This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Newcastle Investments's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Now I'd like to turn the call over to Wes.

Wes Edens



Great, thanks Cam. Welcome everyone.

I'm going to give you a few kind of general remarks. And then we'll jump into it.

The quarter that was recently concluded was in many respects the busiest and most productive quarter the company has had in many, many years. Lots of investment activity, lots of new and interesting things that are going on in the sectors that we are closely involved in with the mortgage servicing rights. And also the non-agency residential securities market had very busy and active periods and a lot of activity to report there. We made new investments in a sector that we think has a lot of promise, the senior housing sector. And our core real estate debt business also had a very good quarter. So all and all, a good and productive period of time for us.

Just to start with financial results, the numbers that we look at, core earnings for the quarter, $39 million or $0.29 per share. Cash available for distribution, which is our measure of availability to pay sustainable and growing dividends, $22 million, which is about $0.16 a share. And the common dividend we paid was $0.20 a share.

Results for the quarter were definitely hampered to the extent that we had committed capital on transactions that did not get invested during the quarter. On balance for the quarter, we had $240 million on un-invested capital. All of that capital subsequent to the quarter and by the end of the quarter, was fully invested. The impact of our earnings was about $.07 per share. So in general terms, if you could take the earnings numbers that we had and just add $.06 to $.07 to get the impact of a full quarter of activity, it will give you a truer sense of the run rates. So third quarter results based upon that are off to a very strong start.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs