American Mortgage Acceptance (fka AMC)

[MWM]

American Mortgage Acceptance Company Reports Second Quarter Financial Results for 2008
Aug 7, 2008 6:11:00 PM
Copyright Business Wire 2008
View Additional ProfilesNEW YORK--(BUSINESS WIRE)--

American Mortgage Acceptance Company ("AMAC" or the "Company") (AMEX:AMC) today announced financial results for the second quarter and six months ended June 30, 2008.

Financial Results

The table below summarizes AMAC's revenues, net (loss) income, funds from operations ("FFO") and adjusted FFO for the three and six months ended June 30, 2008 and 2007.


Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
(In thousands,
except per share
data) 2008 2007 2008 2007
-------------- ------------ ------------ ------------
Revenues $ 9,811 $ 15,312 $ 20,495 $ 27,813
Net (Loss) Income $ (4,856) $ 3,477 $ (33,832) $ 8,641
Net (Loss) Income
Available to
Common
Shareholders $ (5,164) $ 3,477 $ (34,448) $ 8,641
FFO (1) $ (4,856) $ 3,477 $ (33,832) $ 5,366
Adjusted FFO (1)
(2) $ (4,856) $ 2,808 $ (33,832) $ 4,727


Per Share Data
(diluted):
Net (Loss)
Income $ (0.58) $ 0.41 $ (4.01) $ 1.03
Net (Loss)
Income
Available to
Common
Shareholders $ (0.61) $ 0.41 $ (4.08) $ 1.03
FFO (1) $ (0.58) $ 0.41 $ (4.01) $ 0.64
Adjusted FFO
(1) (2) $ (0.58) $ 0.33 $ (4.01) $ 0.56

(1) See footnotes (1) and (3) to the Selected Financial Data for a
discussion of FFO and adjusted FFO and a reconciliation from GAAP net
income.

(2) Adjusted to exclude the change in fair value of derivative
instruments, net of certain associated costs.

AMAC's operating results were impacted by impairments recorded for certain of our mortgage loans and the declines in the fair value of our Commercial Mortgage-Backed Securities ("CMBS") investments totaling $4.1 million and $30.6 million for the three and six months ended June 30, 2008, respectively.

During 2008, declines in the fair values of AMAC's CMBS investments reduced the Company's shareholders' equity, whether the declines resulted in realized losses or not. As the fair values have continued to decline beyond the December 31, 2007 levels, total shareholders' equity was brought to a negative balance as of June 30, 2008.

"Negative market conditions severely impacted the entire mortgage market causing substantial declines in mortgage securities and mortgage loan prices. These volatile market conditions continue to impact the value of AMAC's assets. In the second quarter of 2008, AMAC incurred additional losses from mark-to-market adjustments of certain investments and impairment charges on certain mortgage loans," said Donald J. Meyer, Chief Executive Officer of AMAC. "We are exploring all strategic options to preserve the value of our Company."

About AMAC

AMAC is a real estate investment trust that specializes in originating and acquiring mortgage loans and other debt instruments secured by multifamily and commercial properties throughout the United States. AMAC invests in mezzanine, construction and first mortgage loans, subordinated interests in first mortgage loans, bridge loans, subordinate commercial mortgage backed securities, and other real estate assets. For more information, please visit our website at http://www.americanmortgageco.com or contact the Corporate Communications Department directly at 800-831-4826.