PHH Corporation (NYSE: PHH) (“PHH” or the “Company”) today announced financial results for the quarter ended March 31, 2012.
For the quarter ended March 31, 2012, the Company reported net income attributable to PHH Corporation of $75 million or $1.32 per share. Core earnings (after-tax)* and core earnings per share* for the quarter ended March 31, 2012, were $53 million and $0.93, respectively.
“We had a solid quarter, and we are making progress against our four key strategies,” said Glen A. Messina, president and CEO of PHH Corporation. “The mortgage originations environment remains favorable with low mortgage interest rates and priced-in margins the widest we have seen in some time. Volumes in our retail mortgage origination channels remained at robust levels, while our Fleet business continued its solid, double-digit growth. We have more than doubled our unrestricted cash balance since year-end and have significantly improved our liquidity position. In April, we retired our 2012 unsecured debt maturities, and we believe that the execution of our liquidity and capital plan will provide sufficient liquidity to meet our debt service obligations, fund potential increases in repurchase and indemnification requests and operate our businesses.”
Messina added, “I continue to see significant opportunity at PHH to create value for our shareholders. We believe our reported results do not reflect fully the underlying strength of our businesses. We experienced an increase in our foreclosure-related charges as a result of a significant uptick in mortgage repurchase demands, primarily from the GSEs. We believe our focus on operational excellence should reduce defects and minimize our exposure to this risk in future years. We have identified opportunities and are developing initiatives to improve our operational effectiveness and profitability.”Liquidity and Capital Raising Update Liquidity at March 31, 2012, included:
- $875 million in unrestricted cash and equivalents
- $509 million in availability under unsecured revolving credit facility
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV