Exhibit 99.1
PRESS RELEASE
FROM:
NYSE: NLY
ANNALY MORTGAGE MANAGEMENT, INC.
12 EAST 41ST STREET SUITE 700
NEW YORK, NY 10017
FOR FURTHER INFORMATION
Timothy J. Guba, President & COO
Kathryn F. Fagan, Treasurer & CFO
(212) 696-0100 (888) 8Annaly
www.annaly.com
FOR IMMEDIATE RELEASE
April 16, 2001
ANNALY INCREASES EARNINGS AND BOOK VALUE DURING THE QUARTER
New York, New York - April 16, 2001 - Annaly Mortgage Management, Inc. (NYSE:
NLY) (the "Company") today reported earnings for the quarter ended March 31,
2001 of $8,330,273 or $0.38 per average share outstanding, as compared to
$4,848,362, or $0.35 per average share outstanding for the quarter ended March
31, 2000. Weighted average shares outstanding were 21,851,481 and 13,660,539 for
the quarters ended March 31, 2001 and 2000, respectively. As previously
reported, the Company completed offerings of common stock during the quarter
issuing an aggregate of 11,150,000 shares, with aggregate net proceeds of
approximately $99.3 million.
For the quarter ended March 31, 2001, the yield on average earnings assets was
6.78% and the cost of funds on the average repurchase balance was 5.68%. For the
quarter ended March 31, 2000, the yield on average assets was 6.80% and the cost
of funds on the average repurchase balance was 5.80%. The interest rate spread
increased to 1.10% in the quarter ended March 31, 2001 from 1.00% for the
quarter ended March 31, 2000. The interest spread this quarter increased by
0.65% over the fourth quarter of 2000. For the quarter ended March 31, 2001, the
Company's gain on sale of assets was $269,478, as compared to the prior year of
$106,853. General and administrative expenses, as a percent of average assets
was 0.13% and 0.16% for the quarters ended March 31, 2001 and 2000,
respectively. The Company was able to provide a return on average equity of
17.20% for the quarter ended March 31, 2001. Dividends declared for the quarter
were $0.30 per share. The dividend yield for the quarter, based on the March 30,
2001 closing price of $11.26, was 10.66%.
At March 31, 2001, the Company had a book value of $9.80, which was a 25%
increase from the March 31, 2000 book value of $7.84. The book value increased
by approximately 5% from the December 31, 2000 book value of $9.34. The Company
classifies all investment securities as "available for sale." Consequently, the
entire portfolio is recorded at market value. Fixed rate mortgage-backed
securities comprised approximately 28% of the Company's portfolio at March 31,
2001. The balance of the portfolio was comprised of 55% adjustable rate
mortgages and 17% LIBOR floating rate collateralized mortgage obligations. The
Company has continued to avoid the introduction of credit risk in its portfolio.
As of March 31, 2001, all of the assets in the Company's portfolio were FNMA,
GNMA or FHLMC securities, which carry an implied "AAA" rating. No derivatives,
interest rate swaps, swaptions, options, currency swaps, total rate of return
swaps were acquired. As of March 31, 2001, all assets in the portfolio were REIT
eligible assets.
We increased our earnings per share by 36% from the fourth quarter of 2000,
while increasing book value per share by 5%. We were able to use the inflow of
equity to effectively grow the balance sheet of the Company and ultimately
increase distributions to stockholders. In addition to the inflow of capital,
favorable interest spreads allowed us to increase net interest income. General
and administrative expenses also declined as a percentage of average assets. Due
to the larger asset base, we were able to take advantage of economies of scale.
The Company is a Maryland corporation which owns and manages a portfolio of
mortgage-backed securities. The Company's principal business objective is to
generate net income for distribution to stockholders from the spread between the
interest income on its mortgage-backed securities and the costs of borrowing to
finance its acquisition of mortgage-backed securities. The Company has elected
to be taxed as a real estate investment trust ("REIT") and currently has
25,701,458 shares of common stock outstanding.
