AT THE COMPANY
- --------------
Brenda Abuaf, Corporate Communications
(800) 831-4826
AMERICAN MORTGAGE ACCEPTANCE COMPANY
REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2007
NEW YORK, NY - NOVEMBER 7, 2007 - American Mortgage Acceptance Company ("AMAC"
or the "Company") (AMEX: AMC) today announced financial results for the third
quarter and nine months ended September 30, 2007.
FINANCIAL RESULTS
The table below summarizes AMAC's revenues, net (loss) income, FFO and adjusted
FFO for the three and nine months ended September 30, 2007 and 2006. FFO for the
three and nine months ended September 30, 2007 and 2006 were impacted by the
change in the fair value of derivative instruments, net of certain associated
costs. Therefore, the Company is reporting FFO both excluding ("Adjusted FFO")
and including these changes and costs. For comparative purposes, it is important
to note that AMAC recognized a significant gain in the third quarter of 2006
from the sale of our investment in ARCap. Therefore, the one-time gain is one of
the reasons for the significant decrease in net income, FFO and adjusted FFO for
the three and nine months ended September 30, 2007 as compared to 2006.
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------- --------------------------------------
(In thousands, except per share data) 2007 2006 % CHANGE 2007 2006 % CHANGE
---------- ---------- ---------- ---------- ---------- ----------
Revenues $ 16,948 $ 8,509 99.2% $ 44,761 $ 21,429 N/M
Net (Loss) Income $ (187) $ 1,234 N/M $ 8,454 $ 8,618 (1.9%)
FFO* $ (187) $ 1,767 N/M $ 5,179 $ 10,050 (48.5%)
Adjusted FFO* $ 490 $ 12,009 (95.9%) $ 5,218 $ 18,305 (71.5%)
Per Share Data (diluted):
Net (Loss) Income $ (0.05) $ 0.15 N/M $ 0.96 $ 1.04 (7.7%)
FFO* $ (0.02) $ 0.21 N/M $ 0.59 $ 1.21 (51.2%)
Adjusted FFO* $ 0.06 $ 1.44 (95.8%) $ 0.59 $ 2.20 (73.2%)
* See footnotes (1) and (3) to the Selected Financial Data for a discussion
of FFO and adjusted FFO and a reconciliation from GAAP net income.
"N/M" represents not meaningful as change is 100% or greater.
AMAC's net loss, FFO and adjusted FFO for the quarter ended September 30, 2007
reflect a $1.3 million impairment in connection with $182.2 million of first
mortgages and fixed rate bridge loans pledged as security on a repurchase
facility. AMAC initially planned to hold these investments until maturity and
has subsequently determined to sell these assets to a third party. Therefore,
the assets are now deemed "held for sale". Accordingly, the investments are
carried at the lower of cost or market and the impairment is based on estimated
market values as of September 30, 2007.
MANAGEMENT CONFERENCE CALL
Management will conduct a conference call today at 1:00 p.m. Eastern Time to
review the Company's third quarter financial results for the period ended
September 30, 2007. Investors, brokers, analysts, and shareholders wishing to
participate should call (877) 261-8990. A webcast of the presentation will be
available live and can be accessed through the Company's website,
www.americanmortgageco.com. To listen to the presentation via webcast, please go
to the website's "Investor Relations" section at least 15 minutes prior to the
start of the presentation. For interested individuals unable to join the
conference call, a replay of the call will be available through Sunday, November
11, 2007 at (888) 203-1112 (Passcode 4285839) or on our website,
www.americanmortgageco.com, through Thursday, February 7, 2008.
SUPPLEMENTAL FINANCIAL INFORMATION
For more detailed financial information, please access the Supplemental
Financial Package, which is available in the Investor Relations section of the
AMAC website at www.americanmortgageco.com.
ABOUT AMAC
AMAC is a real estate investment trust that specializes in originating and
acquiring mortgage loans and other debt instruments secured by multifamily and
commercial properties throughout the United States. AMAC invests in mezzanine,
construction and first mortgage loans, subordinated interests in first mortgage
loans, bridge loans, subordinate commercial mortgage backed securities, and
other real estate assets. For more information, please visit our website at
http://www.americanmortgageco.com or contact the Investor Relations Department
directly at (800) 831-4826.
