Market Overview

CENTERLINE HOLDING COMPANY REPORTS THIRD QUARTER 2012 FINANCIAL RESULTS


AT THE COMPANY
Denise Bernstein, Investor Relations
(800) 831-4826

CENTERLINE HOLDING COMPANY REPORTS
THIRD QUARTER 2012 FINANCIAL RESULTS

New York, NY - November 19,  2012 - Centerline Holding Company (OTC: CLNH) ("Centerline" or the "Company"), the parent company of Centerline Capital Group, a provider of real estate financing and asset management services to the affordable and conventional multifamily housing industry, today announced financial results for the third quarter and nine months ended September 30, 2012.

The tables below present Centerline's Condensed Consolidated Balance Sheets as of September 30, 2012, and December 31, 2011; and the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2011. For more detailed financial information, including certain non-GAAP financial measures, please access the Financial Overview Presentation available in the "Investor Relations" section of the Company's website at www.centerline.com.

About the Company

Centerline Capital Group, a subsidiary of Centerline Holding Company (OTC: CLNH), provides real estate financing and asset management services for affordable and conventional multifamily housing. The Company offers a range of both debt financing and equity investment products as well as asset management services to developers, owners, and investors.  Founded in 1972, Centerline is headquartered in New York, New York and has several offices throughout the United States.  For more information, please visit Centerline's website at www.centerline.com or contact the Investor Relations Department at 1-800-831-4826.

CENTERLINE HOLDING COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2012  2011 
(Unaudited)
Assets:
Cash and cash equivalents $  95,334  $  95,992 
Restricted cash  17,233   16,185 
Investments:
Available-for-sale  401,018   394,355 
Equity method  13,026   8,794 
Mortgage loans held for sale and other assets  187,725   190,192 
Investments in and loans to affiliates, net  4,313   5,641 
Intangible assets, net  8,333   8,784 
Mortgage servicing rights, net  84,332   72,520 
Deferred costs and other assets, net  52,265   75,791 
Consolidated partnerships:
Equity method investments  2,773,437   3,079,803 
Land, buildings and improvements, net  415,742   460,804 
Other assets  243,521   264,437 
Total assets $  4,296,279  $  4,673,298 
Liabilities:
Notes payable and other borrowings $  327,922  $  322,849 
Secured financing  520,096   618,163 
Accounts payable, accrued expenses and other liabilities  184,946   187,230 
Preferred shares of subsidiary (subject to mandatory repurchase)  55,000   55,000 
Redeemable securities  6,000   - 
Consolidated partnerships:
Notes payable  161,792   156,643 
Due to tax credit property partnerships  82,913   132,246 
Other liabilities  449,045   319,256 
Total liabilities  1,787,714   1,791,387 
Redeemable securities  -   6,000 
Commitments and contingencies
Equity:
Centerline Holding Company total  221,594   210,751 
Non-controlling interests  2,286,971   2,665,160 
Total equity  2,508,565   2,875,911 
Total liabilities and equity $  4,296,279  $  4,673,298 



CENTERLINE HOLDING COMPANY   
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS   
 (in thousands, except per share amounts)   
 (Unaudited)   
              
   Three Months Ended    Nine Months Ended   
   September 30,    September 30,   
   2012     2011     2012     2011    
 Revenues:            
   Interest income $  11,072     $  9,955     $  33,973     $ 30,048    
   Fee income  9,757      8,379      28,966      24,938    
   Gain on sale of mortgage loans  15,361      7,398      36,743      20,869    
   Other    673      393      3,012      1,962    
   Consolidated partnerships              
   Interest income, net  312      255      (701)     940    
   Rental income  26,170      26,022      81,754      77,719    
   Other  327      262      537      1,352    
   Total revenues  63,672      52,664      184,284      157,828    
              
 Expenses:            
   General and administrative    23,467      25,981     77,380    71,873   
   Provision for (recovery of) losses    14,738      (39,644)    20,502     (48,305)   
   Interest    14,007     21,599      44,192      51,173    
   Interest - distributions to preferred shareholders of subsidiary    960      960      2,880      2,880    
   Depreciation and amortization  3,696      3,712      11,948      10,966    
   Consolidated partnerships              
   Interest  6,630      4,919      16,152      13,584    
   Loss on impairment of assets  -       -       678      60,349    
   Other expenses  95,291      45,603      203,361      163,937    
   Total expenses  158,789      63,130      377,093      326,457    
              
 Loss before other (loss) income  (95,117)     (10,466)     (192,809)     (168,629)   
              
 Other (loss) income:            
   Equity and other income, net  55      -     113      -    
   Gain on settlement of liabilities   493      -      493      4,368    
   Gain from repayment or sale of investments  598      132      1,419      1,456    
   Other losses from consolidated partnerships    (56,684)     (53,798)     (277,403)     (237,834)   
              
 Loss from continuing operations before income tax provision  (150,655)     (64,132)     (468,187)     (400,639)   
 Income tax benefit (provision)  - continuing operations  652     87      505      (93)   
              
 Net loss from continuing operations  (150,003)     (64,045)     (467,682)     (400,732)   
              
 Discontinued operations:              
 Net income from discontinued operations  -      -      -      253    
              
 Net loss  (150,003)     (64,045)     (467,682)     (400,479)   
              
 Net loss attributable to non-controlling interests    144,240      87,860      454,578      434,738    
              
 Net (loss) income attributable to Centerline Holding Company shareholders   $ (5,763)     $ 23,815     $  (13,104)    $  34,259    
              
 Net (loss) income per share              
   Basic and Diluted            
   (Loss) income from continuing operations $ ( 0.02)     $  0.07     $  (0.04)    $  0.10    
   (Loss) income from discontinued operations $  -     $  -     $  -     $  -    (1)
              
 Weighted average shares outstanding              
   Basic and Diluted  349,166      349,166      349,166      348,995    
              
(1) Amount calculates to zero when rounded.     

###

Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.  Other risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our potential inability to raise capital or access financing on acceptable terms, or at all, or to repay or restructure or our existing indebtedness; being required to redeem our outstanding redeemable securities; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; our dependence on our advisor and the services of our executive officers and other employees; changes in our business policies; possible adverse effects from potential future issuances of securities or a reverse stock split;  significant voting power held by certain shareholders; potential liabilities to shareholders resulting from our operation as a Delaware statutory trust; our ability to remain exempt from the provisions of the Investment Company Act of 1940, as amended; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation.  Words such as "anticipates", "expects", "intends", "plans, "believes" "seeks", "estimates" and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements speak only as of the date of this document.  Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.







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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE

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