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GTI - Holding for awhile, they seem to have alot going for them
FMD - guess they didn't like the news
FMD: Net Income up 78% and Earnings per Share up 81% Through the First Three Quarters of FY 2007
FMD earnings: First Marblehead Announces Third Quarter Fiscal 2007 Results
Internet Wire via COMTEX
Apr 26, 2007 4:05:09 PM
Net Income up 78% and Earnings per Share up 81% Through the First Three Quarters of FY 2007
BOSTON, MA, Apr 26, 2007 (MARKET WIRE via COMTEX News Network) --
The First Marblehead Corporation (NYSE: FMD) today announced its financial and operating results for the third quarter of fiscal 2007 and for the nine months ended March 31, 2007.
Total revenues for the nine months ended March 31, 2007 were $681 million, up 63% from $419 million for the same period last year. Net income for the nine-month period was $293 million, or $3.09 per diluted share, an increase of 78% in net income, and 81% in diluted earnings per share over the same nine-month period last year. For the third quarter of fiscal 2007, total revenues were $180 million, up 20% from $151 million for the same period last year. Net income for the third quarter was $71 million, or $0.75 per diluted share, an increase of 20% in net income, and 21% in diluted earnings per share, over the same period last year.
The operating results also reflect adjustments to certain of the assumptions used by the company in estimating the value of its service receivables. Based on the current interest rate environment and securitization market, the company adjusted its prepayment and discount rate assumptions. The net effect of these adjustments reduced service receivables as well as the quarter's securitization revenues by a total of $16 million, or $.11 per diluted share.
The volume of loans facilitated during the third quarter of fiscal 2007 that are available for securitization increased 24% over the same period last year to $872 million. The rolling twelve-month volume of loans available for securitization increased 34% to $3.6 billion for the twelve months ended March 31, 2007.
"First Marblehead had a very strong third quarter and a terrific first nine months of fiscal 2007," said Jack L. Kopnisky, First Marblehead's President and Chief Executive Officer. "Our facilitated loan volume continues to grow, we continue to diversify our client base, and we remain dedicated to our mission of helping students finance their education dreams."
First Marblehead will host a conference call today, Thursday, April 26, 2007 at 5:00 p.m. EDT to discuss these results. Mr. Kopnisky, and John A. Hupalo, Senior Executive Vice President and Chief Financial Officer, will host the call. Investors and other interested parties are invited to listen to the conference call by dialing (866) 202-4683 in the United States or (617) 213-8846 from abroad (pass-code 47300178), or via simultaneous Internet broadcast on the Company's Web site at www.firstmarblehead.com, under Investors.
A replay will be available on First Marblehead's Web site for 14 days. A telephone replay will also be available for 14 days by dialing (888) 286-8010 from the U.S., or (617) 801-6888 for international callers, and entering the pass-code 39553149.
About The First Marblehead Corporation - First Marblehead, a leader in creating solutions for education finance, provides outsourcing services for private, non-governmental education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members.
