American Residential Investment Trust, Inc. Reports First Quarter Results

Apr 30, 2001, 01:00 ET from American Residential Investment Trust, Inc.

    DEL MAR, Calif., April 30 /PRNewswire/ -- American Residential Investment
 Trust, Inc. (NYSE:   INV) today announced that for the first quarter ended March
 31, 2001, the Company reported a net loss of $594,000, or $0.07 per diluted
 share before the cumulative effect of adopting SFAS 133, compared to net
 income of $1.5 million, or $0.19 per diluted share at March 31, 2000.
 Reiterating the Company's policy to pay dividends based on taxable earnings,
 the Board of Directors suspended its dividend payment.
     The Company adopted SFAS 133 in the quarter, which required all cap
 agreements to be reduced to market value.  Previously, the Company amortized
 the cost of cap agreements as expense over the life of the caps.  The net loss
 for the first quarter including the cumulative effect of the accounting change
 was $1.7 million, or $0.21 per diluted share.  The charge related to the
 change was $1.1 million, or $0.14 per diluted share.  The Company's total
 mortgage assets were $784 million at March 31, 2001 compared to $1.1 billion
 at March 31, 2000.
     In commenting on the first quarter, John M. Robbins, Jr., Chairman and
 Chief Executive Officer, said, "As I have previously stated, near-term we
 expect that gross operating revenues will continue to decline as we allow the
 size of the portfolio to decrease in favor of allocating capital to support
 our anticipated investment in LoanCity.  Wider margins in the portfolio were
 offset in the first quarter by higher credit provisions tied to a normal
 seasoning of our non-conforming portfolio.  We expect that the recent interest
 rate cuts will have a positive effect on our second quarter 2001 earnings and
 cash flow.  However, because dividends are based on taxable earnings, the
 Company does not anticipate paying dividends in 2001 due to a tax loss carry
 forward."
     Robbins further noted, "Our ongoing objective is to maintain a strong
 capital structure during our transition to an origination company.  The
 transaction with LoanCity is a critical milestone in diversifying our income
 stream and creating significant long-term revenue and growth opportunities."
     On April 16, 2001 American Residential announced that it had signed a
 letter of intent to purchase a controlling interest in LoanCity.com, a leading
 provider of loan search software and fulfillment tailored to the needs of
 mortgage brokers and mortgage bankers.  LoanCity generated approximately
 $400 million in mortgage loans in March 2001.  It was formed in 1987 and began
 offering its METRO 8.0 search software in 2000 through its network of five
 regional offices located in Arizona, California, and Florida.  LoanCity is
 licensed to do business in 49 states and has correspondent agreements with
 30 top-tier lending institutions.
     Subsequent to the completion of the LoanCity transaction, which is
 expected to close in May, the Company plans to issue guidance on its earnings
 for the remainder of the year.
 
     Headquartered in Del Mar, California, American Residential Investment
 Trust, Inc. is a real estate investment trust (REIT) that has invested
 primarily in non-conforming, residential mortgage assets.  For more
 information on American Residential, please visit the Company's web site at
 www.amerreit.com.
 
     Certain matters discussed in this press release may constitute
 forward-looking statements within the meaning of federal securities laws.
 Forward-looking statements include statements regarding the decline of gross
 operating revenues, a decrease in portfolio size, the allocation of capital to
 an investment in LoanCity, second quarter 2001 earnings and cash flow, the
 lack of dividend payments in 2001, the Company's ability to transition to an
 origination company through an investment in LoanCity and resulting revenue
 and growth opportunities and the issuance of future earnings guidance.  Actual
 results and the timing of certain events could differ materially from those
 projected in or contemplated by these forward-looking statements due to a
 number of factors including but not limited to:  general economic conditions;
 mortgage loan prepayment rates; credit losses; overall interest rates; the
 shape of the yield curve; the availability of suitable mortgage assets; the
 availability of financing for the origination, acquisition or securitization
 of mortgage assets; the impact of leverage; the Company's ability to
 successfully complete due diligence and negotiate a definitive agreement to
 invest in LoanCity; the Company's liquidity position and other risk factors
 outlined in the Company's SEC reports.
 
 
                    AMERICAN RESIDENTIAL INVESTMENT TRUST, INC.
 
