Apollo Residential Mortgage, Inc. Reports Third Quarter 2013 Financial Results

NEW YORK, NY--(Marketwired - Nov 6, 2013) - Apollo Residential Mortgage, Inc. (the "Company") (NYSE: AMTG) today reported financial results for the three and nine month periods ended September 30, 2013.

Third Quarter 2013 Summary

• Reported operating earnings⁽¹⁾ of $11.4 million, or $0.36 per common share, for the quarter ended September 30, 2013. Reported net income allocable to common stock and participating securities of $8.2 million, or $0.25 per common share, for the quarter ended September 30, 2013;

• $3.4 billion RMBS portfolio at September 30, 2013 consisted of Agency RMBS with an estimated fair value of $2.3 billion and non-Agency RMBS with an estimated fair value of $1.1 billion;

• RMBS and securitized mortgage loan portfolio had a 2.6% effective net interest rate spread and a 14.0% effective levered asset yield⁽¹⁾ at September 30, 2013;

• Quarter end leverage multiple of 3.8x at September 30, 2013;

• Declared a $0.40 per common share quarterly dividend;

• Book value per common share at September 30, 2013 was $18.50; and

• Subsequent to quarter end, the Board of Directors authorized the repurchase of up to $50 million of the Company's outstanding shares of common stock.
  

⁽¹⁾ Reflects a non-GAAP" financial measure (i.e., a measure that is not calculated in accordance with U.S. Generally Accepted Accounting Principles. See "Reconciliations of Non-GAAP Financial Measures" ) in this press release.

"Given the ongoing volatility in the fixed income markets during the third quarter, AMTG continued to rebalance the Company's portfolio," said Michael Commaroto, Chief Executive Officer of the Company. "Throughout the quarter, we opportunistically deployed capital into non-Agency RMBS and continued to reduce leverage. As a result, at quarter end, our portfolio equity was allocated 43% to non-Agency RMBS and securitized mortgage loans, 47% to Agency RMBS and 10% to cash and our leverage ratio was 3.8x. Our operating earnings this quarter reflect the time lag associated with reinvesting the proceeds from the sale of our Agency RMBS into non-Agency RMBS and therefore, we believe they are not indicative of the potential earnings power of our investment portfolio with our current equity allocation. As interest rates continue to fluctuate, AMTG will remain focused on expanding our footprint in the non-Agency market and exploring additional credit-related strategies."

Third Quarter 2013 Financial Results
The Company reported operating earnings of $11.4 million, or $0.36 per common share, for the three months ended September 30, 2013, as compared to operating earnings of $16.2 million, or $0.67 per common share, for the three months ended September 30, 2012. Net income allocable to common stock and participating securities for the three months ended September 30, 2013 was $8.2 million, or $0.25 per common share, as compared to net income allocable to common stock and participating securities of $70.4 million, or $2.91 per common share for the three months ended September 30, 2012.

For the nine months ended September 30, 2013, the Company reported operating earnings of $49.4 million, or $1.65 per common share, as compared to operating earnings of $38.1 million, or $2.05 per common share, for the nine months ended September 30, 2012. Net loss allocable to common stock and participating securities for the nine months ended September 30, 2013 was $66.1 million, or $2.22 per common share, as compared to net income allocable to common stock and participating securities of $116.9 million, or $6.28 per common share, for the nine months ended September 30, 2012.

The difference between operating earnings and net income/(loss) allocable to common stockholders, its closest GAAP measure, primarily reflects that operating earnings excludes the following: (i) net unrealized gains/losses on investments; (ii) net changes in the fair value of derivative instruments and net realized gains/losses on the termination of derivative instruments; and (iii) net realized gains/losses from sales of investments. Reconciliations of operating earnings to net income/(loss) allocable to common stockholders for the three and nine months ended September 30, 2013 and September 30, 2012, respectively, are set forth in Tables 6 and 7 of this press release.

