SOURCE: Centerline Holding Company (CharterMac)

Centerline Holding Company (CharterMac)

November 12, 2010 09:00 ET

Centerline Holding Company Reports Third Quarter 2010 Financial Results

NEW YORK, NY--(Marketwire - November 12, 2010) - Centerline Holding Company (OTCBB: CLNH) ("Centerline" or the "Company"), the parent company of Centerline Capital Group, a provider of real estate financial and asset management services, focused on affordable and conventional multifamily housing, today announced financial results for the third quarter and nine months ended September 30, 2010.

The tables below present Centerline's Condensed Consolidated Balance Sheets for the periods at September 30, 2010 and December 31, 2009*; and Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2010 and 2009*. For more detailed financial information, please access the Financial Overview Presentation, available in the "Investor Relations" section of the Company's website at http://ir.centerline.com.

*    On March 5, 2010, Centerline completed a series of transactions with
     an affiliate of Island Capital Group LLC, C-III Capital Partners LLC,
     and the Company's creditors and preferred shareholders (the "March
     2010 Restructuring"). Prior periods in the accompanying Condensed
     Consolidated Financial Statements have been reclassified to reflect
     the March 2010 Restructuring and the impact of discontinued operations
     in accordance with Financial Accounting Standards Board Accounting
     Standards Codification, Subtopic 205-20, Discontinued Operations.
About the Company

Centerline Capital Group, a subsidiary of Centerline Holding Company (OTCBB: CLNH), provides real estate financial and asset management services, with a focus on affordable and conventional multifamily housing. Centerline is headquartered in New York, New York. For more information, please visit Centerline's website at www.centerline.com or contact the Investor Relations Department directly at (800) 831-4826.

                       CENTERLINE  HOLDING  COMPANY
                 CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                              (in  thousands)


                                            September 30,   December 31,
                                                2010            2009
                                           --------------- ---------------
                                             (Unaudited)

          ASSETS

Cash and cash equivalents                  $       123,674 $        88,853
Restricted cash                                     13,027          11,476
Investments:
  Available-for-sale                               515,087         489,767
  Equity method                                      1,115             530
  Other                                             61,072          39,037
Investments in and loans to affiliates, net          5,032           1,982
Goodwill and intangible assets, net                104,729         110,621
Mortgage servicing rights, net                      63,797          60,423
Deferred costs and other assets, net                99,416         100,460
Consolidated partnerships:
  Investments:
    Available-for-sale                               5,043           5,109
    Equity method                                3,373,881       3,571,323
  Land, buildings and improvements, net            596,904         571,520
  Other assets                                     267,150         298,528
Assets of discontinued operations                      400         653,897
                                           --------------- ---------------

Total assets                               $     5,230,327 $     6,003,526
                                           =============== ===============

          LIABILITIES AND EQUITY

Liabilities:
  Notes payable                            $       212,178 $       249,764
  Financing arrangements and secured
   financing                                       638,653         585,528
  Accounts payable, accrued expenses and
   other liabilities                               243,563         343,696
  Preferred shares of subsidiary (subject
   to mandatory repurchase)                        128,500         128,500
  Consolidated partnerships:
    Notes payable                                  151,695         155,810
    Due to property partnerships                   104,855         209,868
    Other liabilities                              283,808         226,391
  Liabilities of discontinued operations               742       1,588,054
                                           --------------- ---------------

Total liabilities                                1,763,994       3,487,611

Redeemable securities                               12,328         332,480

Commitments and contingencies

  Equity:

    Centerline Holding Company total               237,790      (1,178,350)
                                           --------------- ---------------

    Non-controlling interests                    3,216,215       3,361,785
                                           --------------- ---------------

    Total equity                                 3,454,005       2,183,435
                                           --------------- ---------------

Total liabilities and equity               $     5,230,327 $     6,003,526
                                           =============== ===============





                        CENTERLINE HOLDING COMPANY
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share amounts)
                                (Unaudited)


