Sell with 20% gain. I'm doing that with ALL my investments.
I'm in at .41. Any recommendations for a sell price?
Alesco Financial Inc. and Cohen & Company Agree to Merge
Date : 02/20/2009 @ 6:13PM
Source : PR Newswire
Stock : Alesco Financial (AFN)
Quote : 0.6 0.009 (1.52%) @ 8:00PM
Alesco Financial Inc. and Cohen & Company Agree to Merge
Transaction Expected to be Accretive to AFN Shareholders Who are Expected to Benefit from Significant Cost Savings, Diversified Revenue and Fee Income Streams
PHILADELPHIA, Feb. 20 /PRNewswire-FirstCall/ -- Alesco Financial Inc. (NYSE:AFN), a specialty finance real estate investment trust externally managed by Cohen & Company, a privately-held investment firm specializing in credit related fixed income investments, today announced the signing of a definitive merger agreement between the two companies.
AFN's Board of Directors and Cohen & Company's Board of Managers have each unanimously approved the transaction. Cohen & Company will merge with a wholly-owned subsidiary of AFN and will survive the merger as a subsidiary of AFN. In the merger, members of Cohen & Company will have the option to exchange each of their membership units in Cohen & Company for either shares of common stock of AFN, or replacement units of membership interest in Cohen & Company which may be exchanged into shares of AFN in the future. Holders of common stock of AFN will continue to hold their shares of AFN. AFN will continue to be a publicly traded entity and is expected to operate as a C-Corp for tax purposes. Pursuant to the merger agreement, AFN will complete a 1 for 10 reverse split of its common stock. It is currently expected that former shareholders of AFN will own 62.4% of the shares of AFN's common stock immediately after the merger and former unit holders of Cohen & Company will hold the balance; however, the actual percentages will not be known until members of Cohen & Company have made their elections to receive AFN common stock or replacement units of Cohen & Company. If all Cohen & Company membership interests were to be converted into AFN shares, current AFN shareholders would own 38.5%, and former Cohen & Company members would own 61.5%, of the combined company. Cohen & Company will be treated as the acquirer for accounting purposes.
The terms of the merger agreement include a "Go Shop" provision for AFN to pursue superior merger or other strategic opportunities for a period of 40 days from the date of the execution of the merger agreement. The Special Committee of the Board of Directors of AFN has instructed its investment banker, Stifel, Nicolaus & Company, Incorporated, to assist the Special Committee in evaluating any potentially superior opportunities.
Upon the closing of the transaction, Daniel Cohen, Chairman of Cohen & Company, will retain the role of Chairman and assume the role of Chief Executive Officer of AFN. Christopher Ricciardi, Chief Executive Officer of Cohen & Company, will serve as President of AFN and Chief Executive Officer of the combined company's Capital Markets business. Joseph Pooler, Chief Financial Officer of Cohen & Company, will become the Chief Financial Officer of AFN.
In the near term, the merger of the two companies is expected to provide the combined entity with enhanced financial resilience, synergies and economies of scale to better manage through current market conditions. The transaction is expected to be accretive to AFN shareholders. AFN's business model will shift from a capital investment company to an operating company with various types of revenue streams and positive cash flow from operations.
Over the medium to long term, the combination creates a platform specializing in credit related fixed income trading and management and a combined company with greater capital resources to pursue opportunistic initiatives in a distressed market, which may include potential acquisitions of other asset management and investment firms.
Daniel Cohen, Chairman of AFN and Cohen & Company, said, "This agreement is a critical milestone towards a transaction that we believe will preserve value for AFN shareholders in the near-term, while providing significant potential value enhancement opportunities over the medium to long term. The fixed income and structured credit markets continue to be faced with significant challenges and dislocation. For companies with deep industry expertise and financial resources, this dislocation creates multiple opportunities for: value creation through strategic investments and acquisitions at attractive valuations; providing credit fixed income trading services to institutional investors that are currently underserved in this space; recruiting and retaining the best and brightest in the industry; and originations and underwriting of debt issuances as required by clients."
