Exhibit 99.4
Contact: Brian Beades
212-754-5596
ahr-info@blackrock.com
Anthracite Capital Updates First Quarter Earnings
New York - May 7, 2004 - Anthracite Capital, Inc. (NYSE: AHR) (the "Company"
or "Anthracite") today revised its previously announced earnings for the
three-month period ended March 31, 2004, as a result of an error made by the
Company's transfer agent. Although there is an impact to net income available
(loss) to common stockholders as a result of the transfer agent's error, the
Company's Operating Earnings of $0.28 per share were not affected.
Subsequent to the earnings release, the Company received notification from the
transfer agent that they had incorrectly converted 111,000 shares of the
Company's Series B Preferred Stock into 162,388 shares of Anthracite common
stock instead of redeeming such shares as intended by the holder. Adjusting for
the redemption, the amount of the one-time charge for the Company's Series B
Preferred Stock redemption increased by $663,000 to $10,508,000 or $0.21 per
share from $9,845,000 or $0.20 per share. As a result, the Company's net loss
to common stockholders for the three months ended March 31, 2004 was $0.01 per
share as compared to $0.00 as previously reported. All adjustments made to the
previously released Consolidated Statements of Financial Condition and
Consolidated Statements of Operations subsequent to the Company's earnings
release are reflected in the statements attached hereto.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act with respect to future
financial or business performance, strategies or expectations. Forward-looking
statements are typically identified by words or phrases such as "trend,"
"opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate,"
"current," "intention," "estimate," "position," "assume," "potential,"
"outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and
similar expressions, or future or conditional verbs such as "will," "would,"
"should," "could," "may" or similar expressions. Anthracite cautions that
forward-looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements speak only
as of the date they are made, and Anthracite assumes no duty to and does not
undertake to update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and future
results could differ materially from historical performance.
In addition to factors previously disclosed in Anthracite's Securities and
Exchange Commission (the "SEC") reports and those identified elsewhere in this
press release, the following factors, among others, could cause actual results
to differ materially from forward-looking statements or historical
performance: (1) the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes in political, economic or industry
conditions, the interest rate environment or financial and capital markets,
which could result in changes in the value of Anthracite's assets; (3) the
relative and absolute investment performance and operations of Anthracite's
manager; (4) the impact of increased competition; (5) the impact of capital
improvement projects; (6) the impact of future acquisitions or divestitures;
(7) the unfavorable resolution of legal proceedings; (8) the extent and timing
of any share repurchases; (9) the impact, extent and timing of technological
changes and the adequacy of intellectual property protection; (10) the impact
of legislative and regulatory actions and reforms and regulatory, supervisory
or enforcement actions of government agencies relating to Anthracite,
BlackRock or PNC; (11) terrorist activities and international hostilities,
which may adversely affect the general economy, real estate, financial and
capital markets, specific industries, and Anthracite and BlackRock; (12) the
ability of Anthracite's manager to attract and retain highly talented
professionals; (13) fluctuations in foreign currency exchange rates; and (14)
the impact of changes to tax legislation and, generally, the tax position of
the company.
Anthracite's Annual Report on Form 10-K for the year ended December 31, 2003
and Anthracite's subsequent reports filed with the SEC, accessible on the
SEC's website at www.sec.gov, identify additional factors that can affect
forward-looking statements.
To learn more about Anthracite, visit our website at www.anthracitecapital.com.
