NEW YORK, NY -- (Marketwired) -- 05/06/13 -- Apollo Residential Mortgage, Inc. (the "Company") (NYSE: AMTG) today reported financial results for the quarter ended March 31, 2013.
First Quarter Highlights:
•Reported Operating Earnings (a non-GAAP financial measure as defined below) of $19.1 million, or $0.74 per common share, for the quarter ended March 31, 2013; Reported net income allocable to common stockholders of $1.8 million, or $0.07 per common share, for the quarter ended March 31, 2013; •$4.9 billion residential mortgage-backed securities ("RMBS") portfolio at March 31, 2013 consisted of Agency RMBS with an estimated fair value of $4.3 billion and non-Agency RMBS with an estimated fair value of $595.8 million; •RMBS and securitized mortgage loan portfolio had a 2.8% blended net interest spread and an 17.8% levered asset yield(1) at March 31, 2013; •Completed the Company's first purchase and securitization of a residential whole loan pool; •Completed an underwritten public offering of 7,820,000 shares of common stock, including the exercise of the underwriter's option to purchase additional shares, at a price of $22.00 per share, raising net proceeds of $171.5 million; •Declared a $0.70 per common share quarterly dividend; •Realized net gains of $15.8 million, or $0.61 per common share, from the sale of $589.5 million of RMBS; and •Book value per common share at March 31, 2013 was $21.72.
(1) Levered asset yield is calculated as net interest spread multiplied by the leverage (debt/equity) multiple, plus the weighted average unlevered yield on the asset.
"AMTG had another solid quarter of financial and operating results, against a backdrop of volatility in the mortgage market," said Michael Commaroto, Chief Executive Officer of AMTG. "The Company's non-Agency RMBS portfolio continued to perform well, bolstered by the positive trends experienced in the housing market. As we optimized our portfolio throughout the quarter, we sold $589.5 million of Agency and non-Agency RMBS and generated net gains of $15.8 million, or $0.61 per common share. In addition, capitalizing on the Company's experience in the credit market, AMTG broadened its investment portfolio during the quarter through the completion of the Company's first purchase and securitization of a residential whole loan pool."
First Quarter 2013 Operating Results
The Company reported Operating Earnings of $19.1 million, or $0.74 per common share, for the three months ended March 31, 2013, as compared to Operating Earnings of $8.0 million, or $0.78 per common share, for the three months ended March 31, 2012. Net income allocable to common stockholders for the three months ended March 31, 2013 was $1.8 million or $0.07 per common share, as compared to net income allocable to common stockholders of $20.0 million or $1.95 per common share for the three months ended March 31, 2012.
The difference between Operating Earnings and net income allocable to common stockholders primarily reflects that Operating Earnings excludes the following: (i) net unrealized gains and losses on RMBS; (ii) net changes in the fair value of interest rate swaps ("Swaps") and interest rate swaptions ("Swaptions") and net realized losses on the termination of Swaps; and (iii) net realized gains from sales of RMBS. A reconciliation of Operating Earnings to net income allocable to common stockholders is set forth in Table 5 of this press release.
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