Market Overview

Altisource Asset Management Corporation Reports Third Quarter 2019 Results

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CHRISTIANSTED, U.S. Virgin Islands, Nov. 06, 2019 (GLOBE NEWSWIRE) -- Altisource Asset Management Corporation ("AAMC" or the "Company") (NYSE:AAMC) today announced financial and operating results for the third quarter of 2019.

Third Quarter 2019 Highlights and Recent Developments

  • Increased Front Yard Residential Corporation's ("Front Yard") rental revenues by 5% to $50.8 million compared to the third quarter of 2018.
  • Managed Front Yard's sale of 126 non-core homes for proceeds of $22.6 million and a $2.1 million gain over carrying value.
  • Negotiated the settlement of the last remaining significant litigation outstanding against Front Yard for $10 million after insurance proceeds.

"During the quarter we made substantial progress in addressing Front Yard's operational challenges arising from the internalization of property management," stated George Ellison, Chief Executive Officer. "While this impacted Front Yard's results in the third quarter, we are seeing improved metrics in October that we expect will drive stronger results in the fourth quarter."

Third Quarter 2019 Financial Results

AAMC's net loss attributable to common stockholders for the third quarter of 2019 was $3.6 million, or $2.25 per diluted common share, which included a $(1.1) million change in the fair value of its shares of Front Yard common stock, compared to a net loss of $1.2 million, or $0.75 per diluted common share, which included a $0.7 million change in the fair value of its shares of Front Yard common stock, for the third quarter of 2018.

AAMC's net loss attributable to common stockholders for the nine months ended September 30, 2019 was $1.2 million, or $0.77 per diluted common share, which included a $4.6 million change in the fair value of its shares of Front Yard common stock, compared to a net loss attributable to common stockholders of $6.7 million, or $4.19 per diluted common share, which included a $(1.6) million change in the fair value of its shares of Front Yard common stock, for the nine months ended September 30, 2018.

About AAMC

AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles. Additional information is available at www.altisourceamc.com.

Forward-looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical fact, including statements about management's beliefs and expectations. Forward-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: AAMC's ability to implement its business plan; AAMC's ability to leverage strategic relationships on an efficient and cost-effective basis; AAMC's and Front Yard's ability to compete; Front Yard's ability to implement its business plan; general economic and market conditions; governmental regulations, taxes and policies; AAMC's ability to generate adequate and timely sources of liquidity and financing for itself or Front Yard; Front Yard's ability to sell non-core assets on favorable terms or at all; AAMC's ability to identify and acquire assets for Front Yard's portfolio; Front Yard's ability to complete potential transactions in accordance with anticipated terms and on a timely basis or at all; AAMC's ability to integrate newly acquired rental assets into Front Yard's portfolio; the ability to effectively manage the performance of Front Yard's internal property manager at the level and/or the cost that it anticipates; the failure of third party vendors to effectively perform their obligations under their respective agreements with AAMC or Front Yard; the effects of potential redemptions of our Series A Preferred Stock commencing in March 2020, including our ability to pay with funds legally available therefor or renegotiate the terms thereof; our failure to maintain Front Yard's qualification as a REIT; 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 Securities and Exchange Commission. The foregoing list of factors should not be construed as exhaustive.
 
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.



Altisource Asset Management Corporation
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)

  Three months ended
September 30,
  Nine months ended
September 30,
  2019   2018   2019   2018
Revenues:              
Management fees from Front Yard $ 3,584     $ 3,613     $ 10,686     $ 10,984  
Conversion fees from Front Yard     35     29     151  
Expense reimbursements from Front Yard 250     286     920     767  
Total revenues 3,834     3,934     11,635     11,902  
Expenses:              
Salaries and employee benefits 4,219     4,605     12,875     13,343  
Legal and professional fees 389     474     2,087     1,293  
General and administrative 1,099     993     3,018     2,783  
Total expenses 5,707     6,072     17,980     17,419  
Other income (loss):              
Change in fair value of Front Yard common stock (1,072 )   698     4,597     (1,641 )
Dividend income on Front Yard common stock 244     244     731     731  
Other income 63     58     116     150  
Total other (loss) income (765 )   1,000     5,444     (760 )
Loss before income taxes (2,638 )   (1,138 )   (901 )   (6,277 )
Income tax expense 885     17     173     309  
Net loss attributable to stockholders (3,523 )   (1,155 )   (1,074 )   (6,586 )
Amortization of preferred stock issuance costs (52 )   (52 )   (155 )   (155 )
Net loss attributable to common stockholders $ (3,575 )   $ (1,207
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