Conference Call and Webcast to be Held at 8:00
AM (EST) on Wednesday, November 14, 2018
Sachem Capital Corp. (NYSE American: SACH) today announced today
its financial results for the three- and nine-month periods ended
September 30, 2018. In addition, the Company announced that it will
host its investor conference call on Wednesday, November 14, 2018,
beginning at 8:00 a.m. Eastern Standard Time (additional details
below).
Operational highlights:
- Revenue for the third quarter increased
approximately 57.4% to approximately $3.05 million
- Net income for the third quarter
increased approximately 48.9% to approximately $1.96 million, or
$0.13 per share
- Revenue for the nine months increased
approximately 85.6% to approximately $8.81 million
- Net income for the nine months
increased approximately 93.4% to approximately $6.13 million, or
$0.40 per share
Balance Sheet highlights:
- Mortgages receivable at September 30,
2018, approximately $77.81 million, increased approximately 23.0%
from December 31, 2017
- Total assets at September 30, 2018,
approximately $85.03 million, increased approximately 26.0% from
December 31, 2017
- Shareholders’ equity at September 30,
2018, approximately $55.79 million, increased approximately 2.25%
from December 31, 2017
Based on its performance in the third quarter of 2018, the
Company increased its quarterly dividend to $0.12 per share. As a
result, the dividend yield on the Company’s common shares is
currently approximately 11.48%.
John Villano CPA, co-chief executive officer and chief financial
officer of Sachem Capital Corp., stated, “I am pleased to report
another quarter of strong year-over-year revenue growth and
improved profitability. Last month, we announced that we increased
our quarterly dividend to $0.12 per share, a 9% increase over our
most recent quarterly dividend payment. We have also maintained a
solid balance sheet and ended the quarter with almost $56 million
of shareholders’ equity.”
“Despite some challenging market conditions such as rising
interest rates, flat or declining real estate values, and our
continuing need for growth capital, the demand for our products
remains strong and, accordingly, we remain optimistic in the
outlook for the business and our ability to continue to deliver
attractive risk-adjusted returns to our shareholders. Our optimism
stems from the fact that, as a non-bank real estate lender, we have
more flexibility than traditional lenders to structure loans to
suit the needs of our clients and to respond to changes in the
market. We continue, as always, to adhere to our strict
underwriting criteria, extensive due diligence into the borrowers
and the collateral and a conservative loan-to-value ratio.”
Results of operations -- three months ended September 30,
2018
Total revenue for the three months ended September 30, 2018 was
approximately $3.05 million compared to approximately $1.94 million
for the three months ended September 30, 2017, an increase of $1.11
million, or 57.4%. The company recorded increases in all revenue
categories, including interest income, net origination fees, other
income (which includes modification fees, lender fees, income on
borrower charges) and gains on the sale of real estate.
Total operating costs and expenses for three months ended
September 30, 2018 were approximately $1.09 million compared to
approximately $621,000 for the three months ended September 30,
2017, an increase of approximately 75.3%. The company recorded
increases in all major cost and expense categories, including
interest expense and amortization of deferred financing costs,
compensation and related costs, professional fees and general and
administrative expenses.
Net income for the third quarter of 2018 was approximately $1.96
million compared to approximately $1.32 million for the third
quarter of 2017, an increase of approximately 48.9%. Basic and
diluted net income per weighted average common share outstanding
for the third quarter of 2018 was $0.13 compared to $0.12 per share
for the third quarter of 2017.
Results of operations – nine months ended September 30, 2018
Total revenue for the nine months ended September 30, 2018 was
approximately $8.81 million compared to approximately $4.75 million
for the nine months ended September 30, 2017, an increase of $4.06
million, or 85.6%. The company recorded increases in all revenue
categories, including interest income, origination fees, other
income and gain on sale of real estate.
Total operating costs and expenses for nine months ended
September 30, 2018 were $2.68 million compared to approximately
$1.57 million for the nine months ended September 30, 2017, an
increase of approximately 69.9%. The company recorded increases in
all major operating costs and expense categories, including
interest expense and amortization of deferred financing costs,
compensation and related costs, professional fees and general and
administrative expenses.
