Welcome!

News Feed Item

MuniMae Announces 2012 Results

BALTIMORE, March 27, 2013 /PRNewswire/ -- Municipal Mortgage & Equity, LLC (OTC: MMAB) ("MuniMae" or "the Company,") filed its Annual Report on Form 10-K for the year ended December 31, 2012 (the "2012 Annual Report") with the SEC on March 26, 2013. 

The Company reported that comprehensive income allocable to common shareholders, which includes both net income and total other comprehensive income, was $37.7 million for the year ended December 31, 2012 as compared to $39.4 million for the year ended December 31, 2011.

As of December 31, 2012, there was no longer substantial doubt regarding the Company's ability to continue as a going concern.  This assessment was supported by cash flow projections indicating the Company's expected ability to meet its obligations as they become due.  However, these projections reflected management's expectations and are not guarantees of future performance.  As disclosed in the Company's prior annual reports and in its 2012 Annual Report, there are many risk factors, including in particular interest rate risk, which could negatively impact the Company's financial condition and operating results, in some cases, significantly.

Michael Falcone, MuniMae's Chief Executive Officer and President stated, "Our business was severely affected by the financial crisis, but we have been able to stabilize the Company through a combination of actions taken over the course of the past several years including business unit sales, cost reductions, and multiple debt restructurings.  Now we look forward to an opportunity to create additional shareholder value.  Today's announcements are the first steps in that journey."   

The Company's bond portfolio increased in value by $34.3 million during the year ended December 31, 2012 and $33.0 million during the year ended December 31, 2011.  These unrealized gains are recognized through a combination of net income and total other comprehensive income.  Common equity was $44.9 million at December 31, 2012, representing an increase of $40.1 million from reported common equity of $4.8 million at December 31, 2011.  Based on shares issued and outstanding and including employee and Director deferred shares issued at each year-end, the Company's common book value per share at December 31, 2012 was $1.06, compared to a common book value per share at December 31, 2011 of $0.11.  Additional financial details are incorporated in the table below.

Summary Financial Information






For the year ended December 31,





(in thousands, except per share data)


2012



2011


Variance


1

Adjusted interest income(1)

$

72,038


$

83,898

$

(11,860)


2

Income on preferred stock investment


5,749



6,228


(479)


3

Adjusted asset management fees(1)


6,341



8,445


(2,104)


4

Adjusted interest expense(1)


(58,856)



(72,167)


13,311


5

Operating expenses(2)


(28,711)



(28,380)


(331)


6

Impairment on bonds


(7,217)



(12,815)


5,598


7

Net loan loss recovery (provision)


5,647



(858)


6,505


8

Adjusted net gains on sale of bonds(1)


4,718



13,465


(8,747)


9

Adjusted net gains due to real estate consolidation and foreclosure(1)


5,404



27,992


(22,588)


10

Adjusted other net (losses) gains(1)


(1,897)



2,429


(4,326)


11

Income tax expense


(101)



(239)


138


12

Net income to common shareholders       

$

3,115


$

27,998

$

(24,883)












13

Total other comprehensive income to common shareholders


34,633



11,425


23,208












14

Comprehensive income to common shareholders

$

37,748


$

39,423

$

(1,675)












15

Common shareholders' equity at December 31,

$

44,901


$

4,832

$

40,069


16

Common shares outstanding at December 31,(3)


42,512



42,119




17

Book value at December 31, 

$

1.06


$

$0.11

$

0.95












(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 2012 Annual Report.











(2) Includes "Salaries and benefits", "General and administrative", "Professional fees" and "Other expenses" as reported on the Company's Consolidated Statements of Operations.











(3) 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 audited 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 2012 Annual Report, as required by GAAP.  The footnotes to the financial statements in the 2012 Annual 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 2012 Annual Report.

Conference Call Information

The Company plans to host a conference call on Wednesday, April 3, 2013 at 5:00 p.m. ET to provide a business update and review financial results for 2012. 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 April 11, 2013, toll free at 1-877-344-7529, or 1-412-317-0088 for international participants (Passcode: 10026659). The conference call transcript will also be archived on our website through July 1, 2013.

