UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2007
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-31458
Newcastle Investment Corp.
(Exact name of registrant as specified in its charter)
Maryland | 81-0559116 | ||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
1345 Avenue of the Americas, New York, NY | 10105 | ||
(Address of principal executive offices) | (Zip Code) |
(212) 798-6100 | ||||||
(Registrant’s telephone number, including area code) | ||||||
(Former name, former address and former fiscal year, if changed since last report) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of ‘‘accelerated filer and large accelerated filer’’ in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer Accelerated filer Non-accelerated filer
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date.
Common stock, $0.01 par value per share: 52,779,179 shares outstanding as of August 3, 2007.
NEWCASTLE INVESTMENT CORP.
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
June 30,
2007 |
December 31,
2006 |
|||||||||||
(Unaudited) | ||||||||||||
Assets | ||||||||||||
Real estate securities, available for sale | $ | 5,338,347 | $ | 5,581,228 | ||||||||
Real estate related loans, net | 2,060,789 | 1,568,916 | ||||||||||
Residential mortgage loans, net | 698,453 | 809,097 | ||||||||||
Subprime mortgage loans, held for sale | 1,095,821 | — | ||||||||||
Subprime mortgage loans subject to call option – Note 5 | 289,742 | 288,202 | ||||||||||
Investments in unconsolidated subsidiaries | 22,634 | 22,868 | ||||||||||
Operating real estate, net | 31,553 | 29,626 | ||||||||||
Cash and cash equivalents | 103,863 | 5,371 | ||||||||||
Restricted cash | 241,248 | 184,169 | ||||||||||
Derivative assets | 76,789 | 62,884 | ||||||||||
Receivables and other assets | 64,329 | 52,031 | ||||||||||
$ | 10,023,568 | $ | 8,604,392 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities | ||||||||||||
CBO bonds payable | $ | 3,924,672 | $ | 4,313,824 | ||||||||
Other bonds payable | 621,562 | 675,844 | ||||||||||
Notes payable | 93,793 | 128,866 | ||||||||||
Repurchase agreements | 2,450,517 | 760,346 | ||||||||||
Repurchase agreements subject to ABCP facility | 1,281,156 | 1,143,749 | ||||||||||
Financing of subprime mortgage loans subject to call option – Note 5 | 289,742 | 288,202 | ||||||||||
Credit facility | — | 93,800 | ||||||||||
Junior subordinated notes payable (security for trust preferred) | 100,100 | 100,100 | ||||||||||
Derivative liabilities | 8,000 | 17,715 | ||||||||||
Dividends payable | 40,786 | 33,095 | ||||||||||
Due to affiliates | 7,741 | 13,465 | ||||||||||
Accrued expenses and other liabilities | 72,113 | 33,406 | ||||||||||
8,890,182 | 7,602,412 | |||||||||||
Stockholders’ Equity | ||||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 2,500,000 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 1,600,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock and 2,000,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding (Series D issued in 2007) | 152,500 | 102,500 | ||||||||||
Common stock, $0.01 par value, 500,000,000 shares authorized, 52,779,179 and 45,713,817 shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively | 528 | 457 | ||||||||||
Additional paid-in capital | 1,033,316 | 833,887 | ||||||||||
Dividends in excess of earnings | (14,699 | ) | (10,848 | ) | ||||||||
Accumulated other comprehensive income (loss) | (38,259 | ) | 75,984 | |||||||||
1,133,386 | 1,001,980 | |||||||||||
$ | 10,023,568 | $ | 8,604,392 |
1
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(dollars in thousands, except share data)
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Interest income | $ | 191,869 | $ | 124,209 | $ | 354,090 | $ | 238,116 | ||||||||||||||||
Rental and escalation income | 1,322 | 774 | 2,575 | 2,782 | ||||||||||||||||||||
Gain on sale of investments, net | 6,977 | 5,493 | 9,189 | 7,421 | ||||||||||||||||||||
Other income (loss), net | 5,753 | (1,449 | ) | 6,496 | 4,256 | |||||||||||||||||||
