Exhibit 99.1 ABS West Conference Slides

EX-99 3 ex99.htm EXHIBIT 99.1 Exhibit 99.1 ABS West Conference Slides

ABS West Conference

February, 2004

Forward-Looking Statements

From time to time the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance and results of the Company's business include the following: increases in mortgage lending interest rates; adverse changes in the secondary market for mortgage loans; decline in real estate values; limited cash flow to fund operations; dependence on short-term financing facilities; concentration of operations in California, Florida and Texas; extensive government regulation; intense competition in the mortgage lending industry and the condition of the U.S. economy and financial system. For a more complete discussion of these risks and uncertainties, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 30, 2003 and subsequent filings by the Company with the United States Securities and Exchange Commission.

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Purpose of Meeting

-	Aames Today

-	Loan Production Overview

-	Collateral Performance

-	2003 Financial Highlights

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Highlights

($ in millions)


	Year Ended June 30,								6 mo. annualized
	2000		2001		2002		2003		2004
Operations

Production	$ 2,079.	3	$ 2,371.	6	$ 3,242.	5	$ 4,446.	2	$ 6,313.	8
Total Company gross cost %	11.20	%	9.17	%	6.55	%	5.31	%	4.17	.%
Net production cost % (1)	6.85	%	5.02	%	3.67	%	3.44	%	2.83	%
Operating revenue (2)	$ 143.	.9	$ 171.	4	$ 209.	8	$ 236.	7	$ 299.	0

Balance Sheet - FYE

Residual interests	$ 291.	0	$ 237.	8	$ 197.	3	$ 129.	2	$ 51.	2
Corporate debt	$ 275.	5	$ 269.	7	$ 264.	0	$ 138.	5	$ 78.	4
Equity as % of residual	26	%	19	%	19	%	41	%	225	%
Gross liquidity (3)	$ 34.	1	$ 51.	4	$ 96.	3	$ 81.	2	$ 130.	7
Warehouse capacity	$ 650.	0	$ 800.	0	$ 800.	0	$ 900.	0	$ 1,200.	0

(1) (Operating expense + net point & fees) divided by production. Operating expense= Total expense - Interest expense
(2) Operating revenue = GAAP revenue - write down of residual interests - debt extinguishment income + interest expense.
(3) Cash and cash equivalents plus loans held for sale less revolving warehouse and repurchase facilities.

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Aames Today

• $6+ billion originator - non - conforming residential mortgages

• Traditional “brick and mortar” retail network

• $200+ million per month

• 93 branches across the country

• Sophisticated direct response marketing

• Internet/call center retail lending

• 2 centralized origination centers (“National Loan Centers”)

• Broker franchise

• $350+ million per month

• 5 regional centers, 2,800 broker relationships

• Aames Direct internet / telesales

• Q4 2003 Production was $1.6 billion

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Subprime Lending ¹ - Top 20 Lender

• National Mortgage News' ranking of top fifty lenders shows Aames in the top quartile in every category:

• Overall subprime volume - No. 17. @ $1.6 billion

• Wholesale subprime volume - No. 16. @ $350MM+ per month

• #8 independent wholesale origination with 2,970 active broker relationships, 5 regional centers

• Retail subprime volume - No. 10. @ $200 MM per month

• #5 independent wholesale origination with 90+ branches nationwide, 2 national origination centers

¹ Source: National Mortgage News 3Q03 Rankings

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Aames Mortgage Team

Highlighted managers report directly to the CEO.
* Executive Committee Member.

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Aames' Management Focus

• Loan production growth and value

• Disciplined cost management

• Information-based decision-making

• Comprehensive scientific risk evaluation process

• Highly experienced and professional leadership

• Strong performance ethic

• Obligation to the homeowner - each loan provides stated benefits

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Loan Production Overview

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Origination Trends by Channel
Fiscal Year 1996 - 2004

($ in millions)

(1) FY 2004 annualized based on 6 months ended 12/31/03

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Production Mix -Q4 2003

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Underwriting Guidelines

Super AIM:

	"A+"	"A"	"A-"	"B"	"C"	"C-"

12 Month Mortgage History	0 x 30	1 x 30	3 x 30	1 x 60	1 x 90	1 x 120
Minimum Credit Score	500	500	500	500	500	500
BK/NOD/FC(1) Seasoning	24 Months	24 Months	24 Months	18 Months	12 Months	No Current BK/NOD

Full Documentation, Owner Occupide Max LTV	80%; 95% for credit score of 550 or above	80%; 95% for credit score of 550 or above	80%; 95% for credit score of 550 or above	80%; 90% for credit score of 550 or above	75%; 85% for credit score of 550 or above	70%

Stated Owner Occupide Max LTV	80%; 90% for credit score of 580 or above	80%; 90% for credit score of 620 or above	75%;80% for credit score of 525 or above	75%; 80% for credit score of 550 or above	70%;75% for credit score of 550 or above	Not Available

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Production Characteristics - Q4 2003



Aames Credit Grade	AltA		A+		A		A-		B		C/D		Wtd.	Avg.
Wtd. Avg FICO Score	699		629		588		567		553		545		611
Wtd. Avg. Int.-Fixed	6	.8%	8	.3%	7	.8%	8	.1%	8	.3%	9	.8%	8	.2%
Wtd. Avg. Int.-ARMs	6	.6%	7	.1%	7	.5%	7	.9%	8	.2%	9	.1%	7	.4%
Wtd. Avg. LTV	78	.8%	82	.3%	80	.7%	79	.2%	76	.2%	70	.3%	80	.9%
% of Originations	1	.5%	65	.7%	15	.0%	6	.4%	7	.2%	4	.3%	100	.0%