News Release
Continuing Operations
The Company’s continued operations will report net profits in the third
quarter primarily due to the mortgage lending segment earnings of
The mortgage lending segment net earnings in the third quarter of 2012
increased by
Mr. Tomkinson, Chairman and CEO of
Discontinued Operations
The Company’s discontinued operations had a net loss of
Given our significant lending and securitization volumes completed by the previously discontinued mortgage lending operations in years prior to 2008, we, like others, have been sued, sometimes alongside dozens of other co-defendants. We have diligently defended each, sometimes at considerable expense, because, we believed that the Company ultimately had, in most cases, much less exposure, if any, from these claims, and had hoped to end them in a manner where we could preserve as much shareholder value as possible.
Management believes it is in the best interest of the shareholders to settle these lawsuits rather than be faced with the uncertainty of any court rulings, the exorbitant cost in terms of legal fees, the time involved and the distractions these suits create in defending them. It is also important to note that the terms of the settlements have been structured in a manner to minimize impact to our cash flows.
The legal settlement charge will result in the Company reporting a
consolidated net loss of approximately
Mr. Tomkinson stated, “With these settlements, management will be able to take what we believe to be its final steps in resolving the legacy obligations and contingencies of IMH, and put the Company’s mortgage lending business in its best position since the financial crisis began in 2007. Further, it helps put the Company in a position to take advantage of opportunities that exist today in the mortgage lending market.”
| Q3 2012 | Q2 2012 | Q3 YTD | ||||||||||||||||||||||||||||
| Net earnings (loss) | Diluted EPS | Net earnings (loss) | Diluted EPS | Net earnings (loss) | Diluted EPS | |||||||||||||||||||||||||
| Long-term Portfolio | $ | (4,787 | ) | $ | (0.61 | ) | $ | (252 | ) | $ | (0.03 | ) | $ | (11,614 | ) | $ | (1.48 | ) | ||||||||||||
| Mortgage Lending | 8,156 | 1.04 | 3,800 | 0.46 | 12,280 | 1.57 | ||||||||||||||||||||||||
| Real Estate Services | 3,585 | 0.46 | 4,012 | 0.48 | 10,562 | 1.35 | ||||||||||||||||||||||||
| Discontinued Operations | (9,021 | ) | (1.15 | ) | (3,113 | ) | (0.37 | ) | (13,402 | ) | (1.71 | ) | ||||||||||||||||||
| Noncontrolling interests | (212 | ) | (0.03 | ) | (235 | ) | (0.03 | ) | (683 | ) | (0.09 | ) | ||||||||||||||||||
| Net (loss) earnings attributable to IMH | $ | (2,279 | ) | $ | (0.29 | ) | $ | 4,212 | $ | 0.51 | $ | (2,857 | ) | $ | (0.36 | ) | ||||||||||||||
Conference Call
The Company will hold a conference call tomorrow morning,
Forward-Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements, some of which are based on various assumptions and events that are beyond our control, may be identified by reference to a future period or periods or by the use of forward looking terminology, such as “may,” “will,” “intends,” “believe,” “expect,” “likely,” ”appear,” “should,” “could,” “seem to,” “anticipate,” or similar terms or variations on those terms or the negative of those terms. The forward looking statements are based on current management expectations. Actual results may differ materially as a result of several factors, including, but not limited to the following: the ongoing volatility in the mortgage industry; our ability to manage successfully through the current market environment; our compliance with applicable local, state and federal laws and regulations and other general market and economic conditions; our ability to meet liquidity needs from current cash flows or generate new sources of revenue; management’s ability to manage successfully and continue to grow the Company’s mortgage and real estate business activities including the mortgage lending operations; the ability to make interest payments; increases in default rates or loss severities and mortgage related losses; our ability to obtain additional financing and the terms of any financing that we do obtain; inability to effectively liquidate properties to mitigate losses; increase in loan repurchase requests and ability to adequately settle repurchase obligations; the completion, structure and court approval of the proposed legal settlements; and the outcome, including any settlements, of litigation or regulatory actions pending against us or other legal contingencies.
For a discussion of these and other risks and uncertainties that could
cause actual results to differ from those contained in the forward
looking statements, see Item 1A. “Risk Factors” and Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in the Company’s Annual Report on Form 10-K for the
period ending
About the Company
For additional information, questions or comments, please call
Source:
Impac Mortgage Holdings, Inc.
Justin Moisio
Investor Relations
(949)
475-3988
jmoisio@impacmail.com
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