                                  Three Months Ended    Nine Months Ended
                                    September 30,         September 30,
                             -----------------------  --------------------
                                2010         2009       2010       2009
                             ---------     ---------  ---------  ---------
Revenues:
  Interest income            $  10,814     $  13,138  $  33,354  $  40,425
  Fee income                     6,872         7,648     23,460     22,009
  Other                          8,122         3,586     20,440     13,047
  Consolidated partnerships:
    Interest income                477           609      1,300      2,885
    Rental income               27,395        19,071     79,300     55,850
    Other                          299           327      2,923        698
                             ---------     ---------  ---------  ---------
      Total revenues            53,979        44,379    160,777    134,914
                             ---------     ---------  ---------  ---------
Expenses:
  General and administrative    19,309        19,706    106,749     67,124
  Provision (recovery) for
   losses, net                   5,236        94,500    (94,093)   132,354
  Interest                      18,815        19,551     49,342     42,321
  Interest - distributions to
   preferred shareholders of
   subsidiary                    2,320         2,319      6,959     11,768
  Depreciation and
   amortization                  5,645         7,401     17,705     27,874
  Loss on impairment of assets  24,492        72,886     59,519     81,759
  Consolidated partnerships:
    Interest                     3,645         2,980     12,528      7,365
    Loss on impairment of
     assets                      1,150            --     23,350     30,151
    Other expenses              42,461        35,830    189,124    110,243
                             ---------     ---------  ---------  ---------
      Total expenses           123,073       255,173    371,183    510,959
                             ---------     ---------  ---------  ---------

Loss before other income       (69,094)     (210,794)  (210,406)  (376,045)

Other (loss) income:
  Equity and other (loss)
   income, net                     (14)       (1,783)      (198)    (9,048)
  Gain on settlement of
   liabilities                      --            --     25,253         --
  Gain from repayment or sale
   of investments, net             121             6      2,323        583
  Other losses from
   consolidated partnerships   (69,984)      (62,311)  (299,928)  (524,021)
                             ---------     ---------  ---------  ---------

Loss from continuing
 operations before income
 tax provision                (138,971)     (274,882)  (482,956)  (908,531)
Income tax provision -
 continuing operations             434           (56)      (100)      (276)
                             ---------     ---------  ---------  ---------

Net loss from continuing
 operations                   (138,537)     (274,938)  (483,056)  (908,807)

Discontinued operations:
Income (loss) from discontinued
 operations before income
 taxes                             618    (1,399,962)   140,676 (1,889,385)
Gain on sale of discontinued
 operations, net                    --            --     20,500         --
Income tax (provision) benefit
 - discontinued operations          --          (722)      (531)      (747)
                             ---------     ---------  ---------  ---------

Net income (loss) from
 discontinued operations           618    (1,400,684)   160,645 (1,890,132)
                             ---------     ---------  ---------  ---------

Net loss                      (137,919)   (1,675,622)  (322,411)(2,798,939)
                             ---------     ---------  ---------  ---------

Net loss attributable to
 non-controlling interests     106,653     1,391,470    396,933  2,434,561
                             ---------     ---------  ---------  ---------

Net income (loss)
 attributable to
 Centerline Holding
 Company shareholders        $ (31,266)    $(284,152) $  74,522  $(364,378)
                             =========     =========  =========  =========

Net income (loss) per share:
  Basic
    Income (loss) from
     continuing operations   $   (0.09)    $   (1.65) $    1.12  $   (2.68)
                             =========     =========  =========  =========
    Income (loss) from
     discontinued operations $      -- (1) $   (3.73) $    0.25  $   (4.44)
                             =========     =========  =========  =========
  Diluted
    Income (loss) from
     continuing operations   $   (0.09)    $   (1.65) $    1.12  $   (2.68)
                             =========     =========  =========  =========

    Income (loss) from
     discontinued operations $      -- (1) $   (3.73) $    0.25  $   (4.44)
                             =========     =========  =========  =========

Weighted average shares
 outstanding:
  Basic                        348,302        54,058    279,830     53,896
                             =========     =========  =========  =========
  Diluted                      348,302        54,058    280,785     53,896
                             =========     =========  =========  =========

(1) Amount calculates to less than one cent loss per share.

This press release contains forward-looking statements about Centerline Holding Company. Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q for the first, second and third quarters of 2010 filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; risk of allocations of income to our shareholders without corresponding cash distributions; possible adverse effects of a future issuance of shares or a reverse share split; possible deterioration in cash flows generated by material investments, such as the Freddie Mac B-Certificate; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contact Information

  • AT THE COMPANY
    Hande Tuney
    Investor Relations
    (800) 831-4826