- Earns GAAP net income of $1.66 per diluted share, or $1.47 on an
adjusted basis for 2005 NEW YORK, March 6 /PRNewswire-FirstCall/ --
MortgageIT Holdings, Inc. (NYSE:MHL), a residential mortgage
company organized as a real estate investment trust ("REIT"), today
announced operating and financial results for the fourth quarter
and year ended December 31, 2005. The Company reported GAAP net
income for the fourth quarter of 2005 of $7.5 million, or $0.26 per
diluted share. For the year ended December 31, 2005, GAAP net
income was $40.3 million, or $1.66 per diluted share. Adjusted net
income for the fourth quarter of 2005 was $8.7 million, or $0.31
per diluted share. For the year ended December 31, 2005, adjusted
net income was $35.8 million, or $1.47 per diluted share. Net
income and adjusted net income per diluted share are based upon
weighted average outstanding shares of 28.4 million for the fourth
quarter and 24.3 million for the twelve-month period. Additional
operating information is included in the "Operating Statistics
Table" provided later in this press release. Doug Naidus, Chairman
and Chief Executive Officer, commented, "MortgageIT generated
substantial growth in 2005, building its high credit quality
portfolio to approximately $4.7 billion and producing well over
100% growth in loan origination volume, to $29.2 billion. During
the second half of 2005, an increasingly challenging market
environment developed, including a disruption in the value of
sub-prime mortgage loans, intensifying competition for prime
mortgage loans, and a yield curve that inverted, which had the
effect of increasing borrowing costs for both our portfolio and our
mortgage bank. During the fourth quarter of 2005, gain on sale
margins for loans sold to third parties declined to 71 basis
points, a level we have not seen for the past couple of years. We
expect this environment to persist over the near term." Mr. Naidus
continued, "Our portfolio has continued to perform well and
prepayment speeds have slowed dramatically during the first quarter
of 2006. We are actively managing our product mix and have
substantially exited the wholesale sub-prime business, which drove
losses at our mortgage bank in the fourth quarter of 2005 and is
expected to contribute to a consolidated net loss in the first
quarter of 2006." Mortgage Banking Financial and Operating
Highlights: * For the fourth quarter ended December 31, 2005,
MortgageIT, Inc., the Company's mortgage banking subsidiary, had a
pre-tax loss of $1.6 million. After-tax loss, prior to
eliminations, totaled $0.7 million. Net of tax and the elimination
of the gain on sale relating to $519.1 million of loans transferred
to the REIT portfolio, the mortgage bank lost $3.8 million or $0.13
per share. * Gain on sale margins for loans sold to third parties
during the quarter ended December 31, 2005 was approximately 71
basis points (bps). A review of prime and sub-prime margins can be
found in the "Operating Statistics Table" provided later in this
press release. Portfolio Financial and Operating Highlights: *
During the fourth quarter of 2005, the Company transferred $519.1
million of self-originated ARM loans to its investment portfolio.
As of December 31, 2005, the Company had an investment portfolio of
approximately $4.7 billion plus approximately $23.4 million of
self- originated mortgage backed securities. The portfolio had an
average balance of $4.8 billion during the fourth quarter of 2005.
* Adjusted net interest margin on the loan portfolio was 105 bps
during the fourth quarter of 2005, down from 122 bps in the third
quarter. Adjusted return on assets ("ROA") on the portfolio was 90
bps in the fourth quarter, up from 79 bps in the third quarter of
2005. Fourth quarter adjusted ROA was positively impacted by
decreased loan basis amortization due to slower prepayment speeds
and a cumulative adjustment made to the allocation of
administrative expenses to the portfolio. * The Company's
investment portfolio earned $12.5 million or $0.44 per share in
adjusted earnings during the fourth quarter of 2005. Sub-Prime
Business Unit Update and Guidance * As previously reported, the
significant pressure on sub-prime gain on sale margins and the
consolidation of that business unit negatively impacted fourth
quarter earnings by approximately $0.15 per diluted share. * The
Company now expects to fund approximately $150 million to $200
million of sub-prime loan volume during the first quarter of 2006.
