MuniMae Announces Quarterly Dividend
28 Janeiro 2008 - 10:25PM
Business Wire
Municipal Mortgage & Equity, LLC (�MuniMae� or �the Company,�
NYSE: MMA) announced today that its Board of Directors has declared
a dividend distribution of $0.33 per common share payable on
February 15, 2008 to shareholders of record as of February 5, 2008.
The Company also announced that while it expects to have completed
by the end of February, its substantive work required to prepare
its 2006 financial statements and its restated audited financial
statements for 2005 and 2004, the Company does not expect to be
able to file its audited financial statements by its previously
announced goal of March 3, 2008. Based on work done to date, the
Company does not believe the results of the restatement will
materially change the previously recorded cash balances of the
Company and its subsidiaries. The reduction in the dividend
distribution from $0.5250 to $0.33 per share is due to the cost of
the Company�s ongoing restatement of its financial statements, the
decision by the Company to conserve capital to protect the
long-term prospects of the business given the current volatility in
the credit and capital markets, and the desire to dedicate
additional capital to the high-growth Renewable Energy Finance
business, an increasingly important part of the Company�s business.
A portion of this dividend will be paid from sources other than
cash generated from operations. The Board of Directors will
continue to review the Company�s dividend payout on a quarterly
basis based, among other factors, on the Company�s net cash
generation and the strategic needs of the business. �Knowing the
importance of the dividend to our shareholders, it was a difficult
decision to reduce the dividend,� stated Michael L. Falcone, Chief
Executive Officer. �However, we believe that in this market it is
important to be cautious in our approach to finding the balance
between retaining capital to grow and to protect against
uncertainty on the one hand, and distributing capital to
shareholders as a dividend on the other. For 2007, our production
numbers were solid, especially in our MMA Renewable Ventures unit
which finished the year with a strong pipeline of additional solar
and other renewable and clean energy opportunities. We believe the
diversity of our various businesses helps us to succeed even in a
tough marketplace. In these uncertain times, we will continue to be
prudent in our management of the business, while remaining watchful
for the opportunities that such markets usually present. We hope in
the future to grow the dividend as we complete our restatement and
as market conditions allow.� Update on 2007 Production Overall,
2007 production was $4.2 billion, compared to $3.7 billion in the
prior year period. Production in the Company�s affordable housing
business included approximately $813 million in tax credit equity
placements, compared to $1.16 billion in the prior year,
approximately $115 million in construction loan originations,
compared with $53 million in the prior year, $225 million in
permanent loan originations, compared with $72 million in the prior
year, and $296 million of tax exempt bond originations, compared
with $267 million in the prior year. MMA Realty Capital production
included approximately $679 million in Fannie Mae, Freddie Mac, and
other agency originations, and approximately $1.6 billion in
non-agency originations, approximately $706 million of which is
attributable to an acquisition the Company made in 2007, compared
to $829 million and $983 million, respectively, in the prior year
period. Production in the Company�s MMA Renewable Ventures unit,
which commenced operations in mid-2006, more than quadrupled, as
the Company developed and financed approximately $234 million in
solar electricity facilities. The Company�s margins have held up
well across the majority of its business lines with the exception
of the low income housing tax credit business, which has
experienced margin compression. Capital market conditions make it
difficult to predict 2008 production at this time. Update on
Restatement The Company also announced that it is filing with the
Securities and Exchange Commission (�SEC�) a Form 8-K, available at
www.sec.gov, which discusses the nature of the changes in the
Company�s accounting policies that are being made as a result of
the Company�s ongoing restatement efforts covering its 2006
results. The overall impact of the restatement and the changes in
the Company�s accounting policies are still being quantified;
however, the Company believes that the final result of the
restatement will not materially change the previously recorded
corporate cash balances of the Company and its subsidiaries.
However, work on the restatement and the 2006 financial statements
has not been completed and further work on the restatement or the
audit of the 2006 financial statements could change these results.
The ultimate impact of the restatement is dependent on management
finalizing all areas of the restatement and the completion of the
external audit. Although the Company continues to work to file its
restated financial statements at the earliest possible time, the
Company does not expect to meet the previously announced March 3,
2008, New York Stock Exchange (�NYSE�) deadline for filing its 2006
Form 10-K. As a result, the Company expects that the NYSE will
suspend trading shortly and commence delisting procedures. Upon
suspension of trading on the NYSE, the Company�s shares will begin
to trade on the over the counter market pending a possible appeal
and a final determination on the delisting. If the Company is
delisted from the NYSE, the Company will be able to apply for
relisting on the NYSE when all its filings with the SEC are
current. The Company currently expects to complete its unaudited
financial statements for 2006 and its unaudited restated financial
statements for 2005 and 2004 no later than mid-March 2008, and to
file its Annual Report on Form 10-K for the year ended December 31,
2006, by May 30, 2008. The delay in completing the restatement and
filing the Form 10-K is not expected to have any impact on the
issuance of K-1�s to shareholders in time for inclusion in their
2007 tax returns. Michael Falcone concluded, �Thanks to the hard
work of our employees and outside consultants and the support of
the Board, we are making substantial progress on our restatement
efforts and are able to report to the marketplace this preliminary
information. Accounting for our business is complex; this combined
with our previously announced change in auditors, necessitated a
top-to-bottom review to ensure that our financial information is
completely accurate. Going forward we are dedicated to making sure
that we have the policies, systems and people in place to meet our
reporting obligations.� Conference Call Information Management will
host a conference call at 8:30 a.m. ET on Tuesday, January 29,
2008, to discuss this announcement and the Company's performance
for the fourth quarter of 2007. All interested parties are welcome
to attend the live webcast, which can be accessed through the
�Investor Relations� section of our website (www.munimae.com). You
can also join the conference call by dialing (866) 272-9941
(passcode: 19124093). An archived replay of the event will be
available through March 1, 2008, at (888) 286-8010 (passcode:
49521279). The conference call transcript will also be archived on
our website through March 1, 2008. About MuniMae MuniMae and its
subsidiaries arrange debt and equity financing for developers and
owners of real estate and clean energy projects. The Company also
provides investment management and advisory services for
institutional investors. Assets under management exceed $19 billion
including investments in approximately 3,000 multifamily
properties, containing more than 323,000 units in 49 states, the
District of Columbia, Puerto Rico and the U.S. Virgin Islands.
MuniMae is organized as a limited liability company, which allows
it to combine the limited liability, governance and management
characteristics of a corporation with the pass-through features of
a partnership. As a result, the tax-exempt income derived from
certain investments remains tax-exempt when passed through to
shareholders. MuniMae also conducts activities through wholly owned
taxable corporate subsidiaries. Distributions to shareholders are
normally declared quarterly. Statements in this press release or on
MuniMae's website that are not historical fact may be deemed
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Examples of forward
looking statements include such matters as future Board actions
concerning our dividend. Although the Company believes the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, the Company can give no assurance that
its expectations will be attained. The Company undertakes no
obligation to revise or update publicly any forward-looking
statements contained herein for any reason. Factors that could
cause actual results to differ materially from the Company's
expectations include completion of the audit of our financial
statements, completion of pending investments, continued ability to
originate new investments, the mix of business between tax-exempt
and taxable activities, the availability and cost of capital for
future investments, competition within the finance and real estate
industries, economic conditions, loss experience and other risks
detailed from time to time in the Company's SEC reports. This press
release does not constitute an offer to sell any securities of the
Company or any other entity. MUNIMAE: INTEGRITY. INNOVATION.
SERVICE. www.MuniMae.com
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