- GAAP Income of $4 million, or $0.01 per basic share
- Core Earnings of $34 million, or $0.10 per basic share
- Completed the spin-off of New Media Investment Group (NYSE:NEWM) on February 13, 2014 – stock up 16% from its fair market value of $12.30 at the time of distribution
|1Q 2014||4Q 2013|
|Summary Operating Results:|
|GAAP Income||$4 million*||$29 million|
|GAAP Income per Basic Share||$0.01*||$0.09|
|Core Earnings**||$34 million||$27 million|
|Core Earnings per Basic Share**||$0.10||$0.08|
|GAAP Book Value:||$2.12***||$3.14|
|*1Q 2014 GAAP Income includes total depreciation and amortization of $34 million, or $0.10 per basic share, including $4 million, or $0.01 per share from New Media, which is recorded in discontinued operations.|
|**For a reconciliation of GAAP Income to Core Earnings, please refer to the Reconciliation of Core Earnings below.|
|***Book Value decline is largely a result of the spin-off of New Media.|
- Senior Housing – In January, Newcastle invested $9 million of equity to acquire 2 managed senior housing properties for a total purchase price of $26 million, including transaction costs and working capital. Newcastle is also in contract to acquire 15 properties for a total purchase price of $319 million, which the Company expects will require an equity investment of $230 million. There can be no assurance that the Company will complete investments under contract, which are subject to the completion of diligence and other closing conditions.
- CDOs & Other
- Intrawest Resort Holdings Third-Lien Pay Down – In February, Newcastle received $83 million of proceeds from Intrawest Resort Holdings as a partial prepayment of a third-lien loan held in CDO VIII & CDO IX. As a result of Newcastle’s direct holdings in CDO VIII, the Company received approximately $22 million of principal recovery.
- Sold 100% of Agency RMBS Portfolio – In January, Newcastle sold $503 million face amount of Agency RMBS at an average price of 105.8%, or $532 million. After paying off the related financing, the Company received $28 million of principal recovery, which represented a $2 million gain on sale.
- New Media Investment Group – In February, Newcastle completed the spin-off of the Company’s 85% ownership interest in New Media Investment Group. Holders of Newcastle common stock as of the record date, February 6, 2014, were issued approximately 0.07219 common shares of New Media Investment Group per common share of Newcastle.
- Dividend – In December, Newcastle declared a first quarter dividend of $0.10 per common share.