Lance Ullom, Chairman of the Special Committee of the Board of Directors of AFN -- a group comprised solely of independent directors that negotiated the transaction on behalf of AFN and recommended it to the AFN Board of Directors -- said, "After an extensive review process undertaken in consultation with our independent financial and legal advisors, and following our examination of a broad range of strategic alternatives, the independent committee of AFN's Board has unanimously concluded that this transaction offers AFN shareholders the best route forward for both near-term value preservation and long run value creation. Through this transaction, AFN shareholders will transition from ownership of a passive investment entity with a portfolio of credit sensitive investments to being the owners of an operating company that we believe is positioned for future growth."
The merged company will generate diversified revenue and fee income streams through the following three operating segments:
-- Capital Markets -- This business consists of sales and trading, as well as origination, structuring, and placement of fixed income securities through Cohen & Company's broker dealer subsidiary, Cohen & Company Securities, LLC.
Additionally, this business provides corporate debt originations and new issue securitizations for a wide variety of corporate clients with a historical focus on the financial services industry.
-- Asset Management -- This business serves the needs of client investors by managing assets within a variety of investment vehicles, including investment funds, permanent capital vehicles, and collateralized debt obligations.
This business will also seek to generate fee income through strategic "roll up" acquisitions of credit fixed income contracts at attractive valuations and through the seeding and formation of additional investment vehicles.
-- Principal Investing -- This business is comprised primarily of AFN's investment portfolio and Cohen & Company's seed capital in certain investment vehicles and the related gains and losses that they generate.
The transaction, which is expected to close during the second half of 2009, is subject to a number of closing conditions, including the receipt of third party consents and other conditions set forth in the definitive agreement. In addition, the transaction is subject to approval by the affirmative vote of a majority of the votes cast by holders of AFN common stock, provided that the number of votes cast on the matter is over 50% of the votes entitled to be cast on the proposal. A meeting of AFN stockholders to consider and vote on the transaction is expected to be held in the second half of 2009.
The special committee of AFN's Board was provided a fairness opinion for the proposed transaction by Stifel, Nicolaus & Company, Incorporated, and Cooley Godward Kronish LLP served as its independent counsel. Clifford Chance US LLP served as AFN's legal advisor. WolfBlock LLP served as legal advisor to Cohen & Company.
AFN will host a listen-only conference call on Monday, February 23, at 10:00 a.m. Eastern Time. Interested parties can listen to the live webcast of our conference by clicking on the webcast link on AFN's Homepage at http://www.alescofinancial.com/. A presentation describing the transaction and the pro forma combined company will also be available on our homepage. The conference call may also be accessed by dialing 866-831-6272 or, for those calling from overseas, 617-213-8859 about 10 minutes in advance of the scheduled time. A replay of the conference call will be available for two weeks at 888-286-8010, pass code 38055071.
Additional Information About the Merger and Where to Find It
In connection with the proposed merger, AFN will file with the SEC a Registration Statement on Form S-4 which will include proxy statements of AFN and Cohen & Company and a prospectus of AFN. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement will be mailed to AFN's stockholders. In addition, stockholders will be able to obtain the proxy statement/prospectus and all other relevant documents filed by AFN with the SEC free of charge at the SEC's website http://www.sec.gov/ or from Alesco Financial Inc., Attn: Investor Relations, 2929 Arch Street, 17th Floor, Philadelphia, PA 19104.
Participants in the Solicitation
AFN's and Cohen & Company's directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of AFN in favor of the proposed merger.
Information about the directors and executive officers of AFN and their ownership of AFN stock is set forth in AFN's proxy statement filed with the SEC on April 29, 2008. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus for the proposed merger when it becomes available. Stockholders may obtain these documents from the SEC or AFN using the contact information above.
Information set forth in this release contains forward-looking statements, which involve a number of risks and uncertainties. AFN cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained or implied in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving AFN and Cohen & Company, including future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: factors that affect the timing or ability to complete the transactions contemplated herein; the ability of both companies to satisfy all necessary closing conditions, including obtaining a financing commitment; the risk that the business will not be integrated successfully; the risk that cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with lenders, other counterparties, or employees; competition and its effects on pricing, spending, third-party relationships and revenues; the failure of the companies to successfully execute their business plans, gain access to additional financing and the cost of capital. Additional factors that may affect future results are contained in AFN's filings with the SEC, which are available at the SEC's website http://www.sec.gov/.
All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referenced above. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We assume no obligation to update any forward-looking statements or other information in this press release.