The Form 10-K 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.

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


For the year ended December 31,





2012



2011



Adjusted Interest Income







1

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

$

65,791


$

82,167


2

Note 16-Discontinued Operations - Interest income


1,034

(b)


266

(b)

3

Note 17-CFVs-Interest income


5,213

(a)


1,465

(a)

4

Total

$

72,038


$

83,898











Adjusted Asset Management Fees







5

Note 17 -CFVs-Asset management fees

$

5,459

(a)

$

7,532

(a)

6

Reported through Other income on the Income Statement


882



913


7

Total   

$

6,341


$

8,445











Adjusted Interest Expense







8

Total interest expense on the Income Statement

$

(26,659)


$

(35,526)


9

Interest expense on the Income Statement


(18,565)



(21,498)


10

Income allocable to perpetual preferred shareholders on the Income Statement


(9,443)



(9,598)


11

Reported through Net losses on derivatives on the Income Statement


(4,189)



(5,545)


12

Total

$

(58,856)


$

(72,167)











Adjusted Net Gains on Sale of Bonds







13

Reported as Net gains on bonds on the Income Statement

$

1,397


$

13,465


14

Note 16-Discontinued Operations-Net gains on bonds


3,321

(b)


(b)

15

Total  

$

4,718


$

13,465











Adjusted Net Gains Due to Real Estate Consolidation and Foreclosure







16

Net gains due to real estate consolidation and foreclosure on the Income Statement

$

5,404


$

13,329


17

Note 16-Discontinued Operations-Net gains due to real estate consolidation


(b)


14,663

(b)

18

Total 

$

5,404


$

27,992











Adjusted Other Net (Losses) Gains







19

Net gains (losses) on loans on the Income Statement

$

332


$

(835)


20

Other (losses) gains on the Income Statement


(1,774)



752


21

Reported through Other income on the Income Statement


1,655



2,186


22

Reported through Net losses on derivatives on the Income Statement


2,541



(3,454)


23

Note 16-Discontinued Operations-Income from REO operations


57

(b)


916

(b)

24

Note 16-Discontinued Operations-Other income


497

(b)


590

(b)

25

Note 16-Discontinued Operations-Guarantee expense


(1,554)

(b)


(60)

(b)

26

Note 16-Discontinued Operations-Net gains on sale of real estate


(b)


3,512

(b)

27

Note 17 -CFVs-Guarantee fees


1,383

(a)


1,374

(a)

28

Note 17 -CFVs-Equity in losses from LTPPs


(4,312)

(a)


(2,770)

(a)

29

Note 17 -CFVs-Equity in income from SA Fund


336

(a)


200

(a)

30

Note 17 -CFVs-Other expenses


(1,582)

(a)


(312)

(a)

31

Equity in income from IHS reported through an allocation of income


524

(a)


330

(a)

32

Total

$

(1,897)


$

2,429











Activity Related to CFVs







33

Revenue from CFVs on the Income Statement

$

25,084


$

6,975


34

Expenses from CFVs on the Income Statement


(41,359)



(31,843)


35

Net gains related to CFVs on the Income Statement


12,441



12,241


36

Equity in losses from LTPPs of CFVs on the Income Statement


(39,391)



(35,751)


37

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


50,246



56,197


38

Total

$

7,021


$

7,819


39

Sum of (a)s

$

7,021


$

7,819











Discontinued Operations







40

Income from discontinued operations, net of tax on the Income Statement

$

2,382


$

19,679


41

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


973



208


42

Total

$

3,355


$

19,887


43

Sum of (b)s

$

3,355


$

19,887


 

 

 

SOURCE Municipal Mortgage & Equity, LLC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Sometimes I write a blog just to formulate and organize a point of view, and I think it’s time that I pull together the bounty of excellent information about Machine Learning. This is a topic with which business leaders must become comfortable, especially tomorrow’s business leaders (tip for my next semester University of San Francisco business students!). Machine learning is a key capability that will help organizations drive optimization and monetization opportunities, and there have been some...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.