205,921 | 129,027 | 372,350 | 252,575 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Interest expense | 133,917 | 87,909 | 250,674 | 164,874 | ||||||||||||||||||||
Loss on extinguishment of debt – Note 6 | 7,280 | — | 7,280 | — | ||||||||||||||||||||
Property operating expense | 1,044 | 949 | 2,080 | 1,767 | ||||||||||||||||||||
Loan and security servicing expense | 3,698 | 1,402 | 5,681 | 3,408 | ||||||||||||||||||||
Provision for credit losses | 3,089 | 1,179 | 5,125 | 3,186 | ||||||||||||||||||||
Provision for losses, loans held for sale – Note 5 | 5,754 | — | 5,754 | 4,127 | ||||||||||||||||||||
General and administrative expense | 1,478 | 1,161 | 2,815 | 2,791 | ||||||||||||||||||||
Management fee to affiliate | 4,545 | 3,474 | 8,451 | 6,945 | ||||||||||||||||||||
Incentive compensation to affiliate | 2,521 | 2,834 | 6,209 | 5,686 | ||||||||||||||||||||
Depreciation and amortization | 342 | 278 | 671 | 477 | ||||||||||||||||||||
163,668 | 99,186 | 294,740 | 193,261 | |||||||||||||||||||||
Other Gains (Losses) | ||||||||||||||||||||||||
Other-than-temporary impairment – Note 3 | 5,953 | — | 5,953 | — | ||||||||||||||||||||
Income before equity in earnings of unconsolidated subsidiaries | 36,300 | 29,841 | 71,657 | 59,314 | ||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 819 | 1,215 | 1,666 | 2,410 | ||||||||||||||||||||
Income from continuing operations | 37,119 | 31,056 | 73,323 | 61,724 | ||||||||||||||||||||
Income (loss) from discontinued operations | (6 | ) | (26 | ) | (19 | ) | 225 | |||||||||||||||||
Net Income | 37,113 | 31,030 | 73,304 | 61,949 | ||||||||||||||||||||
Preferred dividends | (3,375 | ) | (2,329 | ) | (5,890 | ) | (4,657 | ) | ||||||||||||||||
Income Available For Common Stockholders | $ | 33,738 | $ | 28,701 | $ | 67,414 | $ | 57,292 | ||||||||||||||||
Net Income Per Share of Common Stock | ||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.65 | $ | 1.35 | $ | 1.30 | ||||||||||||||||
Diluted | $ | 0.64 | $ | 0.65 | $ | 1.34 | $ | 1.30 | ||||||||||||||||
Income from continuing operations per share of common stock, after preferred dividends | ||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.65 | $ | 1.35 | $ | 1.29 | ||||||||||||||||
Diluted | $ | 0.64 | $ | 0.65 | $ | 1.34 | $ | 1.29 | ||||||||||||||||
Income (loss) from discontinued operations per share of common stock | ||||||||||||||||||||||||
Basic | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.01 | |||||||||||||
Diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.01 | |||||||||||||
Weighted Average Number of Shares of Common Stock Outstanding | ||||||||||||||||||||||||
Basic | 52,273,988 | 43,990,635 | 49,936,428 | 43,967,854 | ||||||||||||||||||||
Diluted | 52,467,019 | 44,071,310 | 50,158,085 | 44,067,645 | ||||||||||||||||||||
Dividends Declared per Share of Common Stock | $ | 0.720 | $ | 0.650 | $ | 1.410 | $ | 1.275 |
2
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(dollars in thousands)
Preferred Stock | Common Stock | Additional
Paid-in Capital |
Dividends in
Excess of Earnings |
Accum. Other
Comp. Income (Loss) |
Total
Stockholders’ Equity |
|||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity – December 31, 2006 | 4,100,000 | $ | 102,500 | 45,713,817 | $ | 457 | $ | 833,887 | $ | (10,848 | ) | $ | 75,984 | $ | 1,001,980 | |||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (77,155 | ) | — | (77,155 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 6,980,000 | 70 | 199,687 | — | — | 199,757 | ||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | 83,198 | 1 | 1,442 | — | — | 1,443 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to directors | — | — | 2,164 | — | 60 | — | — | 60 | ||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 2,000,000 | 50,000 | — | — | (1,760 | ) | — | — | 48,240 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 73,304 | — | 73,304 | ||||||||||||||||||||||||||||||||||||||||