The Company will hold the quarterly earnings conference call Monday April 16,
2001 at 11:30 a.m. EST. The number to call is 1-800-388-8975. If you would like
to be added to the e-mail distribution list, please email rmiller@annaly.com.
This news release and our public documents to which we refer contain or
incorporate by reference certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements which are based on various
assumptions (some of which are beyond our control) may be identified by
reference to a future period or periods or by the use of forward-looking
terminology, such as "may," "will," "believe," "expect," " anticipate,"
"continue," or similar terms or variations on those terms or the negative of
those terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but not
limited to, changes in interest rates, changes in yield curve, changes in
prepayment rates, the availability of mortgage-backed securities for purchase,
the availability of financing and, if available, the terms of any financing. For
a discussion of the risks and uncertainties which could cause actual results to
differ from those contained in the forward-looking statements, see "Risk
factors" in our Annual Report on Form 10-K for the fiscal year ended December
31, 2000. We do not undertake, and specifically disclaim any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
ANNALY MORTGAGE MANAGEMENT, INC
BALANCE SHEETS
MARCH 31,
2001 DECEMBER 31,
(UNAUDITED) 2000
---------------- ----------------
ASSETS
Cash and cash equivalents $ 43,183 $113,061
Mortgage-Backed Securities, at fair value 3,500,609,873 1,978,219,376
Receivable for Mortgage-Backed Securities sold - 44,933,631
Accrued interest receivable 22,104,991 11,502,482
Other assets 323,179 260,238
---------------- ----------------
Total assets $3,523,081,226 $2,035,028,788
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Repurchase agreements $3,118,300,000 $1,628,359,000
Payable for Mortgage-Backed Securities purchased 129,913,257 258,798,138
Accrued interest payable 14,694,685 8,314,414
Dividends payable 7,710,437 3,630,745
Accounts payable 579,765 284,105
---------------- ----------------
Total liabilities 3,271,198,144 1,899,386,402
---------------- ----------------
Stockholders' Equity:
Common stock: par value $.01 per share; 100,000,000
authorized, 25,701,458 and 14,522,978 shares issued
and outstanding, respectively 257,015 145,230
Additional paid-in capital 247,158,796 147,844,861
Accumulated other comprehensive loss 3,150,882 (13,044,259)
Retained earnings 1,316,389 696,554
---------------- ----------------
Total stockholders' equity 251,883,082 135,642,386
---------------- ----------------
Total liabilities and stockholders' equity $3,523,081,226 $2,035,028,788
================ ================
ANNALY MORTGAGE MANAGEMENT, INC
STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE QUARTER FOR THE QUARTER
ENDED MARCH 31, ENDED MARCH 31,
2001 2000
----------------- -----------------
INTEREST INCOME FROM MORTGAGE-BACKED
SECURITIES AND CASH $42,434,421 $24,616,782
INTEREST EXPENSE ON REPURCHASE AGREEMENTS 33,453,077 19,292,954
----------------- -----------------
NET INTEREST INCOME 8,981,344 5,323,828
GAIN ON SALE OF MORTGAGE-BACKED SECURITIES 269,478 106,853
GENERAL AND ADMINISTRATIVE EXPENSES 920,549 582,319
----------------- -----------------
NET INCOME $8,330,273 $4,848,362
----------------- -----------------
OTHER COMPREHENSIVE INCOME
Unrealized gain on available-for-sale securities 16,464,619 3,362,139
Less: reclassification adjustment for net gains included
in net income (269,478) (106,853)
----------------- -----------------
Other comprehensive gain $16,195,141 $3,255,286
----------------- -----------------
COMPREHENSIVE INCOME $24,525,414 $8,103,648
================= =================
NET INCOME PER SHARE:
Basic $0.38 $0.35
================= =================
Diluted $0.37 $0.35
================= =================
AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic 21,851,481 13,660,539
================= =================
Diluted 22,443,094 13,971,112
================= =================