Company Quick10K Filing
Capstead Mortgage
Price7.64 EPS-1
Shares95 P/E-11
MCap723 P/FCF6
Net Debt-68 EBIT132
TEV655 TEV/EBIT5
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-04
10-Q 2020-03-31 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-10-28
10-Q 2019-06-30 Filed 2019-07-26
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-10-30
10-Q 2018-06-30 Filed 2018-07-30
10-Q 2018-03-31 Filed 2018-04-30
10-K 2017-12-31 Filed 2018-02-20
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-01
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-09-30 Filed 2016-11-04
10-Q 2016-06-30 Filed 2016-08-08
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-01
10-Q 2013-06-30 Filed 2013-08-05
10-K 2012-12-31 Filed 2013-02-25
10-Q 2012-09-30 Filed 2012-11-02
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-02-24
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-01
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-03-01
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-03
10-Q 2010-03-31 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-08-18 Officers, Regulation FD, Exhibits
8-K 2020-08-07 Regulation FD, Exhibits
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-05-18
8-K 2020-05-12
8-K 2020-04-29
8-K 2020-03-18
8-K 2020-01-29
8-K 2020-01-02
8-K 2019-11-12
8-K 2019-10-23
8-K 2019-07-29
8-K 2019-07-26
8-K 2019-07-24
8-K 2019-05-15
8-K 2019-05-08
8-K 2019-04-24
8-K 2019-01-30
8-K 2019-01-03
8-K 2018-11-13
8-K 2018-10-24
8-K 2018-08-22
8-K 2018-07-25
8-K 2018-05-16
8-K 2018-05-08
8-K 2018-04-25
8-K 2018-02-07
8-K 2018-01-31
8-K 2018-01-03

CMO 10Q Quarterly Report

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 6. Exhibits
EX-31.1 cmo-ex311_6.htm
EX-31.2 cmo-ex312_9.htm
EX-32.1 cmo-ex321_8.htm
EX-32.2 cmo-ex322_7.htm

Capstead Mortgage Earnings 2020-06-30

Balance SheetIncome StatementCash Flow

cmo-10q_20200630.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: June 30, 2020

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  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES      NO    

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)

 

96,468,729 as of August 4, 2020

 

 

 


 

 

 

CAPSTEAD MORTGAGE CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2020

 

 

INDEX

 

 

PART I. FINANCIAL INFORMATION

 

 

 

Page

ITEM 1.

Financial Statements (unaudited)

 

 

 

 

Consolidated Balance Sheets June 30, 2020 and December 31, 2019

3

 

 

 

Consolidated Statements of Operations Quarter and Six Months Ended June 30, 2020 and 2019

4

 

 

 

Consolidated Statements of Comprehensive Income Quarter and Six Months Ended June 30, 2020 and 2019

5

 

 

Consolidated Statements of Stockholders’ Equity Quarter and Six Months Ended June 30, 2020 and 2019

6

 

 

 

Consolidated Statements of Cash Flows Six Months Ended June 30, 2020 and 2019

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

36

 

 

 

ITEM 4.

Controls and Procedures

36

 

 

 

PART II. OTHER INFORMATION

 

 

ITEM 1A.

Risk Factors

37

 

ITEM 6.

Exhibits

37

 

 

SIGNATURES

39

 

 

 

-2-


 

ITEM 1.    FINANCIAL STATEMENTS

PART I. FINANCIAL INFORMATION

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except pledged and per share amounts)

 

 

 

June 30, 2020

 

December 31, 2019

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Residential mortgage investments ($7.97 and $10.83 billion

   pledged at June 30, 2020 and December 31, 2019, respectively)

 

$

8,327,900

 

 

$

11,222,182

 

Cash collateral receivable from derivative counterparties

 

 

103,618

 

 

 

65,477

 

Derivatives at fair value

 

 

 

 

 

1,471

 

Cash and cash equivalents

 

 

121,991

 

 

 

105,397

 

Receivables and other assets

 

 

115,062

 

 

 

125,474

 

 

 

$

8,668,571

 

 

$

11,520,001

 

Liabilities

 

 

 

 

 

 

 

 

Secured borrowings

 

$

7,575,294

 

 

$

10,275,413

 

Derivatives at fair value

 

 

49,575

 

 

 

29,156

 

Unsecured borrowings

 

 

98,443

 

 

 

98,392

 

Common stock dividend payable

 

 

15,041

 

 

 

14,605

 

Accounts payable and accrued expenses

 

 

17,329

 

 

 

28,702

 

 

 

 

7,755,682

 

 

 

10,446,268

 

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 June 30, 2020 and December 31, 2019

 

 

250,946

 

 

 

250,946

 

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

 

 

 

 

 

 

 

 

   96,395 and 94,606 shares issued and outstanding at

   June 30, 2020 and December 31, 2019, respectively

 

 

964

 

 

 

946

 

Paid-in capital

 

 

1,266,976

 

 

 

1,252,481

 

Accumulated deficit

 

 

(664,749

)

 

 

(444,039

)

Accumulated other comprehensive income

 

 

58,752

 

 

 

13,399

 

 

 

 

912,889

 

 

 

1,073,733

 

 

 

$

8,668,571

 

 

$

11,520,001

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

 

-3-


 

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30

 

 

June 30

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage investments

 

$

48,133

 

 

$

85,100

 

 

$

117,361

 

 

$

168,907

 

Other

 

 

22

 

 

 

600

 

 

 

421

 

 

 

1,022

 

 

 

 

48,155

 

 

 

85,700

 

 

 

117,782

 

 

 

169,929

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured borrowings

 

 

(13,055

)

 

 

