| Schedule of pro forma condensed consolidated statement of operations |
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
|
Three Months Ended June 30, 2013
|
| |
|
Newcastle
|
|
|
Pro Forma
|
|
|
Newcastle
|
|
| |
|
Consolidated
|
|
|
Adjustments
|
|
|
Consolidated
|
|
| |
|
Historical (A)
|
|
|
New Residential (B)
|
|
|
Pro Forma
|
|
| |
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$ |
62,824 |
|
|
$ |
(5,863 |
) |
|
$ |
56,961 |
|
|
Interest expense
|
|
|
21,998 |
|
|
|
(1,253 |
) |
|
|
20,745 |
|
|
Net interest income
|
|
|
40,826 |
|
|
|
(4,610 |
) |
|
|
36,216 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment/(Reversal)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation allowance (reversal) on loans
|
|
|
(709 |
) |
|
|
— |
|
|
|
(709 |
) |
|
Other-than-temporary impairment on securities
|
|
|
3,430 |
|
|
|
(3,756 |
) |
|
|
(326 |
) |
|
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)
|
|
|
480 |
|
|
|
— |
|
|
|
480 |
|
| |
|
|
3,201 |
|
|
|
(3,756 |
) |
|
|
(555 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after impairment/reversal
|
|
|
37,625 |
|
|
|
(854 |
) |
|
|
36,771 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
11,721 |
|
|
|
— |
|
|
|
11,721 |
|
|
Care and ancillary income
|
|
|
2,292 |
|
|
|
— |
|
|
|
2,292 |
|
|
Total other revenues
|
|
|
14,013 |
|
|
|
— |
|
|
|
14,013 |
|
|
Other Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
5,066 |
|
|
|
(58 |
) |
|
|
5,008 |
|
|
Gain on extinguishment of debt
|
|
|
— |
|
|
|
— |
|
|
|
- |
|
|
Other income (loss), net
|
|
|
3,024 |
|
|
|
— |
|
|
|
3,024 |
|
| |
|
|
8,090 |
|
|
|
(58 |
) |
|
|
8,032 |
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and security servicing expense
|
|
|
1,021 |
|
|
|
(115 |
) |
|
|
906 |
|
|
Property operating expenses
|
|
|
8,409 |
|
|
|
— |
|
|
|
8,409 |
|
|
General and administrative expense
|
|
|
9,938 |
|
|
|
(26 |
) |
|
|
9,912 |
|
|
Management fee to affiliate
|
|
|
8,148 |
|
|
|
(1,809 |
) |
|
|
6,339 |
|
|
Depreciation and amortization
|
|
|
4,070 |
|
|
|
— |
|
|
|
4,070 |
|
| |
|
|
31,586 |
|
|
|
(1,950 |
) |
|
|
29,636 |
|
|
Income from continuing operations
|
|
|
28,142 |
|
|
|
1,038 |
|
|
|
29,180 |
|
|
Preferred dividends
|
|
|
(1,395 |
) |
|
|
— |
|
|
|
(1,395 |
) |
|
Income from continuing operations after preferred dividends
|
|
$ |
26,747 |
|
|
$ |
1,038 |
|
|
$ |
27,785 |
|
|
Income from continuing operations per share of common stock, after preferred dividends
|
|
|
|
|
|
|
Basic
|
|
$ |
0.10 |
|
|
|
|
|
|
$ |
0.11 |
|
|
Diluted
|
|
$ |
0.10 |
|
|
|
|
|
|
$ |
0.10 |
|
|
Weighted Average Number of Shares of Common
|
|
|
|
|
|
|
|
|
|
|
Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
259,228,343 |
|
|
|
|
|
|
|
259,228,343 |
|
|
Diluted
|
|
|
265,396,219 |
|
|
|
|
|
|
|
265,396,219 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Six Months Ended June 30, 2013
| |
|
Newcastle
|
|
|
Pro Forma
|
|
|
Newcastle
|
|
| |
|
Consolidated
|
|
|
Adjustments
|
|
|
Consolidated
