UNITED STATES
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) JUNE 19, 1998
LASER MORTGAGE MANAGEMENT, INC.
--------------------------------
(Exact name of registrant as specified in its charter)
MARYLAND 001-13563 22-353916
(State or other (Commission (IRS Employer
jurisdiction of File Number) ID Number)
incorporation)
51 JOHN F. KENNEDY PARKWAY, SHORT HILLS, NEW JERSEY 07078
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (973) 912-8770
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
On June 19, 1998, the Registrant issued a press release announcing the
Board of Directors' declaration of a cash dividend of $0.38 per share of common
stock for the second quarter of 1998. The dividend is payable on July 31, 1998
to stockholders of record as of June 30, 1998. The Registrant also authorized an
increase in its stock repurchase program. The complete text of the news release
is set forth as Exhibit 20 hereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements
None.
(b) Pro Forma Financial Statements
None.
(c) Exhibits
20 News Release, dated June 19, 1998.
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 thereunto duly authorized.
LASER MORTGAGE MANAGEMENT, INC.
By: /s/ Thomas G. Jonovich
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Name: Thomas G. Jonovich
Title: Chief Financial Officer
Dated: June 23, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
20 News Release, dated June 19, 1998.
Exhibit 20
LASER MORTGAGE MANAGEMENT, INC.
ANNOUNCES $0.38 PER SHARE DIVIDEND;
AUTHORIZES INCREASE IN STOCK REPURCHASE PROGRAM
Short Hills, N.J., June 19, 1998. The Board of Directors of LASER
Mortgage Management, Inc. (NYSE: LMM) has declared a cash dividend of $0.38 per
share of common stock for the second quarter of 1998. The dividend is payable on
July 31, 1998 to stockholders of record as of June 30, 1998.
Mr. Smirlock, the Chief Executive Officer of the Company, said
AManagement recommended that the Board approve a reduction of $0.05 in the
quarterly dividend because of the effect on current earnings of the market
environment that has prevailed over the past several months. Prepayment rates on
conventional residential mortgages have accelerated sharply as interest rates
have declined to historic lows. At the same time, a flat-to-inverted yield curve
has increased our relative borrowing costs. Approximately $0.02 of this decrease
reflects a one-time reduction in taxable income for the first quarter due to a
change in the interpretation of the accounting rules for the computation of
taxable income. The Board expects to continue distributing 100% of the estimated
taxable income of the Company on a quarterly basis.
"Going forward, we plan to continue reducing the prepayment
sensitivity of the Company's mortgage portfolio. We expect to utilize our
remaining uninvested capital and the proceeds from principal paydowns of our
existing portfolio to acquire high income-producing assets, including mortgage
loans, subordinate securities and investment-grade securities that we expect to
increase our net interest income. We believe that the Company has a strong
pipeline of mortgage securities, asset-backed securities and participating debt
opportunities which should put it in a position to increase earnings. We expect
LMM to continue to outperform its competitors."
In other action, the Board of Directors reviewed the policies
governing the Company's stock repurchase program and increased the value of
shares authorized to be purchased under the program from $20 million to $30
million. To date, the Company has not purchased any shares under the program.
The Board also authorized management to pursue the development of an affiliated
loan originator to provide the Company direct access to the mortgage loan
market.
The Company has scheduled a conference call for interested investors
for 9:00am Monday to discuss the matters that are the subject of this press
release. The call-in number is (888) 400-7908 (PIN#0878). A replay of the call
will be available after it is completed by dialing (888) 852-5733 (PIN#0878).
LASER Mortgage Management, Inc. is a specialty finance company
investing primarily in mortgage-backed securities and mortgage loans. The
Company has elected to be taxed as a real estate investment trust under the
Internal Revenue Code of 1986, as amended. LASER Advisers Inc., a registered
investment adviser, manages the day-to-day operations of the Company. The
executive offices of LASER Mortgage Management, Inc. are located at 51 John F.
Kennedy Parkway, Short Hills, New Jersey 07078.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: STATEMENTS IN THIS PRESS RELEASE REGARDING LASER MORTGAGE
MANAGEMENT INC.'S BUSINESS WHICH ARE NOT HISTORICAL FACTS ARE "AFORWARD-LOOKING"
STATEMENTS THAT INVOLVE RISK AND UNCERTAINTIES.
Date: June 19, 1998
Contact: LASER Mortgage Management, Inc.
Robert Gartner, Vice President (973) 912-8770