About Cohen & Company
Cohen & Company is an investment firm specializing in credit related fixed income investments with approximately $23 billion in assets currently under management in credit securities and other funds and investments across multiple asset classes. Through Cohen & Company Securities, LLC, the company also provides institutional broker-dealer services focused on debt securities. With offices in Philadelphia, New York, Chicago, Los Angeles, Washington DC, Paris, London and Tokyo, Cohen & Company serves a diverse international network of institutional and individual clients. For more information about Cohen & Company, we encourage you to visit http://www.cohenandcompany.com/.
About Alesco Financial Inc.
Alesco Financial Inc. (NYSE:AFN) is a specialty finance real estate investment trust (REIT) that focuses on investments in Trust Preferred Securities (TruPS), Mortgage Backed Securities (MBS) and Corporate Loan Obligations (CLO). AFN is externally managed by Cohen & Company.
Alesco Financial Investor Relations John Longino Chief Financial Officer, Alesco Financial Inc.
It looked like the sector was due to turn negative early Monday morning...Guess cutting losses beats losing more when the sentiment turns against ya..LJ
Around 149,000 shares showed bidding at $1 on level 2 in the late afternoon after the 10Q was released...
Had not seen the top bid much above 2,000 to 3,000 on the bid side before that over the last few days...
The selling at $1 into the close at the bid looked to be lowering that bid amount...
Could this have been a large institution or the company buying shares?...
Have no idea if the same bid support will show up in the AM...Just an observation that aroused my curiousity...LJ
Only showing around 4,389,000 or so shares short in the last report in October on short positions for AFN...
Doesn't show up in the top percentage after-hour gainers list from Nasdaq.com for NYSE companies...
Where could it trade so late at 1.23?...Thought the cut-off for extended trading was an hour earlier than that shows...Have no idea myself...
.85 close was up a lot from Friday closing price...LJ
Only negative is that all 8 trups are kaput, but overall a good report considering the times. 78M in cash.
AH now at 1.23 .
Buying the Senior convertible debt for about 42% of face value instead of paying out a dividend may have been a shrewd move...
Company also able to keep the cash per share well above the current share trading price...
Be interesting to see how the market reacts...LJ
Alesco Financial Inc. Announces Third Quarter 2008 Financial Results
Monday November 3, 4:25 pm ET
PHILADELPHIA, Nov. 3 /PRNewswire-FirstCall/ -- Alesco Financial Inc. (NYSE: AFN - News; "AFN" or the "Company"), a specialty finance real estate investment trust, today announced financial results for the three-months and nine-months ended September 30, 2008.
AFN reported GAAP net income for the three-months ended September 30, 2008 of $64.1 million, or $1.07 per diluted common share, as compared to a net loss of ($496.6) million, or ($8.36) per diluted common share, for the three-months ended September 30, 2007. AFN's net income for the three-month period ended September 30, 2008 included a gain of $43.9 million due to the repurchase and retirement of convertible debt at a discount and a gain of $30.4 million relating to changes in the fair value of financial instruments.
AFN reported GAAP net income for the nine-months ended September 30, 2008 of $67.7 million, or $1.14 per diluted common share, as compared to a net loss of ($532.0) million, or ($9.59) per diluted common share, for the nine-months ended September 30, 2007. AFN's net income for the nine-month period ended September 30, 2008 included a gain of $43.9 million due to the repurchase and retirement of convertible debt described previously and a gain of $58.4 million relating to changes in the fair value of financial instruments, offset by charges of ($40.6) million due to the reclassification into the income statement of MBS related cash-flow hedging losses that were previously included in accumulated other comprehensive loss.
Book Value and Investment Portfolio Summary
The following table summarizes our allocation of capital and book value as of September 30, 2008 (amounts in thousands, except share and per share data):
Capital GAAP Income for the
Allocation Book Value Three-Month
as of as of Period Ended
September % of September September
30, 2008 Capital 30, 2008 30, 2008
TruPS investments $236,234 37% $140,215 $21,283
investments 88,857 14% 75,744 1,756
Kleros Real Estate MBS
investments 90,000 14% - 3,158
Residential mortgages 79,784 12% 54,523 (6,613)
Other investments 54,026 8% 10,844 586
Total uninvested cash© 95,811 15% 95,811 -
Total investible capital 644,712 100% 377,137 20,170
indebtedness(D)(E) (109,304) (109,304) (3,379)
