2015 Q4 Form 10-K Financial Statement

#000114420416087286 Filed on March 10, 2016

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q1 2015
Revenue $107.5M $17.20M $163.4M
YoY Change 788.43% 63.81% 150.23%
Cost Of Revenue $45.90M $5.500M $62.20M
YoY Change 782.69% -19.12% 209.45%
Gross Profit $61.70M $11.70M $101.2M
YoY Change 794.2% 216.22% 124.39%
Gross Profit Margin 57.4% 68.02% 61.93%
Selling, General & Admin -$600.0K $7.600M $23.10M
YoY Change -115.79% 533.33% 507.89%
% of Gross Profit -0.97% 64.96% 22.83%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $0.00 $227.4K $933.8K
YoY Change -100.0% 506.33%
% of Gross Profit 0.0% 1.94% 0.92%
Operating Expenses $17.20M $2.920M $12.29M
YoY Change 129.33% 30.82% 56.37%
Operating Profit $44.50M $8.780M $88.91M
YoY Change -7516.67% 498.06% 138.75%
Interest Expense $4.665M $4.745M $5.900M
YoY Change 4.89% 21.56% -65.82%
% of Operating Profit 10.48% 54.05% 6.64%
Other Income/Expense, Net $5.900M $1.135M $4.672M
YoY Change 3.56%
Pretax Income $50.30M $271.7K $2.996M
YoY Change -8483.33% -89.06% -89.67%
Income Tax $1.912M -$145.5K $4.415M
% Of Pretax Income 3.8% -53.56% 147.37%
Net Earnings -$1.835M $417.2K -$1.419M
YoY Change -945.69% -83.19% -104.75%
Net Earnings / Revenue -1.71% 2.43% -0.87%
Basic Earnings Per Share -$0.21 $0.05 -$0.16
Diluted Earnings Per Share -$0.21 $0.05 -$0.16
COMMON SHARES
Basic Shares Outstanding 7.971M shares 7.971M shares 7.971M shares
Diluted Shares Outstanding 8.898M shares 8.898M shares 8.898M shares

Balance Sheet

Concept 2015 Q4 2015 Q1 2015
SHORT-TERM ASSETS
Cash & Short-Term Investments $41.60M $38.00M $41.60M
YoY Change 23.08% 26.25% 23.08%
Cash & Equivalents $20.79M $38.02M $41.60M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $41.60M $38.00M $41.60M
YoY Change 23.08% 26.25% 23.08%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $14.18M $16.13M
YoY Change -14.11%
Intangibles $4.880M $5.472M
YoY Change -13.91%
Long-Term Investments $626.9M $592.4M $626.9M
YoY Change 4.48% -10.04% 4.48%
Other Assets $26.10M $3.000M $26.10M
YoY Change 267.61% -49.15% 267.61%
Total Long-Term Assets $733.5M $775.4M $2.288B
YoY Change -3.3% 16.06% 201.63%
TOTAL ASSETS
Total Short-Term Assets $41.60M $38.00M $41.60M
Total Long-Term Assets $733.5M $775.4M $2.288B
Total Assets $775.1M $813.4M $2.330B
YoY Change -2.18% 16.5% 194.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $47.70M $12.20M $47.70M
YoY Change 307.69% 293.55% 307.69%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $644.1M $399.5M $644.1M
YoY Change 59.79% -12.51% 59.79%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $705.2M $415.3M $705.2M
YoY Change 68.55% -10.73% 68.55%
LONG-TERM LIABILITIES
Long-Term Debt $1.136B $172.6M $1.136B
YoY Change 683.99% 214.96% 683.99%
Other Long-Term Liabilities $8.400M $35.30M $8.400M
YoY Change -76.47% 2106.25% -76.47%
Total Long-Term Liabilities $1.144B $207.9M $1.144B
YoY Change 533.67% 268.62% 533.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $705.2M $415.3M $705.2M
Total Long-Term Liabilities $1.144B $207.9M $1.144B
Total Liabilities $597.4M $623.1M $1.889B
YoY Change -0.28% 19.49% 204.99%
SHAREHOLDERS EQUITY
Retained Earnings -$4.984M $6.215M
YoY Change -155.2% -204.94%
Common Stock $798.00 $798.00
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $159.2M $170.4M $441.3M
YoY Change
Total Liabilities & Shareholders Equity $775.1M $813.4M $2.330B
YoY Change -2.18% 16.5% 194.02%

