Centerline Holding Company Reports Second Quarter 2010 Financial Results

Centerline Holding Company (OTC:CLNH) (“Centerline” or the “Company”), the parent company of Centerline Capital Group, a provider of real estate financial and asset management services, focused on affordable and conventional multifamily housing, today announced financial results for the second quarter and six months ended June 30, 2010.

The tables below present Centerline’s Condensed Consolidated Balance Sheets for the periods at June 30, 2010 and December 31, 2009*; and Condensed Consolidated Statements of Operations for the second quarter and first half of 2010 and 2009*. For more detailed financial information, please access the Financial Overview Presentation, available in the “Investor Relations” section of the Company’s website at http://ir.centerline.com.

*

On March 5, 2010, Centerline completed a series of transactions with an affiliate of Island Capital Group LLC, C-III Capital Partners LLC, and the Company’s creditors and preferred shareholders (the “March 2010 Restructuring”). Prior periods in the accompanying Condensed Consolidated Financial Statements have been reclassified to reflect the March 2010 Restructuring and the impact of discontinued operations in accordance with Financial Accounting Standards Board Accounting Standards Codification, Subtopic 205-20, Discontinued Operations.

About the Company

Centerline Capital Group, a subsidiary of Centerline Holding Company (OTC: CLNH), provides real estate financial and asset management services, with a focus on affordable and conventional multifamily housing. Centerline is headquartered in New York, New York. For more information, please visit Centerline's website at www.centerline.com or contact the Investor Relations Department directly at (800) 831-4826.

CENTERLINE HOLDING COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30,

2010

December 31,

2009

(Unaudited)

ASSETS

Cash and cash equivalents

$ 118,929 $ 88,853
Restricted cash 22,785 11,476
Investments:
Available-for-sale 530,373 489,767
Equity method 335 530
Other 79,737 39,037
Investments in and loans to affiliates, net 1,576 1,982
Goodwill and intangible assets, net 168,608 171,044
Deferred costs and other assets, net 102,503 100,460
Consolidated partnerships:
Investments:
Available-for-sale 5,043 5,109
Equity method 3,464,618 3,571,323
Land, buildings and improvements, net 593,105 571,520
Other assets 251,442 298,528
Assets of discontinued operations 568 653,897

Total assets

$ 5,339,622 $ 6,003,526

LIABILITIES AND EQUITY

Liabilities:

Notes payable $ 234,820 $ 249,764
Financing arrangements and secured financing 643,305 585,528
Accounts payable, accrued expenses and other liabilities 241,992 343,696
Preferred shares of subsidiary (subject to mandatory repurchase) 128,500 128,500
Consolidated partnerships:
Notes payable 153,075 155,810
Due to property partnerships 137,054 209,868
Other liabilities 275,358 226,391
Liabilities of discontinued operations 811 1,588,054

Total liabilities

1,814,915 3,487,611

Redeemable securities

12,194 332,480

Commitments and contingencies

Equity:

Centerline Holding Company

239,466 (1,178,350 )

Non-controlling interests

3,273,047 3,361,785

Total equity

3,512,513 2,183,435

Total liabilities and equity

$ 5,339,622 $ 6,003,526

CENTERLINE HOLDING COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2010 2009 2010 2009
Revenues:
Interest income $ 9,932 $ 13,427 $ 22,540 $ 27,287
Fee income 9,455 7,016 16,588 14,361
Other 7,364 6,307 12,318 9,461
Consolidated partnerships:
Interest income 404 677 823 2,276
Rental income 25,479 18,144 51,905 36,779
Other 1,552 339 2,624 371
Total revenues 54,186 45,910 106,798 90,535

Expenses:

General and administrative 23,297 22,869 87,440 47,418
(Recovery) provision for losses, net 13,167 35,434 (99,329 ) 37,854
Interest 17,739 9,977 30,527 22,770
Interest – distributions to preferred shareholders of subsidiary 2,319 4,725 4,639 9,449
Depreciation and amortization 5,595 10,034 12,060 20,473
Loss on impairment of assets 12,618 310 35,027 8,873
Consolidated partnerships:
Interest 2,564 2,432 8,883 4,385
Loss on impairment of assets 22,200 30,151 22,200 30,151
Other expenses 96,652 42,113 149,955 74,413
Total expenses 196,151 158,045 251,402 255,786

Loss before other income

(141,965 ) (112,135 ) (144,604 ) (165,251 )

Other (loss) income:

Equity and other (loss) income, net (50 ) (350 ) (184 ) (7,265 )
Gain on settlement of liabilities -- -- 25,253 --
Gain from repayment or sale of investments, net 11 6 2,202 577
Other losses from consolidated partnerships (135,846 ) (345,871 ) (226,652 ) (461,710 )

Loss from continuing operations before income tax provision

(277,850 ) (458,350 ) (343,985 ) (633,649 )
Income tax provision – continuing operations (141 ) (142 ) (534 ) (220 )

Net loss from continuing operations

(277,991 ) (458,492 ) (344,519 ) (633,869 )

Discontinued operations:

Income (loss) from discontinued operations before income taxes (235 ) (336,365 ) 140,058 (489,423 )
Gain on sale of discontinued operations, net -- -- 20,500 --
Income tax (provision) benefit – discontinued operations -- 12 (531 ) (25 )

Net income (loss) from discontinued operations

(235 ) (336,353 ) 160,027 (489,448 )

Net loss

(278,226 ) (794,845 ) (184,492 ) (1,123,317 )

Net loss attributable to non-controlling interests

244,303 741,567 290,280 1,043,091

Net income (loss) attributable to Centerline Holding Company shareholders

$ (33,923 ) $ (53,278 ) $ 105,788 $ (80,226 )

Net income (loss) per share:

Basic
Income (loss) from continuing operations $ (0.10 ) $ (0.52 ) $ 1.41 $ (1.03 )
Income (loss) from discontinued operations $ --

(1)

$ (0.59 ) $ 0.28 $ (0.70 )
Diluted
Income (loss) from continuing operations $ (0.10 ) $ (0.52 ) $ 1.40 $ (1.03 )
Income (loss) from discontinued operations $ -- (1) $ (0.59 ) $ 0.28 $ (0.70 )

Weighted average shares outstanding:

Basic 348,302 53,812 245,026 53,970
Diluted 348,302 53,812 246,466 53,970

(1) Amount calculates to less than one cent loss per share.

This press release contains forward-looking statements about Centerline Holding Company. Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q for the first and second quarters of 2010 filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; risk of allocations of income to our shareholders without corresponding cash distributions; possible adverse effects of a future issuance of shares or a reverse share split; possible deterioration in cash flows generated by material investments, such as the Freddie Mac B-Certificate; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contacts:

Centerline Holding Company
Hande Tuney, Investor Relations, 800-831-4826

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.