Last10K.com

Sachem Capital Corp. (SACH) SEC Filing 8-K Material Event for the period ending Thursday, October 19, 2017

Sachem Capital Corp.

CIK: 1682220 Ticker: SACH

 

Exhibit 99.1

 

 

Contact:

Sachem Capital Corp.

John L. Villano, Co-CEO & CFO

(203) 433-4736

 

FOR IMMEDIATE RELEASE

 

Sachem Capital Reports Third Quarter Results;

Announces Third Quarter Dividend

 

Branford, Connecticut, October 19, 2017 -- Sachem Capital Corp. (NYSE American: SACH) announced today financial results for the three- and nine-month periods ended September 30, 2017. The company also announced that it has declared a quarterly dividend of $0.105 per common share for the third quarter of 2017. This dividend will be payable on November 17, 2017 to common shareholders of record at the close of business on November 7, 2017.

 

Financial Results

 

Total revenue for the three and nine-month periods ended September 30, 2017 increased 90.8% and 58.7%, respectively, compared to the comparable 2016 periods. Net income for the three and nine months ended September 30, 2017 increased 95.3% and 42.4%, respectively, in comparison to the comparable 2016 periods. These increases were due principally to an increase in the company’s lending activity, which was driven, in part, by the completion of the company’s initial public offering in February 2017.

 

Total revenue for the three months ended September 30, 2017 was approximately $1.9 million compared to approximately $1.0 million for the three months ended September 30, 2016. For the 2017 period, interest income was approximately $1.6 million and net origination fees were approximately $197,000. In comparison, for the three months ended September 30, 2016, interest income was approximately $953,000 and net origination fees were approximately $43,500. Prior to the completion of the company’s IPO in February 2017, 75% of gross origination fees were paid to JJV, LLC, the managing member of the company’s predecessor, Sachem Capital Partners, LLC, a Connecticut limited liability company.

 

Total operating costs and expenses for three months ended September 30, 2017 were approximately $621,000 compared to approximately $341,000 for the three months ended September 30, 2016 period, an increase of approximately 81.9%. The increase in operating costs and expenses is primarily attributable to: (i) an increase in interest expense and amortization of deferred financing costs of approximately $164,000; (ii) an increase in compensation and taxes of approximately $189,000; (iii) an increase in professional fees of approximately $27,000; and an (iv) an increase in general and administrative expenses of approximately $35,000. These increases are primarily due to the increase in the company’s lending activities, the follow-on public offering that commenced late in the second quarter of 2017 and conversion from a privately-held limited liability company to a publicly-held corporation. Year-to-year comparisons may not be meaningful in light of the changes to the company’s corporate structure, the IPO and the company’s operation as a REIT.

 

 

 

 

Net income for the three months ended September 30, 2017 was approximately $1.3 million, or $0.12 per share (basic and diluted) compared to $675,000 for the three months ended September 30, 2016. The company does not report net income per share data for periods prior to its IPO when it operated as a limited liability company.

 

Total revenue for the nine months ended September 30, 2017 was approximately $4.7 million compared to approximately $3.0 million for the nine months ended September 30, 2016. For the 2017 period, interest income was approximately $3.8 million and net origination fees were approximately $464,000. In comparison, for the nine months ended September 30, 2016, interest income was approximately $2.7 million and net origination fees were approximately $139,000. As stated previously, for the 2016 period, net origination fee income is net of the amounts payable to JJV and other adjustments.

 

Total operating costs and expenses for nine months ended September 30, 2017 were approximately $1.6 million compared to approximately $763,000 for the nine months ended September 30, 2016 period, an increase of approximately 106.5%. The increase in operating costs and expenses is primarily attributable to: (i) an increase in compensation and taxes of approximately $438,000; (ii) an increase in professional fees of approximately $135,000; (iii) an increase in general and administrative expenses of approximately $213,000; and (iv) an increase in interest expense and amortization of deferred financing costs of approximately $229,000. These increases are primarily due to the same reasons previously noted above.

 

Net income for the nine months ended September 30, 2017 was approximately $3.2 million compared to $2.23 million for the nine months ended September 30, 2016. Net income per share (basic and diluted) for the period beginning February 9, 2017 (the effective date of the IPO) and ending September 30, 2017 was $0.26. The company does not report net income per share data for periods prior to its IPO when it operated as a limited liability company.