Total $535,408 $267,833 $16,791
outstanding as of
September 30, 2008 59,132,488
GAAP Book Value per share $4.53
1. Represents net cash invested through September 30, 2008.
2. Net investment income includes amounts earned by the minority interest holders in certain consolidated VIEs. Net investment income for the leveraged loans asset class and the residential mortgage loans asset class is presented net of $6.0 million and $6.8 million, respectively, for provisions for loan losses recorded during the three-months ended September 30, 2008. Net investment income does not include interest income of $0.6 million on uninvested cash, or $0.4 million of interest earnings on the restricted cash at our consolidated CDO entities. Additionally, net investment income excludes $9.7 million of net periodic interest payments that relate to interest rate swap contracts that are no longer accounted for as cash flow hedges upon the adoption of FAS 159, "The Fair Value Option for Financial Assets and Financial Liabilities." The $9.7 million relates to the following asset classes: $6.5 million decrease to TruPS investments, $3.8 million decrease to Kleros Real Estate MBS investments, and a $0.6 million increase to Residential Mortgages.
3. Reduced for payments due to broker of $0.4 million at September 30, 2008 related to common stock repurchases that settled in October 2008.
4. Amount is net of our $1.5 million investment in common securities of the trusts that issued our junior subordinated debentures. The $1.5 million is recorded within other assets in our consolidated financial statements.
5. Subsequent to September 30, 2008, we repurchased and retired an additional $32.5 million par value of convertible debt for $17.6 million. As of the date of this release, our outstanding convertible debt balance is $28.7 million.
Investments in Debt Securities
The following table summarizes our investments in debt securities as of September 30, 2008 (dollars in thousands):
Net Weighted Average
Amortized Change in Estimated Average Years to
Cost Fair Value Fair Value Coupon Maturity
debentures $5,543,044 $(3,317,013) $2,226,031 5.8% 27.6
MBS 2,054,468 (1,309,921) 744,547 3.8% 6.5
investments 630 - 630 - 6.7
Total $7,598,142 $(4,626,934) $2,971,208 5.2% 21.9
The estimated fair values of our investments are based primarily on quoted market prices from independent pricing sources, or when quoted market prices are not available because certain securities do not actively trade in the public markets, from internal pricing models. These internal pricing models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular contract, specific issuer information and other market data for securities without an active market. Management's estimates of fair value require significant management judgment and are subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management's assumptions.
As of September 30, 2008, the aggregate principal amount of investments in the 25 TruPS investments that have defaulted or are currently deferring interest payments is $490.5 million, representing approximately 9.5% of our combined TruPS portfolio. As of September 30, 2008, $162.5 million of defaulted securities, which includes securities issued by IndyMac Bancorp, have been completely written off in our consolidated financial statements. For the three-months ended September 30, 2008, investment interest income does not include $6.2 million of interest earnings on the $490.5 million of currently deferring or defaulted securities. The TruPS deferrals and defaults described above have resulted in the over-collateralization tests being triggered in all eight CDOs in which we hold equity interests. The trigger of an over-collateralization test in a TruPS CDO means that AFN, as a holder of equity securities, will not receive current distributions of cash in respect of its equity interests until sufficient cash or collateral is retained in the CDOs to cure the over-collateralization tests.
As previously disclosed, we received written notice from the trustees of Kleros Real Estate I and II that each CDO had experienced an event of default. On October 30, 2008, we received written notice from the trustee of Kleros Real Estate IV that the CDO has experienced an event of default. These events of default resulted from the failure of certain additional over-collateralization tests primarily due to credit rating agency downgrades. The events of default provide the controlling class debtholder in each CDO with the option to liquidate all of the MBS assets collateralizing the particular CDO. The proceeds of any such liquidation would be used to repay the controlling class debtholder. As of the current date, the controlling class debtholders of Kleros Real Estate I, II, and IV have not exercised their rights to liquidate either CDO. As previously disclosed, Kleros Real Estate III was liquidated in June 2008. Since we are not receiving any cash flow from our investments in any of the Kleros Real Estate CDOs, the events of default described above do not have any further impact on our cash flows. However, the assets of the Kleros Real Estate I, II, and IV CDOs and the income they generate for tax purposes are a component of our REIT qualifying assets and income. If more than one of the three remaining Kleros Real Estate CDOs is liquidated, we may have to deploy additional capital into REIT qualifying assets in order to continue to qualify as a REIT. If we are not able to invest in sufficient other REIT qualifying assets, our ability to qualify as a REIT could be materially adversely affected.
