SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
-----------------------------------------------
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 31, 1997
OCWEN ASSET INVESTMENT CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
VIRGINIA 000-22389 65-0736120
(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION FILE NUMBER) IDENTIFICATION NO.)
OF INCORPORATION)
THE FORUM, SUITE 1000
1675 PALM BEACH LAKES BOULEVARD, WEST PALM BEACH, FLORIDA 33401
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
(561) 681-8000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
N/A
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
PAGE 1 OF 6
EXHIBIT INDEX ON PAGE 4
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ITEM 5. OTHER EVENTS
The news release of Ocwen Asset Investment Corp. dated October 29, 1997,
regarding its financial results for the three month period ended September 30,
1997 and the period of May 19, 1997 through September 30, 1997, including
unaudited consolidated financial statements for the three month period ended
September 30, 1997 and the period of May 19, 1997 through September 30, 1997,
are attached and filed herewith as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following exhibit is filed as part of this report:
(99) News release of Ocwen Asset Investment Corp. dated
October 29, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
OCWEN ASSET INVESTMENT CORP.
(Registrant)
By: /s/ Mark S. Zeidman
---------------------------------
Mark S. Zeidman
Senior Vice President and
Chief Financial Officer
Date: October 31, 1997
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INDEX TO EXHIBIT
EXHIBIT NO. DESCRIPTION PAGE
----------- ----------- ----
99 News release of Ocwen Asset Investment Corp. dated 5
October 29, 1997 regarding its financial results for
the three month period ended September 30, 1997 and
the period of May 19, 1997 through September 30,
1997.
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================================================================================
Ocwen Asset Investment Corp.
1675 Palm Beach Lakes Boulevard
West Palm Beach, FL 33401
NASDAQ Symbol: OAIC
================================================================================
NEWS RELEASE: IMMEDIATE OCTOBER 29, 1997
OCWEN ASSET INVESTMENT CORP. REPORTS QUARTERLY RESULTS
Ocwen Asset Investment Corp. ("OAIC") today reported funds from operations of
$0.22 per share for the quarter ended September 30, 1997 as compared to $0.11
per share for the period from its initial public offering on May 19, 1997 to
June 30, 1997 (the "Short Period"). Net income for the quarter ending September
30, 1997 was $4.35 million as compared to $2.06 million for the Short Period.
Christine Reich, OAIC President stated, "We are pleased with our earnings
progress to date. The increased earnings this quarter are the result of the
additional deployment of $82.1 million of cash from the initial common stock
offering proceeds into higher earning investments."
During the quarter, OAIC invested $35.5 million in subordinates and securities
available for sale, $26.2 million in real estate, $16.6 million in discount
loans and $3.8 million in residential loans. OAIC began acquiring residential
loans in September with the intent of accumulating such loans and executing a
securitization, to effectively retain a subordinate interest.
As of September 30, 1997 OAIC had invested approximately $144.7 million or 51%
of its initial public offering proceeds. To date OAIC has additional outstanding
funding commitments of $124.8 million, consisting of: $59 million of subordinate
transactions awarded to OAIC and scheduled to close in the fourth quarter; $32.5
million of real estate acquisitions under contract subject to OAIC's due
diligence review during which time OAIC has the right to terminate the
acquisition if significant issues arise; and $25.7 million of lending
commitments outstanding which are subject to various conditions which the
borrowers must satisfy prior to OAIC closing the transactions. In addition, OAIC
closed a $7.6 million lending transaction in October and provided the borrower
with an initial funding of $4.5 million.
Annualized yields for the quarter ended September 30, 1997 were 5.70% for
repurchase agreements and interest bearing deposits, 15.17% for securities
available for sale, 9.08% for discount loans and 7.58% for residential loans.
The overall annualized portfolio yield for the quarter was 8.14%.
