PRINCETON, N.J., Dec. 9,
2011 /PRNewswire/ -- AMREP Corporation (NYSE: AXR) today
reported net income of $1,083,000, or
$0.18 per share, for its fiscal 2012
second quarter ended October 31, 2011
compared to net income of $731,000,
or $0.12 per share, for its fiscal
2011 second quarter ended October 31,
2010. For the first six months of fiscal 2012, the Company
had net income of $804,000, or
$0.13 per share, compared to net
income of $233,000, or $0.04 per share, for the same period of fiscal
2011. Revenues were $23,351,000
and $44,844,000 for the second
quarter and first six months of 2012 versus $25,816,000 and $50,903,000 for the same periods last year.
Revenues from Media Services operations, which principally
include Subscription Fulfillment Services operations conducted by
the Company's Palm Coast Data subsidiary and Newsstand Distribution
and Product Services operations conducted by its Kable Media
Services subsidiary, decreased from $25,293,000 and $49,529,000 for the second quarter and first six
months of 2011 to $22,020,000 and
$43,396,000 for the same periods 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 has caused publishers to close some
magazine titles and 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 $19,572,000 and $38,423,000 for the second quarter and first six
months of 2011 to $16,510,000 and
$33,186,000 for the same periods of
2012, while revenues from Newsstand Distribution Services
operations decreased from $2,886,000
and $6,000,000 for the second quarter
and first six months of 2011 to $2,552,000 and $4,899,000 for the same periods of
2012. Substantially offsetting the revenue decline, Media
Services operating and general and administrative expenses
decreased by $2,465,000 and
$5,426,000 for the second quarter and
first six months of 2012 compared to the same periods in 2011,
which was primarily attributable to lower payroll and benefit costs
as a result of both the reduced and lost business noted above and
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 the second quarter of 2011, as well as lower
facilities and equipment costs, including depreciation, resulting
from the consolidation project.
Revenues from land sales at the Company's AMREP Southwest
subsidiary were $1,327,000 and
$1,435,000 for the three and six
month periods ended October 31, 2011
compared to $489,000 and $1,313,000 for the same periods of the prior
year. The average gross profit percentage on land sales was
83% and 79% for the second quarter and first six months of 2012
compared to 16% and 38% for the same periods in 2011, with the
variance being attributable to a change in the mix of areas from
which land was sold in each period. 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 lots. 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 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 landholder and
leading developer of real estate in New
Mexico.
(Two Schedules Follow)
Schedule 1
AMREP
Corporation
and
Subsidiaries
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended October 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Revenues
|
|
$
23,351,000
|
|
$
25,816,000
|
|
|
|
|
|
Net
income
|
|
$
1,083,000
|
|
$
731,000
|
|
|
|
|
|
Earnings
per share – Basic and
Diluted
|
|
$
0.18
|
|
$
0.12
|
|
|
|
|
|
Weighted
average number of common shares outstanding
|
|
5,996,000
|
|
5,996,000
|
|
|
|
|
|
|
|
Six Months Ended October 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Revenues
|
|
$
44,844,000
|
|
$
50,903,000
|
|
|
|
|
|
Net
income
|
|
$
804,000
|
|
$
233,000
|
|
|
|
|
|
Earnings
per share – Basic and
Diluted
|
|
$
0.13
|
|
$
0.04
|
|
|
|
|
|
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):
|
|
|
2011
|
|
2010
|
|
Acres Sold
|
|
Revenues
(in 000s)
|
|
Revenues
Per Acre
(in 000s)
|
|
Acres Sold
|
|
Revenues
(in 000s)
|
|
Revenues
Per Acre
(in 000s)
|
Three
months
ended October 31:
|
|
|
|
|
|
|
|
|
|
|
|
Developed
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
-
|
|
$
-
|
|
$
-
|
|
1.4
|
|
$
429
|
|
$
306
|
Commercial
|
4.2
|
|
748
|
|
178
|
|
-
|
|
35
|
|
-
|
Total Developed
|
4.2
|
|
748
|
|
178
|
|
1.4
|
|
464
|
|
306
|
Undeveloped
|
14.0
|
|
579
|
|
41
|
|
0.8
|
|
25
|
|
31
|
Total
|
18.2
|
|
$
1,327
|
|
$
73
|
|
2.2
|
|
$
489
|
|
$
222
|
Six
months
Ended
October 31:
|
|
|
|
|
|
|
|
|
|
|
|
Developed
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
-
|
|
$
-
|
|
$
-
|
|
2.4
|
|
$
806
|
|
$
336
|
Commercial
|
4.2
|
|
748
|
|
178
|
|
-
|
|
35
|
|
-
|
Total Developed
|
4.2
|
|
748
|
|
178
|
|
2.4
|
|
841
|
|
336
|
Undeveloped
|
16.0
|
|
687
|
|
43
|
|
11.7
|
|
472
|
|
40
|
Total
|
20.2
|
|
$
1,435
|
|
$
71
|
|
14.1
|
|
$
1,313
|
|
$
91
|
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