Investments in Loans
Our investments in loans are accounted for at amortized cost. The following table summarizes our investments in loans as of September 30, 2008 (dollars in thousands):
Unpaid Unamortized Number Average Contractual
Principal Premium/ Carrying of Interest Maturity
Balance (Discount) Amount Loans Rate Date
mortgages $630,891 $5,517 $636,408 1,561 6.3% July 2036
mortgages 220,561 3,019 223,580 518 6.6% Dec 2036
mortgages 71,851 1,180 73,031 190 6.7% Sept 2036
Commercial loan 7,464 - 7,464 1 21.0% -
Leveraged loans 882,508 (5,417) 877,091 422 6.8% Apr 2013
Total $1,813,275 $4,299 $1,817,574 2,692 6.6% (1)
(1) Weighted-average interest rate excludes non-interest accruing commercial loan.
The following table summarizes our total indebtedness (including recourse and non-recourse indebtedness) as of September 30, 2008 (dollars in thousands):
Net Interest Average Average
Amortized Change in Carrying Rate Interest Contractual
Cost Fair Value Amount Terms Rate Maturity
ations $385,600 $(232,940) $152,660 5.5% 6.5% Oct 2036
debt 866,004 - 866,004 5.0% 5.7% Mar 2017
(1) 8,462,610 (5,276,155) 3,186,455 2.7% 3.3% Apr 2039
facilities 133,206 - 133,206 4.2% 4.2% May 2009
ness $9,847,420 $(5,509,095) $4,338,325
debentures $49,614 - $49,614 7.0% 8.8% Aug 2036
debt 61,179 - 61,179 7.6% 7.6% May 2027
ness $110,793 - $110,793
ness $9,958,213 $(5,509,095) $4,449,118
1. Excludes CDO notes payable purchased by the Company which are eliminated in consolidation. Carrying amount includes $2,491,125 of liabilities at fair value.
Recourse indebtedness refers to indebtedness that is recourse to the general assets of AFN. During the three-month period ended September 30, 2008, we repurchased and retired $78.8 million par value of our outstanding convertible debt securities for $33.0 million. We realized a gain of $43.9 million on these transactions, net of a $1.9 million write-off of related deferred costs. Subsequent to September 30, 2008, we repurchased and retired an additional $32.5 million par value of convertible debt securities for $17.6 million. As of the date of this release, $28.7 million principal amount of our convertible debt securities remain outstanding.
Non-recourse indebtedness consists of indebtedness of consolidated VIEs (i.e. CDOs, CLOs and other securitization vehicles), which is recourse only to specific assets pledged as collateral to the lenders. The creditors of each consolidated VIE have no recourse to the general credit of AFN. As of September 30, 2008, our maximum exposure to economic loss as a result of our involvement with each VIE is the $460.7 million of capital that we have invested in warehouse first-loss deposits and the preference shares or debt of the CDO, CLO or other types of securitization structures. None of the indebtedness shown in the table above subjects AFN to potential margin calls for additional pledges of cash or other assets.
As of September 30, 2008, our consolidated financial statements include $96.2 million of available, unrestricted cash and cash equivalents. Management has evaluated our current and forecasted liquidity and continues to monitor evolving market conditions. Future investment alternatives and operating activities will continue to be evaluated against anticipated current and longer term liquidity demands. As previously disclosed, the realized tax losses that we have experienced during 2008, including those resulting from the failure of IndyMac Bancorp and losses on MBS in our Kleros Real Estate portfolio, are expected to eliminate our expected taxable income for the year ending December 31, 2008. Decisions regarding future dividends will continue to consider projections regarding our taxable income and liquidity position and are subject to the review and approval of our board of directors.
Common Stock Repurchase
During the three-month period ended September 30, 2008 we repurchased 629,596 shares of common stock for $0.6 million, at a weighted-average price of $0.99 per share. Additionally, during October 2008 we repurchased 112,800 shares of common stock for $0.1 million, at a weighted-average price of $1.02 per share.
