Company Quick10K Filing
Capstead Mortgage
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 86 $638
10-Q 2019-10-28 Quarter: 2019-09-30
10-Q 2019-07-26 Quarter: 2019-06-30
10-Q 2019-05-01 Quarter: 2019-03-31
10-K 2019-02-22 Annual: 2018-12-31
10-Q 2018-10-30 Quarter: 2018-09-30
10-Q 2018-07-30 Quarter: 2018-06-30
10-Q 2018-04-30 Quarter: 2018-03-31
10-K 2018-02-20 Annual: 2017-12-31
10-Q 2017-11-03 Quarter: 2017-09-30
10-Q 2017-08-04 Quarter: 2017-06-30
10-Q 2017-05-01 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-11-04 Quarter: 2016-09-30
10-Q 2016-08-08 Quarter: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-K 2016-02-26 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-07 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-02-27 Annual: 2014-12-31
10-Q 2014-11-05 Quarter: 2014-09-30
10-Q 2014-08-05 Quarter: 2014-06-30
10-Q 2014-05-09 Quarter: 2014-03-31
10-K 2014-02-28 Annual: 2013-12-31
10-Q 2013-11-01 Quarter: 2013-09-30
10-Q 2013-08-05 Quarter: 2013-06-30
10-K 2013-02-25 Annual: 2012-12-31
10-Q 2012-11-02 Quarter: 2012-09-30
10-Q 2012-08-03 Quarter: 2012-06-30
10-Q 2012-05-09 Quarter: 2012-03-31
10-K 2012-02-24 Annual: 2011-12-31
10-Q 2011-11-04 Quarter: 2011-09-30
10-Q 2011-08-01 Quarter: 2011-06-30
10-Q 2011-05-06 Quarter: 2011-03-31
10-K 2011-03-01 Annual: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-Q 2010-08-03 Quarter: 2010-06-30
10-Q 2010-05-04 Quarter: 2010-03-31
10-K 2010-02-26 Annual: 2009-12-31
8-K 2020-01-02 Exhibits
8-K 2019-11-12 Regulation FD, Exhibits
8-K 2019-10-23
8-K 2019-07-29 Enter Agreement, Exhibits
8-K 2019-07-26 Regulation FD, Exhibits
8-K 2019-07-24 Earnings, Exhibits
8-K 2019-05-15 Shareholder Vote
8-K 2019-05-08 Regulation FD, Exhibits
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-01-30 Earnings, Exhibits
8-K 2019-01-03 Officers, Exhibits
8-K 2018-11-13 Regulation FD, Exhibits
8-K 2018-10-24 Earnings, Exhibits
8-K 2018-08-22 Regulation FD, Exhibits
8-K 2018-07-25 Earnings, Exhibits
8-K 2018-05-16 Shareholder Vote
8-K 2018-05-08 Regulation FD, Exhibits
8-K 2018-04-25 Earnings, Exhibits
8-K 2018-02-07 Regulation FD, Exhibits
8-K 2018-01-31 Earnings, Exhibits
8-K 2018-01-03 Officers, Exhibits
CMO 2019-09-30
Item 1. Financial Statements
Part I. - Financial Information
Note 1 - Business
Note 2 - Basis of Presentation
Note 3 - Net Income (Loss) per Common Share
Note 4 - Residential Mortgage Investments
Note 5 - Secured Borrowings
Note 6 - Use of Derivatives, Offsetting Disclosures and Changes in Other Comprehensive Income By Component
Note 7 - Unsecured Borrowings
Note 8 - Capital Transactions
Note 9 - Fair Value
Note 10 - Equity Incentive Plan
Item 2. Management's Discussion and Analysis of Financial
Item 3. Quantitative and Qualitative Disclosure of Market Risks
Item 4. Controls and Procedures
Part II. - Other Information
Item 1A. Risk Factors
Item 5A. Other Information
Item 6. Exhibits
EX-10.18 cmo-ex1018_259.htm
EX-31.1 cmo-ex311_11.htm
EX-31.2 cmo-ex312_10.htm
EX-32.1 cmo-ex321_6.htm
EX-32.2 cmo-ex322_8.htm

