PRINCETON, N.J., July 16, 2013 /PRNewswire/ -- AMREP
Corporation (NYSE: AXR) today reported a net loss of $2,838,000, or $0.47 per share, for its 2013 fiscal year ended
April 30, 2013 compared to a 2012 net
loss of $1,143,000, or $0.19 per share. The 2013 results included
pre-tax, non-cash impairment charges of $1,511,000 ($952,000 after tax, or $0.16 per share), of which $1,342,000 ($845,000 after tax, or $0.14 per share) was recorded in the fourth
quarter, while the 2012 results included a fourth quarter pre-tax,
non-cash impairment charge of $570,000 ($359,000
after tax, or $0.06 per share).
The charges in both years reflected the write-down of certain real
estate assets. The results for 2013 also included a fourth quarter
reserve for doubtful accounts receivable from a magazine wholesaler
of $2,000,000 ($1,260,000 after tax, or $0.21 per share). Revenues for 2013 were
$83,001,000 compared to $85,360,000 in the prior year.
For the fourth quarter of 2013, the net loss after the
impairment and reserve for bad debt charges was $2,509,000, or $0.42 per share, compared to a net loss after the
impairment charge of $1,631,000, or
$0.27 per share, in the same period
of 2012. Fourth quarter 2013 revenues were $20,336,000 versus fourth quarter 2012 revenues
of $19,092,000.
Excluding the impairment charges in both years and the accounts
receivable reserve in 2013, the net loss for the fourth quarter of
2013 was $404,000, or $0.07 per share, and for the full year of 2013
was $626,000, or $0.10 per share, compared to a net loss of
$1,272,000, or $0.21 per share, in the fourth quarter of 2012,
and $784,000, or $0.13 per share, for the full year of 2012.
Revenues from Media Services operations, which include
Subscription Fulfillment Services operations conducted by the
Company's Palm Coast Data subsidiary (including Palm Coast's new
FulCircle Media business acquired December
31, 2012) and Newsstand Distribution and Product Services
and other operations conducted by its Kable Media Services
subsidiary, decreased from $83,447,000 in 2012 to $82,105,000 in 2013, and for the fourth quarter
increased from $18,632,000 in 2012 to
$20,026,000 in 2013 due to the
inclusion of the FulCircle business since the date of its
acquisition. Media Services operating expenses decreased from
$70,076,000 (84.0% of related
revenues) in 2012 to $69,880,000
(85.1% of related revenues) in 2013 as the result of the net effect
of lower facilities and equipment costs (including depreciation) of
$1,392,000 and reduced payroll and
benefits of $526,000 offset by an
increase in bad debt expense of $1,796,000. For the fourth quarter, these
expenses increased from $16,743,000
(89.9% of related revenues) in 2012 to $18,904,000 (94.4% of related revenues) due to
the $2,000,000 bad debt reserve
mentioned above. Exclusive of the effect of the bad debt
reserve, fourth quarter operating expenses were $16,904,000 (84.4% of related revenues) and
increased from the prior year due to the inclusion of the FulCircle
business. Media Services general and administrative expenses
decreased from $2,133,000 (11.4% of
related revenues) and $8,783,000
(10.5% of related revenues) in the fourth quarter and full year of
2012 to $1,978,000 (9.9% of related
revenues) and $8,079,000 (9.8% of
related revenues) for the same periods of 2013 due to reduced
payroll and benefits.
Revenues from land sales at the Company's AMREP Southwest
subsidiary decreased from $454,000
and $1,889,000 in the fourth quarter
and full year of 2012 to $308,000 and
$833,000 for the comparable periods
of 2013. In Rio Rancho, New
Mexico, the Company offers for sale both developed and
undeveloped lots to national, regional and local homebuilders,
commercial and industrial property developers and others. The
Company sold 84 and 104 acres of land in the fourth quarter and
full year of 2012, mostly undeveloped, at average selling prices of
$5,000 and $18,000 per acre, compared to 9 and 12 acres of
land at average selling prices of $34,000 and $69,000
per acre for the same periods of 2013. The average gross profit
percentage on land sales before indirect costs was approximately
70% and 86% for the fourth quarter and full year of 2012 compared
to approximately 56% and 38% for the same periods of 2013.
The sale of undeveloped land in 2012 consisted of land sold
to a quasi-governmental agency under threat of condemnation for its
use as part of a flood plain, and the nature of the land and its
average selling price per acre are not believed to be
representative of the Company's inventory and investment
properties. As a result of these and other factors, including
the nature and timing of specific transactions, revenues, average
selling prices and related average gross profits from 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. In addition, as noted above, AMREP Southwest
recorded impairment charges in 2012 and 2013 due to appraisals of a
portion of its real estate that in each year showed a deterioration
in fair market value from the prior year.
For more detail regarding the impairment charges taken by the
Company in 2013 and 2012 and for additional information regarding
the Company's financial results, please refer to the Company's
Annual Report on Form 10-K filed today with the Securities and
Exchange Commission.
AMREP Corporation's Media Services business, conducted by its
Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries,
distributes magazines to wholesalers and provides subscription and
product fulfillment and related services to publishers and others,
and its AMREP Southwest Inc. subsidiary is a major holder of real
estate in New Mexico.
Schedule
1
|
AMREP CORPORATION
AND SUBSIDIARIES FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Revenues
|
|
$
20,336,000
|
|
$
19,092,000
|
|
|
|
|
|
Net income
(loss)
|
|
$
(2,509,000)
|
|
$
(1,631,000)
|
|
|
|
|
|
Earnings (loss) per
share – Basic and Diluted
|
|
$
(0.42)
|
|
$
(0.27)
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
5,996,000
|
|
5,996,000
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
April 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Revenues
|
|
$
83,001,000
|
|
$
85,360,000
|
|
|
|
|
|
Net income
(loss)
|
|
$
(2,838,000)
|
|
$
(1,143,000)
|
|
|
|
|
|
Earnings (loss) per
share – Basic and
Diluted
|
|
$
(0.47)
|
|
$
(0.19)
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
5,996,000
|
|
5,996,000
|
|
|
|
|
|
Fourth quarter results include pre-tax, non-cash impairment
charges of $1,342,000 (or
$0.14 per share) in 2013 and
$570,000 (or $0.06 per share) in 2012 reflecting the
write-down of certain real estate assets, and a charge for a bad
debt reserve of $2,000,000 (or
$0.21 per share) in 2013. The full
year pre-tax impairment charges in 2013 for the write-down of real
estate assets was $1,511,000 (or
$0.16 per share).
SOURCE AMREP Corporation