MuniMae Announces First Quarter 2013 Results

News provided by

Municipal Mortgage & Equity, LLC

May 15, 2013, 04:00 ET

BALTIMORE, May 15, 2013 /PRNewswire/ -- Municipal Mortgage & Equity, LLC (OTC: MMAB) ("MuniMae" or "the Company,") filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 (the "First Quarter 2013 Report") with the SEC on May 15, 2013. 

The Company reported common equity of $94.8 million at March 31, 2013, representing an increase of $49.9 million from reported common equity of $44.9 million at December 31, 2012.  Comprehensive income allocable to common shareholders, which includes both net income and total other comprehensive income, was $50.3 million for the quarter ended March 31, 2013 as compared to $11.1 million for the quarter ended March 31, 2012.

During the quarter ended March 31, 2013, the Company recorded $36.3 million of gain on the early extinguishment of debt causing our net income and our common equity to increase accordingly.  In addition, the Company's bond portfolio increased in value by $10.8 million during the quarter ended March 31, 2013, as compared to $7.0 million during the quarter ended March 31, 2012. 

Based on shares issued and outstanding and including employee and Director deferred shares issued at each period-end, the Company's common book value per share at March 31, 2013 was $2.23, as compared to a common book value per share at December 31, 2012 of $1.06.  Additional financial details are incorporated in the table below under the heading Summary Financial Information.

Conference Call Information

The Company plans to host a conference call on Tuesday, May 21, 2013 at 4:30 p.m. ET to provide a business update and review financial results for the quarter. The conference call will be webcast.  All interested parties are welcome to join the live webcast, which can be accessed through the Company's web site at www.munimae.com, under Investor Relations. Participants may also join the conference call by dialing toll free 1-800-860-2442 or 1-412-858-4600 for international participants and 1-866-605-3852 for Canadian participants.

An archived replay of the event will be available one hour after the event through 9:00 a.m. on June 21, 2013, toll free at 1-877-344-7529, or 1-412-317-0088 for international participants (Passcode: 10029118). The conference call transcript will also be archived on our website through June 21, 2013.

The Form 10-Q is posted to MuniMae's web site at www.munimae.com, under Investor Relations, and is available at the Securities and Exchange Commission's web site at www.sec.gov.

Summary Financial Information

(Unaudited)
For the quarter ended March 31,



(in thousands, except per share data)

2013

2012

Variance

1

Adjusted interest income (1)

$

17,095

$

17,903

$

(808)

2

Income on preferred stock investment

1,297

1,545

(248)

3

Adjusted asset management fees (1)

1,048

1,704

(656)

4

Adjusted other income (1)

500

504

(4)

5

Adjusted interest expense (1)

(12,717)

(15,162)

2,445

6

Adjusted operating expenses (1)

(8,812)

(6,416)

(2,396)

7

Impairment on bonds

(353)

(238)

(115)

8

Net loan loss recovery

-

3,412

(3,412)

9

Adjusted net gains on sales/redemptions of bonds (1)

2,944

-

2,944

10

Net gains on early extinguishment of liabilities


36,263

486

35,777

11

Adjusted other net gains (1)

484

122

362

12

Income tax benefit (expense)

1,527

(18)

1,545

13

Net income to common shareholders

$

39,276

$

3,842

$

35,434










14

Total other comprehensive income to common shareholders

10,987

7,296

3,691










15

Comprehensive income to common shareholders

$

50,263

$

11,138

$

39,125










16

 

Common shareholders' equity at March 31, 2013 and December 31, 2012, respectively

$

94,803

$

44,901

$

49,902

17

 

Common shares outstanding at March 31, 2013 and December 31, 2012, respectively (2)

42,451

42,512

(61)

18

Book value at March 31, 2013 and December 31, 2012, respectively

$

2.23

$

1.06

$

1.17

(1)       Indicates a non-GAAP financial measure.  See Exhibit A for a reconciliation between the adjusted measures presented above and the GAAP financial measure contained in the Consolidated Statements of Operations in the Company's First Quarter 2013 Report.

(2)       Includes deferred shares held by directors and employees. 

The non-GAAP summary financial information presented above include amounts which are reallocated primarily from the following line items within the Company's GAAP financial statements: Revenue from consolidated funds and ventures ("CFVs"); Expenses from CFVs; Net gains related to CFVs; Equity in losses from LTPPs of CFVs; Net losses allocable to noncontrolling interests in CFVs and IHS; and Income from discontinued operations, net of tax.  These lines are presented separately in the Consolidated Statements of Operations in the First Quarter 2013 Report, as required by GAAP.  The footnotes to the financial statements in the First Quarter 2013 Report contain an attribution of these line items which provides investors with additional information regarding the nature of the Company's income or loss associated with its CFVs.  The adjusted measures presented above are used by management and are disclosed supplementally to provide investors a tool to more easily review the impact of CFVs and discontinued operations on individual items of income and expense reflected in the Consolidated Statements of Operations in the Company's First Quarter 2013 Report.