Net unrealized (loss) on securities | — | — | — | — | — | — | (151,730 | ) | (151,730 | ) | ||||||||||||||||||||||||||||||||||||||
Reclassification of net realized (gain) loss on securities into earnings | — | — | — | — | — | — | (14,278 | ) | (14,278 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 1,728 | 1,728 | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | — | — | — | — | 49,440 | 49,440 | ||||||||||||||||||||||||||||||||||||||||
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | — | — | — | — | — | — | 597 | 597 | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | (40,939 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity – June 30, 2007 | 6,100,000 | $ | 152,500 | 52,779,179 | $ | 528 | $ | 1,033,316 | $ | (14,699 | ) | $ | (38,259 | ) | $ | 1,133,386 | ||||||||||||||||||||||||||||||||
Stockholders’ equity – December 31, 2005 | 4,100,000 | $ | 102,500 | 43,913,409 | $ | 439 | $ | 782,735 | $ | (13,235 | ) | $ | 45,564 | $ | 918,003 | |||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | (60,736 | ) | — | (60,736 | ) | ||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | 84,000 | 1 | 1,439 | — | — | 1,440 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to directors | — | — | 2,408 | — | 60 | — | — | 60 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 61,949 | — | 61,949 | ||||||||||||||||||||||||||||||||||||||||
Net unrealized (loss) on securities | — | — | — | — | — | — | (73,164 | ) | (73,164 | ) | ||||||||||||||||||||||||||||||||||||||
Reclassification of net realized (gain) on securities into earnings | — | — | — | — | — | — | (1,694 | ) | (1,694 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 795 | 795 | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | — | — | — | — | 96,649 | 96,649 | ||||||||||||||||||||||||||||||||||||||||
Reclassification of net realized (gain) on derivatives designated as cash flow hedges into earnings | — | — | — | — | — | — | (2,954 | ) | (2,954 | ) | ||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 81,581 | |||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity – June 30, 2006 | 4,100,000 | $ | 102,500 | 43,999,817 | $ | 440 | $ | 784,234 | $ | (12,022 | ) | $ | 65,196 | $ | 940,348 |
3
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(dollars in thousands)
Six Months Ended June 30, | |||||||||||||||
2007 | 2006 | ||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net income | $ | 73,304 | $ | 61,949 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations): | |||||||||||||||
Depreciation and amortization | 671 | 477 | |||||||||||||
Accretion of discount and other amortization | (13,649 | ) | (11,969 | ) | |||||||||||
Equity in earnings of unconsolidated subsidiaries | (1,666 | ) | (2,410 | ) | |||||||||||
Distributions of earnings from unconsolidated subsidiaries | 1,666 | 2,410 | |||||||||||||
Deferred rent | 151 | (1,057 | ) | ||||||||||||
Gain on sale of investments | (9,113 | ) | (7,784 | ) | |||||||||||
Unrealized gain on non-hedge derivatives and hedge ineffectiveness | (6,338 | ) | (4,167 | ) | |||||||||||
Loss on extinguishment of debt | 6,260 | — | |||||||||||||
Provision for credit losses | 5,125 | 3,186 | |||||||||||||
Provision for losses, loans held for sale | 5,754 | 4,127 | |||||||||||||
Other-than-temporary impairment | 5,953 | — | |||||||||||||
Purchase of loans held for sale – Notes 4 and 5 | (1,089,202 | ) | (1,511,086 | ) | |||||||||||
Sale of loans held for sale – Note 5 | — | 1,507,588 | |||||||||||||
Non-cash directors’ compensation | 60 | 60 | |||||||||||||
Change in: | |||||||||||||||
Restricted cash | 71,067 | 10,958 | |||||||||||||
Receivables and other assets | (10,458 | ) | 2,633 | ||||||||||||
Due to affiliates | (5,724 | ) | (1,939 | ) | |||||||||||
Accrued expenses and other liabilities | 899 | 3,687 | |||||||||||||
Net cash provided by (used in) operating activities | (965,240 | ) | 56,663 | ||||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Purchase of real estate securities | (289,027 | ) | (807,396 | ) | |||||||||||
