BETHESDA, Md., Jan. 12, 2011 /PRNewswire/ -- American Capital
Agency Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced
preliminary estimates of select financial data for the fourth
quarter 2010 and as of December 31,
2010.
The Company estimates that, when finally determined, earnings
per share for the quarter ended December 31,
2010, will exceed $2.25.
Earnings per share for the quarter ended December 31, 2010, were favorably impacted by
non-recurring net realized and unrealized gains on its derivative
instruments, such as to-be-announced (TBA) mortgage short positions
and payer swaptions, which the Company uses primarily to hedge
increases in interest rates, and by net realized gains on
available-for-sale securities. Net of these items, the
Company expects earnings per share for the quarter ended
December 31, 2010, will exceed
$1.20, including an anticipated
benefit from slower projected prepayment speeds.
The Company expects that taxable net income for the quarter will
be lower than GAAP net income, due partly to the deferred
recognition of certain unrealized gains/losses for tax purposes and
other timing related differences. AGNC expects that its
undistributed taxable income as of December
31, 2010, will exceed $40
million and that the Company will incur a federal excise tax
of less than $1.0 million as a result
of its decision to defer a portion of its 2010 taxable income.
The Company expects that when finally determined, book value per
share as of December 31, 2010, will
exceed $24.00. The Company
estimates that as of December 31,
2010, the fair value of its investment portfolio was
approximately $13.5 billion and its
leverage ratio, including unsettled trades, was approximately
7.8x.
ABOUT AGNC
AGNC is a REIT that invests in agency pass-through securities
and collateralized mortgage obligations for which the principal and
interest payments are guaranteed by a U.S. Government agency or a
U.S. Government-sponsored entity. The Company is externally managed
and advised by American Capital Agency Management, LLC, an
affiliate of American Capital, Ltd. ("American Capital").
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. American Capital, both directly and through
its asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate and structured products. Founded in 1986,
American Capital has $18 billion in
capital resources under management and eight offices in the U.S.,
Europe and Asia. American Capital and its
affiliates will consider investment opportunities from $5 million to $100 million.
FORWARD-LOOKING STATEMENTS
The press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve risks and
uncertainties in predicting future results and conditions.
You should not place undue reliance on these estimates
because they may prove to be materially inaccurate. The
foregoing information and estimates have not been compiled or
examined by the Company's independent auditors and they are subject
to revision as the Company prepares its financial statements as of
and for the year ended December 31,
2010, including all disclosures required by accounting
principles generally accepted in the
United States, or GAAP, and as the Company's auditors
conduct their audit of these financial statements. While the
Company believes that such information and estimates are based on
reasonable assumptions, actual results may vary, and such
variations may be material. Factors that could cause the
preliminary information and estimates to differ include, but are
not limited to: (i) additional adjustments in the calculation of,
or application of accounting principles for, the financial results
for the year ended December 31, 2010,
(ii) discovery of new information that impacts valuation
methodologies underlying these results, (iii) errors in the
assessment of portfolio value, and (iv) accounting changes required
by GAAP. Furthermore, taxable net income often differs from
GAAP net income, in part, as it does not include unrealized gains
or losses on derivative instruments until realization and premium
amortization does not incorporate revisions to prepayment
projections.
CONTACT:
Investors – (301) 968-9300
SOURCE American Capital Agency Corp.