                                      Three Months   Three Months Three Months
                                          Ended         Ended         Ended
                                       03/31/2001     12/31/2000    03/31/2000
 
     Income Statement
       Interest income                    $18,077       $19,244       $25,029
 
       Interest expense                   (14,249)      (15,624)      (18,856)
 
         Gross interest spread on
          mortgage portfolio                3,828         3,620         6,173
 
       Other interest income                  188           233           180
 
       Premium amortization                (2,476)       (2,337)       (3,438)
 
       Hedging expense, net                    --          (217)         (139)
 
         Net interest income before
          provision for loan losses         1,540         1,299         2,776
 
       Provision for loan losses and
        net (loss) gain on sale-REO        (1,893)       (1,114)         (700)
 
       Gain (loss) on retained interest
        in securitization                      --          (391)           --
 
       Unrealized loss on interest rate
        cap agreements                         (9)           --            --
 
       Prepayment penalty income              821           833           936
 
       Other operating income                 162           342           111
 
       Management fees                       (766)         (835)       (1,093)
 
       Loan, general & administrative
        expenses                             (449)         (700)         (527)
 
           (Loss) income before cumulative
            effect of accounting change      (594)         (566)        1,503
 
       Cumulative effect of accounting
        change                             (1,106)           --            --
         Net (loss) income                $(1,700)        $(566)       $1,503
 
     Per Share Data
       Weighted average common and
        common equivalent shares
        outstanding                     7,970,133     8,053,872     8,055,500
 
       Net (loss) income per share
        before cumulative effect of
        accounting change                  $(0.07)       $(0.07)        $0.19
 
       (Loss) income per share - basic
        and diluted                        $(0.21)       $(0.07)        $0.19
 
       Common dividend declared for the
        period                                $--         $0.20         $0.20
 
     Balance Sheet Data
       Total mortgage assets             $784,481      $858,199    $1,123,232
 
       Total assets                       806,154       882,573     1,149,028
 
       Short-term debt                      3,988         5,083        63,139
 
       Long-term debt, net                724,829       797,182       996,005
 
       Total stockholders' equity         $74,769       $76,627       $87,757
 
       Asset to equity ratio               10.8:1        11.5:1        13.1:1
 
       Total mortgage assets purchased
        in period                             $--           $--          $622
 
     ($ in thousands, except per share data)
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41349727
 
 

SOURCE American Residential Investment Trust, Inc.
    DEL MAR, Calif., April 30 /PRNewswire/ -- American Residential Investment
 Trust, Inc. (NYSE:   INV) today announced that for the first quarter ended March
 31, 2001, the Company reported a net loss of $594,000, or $0.07 per diluted
 share before the cumulative effect of adopting SFAS 133, compared to net
 income of $1.5 million, or $0.19 per diluted share at March 31, 2000.
 Reiterating the Company's policy to pay dividends based on taxable earnings,
 the Board of Directors suspended its dividend payment.
     The Company adopted SFAS 133 in the quarter, which required all cap
 agreements to be reduced to market value.  Previously, the Company amortized
 the cost of cap agreements as expense over the life of the caps.  The net loss
 for the first quarter including the cumulative effect of the accounting change
 was $1.7 million, or $0.21 per diluted share.  The charge related to the
 change was $1.1 million, or $0.14 per diluted share.  The Company's total
 mortgage assets were $784 million at March 31, 2001 compared to $1.1 billion
 at March 31, 2000.
     In commenting on the first quarter, John M. Robbins, Jr., Chairman and
 Chief Executive Officer, said, "As I have previously stated, near-term we
 expect that gross operating revenues will continue to decline as we allow the
 size of the portfolio to decrease in favor of allocating capital to support
 our anticipated investment in LoanCity.  Wider margins in the portfolio were
 offset in the first quarter by higher credit provisions tied to a normal
 seasoning of our non-conforming portfolio.  We expect that the recent interest
 rate cuts will have a positive effect on our second quarter 2001 earnings and
 cash flow.  However, because dividends are based on taxable earnings, the
 Company does not anticipate paying dividends in 2001 due to a tax loss carry
 forward."
     Robbins further noted, "Our ongoing objective is to maintain a strong
 capital structure during our transition to an origination company.  The
 transaction with LoanCity is a critical milestone in diversifying our income
 stream and creating significant long-term revenue and growth opportunities."
     On April 16, 2001 American Residential announced that it had signed a
 letter of intent to purchase a controlling interest in LoanCity.com, a leading
 provider of loan search software and fulfillment tailored to the needs of
 mortgage brokers and mortgage bankers.  LoanCity generated approximately
 $400 million in mortgage loans in March 2001.  It was formed in 1987 and began
 offering its METRO 8.0 search software in 2000 through its network of five
 regional offices located in Arizona, California, and Florida.  LoanCity is
 licensed to do business in 49 states and has correspondent agreements with
 30 top-tier lending institutions.
     Subsequent to the completion of the LoanCity transaction, which is
 expected to close in May, the Company plans to issue guidance on its earnings
 for the remainder of the year.
 
