MMAC - Earnings call transcript Q4 2018 | MMA Capital Holdings Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the MMA Capital Holdings Inc. 2018 Fourth Quarter and Full Year Financial Results and Business Update Conference Call. My name is Nicole and I will be your coordinator for today. At this time, all participants are in a listen-only mode.

We will facilitate a question-and-answer session at the end of this conference call.

include performance regarding which of on expectations. will projections events are today current financial of MMA comments Forward-Looking future Statements and based Some Capital Holdings, include to the forward-looking with and statements. in differ Exchange cause and These materially Company's could Securities significant that results are in the subject uncertainties, comments these which actual those Commission from identified filings expressed risks to those reliance hereof. on as are these statements, Listeners place cautioned only date to which of undue the not speak forward-looking The obligation forward-looking the no Company contained information of undertakes any update to in statements. the this note event Please is being recorded. to I would now to the like turn Mr. over call Michael Capital MMA Holdings Falcone, CEO Inc. of Please go ahead.

Michael Falcone

Dave Thank haven't computer and little while is travel in today Bjarnason, Mike I morning you, have the bit This the participating snag call, President call this in yet everyone. of are this on Good it Nicole. Falcone. Gary of With and Chief a CFO. I had morning the Unfortunately a be front me Mentesana, made morning. will Officer; Operating

I'm cover have. prepared the and we to bulk Gary to any might going to questions will speak the And then folks remarks. Dave of to So be all available ask

Gary. So

Gary Mentesana

financial to be able XXXX to to overall Capital And MMA our review Thanks and prepared the also is Mike. should fourth our The Holding's Megan Vice we'll and all purpose said mention, and today on remarks take And is President I also business call year Sophocles results. Mike questions. provide call I quarter full as of have and Senior update. Dave an will then

now value detail respectively. an and common million will XXXX available with year results, of and year-ended $X.XX later, ended SEC common $XX.XX per million common book the an respect which sale X.X% represents the shareholders' $XX.XX, Companies million increase increase gains were at the of December quarter in for Company three of or is Dave net assets and equity Hunt we approximately net primarily XX, shareholders' share year. attributable $XX.X in Diluted certain or an and for shareholders' on or share the fair presentation equity, Inc equity per XX.X% months the $XX.X the to which $XXX.X from the in came to Our for business our and filed With and annual report the investor affiliate financial yesterday an of with bond our investments. of value review income website. lines on to the updated Increases

the completed that plan. XXXX business In XXXX bond Company addition which related of elements of transaction, to investments disposition a four simplified in significant Hunk that Company's reporting, financial December the our also January key facilitated and

our a - we and First, fair investments portion decreased related exited bond a value in time. otherwise would with manner that premiums of orderly

believe the fund generate available made to higher which Portfolio, we capital we returns. Second, will Capital Energy

we deleveraged combined corporate sheet our opportunity fourth, of better thesis. towards corporate making goals. we initiatives, in to our the sheet When overall balance invest corporate ,and corporation, and our steady utilization Third, the for conversion are sheet further simplified with balance potentially we as creating a such other balance an progress

to institutional which and $XX.X Company next at full is X% and quarter on months, $XX.X distributions year-end the that increase or value million the value principal and was range the of of loans by million, the capital coupon a other Capital average In solar an $XXX.X Energy from typically Energy at investments. and to outstanding committed energy at portfolios, of million The Company carrying bond ventures $XX.X Turning ranged annual portfolios, had a financed ventures average primarily of for December the our and the features aggregated In of million carrying maturity has - by XX.X% months now X.X%. related the the second were $X.X the The the generated in Portfolio, contribution, earned the the development solar respectively coupon of three average partner million ventures announced fees At and year, solar the or These capital which equity two financing investments and one XXth that five driven of - an capital that $XXX.X million of $XX.X invests and UPB. of projects. X.X%. and assets of Company's in Company alongside and weighted liabilities, loans renewable Capital Company's construction equity weighted in which XX. $XXX.X to the includes fourth balance increased is the UPB from million X% unpaid September XX, X.X%, debt on remaining coupons XXXX. origination same of income of December seven weighted received project-based during million, now

