Altisource Asset Management Corporation Reports Fourth Quarter and Full Year 2022 Results
Altisource Asset Management Corporation (AAMC) reported its financial results for Q4 and the full year of 2022, highlighting a net loss of $(4.1) million for Q4 compared to $(8.4) million in Q4 2021. The company earned $2.5 million from loan interest and fees in Q4 2022, while its cash position was $12.8 million as of December 31, 2022. AAMC entered a $50 million line of credit with NexBank and formed partnerships to enhance distribution in the private credit market. For the full year, AAMC's net loss to common shareholders was $(15.9) million, with a diluted EPS of $(5.64), reflecting a significant decline from a previous gain of $37.90 per share in 2021.
- Earned $2.5 million from loan interest and fee income in Q4 2022.
- Entered into a $50 million line of credit agreement with NexBank.
- Reduced net loss to common shareholders in Q4 2022: $(4.1) million vs $(8.4) million in Q4 2021.
- Net loss to common shareholders for the year totaled $(15.9) million, up from $(6.0) million in 2021.
- Diluted EPS dropped to $(5.64) for 2022, significantly down from $37.90 in 2021.
CHRISTIANSTED,
Fourth Quarter 2022 Highlights and Recent Developments
-
Entered into forward contracts to sell alternative credit products to two of the US's largest institutional counterparties that manage insurance and credit money assets on
January 31, 2023 . The organizations have over and$50 billion in assets under management.$15 billion -
Earned
from loan interest and fee income during the fourth quarter of 2022.$2.5 million -
As of
December 31, 2022 , AAMC's cash position was , which is net of the$12.8 million at quarter end for loans held for sale and investment at fair value.$94.7 million -
The Company entered into a
line of credit agreement with NexBank.$50 million -
Announced that
Danya Sawyer joined the Company as Chief Operating Officer of theAlternative Lending Group ("ALG") onFebruary 1, 2023 .
“Q4 and year to date, we’ve expanded our access to permanent capital, formed key distribution partnerships and bolstered our leadership team,” said
Fourth Quarter and Full Year 2022 GAAP Financial Results
AAMC’s net loss to common shareholders for the fourth quarter of 2022 was
AAMC's net loss to common shareholders for the year ended
About AAMC
AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to under-served markets. Additional information is available at www.altisourceamc.com.
Forward-looking Statements
This press release contains 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, regarding management’s beliefs, estimates, projections, anticipations, and assumptions with respect to, among other things, the Company’s financial results, margins, employee costs, future operations, business plans including its ability to sell loans and obtain funding, and investment strategies as well as industry and market conditions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe,” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from these forward-looking statements may include, without limitation, our ability to develop our businesses, and to make them successful or sustain the performance of any such businesses; our ability to purchase, originate, and sell loans, our ability to obtain funding, market and industry conditions, particularly with respect to industry margins for loan products we may purchase, originate, or sell as well as the current inflationary economic and market conditions and rising interest rate environment; our ability to hire employees and the hiring of such employees; developments in the litigation regarding our redemption obligations under the Certificate of Designations of our Series A Convertible Preferred Stock; and other risks and uncertainties detailed in the “Risk Factors” and other sections described from time to time in the Company’s current and future filings with the
The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.
Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Loan interest income |
|
2,316 |
|
|
|
— |
|
|
|
4,579 |
|
|
|
— |
|
Loan fee income |
|
178 |
|
|
|
— |
|
|
|
353 |
|
|
|
— |
|
Servicing fee revenue |
|
32 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
Total revenues |
|
2,526 |
|
|
|
— |
|
|
|
4,965 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
$ |
1,797 |
|
|
$ |
1,557 |
|
|
$ |
5,839 |
|
|
$ |
5,635 |
|
Legal fees |
|
817 |
|
|
|
1,159 |
|
|
|
4,349 |
|
|
|
6,885 |
|
Professional fees |
|
1,064 |
|
|
|
345 |
|
|
|
1,901 |