Portfolio Summary (Table 1)
The following table sets forth additional detail regarding the Company's investments as of September 30, 2013:

		Principal Balance			Unamortized Premium (Discount), Net(1)				Amortized Cost (2)			Estimated Fair Value			Unrealized Gain/(Loss)				Net Weighted Average Coupon			Weighted Average Yield (3)
($ amounts in thousands)
Agency RMBS:
30-Year Mortgages
	ARM	$	12,337		$	827			$	13,164		$	13,089		$	(75	)		4.09	%		1.77	%
Fixed-rate coupons:
	3.5%		468,755			30,771				499,526			477,308			(22,218	)		3.50	%		2.49	%
	4.0%		1,514,596			131,741				1,646,337			1,587,384			(58,953	)		4.00	%		2.51	%
	4.5% & 5.0%		54,328			4,401				58,729			58,624			(105	)		4.59	%		3.12	%
			2,050,016			167,740				2,217,756			2,136,405			(81,351	)		3.90	%		2.52	%
15-Year Mortgages
	3.0% Coupons		53,640			1,428				55,068			55,478			410			3.00	%		2.45	%
Agency IOs (4)			-			-				42,962			43,272			310			3.93	%		13.66	%
Agency IIOs(4)			-			-				28,403			25,367			(3,036	)		6.37	%		16.06	%
Total Agency RMBS			2,103,656			169,168				2,344,189			2,260,522			(83,667	)		4.05	%		2.88	%
Non-Agency RMBS			1,356,359			(300,657	)			1,055,702			1,117,820			62,118			1.24	%		6.87	%
Total RMBS		$	3,460,015		$	(131,489	)		$	3,399,891		$	3,378,342		$	(21,549	)		3.11	%		4.11	%
Securitized Mortgage Loans		$	151,383		$	(41,709	)		$	109,674		$	109,586		$	(88	)		5.86	%		8.19	%
Other Investment Securities		$	11,596		$	-			$	11,596		$	11,712		$	116			3.59	%		3.59	%
Total Portfolio		$	3,622,994		$	(173,198	)		$	3,521,161		$	3,499,640		$	(21,521	)		3.20	%		4.24	%

Note: The Company applies trade-date accounting. Included in the above table are unsettled purchases with an aggregate cost of $91 at September 30, 2013, with an estimated fair value of $92 at such date.

⁽¹⁾ A portion of the purchase discount on non-Agency RMBS is not expected to be recognized as interest income, and is instead viewed as a credit discount. At September 30, 2013, our non-Agency RMBS had gross discounts of $300,964 which included credit discounts of $123,681 and other-than-temporary impairments ("OTTI") of $5,554.
⁽²⁾ Amortized cost is reduced by unrealized losses that are classified as OTTI. The Company recognized OTTI of $2,747 and $7,699 for the three and nine months ended September 30, 2013, respectively.
⁽³⁾ Weighted average yield at the date presented incorporates estimates for future prepayment assumptions on all RMBS and loss assumptions on non-Agency RMBS.
⁽⁴⁾ Agency IOs and Agency IIOs have no principal balance and bear interest based on a notional balance. The notional balance is used solely to determine interest distributions on interest-only class of securities. At September 30, 2013, the Company's Agency IOs had a notional balance of $429,204 and the Company's Agency IIOs had a notional balance of $155,676.

As of September 30, 2013, the average cost basis of the Company's Agency RMBS portfolio, excluding Agency IOs and Agency IIOs, was 108.0% of par value and the average cost basis of the Company's non-Agency RMBS portfolio was 77.8% of par value.

The Agency RMBS pass-through securities portfolio experienced prepayments at an average one month constant prepayment rate ("CPR") over the quarter ended September 30, 2013 of 6.3%. Including Agency IOs and Agency IIOs securities, the Agency RMBS portfolio experienced prepayments at an average one month CPR of 6.7% over the quarter ended September 30, 2013.

Portfolio Financing
At September 30, 2013, the Company had master repurchase agreements with 23 counterparties and had outstanding borrowings with 17 counterparties totaling $2.9 billion.

