value, 250,000 shares issued and
outstanding as of December 31, 2021 and 2020. 150,000 shares
outstanding and $150,000 redemption value as of December 31, 2021
and 250,000 shares outstanding and $250,000 redemption value as of
December 31, 2020 |
|
150,000 |
|
|
|
250,000 |
|
|
|
|
|
Stockholders' deficit: |
|
|
|
Common stock, $.01 par value, 5,000,000 authorized shares;
3,416,541 and 2,055,561 shares issued and outstanding,
respectively, as of December 31, 2021 and 2,966,207 and 1,650,212
shares issued and outstanding, respectively, as of December 31,
2020 |
|
34 |
|
|
|
30 |
|
Additional paid-in capital |
|
143,523 |
|
|
|
46,574 |
|
Retained earnings |
|
57,450 |
|
|
|
63,426 |
|
Accumulated other comprehensive income (loss) |
|
54 |
|
|
|
(65 |
) |
Treasury stock, at cost, 1,360,980 shares as of December 31, 2021
and 1,315,995 shares as of December 31, 2020. |
|
(277,589 |
) |
|
|
(276,543 |
) |
Total stockholders' deficit |
|
(76,528 |
) |
|
|
(166,578 |
) |
Total liabilities and equity |
$ |
81,476 |
|
|
$ |
99,752 |
|
|
|
|
|
FOR FURTHER INFORMATION CONTACT:Investor
RelationsT: +1-704-275-9113E: IR@AltisourceAMC.com
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