Net income for the nine months ended September 30, 2018 was
approximately $6.13 million, compared to approximately $3.17
million, for the nine months ended September 30, 2017, an increase
of approximately 93.4%. Basic and diluted net income per weighted
average common share outstanding for the nine months ended
September 30, 2018 was $0.40 per share, compared to $0.26 per share
for the corresponding 2017 period. Net income per share data for
the nine months ended September 30, 2017 does not include the net
income per share for the period prior to February 9, 2017, the date
of the company’s initial public offering
2018 Third Quarter Conference Call
The Company will host a conference call on Wednesday, November
14, 2018 at 8:00 a.m., Eastern Standard Time, to discuss its
operating results for three and nine month periods ending September
30, 2018 and its financial condition at the date, as well as other
relevant matters.
Interested parties can access the conference call by dialing
877-407-8033 for U.S. callers, or +201-689-8033 for international
callers. The call will be available on the Company’s website via
webcast at https://www.sachemcapitalcorp.com. John Villano, the
Company’s Co-Chief Executive Officer and Chief Financial Officer,
will lead the conference call and will also be available to answer
questions.
A webcast will also be archived on the Company’s website and a
telephone replay of the call will be available approximately one
hour following the termination of the call, through 8:00 a.m. on
November 28, 2018, and can be accessed by dialing: 877-481-4010 for
U.S. callers or +919-882-2331 for international callers and
entering conference ID: 41211.
About Sachem Capital, Corp.
Sachem Capital Corp. (SCC), is the successor to Sachem Capital
Partners, LLC (SCP) having acquired all of SCP’s assets and assumed
all of SCP’s liabilities in February 2017. Immediately thereafter,
SCC completed an underwritten initial public offering of its
shares. (Except where otherwise stated to the contrary, SCC and SCP
are, collectively, referred to as the “Company”.) The Company
specializes in originating, underwriting, funding, servicing and
managing a portfolio of first mortgage loans. It offers short term
(i.e., three years or less) secured, nonbanking loans (sometimes
referred to as “hard money” loans) to real estate investors to fund
their acquisition, renovation, development, rehabilitation or
improvement of properties located primarily in Connecticut. The
Company does not lend to owner occupants. The Company’s primary
underwriting criteria is a conservative loan to value ratio. The
properties securing the Company’s loans are generally classified as
residential or commercial real estate and, typically, are held for
resale or investment. Each loan is secured by a first mortgage lien
on real estate and may also be secured with additional real estate
collateral. Each loan is also personally guaranteed by the
principal(s) of the borrower, which guaranty may be collaterally
secured by a pledge of the guarantor’s interest in the borrower.
The Company also makes opportunistic real estate purchases apart
from its lending activities. SCC believes that it qualifies as a
real estate investment trust (REIT) for federal income tax purposes
and has elected to be taxed as a REIT beginning with its 2017 tax
year.
Forward Looking Statements
This press release may contain forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding our future
results of operations and financial position, strategy and plans,
and our expectations for future operations, are forward-looking
statements. The words “anticipate,” “estimate,” “expect,”
“project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,”
“will,” “should,” “could,” “likely,” “continue,” “design,” and the
negative of such terms and other words and terms of similar
expressions are intended to identify forward- looking
statements.
We have based these forward-looking statements largely on our
current expectations and projections about future events and trends
that we believe may affect our financial condition, results of
operations, strategy, short-term and long-term business operations
and objectives and financial needs. These forward-looking
statements are subject to several risks, uncertainties and
assumptions as described in our Annual Report on Form 10-K for 2017
filed with the U.S. Securities and Exchange Commission on April 2,
2018. Because of these risks, uncertainties and assumptions, the
forward-looking events and circumstances discussed in this press
release may not occur, and actual results could differ materially
and adversely from those anticipated or implied in the
forward-looking statements.
You should not rely upon forward-looking statements as
predictions of future events. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance or achievements. In addition, neither we nor any other
person assumes responsibility for the accuracy and completeness of
any of these forward-looking statements. We disclaim any duty to
update any of these forward-looking statements.