Cashflow Statement

Concept 2015 Q4 2015 Q1 2015
OPERATING ACTIVITIES
Net Income -$1.835M $417.2K -$1.419M
YoY Change -945.69% -83.19% -104.75%
Depreciation, Depletion And Amortization $0.00 $227.4K $933.8K
YoY Change -100.0% 506.33%
Cash From Operating Activities $44.30M -$30.10M $28.90M
YoY Change -723.94% -1870.59% -714.89%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities -$228.8M $14.00M -$188.7M
YoY Change -423.62% -113.71% 499.05%
Cash From Investing Activities -$228.8M $14.00M -$188.7M
YoY Change -423.62% -113.71% 499.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 173.7M 20.30M 144.6M
YoY Change -411.85% -72.38% 1020.93%
NET CHANGE
Cash From Operating Activities 44.30M -30.10M 28.90M
Cash From Investing Activities -228.8M 14.00M -188.7M
Cash From Financing Activities 173.7M 20.30M 144.6M
Net Change In Cash -10.80M 4.200M -15.20M
YoY Change -236.71% -115.61% -34.76%
FREE CASH FLOW
Cash From Operating Activities $44.30M -$30.10M $28.90M
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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12902333 USD
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-12997297 USD
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3806064 USD
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0 USD
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644304 USD
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1034305 USD
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933812 USD
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154010 USD
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1851206995 USD
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253934598 USD
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61322192 USD
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18958514 USD
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2763014 USD
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-1614564 USD
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7100795 USD
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2818360 USD
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0 USD
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CY2015 zfc Origination Of Mortgage Loans Held For Investment
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6201147 USD
CY2014 zfc Origination Of Mortgage Loans Held For Investment
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0 USD
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0 USD
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50000 USD
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0 USD
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500000000 shares
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0.0001
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385610 USD
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259269 USD
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310575669 USD
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788341 USD
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131389 USD
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732776 USD
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455004 USD
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455004 USD
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455004 USD
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919730 USD
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131389 USD
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P15Y
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267509905 USD
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223401697 USD
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0 USD
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55532098 USD
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25582964 USD
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5825003 USD
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14713116 USD
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247751944 USD
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4157854 USD
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10641288 USD
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1412583 USD
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64 USD
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60 USD
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3548921 USD
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482925 USD
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June 2016 – November 2016
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0.0316 pure
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0.0311 pure
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688271 USD
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193332 USD
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302037635 USD
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44847548 USD
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5344361 USD
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762239 USD
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118895 USD
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1772153 USD
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213540 USD
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3547809 USD
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0 USD
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4415474 USD
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0 USD
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0.3500 pure
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0.3500 pure
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-0.0082 pure
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0.00 pure
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0.0231 pure
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0.00 pure
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671913 USD
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3546186 USD
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1987073 USD
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24985730 USD
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25619979 USD
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807361 USD
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682321 USD
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130080 USD
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0 USD
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0 USD
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471866931 USD
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493384515 USD
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0 USD
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0 USD
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471866931 USD
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493384515 USD
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468452757 USD
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491839706 USD
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3414174 USD
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1544809 USD
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0 USD
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1183083 USD
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41592747 USD
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4730212 USD
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19090520 USD
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5762254 USD
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2180113 USD
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154011 USD
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4511741 USD
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394942512 USD
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415814067 USD
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115942230 USD
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97690960 USD
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135779193 USD
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1989174 USD
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2040532 USD
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0.0001
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0 shares
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0 shares
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0 shares
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7970886 shares
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7970886 shares
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7970886 shares
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0 USD
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-13978184 USD
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18931049 USD
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-2166254 USD
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5614815 USD
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0 USD
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0 USD
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15379 USD
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65140795 USD
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1965060 USD
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1483064 USD
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1483064 USD
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16898276 USD
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12753416 USD
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12753416 USD
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50000 USD
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177768562 USD
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5440175 USD
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133000 USD
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118862500 USD
CY2013 us-gaap Adjustments To Additional Paid In Capital Stock Issued Issuance Costs
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216658 USD
CY2013 us-gaap Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Changes Net
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0 USD
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1281997 USD
CY2013 us-gaap Amortization Of Debt Discount Premium
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88457 USD
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0 USD
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1321134 USD
CY2013 us-gaap Increase Decrease In Other Operating Liabilities
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1302727 USD
CY2013 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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CY2013 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2015 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b><i>Estimates</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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CY2015 us-gaap Guarantees Indemnifications And Warranties Policies
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b><i>Liability for Loan Repurchases and Indemnifications</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Loans sold to investors by the Company and which met investor and agency underwriting guidelines at the time of sale may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, agree to repurchase the loans or indemnify the investor against future losses on such loans. In such cases, the Company bears any subsequent credit loss on the loans. The Company has established a liability for potential losses related to these representations and warranties with a corresponding provision recorded for loan indemnification losses. The liability is included in accounts payable and other liabilities in the Company's consolidated balance sheets and the provision for loan indemnification is included in mortgage banking activities, net in the Company's consolidated statements of operations. In assessing the adequacy of the liability, management evaluates various factors including historical repurchases and indemnifications, historical loss experience, known delinquent and other problem loans, outstanding repurchase demands, historical rescission rates and economic trends and conditions in the industry. 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The estimate of the range of possible losses for representations and warranties does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b><i>&#160;</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b><i>Loss Contingencies</i></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company&#8217;s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company&#8217;s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief available, sought or expected to be sought therein.<br/> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be reasonably estimated, then the estimated liability would be accrued in the Company&#8217;s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable, would be disclosed.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><font style="WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 48px; LETTER-SPACING: normal; DISPLAY: inline !important; FONT: 13px 'Times New Roman', Times, serif; WHITE-SPACE: normal; FLOAT: none; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" >Legal costs are recorded on an accrual basis as incurred.</font><b><i>&#160;</i></b></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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4762509 USD
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4939098 USD
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1082596 USD
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><b><font style="FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>1. Formation and Organization</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">ZAIS Financial Corp. and subsidiaries (the "Company") is a Maryland corporation invests in residential mortgage loans. 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The Company's board of directors is authorized to amend its charter, without the approval of stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series of capital stock or to classify and reclassify any unissued shares of its capital stock into other classes or series of stock that the Company has the authority to issue.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company is the sole general partner of, and conducts substantially all of its business through, ZAIS Financial Partners, L.P., the Company's consolidated operating partnership subsidiary (the "Operating Partnership"). The Company is externally managed by ZAIS REIT Management, LLC (the "Advisor"), a subsidiary of ZAIS Group, LLC ("ZAIS"), and has no employees except for those employed by GMFS. GMFS had 246 employees at December 31, 2015.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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