AMRESCO, INC. Reports Second Quarter Earnings
DALLAS, July 20 /PRNewswire/ -- AMRESCO, INC. (Nasdaq: AMMB) reported net
income of $12.1 million for the quarter ended June 30, 1999, an 18 percent
increase from the first quarter of 1999. Diluted earnings per share was
$0.20, a five percent decrease from the first quarter.
Second quarter profits were driven by the gain from a very successful
$221 million small business loan securitization and strong performance by the
asset management and commercial mortgage banking businesses. The profits from
AMRESCO's commercial businesses were partially offset by losses incurred by
its residential lending businesses. Its home equity business was impacted by
reduced origination volumes and a $9.2 million write-down in residuals due to
increased prepayment speeds, primarily due to reset periods. Within Mortgage
Investors Corporation, increasing interest rates, changes to VA refinancing
requirements and increased discounts on the sale of VA loans negatively
impacted residential volumes and profits for the quarter.
"The company is in the process of reviewing various strategic alternatives
with the goals of ensuring continued improvement in its businesses,
strengthening of the balance sheet and maximization of shareholder value,"
says Robert H. Lutz, Jr., chairman and CEO of AMRESCO. "As part of this
process, one party is currently conducting due diligence with respect to the
possible acquisition of AMRESCO. However, we cannot give any assurances that
this due diligence will result in a sale of the company." |
