AMRESCO, INC. Announces Second Quarter Results
DALLAS, Aug. 2 /PRNewswire/ -- AMRESCO, INC. (Nasdaq: AMMB) reported a net
loss of approximately $93.6 million for the quarter ended June 30, 2000, or
($1.93) per basic and diluted share. Operating results for the quarter were
reduced by, among other items; (i) $70.0 million in write-downs on home equity
retained interests, (ii) $9.6 million in losses on the sale of home equity
subordinate bonds, (iii) $3.6 million in losses from the home equity segment,
(iv) $4.4 million in losses from the residential mortgage banking segment, (v)
$10.3 million in impairment losses associated with certain CMBS assets and the
sale of AMCT stock, and (v) $5.4 million in loan loss provisions on real
estate structured finance loans. These losses were offset in part by
$10.4 million in gains associated with the prior sale of certain assets and
operations to Lend Lease (US) Services, Inc.
For the six month period ended June 30, 2000, the Company reported a net
loss of approximately $91.6 million, or ($1.89) per basic and diluted share.
Operating results for the six months were reduced by, among other items; (i)
$70.0 million in write-downs on home equity retained interests, (ii)
$9.6 million in losses on the sale of home equity subordinate bonds, (iii)
$11.2 million in losses from the home equity segment, (iv) $15.0 million in
losses from the residential mortgage banking segment, and (v) $30.2 million in
sale, impairment and provision losses associated with various assets. These
losses were offset in part by $58.1 million in gains associated with the sale
of certain assets and operations to Lend Lease (US) Services, Inc.
For the quarter ended June 30, 2000, the commercial finance division,
AMRESCO's primary on-going operating segment, generated approximately
$4.7 million in pre-tax operating income (before approximately $5.4 million in
loan loss provisions on real estate structured finance loans), on $27.6
million in revenues. Results of operations for the comparable period in 1999
reflected pre-tax operating income of $32.9 million on $58.0 million in
revenues. The reduction in operating income and revenues are primarily a
result of (i) reduced interest income due to the disposition of substantially
all of the Company's communications and real estate structured finance loan
portfolios and (ii) timing differences in the Company's execution of its
commercial finance securitizations. During the quarter ended June 30, 1999
the Company securitized approximately $220.9 million in loans while no
securitizations were executed during the same period in 2000. On August 1,
2000, the Company completed a $210 million franchise and small business loan
securitization, including $22 million of prefunded loans.
As of June 30, 2000, AMRESCO held approximately $730 million in earning
assets in the commercial finance segment as well as $315 million in other
earning assets, primarily composed of real estate and loan portfolios, CMBS
bonds, home equity retained interests and receivables on asset sales.
As of June 30, 2000, the Company had reduced the outstanding balance on
the senior revolver credit facility to approximately $33.2 million. As of
that date the commitment amount on the facility was $42.9 million. Subsequent
to quarter end, the maturity date of the senior facility was extended to
August 18, 2000.
Bob Lutz, the Company President and Chief Executive Officer, stated, "The
Company continues to execute on its transition plan. We have made substantial
progress in reducing head count and deleveraging our balance sheet. We will
continue to work with our financial advisors to strategically position the
remaining business units to maximize shareholder value." |
