Aames Investment Corporation Summary Fourth Quarter Results, Elimination of REIT Status and Cost Reduction Initiatives; 4th Qua
16 Março 2006 - 6:49PM
Business Wire
Aames Investment Corporation (NYSE: AIC): -- Net Cost to Originate
Decreases to 1.75% with $1.9 Billion of Total Originations for the
Quarter -- Company Elects to End REIT Status to Increase Internal
Capital Generation for Portfolio Growth -- Consolidation of
Wholesale Operations Expected to Reduce Net Cost to Originate Ratio
Below 1.50% -- Company Will File 2005 10-K and Release Full 4th
Quarter Earnings on March 27th Aames Investment Corporation (NYSE:
AIC), a nationwide subprime mortgage lender, today announced
summary 4th quarter 2005 financial results and an extension in the
filing of its 10-K for 2005 due to the pending completion of a
corporate cost reduction initiative. The Company's Board of
Directors has approved the elimination of its REIT status and a
cost consolidation initiative in its wholesale operations in
response to the current challenging market conditions. The Company
requires additional time to finalize its estimate of the full
financial benefit of these changes and to complete its 10-K. The
investor conference call schedule for 5:00 p.m. EST on March 16th
has been rescheduled for 9:00 a.m. EST on March 17th to discuss the
summary results and corporate actions. Aames will release full
fourth quarter results and hold an extended investor conference
call after the close of the market on Monday, March 27th.
Highlights for the fourth quarter include: -- A net cost to
originate ratio for the quarter of 1.75%, compared to 2.08% for
third quarter of 2005; -- Core EPS of $0.02; -- Total originations
$1.9 billion, with its retail channel accounting for 43% of total.
The Board of Directors of Aames has authorized the Company to
implement a cost reduction initiative, including the elimination of
its REIT status. The election to end its REIT status is expected to
allow the Company to retain its portfolio earnings, increase its
book value and support future loan portfolio growth, while
utilizing its $304 million of net operating loss carry-forward
(NOLs). In addition to the change in tax status, Aames announced a
significant cost reduction initiative designed to reduce the
Company's overhead expenses and its net cost to originate ratio. As
part of this initiative, the Company will reduce its wholesale cost
to originate. The Company will also introduce a more stringent loan
pricing matrix and eliminate loan products that have become
unprofitable in the current market. The Company will implement
these strategic moves in order to better focus on driving improved
earnings per share at its tax efficient mortgage banking platform.
The combined effect of these actions is expected to reduce the
Company's net cost to originate ratio to below 1.50%, improve the
net gain on sale ratio achieved on whole loan sales. In addition,
the change to a C Corp. will allow the Company to retain portfolio
earnings to support a loans held for investment portfolio at its
former taxable REIT subsidiary and utilize its NOLs to shelter a
substantial portion of its future income from taxes. The Company is
finalizing its restructuring plans and will provide details as to
the level of cost elimination and financial benefits when it
releases its full 4th quarter 2005 earnings. The Company
anticipates filling its 10-K for 2005 and reporting fourth quarter
earnings and hosting an investor conference call on March 27, 2006
after the close of the market. About Aames Investment Corporation
Aames is a nationwide subprime mortgage lender and, through its
subsidiary Aames Financial Corporation, originates mortgage loans
in 47 states. Aames Financial is a fifty-year old national mortgage
banking company focused primarily on originating subprime
residential mortgage loans through wholesale and retail channels
under the name "Aames Home Loan." To find out more about Aames,
please visit www.aames.com. Information Regarding Forward Looking
Statements This press release may contain forward-looking
statements under federal securities laws. These statements are
based on management's current expectations and beliefs and are
subject to a number of trends and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The risks and uncertainties that may
cause the company's performance and results to vary include: (i)
limited cash flow to fund operations and dependence on short-term
financing facilities; (ii) changes in overall economic conditions
and interest rates; (iii) increased delinquency rates in the
portfolio; (iv) intense competition in the mortgage lending
industry; (v) adverse changes in the securitization and whole loan
market for mortgage loans; (vi) declines in real estate values;
(vii) an inability to originate subprime hybrid/adjustable mortgage
loans; (viii) obligations to repurchase mortgage loans and
indemnify investors; (ix) concentration of operations in
California, Florida, New York and Texas; the occurrence of natural
disasters (including the adverse impact of hurricanes Katrina, Rita
and Wilma) and (x) extensive government regulation. For a more
complete discussion of these risks and uncertainties and
information relating to the company, see the Form 10-K for the year
ended December 31, 2004 and other filings with the SEC made by the
company. Aames Investment expressly disclaims any obligation to
update or revise any forward-looking statements in this press
release. Further Information For more information, contact Steven
Canup, Senior Vice President, Corporate Development and Investor
Relations, in Aames Investment's Investor Relations Department at
(323) 210-5311 or at info@aamescorp.com via email.
Arlington Asset Investment (NYSE:AIC)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Arlington Asset Investment (NYSE:AIC)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
Notícias em tempo-real sobre Arlington Asset Investment Corp da New York Stock Exchange bolsa de valores: 0 artigos recentes
Mais Notícias de Aames Investment Corporation