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except per share data)
- ------------------------------------------------------------------------------------------------------------------------
March 31, 2004 December 31, 2003
ASSETS
Cash and cash equivalents $ 17,264 $ 20,805
Restricted cash equivalents 15,389 12,845
Residential mortgage backed securities 708,105 753,219
------------- ---------------
Cash and RMBS 740,758 786,869
Commercial real estate securities 1,472,636 1,366,508
Commercial mortgage loan pools 1,222,103 -
Commercial real estate loans 122,263 97,984
------------- ---------------
Total Commercial real estate 2,817,002 1,464,492
Receivable for investments sold 100,662 99,056
Other assets 48,666 48,429
------------- ---------------
Total Assets $3,707,088 $2,398,846
============= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Borrowings:
Secured by pledge of residential mortgage backed securities $ 648,525 $ 670,874
Secured by pledge of commercial real estate securities 134,467 444,987
Secured by pledge of commercial real estate loans 7,430 22,710
------------- ---------------
Total short term borrowings 790,422 1,138,571
Long term Borrowings: Collateralized debt obligations 1,057,522 684,970
------------- ---------------
Total borrowings $1,847,944 $1,823,541
Due to REMIC Trust 1,199,034 -
10% Series B Preferred Stock - called for redemption 43,930 -
Securities sold, not yet settled 101,234 99,551
Payable for investments purchased 49,301 -
Distributions payable 15,059 14,749
Other liabilities 48,451 43,575
------------- ---------------
Total Liabilities $3,304,953 $1,981,416
------------- ---------------
Stockholders' Equity:
Common Stock, par value $0.001 per share; 400,000 shares authorized; 50,572
shares issued and outstanding in 2004; and
49,464 shares issued and outstanding in 2003 $ 51 $ 49
10% Series B Preferred Stock, liquidation preference $43,942 in 2003 - 33,431
9.375% Series C Preferred Stock, liquidation preference
$57,500 in 2004 and 2003 55,435 55,435
Additional paid-in capital 549,199 536,333
Distributions in excess of earnings (116,460) (101,635)
Accumulated other comprehensive loss (86,090) (106,183)
------------- ---------------
Total Stockholders' Equity 402,135 417,430
------------- ---------------
Total Liabilities and Stockholders' Equity $3,707,088 $2,398,846
============= ===============
Anthracite Capital, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
- ------------------------------------------------------------------------------------------------------------------
For the Three Months Ended
March 31,
----------------------------------
2004 2003
----------------------------------
Operating Portfolio
Interest Income:
Commercial real estate securities $ 29,185 $ 19,953
Commercial real estate loans 3,074 2,409
Residential mortgage backed securities 6,717 20,285
Cash and cash equivalents 88 176
-------- --------
Total interest income $ 39,064 $ 42,823
-------- --------
Expenses:
Interest expense:
Collateralized debt obligations 11,167 10,913
Commercial real estate securities 2,027 478
Commercial real estate loans 148 112
Residential mortgage backed securities 1,927 4,949
Hedging Expense 4,631 2,991
General and administrative 602 582
Incentive fee - -
Management fee 2,130 2,577
-------- --------
Total expenses $ 22,632 $ 22,602
-------- --------
Income from the Operating Portfolio $ 16,432 $ 20,221
-------- --------
Other loss:
Realized loss (4,723) (8,531)
Unrealized gain (loss) 1,553 (1,731)
Hedge ineffectiveness (973) (262)
-------- --------
Total other loss $ (4,143) $(10,524)
-------- --------
Net Income 12,289 9,697
-------- --------
Dividends on preferred stock 2,446 1,195
Cost to retire preferred stock in excess of carrying value 10,508 -
-------- --------
Net Income available (Loss) to Common Stockholders $ (665) $ 8,502
-------- --------
Operating Earnings available to Common Stockholders per share:
Basic $ 0.28 $ 0.40
Diluted $ 0.28 $ 0.40
Net Income (Loss) available to Common Stockholders per share, basic $ (0.01) $ 0.18
Net Income (Loss) available to Common Stockholders per share, diluted $ (0.01) $ 0.18
Weighted average number of shares outstanding:
Basic 49,837 47,592
Diluted 49,846 47,622
Operating Earnings:
Income from the operating portfolio $ 16,432 $ 20,221
Dividends on preferred (2,446) (1,195)
-------- --------
Net operating earnings $ 13,986 $ 19,026
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