(Table 2)
The following table sets forth the Company's borrowings at September 30, 2013:

($ amounts in thousands)			Balance			Weighted Average Borrowing Rate		Weighted Average Remaining Maturity
Repurchase agreement borrowings:
	Agency RMBS		$	1,989,518		0.41%		40 days
	Non-Agency RMBS(1)			884,362		2.00		124 days
	Other investment securities			7,800		1.76		25 days
Total repurchase agreements			$	2,881,680		0.90%		66 days
Securitized debt			$	45,590		4.00%		58 months(2)
Total borrowings			$	2,927,270		0.95%

⁽¹⁾ Includes $27,014 of repurchase borrowings collateralized by non-Agency RMBS acquired in connection with the Company's securitization transaction from a consolidated variable interest entity ("VIE") at September 30, 2013 that is eliminated from our consolidated balance sheet.
⁽²⁾ Securitized debt, which represents non-recourse senior securities sold to third parties in connection with a securitization transaction, has a final contractual maturity of May 2047. Weighted average remaining maturity represents the estimated final maturity of the security based on the final projected repayment of principal. The actual maturity of the securitized debt may differ significantly from this estimate given that actual interest collections, mortgage prepayments and/or losses on liquidation of mortgages may differ significantly from those expected.

(Table 3)
The Company's derivative instruments consisted of the following at September 30, 2013:

($ amounts in thousands)		Notional Amount			Estimated Fair Value
Swaps - assets		$	1,187,000		$	38,907
Swaptions - assets			1,175,000			13,757
Swaps - (liabilities)			680,000			(6,172	)
Total derivative instruments		$	3,042,000		$	46,492

(Table 4)
The following table summarizes the average fixed-pay rate and average maturity for the Company's Swaps at September 30, 2013:

Term to Maturity ($ amounts in thousands)		Notional Amount			Average Fixed Pay Rate			Average Maturity (Years)
Greater than 1 year to 3 years		$	45,000		1.30	%		2.9
Greater than 3 years to 5 years			1,114,000		1.05			3.8
Greater than 5 years			708,000		2.01			9.0
Total		$	1,867,000		1.42	%		5.8

(Table 5)
At September 30, 2013, the Company's Swaptions had an aggregate notional amount of $1.2 billion. The following table presents information about the Company's Swaptions at September 30, 2013:

($ amounts in thousands)			Option					Underlying Swap
Fixed Pay Rate for Underlying Swap			Fair Value			Weighted Average Months Until Option Expiration		Notional Amount			Swap Terms (Years)
	3.00 - 3.25%		$	2,236		9		$	100,000		10
	3.26 - 3.50%			6,065		7			475,000		10
	3.51 - 3.75%			3,277		7			375,000		10
	3.76 - 4.00%			1,495		11			125,000		10
	4.01 - 4.41%			684		11			100,000		10
			$	13,757		8		$	1,175,000		10

Book Value
The Company's book value per common share at September 30, 2013 was $18.50 as compared to book value per common share of $18.63 at June 30, 2013.

Stock Repurchase Plan
Subsequent to quarter end, the Board of Directors authorized the repurchase of up to $50 million of the Company's outstanding shares of common stock.

Purchases made pursuant to the stock repurchase program will be made in either the open market or in privately negotiated transactions on a periodic basis as permitted by applicable securities laws. The timing, pricing and manner of any purchases will be determined by the Company in light of market conditions, available investment alternatives and capital availability.

Teleconference and Website Presentation Details:
The Company will be hosting a conference call to discuss its financial results on Thursday, November 7, 2013 at 9:00 a.m. Eastern Time. Members of the public who are interested in participating in the Company's third quarter earnings teleconference call should dial from the U.S., (877) 445-0818, or from outside the U.S., (724) 498-0351, shortly before 9:00 a.m. and reference the Apollo Residential Mortgage, Inc. Teleconference Call (number 79625205). Please note the teleconference call will be available for replay beginning at 12:00 p.m. on Thursday, November 7, 2013, and ending at midnight on Thursday, November 14, 2013. To access the replay, callers from the U.S. should dial (855) 859-2056 and callers from outside the U.S. should dial (404) 537-3406, and enter conference identification number 79625205.