|
|
| |
|
Historical (A)
|
|
|
New Residential (B)
|
|
|
Pro Forma
|
|
| |
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$ |
124,156 |
|
|
$ |
(12,019 |
) |
|
$ |
112,137 |
|
|
Interest expense
|
|
|
44,708 |
|
|
|
(2,152 |
) |
|
|
42,556 |
|
|
Net interest income
|
|
|
79,448 |
|
|
|
(9,867 |
) |
|
|
69,581 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment/(Reversal)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation allowance (reversal) on loans
|
|
|
1,525 |
|
|
|
— |
|
|
|
1,525 |
|
|
Other-than-temporary impairment on securities
|
|
|
4,405 |
|
|
|
(3,756 |
) |
|
|
649 |
|
|
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)
|
|
|
44 |
|
|
|
— |
|
|
|
44 |
|
| |
|
|
5,974 |
|
|
|
(3,756 |
) |
|
|
2,218 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after impairment/reversal
|
|
|
73,474 |
|
|
|
(6,111 |
) |
|
|
67,363 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
23,195 |
|
|
|
— |
|
|
|
23,195 |
|
|
Care and ancillary income
|
|
|
4,318 |
|
|
|
— |
|
|
|
4,318 |
|
|
Total other revenues
|
|
|
27,513 |
|
|
|
— |
|
|
|
27,513 |
|
|
Other Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on settlement of investments, net
|
|
|
5,063 |
|
|
|
(58 |
) |
|
|
5,005 |
|
|
Gain on extinguishment of debt
|
|
|
1,206 |
|
|
|
— |
|
|
|
1,206 |
|
|
Other income (loss), net
|
|
|
7,591 |
|
|
|
— |
|
|
|
7,591 |
|
| |
|
|
13,860 |
|
|
|
(58 |
) |
|
|
13,802 |
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and security servicing expense
|
|
|
2,055 |
|
|
|
(108 |
) |
|
|
1,947 |
|
|
Property operating expenses
|
|
|
16,772 |
|
|
|
— |
|
|
|
16,772 |
|
|
General and administrative expense
|
|
|
14,151 |
|
|
|
(38 |
) |
|
|
14,113 |
|
|
Management fee to affiliate
|
|
|
17,713 |
|
|
|
(4,134 |
) |
|
|
13,579 |
|
|
Depreciation and amortization
|
|
|
8,149 |
|
|
|
— |
|
|
|
8,149 |
|
| |
|
|
58,840 |
|
|
|
(4,280 |
) |
|
|
54,560 |
|
|
Income from continuing operations
|
|
|
56,007 |
|
|
|
(1,889 |
) |
|
|
54,118 |
|
|
Preferred dividends
|
|
|
(2,790 |
) |
|
|
— |
|
|
|
(2,790 |
) |
|
Income from continuing operations after preferred dividends
|
|
$ |
53,217 |
|
|
$ |
(1,889 |
) |
|
$ |
51,328 |
|
Income from continuing operations per share of common stock, after preferred dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
0.22 |
|
|
|
|
|
|
$ |
0.21 |
|
|
Diluted
|
|
$ |
0.21 |
|
|
|
|
|
|
$ |
0.20 |
|
Weighted Average Number of Shares of Common Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
247,249,101 |
|
|
|
|
|
|
|
247,249,101 |
|
|
Diluted
|
|
|
252,807,613 |
|
|
|
|
|
|
|
252,807,613 |
|
|
(A)
|
Represents Newcastle’s historical consolidated statement of operations for the three and six months ended June 30, 2013.
|
|
(B)
|
Represents the portion of New Residential’s historical consolidated statement of operations for the period from April 1, 2013 to May 15, 2013 and from January 1, 2013 to May 15, 2013 that is not included in Newcastle’s income (loss) from discontinued operations.
|
|