 

At September 30, 2017, total assets were approximately $56.9 million compared to approximately $38.4 million at December 31, 2016. The company’s loan portfolio at September 30, 2017 and December 31, 2016 was approximately $52.7 million and $33.75 million, respectively.

 

At September 30, 2017, total liabilities were approximately $17.7 million, including approximately $15.9 million outstanding under the company’s line of credit with Bankwell Bank and approximately a $304,000 outstanding balance on a term loan secured by a first mortgage lien on the property purchased by the company in December 2016 as its new headquarters. In comparison, at December 31, 2016, total liabilities were approximately $9.9 million, including approximately $8.1 million outstanding under the line of credit from Bankwell Bank and a $310,000 outstanding balance on the term loan.

 

Shareholders’ equity at September 30, 2017 was approximately $39.2 million compared to members’ equity at December 31, 2016 of approximately $28.5 million.

 

Additional Information

 

Additional information regarding the company’s operating results for the three- and nine-month periods ending and its financial condition at September 30, 2017 will be included in the company’s Quarterly Report on Form 10-Q, which it expects to file on or before November 14, 2017.

 

The company considers a variety of factors when approving common stock dividends including its operating results for its most recently completed fiscal quarter, its liquidity, its current estimate of overall profitability and working capital needs and its estimate of taxable income. Taxable and GAAP earnings are expected to differ in the near term -- principally as a result of the company’s initial public offering.

 

 

 

 

About Sachem Capital Corp.

 

Sachem Capital Corp. specializes in originating, underwriting, funding, servicing and managing a portfolio of first mortgage loans. It offers short term secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. The company does not lend to owner occupants. The company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the company’s loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and may also be secured with additional real estate collateral. Each loan is also personally guaranteed by the principal(s) of the borrower, which guaranty may be collaterally secured by a pledge of the guarantor’s interest in the borrower. The company also makes opportunistic real estate purchases apart from its lending activities. SCC believes that it qualifies as a real estate investment trust (REIT) for federal income tax purposes and intends to make the election to be taxed as a REIT when it files its 2017 federal income tax return.

 

Forward Looking Statements

 

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward- looking statements.

 

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in our Annual Report on Form 10-K for the year ended December 31, 2016. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. In addition, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We disclaim any duty to update any of these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties.

 

###

 

 

 

 

 

 

 

 

 

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

 

Date of Report (Date of earliest event reported): October 19, 2017

  

SACHEM CAPITAL CORP.

(Exact name of Registrant as specified in its charter)

 

New York   001-37997   81-3467779
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

 

23 Laurel Street, Branford, Connecticut   06405
(Address of Principal Executive Office)   (Zip Code)

 

Registrant's telephone number, including area code (203) 433-4736

 

 
(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:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).       

Emerging growth company       x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

 

 

 

 

 

 

 

Item 2.02.Results of Operations and Financial Condition.

 

On October 19, 2017, Sachem Capital Corp. (“Sachem”) issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, announcing financial results for the period ended September 30, 2017.

 

Item 8.01.Other Events.

 

On October 19, 2017, Sachem issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, announcing financial results for the period ended September 30, 2017 and the 3rd quarter dividend.

  

Item 9.01.Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit

No.

 

Description

99.1 Press release, dated October 19, 2017, announcing financial results for period ended September 30, 2017.

 

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

* * * * *

 

 

2 

 

 

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.

 

  Sachem Capital Corp.  
       
       
Dated: October 19, 2017 By: /s/ John L. Villano  
    John L. Villano, CPA  
    Co-Chief Executive Officer and  
    Chief Financial Officer  

 

 

3 

 

 

Exhibit Index

 

Exhibit

Number

Description
   
99.1 Press release, dated October 19, 2017, announcing financial results for period ended September 30, 2017.

 

 

4 

View differences made from one to another to evaluate Sachem Capital Corp.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Sachem Capital Corp..

Continue

Assess how Sachem Capital Corp.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Sachem Capital Corp.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2017 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Material Contracts, Statements, Certifications & more

Sachem Capital Corp. provided additional information to their SEC Filing as exhibits

Ticker: SACH
CIK: 1682220
Form Type: 8-K Corporate News
Accession Number: 0001144204-17-053233
Submitted to the SEC: Thu Oct 19 2017 4:15:07 PM EST
Accepted by the SEC: Thu Oct 19 2017
Period: Thursday, October 19, 2017
Industry: Real Estate Investment Trusts
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Other Events

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/sach/0001144204-17-053233.htm