Webcast:
The conference call will also be available on the Company's website at www.apolloresidentialmortgage.com. To listen to a live broadcast, please go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will also be available for 30 days on the Company's website.

Supplemental Information
The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the investor relations section of the Company's website at www.apolloresidentialmortgage.com.

About Apollo Residential Mortgage, Inc.
Apollo Residential Mortgage, Inc is a real estate investment trust that invests in and manages residential mortgage-backed securities and other residential mortgage assets throughout the United States. The Company is externally managed and advised by ARM Manager, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, LLC (NYSE: APO), a leading global alternative investment manager with approximately $113 billion of assets under management at June 30, 2013.

Additional information can be found on the Company's website at www.apolloresidentialmortgage.com.

Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives, including information about the ability of the Company to generate attractive returns while attempting to mitigate risk. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and other reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Apollo Residential Mortgage, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands-except share and per share data)
			September 30, 2013				December 31, 2012
			(Unaudited)
Assets:
	Cash		$	142,242			$	149,576
	Restricted cash			60,996				93,641
	RMBS, at fair value (of which $3,185,374 and $3,940,913 were pledged as collateral, respectively)			3,378,342				4,231,291
	Securitized mortgage loans (transferred to a consolidated VIE), at fair value			109,586				-
	Other investment securities, at fair value (of which $11,712 and $0 were pledged as collateral, respectively)			11,712				-
	Investment related receivables			3,684				-
	Interest receivable			10,048				11,341
	Deferred financing costs, net			914				346
	Derivative instruments, at fair value			52,664				750
	Other assets			956				976
Total Assets			$	3,771,144			$	4,487,921
Liabilities and Stockholders' Equity
Liabilities:
	Borrowings under repurchase agreements		$	2,881,680			$	3,654,436
	Non-recourse securitized debt, at fair value			46,003				-
	Investment related payables			91				50,032
	Obligation to return cash held as collateral			42,381				-
	Accrued interest payable			7,155				6,774
	Derivative instruments, at fair value			6,172				23,184
	Payable to related party			3,770				4,295
	Dividends payable			16,714				30,675
	Accounts payable and accrued expenses			2,135				1,742
Total Liabilities			$	3,006,101			$	3,771,138
Stockholders' Equity:
	Preferred stock, $0.01 par value, 50,000,000 shares authorized, 6,900,000 shares issued and outstanding ($172,500 aggregate liquidation preference)		$	69			$	69
	Common stock, $0.01 par value, 450,000,000 shares authorized, 32,037,408 and 24,205,972 shares issued and outstanding, respectively			320				242
	Additional paid-in-capital			791,619				619,399
Retained earnings/(accumulated deficit)				(26,965	)			97,073
Total Stockholders' Equity			$	765,043			$	716,783
Total Liabilities and Stockholders' Equity			$	3,771,144			$	4,487,921