Statements in this press release, including the tables, regarding First Marblehead's future growth, securitization yields, market position, and the future performance of securitization trusts, as well as any other statements that are not purely historical, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our historical performance, the historical performance of the securitization trusts and on our plans, estimates and expectations as of April 26, 2007. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future results, plans, estimates or expectations contemplated by us will be achieved. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors, which may cause our actual financial results, facilitated loan volumes and securitization-related revenues to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: our success in structuring securitizations, the size, structure and timing of the securitizations that we facilitate, the estimates we make and the assumptions on which we rely in preparing our financial statements, any variance between the actual performance of securitization trusts and the key assumptions we have used to estimate the present value of additional structural advisory fees and residual revenues, our loan facilitation volumes, our relationships with key clients, and the other factors set forth under the caption "Item 1A. Risk Factors" in First Marblehead's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 8, 2007. Important factors that could cause or contribute to differences between the actual performance of the securitization trusts and our key assumptions include economic, regulatory, competitive and other factors affecting prepayment, default and recovery rates on the underlying securitized loan portfolio, including full or partial prepayments and prepayments as a result of loan consolidation activity, capital market receptivity to private student loan asset-backed securities and interest rate trends. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
The First Marblehead Corporation and Subsidiaries Condensed Consolidated Statements of Operations For the Three and Nine Months Ended March 31, 2007 and 2006 (Unaudited) (in thousands, except per share data) Three months ended Nine months ended March 31, March 31, 2007 2006 2007 2006 -------- -------- --------- ---------Service revenues: Up-front structural advisory fees $103,879 $ 58,457 $ 365,807 $ 154,627 Additional structural advisory fees: From new securitizations 9,128 8,764 34,575 23,542 Trust updates (2,353) (37) 540 1,403 -------- -------- --------- --------- Total additional structural advisory fees 6,775 8,727 35,115 24,945 Residuals: From new securitizations 34,371 47,432 139,441 125,648 Trust updates (5,838) 5,623 19,935 25,596 -------- -------- --------- --------- Total residual revenues 28,533 53,055 159,376 151,244 Processing fees from TERI 32,282 26,583 98,961 77,779 Administrative and other fees 6,048 2,352 15,001 6,145 -------- -------- --------- --------- Total service revenues 177,517 149,174 674,260 414,740 Net interest income 2,646 1,369 6,614 4,233 -------- -------- --------- --------- Total revenues 180,163 150,543 680,874 418,973 -------- -------- --------- --------- Non-interest expenses: Compensation and benefits 27,391 25,107 84,894 66,009 General and administrative expenses 33,506 24,140 100,585 72,956 -------- -------- --------- --------- Total non-interest expenses 60,897 49,247 185,479 138,965 -------- -------- --------- ---------Income from operations 119,266 101,296 495,395 280,008 Other income 13 25 13 2,526 -------- -------- --------- --------- Income before income tax expense 119,279 101,321 495,408 282,534Income tax expense 48,107 42,099 202,077 117,393 -------- -------- --------- ---------Net income $ 71,172 $ 59,222 $ 293,331 $ 165,141 ======== ======== ========= ========= Net income per share, basic $ 0.75 $ 0.63 $ 3.11 $ 1.73 Net income per share, diluted 0.75 0.62 3.09 1.71 Cash dividends declared per share 0.15 0.08 0.37 0.24 Weighted average shares outstanding, basic 94,629 94,284 94,471 95,670 Weighted average shares outstanding, diluted 95,110 95,046 95,055 96,588 The First Marblehead Corporation and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2007 and June 30, 2006 (Unaudited) (in thousands, except share data) March 31, June 30, 2007 2006 ----------- -----------Assets Cash, cash equivalents and investments $ 290,169 $ 142,961 Loans held for sale 14,295 -- Service receivables: Structural advisory fees 123,412 88,297 Residuals 612,199 452,823 Processing fees from TERI 10,917 10,447 ----------- ----------- Total service receivables 746,528 551,567 ----------- ----------- Property and equipment, net 39,171 36,743 Goodwill 4,878 3,176 Intangible assets, net 2,767 1,897 Prepaid income taxes -- 11,649 Other prepaid expenses 14,529 17,272 Other assets 5,069 5,081 ----------- ----------- Total assets $ 1,117,406 $ 770,346 =========== ===========Liabilities and Stockholders' Equity Liabilities: Deposits $ 38,167 $ -- Accounts payable and other accrued expenses 40,369 34,430 Income taxes payable 13,255 -- Net deferred income tax liability 179,129 144,240 Notes payable and capital lease obligations 10,242 13,326 Other liabilities 2,252 2,181 ----------- ----------- Total liabilities 283,414 194,177 ----------- ----------- Commitments and contingencies Stockholders' equity 833,992 576,169 ----------- ----------- Total liabilities and stockholders' equity $ 1,117,406 $ 770,346 =========== ===========
Note: There were 94,639,685 and 94,564,088 shares of common stock outstanding at March 31, 2007 and June 30, 2006, respectively. On November 10, 2006, the Board of Directors approved a three-for-two split of the Company's common stock which was effected in the form of a stock dividend distributed on December 4, 2006 to shareholders of record at the close of business on November 20, 2006. As such, all prior period share data have been retroactively adjusted to reflect the split.
