e8vk
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): May 9, 2007
Commission File Number 1-13610
PMC COMMERCIAL TRUST
(Exact name of registrant as specified in its charter)
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TEXAS
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75-6446078 |
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(State or other jurisdiction
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(I.R.S. Employer Identification No.) |
of incorporation or organization) |
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17950 Preston Road, Suite 600, Dallas, TX 75252
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(972) 349-3200 |
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(Address of principal executive offices)
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(Registrants telephone number) |
Former name, former address and former fiscal year, if changed since last report: NONE
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition
On May 9, 2007, PMC Commercial Trust issued a press release describing, among other things,
its results of operations for the three months ended March 31, 2007. A copy of the press release
is attached as Exhibit 99.1 to this report. This information shall not be deemed filed for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or
incorporated by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
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(a) |
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Not applicable. |
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(b) |
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Not applicable. |
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(c) |
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Exhibits |
99.1 Press Release dated May 9, 2007.
SIGNATURE
Pursuant to the requirements of Section 13 or 15 (d) 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.
Date: May 10, 2007
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PMC COMMERCIAL TRUST
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By: |
/s/ Barry N. Berlin
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Barry N. Berlin, Chief Financial Officer |
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exv99w1
Exhibit 99.1
FOR IMMEDIATE PRESS RELEASE
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FOR:
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PMC Commercial Trust
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CONTACT:
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Investor Relations |
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17950 Preston Road, Suite 600
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972-349-3235 |
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Dallas, TX 75252 |
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PMC Commercial Trust Announces First Quarter Results
PMC Commercial Trust
AMEX (Symbol PCC)
PMC Commercial Trust (AMEX: PCC) announced first quarter results today. Income from continuing
operations decreased to $2,969,000 ($0.27 per share) during the three months ended March 31, 2007
from $3,259,000 ($0.30 per share) during the three months ended March 31, 2006. The decrease of
$290,000 was primarily a result of (1) a decrease in income from our retained interests in
transferred assets of $352,000 primarily due to a decrease in our weighted average balance
outstanding as a result of prepayments, (2) a decrease in other income of $168,000 due primarily to
decreased prepayment fee income and (3) an increase in our combined general and administrative and
salaries and related benefits expense of $196,000 resulting primarily from costs of evaluation of
new investments and alternative sources of funds. Partially offsetting these decreases was an
increase in interest income of $374,000 due to increases in variable interest rates and our
weighted average loans outstanding.
For the three months ended March 31, 2007, net income was $2,821,000, or $0.26 per share, compared
to $5,041,000, or $0.47 per share, for the three months ended March 31, 2006. Net income decreased
by $2,220,000 primarily due to net gains on sales of real estate included in discontinued
operations during the three months ended March 31, 2006 of $1,877,000 resulting primarily from the
sale of six hotel properties.
We have deferred the recognition of gains on the sale of certain hotel properties and assets
acquired in liquidation. Our deferred gains total approximately $2.0 million at March 31, 2007 of
which approximately $425,000 was generated during the first quarter of 2007. These deferred gains
will be recorded to income as principal is received on the related loans receivable or upon receipt
of updated financial information from the purchaser that qualify the transaction for gain
recognition.
Dr. Andrew S. Rosemore, Chairman of the Board, stated, During the first quarter of 2006 we gained
possession of 15 Amerihost hotel properties as a result of the Arlington bankruptcy. Through the
effort of many of our employees, we ended the first quarter of 2007 with only two remaining unsold
(one property was leased). These sales resulted in significant gains above book value and the
underlying loans to facilitate the sales are performing well. Following quarter end, we sold one
of these properties and a sale of the remaining property is currently pending.
Loan origination volume for the first quarter of 2007 was $15.4 million which includes $1.4
million as the result of financing the sale of an asset acquired in liquidation. While this loan
origination volume is less than the volume of $17.6 million during the first quarter of 2006, that
quarter included $13.0 million funded to facilitate Amerihost or other property sales.
As I stated previously, we are faced with many challenges related to the inverted or flat yield
curve and an increasingly competitive environment. We are continuing our renewed emphasis on our
SBA 7(a) government guaranteed loan program and evaluating opportunities which could include real
estate ownership. Prepayments of our existing and securitized portfolio continue to create a
challenge and totaled $22.4 million during the quarter.
