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
November 12, 2004
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Date of Report (Date of earliest event reported)
AmNet Mortgage, Inc.
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(Exact name of registrant as specified in its charter)
Maryland
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(State or other jurisdiction of incorporation)
1-13485 33-0741174
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(Commission File Number) (IRS Employer Identification No.)
10421 Wateridge Circle, Suite 250 San Diego, CA 92121
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(Address of principal executive offices) (Zip Code)
858-909-1200
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(Registrant's telephone number, including area code)
Item 2.02. Results of Operations and Financial Condition
The information contained herein and in the accompanying exhibit shall not
be incorporated by reference into any filing with the Securities and Exchange
Commission made by AmNet Mortgage, Inc. (the "Company") whether before or after
the date hereof, regardless of any general incorporation language in such
filing.
On November 12, 2004, the Company issued a press release which included
certain disclosures relating to the Company's financial results for the fiscal
quarter ended September 30, 2004. The full text of the Company's press release
is attached hereto as Exhibit 99.1. The main purpose of the press release was to
report financial results of the Company for the quarter ended September 30,
2004.
The Company's press release contains certain non-GAAP financial measures
(as defined under SEC regulations). We earn interest income and incur interest
expense in both segments of our operations. In the Mortgage Banking Business,
American Mortgage Network ("AmNet") earns interest on a loan from the date the
loan is funded until final disposition of the loan sale. Accordingly, interest
income is a function of the volume of loans funded, the interest rate on the
loans and the length of time the loans are held prior to sale. To the extent
AmNet funds loans with borrowings under its warehouse facilities, it records
interest expense based on the same factors. Similarly, in the Mortgage Asset
Portfolio Business, we generate revenue on the interest we receive on the
mortgage loans we hold for investment and we incur interest expense on the
borrowings used to fund our loan portfolio.
Because the interest income and interest expense in each segment of our
business are closely related and dependant on many of the same factors, in
particular the volume of loans we originate or hold for investment, management
believes that it is helpful in understanding our operations to analyze the
impact of interest income and expense together within each segment of our
operations. For this reason, the press release text provides information
regarding the net interest income (interest income less interest expense)
generated by each segment. Management believes that this is consistent with how
financial analysts typically consider interest in analyzing mortgage banking
operations. For the same reasons, in our discussion of the Mortgage Banking
Business, the discussion of expenses includes a discussion of our operating
expenses, which excludes interest expense.
Because certain other expenses incurred by AmNet in the Mortgage Banking
Business, such as commissions and contract labor, also vary with the volume of
AmNet's loan originations, management also believes that it is important in
understanding this business to consider the variable and the fixed expenses
separately. Accordingly, we have included an estimated breakdown of variable
amounts for our mortgage banking operating expenses. Management believes that
this will enable a better understanding of the Company's results and the likely
impact in the future of changes in our origination volumes.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
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99.1 November 12, 2004 Press Release by AmNet
Mortgage, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AmNet Mortgage, Inc.
Date: November 12, 2004 By: /s/ Judith A. Berry
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Judith A. Berry
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
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99.1 November 12, 2004 Press Release by AmNet Mortgage, Inc.