Apollo Residential Mortgage, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in thousands - except per share data)
			Three months ended September 30,								Nine months ended September 30,
			2013				2012				2013				2012
Interest Income:
	RMBS		$	32,013			$	26,438			$	107,959			$	60,791
	Securitized mortgage loans			2,324				-				5,954				-
	Other investment securities			79				-				79				-
Total Interest Income				34,416				26,438				113,992				60,791
Interest Expense:
	Repurchase agreements			(6,299	)			(4,289	)			(18,935	)			(8,521	)
	Securitized debt			(490	)			-				(1,308	)			-
Total Interest Expense				(6,789	)			(4,289	)			(20,243	)			(8,521	)
Net Interest Income			$	27,627			$	22,149			$	93,749			$	52,270
Other Income/(Loss):
	Realized gain/(loss) on sale of RMBS, net		$	(16,596	)		$	13,861			$	(48,309	)		$	32,244
	Unrealized gain/(loss) on RMBS, net			28,143				54,913				(139,727	)			75,461
	Unrealized gain/(loss) on securitized mortgage loans			537				-				(88	)			-
	Unrealized (loss) on securitized debt			(428	)			-				(413	)			-
	Unrealized gain on other investment securities			116				-				116				-
	Gain/(loss) on derivative instruments, net (includes ($27,572), ($9,831), $50,547 and ($24,192) of unrealized gains/(losses), respectively)			(21,687	)			(16,653	)			55,884				(33,486	)
	Other, net			4				16				72				25
Other Income/(Loss), net			$	(9,911	)		$	52,137			$	(132,465	)		$	74,244
Operating Expenses:
	General and administrative (includes $207, $105, $752 and $274 of non-cash stock based compensation, respectively)		$	(3,089	)		$	(1,858	)		$	(8,374	)		$	(5,211	)
	Management fee - related party			(2,941	)			(2,031	)			(8,651	)			(4,386	)
Total Operating Expenses			$	(6,030	)		$	(3,889	)		$	(17,025	)		$	(9,597	)
Net Income/(Loss)			$	11,686			$	70,397			$	(55,741	)		$	116,917
Preferred Stock Dividends Declared				(3,450	)			-				(10,350	)			-
Net Income/(Loss) Allocable to Common Stock and Participating Securities			$	8,236			$	70,397			$	(66,091	)		$	116,917
Earnings/(Loss) per Common Share - Basic and Diluted			$	0.25			$	2.91			$	(2.22	)		$	6.28
Dividends Declared per Share of Common Stock			$	0.40			$	0.85			$	1.80			$	2.35

Reconciliations of Non-GAAP Financial Measures

Included in this press release are disclosures about the Company's "operating earnings," "operating earnings per common share," "effective cost of funds," "effective interest expense," "effective levered asset yield" and "effective net interest rate spread" which measures constitute non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company believes that the non-GAAP financial measures presented, when considered together with GAAP financial measures, provide information that is useful to investors in understanding the Company's operating results. An analysis of any non-GAAP financial measures should be made in conjunction with results presented in accordance with GAAP.

Operating earnings and operating earnings per common share presented exclude, as applicable: (i) certain realized and unrealized gains and losses recognized through earnings; (ii) non-cash equity compensation; (iii) one time events pursuant to changes in GAAP; and (iv) certain other non-cash charges. Operating earnings is a non-GAAP financial measure that is used by the Company to assess its business results.

To determine the effective cost of funds, interest expense is adjusted to include the net interest component related to Swaps. While the Company has not elected hedge accounting for its Swaps, such derivative instruments are viewed by the Company as an economic hedge against increases in future market interest rates. Therefore, the Company presents the effective cost of funds to reflect interest expense as adjusted to include a portion of the realized loss (i.e., the interest expense component) for Swaps.

The Company believes that the presentation of effective cost of funds is useful for investors as it presents the Company's borrowing costs as viewed by management. The Company believes that the non-GAAP measures presented provide investors, and other readers of this press release with meaningful information to assess the performance of the Company's ongoing business and believe it is useful supplemental information for both management and investors in evaluating the Company's financial results. The primary limitation associated with operating earnings as a measure of the Company's financial performance over any period is that such measure excludes, except for the net interest component of Swaps, the effects of net realized and unrealized gains and losses from investments and realized and unrealized gains and losses from derivative instruments. In addition, the Company's presentation of operating earnings may not be comparable to similarly-titled measures of other companies, who may use different definitions or calculations for such term. As a result, operating earnings should not be considered as a substitute for GAAP net income as a measure of the Company's financial performance or the Company's liquidity under GAAP.

A reconciliation of the GAAP items discussed above to their non-GAAP measures for the three and nine months ended September 30, 2013 and the three and nine months ended September 30, 2012, are presented in the tables below.