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PMC COMMERCIAL TRUST Page 2
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Earnings Press Release
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May 9, 2007 |
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The following tables contain comparative selected financial data as of March 31, 2007 and
December 31, 2006 and for the three and months ended March 31, 2007 and 2006:
FINANCIAL POSITION INFORMATION
(In thousands)
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March 31, |
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December 31, |
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Increase |
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2007 |
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2006 |
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(Decrease)% |
Loans receivable, net |
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$ |
165,725 |
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$ |
169,181 |
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(2 |
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Retained interests in transferred assets |
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$ |
54,813 |
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$ |
55,724 |
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(2 |
%) |
Real estate investments |
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$ |
4,372 |
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$ |
4,414 |
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(1 |
%) |
Total assets |
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$ |
242,879 |
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$ |
240,404 |
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1 |
% |
Debt |
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$ |
69,100 |
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$ |
68,509 |
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1 |
% |
Total beneficiaries equity |
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$ |
156,975 |
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$ |
157,291 |
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Shares outstanding |
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10,754 |
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10,754 |
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PMC COMMERCIAL TRUST Page 3
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Earnings Press Release
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May 9, 2007 |
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RESULTS OF OPERATIONS
(Dollars in thousands, except per share information)
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Three Months Ended March 31, |
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2007 |
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2006 |
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Inc (Dec)% |
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Income: |
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Interest income |
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$ |
4,056 |
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$ |
3,682 |
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10 |
% |
Income from retained interests in transferred assets |
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1,901 |
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2,253 |
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(16 |
%) |
Hotel property revenues |
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169 |
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301 |
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(44 |
%) |
Other income |
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741 |
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909 |
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(18 |
%) |
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Total income |
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6,867 |
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7,145 |
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(4 |
%) |
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Expenses: |
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Interest |
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1,352 |
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1,434 |
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(6 |
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Salaries and related benefits |
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1,167 |
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1,060 |
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10 |
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General and administrative |
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739 |
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650 |
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14 |
% |
Hotel property expenses |
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148 |
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237 |
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(38 |
%) |
Impairments and provisions |
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328 |
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399 |
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(18 |
%) |
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Total expenses |
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3,734 |
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3,780 |
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(1 |
%) |
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Income before income tax provision, minority interest,
and discontinued operations |
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3,133 |
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3,365 |
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(7 |
%) |
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Income tax provision |
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(142 |
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(84 |
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69 |
% |
Minority interest (preferred stock dividend of subsidiary) |
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(22 |
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(22 |
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Income from continuing operations |
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2,969 |
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3,259 |
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(9 |
%) |
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Discontinued operations |
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(148 |
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1,782 |
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(108 |
%) |
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Net income |
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$ |
2,821 |
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$ |
5,041 |
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(44 |
%) |
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Basic weighted average shares outstanding |
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10,754 |
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10,746 |
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Basic and diluted earnings per share: |
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Income from continuing operations |
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$ |
0.27 |
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$ |
0.30 |
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(10 |
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Discontinued operations |
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(0.01 |
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0.17 |
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(106 |
%) |
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Net income |
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$ |
0.26 |
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$ |
0.47 |
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(45 |
%) |
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PMC COMMERCIAL TRUST
Page 4
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Earnings Press Release
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May 9, 2007 |
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REAL ESTATE INVESTMENT TRUST (REIT) TAXABLE INCOME
REIT taxable income is presented to assist investors in analyzing our performance and is a measure
that is presented quarterly in our consolidated financial statements and is one of the factors
utilized by our Board of Trust Managers in determining the level of dividends to be paid to our
shareholders.
The following reconciles net income to REIT taxable income:
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Three Months Ended |
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March 31, |
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2007 |
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2006 |
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(In thousands) |
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Net income |
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$ |
2,821 |
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$ |
5,041 |
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Less: taxable REIT subsidiaries net income, net of
tax |
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(244 |
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(178 |
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Add: book depreciation |
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46 |
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71 |
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Less: tax depreciation |
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(57 |
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(334 |
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Book/tax difference on property sales |
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419 |
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350 |
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Book/tax difference on retained interests in
transferred assets, net |
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294 |
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228 |
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Impairment losses |
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233 |
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43 |
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Provision for loss on rent and related receivables |
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239 |
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300 |
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Book/tax difference on amortization and accretion |
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(74 |
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(37 |
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Asset valuation |
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(302 |
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(889 |
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Other book/tax differences, net |
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264 |
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42 |
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REIT taxable income |
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$ |
3,639 |
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$ |
4,637 |
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Common distributions declared |
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$ |
3,226 |
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$ |
3,223 |
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Weighted average common shares outstanding |
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10,754 |
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10,746 |
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CERTAIN MATTERS DISCUSSED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS INTENDED TO
QUALIFY FOR THE SAFE HARBORS FROM LIABILITY ESTABLISHED BY THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. THESE FORWARD-LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED AS SUCH BECAUSE
THE CONTEXT OF THE STATEMENT WILL INCLUDE WORDS SUCH AS THE COMPANY EXPECTS, ANTICIPATES OR
WORDS OF SIMILAR IMPORT. SIMILARLY, STATEMENTS THAT DESCRIBE THE COMPANYS FUTURE PLANS,
OBJECTIVES OR GOALS ARE ALSO FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE
SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES, INCLUDING THE FINANCIAL PERFORMANCE OF THE COMPANY,
REAL ESTATE CONDITIONS AND MARKET VALUATIONS OF ITS STOCK, WHICH COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED. ALTHOUGH THE COMPANY BELIEVES THE
EXPECTATIONS REFLECTED IN ANY FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, THE
COMPANY CAN GIVE NO ASSURANCE THAT ITS EXPECTATIONS WILL BE ATTAINED. SHAREHOLDERS, POTENTIAL
INVESTORS AND OTHER READERS ARE URGED TO CONSIDER THESE FACTORS CAREFULLY IN EVALUATING THE
FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING STATEMENTS MADE HEREIN ARE ONLY MADE AS OF THE
DATE OF THIS PRESS RELEASE AND THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE SUCH
FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.
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