PRINCETON, N.J., Sept. 13, 2012 /PRNewswire/ -- AMREP Corporation
(NYSE: AXR) today reported a net loss of $608,000, or $0.10
per share, for its fiscal 2013 first quarter ended July 31, 2012, compared to a net loss of
$279,000, or $0.05 per share, for the first quarter of the
prior fiscal year. Results for the first quarter of fiscal 2013
included a non-cash impairment charge of $169,000 ($107,000
after tax, or $0.02 per share)
reflecting the write-down of a real estate investment asset.
Revenues were $19,596,000 in the
first quarter of this fiscal year versus $21,493,000 for the same period last year.
Revenues from Media Services operations, which include
Subscription Fulfillment Services conducted by the Company's Palm
Coast Data subsidiary and Newsstand Distribution and Product
Services and other operations conducted by its Kable Media Services
subsidiary, decreased from $21,377,000 for the first quarter of 2012 to
$19,588,000 for the same period in
2013. Magazine publishers are the principal customers of these
businesses, and they have continued to be negatively impacted by
increased competition from new media sources and also by the
effects of the recent recession and the continued weak U.S.
economy. The result has been a trend of reduced subscription and
newsstand sales, which has caused publishers to close some magazine
titles and seek more favorable terms from Palm Coast and Kable and
their competitors when contracts are up for bid or renewal.
As a consequence of these and other factors, including
customer losses, revenues from Subscription Fulfillment Services
operations decreased from $16,676,000
for the first quarter of 2012 to $13,602,000 for the same period of 2013, while
revenues from Newsstand Distribution Services operations were
essentially unchanged, decreasing from $2,347,000 for the first quarter 2012 to
$2,339,000 for the same period of
2013. Revenues from Kable's Product Services and other
operations increased from $2,354,000
for the first quarter of 2012 to $3,647,000 for the same period in 2013. Media
Services' operating and general and administrative expenses
decreased by $1,561,000 in the first
quarter of 2013 compared to the same period in 2012, primarily as a
result of lower payroll and benefit costs as well as reduced
supplies expense and facility and equipment costs, including
depreciation.
There were no land sales at the Company's AMREP Southwest
subsidiary during the first quarter of 2013 compared to revenues of
$108,000 for the same period of 2012
which resulted from the sale of approximately two acres of
undeveloped land with an average gross profit percentage of
31%. Results for both the 2013 and 2012 periods were
substantially lower than the Company experienced prior to fiscal
2009 in its principal market of Rio
Rancho, New Mexico, due to a severe decline in the real
estate market in the greater Albuquerque-metro and Rio Rancho areas that began late in fiscal
2008 when, faced with adverse conditions, many builders slowed the
pace of building on developed lots previously purchased from the
Company in Rio Rancho and delayed
or cancelled the purchase of additional developed lots. As a
result of these and other factors, including the nature and timing
of specific transactions, revenues, gross profits and related gross
profit percentages from real estate land sales can vary
significantly from period to period and prior results are not
necessarily a good indication of what may occur in future
periods.
AMREP Corporation's Media Services operations, conducted by its
Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries,
distribute magazines to wholesalers and provide subscription and
product fulfillment and related services to publishers and others,
and its AMREP Southwest Inc. subsidiary is a major landholder and
leading developer of real estate in Rio
Rancho, New Mexico.
AMREP
CORPORATION AND SUBSIDIARIES
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FINANCIAL HIGHLIGHTS
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Three
Months Ended July 31,
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2012
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2011
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Revenues
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$
19,596,000
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$
21,493,000
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Net
(loss)
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$
(608,000)
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$
(279,000)
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(Loss) per
share – Basic and Diluted:
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$
(0.10)
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$
(0.05)
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Weighted
average number of common shares outstanding
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5,996,000
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5,996,000
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SOURCE AMREP Corporation