Also, the Company expects future sub-prime loan volume not to be a
material component of its total originations as the Company will
have substantially exited the wholesale sub-prime business by the
end of the first quarter of 2006. * During the first quarter of
2006, the Company continues to reduce its sub-prime staff and
operations. These further reductions, along with the disposition of
the remaining sub-prime loans, will negatively impact first quarter
2006 earnings by approximately $0.25 to $0.30 per share. Outlook
and Guidance * The Company expects to report a consolidated net
loss for the first quarter of 2006, due to expected losses at our
mortgage bank, substantially driven by the sub-prime business. *
The Company expects to pay a first quarter dividend of $0.25 per
share. * The Company expects the average balance of its investment
portfolio to be approximately $5.0 billion during the first quarter
of 2006. * The Company expects to report loan funding volume of
approximately $6.0 to $6.5 billion in the first quarter of 2006,
which would represent an increase of 38% to 50% over the first
quarter of 2005. * During the fourth quarter of 2005, the Company
repurchased approximately 90,000 shares of its common stock in open
market transactions at an average price of $13.03. The Company has
approximately $28.8 million remaining under its current
authorization, but does not anticipate active repurchases during
the first quarter of 2006. Adjusted Financial Measures Adjusted net
income, adjusted net interest margin, adjusted return on assets,
and adjusted earnings per share (diluted) are non-GAAP financial
measures which are reported by the Company in addition to net
income and earnings per share (diluted) as prepared in accordance
with GAAP. As indicated in its first quarter 2005 release, during
the first quarter of 2005, the Company did not qualify under the
Statement of Financial Accounting Standards No. 133, "Accounting
for Derivative Instruments and Hedging Activities" ("FAS 133") with
respect to certain hedging activities. The non-GAAP financial
measures reported by the Company are presented as if the Company
qualified under FAS 133 in all periods. If the Company qualified
under FAS 133, gains and losses on derivative hedges would have
been deferred and amortized over the hedge period. Since the
Company did not qualify under FAS 133, both realized and unrealized
gains and losses were recognized in GAAP earnings in prior periods.
Management believes that by adjusting net income in this manner,
the non-GAAP measures provide a useful gauge of the Company's
operating performance because adjusted net income highlights that
portion of the Company's reported earnings that is more likely to
be ongoing in nature. Conference Call Information MortgageIT
Holdings, Inc. will hold an investor conference call to discuss its
fourth quarter and full-year 2005 financial performance at 10:00
a.m. Eastern Time on Tuesday, March 7, 2006. Interested parties may
listen to the live call by dialing 800-865-4415 (U.S.) or
973-935-2402 (International) and referencing the conference ID
#6915241, or by visiting the MortgageIT Holdings corporate website,
http://www.mortgageitholdings.com/, to listen to a live conference
call webcast. A replay of the conference call will be available
through Tuesday, March 14, 2006, at midnight ET. The replay can be
accessed by dialing 877-519-4471 (U.S.) or 973-341-3080
(International). The pass code for the replay is 6915241. An
archived replay of the webcast will also be available on the
Company's corporate website. About MortgageIT Holdings, Inc.
MortgageIT Holdings, Inc. (NYSE:MHL) is a self-administered
mortgage real estate investment trust ("REIT") focused on the
residential lending market. The Company self-originates its
investment portfolio of high quality adjustable rate mortgage
("ARM") loans through MortgageIT, Inc., its wholly owned
residential mortgage banking subsidiary. MortgageIT, Inc. is a
full- service residential mortgage banking company that is licensed
to originate loans throughout the United States. MortgageIT
Holdings is organized and conducts its operations to qualify as a
REIT for federal income tax purposes. MortgageIT is organized and
operates as MortgageIT Holdings' taxable REIT subsidiary. For more
information, please visit http://www.mortgageitholdings.com/.
Forward-Looking Statements In this press release, 2005 results are
unaudited. Also, this press release contains certain
"forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that relate to future, not past, events.
In this context, forward-looking statements often address the
Company's expected future business and financial performance, and
often contain words such as "expects," "anticipates," "intends,"
"plans," "believes," "will" or other similar words or expressions.
Forward-looking statements, by their nature, address matters that
are, to different degrees, uncertain and include, among other
things, statements relating to the Company's ability to fund a
fully- leveraged, self-originated loan portfolio, its anticipated
loan funding volume and the Company's ability to pay dividends.