The First Marblehead Corporation and Subsidiaries Loan Facilitation Metrics (Dollars in Millions) % March 31, March 31, Increase 2007 2006 (Decrease) --------- ---------Q3 Volume of Loans Available for Securitization Direct-to-Consumer Loans $ 558 $ 402 39% School Channel Loans 273 253 8% --------- --------- Private Label Loans 831 655 27% GATE Loans 41 51 (20%) --------- --------- Total Loan Facilitation Volume Available for Securitization $ 872 $ 706 24% ========= =========Rolling Twelve Month Volume of Loans Available for Securitization Direct-to-Consumer Loans $ 2,742 $ 1,898 44% School Channel Loans 812 715 14% --------- --------- Private Label Loans 3,554 2,613 36% GATE Loans 96 112 (14%) --------- --------- Total Loan Facilitation Volume Available for Securitization $ 3,650 $ 2,725 34% ========= =========Q3 Volume of Loans Not Available for Securitization Direct-to-Consumer Loans $ 5 $ 11 (55%) School Channel Loans 142 134 6% --------- --------- Total Loan Facilitation Volume Not Available for Securitization $ 147 $ 145 1% ========= =========Rolling Twelve Month Volume of Loans Not Available for Securitization Direct-to-Consumer Loans $ 26 $ 49 (47%) School Channel Loans 399 406 (2%) --------- --------- Total Loan Facilitation Volume Not Available for Securitization $ 425 $ 455 (7%) ========= =========Percentage of Loans Available for Securitization Q3 86% 83% Rolling Twelve Month 90% 86%End-of period Principal Balance of Loans Available for Securitization but not yet Securitized Direct-to-Consumer Loans $ 321 $ 257 School Channel Loans 489 384 --------- --------- Private Label Loans 810 641 GATE Loans 95 106 --------- --------- Total Loan Principal Available for Securitization but not yet Securitized $ 905 $ 747 ========= ========= The First Marblehead Corporation and Subsidiaries Income Statement Metrics Private Label Loans Approximate Securitization Yields by Marketing Channel Volume of Up-front AdditionalDirect-to- Loans Structural Structural Consumer Securitized Advisory Advisory Residual Total ($millions) Fees(1) Fees(1) Revenue(1) Revenue(3)Q3 2007 $ 583 (75%) 14.7% 1.2% 5.2% 21.1%Q3 2006 $ 527 (71%) 8.7% 1.2% 7.7% 17.5%School ChannelQ3 2007 $ 193 (25%) 8.5% 1.2% 2.0% 11.6%Q3 2006 $ 214 (29%) 5.9% 1.2% 3.2% 10.3%Blended Yield(2)Q3 2007 $ 776 13.1% 1.2% 4.4% 18.7%Q3 2006 $ 741 7.9% 1.2% 6.4% 15.5%(1) Revenues are expressed as a percentage of the total principal and accrued interest balance of private label loans securitized in each channel at the date of securitization.(2) Blended yield represents securitization revenues as a percentage of the total principal and accrued interest balance of loans securitized for all marketing channels at the date of securitization.(3) Due to rounding and the complex nature of these calculations, the total yield by marketing channel and securitization may not represent the sum of the individual yields by revenue source.