As previously announced, a conference call to discuss these financial results with investors and analysts will be held on November 4, 2008 at 10:00 AM ET. Interested parties can listen to the live webcast of our earnings conference call by clicking on the webcast link on our homepage at www.alescofinancial.com. The conference call may also be accessed by dialing 866-831-6272 or, for those calling from overseas, 617-213-8859 a few minutes in advance of the scheduled time. A replay of the conference call will be available for two weeks at 888-286-8010, passcode 96286323.
About Alesco Financial Inc.
Alesco Financial Inc. is a specialty finance REIT headquartered in Philadelphia, Pennsylvania. Alesco Financial Inc. is externally managed by Cohen & Company Management, LLC, a subsidiary of Cohen Brothers, LLC (which does business as Cohen & Company), an alternative investment management firm, which, since 2001, has provided financing to small and mid-sized companies in financial services, real estate and other sectors. For more information, please visit www.alescofinancial.com.
Information set forth in this release contains forward-looking statements, which involve a number of risks and uncertainties. Alesco Financial Inc. cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained or implied in the forward-looking information.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the failure of Alesco Financial Inc. to successfully execute its business plans or gain access to additional financing, continued disruption in the U.S. credit markets generally and the mortgage loan and CDO markets particularly, the limited availability of additional investment portfolios for future acquisition, performance of existing investments, AFN's ability to restore compliance with New York Stock Exchange (the "NYSE") continued listing standards or, in the event that AFN is unable to maintain its listing with the NYSE, its ability to comply with the initial listing standards of the NYSE or another securities exchange, continued qualification as a REIT and the cost of capital. Additional factors that may affect future results are contained in our filings with the SEC, which are available at the SEC's web site www.sec.gov and Alesco Financial Inc.'s web site, www.alescofinancial.com. Alesco Financial Inc. disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise.
Alesco Financial Inc.
Consolidated Statements of Income
(Unaudited and in thousands, except share and per share information)
For the For the For the For the
Three- Three- Nine- Nine-
Month Month Month Month
Period Period Period Period
Ended Ended Ended Ended
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
Net investment income:
Investment interest income $125,585 $194,649 $436,999 $529,299
Investment interest expense (95,954) (168,794) (337,326) (462,230)
Provision for loan losses (12,840) (4,055) (28,295) (9,514)
Net investment income 16,791 21,800 71,378 57,555
Related party management
compensation 6,711 4,886 15,653 12,612
General and administrative 3,591 3,113 10,750 8,510
Total expenses 10,302 7,999 26,403 21,122
Income before interest and
other income, minority
interest and taxes 6,489 13,801 44,975 36,433
Interest and other income 1,282 4,327 3,907 15,981
Net change in fair value of
investments in debt
securities and non-recourse
indebtedness 70,028 - 140,236 -
Net change in fair value of
derivative contracts (25,967) 25,308 (71,775) 44,899
Credit default swap premiums - (1,411) (2,872) (1,595)
Impairments on other
investments and intangible
assets (1,533) (535,057) (14,378) (609,485)
Loss on disposition of
consolidated entities - 10,293 (5,558) 10,293
Gain on repurchase of debt 43,912 - 43,912 -
Net realized loss on sale of
assets (2,196) (11,182) (5,387) (15,579)
Income (loss) before
minority interest and
benefit for income taxes 92,015 (493,921) 133,060 (519,053)
Minority interest (29,802) (4,467) (70,567) (14,164)
Income (loss) before benefit
for income taxes 62,213 (498,388) 62,493 (533,217)
Benefit for income taxes 1,841 1,784 5,243 1,174
Net income (loss) $64,054 $(496,604) $67,736 $(532,043)
Earnings (loss) per
Basic earnings (loss)
per share $1.07 $ (8.36) $1.14 $ (9.59)
outstanding-Basic 59,660,289 59,425,920 59,470,678 55,456,088
Earnings (loss) per
(loss) per share $1.07 $(8.36) $1.14 $(9.59)
outstanding-Diluted 59,660,289 59,425,920 59,470,678 55,456,088
per common share $- $0.31 $0.50 $0.92
Alesco Financial Inc.