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AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
============ ============
September 30, December 31,
2007 2006
------------ ------------
(Unaudited)
Balance Sheet Highlights
TOTAL ASSETS $ 937,070 $ 720,984
============ ============
CDO notes payable $ 362,000 $ 362,000
============ ============
Debt Facilities:
Repurchase facilities $ 399,780 $ 163,576
============ ============
Line of credit - related party $ 39,300 $ 15,000
============ ============
Mortgages payable on real estate owned -
discontinued operations $ - $ 39,944
============ ============
Preferred shares of subsidiary
(subject to mandatory repurchase) $ 25,000 $ 25,000
============ ============
TOTAL LIABILITIES $ 856,821 $ 635,976
============ ============
TOTAL SHAREHOLDERS' EQUITY $ 80,249 $ 85,008
============ ============
========================================================
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------------------------
2007 2006 2007 2006
--------------------------------------------------------
(Unaudited)
Income Statement Highlights
Total revenues $ 16,948 $ 8,509 $ 44,761 $ 21,429
========== ========== ========== ==========
(Loss) income from continuing
operations $ (187) $ 1,198 $ 4,923 $ 8,593
Income from discontinued
operations, including gain on sale - 36 3,531 25
---------- ---------- ---------- ----------
Net (loss) income $ (187) $ 1,234 $ 8,454 $ 8,618
========== ========== ========== ==========
Per share amounts:
Basic
-----
(Loss) income from continuing
operations $ (0.05) $ 0.14 $ 0.56 $ 1.03
Income from discontinued
operations - 0.01 0.42 0.01
---------- ---------- ---------- ----------
Net (loss) income $ (0.05) $ 0.15 $ 0.98 $ 1.04
========== ========== ========== ==========
Diluted
-------
(Loss) income from continuing
operations $ (0.05) $ 0.14 $ 0.56 $ 1.03
Income from discontinued
operations - 0.01 0.40 0.01
---------- ---------- ---------- ----------
Net (loss) income $ (0.05) $ 0.15 $ 0.96 $ 1.04
========== ========== ========== ==========
Weighted average shares outstanding
Basic 8,406 8,307 8,404 8,305
========== ========== ========== ==========
Diluted 8,406 8,315 8,794 8,308
========== ========== ========== ==========
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AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
Funds from Operations ("FFO")(1), as calculated in accordance with the National
Association of Real Estate Investment Trusts ("NAREIT") definition, for the
three and nine months ended September 30, 2007 and 2006, is summarized in the
following table:
=======================================================
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------------------
2007 2006 2007 2006
-------------------------------------------------------
Net (loss) income $ (187) $ 1,234 $ 8,454 $ 8,618
Depreciation of real property(2) - 435 336 1,334
Gain on sale of real property(2) - 98 (3,611) 98
---------- ---------- ---------- ----------
FFO $ (187) $ 1,767 $ 5,179 $ 10,050
========== ========== ========== ==========
Adjusted FFO(3) $ 490 $ 12,009 $ 5,218 $ 18,305
========== ========== ========== ==========
Cash flows from operating activities $ 5,288 $ 3,702 $ 10,563 $ 8,934
========== ========== ========== ==========
Cash flows from investing activities $ 6,737 $ (61,501) $ (264,210) $ (191,775)
========== ========== ========== ==========
Cash flows from financing activities $ 7,330 $ 66,350 $ 257,622 $ 183,870
========== ========== ========== ==========
FFO per share
Basic $ (0.02) $ 0.21 $ 0.62 $ 1.21
========== ========== ========== ==========
Diluted $ (0.02) $ 0.21 $ 0.59 $ 1.21
========== ========== ========== ==========
Adjusted FFO per share(3)
Basic $ 0.06 $ 1.45 $ 0.62 $ 2.20
========== ========== ========== ==========
Diluted $ 0.06 $ 1.44 $ 0.59 $ 2.20
========== ========== ========== ==========
Weighted average shares outstanding
Basic 8,406 8,307 8,404 8,305
========== ========== ========== ==========
Diluted 8,406 8,315 8,794 8,308
========== ========== ========== ==========
(1) FFO represents net income or loss (computed in accordance with generally
accepted accounting principles ("GAAP")), excluding gains (or losses) from
sales of property, excluding depreciation and amortization relating to real
property and including funds from operations for unconsolidated joint
ventures calculated on the same basis. AMAC calculates FFO in accordance
with the NAREIT definition. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not necessarily
indicative of cash available to fund cash needs. FFO should not be
considered as an alternative to net income as an indicator of our operating
performance or as an alternative to cash flows as a measure of liquidity.
