MMA Capital Management, LLC (NASDAQ:MMAC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 08:30 am ET


MMA Capital Management, LLC (NASDAQ:MMAC) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, ladies and gentlemen, and welcome to the MMA Capital Holdings, Inc. 2019 Third Quarter Financial Results and Business Update Conference Call. My name is Jamie and I'll be your coordinator for today. [Operator Instructions] Some comments today will include forward-looking statements regarding future events and projections of financial performance of MMA Capital Holdings, which are based on current expectations. These comments are subject to significant risks and uncertainties, which include those identified in the company's filings with the Securities and Exchange Commission, that could cause actual results to differ materially from those expressed in these forward-looking statements. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update any of the information contained in the forward-looking statements.

At this time, I'd like to turn the conference call over to Mr. Michael Falcone, CEO of MMA Capital Holdings.

Michael Falcone

Thank you, Jamie. Good morning everyone and welcome. With me on the call today are Dave Bjarnason, our Chief Financial Officer; Gary Mentesana, our Chief Operating Officer; and Senior Vice President, Megan Sophocles. For our call today, Dave, Gary and I will deliver our prepared remarks. After which we will be available to take questions. The purpose of our call today is to review MMA Capital Holdings' third quarter financial results and to provide an overall business update.

Our quarterly report was filed with the SEC this past Friday and an updated investor presentation is available on our website. With respect to the financial results, which Dave will review in detail later, we are pleased to report that the company ended the quarter with $219.6 million of common shareholders equity or book value, which represents an increase of $5 million for the three months ended September 30, 2019.

Book value per share finished the quarter at $37.29, an increase of $0.83 per share or 2.3% compared to the second quarter. This growth was primarily attributable to an increase in income derived from our investments in loans that finance renewable energy projects within our Energy Capital portfolio. Also during the quarter, we successfully raised $70 million of debt capital in the form of the three-year revolving credit facility at what we believe is an attractive rate.

This facility, which was increased to $100 million in October is expected to improve our returns as a result of the leverage and a reduction in both the time and amount of that idle equity capital invested within the Solar Ventures. With respect to operations, we continue to see strong returns from our Energy Capital investments during the third quarter as the income from such investments increased 38% on a quarter-over-quarter basis, marking consecutive quarters with greater than 30% revenue growth, driven largely by additional investment due to the recent recycling of equity out of lower yielding investments and performance of the underlying renewable energy loans in which we invest.

As Gary will further discuss, demand for capital to finance renewable