Newcastle Investment Q2 Profit Down; Board Approves 3-for-1 Reverse Stock Split

(RTTNews) - Newcastle Investment Corp. (NCT) said that its second-quarter income applicable to common stockholders declined to $31.03 million or $0.09 per share from $52.33 million or $0.20 per share in the prior year quarter.

The second-quarter of 2014 GAAP Income includes net gain on sale of $36 million, or $0.10 per basic share, and depreciation and amortization of $31 million, or $0.09 per basic share. Net gain on sale of $36 million includes $41 million of gain on sale less $3 million of unamortized debt discount and $2 million of transaction expense.

Core earnings for the latest-quarter were $29.96 million.

Total operating revenues jumped to $143.65 million from $14.01 million in the prior year.

The company also announced that its board has approved a 3-for-1 reverse stock split of its common stock. The company expects the reverse stock split will be effective after the close of trading on Monday, August 18, 2014, and that shares of the Company's common stock will begin trading on a split-adjusted basis on Tuesday, August 19, 2014.

As a result of the reverse stock split, every three shares of the Company's common stock will be converted into one share of common stock, reducing the number of issued and outstanding shares of the Company's common stock from approximately 352 million to approximately 117 million. The Company's common stock will continue to trade on the New York Stock Exchange under the symbol "NCT."