Capstead Mortgage Earnings 2019-09-30

CMO 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
IRET 754 1,348 737 184 0 -2 105 1,426 0% 13.6 -0%
CPLG 705 2,395 1,186 860 0 -245 10 1,679 0% 167.9 -10%
APTS 660 4,981 3,196 324 0 32 291 2,945 0% 10.1 1%
RC 656 3,840 3,093 0 0 81 214 892 4.2 2%
HT 650 2,156 1,242 524 0 3 156 1,301 0% 8.4 0%
CMO 638 11,927 10,905 0 0 -54 200 459 2.3 -0%
SNR 580 2,215 1,941 470 0 -128 65 2,394 0% 36.8 -6%
OLP 556 798 503 82 0 19 62 538 0% 8.6 2%
UMH 538 915 385 139 126 -22 30 529 90% 17.5 -2%
WMC 538 5,534 4,974 0 0 42 196 369 1.9 1%

cmo-10q_20190930.htm
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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: September 30, 2019

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:  001-08896

CAPSTEAD MORTGAGE CORPORATION

(Exact name of Registrant as specified in its Charter)

Maryland

 

75-2027937

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

8401 North Central Expressway, Suite 800, Dallas, TX

 

75225-4404

(Address of principal executive offices)

 

(Zip Code)

(214) 874-2323

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of each exchange on which registered

Common Stock ($0.01 par value)

CMO

New York Stock Exchange

7.50% Series E Cumulative Redeemable    

   Preferred Stock ($0.10 par value)

CMOPRE

New York Stock Exchange

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 has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     YES          NO       

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer     Accelerated filer    Non-accelerated filer    Smaller reporting company    

Emerging growth company  

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APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock ($0.01par value)

 

94,606,455 as of October 28, 2019

 

 

 


 

 

 

CAPSTEAD MORTGAGE CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2019

 

 

INDEX

 

 

PART I. FINANCIAL INFORMATION

 

 

 

Page

ITEM 1.

Financial Statements (unaudited)

 

 

 

 

Consolidated Balance Sheets September 30, 2019 and December 31, 2018

3

 

 

 

Consolidated Statements of Operations Quarter and Nine Months Ended September 30, 2019 and 2018

4

 

 

 

Consolidated Statements of Comprehensive Income (Loss) Quarter and Nine Months Ended September 30, 2019 and 2018

5

 

 

Consolidated Statements of Stockholders’ Equity Quarter and Nine Months Ended September 30, 2019 and 2018

6

 

 

 

Consolidated Statements of Cash Flows Nine Months Ended September 30, 2019 and 2018

7

 

 

 

Notes to Consolidated Financial Statements

8

 

 

 

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosure of Market Risk

35

 

 

 

ITEM 4.

Controls and Procedures

35

 

 

 

PART II. OTHER INFORMATION

 

 

ITEM 1A.

Risk Factors

36

 

ITEM 5A.

Other Information

36

 

 

 

ITEM 6.

Exhibits

36

 

 

SIGNATURES

38

 

 

 

-2-


 

ITEM 1.    FINANCIAL STATEMENTS

PART I. FINANCIAL INFORMATION

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except pledged and per share amounts)

 

 

 

September 30, 2019

 

December 31, 2018

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Residential mortgage investments ($10.84 and $11.57 billion

   pledged at September 30, 2019 and December 31, 2018,

   respectively)

 

$

11,235,803

 

 

$

11,965,381

 

Cash collateral receivable from derivative counterparties

 

 

83,511

 

 

 

31,797

 

Derivatives at fair value

 

 

1,267

 

 

 

 

Cash and cash equivalents

 

 

68,204

 

 

 

60,289

 

Receivables and other assets

 

 

145,902

 

 

 

129,058

 

 

 

$

11,534,687

 

 

$

12,186,525

 

Liabilities

 

 

 

 