|
|
|
1,531 |
|
General and administrative |
|
1,209 |
|
|
|
684 |
|
|
|
3,545 |
|
|
|
2,573 |
|
Servicing and asset management expense |
|
250 |
|
|
|
— |
|
|
|
683 |
|
|
|
— |
|
Acquisition charges |
|
— |
|
|
|
2,555 |
|
|
|
513 |
|
|
|
3,908 |
|
Interest expense |
|
893 |
|
|
|
— |
|
|
|
1,328 |
|
|
|
60 |
|
Direct loan expense |
|
23 |
|
|
|
— |
|
|
|
122 |
|
|
|
— |
|
Loan sales and marketing expense |
|
333 |
|
|
|
— |
|
|
|
338 |
|
|
|
— |
|
Total expenses |
|
6,386 |
|
|
|
6,300 |
|
|
|
18,618 |
|
|
|
20,592 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Change in fair value of loans |
|
(75 |
) |
|
|
— |
|
|
|
(1,963 |
) |
|
|
— |
|
Change in fair value of equity securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
146 |
|
Gain on sale of equity securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,347 |
|
Dividend income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,061 |
|
Other |
|
8 |
|
|
|
7 |
|
|
|
32 |
|
|
|
94 |
|
Total other (expense) income |
|
(67 |
) |
|
|
7 |
|
|
|
(1,931 |
) |
|
|
11,648 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations before income tax |
|
(3,927 |
) |
|
|
(6,293 |
) |
|
|
(15,584 |
) |
|
|
(8,944 |
) |
Income tax expense |
|
192 |
|
|
|
2,098 |
|
|
|
350 |
|
|
|
3,273 |
|
Net loss from continuing operations |
|
(4,119 |
) |
|
|
(8,391 |
) |
|
|
(15,934 |
) |
|
|
(12,217 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Gain on discontinued operations (net of income tax expense of |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,213 |
|
Net loss attributable to common stockholders |
|
(4,119 |
) |
|
|
(8,391 |
) |
|
|
(15,934 |
) |
|
|
(6,004 |
) |
|
|
|
|
|
|
|
|
||||||||
Continuing operations earnings per share |
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations |
$ |
(4,119 |
) |
|
|
(8,391 |
) |
|
|
(15,934 |
) |
|
|
(12,217 |
) |
Gain on preferred stock transaction |
|
— |
|
|
|
(23 |
) |
|
|
5,122 |
|
|
|
87,961 |
|
Numerator for earnings per share from continuing operations |
$ |
(4,119 |
) |
|
|
(8,414 |
) |
|
$ |
(10,812 |
) |
|
$ |
75,744 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share of common stock – Basic: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(2.31 |
) |
|
$ |
(4.09 |
) |
|
$ |
(5.64 |
) |
|
$ |
37.83 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.11 |
|
Total |
$ |
(2.31 |
) |
|
$ |
(4.09 |
) |
|
$ |
(5.64 |
) |
|
$ |
40.94 |
|
Weighted average common stock outstanding |
|
1,779,448 |
|
|
|
2,055,561 |
|
|
|
1,917,503 |
|
|
|
2,002,111 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share of common stock - Diluted: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(2.31 |
) |
|
$ |
(4.09 |
) |
|
$ |
(5.64 |
) |
|
$ |
35.03 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.87 |
|
Total |
$ |
(2.31 |
) |
|
$ |
(4.09 |
) |
|
$ |
(5.64 |
) |
|
$ |
37.90 |
|
Weighted average common stock outstanding |
|
1,779,448 |
|
|
|
2,055,561 |
|
|
|
1,917,503 |
|
|
|
2,162,378 |
|
Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Loans held for sale, at fair value |
$ |
11,593 |
|
|
$ |
— |
|
Loans held for investment, at fair value |
|
83,143 |
|
|
|
— |
|
Cash and cash equivalents |
|
10,727 |
|
|
|
78,349 |
|
Restricted cash |
|
2,047 |
|
|
|
— |
|
Other assets |
|
10,137 |
|
|
|
3,127 |
|
Total assets |
$ |
117,647 |
|
|
$ |
81,476 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Liabilities |
|
|
|
||||
Accrued expenses and other liabilities |
|
10,349 |
|
|
|
7,145 |
|
Lease liabilities |
|
1,323 |
|
|
|
859 |
|
Credit facility |
|
51,653 |
|
|
|
— |
|
Total liabilities |
|
63,325 |
|
|
|
8,004 |
|
|
|
|
|
||||
Commitments and contingencies: |
|
|
|
||||
|
|
|
|
||||
Redeemable preferred stock: |
|
|
|
||||
Preferred stock, |
|
144,212 |
|
|
|
150,000 |
|
|
|
|
|
||||
Stockholders' deficit: |
|
|
|
||||
Common stock, |
|
34 |
|
|
|
34 |
|
Additional paid-in capital |
|
149,010 |
|
|
|
143,523 |
|
Retained earnings |
|
41,516 |
|
|
|
57,450 |
|
Accumulated other comprehensive income |
|
20 |
|
|
|
54 |
|
|
|
(280,470 |
) |
|
|
(277,589 |
) |
Total stockholders' deficit |
|
(89,890 |
) |
|
|
(76,528 |
) |
Total Liabilities and Equity |
$ |
117,647 |
|
|
$ |
81,476 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005390/en/
Investor Relations
T: +1-704-275-9113
E: IR@AltisourceAMC.com
Source:
FAQ
What were AAMC's financial results for Q4 2022?
How much did AAMC earn from loan interest and fees in Q4 2022?
What was AAMC's diluted earnings per share for 2022?
What is AAMC's cash position as of December 31, 2022?