Proceeds from sale of real estate securities | 116,555 | 273,062 | |||||||||||||
Purchase of and advances on loans | (862,978 | ) | (407,862 | ) | |||||||||||
Repayments of loan and security principal | 632,005 | 291,759 | |||||||||||||
Margin received on derivative instruments | 55,152 | — | |||||||||||||
Return of margin on derivative instruments | (39,960 | ) | 30,350 | ||||||||||||
Margin deposits on total rate of return swaps (treated as derivative instruments) | (56,249 | ) | (30,060 | ) | |||||||||||
Return of margin deposits on total rate of return swaps (treated as derivative instruments) | 59,941 | 23,593 | |||||||||||||
Proceeds from termination of derivative instruments | 24,191 | 17,955 | |||||||||||||
Proceeds from sale of derivative instrument into Securitization Trust – Note 5 | — | 5,623 | |||||||||||||
Purchase and improvement of operating real estate | (865 | ) | (806 | ) | |||||||||||
Contributions to unconsolidated subsidiaries | (201 | ) | (100 | ) | |||||||||||
Distributions of capital from unconsolidated subsidiaries | 435 | 1,214 | |||||||||||||
Net cash used in investing activities | (361,001 | ) | (602,668 | ) |
Continued on Page 5
4
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(dollars in thousands)
Six Months Ended June 30, | |||||||||||||||
2007 | 2006 | ||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||
Repayments of CBO bonds payable | (984,776 | ) | (10,672 | ) | |||||||||||
Issuance of other bonds payable | 587,628 | 240,719 | |||||||||||||
Repayments of other bonds payable | (55,123 | ) | (259,101 | ) | |||||||||||
Repayments of notes payable | (35,073 | ) | (74,802 | ) | |||||||||||
Borrowings under repurchase agreements | 3,399,557 | 2,305,541 | |||||||||||||
Repayments of repurchase agreements | (1,709,386 | ) | (1,732,662 | ) | |||||||||||
Issuance of repurchase agreement subject to ABCP facility | 247,409 | — | |||||||||||||
Repayments of repurchase agreement subject to ABCP facility | (110,002 | ) | — | ||||||||||||
Draws under credit facility | 382,800 | 274,900 | |||||||||||||
Repayments of credit facility | (476,600 | ) | (244,400 | ) | |||||||||||
Issuance of junior subordinated notes payable | — | 100,100 | |||||||||||||
Issuance of common stock | 199,791 | — | |||||||||||||
Costs related to issuance of common stock | — | — | |||||||||||||
Exercise of common stock options | 1,443 | 1,440 | |||||||||||||
Issuance of preferred stock | 50,000 | ||||||||||||||
Costs related to issuance of preferred stock | (1,760 | ) | — | ||||||||||||
Dividends paid | (69,464 | ) | (59,636 | ) | |||||||||||
Payment of deferred financing costs | (1,711 | ) | (6,653 | ) | |||||||||||
Net cash provided by financing activities | 1,424,733 | 534,774 | |||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 98,492 | (11,231 | ) | ||||||||||||
Cash and Cash Equivalents, Beginning of Period | 5,371 | 21,275 | |||||||||||||
Cash and Cash Equivalents, End of Period | $ | 103,863 | $ | 10,044 | |||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||||||
Cash paid during the period for interest expense | $ | 231,226 | $ | 156,634 | |||||||||||
Cash paid during the period for income taxes | $ | — | $ | 244 | |||||||||||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||||||||||||||
Common stock dividends declared but not paid | $ | 38,001 | $ | 28,600 | |||||||||||
Preferred stock dividends declared but not paid | $ | 2,785 | $ | 1,552 | |||||||||||
Foreclosure of loans | $ | — | $ | 12,200 | |||||||||||
Acquisition and financing of loans subject to call option | $ | — | $ | 286,315 |
5
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
JUNE 30, 2007
(dollars in tables in thousands, except share data)
1. | GENERAL |
Newcastle Investment Corp. (and its subsidiaries, ‘‘Newcastle’’) is a Maryland corporation that was formed in 2002. Newcastle conducts its business through three primary segments: (i) real estate securities and real estate related loans, (ii) residential mortgage loans, and (iii) operating real estate.