All forward-looking statements attributable to us are expressly
qualified in their entirety by these cautionary statements as well
as others made in this press release. You should evaluate all
forward-looking statements made by us in the context of these risks
and uncertainties.
SACHEM CAPITAL CORP. BALANCE SHEETS
September
30, 2018
December
31, 2017
(unaudited) (audited)
Assets:
Cash
$ 543,903 $ 954,223 Escrow deposits - 111,189 Mortgages receivable
76,835,852 62,166,937 Mortgages receivable, affiliate 969,457
1,104,022 Interest and fees receivable 1,381,536 645,493 Other
receivables 385,090 234,570 Due from borrowers 357,810 451,795
Prepaid expenses 27,613 4,520 Property and equipment, net 812,903
501,819 Real estate owned 3,145,532 1,224,409 Pre-Offering Costs
853 - Deferred financing costs, net 572,281 95,560 Total assets $
85,032,830 $ 67,494,537
Liabilities and Shareholders'
Equity: Liabilities: Line of credit $ 27,260,147 $ 9,841,613
Mortgage payable 293,566 301,101 Accounts payable and accrued
expenses 95,024 390,758 Security deposit held 2,550 2,550 Advances
from borrowers 276,377 519,764 Due to note purchaser - 723,478
Deferred revenue 1,152,665 1,108,400 Accrued interest 157,720
40,592 Total liabilities 29,238,049
12,928,256
Shareholders' equity:
Preferred shares - $.001 par value;
5,000,000 shares authorized; no sharesissued
- -
Common shares - $.001 par value;
50,000,000 shares authorized; 15,436,914 and
15,415,737 issued and outstanding, respectively
15,437 15,416 Paid-in capital 53,345,001 53,315,772 Retained
earnings 2,434,343 1,235,093 Total shareholders' equity 55,794,781
54,566,281 Total liabilities and shareholders' equity $ 85,032,830
$ 67,494,537
SACHEM CAPITAL CORP.
STATEMENTS OF OPERATIONS (unaudited)
Three Months
Ended September 30,
Nine Months
Ended September 30,
2018 2017 2018
2017 Revenue: Interest income from
loans $ 2,272,100 $ 1,570,877 $ 6,610,273 $ 3,831,636 Origination
fees, net 383,322 196,811 1,071,921 464,211 Late and other fees
59,949 34,998 144,031 100,453 Processing fees 30,680 30,480 101,480
84,855 Rental income, net 10,136 9,637 87,865 58,865 Other income
175,271 80,196 674,830 205,775 Gain on sale of real estate 119,666
15,931 119,666 178 Total revenue 3,051,124 1,938,930
8,810,066 4,745,973
Operating costs and
expenses:
Interest and amortization of deferred
financingcosts
493,992 302,548
1,098,912
589,457
Compensation, fees and taxes 344,266 195,673 886,024 466,497
Stock-based compensation 29,250 - 29,250 - Compensation to manager
- - - 35,847 Professional fees 54,330 47,202 212,789 179,344 Other
fees and taxes 7,669 - 67,668 - Exchange fees 10,000 31,548 26,667
69,213 Depreciation 6,834 8,734 20,302 21,624 General and
administrative expenses 142,119 35,338 314,839 212,676 Excise tax
- - 19,000 - Total operating costs and
expenses 1,088,460 621,043 2,675,451
1,574,658 Net income $ 1,962,664 $ 1,317,887 $ 6,134,615 $
3,171,315
Basic and diluted net income per common
shareoutstanding:
Basic $ .13 $ .12 $ .40 $ .26* Diluted $ .13 $ .12 $ .40 $ .26*
Weighted average number of common shares outstanding: Basic
15,433,000 11,103,237 15,421,555
11,103,237 Diluted 15,433,000 11,103,237
15,421,555 11,103,237
* Basic and diluted net income per common
share outstanding and weighted average number of common
sharesoutstanding are calculated for the period beginning February
9, 2017 (i.e., the effective date of the company’s initialpublic
offering) and ending September 30, 2017.