for without of over IRR solar a these Company pipeline average was been to to which of generating billion the than have loans strength of on $X.X for in the gigawatts have loss principle XX.X%, any higher continues Approximately investment That been underwritten. of the energy. of their X.X originally of million through repaid XXXX, average make represent XX, an a XXX The weighted Solar opportunity will ventures. Ventures On of originated for over attractive XXXX renewable portion an returns invested on inception lower investments loans in further enable completion believe a from related with the the the the aggregate with and increase why returns, moment. investments our to of adjusted other increase Company's will overtime. efforts through return I will a discuss Ventures January disposition risk that portfolio is capital in this investments of We in December orderly which additional Solar bond the in investments combined additional raise the December that Company at capital

properties to defaults as in respectively. portfolio. fourth were our other fair liabilities investments well $XXX.X to underlying multifamily was no and of investments and The bond quarter. new value The related continue XXst the Turning at the million there UPB our assets and bond December $XXX million perform

and pay While associated million a or the had of Total a XXXX. pay million, the that service at were notional debt financing, interest swap Swap, balance collection $XX had and rate weighted matures rate with in X.XX%. - December X.X% $XX of At this X.X Return coverage year-end, We and average fixed exposure times XX, that of and interest [indiscernible]. rate a was rate TRS it's XXXX spread TRS

an into the interest The million. subordinate a swap that in a agreement of of that bond swap series bond fixed exempt of multifamily total interest rate one with alluded UPB a a aggregate of the sale determination notional notional million The quarter transactions to in and $XX.X multifamily pay fourth million. amount agreements earlier, agreement taxes had tax the $XX.X entered had As of of a that had $XXX.X $XX XX involves of TRS million. of Company of certificate and basis termination one amount and that amount notional termination rate interest total a

million, amortized. premiums investments of entered during aggregate January, one $X.X one fund the sell bond Company renewable and paid fair UPB to capital Additionally, million of lending to additional and multifamily monetize an value - in transactions of energy tax and exempt week investments $X.X agreements available the respectively. benefit subordinate bond These tax into a interest with and our first multifamily certificate more related

low our investment are suitable investment target on and environment. investments that bond purposes. is sourcing related determine for to a Consequently, need new related individual in whether one we're As prior calls, rate they in off discussed reviewing essentially difficult bond our investments investments remain

rate increase of the recycles all a invested the we assets to income additional - not to result, which Company's year with the other to contribute expect the of this into rest X%. of capital. $XX of investments with consistently million related we equity respect the portfolio, end Investments quarterly Hunt continued exception to made in Capital liabilities With and As a the do and UPB in on bond return investors the portfolio of Energy assets of pay

be will I'll pursue financial discuss we greater believe realize over With to market Dave. in assets the call today the and to results value. what continue We monetize to their who Dave opportunity to these turn detail. that,

David Bjarnason

And Gary. Thanks morning everyone. good

which income and $XX.X $XXX.X what to fourth in detail $XX.X equity in XX-K. in fourth on our a discuss provide net I comprehensive recognized represented XXXX the increased a on by income In in shareholders' this million $X.X drives $XX by results, mentioned, we I'll increased to and book comprehensive more common year we a common book recognized value various income a overview in reported our $XX.XX seven As in shareholders' in per common including $XX regard, share quarter. key a of million which later the XXXX, million. we exceeded Increases comprehensive to million Gary in in increase to million. I'll value other loss. form The XXXX, per full reported equity share million per of in reported million the refer share as $XX.X year increase quarter full this we of and share share, increase basis income in tables an $XX.X In comprehensive quarter equity we In per net that $X.XX of that $XX.XX XXXX. of regard, basis. fourth by were Item million driven including shareholders per

