PRINCETON, N.J., Dec. 12, 2014 /PRNewswire/ -- AMREP
Corporation (NYSE: AXR) today reported net income of $254,000, or $0.03
per share, for its fiscal 2015 second quarter ended October 31, 2014, compared to net income of
$52,000, or $0.01 per share, for the second quarter of the
prior fiscal year. For the first six months of 2015, the Company
had net income of $6,518,000, or
$0.83 per share, compared to a net
loss of $635,000, or $0.09 per share, for the same period of 2014. The
results for the second quarter of fiscal 2015 included an
adjustment reducing a reserve for doubtful accounts receivable from
a magazine wholesaler by $900,000
($567,000 after tax, or $0.07 per share), and there was a similar
$300,000 adjustment ($189,000 after tax, or $0.03 per share) in 2014. The results for the
first six months of 2015 included a non-cash pre-tax gain on a
settlement agreement with a significant customer of $11,155,000 ($7,028,000 after tax, or $0.90 per share) offset in part by a non-cash
impairment charge of $925,000
($583,000 after tax, or $0.07 per share) reflecting the discontinuance of
the development of certain software in the Company's Subscription
Fulfillment Services business. Revenues were $19,338,000 and $37,266,000 for the second quarter and first six
months of 2015 compared to $22,763,000 and $43,272,000 for the same periods in the prior
year.
Revenues from the Company's Media Services operations, which
include Subscription Fulfillment Services, Newsstand Distribution
Services and the Product Packaging and Fulfillment Services and
Staffing businesses, decreased from $21,555,000 and $41,833,000 for the second quarter and first six
months of 2014 to $16,784,000 and
$34,300,000 for the same periods in
2015, due primarily to a continuing industry trend of reduced
subscription and newsstand magazine sales and to a major customer
of Product Packaging Services moving certain business in-house.
Media Services' operating expenses decreased from $17,791,000 and $35,519,000 for the second quarter and first six
months of 2014 to $13,512,000 and
$28,049,000 for the same periods of
2014, primarily due to lower payroll and benefits, the reversal of
previously established accounts receivable reserves, supplies
expense and facilities and equipment expense.
Revenues from land sales at AMREP Southwest were $2,513,000 and $2,897,000 for the second quarter and first six
months of 2015 compared to $1,196,000
and $1,424,000 for the same periods
of 2014. The average gross profit percentage on land sales
was 12.9% and 16.8% for the second quarter and first six months of
2015 compared to 16.5% for each of the same two periods of
2014. Revenues, average selling prices and related gross
profits from land sales can vary significantly from period to
period as a result of many factors, including the nature and timing
of specific transactions and the type and location of land being
sold.
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 holder of real
estate in New Mexico.
AMREP CORPORATION
AND SUBSIDIARIES FINANCIAL
HIGHLIGHTS (unaudited)
|
|
|
|
Three Months Ended
October 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenues
|
|
$ 19,338,000
|
|
$ 22,763,000
|
|
|
|
|
|
Net income
|
|
$
254,000
|
|
$
52,000
|
|
|
|
|
|
Earnings per share –
Basic and
Diluted
|
|
$
0.03
|
|
$
0.01
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
8,026,000
|
|
7,195,000
|
|
|
|
|
|
|
|
|
Six Months Ended
October 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenues
|
|
$ 37,266,000
|
|
$ 43,272,000
|
|
|
|
|
|
Net income
(loss)
|
|
$ 6,518,000
|
|
$
(635,000)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share – Basic and
Diluted
|
|
$
0.83
|
|
$
(0.09)
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
7,813,000
|
|
6,785,000
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amrep-reports-second-quarter-fiscal-2015-results-300009218.html
SOURCE AMREP Corporation