Nationstar Mortgage Q3 Profit Rises; Stonegate To Buy Wholesale Lending Channel

(RTTNews) - Nationstar Mortgage Holdings Inc. (NSM), a residential mortgage services company, reported that its third-quarter net income and comprehensive income to company increased to $81.5 million, or $0.91 per share, from $55.5 million, or $0.61 per share, in the third quarter 2012. Pro forma earnings per share was $1.08, after adjusting for $25.1 million in platform ramp related to the previously announced servicing acquisition from Bank of America and other one-time transaction expenses.

On a Non-GAAP basis, adjusted EBITDA (AEBITDA) for operating segments was $169.7 million, or $1.88 per share, for the quarter.

Total revenues rose to $631.84 million, from $284.87 million, last year. For the year ending December 31, 2013, the company expects AEBITDA per share to be in the range of $7.25-$8.30, and earnings per share in the range of $2.65-$3.10.

For the year ending December 31, 2014, AEBITDA per share is expected to be in the range of $13.50-$15.00, and earnings per share is expected to be in the range of $4.50-$6.00.

Stonegate (SGM), a non-bank mortgage company focused on originating, financing and servicing U.S. residential mortgage loans, announced that it has entered into a binding letter of intent to acquire the wholesale lending channel and certain distributed retail assets of Nationstar Mortgage Holdings Inc. (NSM). Stonegate agreed to purchase the assets and offer employment to certain employees associated with these businesses. The purchase price will be the net book value of the fixed assets acquired by Stonegate Mortgage.