SACHEM CAPITAL CORP. STATEMENTS OF CASH
FLOW (unaudited)
Nine Months
Ended September 30,
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES Net income $
6,134,615 $ 3,171,315
Adjustments to reconcile net income to
net cash provided by operating
activities:
Amortization of deferred financing costs 90,165 43,677 Depreciation
expense 20,302 21,624 Gain on sale of real estate (119,666 ) (179 )
Adjustment to loss for sale of collateral - (42,231 ) Stock-based
compensation 29,250 -
Changes in operating assets and
liabilities: (Increase) decrease in: Escrow deposit 111,189 -
Interest and fees receivable (916,672 ) (154,877 ) Other
receivables (150,520 ) ) 14,227 Due from borrowers (308,866 )
(278,694 ) Prepaid expenses (23,093 ) (38,342 ) (Decrease) increase
in: Due to member - (656,296 ) Due to shareholder - 16,957 Due to
note purchaser (723,478 ) - Accrued interest 117,128 55,071 Accrued
expenses (295,734 ) (118,183 ) Deferred revenue 44,265 580,741
Advances from borrowers (243,387 ) 154,888 Total adjustments
(2,369,117 ) (401,617 ) NET CASH PROVIDED BY OPERATING ACTIVITIES
3,765,498 2,769,698 CASH FLOWS FROM INVESTING
ACTIVITIES Proceeds from sale of real estate owned 672,538 530,181
Acquisitions of and improvements to real estate owned
(104,799
)
(424,023
)
Escrow deposit - (46,440 ) Purchase of property and equipment
(331,386 ) (132,729 ) Security deposit - 1,750 Principal
disbursements for mortgages receivable (37,278,346 ) (33,792,878 )
Principal collections on mortgages receivable 20,958,280 14,849,831
NET CASH USED FOR INVESTING ACTIVITIES (16,083,713 )
(19,014,308 )
SACHEM CAPITAL CORP.
STATEMENTS OF CASH FLOW (Continued) (unaudited)
Nine Months
Ended September 30,
2018 2017 CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from line of credit 61,067,401 25,341,633 Repayment
of line of credit (43,648,867 ) (17,534,390 ) Principal payments on
mortgage payable (7,535 ) (6,432 ) Proceeds from IPO - 13,000,000
Dividends paid (4,935,365 ) (1,720,997 ) Pre-offering costs
incurred (853 ) (1,486,798 ) Financing costs incurred (566,886 )
(87,202 ) Member contributions - 653,646 Member distributions -
(2,460,125 ) NET CASH PROVIDED BY INVESTING ACTIVITIES
11,907,895 15,699,335 NET DECREASE IN CASH
(410,320 ) (545,275 ) CASH – BEGINNING OF PERIOD 954,223
1,561,863 CASH – END OF PERIOD $ 543,903
$ 1,016,588 SUPPLEMENTAL DISCLOSURES OF CASH
FLOWS INFORMATION Interest paid $ 1,008,747 $ 545,782
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING
ACTIVITIES
During the nine months ended September 30, 2018, the Company
purchased a mortgage receivable from a third party at a discount in
the amount of $21,433.
Real estate acquired in connection with the foreclosure of
certain mortgages, inclusive of interest and other fees receivable,
during the nine months ended September 30, 2018 amounted to
$2,369,196.
The reversal of previously accrued capitalized costs during the
nine months ended September 30, 2018, amounted to $6,212.
During the nine months ended September 30, 2017, the Company
issued notes payable in the amount of $169,338 for the acquisition
of mortgages receivable.
On February 8, 2017, Sachem Capital Partners, LLC transferred
all its assets and liabilities to the Company in exchange for
6,283,237 shares of the Company’s Common stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181113005383/en/
Sachem Capital Corp.John L. Villano, 203-433-4736Co-CEO
& CFOorInvestors & Media:Crescendo Communications,
LLCDavid Waldman, 212-671-1021sach@crescendo-ir.com
Sachem Capital (AMEX:SACH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sachem Capital (AMEX:SACH)
Historical Stock Chart
From Apr 2023 to Apr 2024