Our management considers FFO a supplemental measure of operating
performance, and, along with cash flows from operating activities,
financing activities, and investing activities, it provides investors with
an indication of the ability of the Company to incur and service debt, to
make capital expenditures, and to fund other cash needs. Since not all
companies calculate FFO in a similar fashion, our calculation, presented
above, may not be comparable to similarly titled measures reported by other
companies.
(2) Related to properties sold during 2007 and 2006 and included in
discontinued operations in our consolidated statements of income.
(3) Adjusted FFO excludes the change in fair value of derivative instruments,
net of certain associated costs.
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CERTAIN STATEMENTS IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THESE STATEMENTS ARE BASED ON MANAGEMENT'S
CURRENT EXPECTATIONS AND BELIEFS AND ARE SUBJECT TO A NUMBER OF FACTORS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. THESE RISKS AND UNCERTAINTIES ARE
DETAILED IN AMAC'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND IN ITS OTHER
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION AND INCLUDE, AMONG OTHERS,
RISKS OF INVESTING IN NON-INVESTMENT GRADE COMMERCIAL REAL ESTATE INVESTMENTS;
COMPETITION IN ACQUIRING DESIRABLE INVESTMENTS; INTEREST RATE FLUCTUATIONS;
RISKS ASSOCIATED WITH INVESTMENTS IN REAL ESTATE GENERALLY AND THE PROPERTIES
WHICH SECURE MANY OF OUR INVESTMENTS; GENERAL ECONOMIC CONDITIONS AND ECONOMIC
CONDITIONS IN THE REAL ESTATE MARKETS SPECIFICALLY, PARTICULARLY AS THEY AFFECT
THE VALUE OF OUR ASSETS AND THE CREDIT STATUS OF OUR BORROWERS; DEPENDENCE ON
OUR ADVISOR FOR ALL SERVICES NECESSARY FOR OUR OPERATIONS; CONFLICTS WHICH MAY
ARISE AMONG US AND OTHER ENTITIES AFFILIATED WITH OUR ADVISOR THAT HAVE SIMILAR
INVESTMENT POLICIES TO OURS; RISKS ASSOCIATED WITH THE REPURCHASE AGREEMENTS WE
UTILIZE TO FINANCE OUR INVESTMENTS AND OUR ABILITY TO RAISE CAPITAL; RISKS
ASSOCIATED WITH FAILURE TO QUALIFY AS A REIT; AND RISKS ASSOCIATED WITH OUR
COLLATERALIZED DEBT OBLIGATION ("CDO") SECURITIZATION TRANSACTIONS, WHICH
INCLUDE, BUT ARE NOT LIMITED TO, THE INABILITY TO ACQUIRE ELIGIBLE INVESTMENTS
FOR A CDO ISSUANCE; INTEREST RATE FLUCTUATIONS ON VARIABLE-RATE SWAPS ENTERED
INTO TO HEDGE FIXED-RATE LOANS; THE INABILITY TO FIND SUITABLE REPLACEMENT
INVESTMENTS WITHIN REINVESTMENT PERIODS AND THE NEGATIVE IMPACT ON OUR CASH FLOW
THAT MAY RESULT FROM THE USE OF CDO FINANCINGS WITH OVER-COLLATERALIZATION AND
INTEREST COVERAGE REQUIREMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE
RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE OF
THIS DOCUMENT. WE EXPRESSLY DISCLAIM ANY OBLIGATIONS OR UNDERTAKING TO RELEASE
PUBLICLY ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED
HEREIN TO REFLECT ANY CHANGE IN OUR EXPECTATIONS WITH REGARD THERETO OR CHANGE
IN EVENTS, CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.
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