OTCMKTS:BMNM Bimini Capital Management Q4 2024 Earnings Report $0.88 -0.07 (-7.53%) As of 04/24/2025 01:41 PM Eastern Earnings History Bimini Capital Management EPS ResultsActual EPS-$0.15Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ABimini Capital Management Revenue ResultsActual Revenue$3.28 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ABimini Capital Management Announcement DetailsQuarterQ4 2024Date3/6/2025TimeAfter Market ClosesConference Call DateFriday, March 7, 2025Conference Call Time10:00AM ETUpcoming EarningsBimini Capital Management's Q1 2025 earnings is scheduled for Thursday, May 1, 2025, with a conference call scheduled on Friday, May 2, 2025 at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfilePowered by Bimini Capital Management Q4 2024 Earnings Call TranscriptProvided by QuartrMarch 7, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Good morning, and welcome to the Fourth Quarter twenty twenty four Earnings Conference Call for Bimini Capital Management. This call is being recorded today, 03/07/2025. At this time, the company would like to remind the listeners that statements made during today's conference call relating to matters that are not historical facts are forward looking statements subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward looking statements are based on information currently available on the management's good faith belief with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward looking statements. Important factors that could cause cause such differences are described in the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10 K. Operator00:00:49The company assumes no obligation to update such forward looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward looking statements. Now, I would like to turn the conference call over to the company's Chairman and Chief Executive Officer, Mr. Robert Cawley. Please go ahead, sir. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:01:05Thank you, operator, and good morning. The outlook for the market continues to pivot. As the third quarter came to an end, inflation was falling towards the Fed's two percent target, the labor market was cooling as hiring levels moderated and the unemployment rate was slowly creeping higher, and the Fed had finally lowered the Fed funds rate by 50 basis points. At the time, the market expected the Fed to lower the rate by over 200 basis points over the next eighteen months. As we know now, beginning early in the fourth quarter, the incoming data turned. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:01:37However, even as the economic outlook shifted, the Fed did lower the Fed funds rate two more times during the fourth quarter of twenty twenty four by 25 basis points in each case. With the Fed funds rate lowered by 100 basis points over the course of the quarter, the persistently strong economic outlook led to a disinversion of the yield curve. However, market expectations for additional reductions in the Fed funds rate continue to decline over the course of the fourth quarter and into 2025. Now as we move further into 2025 and the Trump administration begins to implement its policy objectives, namely tariffs, a crackdown on immigration, an effort to end the war in Ukraine, among others, the outlook has once again shifted. Current market expectations are much less optimistic. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:02:25Growth appears to be slowing, inflation not so much, consumer confidence measures have plummeted and interest rates have declined as rate volatility has increased. Now the expectations for additional Fed easing are rising as opposed to the end of the second or the end of twenty twenty four. Now I will turn to our results for the quarter and the outlook going forward. Wilkin Island Capital reported fourth quarter twenty twenty four net income of $5,600,000 and its shareholders' equity increased slightly over the third quarter from $656,000,000 to $668,500,000 As a result, Bimini's advisory service revenue also increased slightly to $3,400,000 compared to $3,300,000 for the third quarter. Further, as late in late February, Orchid reported yet another increase in its shareholders' equity base, which should lead to another increase in advisory service revenue for the first quarter of twenty twenty five. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:03:22As you know, owing to our net operating losses, we have the ability to retain earnings and deploy them into our investment portfolio. The investment portfolio at Royal Palm generated net interest income of $300,000 Dividends on our Orchid stock were 200,000 In addition, mark to market gains and losses on our MDS portfolio, hedge positions and shares of Orchid netted to income of $100,000 The MDS portfolio increased by $4,000,000 during the fourth quarter of twenty twenty five and increased by 29,500,000 for the year. Bimini has positive cash flows from operations for the fourth quarter and the full year ended 12/31/2024, which has allowed us to grow the MBS portfolio throughout the year. As the portfolio has grown over the last two years, our gross interest income has grown from $600,000 for the first quarter of twenty twenty three to $1,700,000 for the fourth quarter of twenty twenty four. Over the same period, our repurchase agreement related interest expense increased from 500,000 for the first quarter of twenty twenty three to $1,400,000 for the fourth quarter. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:04:31As a result, our net interest income from the portfolio has increased, benefiting from reductions in short term rates initiated by the Federal Reserve. Obviously, to the extent we remain cash flow positive, this trend can continue. The company, inclusive of both the Advisory Services segment and the Investment Portfolio segment, recorded net income before taxes for the twenty twenty four fourth quarter of $500,000 versus a net loss before taxes of $800,000 for the third quarter. We updated our projected utilization of our deferred tax assets and increased the valuation allowance resulting in a net tax provision of $2,100,000 and a net loss for the fourth quarter of twenty twenty four of $1,500,000 Looking forward, the economic outlook continues to change frequently and we are living them through a very fluid period. The ultimate impact of interest rate on interest rate levels, Federal Reserve monetary policy or the MBS market remains to be seen. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:05:30However, quarter to date market conditions have generally been favorable for both the Orchid and Royal Palm investment portfolios. We look forward to discussing our results at the end of the quarter. Operator, that concludes my prepared remarks. We can open up the call to questions. Operator00:06:01I'm showing no questions in queue at this time. I'd like to turn the call back to Mr. Colley for closing remarks. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:06:06Thank you, operator. And again, thank you everybody for listening in. To the extent you did not get a chance to ask a question because you missed the call and listened to the replay or you just had another question that came up, please feel free to reach out to us at the office. The number is (772) 231-1400. Otherwise, we look forward to talking to you at the end of the first quarter. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:06:28Thank you. Operator00:06:29This concludes today's conference call. Thank you for participating. You may now disconnect.Read moreParticipantsExecutivesRobert CauleyChairman, CEO & SecretaryPowered by Conference Call Audio Live Call not available Earnings Conference CallBimini Capital Management Q4 202400:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsPress Release(8-K)Annual report(10-K) Bimini Capital Management Earnings HeadlinesBimini Capital Management Inc (BMNM) Q4 2024 Earnings Call Highlights: Navigating Economic ...April 21, 2025 | finance.yahoo.comBimini Capital Management to Announce First Quarter 2025 ResultsApril 8, 2025 | globenewswire.comHere’s How to Claim Your Stake in Elon’s Private Company, xAII predict this single breakthrough could make Elon the world’s first trillionaire — and mint more new millionaires than any tech advance in history. And for a limited time, you have the chance to claim a stake in this project, even though it’s housed inside Elon’s private company, xAI.April 26, 2025 | Brownstone Research (Ad)Bimini Capital Management, Inc. (PNK:BMNM) Q4 2024 Earnings Call TranscriptMarch 10, 2025 | msn.comBimini Capital Management, Inc. (BMNM) Q4 2024 Earnings Call TranscriptMarch 7, 2025 | seekingalpha.comBimini Capital Management Announces Fourth Quarter 2024 ResultsMarch 6, 2025 | globenewswire.comSee More Bimini Capital Management Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Bimini Capital Management? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Bimini Capital Management and other key companies, straight to your email. Email Address About Bimini Capital ManagementBimini Capital Management (OTCMKTS:BMNM), through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.View Bimini Capital Management ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step In Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Good morning, and welcome to the Fourth Quarter twenty twenty four Earnings Conference Call for Bimini Capital Management. This call is being recorded today, 03/07/2025. At this time, the company would like to remind the listeners that statements made during today's conference call relating to matters that are not historical facts are forward looking statements subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Listeners are cautioned that such forward looking statements are based on information currently available on the management's good faith belief with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward looking statements. Important factors that could cause cause such differences are described in the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10 K. Operator00:00:49The company assumes no obligation to update such forward looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward looking statements. Now, I would like to turn the conference call over to the company's Chairman and Chief Executive Officer, Mr. Robert Cawley. Please go ahead, sir. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:01:05Thank you, operator, and good morning. The outlook for the market continues to pivot. As the third quarter came to an end, inflation was falling towards the Fed's two percent target, the labor market was cooling as hiring levels moderated and the unemployment rate was slowly creeping higher, and the Fed had finally lowered the Fed funds rate by 50 basis points. At the time, the market expected the Fed to lower the rate by over 200 basis points over the next eighteen months. As we know now, beginning early in the fourth quarter, the incoming data turned. