AAMC Altisource Asset Management Corporation

Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE American: AAMC) today announced financial and operating results for the first quarter of 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230515005457/en/

First Quarter 2023 Results and Recent Developments (Graphic: Business Wire)

First Quarter 2023 Results and Recent Developments

• Through May 12, 2023, the Company has received total net loan submissions of $107 million from both its direct to borrower and wholesale channels.

• The Company entered into forward contracts to sell alternative credit products to three additional institutional counterparties, bringing our total to five, that manage insurance and credit investments. One of the new institutions has over $500 billion in assets under management.

• AAMC repurchased 27,441 shares of its common stock for a total of $1.5 million during the first quarter of 2023.

• First quarter earnings improved by $1.1 million, reducing the first quarter loss to $3.0 million on revenue of $2.1 million from the fourth quarter 2022.

About AAMC

AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. 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 March 31,

 

 

2023

 

 

 

2022

 

Revenues:

 

 

 

Loan interest income

$

2,036

 

 

$

—

 

Loan fee income

 

85

 

 

 

—

 

Realized gains on loans held for sale, net

 

10

 

 

 

—

 

Total revenues

 

2,131

 

 

 

—

 

 

 

 

 

Expenses:

 

 

 

Salaries and employee benefits

 

1,864

 

 

 

924

 

Legal fees

 

441

 

 

 

1,357

 

Professional fees

 

480

 

 

 

266

 

General and administrative

 

934

 

 

 

729

 

Servicing and asset management expense

 

183

 

 

 

—

 

Acquisition charges

 

—

 

 

 

424

 

Interest expense

 

1,082

 

 

 

—

 

Direct loan expense

 

263

 

 

 

—

 

Loan sales and marketing expense

 

409

 

 

 

—

 

Total expenses

 

5,656

 

 

 

3,700

 

 

 

 

 

Other income (expense):

 

 

 

Change in fair value of loans

 

849

 

 

 

—

 

Realized losses on sale of held for investment loans, net

 

(275

)

 

 

—

 

Other

 

(2

)

 

 

8

 

Total other income

 

572

 

 

 

8

 

 

 

 

 

Net loss before income taxes

 

(2,953

)

 

 

(3,692

)

Income tax expense (benefit)

 

35

 

 

 

5

 

Net loss attributable to common stockholders

$

(2,988

)

 

 

(3,697

)

Gain on preferred stock transaction

 

—

 

 

 

5,122

 

Numerator for earnings per share

$

(2,988

)

 

$

1,425

 

 

 

 

 

(Loss) income per share of common stock – Basic:

 

 

 

(Loss) income per basic common share

$

(1.68

)

 

$

0.69

 

Weighted average common stock outstanding

 

1,777,135

 

 

 

2,056,666

 

 

 

 

 

(Loss) income per share of common stock – Diluted:

 

 

 

(Loss) income per diluted common share

$

(1.68

)

 

$

0.66

 

Weighted average common stock outstanding

 

1,777,135

 

 

 

2,174,002

 

 

Altisource Asset Management Corporation

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

 

 

March 31, 2023

 

December 31, 2022

 

(unaudited)

 

 

ASSETS

 

 

 

Loans held for sale, at fair value

$

13,475

 

 

$

11,593

 

Loans held for investment, at fair value

 

65,316

 

 

 

83,143

 

Cash and cash equivalents

 

11,836

 

 

 

10,727

 

Restricted cash

 

2,049

 

 

 

2,047

 

Other assets

 

10,642

 

 

 

10,137

 

Total assets

$

103,318

 

 

$

117,647

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Liabilities

 

 

 

Accrued expenses and other liabilities

$

8,862

 

 

$

10,349

 

Lease liabilities

 

1,232

 

 

 

1,323

 

Credit facilities

 

43,234

 

 

 

51,653

 

Total liabilities

 

53,328

 

 

 

63,325

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable preferred stock:

 

 

 

Preferred stock, $0.01 par value, 250,000 shares authorized as of March 31, 2023 and December 31, 2022. 144,212 shares issued and outstanding and $144,212 redemption value as of March 31, 2023 and December 31, 2022, respectively.

 

144,212

 

 

 

144,212

 

 

 

 

 

Stockholders' deficit:

 

 

 

Common stock, $0.01 par value, 5,000,000 authorized shares; 3,434,294 and 1,758,421 shares issued and outstanding, respectively, as of March 31, 2023 and 3,432,294 and 1,783,862 shares issued and outstanding, respectively, as of December 31, 2022.

 

34

 

 

 

34

 

Additional paid-in capital

 

149,170

 

 

 

149,010

 

Retained earnings

 

38,528

 

 

 

41,516

 

Accumulated other comprehensive income

 

20

 

 

 

20

 

Treasury stock, at cost, 1,675,873 shares as of March 31, 2023 and 1,648,432 shares as of December 31, 2022.

 

(281,974

)

 

 

(280,470

)

Total stockholders' deficit

 

(94,222

)

 

 

(89,890

)

Total Liabilities and Equity

$

103,318

 

 

$

117,647

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005457/en/

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