Note: These yields by marketing channel represent an allocation of revenues and costs based on various estimates and assumptions regarding the relative profitability of these loans, and should be read with caution. Furthermore, these yields are dependent on a number of factors, including the mix of loans between marketing channels that are included in a particular securitization, the average life of loans, which can be impacted by the relative mix of loans from students with various expected terms to graduation, the structure, and prevailing market conditions at the time of a securitization, the marketing fees which our clients earn on loans we securitize for them, along with a number of other factors. Therefore, readers are cautioned that the blended yields and yields by marketing channel above may not be indicative of yields that we may be able to achieve in future securitizations.
The First Marblehead Corporation and Subsidiaries Balance Sheet Metrics Roll-forward of Structural Advisory Fees and Residuals Receivables (Dollars in Thousands) Three Months Nine Months Ended March Ended March 31, 2007 31, 2007 ------------- -------------Structural Advisory Fees ReceivableBeginning of period balance $ 116,637 $ 88,297Additions from new securitizations 9,128 34,575Trust updates: Passage of time (present value accretion) 2,001 5,413 Increase in average prepayment rates (3,529) (3,529) Other factors (825) (1,344) ------------- ------------- Net accretion (2,353) 540 ------------- -------------End of period balance $ 123,412 $ 123,412 ============= =============Residuals ReceivableBeginning of period balance $ 583,666 $ 452,823Additions from new securitizations 34,371 139,441Trust updates Passage of time (present value accretion) 18,229 48,369 Increase in average prepayment rates (36,236) (36,236) Decrease in discount rate assumptions 26,680 26,680 Other factors (14,511) (18,878) ------------- ------------- Net accretion (5,838) 19,935 ------------- -------------End of period balance $ 612,199 $ 612,199 ============= =============
Note: Factors affecting the valuation of structural advisory fees and residuals receivables include changes, if any, to the assumptions we use in estimating the fair value of these receivables. To date, loans in the securitization trusts have experienced higher prepayment rates than we had estimated would occur. During the three and nine months ended March 31, 2007, this reduced the positive net accretion that comes from updating the carrying value of our structural advisory fees and residuals receivables for the passage of time.
In light of recent prepayment rates and other factors, including the current interest rate environment, we altered our assumption regarding the annual rate of student loan prepayments during the third quarter of fiscal 2007. The increase in our prepayment assumption from 7% to 8% resulted in decreases in the estimated fair value of our structural advisory fees and residuals receivables. These decreases were offset in part by a reduction in the discount rates we use to estimate the fair value of a portion of our residuals receivable. The three securitization trusts that we facilitated during the first nine months of fiscal 2007 issued BBB-rated securities. We believe that market developments have now provided us with a meaningful basis for the discount rate to be applied in estimating the fair value of the pre-fiscal 2007 private label securitization trust residuals. The aggregated average discount rate for this period is 11.52%.
We continue to monitor the performance of trust assets against our expectations, and will make such additional adjustments to our estimates as we believe are necessary to value properly our receivables balances at each balance sheet date.
Contact: At the Company Gary F. Santo, Jr. Vice President, Investor Relations 617.638.2065
SOURCE: The First Marblehead Corporation
Copyright 2007 Market Wire, All rights reserved.
GTI Clarification 95%+ float owned by institutions links->
CNBC 104% http://www.cnbc.com/id/15837280?q=gti
Tradersnation 97.7% http://www.tradersnation.com/quote.shtml?qm_page=62905
Yahoo 98% http://finance.yahoo.com/q/mh?s=GTI
GTI - jumping around, above average morning volume, watch it
GTI - 90%+ institutional owned, $1M buy AH last night, earnings due out May 3rd, according to filings they are paying off some debt early, earnings must be good
GTI - inst ownership 105% ??? link:
http://www.cnbc.com/id/15837280?q=gti
GTI - AH 111K share buy at $10 = $1,110,000
VG - holders will take the profits left and complain they didn't get the 25%.....it is going down.
Tanker = VG
GTI - jerry, like the call, looks good
VG - call the medics - life support needed
why catch it, it going to run and why?
