MMA Capital Holdings Reports First Quarter 2021 Results

0


BALTIMORE, May 17, 2021 / PRNewswire / – MMA Capital Holdings, Inc. (Nasdaq: MMAC) (“MMA capital“or the”Company“) today released its financial results for the quarter ended March 31, 2021, including common shareholders’ equity (“Book value“) on $280.3 millions, or $48.12 per share. The company filed its quarterly report on Form 10-Q for the quarter ended March 31, 2021 (the “Quarterly report“), with the Securities and Exchange Commission (“SECOND“) today.

The main results for the quarter include:

  • Book value has decreased $9.6 million to $280.3 million
  • Book value per share decreased $1.69, or 3.4%, to $48.12 per share
  • Adjusted book value * decreased in $13.4 million to $217.5 million
  • Adjusted book value * per share decreased $2.32, or 5.8%, to $37.34
  • Overall loss of $9.7 million euros were recognized, which corresponds to8.1 million net loss and $1.6 millions of other global losses
  • Net loss before income taxes of $11.2 millions, or $1.92 per share, was recognized, which was driven by $9.9 million of equity in the losses of the company’s renewable energy joint ventures (the “Solar companies“), which includes the impact of the Company’s share of net fair value losses related to loans made by solar companies to renewable energy projects located within the Electric Reliability Council of Texas (“ERCOT“) service area.

Gary Mentesana, Said the CEO of MMA Capital: “As previously reported in our year-end report, the first quarter was difficult for the company due to Texas winter storms on three solar projects located in the ERCOT service area. As described in more detail in the Company’s file, the Company’s share of the net fair value losses recognized by the solar companies in the first quarter related to loans granted to these projects $ 2.43 per share while the Company’s share in interest income not recognized by Solar Ventures in connection with these loans was $ 1.20 per share. However, the total impact of these items was less than $ 4.00 per share estimate we disclosed on March, 31stst while only the company’s share of net fair value losses resulted in a decrease in adjusted book value per share the 31st of December, 2020. While we believe these loan values ​​have stabilized and may improve over time, the ERCOT market remains volatile and uncertain. In this regard, additional loan losses that are material may be recognized in the foreseeable future, although we cannot predict whether we recognize such losses and their exact timing and amount. Nonetheless, we are actively working with our financial partner to mitigate our risks and reduce our exposure to the ERCOT service area while continuing to meet the capital requirements of the performing loans in the portfolio. To this end, one of the ERCOT projects was sold to a third party in April, which reduced our exposure in the ERCOT service area, and we continue to explore options associated with the balance of projects in the ERCOT area. ERCOT service which we believe will maximize returns on the underlying loan investments. Despite the headwinds resulting from the winter storm, we believe the renewable energy portfolio has the capacity to perform well for the remainder of the year and we look forward to maintaining the momentum that is apparent elsewhere in the portfolio. “

The Company plans to organize an investor call to be held the week of May 24.

_______________________

* The company defines the adjusted book value as the book value excluding the book value of the company’s deferred tax assets (“DTA“). Adjusted carrying amount is a financial measure not calculated in accordance with generally accepted accounting principles (“non-GAAP“); the reconciliations to their closest GAAP measures and the rationale for their use in the analysis of our financial results can be found in this press release under the heading”Non-GAAP financial measures. “

About MMAC

MMA Capital Holdings, Inc. focuses on infrastructure-related investments that generate positive environmental and social impacts and deliver attractive risk-adjusted total returns for our shareholders, with an emphasis on debt associated with projects and infrastructure. renewable energy. MMA Capital is managed and externally advised by Hunt Investment Management, LLC, a subsidiary of Hunt Companies, Inc. For more information on MMA Capital Holdings, Inc. (Nasdaq: MMAC), please visit the MMA Capital website at www.mmacapitalholdings.com. For more information on Hunt Investment Management, LLC, please see its Form ADV and Brochure (Part 2A of Form ADV) available at https://www.adviserinfo.sec.gov.

Caution regarding forward-looking statements

This press release contains forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the planned partial release of the valuation allowance, the impact of the coronavirus (“COVID-19[female[feminine“) and other statements identified by words such as” may “,” will “,” should “,” anticipate “,” estimate “,” expect “,” plan “,” intend “, “plan”, “believe”, “seek”, “would”, “could”, “focus”, “potential” and similar words or expressions and are made in connection with discussions of future events and operational performance or financial.

Forward-looking statements reflect our management’s expectations as of the date of this release regarding future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. Our actual results and financial condition may differ materially from what is expected in forward-looking statements. Many factors could cause actual conditions, events or results to differ from those anticipated by the forward-looking statements contained in this press release, including the uncertain aspect of the new strain of the coronavirus pandemic known as COVID-19. For a discussion of some of these risks and uncertainties and the factors that could cause our actual results to differ materially as a result of these risks and uncertainties, see Part I, Item 1A, Risk Factors of our Annual Report on Form 10 -K for the year. finished December 31, 2020. All forward-looking statements made in this document are expressly qualified in their entirety by these cautionary statements and no assurance can be given that the actual results, events or developments referenced herein will occur or will occur. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release or that we may make from time to time. We expressly disclaim any obligation to revise or update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

www.mmacapitalholdings.com

Non-GAAP financial measures

In this press release, the company presents its financial condition and operating results in a manner that it believes will be most meaningful and representative of its business results. Some of the measures used by the Company are “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. We present certain non-GAAP financial measures that supplement the financial measures that we disclose and that are calculated in accordance with GAAP. Non-GAAP financial measures are those that include or exclude certain items that are otherwise excluded or included, respectively, the most directly comparable measures calculated in accordance with GAAP. The non-GAAP financial measures that we disclose are not intended to be a substitute for GAAP financial measures and cannot be defined or calculated in the same way as similar non-GAAP financial measures used by other companies. The reconciliations of these measures with the most comparable GAAP measures in accordance with Regulation G are presented in Table 1 below.

Adjusted book value represents the book value reduced by the book value of the company’s ADDs. We believe this metric is useful for investors to assess the underlying fundamental performance of the company and trends in our business, as it eliminates potential earnings volatility caused by tax considerations in any given year. Therefore, reporting and measuring changes in adjusted book value allows for better comparison of operating performance from period to period.

The adjusted book value per common share represents the adjusted book value at the end of the period divided by the common shares outstanding at the end of the period.

Management intends to continually assess the usefulness, suitability, limitations and calculations of our published non-GAAP performance measures to determine how best to provide relevant information to the public.

Table 1 presents the reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures.

Table 1: Non-GAAP Reconciliations




From and for the period ended



March, 31st

the 31st of December

(in thousands, except per share data)


2021


2020

Reconciliation of book value to adjusted book value







Carrying amount (total equity), as published


$

280,256


$

289,884

Less: DTA, net



62,806



59,083

Adjusted book value


$

217,450


$

230,801








Common shares outstanding



5 824



5 820








Reconciliation of book value per share and adjusted book value per share

Book value (total equity) per share, as published


$

48.12


$

49.81

Less: DTA, net per share



10.78



10.15

Adjusted book value per share


$

37.34


$

39.66

SOURCE MMA Capital Holdings, Inc.

Related links

http://www.mmacapitalholdings.com/



Source link

Leave A Reply

Your email address will not be published.