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:01:37However, even as the economic outlook shifted, the Fed did lower the Fed funds rate two more times during the fourth quarter of twenty twenty four by 25 basis points in each case. With the Fed funds rate lowered by 100 basis points over the course of the quarter, the persistently strong economic outlook led to a disinversion of the yield curve. However, market expectations for additional reductions in the Fed funds rate continue to decline over the course of the fourth quarter and into 2025. Now as we move further into 2025 and the Trump administration begins to implement its policy objectives, namely tariffs, a crackdown on immigration, an effort to end the war in Ukraine, among others, the outlook has once again shifted. Current market expectations are much less optimistic. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:02:25Growth appears to be slowing, inflation not so much, consumer confidence measures have plummeted and interest rates have declined as rate volatility has increased. Now the expectations for additional Fed easing are rising as opposed to the end of the second or the end of twenty twenty four. Now I will turn to our results for the quarter and the outlook going forward. Wilkin Island Capital reported fourth quarter twenty twenty four net income of $5,600,000 and its shareholders' equity increased slightly over the third quarter from $656,000,000 to $668,500,000 As a result, Bimini's advisory service revenue also increased slightly to $3,400,000 compared to $3,300,000 for the third quarter. Further, as late in late February, Orchid reported yet another increase in its shareholders' equity base, which should lead to another increase in advisory service revenue for the first quarter of twenty twenty five. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:03:22As you know, owing to our net operating losses, we have the ability to retain earnings and deploy them into our investment portfolio. The investment portfolio at Royal Palm generated net interest income of $300,000 Dividends on our Orchid stock were 200,000 In addition, mark to market gains and losses on our MDS portfolio, hedge positions and shares of Orchid netted to income of $100,000 The MDS portfolio increased by $4,000,000 during the fourth quarter of twenty twenty five and increased by 29,500,000 for the year. Bimini has positive cash flows from operations for the fourth quarter and the full year ended 12/31/2024, which has allowed us to grow the MBS portfolio throughout the year. As the portfolio has grown over the last two years, our gross interest income has grown from $600,000 for the first quarter of twenty twenty three to $1,700,000 for the fourth quarter of twenty twenty four. Over the same period, our repurchase agreement related interest expense increased from 500,000 for the first quarter of twenty twenty three to $1,400,000 for the fourth quarter. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:04:31As a result, our net interest income from the portfolio has increased, benefiting from reductions in short term rates initiated by the Federal Reserve. Obviously, to the extent we remain cash flow positive, this trend can continue. The company, inclusive of both the Advisory Services segment and the Investment Portfolio segment, recorded net income before taxes for the twenty twenty four fourth quarter of $500,000 versus a net loss before taxes of $800,000 for the third quarter. We updated our projected utilization of our deferred tax assets and increased the valuation allowance resulting in a net tax provision of $2,100,000 and a net loss for the fourth quarter of twenty twenty four of $1,500,000 Looking forward, the economic outlook continues to change frequently and we are living them through a very fluid period. The ultimate impact of interest rate on interest rate levels, Federal Reserve monetary policy or the MBS market remains to be seen. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:05:30However, quarter to date market conditions have generally been favorable for both the Orchid and Royal Palm investment portfolios. We look forward to discussing our results at the end of the quarter. Operator, that concludes my prepared remarks. We can open up the call to questions. Operator00:06:01I'm showing no questions in queue at this time. I'd like to turn the call back to Mr. Colley for closing remarks. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:06:06Thank you, operator. And again, thank you everybody for listening in. To the extent you did not get a chance to ask a question because you missed the call and listened to the replay or you just had another question that came up, please feel free to reach out to us at the office. The number is (772) 231-1400. Otherwise, we look forward to talking to you at the end of the first quarter. Robert CauleyChairman, CEO & Secretary at Bimini Capital Management00:06:28Thank you. Operator00:06:29This concludes today's conference call. Thank you for participating. You may now disconnect.Read moreParticipantsExecutivesRobert CauleyChairman, CEO & SecretaryPowered by