 

 

 

 

Secured borrowings

 

$

10,292,924

 

 

$

10,979,362

 

Derivatives at fair value

 

 

35,515

 

 

 

17,834

 

Unsecured borrowings

 

 

98,367

 

 

 

98,292

 

Common stock dividend payable

 

 

11,702

 

 

 

7,132

 

Accounts payable and accrued expenses

 

 

24,423

 

 

 

24,842

 

 

 

 

10,462,931

 

 

 

11,127,462

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock - $0.10 par value; 100,000 shares authorized:

 

 

 

 

 

 

 

 

   7.50% Cumulative Redeemable Preferred Stock, Series E, 10,329

   shares issued and outstanding ($258,226 aggregate liquidation

   preference) at September 30, 2019 and December 31, 2018

 

 

250,946

 

 

 

250,946

 

Common stock - $0.01 par value; 250,000 shares authorized:

 

 

 

 

 

 

 

 

   94,606 and 85,277 shares issued and outstanding at

   September 30, 2019 and December 31, 2018, respectively

 

 

946

 

 

 

853

 

Paid-in capital

 

 

1,251,807

 

 

 

1,174,880

 

Accumulated deficit

 

 

(457,662

)

 

 

(346,570

)

Accumulated other comprehensive income (loss)

 

 

25,719

 

 

 

(21,046

)

 

 

 

1,071,756

 

 

 

1,059,063

 

 

 

$

11,534,687

 

 

$

12,186,525

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

 

-3-


 

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30

 

 

September 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage investments

 

$

77,693

 

 

$

67,649

 

 

$

246,600

 

 

$

201,989

 

Other

 

 

1,065

 

 

 

350

 

 

 

2,087

 

 

 

1,063

 

 

 

 

78,758

 

 

 

67,999

 

 

 

248,687

 

 

 

203,052

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured borrowings

 

 

(62,800

)

 

 

(54,393

)

 

 

(194,524

)

 

 

(147,655

)

Unsecured borrowings

 

 

(1,910

)

 

 

(1,910

)

 

 

(5,701

)

 

 

(5,701

)

 

 

 

(64,710

)

 

 

(56,303

)

 

 

(200,225

)

 

 

(153,356

)

 

 

 

14,048

 

 

 

11,696

 

 

 

48,462

 

 

 

49,696

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on derivative instruments (net)

 

 

(9,221

)

 

 

 

 

 

(105,720

)

 

 

 

Loss on sale of investments (net)

 

 

 

 

 

 

 

 

(1,365

)

 

 

 

Compensation-related expense

 

 

(566

)

 

 

(1,913

)

 

 

(6,147

)

 

 

(5,521

)

Other general and administrative expense

 

 

(1,123

)

 

 

(1,184

)

 

 

(3,389

)

 

 

(3,320

)

Miscellaneous other revenue

 

 

58

 

 

 

81

 

 

 

149

 

 

 

233

 

 

 

 

(10,852

)

 

 

(3,016

)

 

 

(116,472

)

 

 

(8,608

)

Net income (loss)

 

 

3,196

 

 

 

8,680

 

 

 

(68,010

)

 

 

41,088

 

Less preferred stock dividends

 

 

(4,842

)

 

 

(4,842

)

 

 

(14,526

)

 

 

(14,526

)

Net (loss) income to common stockholders

 

$

(1,646

)

 

$

3,838

 

 

$

(82,536

)

 

$

26,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.02

)

 

$

0.04

 

 

$

(0.95

)

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

90,945

 

 

 

91,206

 

 

 

86,946

 

 

 

92,202

 

Diluted

 

 

90,945

 

 

 

91,346

 

 

 

86,946

 

 

 

92,317

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

-4-


 

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, unaudited)

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30

 

 

September 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income (loss)

 

$

3,196

 

 

$

8,680

 

 

$

(68,010

)

 

$

41,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gains (losses)

   related to available-for-sale securities

 

 

(2,692

)

 

 

(26,771

)

 

 

89,334

 

