UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
November 15, 2005
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Date of Report (Date of earliest event reported)
AmNet Mortgage, Inc.
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(Exact name of registrant as specified in its charter)
Maryland
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(State or other jurisdiction of incorporation)
1-13485 33-0741174
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(Commission File Number) (IRS Employer Identification No.)
10421 Wateridge Circle, Suite 250 San Diego, CA 92121
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(address of principal executive offices) (Zip Code)
858-909-1200
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
The information contained herein and in the accompanying exhibit shall
not be incorporated by reference into any filing with the Securities and
Exchange Commission made by AmNet Mortgage, Inc. (the "Company") whether before
or after the date hereof, regardless of any general incorporation language in
such filing.
On November 15, 2005, the Company issued a press release which included
certain disclosures relating to the Company's financial results for the fiscal
quarter ended September 30, 2005. The full text of the Company's press release
is attached hereto as Exhibit 99.1. The main purpose of the press release was to
report financial results of the Company for the quarter ended September 30,
2005.
The Company's press release contains certain non-GAAP financial
measures (as defined under SEC regulations). We earn both interest income and
incur interest expense in our operations. American Mortgage Network ("AmNet")
earns interest on a loan from the date the loan is funded until final
disposition of the loan sale. Accordingly, interest income is a function of the
volume of loans funded, the interest rate on the loans and the length of time
the loans are held prior to sale. To the extent AmNet funds loans with
borrowings under its warehouse facilities, it records interest expense based on
the same factors. Similarly, we generate revenue on the interest we receive on
the small amount of mortgage loans we hold for investment and we incur interest
expense on the borrowings used to fund our loan portfolio.
Because the interest income and interest expense of our business are
closely related and dependant on many of the same factors, in particular the
volume of loans we originate, management believes that it is helpful in
understanding our operations to analyze the impact of interest income and
expense together. For this reason, the press release text provides information
regarding the net interest income (interest income less interest expense)
generated by the Company's operations. Management believes that this is
consistent with how financial analysts typically consider interest in analyzing
mortgage banking operations. For the same reasons, our discussion of expenses
includes a discussion of our operating expenses, which excludes interest
expense.
Because certain other expenses incurred by AmNet, such as commissions
and contract labor, also vary with the volume of AmNet's loan originations,
management also believes that it is important in understanding our business to
consider the variable and the fixed expenses separately. Accordingly, we have
included an estimated breakdown of variable amounts for our operating expenses.
Management believes that this will enable a better understanding of the
Company's results and the likely impact in the future of changes in our mortgage
loan origination volumes.
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Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
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99.1 November 15, 2005 Press Release by AmNet Mortgage, Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AmNet Mortgage, Inc.
Date: November 15, 2005 By: \s\ Judith A. Berry
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Judith A. Berry
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 November 15, 2005 Press Release by AmNet Mortgage, Inc.
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