New York Mortgage Trust Announces Completion Of Net Deferred Tax Asset Evaluation And Files Quarterly Report
NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- New York Mortgage Trust, Inc. (the "Company" or "NYMT")(OTC BB: NMTR), a self-advised real estate investment trust (REIT) engaged in the investment in and management of high credit quality residential adjustable rate mortgage (ARM) loans and mortgage-backed securities (MBS), today reported that it completed its previously announced evaluation of its net deferred tax asset ("DTA"). As of September 30, 2007, the Company has determined that based on the cumulative losses from its discontinued operation in its taxable REIT subsidiary, combined with uncertainty as to the timing of when it would be able to generate the necessary earnings to recover its DTA, a full valuation allowance is required. The attached consolidated balance sheets and statements of operations reflect a full valuation allowance of $18.4 million, or $5.05 per share, for the DTA. These financial statements update and replace the financial statements included in the Company's quarterly earning's release, dated November 6, 2007. The DTA is a non-cash asset as it reflects a net loss carry-forward from the Company's discontinued mortgage lending operations. This valuation allowance does not impact the Company's ability to use the DTA to offset taxable income the Company may earn in future periods.
About New York Mortgage Trust
New York Mortgage Trust, Inc., a self-advised real estate investment trust (REIT) engaged in the investment in and management of high credit quality residential adjustable rate mortgage (ARM) loans and mortgage-backed securities (MBS). As of March 31, 2007, the Company exited the mortgage lending business. The Company's portfolio is comprised of securitized, high credit quality, adjustable and hybrid ARM loans, and purchased MBS. Historically at least 98% of the portfolio has been rated "AA" or "AAA". As a REIT, the Company is not subject to federal income tax provided that it distributes at least 90% of its REIT income to stockholders.
Certain statements contained in this press release may be deemed to be forward-looking statements that predict or describe future events or trends. The matters described in these forward-looking statements are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company faces many risks that could cause its actual performance to differ materially from the results predicted by its forward-looking statements, including, without limitation, that a rise in interest rates may cause a decline in the market value of the Company's assets, prepayment rates that may change, borrowings to finance the purchase of assets may not be available or may not be available on favorable terms, the Company may not be able to maintain its qualification as a REIT for federal tax purposes, the Company may experience the risks associated with investing in mortgage loans, including changes in loan delinquencies, and the Company's hedging strategies may not be effective. The reports that the Company files with the Securities and Exchange Commission contain a fuller description of these and many other risks to which the Company is subject. Because of those risks, the Company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward- looking statements. The information set forth in this news release represents management's current expectations and intentions. The Company assumes no responsibility to issue updates to the forward-looking matters discussed in this press release.
FINANCIAL TABLES FOLLOW
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
REVENUE:
Interest income investment
securities and loans held
in securitization trusts $12,376 $16,998 $38,987 $50,050
Interest expense investment
securities and loans held
in securitization trusts 11,212 15,882 36,188 42,320
Net interest income from
investment securities and
loans held in securitization
trusts 1,164 1,116 2,799 7,730
Interest expense -
subordinated debentures 895 877 2,671 2,656
Net interest income 269 239 128 5,074
OTHER EXPENSE:
Realized (loss)/gain on sale of
investment securities (1,013) 440 (4,834) (529)
Loan loss reserve on loans held
in securitization trusts (99) -- (1,039) --
Total other (expenses)/income (1,112) 440 (5,873) (529)
EXPENSES:
Salaries and benefits 178 166 674 618
Marketing and promotion 37 20 99 54
Data processing and communications 50 58 143 177
Professional fees 266 82 471 447
Depreciation and amortization 93 131 242 398
Allowance for deferred tax asset 18,352 -- 18,352 --
Other 222 (46) 393 177
Total expenses 19,198 411 20,374 1,871
(LOSS) INCOME FROM CONTINUING
OPERATIONS (20,041) 268 (26,119) 2,674
Loss from discontinued operation -
net of tax (675) (4,136) (13,534) (8,160)
NET LOSS $(20,716) $(3,868) $(39,653) $(5,486)
Basic an diluted loss per share $(5.70) $(1.07) $(10.94) $(1.53)
Weighted average shares
outstanding- basic and diluted 3,636 3,605 3,625 3,595
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
September 30, December 31,
2007 2006
(unaudited)
ASSETS
Cash and cash equivalents $11,144 $969
Restricted cash 6,030 3,151
Investment securities - available for sale 359,872 488,962
Accounts and accrued interest receivable 4,915 5,189
Mortgage loans held in securitization trusts 458,968 588,160
Prepaid and other assets 2,411 20,951
Derivative assets 977 2,632
Property and equipment (net) 76 89
Assets related to discontinued operation 9,883 212,805
Total Assets $854,276 $1,322,908
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Financing arrangements, portfolio investments $327,877 $815,313
Collateralized debt obligations 444,204 197,447
Derivative liabilities 1,601 --
Accounts payable and accrued expenses 5,003 5,871
Subordinated debentures 45,000 45,000
Liabilities related to discontinued operation 5,600 187,705
Total liabilities $829,285 $1,251,336
Commitments and Contingencies
Stockholders' Equity:
Common stock, $0.01 par value,
400,000,000 shares authorized, 3,635,854
shares issued and outstanding at
September 30, 2007 and 3,665,037 shares
issued and 3,615,576 outstanding at
December 31, 2006 36 37
Additional paid-in capital 99,277 99,655
Accumulated other comprehensive loss (10,930) (4,381)
Accumulated deficit (63,392) (23,739)
Total stockholders' equity 24,991 71,572
Total Liabilities and Stockholders' Equity $854,276 $1,322,908
SOURCE New York Mortgage Trust, Inc.
CONTACT: Steven R. Mumma, Co-CEO, President, Chief Financial Officer,
+1-212-792-0107, [email protected]; Financial Relations Board:
Joe Calabrese, General, +1-212-827-3772, Julie Tu, Analysts, +1-212-827-3776/