Consolidated Balance Sheets
(Unaudited and in thousands, except share and per share information)
As of As of
September 30, December 31,
Investments in debt securities and
(including amounts at fair value
of $2,971,208 and $5,888,650,
respectively) $2,971,208 $6,628,991
Investments in loans
Residential mortgages 933,019 1,047,195
Commercial mortgages 7,464 7,332
Leveraged loans 877,091 836,953
Loan loss reserve (46,376) (18,080)
Total investments in loans, net 1,771,198 1,873,400
Cash and cash equivalents 96,219 80,176
Restricted cash and warehouse deposits 68,490 95,476
Accrued interest receivable 34,073 49,806
Other assets 46,165 207,527
Total assets $4,987,353 $8,935,376
Liabilities and stockholders' equity (deficit)
Trust preferred obligations
(including amounts at fair value
of $152,660 and $0, respectively) $152,660 $382,600
Securitized mortgage debt 866,004 959,558
CDO notes payable (including
amounts at fair value of
$2,491,125 and $0, respectively) 3,186,455 9,409,027
Warehouse credit facilities 133,206 155,984
Recourse indebtedness 110,793 189,614
Total indebtedness 4,449,118 11,096,783
Accrued interest payable 31,473 54,380
Related party payable 6,428 2,800
Other liabilities 127,897 161,408
Total liabilities 4,614,916 11,315,371
Minority interests 104,604 19,543
Stockholders' equity (deficit)
Preferred stock, $0.001 par value
per share, 50,000,000 shares
authorized, no shares issued and
outstanding - -
Common stock, $0.001 par value per
share, 100,000,000 shares
authorized, 60,323,877 and
60,548,032 issued and outstanding,
including 1,191,389 and 1,228,234
unvested restricted share awards,
respectively 59 59
Additional paid-in-capital 482,351 481,850
Accumulated other comprehensive loss (23,160) (1,545,464)
Accumulated deficit (191,417) (1,335,983)
Total stockholders' equity
(deficit) 267,833 (2,399,538)
Total liabilities and stockholders'
equity (deficit) $4,987,353 $8,935,376
John Longino Joseph Kuo
Chief Financial Officer Kekst and Company
It will be interesting to see how this plays out:
Alesco Financial Inc. Buys Back Over 56% of Convertible Debt and Suspends Regular Quarterly Cash Dividend for Third Quarter of 2008
Some big buys coming through.....on close watch.....
Thanks.Yeah a nice little financial bounce would definitely work for me.GL bud.
Nice pick-up Friend .... those shares should treat you right...
recent insider buying ......
Higher volume will be the key.....( a bank sector bounce couldn't hurt either )
TTYS and GL Friend,
~AFN~ picked up some today.
anybody else catch this CC....
Alesco Financial Inc. Earnings Conference Call (Q2 2008)
Wed, Aug 6, 2008, 10:00 am Eastern
Good day to you Sir,
Well, well, well! Moving nicely this morning! I couldn't follow the markets y-day so I'm just now trying to absorb the AFN recent earnings report.
Is this real; "Common stock outstanding as of June 30, 2008, 59,592,131. Book Value per share $3.41." ?
It still has a pulse... best of luck all.
Message of thanks meant for you analogdog....I like reducing the daily froth to a candlestick print....kinda digitizes the charts for me.
For example Friday's close gave us a Hanging Man print with a longer lower shadow after a minor advance. This does not ease my paine one bit....we may retest .80.....shudder. But until AFN drops the divi markedly I think it's worth the agony.
Let me add my thanks for starting this board....in at 1.60 and I see the glass half full!
Alesco Financial Inc. is a publicly owned real estate investment trust. The firm typically invests in real estate and other securities including trust-preferred securities, mortgage backed securities, and corporate loan obligation. Alesco Financial is based in Philadelphia, Pennsylvania. With 59.58 million shares outstanding and 11.35 million shares declared short as of July 2008, there is no longer a failure to deliver in shares of AFN. According to quarterly data provided by the SEC, there were still 59,806 shares of AFN that were failing-to-deliver as of September 28, 2007.
I'd love to pick some up under 2 bucks... this Friday may present that opportunity.
FIVE DOLLAR book value selling for half-price -- $2.55 -- dividend paying stock -- at $2.55 and backed by $2.00 cash on hand at the company -- not much chance of losing much invested -- where else do you have a chance for a double with almost no risk of a loss ??? -- IMHO --
no prob... any contributions appreciated. Wanna mod?