(Table 6)
The following table reconciles net income/(loss) allocable to common stockholders with operating earnings for the three months ended September 30, 2013 and September 30, 2012, respectively:

			Three months ended September 30, 2013								Three months ended September 30, 2012
($ amounts in thousands except share and per share data)							Earnings Per Share(1)								Earnings Per Share(1)
Net income allocable to common stockholders			$	8,158			$	0.25			$	70,249			$	2.91
Adjustments:
	Non-cash stock-based compensation expense			207				0.01				105				-
	Unrealized (gain) on RMBS, net			(28,143	)			(0.88	)			(54,913	)			(2.27	)
	Unrealized loss on derivatives, net			27,572				0.86				9,831				0.40
	Unrealized (gain) on securitized mortgage loans, net			(537	)			(0.02	)			-				-
	Unrealized loss on securitized debt, net			428				0.01				-				-
	Unrealized (gain) on other investment securities			(116	)			-				-				-
	Realized (gain)/loss on sale of RMBS, net			16,596				0.52				(13,861	)			(0.57	)
	Realized (gain)/loss on Swap/Swaption terminations, net			(12,498	)			(0.38	)			4,747				0.20
	Realized (gain) on TBA Short(2), net			(281	)			(0.01	)			-				-
Total adjustments to arrive at operating earnings:				3,228				0.11				(54,091	)			(2.24	)
Operating earnings			$	11,386			$	0.36			$	16,158			$	0.67
Basic and diluted weighted average common shares outstanding:				31,999,792								24,214,410

(1)	Reflects basic and diluted earnings per share for each component presented.
(2)	A TBA Short refers to a "to-be-announced" contract to sell certain Agency RMBS on a forward basis.

(Table 7)
The following table reconciles net income/(loss) allocable to common stockholders with operating earnings for the nine months ended September 30, 2013 and September 30, 2012, respectively:

			Nine months ended September 30, 2013								Nine months ended September 30, 2012
($ amounts in thousands except share and per share data)							Earnings Per Share(1)								Earnings Per Share(1)
Net income/(loss) allocable to common stockholders			$	(66,442	)		$	(2.22	)		$	116,628			$	6.28
Adjustments:
	Non-cash stock-based compensation expense			752				0.03				274				0.01
	Unrealized (gain)/loss on RMBS, net			139,727				4.67				(75,461	)			(4.06	)
	Unrealized (gain)/loss on derivatives, net			(50,547	)			(1.69	)			24,192				1.30
	Unrealized loss on securitized mortgage loans, net			88				-				-				-
	Unrealized loss on securitized debt, net			413				0.01				-				-
	Unrealized gain on other investment securities			(116	)			-				-
	Realized (gain)/loss on sale of RMBS, net			48,309				1.61				(32,244	)			(1.73	)
	Realized (gain)/loss on Swap/Swaption terminations, net			(22,526	)			(0.75	)			4,709				0.25
	Realized gain on TBA Short(2), net			(281	)			(0.01	)			-				-
Total adjustments to arrive at operating earnings:			$	115,819			$	3.87			$	(78,530	)			(4.23	)
Operating earnings			$	49,377			$	1.65			$	38,098			$	2.05
Basic and diluted weighted average common shares outstanding:				29,916,932								18,628,087

(1)	Reflects basic and diluted earnings per share for each component presented.
(2)	A TBA Short refers to a "to-be-announced" contract to sell certain Agency RMBS on a forward basis.

(Table 8)
The following table reconciles the effective cost of funds with interest expense for the three and nine months ended September 30, 2013:

			Three months ended September 30, 2013						Nine months ended September 30, 2013
($ amounts in thousands except per share data)			Reconciliation			Cost of Funds/ Effective Cost of Funds			Reconciliation			Cost of Funds/ Effective Cost of Funds
Interest Expense			$	6,789		0.89	%		$	20,243		0.74	%
Adjustment:
	Net interest paid for Swaps			6,894		0.91	%			17,470		0.63	%
Effective interest expense/effective cost of funds			$	13,683		1.80	%		$	37,713		1.37	%
Weighted average balance of borrowings			$	3,013,372					$	3,671,026