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Newcastle Announces Third Quarter 2012 Results

Newcastle Investment Corp. (NYSE: NCT) reported that in the third quarter of 2012, income available for common stockholders (“GAAP income”) was $272 million, or $1.63 per diluted share, compared to $29 million, or $0.35 per diluted share, in the third quarter of 2011.

GAAP income of $272 million consisted of the following:

Core Earnings:
  • $43 million, or $0.26 per diluted share, which is equal to net interest income and other revenues less expenses excluding depreciation and amortization, net of preferred dividends

Other Income/Loss:
  • $229 million of other income related to a $224 million net gain on the sale of Newcastle’s CDO X interests and a $5 million net gain on the sale of other securities

The Company generated $36 million of Cash Available for Distribution (“CAD”), compared to $21 million in the second quarter of 2012.

On September 13, 2012, the Board of Directors declared a quarterly dividend of $0.22 per common share, or $38 million, for the quarter, representing a 10% increase from the second quarter’s dividend of $0.20 per common share, or $29 million. 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 August 1, 2012 and ending October 31, 2012.

As of September 30, 2012, GAAP book value was $5.64 per share, an increase of $1.96 per share from June 30, 2012.

The following table summarizes the Company’s operating results ($ in millions, except per share data):
        Three Months Ended
Sep 30,       June 30,       Sep 30,
2012 2012 2011
Summary Operating Results:
GAAP income $ 272 $ 29 $ 29
GAAP income, per diluted share $ 1.63 $ 0.21 $ 0.35
Non-GAAP Results:
Core earnings $ 43 $ 39 $ 31
Core earnings, per diluted share $ 0.26 $ 0.29 $ 0.39
Cash Available for Distribution $ 36 $ 21 $ 18

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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