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New Residential Announces Second Quarter 2014 Results

Stocks in this article: NRZ

New Residential Investment Corp. (NYSE:NRZ; “New Residential” or the “Company”) today reported the following information for the quarter ended June 30, 2014:

SECOND QUARTER FINANCIAL HIGHLIGHTS :

  • Core Earnings of $56 million, or $0.20 per diluted share
  • GAAP Income of $124 million, or $0.44 per diluted share
  • Declared total dividends of $0.25 per share for the second quarter
    • Regular Dividend of $49 million, or $0.175 per share
    • Special Dividend of $21 million, or $0.075 per share
   

 

Q2 2014 Q1 2014
Summary Operating Results:
GAAP Income $124 million $49 million
GAAP Income per Diluted Share $0.44 $0.19
 
Non-GAAP Results:
Core Earnings* $56 million $42 million
Core Earnings per Diluted Share* $0.20 $0.16
 

*For a reconciliation of GAAP Income to Core Earnings, please refer to the Reconciliation of Core Earnings below.

Highlights for the quarter ended June 30, 2014 :

  • Excess Mortgage Servicing Rights (“Excess MSRs”) – During the quarter, New Residential invested $36 million to acquire a 33% interest in four previously committed Excess MSR pools related to $14 billion UPB of Agency residential mortgage loans.
  • Servicer Advances – New Residential closed on $921 million of advances throughout the second quarter, which required an equity investment of $115 million.
  • Distressed Loans – New Residential acquired $653 million UPB of Distressed Loans (including non-performing loans, re-performing loans and related real estate) during the quarter.
  • Non-Agency RMBS – In May, New Residential exercised the clean up call options on 16 Non-Agency securitizations with $284 million UPB of underlying seasoned, high coupon loans.

Highlights subsequent to June 30, 2014:

  • Excess MSRs – Subsequent to quarter end, New Residential invested $20 million to acquire a 33% interest in two previous committed Excess MSR pools related to $8 billion UPB of Agency residential mortgage loans.
  • Distressed Loans – Subsequent to quarter end, New Residential agreed to purchase a $119 million UPB pool of Distressed Loans. New Residential expects to complete the purchase in the third quarter, although there can be no assurance that this investment will be completed in this timeframe or at all.

PROPOSED 2-FOR-1 REVERSE STOCK SPLIT

The Company also announced today that it will hold a special meeting of stockholders to seek approval for a 2-for-1 reverse stock split of its common stock. The meeting will be held on October 15, 2014, and holders of the Company’s common stock as of the close of business on August 26, 2014 will be entitled to notice of, and to vote at, the meeting. The Company expects to file a preliminary proxy statement relating to the proposal with the Securities and Exchange Commission, which will be available on the SEC’s website ( www.sec.gov) and the Company’s website ( www.newresi.com).

If approved by the holders of the Company’s common stock, every two shares of the Company’s common stock will be converted into one share of common stock, reducing the total number of issued and outstanding shares of the Company’s common stock from approximately 282 million to approximately 141 million.

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