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EXHIBIT 99.2
FOR IMMEDIATE PRESS RELEASE
FOR: PMC Commercial Trust CONTACT:Investor Relations
18111 Preston Road, Suite 600 972-349-3256
Dallas, TX 75252
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PMC COMMERCIAL TRUST ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS
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PMC COMMERCIAL TRUST
AMEX (SYMBOL PCC)
Dallas, TX March 8, 2001
PMC Commercial Trust (AMEX: PCC) announced fourth quarter and year end results
today. For the three months ended December 31, 2000, net income increased by 24%
to $3,218,000 from $2,590,000 for the three months ended December 31, 1999. For
the three months ended December 31, 2000, earnings per share increased by 25% to
$0.50 per share from $0.40 per share for the three months ended December 31,
1999. For the year ended December 31, 2000, net income decreased by 9% to
$9,365,000, or $1.44 per share, from $10,264,000, or $1.57 per share for the
year ended December 31, 1999.
Revenues for the year ended December 31, 2000 include a $304,000 gain on the
sale of a hotel property during June 2000 and a realized gain of $1,117,000 from
the securitization and sale of a portion of our loan portfolio during December
2000. Our expenses include an increase of $600,000 in the provision for loan
losses and loans written-off associated with a loan which was foreclosed upon in
August, 2000.
Andrew S. Rosemore, Chairman of PMC Commercial Trust stated, "We are pleased
with the level of fourth quarter loans funded of $10.9 million, our highest
quarterly level since June 1998. Proceeds from our recent securitization were
used to pay down revolving debt thereby increasing our availability of capital
by $45 million. We recently sold some of our hotel properties at significant
gains over book value also increasing our funds available for lending. Since we
have this considerable capital available and we have long-term favorable
experience in our market sectors, we expect originations to increase during
2001. We presently have extended commitments to fund over $35 million in loans."
Our funds from operations ("FFO") is determined by adjusting our net income to
add back depreciation expense and eliminate the gains from asset sales.
Accordingly, our FFO was $2,652,000 during the three months ended December 31,
2000 compared to $3,169,000 during the three months ended December 31, 1999. For
the year ended December 31, 2000, FFO was $10,194,000 compared to $12,477,000
during the year ended December 31, 1999, a decrease of $2,283,000 (18%) over the
year ended December 31, 1999.
We previously announced a new dividend policy which went into effect for the
fourth quarter of 2000. While the Board of Trust Managers (the "Board") has
historically paid dividends based primarily on the expectation of available FFO,
the Board commenced a quarterly dividend policy considering both the expectation
of earnings per share and FFO. Dividends declared for the three months ended
December 31, 2000 were $2,349,000 which was 89% of our fourth quarter FFO.
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PMC COMMERCIAL TRUST - PAGE 2 EARNINGS PRESS RELEASE MARCH 8, 2001
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AMENDED LEASE AGREEMENT AND PROPERTY SALES
Subsequent to year end, we entered into an agreement amending our existing lease
arrangement with Amerihost Properties, Inc. (NASDAQ: HOST). This amendment to
the lease arrangement provides for the sale of at least eight properties prior
to June 30, 2004 under certain conditions. Amerihost has the option to either
purchase or facilitate the purchase of four groups of two properties. The
stipulated price for each property exceeds PMC Commercial Trust's cost. To the
extent that a group of properties are not purchased annually, the amendment
provides for lease rate increases commencing on June 30, 2001. During the first
quarter of 2001, we sold two of these properties. It is anticipated that these
sales we will provide a book gain of approximately $500,000 during the first
quarter of 2001. In addition, another sale is expected to close by the end of
the second quarter of 2001. PMC Commercial Trust currently owns 27 limited
service hospitality properties, all of which are leased to Amerihost.
RESULTS OF OPERATIONS
Our portfolio including the securitized loans increased by 5% to $121.1 million
at December 31, 2000 from $115.3 million at December 31, 1999. However, since
the securitized loans are recorded as sold for financial statement presentation,
loans receivable at December 31, 2000 are less than at December 31, 1999.
The following tables contain comparative selected financial data as of December
31, 2000 and 1999 and for the three-month periods and years ended December 31,
2000 and 1999:
FINANCIAL POSITION INFORMATION
(IN THOUSANDS)
DECEMBER 31,
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2000(1) 1999 DECREASE %
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Loans receivable, net $ 65,645 $ 115,265 (43)%
Real property investments $ 65,674 $ 70,683 (7)%
Total investments $ 150,105 $ 195,636 (23)%
Total assets $ 151,399 $ 197,237 (23)%
Notes payable $ 53,235 $ 97,757 (46)%
Total beneficiaries' equity $ 89,785 $ 91,932 (2)%
Shares outstanding 6,432 6,537 (2)%
(1) Does not include the loans securitized in December 2000. See discussion
above.
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PMC COMMERCIAL TRUST - PAGE 3 EARNINGS PRESS RELEASE MARCH 8, 2001
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OPERATING INFORMATION
(IN THOUSANDS, EXCEPT PER SHARE DATA)
YEAR ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31,
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2000 1999 INC/(DEC) % 2000 1999 INC/(DEC) %
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Revenues:
Interest income-loans $ 11,301 $ 13,269 (15)% $ 2,759 $ 3,303 (16)%
Lease income 7,581 7,531 1% 1,848 1,942 (5)%
Interest and dividends -
other investments 243 281 (14)% 57 73 (22)%
Gain on sale of assets 1,421 -- > 100 1,117 -- > 100
Other income 650 919 (29)% 162 232 (30)%
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Total revenues 21,196 22,000 (4)% 5,943 5,550 7%
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EXPENSES:
Interest expense 6,782 7,023 (3)% 1,680 1,780 (6)%
Depreciation 2,250 2,213 2% 551 579 (5)%
Advisory and servicing
fees, net 1,954 2,173 (10)% 444 545 (19)%
General and administrative
expenses 146 185 (21)% 20 28 (29)%
Legal and accounting fees 99 142 (30)% 30 28 7%
Provision for loan losses 600 -- > 100 -- -- > 100
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Total expenses 11,831 11,736 1% 2,725 2,960 (8)%
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NET INCOME $ 9,365 $ 10,264 (9)% $ 3,218 $ 2,590 24%
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WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 6,520 6,530 -% 6,472 6,536 (1)%
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BASIC AND DILUTED EARNINGS
PER COMMON SHARE $ 1.44 $ 1.57 (9)% $ 0.50 $ 0.40 25%
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FUNDS FROM OPERATIONS (FFO) $ 10,194 $ 12,477 (18)% $ 2,652 $ 3,169 (16)%
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Certain matters discussed in this press release are "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because the context of the
statement will include words such as the Company "expects," "anticipates,"
"should" or words of similar import. Similarly, statements that describe the
Company's future plans, objectives or goals are also forward-looking statements.
Such forward-looking statements are subject to certain risks and uncertainties,
including the financial performance of the Company, real estate conditions and
market valuations of its stock, which could cause actual results to differ
materially from those currently anticipated. Although the Company believes the
expectations reflected in any forward-looking statements are based on reasonable
assumptions, the Company can give no assurance that its expectations will be
attained. Shareholders, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking statements.
The forward-looking statements made herein are only made as of the date of this
press release and the Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.