These statements are based on the current economic environment and
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. Forward-looking statements are inherently subject to
significant economic, competitive, and other contingencies that are
beyond the control of management. The Company can give no assurance
that its expectations will be attained. Factors that could cause
actual results to differ materially from the Company's expectations
include, but are not limited to, MortgageIT's continued ability to
originate new loans, including loans that we deem suitable for our
securitization portfolio; changes in the capital markets, including
changes in interest rates and/or credit spreads; and other risks
detailed in the Company's Annual Report on Form 10-K that was filed
with the Securities and Exchange Commission ("SEC") on March 31,
2005 and from time to time in the Company's other SEC reports. Such
forward-looking statements speak only as of the date of this press
release. The Company expressly disclaims any obligation to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based. MortgageIT Holdings
and Subsidiaries Consolidated Balance Sheets (Dollars in thousands)
December 31, December 31, 2005 2004 ASSETS Cash and cash
equivalents $36,757 $70,224 Restricted cash 712 1,679 Marketable
securities held to maturity 3,675 7,546 Portfolio ARM Loans ARM
loans collateralizing debt obligations, net 4,681,554 1,432,692 ARM
loans held for securitization, net 282 1,166,961 Total Portfolio
ARM Loans 4,681,836 2,599,653 Mortgage loans held for sale
3,378,197 784,592 Mortgage backed securities available for sale
23,357 -- Hedging Instruments 54,472 19,526 Receivables, net of
allowance 146,043 28,731 Prepaids and other current assets 31,262
11,693 Goodwill - IPI Merger 11,639 11,639 Property and equipment,
net 13,941 5,567 Total assets $8,381,891 $3,540,850 LIABILITIES AND
STOCKHOLDERS' EQUITY Collateralized debt obligations ("CDOs")
$4,485,197 $1,331,986 Warehouse lines payable 3,177,990 1,869,385
Repurchase agreements 87,058 67,674 Hedging Instruments 8,801 1,145
Trust Preferred Securities 77,324 -- Note Payable and other debt
15,000 15,000 Accounts payable, accrued expenses and other
liabilities 176,619 63,993 Total liabilities 8,027,989 3,349,183
STOCKHOLDERS' EQUITY (DEFICIT) Common stock 289 194 Treasury stock
(1,178) -- Additional paid-in capital 393,304 238,405 Unearned
compensation - restricted stock (5,889) (6,196) Other Comprehensive
Income 13,225 (387) Accumulated Deficit (45,849) (40,349) Total
stockholders' equity (deficit) 353,902 191,667 Total liabilities
and stockholders' equity $8,381,891 $3,540,850 Consolidated Income
Statement of Operations (Unaudited) (Dollars and shares in
thousands, except per share data) Three Months Ended Year Ended
December 31, December 31, 2005 2004 2005 2004 Revenues: Gain on
Sale of Mortgage Loans $59,813 $20,763 $200,517 $70,397 Brokerage
revenues 7,886 6,739 28,065 36,283 Interest income 113,770 32,934
325,806 60,346 Interest expense (100,282) (17,533) (256,764)
(29,459) Net Interest Income 13,488 15,401 69,042 30,887 Realized
(loss) gain on hedging instruments (70) 2,004 9,672 (7,852) Other
247 294 962 566 Total revenues 81,364 45,201 308,258 130,281
Operating expenses: Compensation and employee benefits 36,095
25,155 135,146 82,077 Processing expenses 21,161 7,651 61,225
24,603 General and administrative expenses 7,758 4,707 26,875
12,321 Rent 3,357 2,008 10,614 7,670 Marketing, loan acquisition
and business 1,281 1,076 4,407 4,203 development Professional fees
3,377 1,659 10,615 3,510 Depreciation and amortization 1,739 770
4,360 2,726 Total operating expenses 74,768 43,026 253,242 137,110
Income (loss) before income taxes 6,596 2,175 55,016 (6,829) Income
(Benefit) taxes (938) 413 14,669 1,617 Net Income (loss) 7,534
1,762 40,347 (8,446) Dividends on convertible redeemable preferred
stock, accrued and unpaid -- -- -- 3,947 Net income (loss)
