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Newcastle Announces First Quarter 2012 Results

Newcastle Investment Corp. (NYSE: NCT) reported that in the first quarter of 2012, income available for common stockholders (“GAAP income”) was $72 million, or $0.68 per diluted share, compared to $108 million, or $1.73 per diluted share, in the first quarter of 2011.

GAAP income of $72 million consisted of the following:

Core Earnings:
  • $35 million, or $0.33 per diluted share, which is equal to net interest income less expenses, net of preferred dividends

Other Income/Loss:
  • $30 million of other income related to a $5 million net gain on the settlement of investments, a $21 million gain on the extinguishment of CDO debt, and a $4 million non-cash mark-to-market gain primarily related to interest rate derivatives in the CDOs
  • $7 million of non-cash mark-to-market net gain on loans held for sale and impairment recorded on investments

During the first quarter of 2012, the Company generated $20 million of Cash Available for Distribution ("CAD"), compared to $18 million in the fourth quarter of 2011.

On March 14, 2012, the Board of Directors declared a quarterly dividend of $0.20 per common share, or $21 million, for the first quarter of 2012. The Board of Directors also declared dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.75% Series B, 8.05% Series C and 8.375% Series D preferred stock, respectively, for the period beginning February 1, 2012 and ending April 30, 2012.

In the first quarter of 2012, GAAP book value increased by $1.25 per share. As of March 31, 2012, GAAP book value was $2.49 per share, compared to $1.24 per share as of December 31, 2011.

The following table summarizes the Company’s operating results ($ in millions, except per share data):
            Three Months Ended
March 31,       December 31,       March 31,
2012 2011 2011
Summary Operating Results:
GAAP income $ 72 $ 19 $ 108
GAAP income, per diluted share $ 0.68 $ 0.18 $ 1.73
Non-GAAP Results:
Core earnings $ 35 $ 32 $ 26
Core earnings, per diluted share $ 0.33 $ 0.30 $ 0.41
Cash Available for Distribution $ 20 $ 18 $ 15

For a reconciliation of income available for common stockholders to core earnings and net cash flow provided by operating activities to cash available for distribution, please refer to the tables following the presentation of GAAP results.

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