 

 

(87,336

)

Amounts related to cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized (losses) gains

 

 

(7,648

)

 

 

7,580

 

 

 

(22,945

)

 

 

46,385

 

Reclassification adjustment for amounts

   included in net income (loss)

 

 

(2,702

)

 

 

(11,162

)

 

 

(19,624

)

 

 

(25,776

)

 

 

 

(13,042

)

 

 

(30,353

)

 

 

46,765

 

 

 

(66,727

)

Comprehensive loss

 

$

(9,846

)

 

$

(21,673

)

 

$

(21,245

)

 

$

(25,639

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

-5-


 

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, unaudited)

 

 

 

 

Preferred

Stock

 

 

Common

Stock

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Total

Stockholders’

Equity

 

Balance at June 30, 2019

 

$

250,946

 

 

$

855

 

 

$

1,176,529

 

 

$

(444,703

)

 

$

38,761

 

 

$

1,022,388

 

Net income

 

 

 

 

 

 

 

 

3,196

 

 

 

 

 

3,196

 

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

(2,692

)

 

 

(2,692

)

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

(10,350

)

 

 

(10,350

)

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.12 per share

 

 

 

 

 

 

 

 

(11,313

)

 

 

 

 

(11,313

)

Preferred – $0.47 per share

 

 

 

 

 

 

 

 

(4,842

)

 

 

 

 

(4,842

)

Issuance of common stock

 

 

 

 

90

 

 

 

75,012

 

 

 

 

 

 

 

75,102

 

Other additions to capital

 

 

 

 

1

 

 

 

266

 

 

 

 

 

 

 

267

 

Balance at September 30, 2019

 

$

250,946

 

 

$

946

 

 

$

1,251,807

 

 

$

(457,662

)

 

$

25,719

 

 

$

1,071,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2018

 

$

250,946

 

 

$

924

 

 

$

1,237,812

 

 

$

(346,570

)

 

$

25,744

 

 

$

1,168,856

 

Net income

 

 

 

 

 

 

 

 

8,680

 

 

 

 

 

8,680

 

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

(26,771

)

 

 

(26,771

)

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

(3,582

)

 

 

(3,582

)

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.11 per share

 

 

 

 

 

 

(6,203

)

 

 

(3,838

)

 

 

 

 

(10,041

)

Preferred – $0.47 per share

 

 

 

 

 

 

 

 

(4,842

)

 

 

 

 

(4,842

)

Common stock repurchases

 

 

 

 

(14

)

 

 

(11,827

)

 

 

 

 

 

 

(11,841

)

Other additions to capital

 

 

 

 

1

 

 

 

633

 

 

 

 

 

 

 

634

 

Balance at September 30, 2018

 

$

250,946

 

 

$

911

 

 

$

1,220,415

 

 

$

(346,570

)

 

$

(4,609

)

 

$

1,121,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

$

250,946

 

 

$

853

 

 

$

1,174,880

 

 

$

(346,570

)

 

$

(21,046

)

 

$

1,059,063

 

Net loss

 

 

 

 

 

 

 

 

(68,010

)

 

 

 

 

(68,010

)

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

89,334

 

 

 

89,334

 

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

(42,569

)

 

 

(42,569

)

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.32 per share

 

 

 

 

 

 

 

 

(28,557

)

 

 

 

 

(28,557

)

Preferred – $1.41 per share

 

 

 

 

 

 

 

 

(14,525

)

 

 

 

 

(14,525

)

Issuance of common stock

 

 

 

 

90

 

 

 

75,012

 

 

 

 

 

 

 

75,102

 

Other additions to capital

 

 

 

 

3

 

 

 

1,915

 

 

 

 

 

 

 

1,918

 

Balance at September 30, 2019

 

$

250,946

 

 

$

946

 

 

$

1,251,807

 

 

$

(457,662

)

 

$

25,719

 

 

$

1,071,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

$

250,946

 

 

$

957

 

 

$

1,271,425

 

 

$

(346,570

)

 

$

62,118