(67,945

)

 

 

(58,328

)

 

 

(131,724

)

Unsecured borrowings

 

 

(1,900

)

 

 

(1,900

)

 

 

(3,800

)

 

 

(3,791

)

 

 

 

(14,955

)

 

 

(69,845

)

 

 

(62,128

)

 

 

(135,515

)

 

 

 

33,200

 

 

 

15,855

 

 

 

55,654

 

 

 

34,414

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on derivative instruments (net)

 

 

(6,948

)

 

 

(74,842

)

 

 

(162,687

)

 

 

(96,499

)

Loss on sale of investments (net)

 

 

 

 

 

(1,365

)

 

 

(67,820

)

 

 

(1,365

)

Compensation-related expense

 

 

(2,330

)

 

 

(1,972

)

 

 

(4,534

)

 

 

(5,581

)

Other general and administrative expense

 

 

(1,219

)

 

 

(1,138

)

 

 

(2,421

)

 

 

(2,266

)

Miscellaneous other revenue (expense)

 

 

1

 

 

 

2

 

 

 

(141

)

 

 

91

 

 

 

 

(10,496

)

 

 

(79,315

)

 

 

(237,603

)

 

 

(105,620

)

Net income (loss)

 

 

22,704

 

 

 

(63,460

)

 

 

(181,949

)

 

 

(71,206

)

Less preferred stock dividends

 

 

(4,842

)

 

 

(4,842

)

 

 

(9,684

)

 

 

(9,684

)

Net income (loss) to common stockholders

 

$

17,862

 

 

$

(68,302

)

 

$

(191,633

)

 

$

(80,890

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.19

 

 

$

(0.80

)

 

$

(2.01

)

 

$

(0.95

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

95,655

 

 

 

84,934

 

 

 

95,276

 

 

 

84,914

 

Diluted

 

 

95,887

 

 

 

84,934

 

 

 

95,276

 

 

 

84,914

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

-4-


 

CAPSTEAD MORTGAGE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, unaudited)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30

 

 

June 30

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income (loss)

 

$

22,704

 

 

$

(63,460

)

 

$

(181,949

)

 

$

(71,206

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts related to available for sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gain or loss

 

 

64,659

 

 

 

47,185

 

 

 

(1,111

)

 

 

90,661

 

Reclassification adjustment for amounts

   included in net income (loss)

 

 

 

 

 

1,365

 

 

 

66,864

 

 

 

1,365

 

Amounts related to cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gain or loss

 

 

(567

)

 

 

(6,746

)

 

 

(21,818

)

 

 

(15,297

)

Reclassification adjustment for amounts

   included in net income (loss)

 

 

938

 

 

 

(6,351

)

 

 

1,418

 

 

 

(16,922

)

 

 

 

65,030

 

 

 

35,453

 

 

 

45,353

 

 

 

59,807

 

Comprehensive income (loss)

 

$

87,734

 

 

$

(28,007

)

 

$

(136,596

)

 

$

(11,399

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Total

Stockholders’

Equity

 

Balance at March 31, 2020

 

$

250,946

 

 

$

964

 

 

$

1,266,045

 

 

$

(668,053

)

 

$

(6,278

)

 

$

843,624

 

Net income

 

 

 

 

 

 

 

 

22,704

 

 

 

 

 

22,704

 

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

64,659

 

 

 

64,659

 

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

371

 

 

 

371

 

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.15 per share

 

 

 

 

 

 

 

 

(14,558

)

 

 

 

 

(14,558

)

Preferred – $0.47 per share

 

 

 

 

 

 

 

 

(4,842

)

 

 

 

 

(4,842

)

Other additions to capital

 

 

 

 

 

 

931

 

 

 

 

 

 

 

931

 

Balance at June 30, 2020

 

$

250,946

 

 

$

964

 

 

$

1,266,976

 

 

$

(664,749

)

 

$

58,752

 

 

$

912,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2019

 

$

250,946

 

 

$

856

 

 

$

1,175,878

 

 

$

(366,110

)

 

$

3,308

 

 

$

1,064,878

 

Net loss

 

 

 

 

 

 

 

 

(63,460

)

 

 

 

 

(63,460

)

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

48,550

 

 

 

48,550

 

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

(13,097

)

 

 

(13,097

)

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.12 per share

 

 

 

 

 

 

 

 

(10,291

)

 

 

 

 

(10,291

)

Preferred – $0.47 per share

 

 

 

 

 

 

 

 

(4,842

)

 

 

 

 

(4,842

)

Other additions to capital

 

 

 

 

(1

)

 

 

651

 

 

 

 

 

 

 

650

 

Balance at June 30, 2019

 

$

250,946

 

 

$

855

 

 

$

1,176,529

 

 

$

(444,703

)

 

$

38,761

 

 

$

1,022,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

$

250,946

 

 

$

946

 

 

$

1,252,481

 

 

$

(444,039

)

 

$

13,399

 

 

$

1,073,733

 

Net loss

 

 

 

 

 

 

 

 

(181,949

)

 

 

 

 

(181,949

)

Change in unrealized gain on

   mortgage securities, net

 

 

 

 

 

 

 

 

 

 

65,753

 

 

 

65,753

 

Amounts related to cash

   flow hedges, net

 

 

 

 

 

 

 

 

 

 

(20,400

)

 

 

(20,400

)

Cash dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common – $0.30 per share

 

 

 

 

 

 

 

 

(29,077

)

 

 

 

 

(29,077

)

Preferred – $0.94 per share

 

 

 

 

 

 

 

 

(9,684

)

 

 

 

 

(9,684

)

Issuance of common stock

 

 

 

 

16