Nationstar Mortgage Holdings Inc. (NYSE:NSM) (“Nationstar”), a leading residential mortgage loan servicer, today reported net income of $50.2 million or $0.67 per share for the first quarter 2012 compared to $14.9 million or $0.21 per share in the fourth quarter 2011 and $7.4 million in the first quarter 2011. The Company listed on the New York Stock Exchange on March 8, 2012.
Nationstar’s revenue grew 35% to $161.7 million for the quarter from $119.4 million in the prior quarter and $85.2 million in the first quarter of 2011. Pre-tax income from operating segments for the quarter grew 169% to $61.4 million or $0.83 per share, up from $22.8 million or $0.33 per share in fourth quarter 2011. On a Non-GAAP basis, adjusted EBITDA (AEBITDA) for operating segments grew 239% to $77.2 million or $1.04 per share for the quarter versus $47.3 million or $0.68 per share in fourth quarter 2011.
The Company’s servicing portfolio, as measured by unpaid principal balance (UPB), decreased slightly to $103 billion at quarter’s end from $107 billion at the end of the prior quarter. UPB was up significantly, however, from $67 billion at the end of first quarter 2011 and, including the pending acquisition of Aurora Bank’s mortgage servicing portfolio on a pro forma basis, is $166 billion.
“Our solid operating and financial results for first quarter 2012 demonstrate that we have the right strategy and business model for this environment,” said Jay Bray, Chief Executive Officer of Nationstar. “In the quarter, we put in place key building blocks to continue to deliver value to customers and shareholders.”“We raised $247 million in our initial public offering in March, announced a definitive agreement to acquire the residential mortgage servicing assets of Aurora Bank, which will increase our UPB by 61%, and entered into a preferred lender agreement with KB Homes,” said Mr. Bray. “Subsequent to quarter-end, we announced a definitive agreement to acquire $374 billion in servicing from Rescap, which we believe cements our position as the nation’s pre-eminent non-bank mortgage servicer. We are committed to delivering our customer-focused servicing model to help borrowers stay in their homes, which is in the best interest of Nationstar and everyone in the country.”
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