Newcastle is organized and conducts its operations to qualify as a real estate investment trust (‘‘REIT’’) for U.S. federal income tax purposes. As such, Newcastle will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements.
Newcastle is party to a management agreement (the ‘‘Management Agreement’’) with FIG LLC (the ‘‘Manager’’), an affiliate of Fortress Investment Group LLC, under which the Manager advises Newcastle on various aspects of its business and manages its day-to-day operations, subject to the supervision of Newcastle’s board of directors. For its services, the Manager receives an annual management fee and incentive compensation, both as defined in the Management Agreement.
Approximately 5.1 million shares of Newcastle’s common stock were held by the Manager, through its affiliates, and its principals at June 30, 2007. In addition, the Manager, through its affiliates, held options to purchase approximately 1.5 million shares of Newcastle’s common stock at June 30, 2007.
The accompanying consolidated financial statements and related notes of Newcastle have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of Newcastle’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with Newcastle’s consolidated financial statements for the year ended December 31, 2006 and notes thereto included in Newcastle’s annual report on Form 10-K filed with the Securities and Exchange Commission. Capitalized terms used herein, and not otherwise defined, are defined in Newcastle’s consolidated financial statements for the year ended December 31, 2006.
6
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
JUNE 30, 2007
(dollars in tables in thousands, except share data)
2. | INFORMATION REGARDING BUSINESS SEGMENTS |
Newcastle conducts its business through three primary segments: real estate securities and real estate related loans, residential mortgage loans, and operating real estate.
Summary financial data on Newcastle’s segments is given below, together with a reconciliation to the same data for Newcastle as a whole:
Real Estate
Securities and Real Estate Related Loans |
Residential
Mortgage Loans |
Operating
Real Estate |
Unallocated | Total | ||||||||||||||||||||||||||
June 30, 2007 and the Six Months then Ended | ||||||||||||||||||||||||||||||
Gross revenues | $ | 282,606 | $ | 86,877 | $ | 2,566 | $ | 301 | $ | 372,350 | ||||||||||||||||||||
Operating expenses | (1,399 | ) | (15,182 | ) | (2,167 | ) | (17,367 | ) | (36,115 | ) | ||||||||||||||||||||
Operating income (loss) | 281,207 | 71,695 | 399 | (17,066 | ) | 336,235 | ||||||||||||||||||||||||
Interest expense | (191,375 | ) | (53,200 | ) | (25 | ) | (6,074 | ) | (250,674 | ) | ||||||||||||||||||||
Loss on extinguishment of debt | (7,280 | ) | — | — | — | (7,280 | ) | |||||||||||||||||||||||
Other-than-temporary impairment | (5,953 | ) | — | — | — | (5,953 | ) | |||||||||||||||||||||||
Depreciation and amortization | — | — | (527 | ) | (144 | ) | (671 | ) | ||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 482 | — | 1,180 | 4 | 1,666 | |||||||||||||||||||||||||
Income (loss) from continuing operations | 77,081 | 18,495 | 1,027 | (23,280 | ) | 73,323 | ||||||||||||||||||||||||
Income (loss) from discontinued operations | — | — | (19 | ) | — | (19 | ) | |||||||||||||||||||||||
Net income (loss) | 77,081 | 18,495 | 1,008 | (23,280 | ) | 73,304 | ||||||||||||||||||||||||
Preferred dividends |