attributable to common stockholders $7,534 $1,762 $40,347 ($12,393)
Earnings per Share: Basic $0.27 $0.09 $1.69 ($1.46) Diluted $0.26
$0.09 $1.66 ($1.46) Number of Shares: Basic 28,354 19,405 23,887
8,517 Diluted 28,432 19,760 24,258 8,517 Segment Financial Results
for the Fourth Quarter of 2005 ($ thousands - except EPS) Mortgage
Banking Portfolio Consolidated Amount EPS Amount EPS Amount EPS
After tax (loss) earnings prior to elimination (696) (0.02) 9,020
0.31 8,324 0.29 Elimination (1) (3,075) (0.11) 2,285 0.08 (790)
(0.03) After tax (loss) earnings net of elimination (3,771) (0.13)
11,305 0.39 7,534 0.26 Adjustment for after tax impact relating to
FAS133 (2) 0 0.00 1,200 0.05 1,200 0.05 Adjusted (Loss)/Earnings
(3,771) (0.13) 12,505 0.44 8,734 0.31 Segment Financial Results for
the Year ended December 31, 2005 ($ thousands - except EPS)
Mortgage Banking Portfolio Consolidated Amount EPS Amount EPS
Amount EPS After tax (loss) earnings prior to elimination 19,999
0.82 34,492 1.42 54,491 2.24 Elimination (1) (20,973) (0.86) 6,829
0.28 (14,144) (0.58) After tax (loss) earnings net of elimination
(974) (0.04) 41,321 1.70 40,347 1.66 Adjustment for after tax
impact relating to FAS133 (2) (629) (0.03) (3,941) (0.16) (4,570)
(0.19) Adjusted (Loss)/Earnings (1,603) (0.07) 37,380 1.54 35,777
1.47 (1) Eliminates the economic impact of inter-company loan sales
from the mortgage bank to the portfolio. (2) Adjusts previous gains
and losses on derivative hedges reported by the Company (as a
result of not qualifying under FAS 133) and the corresponding
amortization associated with those gains and losses. Operating
Statistics Table Quarter Ended 2005 March 31 June 30 Sept 30 Dec 31
Mortgage Banking Metrics Loan volume ($ millions) $4,340 $6,389
$9,249 $9,244 % Purchase 51% 56% 48% 47% % Refinance 49% 44% 52%
53% % Funded in MortgageIT name (banked) 92% 93% 95% 96% Held for
sale warehouse balance (avg) ($ millions) $1,500 $2,139 $3,655
$4,828 Warehouse weighted average coupon 6.33% 5.87% 5.24% 5.59%
Warehouse borrowing cost 3.33% 3.74% 4.36% 4.95% Warehouse net
interest margin 3.00% 2.13% 0.88% 0.64% Number of production
branches 51 53 58 54 Gain on sale on total loans sold to third
parties (bps) 105 114 93 71 Gain on sale prime loans sold to third
parties (bps) 97 93 80 70 Gain on sale sub-prime loans sold to
third parties (bps) 186 227 175 75 Gain on sale on loans
transferred to portfolio (bps) 87 70 78 66 Margin on loans brokered
(bps) 133 116 128 122 Loan Portfolio Metrics Average loan assets in
portfolio ($ millions) $2,786 $3,404 $4,197 $4,804 Weighted average
coupon of loans 5.12% 5.17% 5.37% 5.41% Scheduled loan basis
amortization 0.21% 0.22% 0.28% 0.26% Incremental loan basis
amortization due to higher prepayment rates --% 0.05% 0.08% 0.00%
Net weighted average coupon 4.91% 4.90% 5.01% 5.15% Interest
expense (net of hedging) 3.07% 3.62% 3.93% 4.19% FAS133 adjustment
--% -0.17% -0.14% -0.10% Adjusted net interest margin 1.84% 1.45%
1.22% 1.05% General and administrative (includes servicing expense)
0.41% 0.44% 0.34% 0.07% Credit provision 0.09% 0.09% 0.09% 0.09%
Adjusted loan portfolio return on assets 1.34% 0.92% 0.79% 0.90%
Adjusted loan portfolio return on assets prior to increased
prepayments 1.34% 0.97% 0.87% 0.90% Credit Reserve for HFI
Portfolio Credit reserve balance 0.05% 0.06% 0.07% 0.09% 60 to 89
days past due 0.06% 0.11% 0.26% 0.26% Over 90 days past due --% --%
0.04% 0.12% Foreclosure 0.04% 0.17% 0.13% 0.09% Total past due and
foreclosure 0.10% 0.28% 0.43% 0.47% DATASOURCE: MortgageIT
Holdings, Inc. CONTACT: Investors, Sean McGrath of MortgageIT
Holdings, Inc., +1-212-651-4637; or Media, Joe LoBello of Brainerd
Communicators, Inc., +1-212-986-6667 Web site:
http://www.mortgageitholdings.com/
Copyright
Mortgagit (NYSE:MHL)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Mortgagit (NYSE:MHL)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024