Tables on XXXX shareholders’ two driven of offset driver. standards other drivers the We The $X.X repurchases. comprehensive which shares our of impact of however adopting to XX were acquired equity. XXX,XXX share, our program addition cumulative and effects $XX.X XXXX Hunt average a Company's January of filing increase, revenue by more stock million a Companies, share price about approximately holders reduction was officers common reported shares $XX.XX In was The quarter. was exercise with new shareholders' to including partially comprehensive an look the options. a XXXX, closer by at of XXX,XXX million information primarily per also income, at shares taking drivers million, share high buyback common recognized who key in of this equity fourth of of the it which increase $X.X shareholders' we X, issuance at in purchased we of recognition through an but both income. a caused level, common to $X.X million effect increases In of net the these to provides equity

shareholders common we in to the income in I million fourth net XXXX, reported previously mentioned, allocable quarter. million As $XX.X including of $XX

table you in reported allocable of compared XXXX shareholders As the on key to our two increase. were There drivers XXXX. of this net more year-over-year can to $XX.X income we filing, XX common see million for

First, as reclassified of out of million AOCI $XX.X a TRS by increased and bond million income. in $XX.X Gary holding into resulted sales and earlier, primarily result being discussed approximately net which by unrealized gains terminations of net

the interest $XX fourth press expense $X.X and related XXXX net quarter partially with in by from Company's ended Net bond XXXX. as fourth $X.X of Equity in paid Hunt to result in on factors the the and months our in of partners sale declined associated million partnerships preferred equity of MGM increased UPB management U.S. investments there associated investment earned discontinued the $XX.X in and contributing It was results the the the partnerships entities. year-over-year increased income our loan previously as from upon the South XXXX, Company of XXXX, reclassification largest XX, classified income tax $X primarily two could by in Housing several relative in primarily $X.X and primarily a and payable XXXX, quarter XXXX and quarter. Hunt Real $X reduction Hunt increased the quarter investments Ventures to third the by October businesses this XXXX. from the Ventures income bond Estate or part result to Solar in of the amount during cases interest. the ventures income in by million income was fourth which premium nearly million other and Separately by Secondly, the recognition Real a held [indiscernible] five of were The across Equity Workforce with purchase the with Management certain real the such million a operations related $XX.X debt South of million increase former recognized evenly compared $X.X million recognized assets that an drivers Company's by release. year. during buyout by May the one Capital was that amortization from recognized a income credit Company declined and eliminated equity Workforce be in the million of funding Estate business net due return, in on non-recurring and driven debt. $XX declined for Hunt. from XXXX U.S. during receivable gain worth recognized the XXXX the from noted equity of $X.X to million notes related increase purchase - as million to was of sale Fund. bond [indiscernible] the investment and million the in as sales, of of noting. underlying XXXX our to Solar Company portfolios earned gains income Solar income effect a Well, the former assets $X.X increase of decreased equity our Africa debt, fees earlier housing Energy cost by connection by from funds the million large partners partnership Grove other offset XXXX. smooth interest. estate income, basis, drove the in Solar $X million of unconsolidated a in Ventures of compared Ventures, for as Africa was Those connection in are in low to Housing items Fund the million Morrison of to Other XX%

As of recognized a net the on fund losses in result XXXX. unrealized investments

mind million of by these the loss third was earnings a as an in into reduction this in of which expense impact bond gains a or expense reported quarter. due in a actually recognized other to quarters. to to Company's result impact XXXX XXXX, reimbursable on interest of occurrence our of other large driven and holding benefits was offset quarter decrease recognized Net first the limited of unfavorably $XX.X The $X.X business fourth comprehensive manager net million expenses reversal gains in management in and for sales. in impact to decreased related offset adjustments, the conversions loss AOCI which in the XXXX the externally and of to was the quarter was by million management, softened of dispositions Company million by recognized of no The comprehensive our $X this basis, the also related was operating income - bond income which million recognized million of beginning that our management of which million the managed was filings, reclassification of and that XXXX. translation AOCI of million investments compares XXXX, in $X.X - or the reported comprehensive part million increased $XX.X components our in expenses business Lastly, by $XX.X were to expenses on out of fees was in the $X.X of of other income of XXXX. related bond XXXX Company cumulative eliminated million longer that XXXX, $XX external aggregates the investment To $X.X salaries the partially The international payable investments model, the year-over-year were $X reclassifications recognized and reporting we $XX external purposes in Hunt. was the of which income loss asset in of partially fourth during and first XXXX Operating that of XXXX. primarily XXXX. $X.X Company's million driven sale the million of bond a

