CRIIMI MAE Reports First Quarter Results
ROCKVILLE, Md., May 15 /PRNewswire/ -- After emerging from reorganization under Chapter 11 on April 17, 2001, CRIIMI MAE Inc. (NYSE: CMM) today reported results for the quarter ended March 31, 2001.
Net income available to common shareholders under generally accepted accounting principles (GAAP) was approximately $3.9 million, or $0.05 per basic share and $0.04 per diluted share, compared to approximately $4.0 million, or $0.07 per basic share and $0.06 per diluted share, for the first quarter of 2000.
As of March 31, 2001, shareholders' equity was approximately $285 million ($1.87 per diluted share) as compared to approximately $268 million ($1.70 per diluted share) as of December 31, 2000.
Net income available to common shareholders did not change significantly as compared to the first quarter of 2000. Net interest margin was approximately $10.0 million for the quarter ended March 31, 2001 as compared to approximately $18.2 million for the same quarter last year. This decrease in net interest margin is primarily the result of the sale of certain commercial mortgage-backed securities (CMBS) during 2000 in connection with the Company's reorganization plan. Partially offsetting the decrease in net interest margin is a reduction in reorganization expenses.
CRIIMI MAE has 104,682,504 common shares outstanding as of May 15, 2001. As of December 31, 2000, the Company had 62,353,170 common shares outstanding.
The table that follows this news release identifies other items that contributed to GAAP earnings for the first quarter of 2001.
For the quarter ended March 31, 2001, the Company estimated its tax net operating loss (NOL) at approximately $17 million or 17 cents per share. This quarter's NOL includes approximately $50 million of net loss carried forward from the year 2000. The first quarter's $17 million of NOL compares with approximately $14 million, or 22 cents per share, of NOL for the first quarter of 2000.
The Company initially marked-to-market its trading assets on January 1, 2000, resulting in a loss for tax purposes of approximately $478 million (the "January 2000 Loss"). The Company recognized $120 million of the $478 million January 2000 Loss in 2000, and expects to recognize $120 million per year over the next three years, including $30 million in each quarter of this year.
Because CRIIMI MAE incurred a net operating loss for tax purposes for the first quarter of 2001, the Company was not required to pay dividends to common shareholders for the period, and does not anticipate paying dividends to common shareholders for the foreseeable future.
At March 31, 2001, the Company's assets totaled approximately $1.6 billion and it performed mortgage servicing for a mortgage portfolio of over $20 billion. |
