Chimera Investment Corporation : Announces Change of Auditor; Updates Status of 10-K Filing
03/15/2012| 03:10pm US/Eastern
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Chimera Investment Corporation (NYSE: CIM) announced today that it has
appointed Ernst & Young LLP as the Company's independent registered
public accounting firm beginning with the quarter ending March 31, 2012.
The audit services provided by Deloitte & Touche LLP, the Company's
current auditor, will conclude after the completion of Deloitte's audit
services for the fiscal year ending December 31, 2011.
As previously disclosed on March 1, 2012, additional time is required
for the Company to complete the preparation of its financial statements
for the fiscal year ending December 31, 2011, and the Annual Report on
Form 10-K. The Company is reviewing its non-Agency residential
mortgage-backed securities portfolio to determine the treatment under
GAAP according to ASC 320, Investments - Debt and Equity
Securities, ASC 325-40, Investments - Other - Beneficial
Interests in Securitized Financial Assets or ASC 310-30, Receivables
- Loans and Debt Securities Acquired with Deteriorated Credit Quality.
The Company expects to file its 2011 Form 10-K as soon as practicable,
and to file its Form 10-Q for the quarter ending March 31, 2012 within
60 days after it files its 2011 Form 10-K. There can be no assurance
that the Company will file the First Quarter 10-Q by May 10, 2012, the
filing deadline for such report under the Securities Exchange Act of
1934, as amended.
While the Company has not completed its analysis, the effect of this
review may result in non-cash changes in the historical GAAP accounting
results of the Company that will not affect the Company's previously
announced GAAP or economic book values, actual cash flows, dividends and
taxable income for any period. The Company's previously announced third
quarter 2011 GAAP book value of $3.27 per share and economic book value
of $3.01 per share will not change as a result of this analysis. The
Company determined that as of December 31, 2011, its GAAP book value was
$2.97 per share, its economic book value was $2.82 per share, and its
taxable income for the fourth quarter 2011 was $0.11 per share. The
Company's dividend distributions are based on taxable income, not GAAP
income, and the results of this analysis will have no impact on the
Company's prior or future dividend distributions. On March 1, 2012, the
Company declared the first quarter 2012 common stock cash dividend of
$0.11 per common share. This dividend is payable April 27, 2012, to
common shareholders of record on March 30, 2012. The ex-dividend date is
March 28, 2012.
Chimera Investment Corporation invests in residential mortgage loans,
residential mortgage-backed securities, real estate-related securities
and various other asset classes. The Company's principal business
objective is to generate income from the spread between yields on its
investments and its cost of borrowing and hedging activities. The
Company, a Maryland corporation that has elected to be taxed as a real
estate investment trust ("REIT").
This news release and our public documents to which we refer contain or
incorporate by reference certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements which
are based on various assumptions (some of which are beyond our control)
may be identified by reference to a future period or periods or by the
use of forward-looking terminology, such as "believe," "expect,"
"anticipate," "estimate," "plan," "continue," "intend," "should," "may,"
"would," "will" or similar expressions, or variations on those terms or
the negative of those terms. Actual results could differ materially from
those set forth in forward-looking statements due to a variety of
factors, including, but not limited to, our business and investment
strategy; our projected financial and operating results; our ability to
maintain existing financing arrangements, obtain future financing
arrangements and the terms of such arrangements; general volatility of
the securities markets in which we invest; the implementation, timing
and impact of, and changes to, various government programs, our expected
investments; changes in the value of our investments; interest rate
mismatches between our investments and our borrowings used to fund such
purchases; changes in interest rates and mortgage prepayment rates;
effects of interest rate caps on our adjustable-rate investments; rates
of default or decreased recovery rates on our investments; prepayments
of the mortgage and other loans underlying our mortgage-backed or other
asset-backed securities; the degree to which our hedging strategies may
or may not protect us from interest rate volatility; impact of and
changes in governmental regulations, tax law and rates, accounting
guidance, and similar matters; availability of investment opportunities
in real estate-related and other securities; availability of qualified
personnel; estimates relating to our ability to make distributions to
our stockholders in the future; our understanding of our competition;
market trends in our industry, interest rates, the debt securities
markets or the general economy; our ability to maintain our exemption
from registration under the Investment Company Act of 1940, as amended;
and our ability to maintain our qualification as a REIT for federal
income tax purposes. For a discussion of the risks and uncertainties
which could cause actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in our Annual Report on
Form 10-K, and any subsequent Quarterly Reports on Form 10-Q. We do not
undertake, and specifically disclaim all obligations, to publicly
release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
Chimera Investment Corporation
Investor Relations, 646-454-3759
www.chimerareit.com
© Business Wire 2012
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