Ventures activities. cash of Table to in million all by was of of liquidity XX and Lastly which The back decrease cash by - the over restricted near flows $XX.X will and down offset investments cash, million flows and activities conveyance our cash the in cash breaks Solar provided cash, impact restricted cash transaction XXXX. Company's $XX.X net $X.X of I resources. equivalents largely on of financing entire XX, With million made million $XX.X investing of unrestricted. Hunt the turn of Company operating deconsolidation used other that December cash at with was part decrease. Gary. during XXXX. of The including call filings equivalents Company's this that, capital respects to CFPs the cash in activities of $X.X had and we of

Gary Mentesana

David. Thanks

the successful Before a business buybacks of Q&A, respect provide XXXX Company plan of to to I'll and a plan. to we buyback plan, get the the update brief concluded the our conclusion the XXXX With buyback approach execution XXXX plan. on the the

any to taken time the From As in XXXX a XXXX Dave prosper business a this operations plan. at to at perspective, value. not represented sheet. XXX,XXX repurchased a has book noted, shares buyback discount balance transformation action the Board The significant adopt Company significant

with of portfolio, financial with simplified our events of into First, the the realization and significantly runoff our tax leverage. also Capital credit our businesses lines which that statements. institutional And the recycling second, Energy growing reduced in out equity business

business risk plan in continue Capital begin as that equity to to Energy we more the environment. And optimal into we cycle the adjusted investment mix the to analyze portfolio year. to the current end, We continue

value. the As risk can and tasks we primary see opportunities, to adjusted and always, will attractive new look effort flexibility additional them produce in impacts continue quarterly. improve we increase returns social general, returns generate or continue two which an to to we if initiatives environmental investment to shareholder positive we to think identify at we invest existing retain In

trading growth inform cash capital available that shareholders. fact net our policies in we earning between as per income First, and value second, our that value our in opportunities. higher value investment key also And be business the the share time increasing anticipate for gap return of in will through book investment This growing price. the impacts will narrowing our driver long-term of it for investors, income

As previously have the work business. bottom respect in to second corporation we growing primarily With and to the to additional Company’s path, one our program in investment a lever Energy the January and exemplified line and capital interest conversion path put shares. we an increased to mentioned, as Capital top in have historically numbers in actionable other pursued used by our to initiatives buyback generate through

on front progress we and additional to increase given have our in both on investment growth our still both us recent price. the have in we continued see of Although opportunities share pass,

that XXst. the wanted second will of we date we to for we around with of mention proxy excited your about annual anticipate a thank We and our take years. shareholders are to May be the set for sent closing Before questions. Company In has of shareholders meeting consistent you I April remain week the committed future, the the prior support.

now will call Nicole. open the We for questions.

Operator

no I closing for would remarks. over Falcone we questions conference to Mr. As the this at time, turn to any have like

Michael Falcone

Great. you shareholders would Nicole. like very for Thank their patients. much thank Again, to our I

the year year to about together drive working We team the would that are that here value has for continue we pretty also of to we many finished to that for is been just like are the thank certainly excited equally tirelessly years about ahead excited I and us. shareholders.

We with are to forward. as about of look and move work to you excited all together future forward our we continuing

to thanks. great everyone and a have weekend. Thanks Bye. So again

Operator

for presentation. now is concluded. conference today's The Thank attending you

You may now disconnect.

Michael Falcone	Chief Executive Officer
Gary Mentesana	President Chief Operating Officer
David Bjarnason	Chief Financial Officer
Megan Sophocles	Senior Vice President

MMA Capital (Trading Symbol(s) MMAC MMAC) 15 Mar 192018 Q4 Earnings call transcript