     Headquartered in Del Mar, California, American Residential Investment
 Trust, Inc. is a real estate investment trust (REIT) that has invested
 primarily in non-conforming, residential mortgage assets.  For more
 information on American Residential, please visit the Company's web site at
 www.amerreit.com.
 
     Certain matters discussed in this press release may constitute
 forward-looking statements within the meaning of federal securities laws.
 Forward-looking statements include statements regarding the decline of gross
 operating revenues, a decrease in portfolio size, the allocation of capital to
 an investment in LoanCity, second quarter 2001 earnings and cash flow, the
 lack of dividend payments in 2001, the Company's ability to transition to an
 origination company through an investment in LoanCity and resulting revenue
 and growth opportunities and the issuance of future earnings guidance.  Actual
 results and the timing of certain events could differ materially from those
 projected in or contemplated by these forward-looking statements due to a
 number of factors including but not limited to:  general economic conditions;
 mortgage loan prepayment rates; credit losses; overall interest rates; the
 shape of the yield curve; the availability of suitable mortgage assets; the
 availability of financing for the origination, acquisition or securitization
 of mortgage assets; the impact of leverage; the Company's ability to
 successfully complete due diligence and negotiate a definitive agreement to
 invest in LoanCity; the Company's liquidity position and other risk factors
 outlined in the Company's SEC reports.
 
 
                    AMERICAN RESIDENTIAL INVESTMENT TRUST, INC.
 
                                      Three Months   Three Months Three Months
                                          Ended         Ended         Ended
                                       03/31/2001     12/31/2000    03/31/2000
 
     Income Statement
       Interest income                    $18,077       $19,244       $25,029
 
       Interest expense                   (14,249)      (15,624)      (18,856)
 
         Gross interest spread on
          mortgage portfolio                3,828         3,620         6,173
 
       Other interest income                  188           233           180
 
       Premium amortization                (2,476)       (2,337)       (3,438)
 
       Hedging expense, net                    --          (217)         (139)
 
         Net interest income before
          provision for loan losses         1,540         1,299         2,776
 
       Provision for loan losses and
        net (loss) gain on sale-REO        (1,893)       (1,114)         (700)
 
       Gain (loss) on retained interest
        in securitization                      --          (391)           --
 
       Unrealized loss on interest rate
        cap agreements                         (9)           --            --
 
       Prepayment penalty income              821           833           936
 
       Other operating income                 162           342           111
 
       Management fees                       (766)         (835)       (1,093)
 
       Loan, general & administrative
        expenses                             (449)         (700)         (527)
 
           (Loss) income before cumulative
            effect of accounting change      (594)         (566)        1,503
 
       Cumulative effect of accounting
        change                             (1,106)           --            --
         Net (loss) income                $(1,700)        $(566)       $1,503
 
     Per Share Data
       Weighted average common and
        common equivalent shares
        outstanding                     7,970,133     8,053,872     8,055,500
 
       Net (loss) income per share
        before cumulative effect of
        accounting change                  $(0.07)       $(0.07)        $0.19
 
       (Loss) income per share - basic
        and diluted                        $(0.21)       $(0.07)        $0.19
 
       Common dividend declared for the
        period                                $--         $0.20         $0.20
 
     Balance Sheet Data
       Total mortgage assets             $784,481      $858,199    $1,123,232
 
       Total assets                       806,154       882,573     1,149,028
 
       Short-term debt                      3,988         5,083        63,139
 
       Long-term debt, net                724,829       797,182       996,005
 
       Total stockholders' equity         $74,769       $76,627       $87,757
 
       Asset to equity ratio               10.8:1        11.5:1        13.1:1
 
       Total mortgage assets purchased
        in period                             $--           $--          $622
 
     ($ in thousands, except per share data)
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41349727
 
 SOURCE  American Residential Investment Trust, Inc.