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QUARTERLY RESULTS AT A GLANCE:
For the quarter ended September 30, 1997 and the Short Period ended June 30,
1997 (dollars in thousands, except per share data):
<TABLE>
<CAPTION>
September 30, 1997 June 30, 1997
---------------------- -----------------------
Operating Results: Amount Per Share Amount Per Share
------- --------- ------ ---------
<S> <C> <C> <C> <C>
Total Income $5,579 $2,482
Expenses 1,229 422
Net Income 4,350 $0.22 2,060 $0.11
Funds From Operations 4,372 $0.22 2,087 $0.11
Dividend $0.24 $0.10
Summary of Financial Position:
Cash & Cash Equivalents $138,473 $220,022
Securities Available for sale 89,521 58,545
Loan Portfolio 3,773 0
Discount Loans, Net 25,184 8,545
Investment in Real Estate 26,264 0
Total Shareholders' Equity 285,202 287,532
</TABLE>
CERTAIN STATEMENTS CONTAINED HEREIN ARE "FORWARD-LOOKING STATEMENTS" WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION
21E OF THE SECURITIES ACT OF 1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS
MAY BE IDENTIFIED BY REFERENCE TO A FUTURE PERIOD(S) OR BY THE USE OF
FORWARD-LOOKING TERMINOLOGY. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE
INDICATED IN SUCH STATEMENTS DUE TO A VARIETY OF FACTORS, INCLUDING, BUT NOT
LIMITED TO, CHANGES IN INTERNATIONAL, NATIONAL, REGIONAL OR LOCAL ECONOMIC
ENVIRONMENTS, COMPETITIVE PRODUCTS AND PRICING, GOVERNMENT FISCAL AND MONETARY
POLICIES, CHANGES IN PREVAILING INTEREST RATES AND OTHER FACTORS GENERALLY
UNDERSTOOD TO AFFECT THE REAL ESTATE ACQUISITION, MORTGAGE AND LEASING MARKETS
AND SECURITY INVESTMENTS.
ATTACHED ARE THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.
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<TABLE>
<CAPTION>
OCWEN ASSET INVESTMENT CORP.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
September 30, 1997
(Unaudited)
<S> <C>
ASSETS
Cash and amounts due from depository institutions ................ $ 200,956
Interest bearing deposits ........................................ 8,271,671
Repurchase agreements ............................................ 130,000,000
Securities available for sale, at market value ................... 89,520,700
Loan portfolio, net .............................................. 3,773,321
Discount loan portfolio, net ..................................... 25,184,291
Principal and interest receivable ................................ 1,897,189
Investment in real estate, net ................................... 26,263,717
Deposits on pending asset acquisitions ........................... 6,184,300
Other assets ..................................................... 535,106
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$ 291,831,251
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Dividends payable ................................................ $ 4,590,000
Accrued expenses, payables and other liabilities ................. 2,039,437
-------------
6,629,437
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STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; 25,000,000 shares authorized;
0 shares issued and outstanding .............................. --
Common Stock, $.01 par value; 200,000,000 shares authorized ;
19,125,000 shares issued and outstanding at September 30, 1997 191,250
Additional paid-in capital ....................................... 283,496,750
Distributions in excess of earnings .............................. (92,006)
Unrealized gain on securities available for sale ................. 1,605,820
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Total stockholders' equity ................................... 285,201,814
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$ 291,831,251
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</TABLE>
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OCWEN ASSET INVESTMENT CORP.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the For the Period
Three Months May 19, 1997
Ended to
September 30, September 30,
1997 1997
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Interest income:
Repurchase agreements and interest bearing deposits $2,753,729 $4,150,857
Securities available for sale ..................... 2,492,172 3,497,356
Loans ............................................. 5,565 5,565
Discount loans .................................... 260,471 340,966
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5,511,937 7,994,744
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Operating income:
Real estate investments, net ...................... 57,243 57,243
Other ............................................. 9,795 9,795
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67,038 67,038
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Operating expenses:
Management fees ................................... 719,914 1,060,914
Loan expenses ..................................... 237,891 285,812
Other ............................................. 270,898 304,560
---------- ----------
1,228,703 1,651,286
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Net income ........................................ $4,350,272 $6,410,496
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Per share data:
Net income .................................... $ 0.22 $ 0.33
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