More detail related to the GAAP guidance and the Restatement is available in a Current Report on Form 8-K that the company is filing with the U.S. Securities and Exchange Commission (the “SEC”).
The above statements regarding the expected impact and amounts of the Restatement and the anticipated timing of SEC filings constitute forward-looking statements that are based on the Company’s current expectations. The actual impact and amounts and the detailed presentation of the Restatement will be included in the Company’s upcoming filings after it has completed its work on the Restatement and Deloitte has completed its audit of the Company’s consolidated financial statements for the year ended December 31, 2011. There can be no assurance that the final impact and the amounts of the Restatement will not differ materially from estimates that are described in this release or in the Current Report on Form 8-K or that any other information set forth herein will not change materially before we file our restated consolidated financial statements. The Company specifically notes that it is still evaluating its projection of cash flows for OTTI and income recognition purposes.
Chimera Investment Corporation invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. The Company’s principal business objective is to generate income from the spread between yields on its investments and its cost of borrowing and hedging activities. The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”).
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results, as well as our expectations regarding materiality or significance, the Restatement’s quantitative effects, the effectiveness of our disclosure controls and procedures, material weaknesses in internal control over financial reporting and the filing of our untimely SEC reports, to differ materially from those in the forward-looking statements. These factors include, among other things, the risk that additional information may arise from the preparation of our restated consolidated financial statements and that our internal control over financial reporting may be inadequate or have weaknesses of which we are not currently aware or which have not been detected. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. For a discussion of a variety of risk factors affecting our business and prospects, see “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2010 (the “2010 10-K”), as supplemented by the reports we have filed since the 2010 10-K.