SEMI halted pending news
AZK large buy then ut....I am getting in small here
AZK still watching, its trying
VG dying
VG - out AZK - in
VG - close above $4 and she gaps to 4.25 in the am and touches 5.......in my own little sadistic opinion
VG will go higher (I hope)
watch CNXT, I feel a buyout coming, just a hunch
VG looking anemic
VG bouncing
AZK on watch for bounce
GAPPER = VG (if not called), me thinks this will bounce EOD and GAP in the AM
VG, I will wait EOD and decide entry or not
VG - chances of a bounce??????
IMH news - Impac Mortgage Holdings, Inc. Reaches Preliminary Settlement Agreement for Federal and State Derivative Lawsuit
PR Newswire via COMTEX
Apr 23, 2007 8:11:00 PM
IRVINE, Calif., April 23, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Impac Mortgage Holding, Inc. (NYSE: IMH), or the "Company," a Maryland corporation, being taxed as a real estate investment trust ("REIT"), announced today that it has entered into a preliminary agreement to settle the currently pending federal and state derivative actions against the Company. The settlement is subject to certain conditions including the execution of a definitive agreement and court approval. Under the proposed settlement, all claims asserted against the officers and directors named as defendants in those actions will be dismissed with prejudice with no admission of wrongdoing on the part of any defendant and the Company will agree to certain corporate governance practices. In addition, the proposed settlement will provide for an aggregate cash payment of up to $300,000 in attorney's fees subject to plaintiff's application to and approval by the court, which will be paid entirely by the Company's insurance carriers and will have no effect on the financial position of the Company.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070305/LAM033LOGO)
Mr. Joseph R. Tomkinson, Chairman and Chief Executive Officer of Impac Mortgage Holdings, Inc. commented, "The settlement of these derivative lawsuits are a positive step towards resolving the issues and will allow us to continue to focus our time and efforts on creating value for our stockholders."
Forward Looking Statements
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, some of which are based on various assumptions and events that are beyond our control may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "likely," "should," "could," "anticipate," "projected", or similar terms or variations on those terms or the negative of those terms. The forward-looking statements are based on current expectations. Actual results may differ materially as a result of several factors, including, but not limited to, the court's rejection of the proposed settlement, inability to agree upon a definitive agreement, the Company's or plaintiff's inability or unwillingness to satisfy conditions to the proposed settlement, refusal by the Company; insurance carrier to pay for attorney's fees, and failure to reach final agreement generally.
About the Company
Impac Mortgage Holdings, Inc. is a mortgage REIT, which operates four core businesses: (1) the Long-Term Investment Operations, (2) the Mortgage Operations, (3) the Warehouse Lending Operations and (4) the Commercial Operations. The Long -Term Investment Operations invests primarily in non-conforming Alt -A ("Alt-A") mortgage loans and to a lesser extent small-balance commercial and multi-family loans originated by the Commercial Operations. The Mortgage Operations acquires, originates, sells and securitizes primarily Alt-A mortgage loans, the Warehouse Lending Operations provides short-term financing to mortgage loan originators and the Commercial Operations originates small-balance commercial and multi-family loans for sale to the Long-Term Investment Operations or to third parties. The Company is organized as a REIT for tax purposes, which generally allows it to pass through earnings to stockholders without federal income tax at the corporate level.
For additional information, questions or comments, please call Tania Jernigan, VP of Investor Relations at (949) 475-3722 or email tjernigan@impaccompanies.com Web site: www.impaccompanies.com
SOURCE Impac Mortgage Holding, Inc.
Tania Jernigan, VP of Investor Relations of Impac Mortgage Holding, Inc., +1-949-475-3722, tjernigan@impaccompanies.com http://www.impaccompanies.com/
IMH volume picking up a bit
GAPPER = IMH
ICO firing up coal burners now
IMH - I smell afternoon run
IMH and ICO wound up tight, should break free soon
IMH buying this dip
ICO bid above ask now!
ICO! ICO! ICO! (the stock)
ICO on watch