Cautionary Statement Regarding Forward-Looking Statements

This Release contains forward-looking statements intended to qualify for the safe harbor contained in Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as "may," "will," "should," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seek," "would," "could," and similar words or are made in connection with discussions of future operating or financial performance.

Forward-looking statements reflect our management's expectations at the date of this Release regarding future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. Our actual results and financial condition may differ materially from what is anticipated in the forward-looking statements. There are many factors that could cause actual conditions, events or results to differ from those anticipated by the forward-looking statements contained in this Release. These factors include changes in market conditions that affect the willingness of potential investors or lenders to provide us with debt or equity, changes in market conditions that affect the value or marketability of assets we own, changes in market conditions or other factors that affect our access to cash that we may need to meet our commitments to other persons, changes in interest rates or other conditions that affect the value of mortgage loans we have made, changes in interest rates that affect our cost of funds, tax laws, environmental laws or other conditions that affect the value of the real estate underlying mortgage loans we own, and changes in tax laws or other things beyond our control that affect the tax benefits available to us and our investors. Readers are cautioned not to place undue reliance on forward-looking statements. We have not undertaken to update any forward-looking statements in this Release.

MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
www.MuniMae.com

                                         EXHIBIT A
                                        (in thousands)

For the quarter ended March 31,

Adjusted Interest Income


2013

2012

1

Interest on bonds on the Consolidated Statements of Operations ("Income Statement")

$

15,795

$

16,869

2

Note 15-Discontinued Operations - Interest income

101

  (b)


264

 (b)

3

Note 16 -CFVs - Interest income

1,199

  (a)


770

 (a)

4

Total

$

17,095

$

17,903









Adjusted Asset Management Fees





5

Note 16 -CFVs - Asset management fees

$

858

  (a)

$

1,444

 (a)

6

Reported through Other income on the Income Statement

190

260

7

Total

$

1,048

$

1,704









Adjusted Other Income





8

Interest on loans and short-term investments on the Income Statement

$

143

$

214

9

Reported through Other income on the Income Statement

357

290

10

Total

$

500

$

504









Adjusted Interest Expense





11

Total interest expense on the Income Statement

$

(6,289)

$

(6,857)

12

Interest expense on the Income Statement

(4,140)

(4,848)

13

Income allocable to perpetual preferred shareholders on the Income Statement

(2,005)

(2,284)

14

Reported through Net losses on derivatives on the Income Statement

(283)

(1,173)

15

Total

$

(12,717)

$

(15,162)









Adjusted Operating Expenses





16

Salaries and benefits on the Income Statement

$

(3,888)

$

(2,791)

17

General and administrative on the Income Statement

(1,299)

(1,356)

18

Professional fees on the Income Statement

(2,345)

(2,254)

19

Reported through Other expenses on the Income Statement

(1,280)

(15)

20

Total

$

(8,812)

$

(6,416)









Adjusted Net Gains on Sales/Redemptions of Bonds







21

Net gains on bonds on the Income Statement

$

182

$

-

22

Note 15-Discontinued Operations - Net gains on redemption of bonds

2,762

  (b)


-

 (b)

23

Total

$

2,944

$

-









Adjusted Other Net (Losses) Gains





24

Reported through Other expenses on the Income Statement

$

(948)

$

(370)

25

Net gains (losses) on loans on the Income Statement

1,169

(28)

26

Reported through Net losses on derivatives on the Income Statement

116

949

27

Note 15-Discontinued Operations - Other income


970

  (b)


112

 (b)

28

Note 16 -CFVs - Guarantee fees

331

  (a)


350

 (a)

29

Note 16 -CFVs -  Equity in losses from LTPPs

(1,499)

  (a)


(1,035)

 (a)

30

Note 16 -CFVs -  Equity in income from SA Fund

282

  (a)


137

 (a)

31

Note 16 -CFVs -  Other expenses

(86)

  (a)


(67)

 (a)

32

Equity in income from IHS reported through an allocation of income 


149

  (a)


74

 (a)

33

Total

$

484

$

122









Activity Related to CFVs





34

Revenue from CFVs on the Income Statement

$

6,247

$

4,645

35

Expense from CFVs on the Income Statement


(14,546)

(9,506)

36

Net gains related to CFVs on the Income Statement

14,987

4,725

37

Equity in losses from LTPPs of CFVs on the Income Statement

(6,418)

(12,536)

38

Net losses allocable to noncontrolling interest in CFVs and IHS - continuing operations on the Income Statement

964

14,345

39

Total

$

1,234

$

1,673

40

Sum of (a)s

$

1,234

$

1,673









Discontinued Operations





41

Income (loss) from discontinued operations, net of tax on the Income Statement

$

5,023

$

(283)

42

Net (income) losses allocable to noncontrolling interest in CFVs and IHS - discontinued operations on the Income Statement


(1,190)

659

43

Total

$

3,833

$

376

44

Sum of (b)s

$

3,833

$

376

SOURCE Municipal Mortgage & Equity, LLC

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