Annaly Increases Per Share Earnings by 115% and Book Value by 37% From the Prior Year
NEW YORK--(BUSINESS WIRE)--Oct. 23, 2001--Annaly Mortgage Management, Inc. (NYSE: NLY) (the "Company") today reported earnings for the quarter ended September 30, 2001 of $26,345,168 or $0.58 per average share outstanding, as compared to $3,806,097, or $0.27 per average share outstanding for the quarter ended September 30, 2000, which equates to a 115% increase in earnings per share.
Net income per share for the quarter ended September 30, 2001 increased by 21% over the prior quarter net income of $0.48 per average share outstanding.
Weighted average shares outstanding were 45,503,179 and 14,238,680 for the quarters ended September 30, 2001 and 2000, respectively. As previously reported, the Company completed an offering of common stock during the third quarter of 2001 issuing 14,991,600 shares, with aggregate net proceeds of $179.6 million. The total capital raised during the nine months ended September 30, 2001 was $474.2 million.
For the quarter ended September 30, 2001, the yield on average earnings assets was 5.76% and the cost of funds on the average repurchase balance was 3.89%. For the quarter ended September 30, 2000, the yield on average assets was 7.10% and the cost of funds on the average repurchase balance was 6.71%. The interest rate spread increased to 1.87% for the quarter ended September 30, 2001 from 0.39% for the quarter ended September 30, 2000. The interest rate spread this quarter increased by 27 basis points over the second quarter of 2001, which was 1.60%. For the quarter ended September 30, 2001, the Company's gain on sale of assets was $1,184,399, as compared to the prior year of $872,949. General and administrative expenses, as a percent of average assets was 0.13% for the quarters ended September 30, 2001 and 2000. Leverage at quarter end September 30, 2001 was 8.1:1, in comparison to 12.9:1 at September 30, 2000.
The Company was able to provide a return on average equity of 23.26% for the quarter ended September 30, 2001. Dividends declared for the quarter were $0.45 per share. The dividend yield for the quarter, based on the September 28, 2001 closing price of $14.45, was 12.46%. This dividend was paid on all shares, including the 14,991,600 shares issued on September 26, 2001. Even without the use of the additional $179.6 million in capital for the entire quarter, the Company was able to provide a dividend yield of 12.46%.
At September 30, 2001, the Company had a book value of $11.41, which was a 37% increase from the September 30, 2000 book value of $8.30. The book value increased by 13% from the June 30, 2001 book value of $10.07. The Company classifies all investment securities as "available for sale;" therefore requiring the Company to record the entire portfolio at market value. Fixed rate mortgage-backed securities comprised approximately 24% of the Company's portfolio at September 30, 2001. The balance of the portfolio was comprised of 57% adjustable rate mortgages and 19% LIBOR floating rate collateralized mortgage obligations. The Company has continued to avoid the introduction of credit risk to its portfolio. As of September 30, 2001, all of the assets in the Company's portfolio were FNMA, GNMA or FHLMC securities, which carry an implied "AAA" rating. As of September 30, 2001, all assets in the portfolio were REIT eligible assets.
The Company is a Maryland corporation which owns and manages a portfolio of mortgage-backed securities. The Company's principal business objective is to generate net income for distribution to stockholders from the spread between the interest income on its mortgage-backed securities and the costs of borrowing to finance its acquisition of mortgage-backed securities. The Company has elected to be taxed as a real estate investment trust ("REIT") and currently has 59,762,511 shares of common stock outstanding.
The Company will hold the quarterly earnings conference call Tuesday October 23, 2001 at 2:00 p.m. EST. The number to call is 1-800-360-9865. The re-play number is 1-800-428-6051 and the pass code is 214291. If you would like to be added to the e-mail distribution list, please e-mail rlyght@annaly.com. |
