Stonegate Mortgage Corp. (SGM)

[kmx_swing]

Highlights from Q3results conference call PPS today 5.21 only!!!

1) Stonegate made continued progress in three key areas of focus; core earnings stability; liquidity position and debt management.
2) benefit greatly from increased originations this quarter. GAAP net income of $15.6 million or $0.60 per diluted share in the third quarter.Our third quarter adjusted net income was $11 million or $0.42 per diluted share, after adjusting for the fair market value change in MSRs and stock-based compensation expense
3) we increased our book value by nearly $16 million during the quarter to $223.6 million or $8.65 per share as of September 30.
4)reduced our MSR debt by another $4.3 million during the quarter, while maintaining an adequate liquidity position
5)revenues were up 35%, with all channels posting increases
6)we leveraged our existing expense base and controlled fixed cost...decreasing total servicing expenses by 4%
7) We were able to reverse $6.2 million of our valuation allowance this quarter, favorably impacting our income tax expense.