PRINCETON, N.J., Sept. 13, 2011 /PRNewswire/ -- AMREP Corporation
(NYSE: AXR) today reported a net loss of $279,000, or $0.05
per share, for its fiscal 2012 first quarter ended July 31, 2011, compared to a net loss of
$498,000, or $0.08 per share, for the first quarter of the
prior fiscal year. Revenues were $21,493,000 in the first quarter of this fiscal
year versus $25,087,000 for the same
period last year.
Revenues from Media Services operations, which principally
include Subscription Fulfillment Services conducted by the
Company's Palm Coast Data subsidiary and Newsstand Distribution and
Product Fulfillment Services conducted by its Kable Media Services
subsidiary, decreased from $24,236,000 for the first quarter of 2011 to
$21,377,000 for the same period in
2012. Magazine publishers are the principal customers of these
operations, and they have continued to be impacted by the effects
of the recent recession and also from increased competition from
new media sources. This has resulted in reduced subscription and
newsstand sales, which in turn has caused certain publishers to
close magazine titles or seek more favorable terms from
Palm Coast and Kable and their
competitors. As a consequence of these and other factors,
including customer losses, revenues from Subscription Fulfillment
Services operations decreased from $18,852,000 for the first quarter of 2011 to
$16,676,000 for the same period of
2012. Revenues from Newsstand Distribution Services operations
decreased from $3,114,000 for the
first quarter 2011 to $2,347,000 for
the same period of 2012, principally as a result of lower
distribution volumes reflecting a decline in retail magazine sales
through the newsstand distribution system. Revenues from Kable's
Product Fulfillment Services and Other businesses segment increased
from $2,270,000 for the first quarter
of 2011 to $2,354,000 for the same
period in 2012. Offsetting the net revenue decline, Media Services'
operating and general and administrative expenses decreased by
$2,850,000 in the first quarter of
2012 compared to the same period in 2011, primarily as a result of
reduced payroll and benefit costs as well as lower facilities and
equipment costs (including depreciation) and other efficiencies
achieved in the Company's consolidation of its Subscription
Fulfillment Services business from three locations in Colorado, Florida and Illinois into one existing location at
Palm Coast, Florida that was
completed during fiscal 2011.
First quarter 2012 revenues from land sales at the Company's
AMREP Southwest subsidiary were $108,000 compared to $824,000 for the same period of fiscal 2011.
The average gross profit percentage on land sales was 31% for
the first quarter of 2012 and 52% for the first quarter of 2011,
with the variance being attributable to the effect of indirect
costs on the lower revenue base. Results for both the 2012 and 2011
periods were substantially lower than the Company has experienced
prior to fiscal 2009 in its principal market of Rio Rancho, New Mexico, due to a severe
decline in the real estate market in the greater Albuquerque-metro and Rio Rancho areas that began late in fiscal
2008. Faced with adverse conditions, many builders have
slowed the pace of building on developed lots previously purchased
from the Company in Rio Rancho and
delayed or cancelled the purchase of additional developed lots.
These factors have also contributed to a steep decline in the
Company's sale of undeveloped land to both builders and investors.
As a result of these and other factors, including the nature and
timing of specific transactions, revenues and related gross profits
from real estate land sales can vary significantly from period to
period and prior results are not necessarily a good indication of
what may occur in future periods.
AMREP Corporation's Media Services operations, conducted by its
Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries,
distribute magazines to wholesalers and provide subscription and
product fulfillment and related services to publishers and others,
and its AMREP Southwest Inc. subsidiary is a major landholder and
leading developer of real estate in Rio
Rancho, New Mexico.
(Two Schedules Follow)
Schedule 1
AMREP
CORPORATION AND SUBSIDIARIES
FINANCIAL
HIGHLIGHTS
|
|
|
|
Three Months
Ended July 31,
|
|
|
|
2011
|
|
2010
|
|
Revenues
|
|
$
21,493,000
|
|
$
25,087,000
|
|
|
|
|
|
|
|
Net (loss)
|
|
$
(279,000)
|
|
$
(498,000)
|
|
|
|
|
|
|
|
(Loss) per share – Basic and
Diluted:
|
|
$
(0.05)
|
|
$
(0.08)
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding
|
|
5,996,000
|
|
5,996,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2
The Company's land sales in Rio
Rancho, New Mexico were as follows (dollar amounts in
thousands):
|
|
|
Three months
ended July 31,
|
|
|
2011
|
|
2010
|
|
|
Acres
Sold
|
|
Revenues
|
|
Revenues
per Acre
|
|
Acres
Sold
|
|
Revenues
|
|
Revenues
per Acre
|
|
Developed
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
-
|
|
$
-
|
|
$
-
|
|
1.0
|
|
$ 377
|
|
$ 377
|
|
Commercial
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total Developed
|
-
|
|
-
|
|
-
|
|
1.0
|
|
377
|
|
377
|
|
Undeveloped
|
2.0
|
|
108
|
|
54
|
|
11.0
|
|
447
|
|
41
|
|
Total
|
2.0
|
|
$ 108
|
|
$
54
|
|
12.0
|
|
$ 824
|
|
$
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company offers for sale developed and undeveloped land in
Rio Rancho from a number of
different projects, and selling prices may vary from project to
project and within projects depending on location, the stage of
development and other factors.
SOURCE AMREP Corporation