PRINCETON, N.J., March 15, 2013 /PRNewswire/ -- AMREP
Corporation (NYSE: AXR) today reported net income of $3,000, or $0.00
per share, for its fiscal 2013 third quarter ended January 31, 2013 compared to a net loss of
$316,000, or $0.05 per share, for its fiscal 2012 third
quarter ended January 31, 2012.
For the first nine months of fiscal 2013, the Company had a net
loss of $329,000, or $0.05 per share, compared to net income of
$488,000, or $0.08 per share, for the same period of fiscal
2012. Revenues for the third quarter and first nine months of
2013 were $21,752,000 and
$62,665,000 versus $21,424,000 and $66,268,000 for the same periods last year.
Revenues from Media Services operations, which include
Subscription Fulfillment Services operations conducted by the
Company's Palm Coast Data subsidiary and Newsstand Distribution and
Product Services and other businesses conducted by its Kable Media
Services subsidiary, decreased from $21,419,000 and $64,815,000 for the third quarter and first nine
months of 2012 to $21,225,000 and
$62,079,000 for the same periods 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 weakness in the
U.S. economy. The result has been reduced subscription and
newsstand magazine 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 $15,589,000 and $48,775,000 for the third quarter and first nine
months of 2012 to $15,011,000 and
$43,069,000 for the same periods of
2013. The 2013 numbers for the third quarter and first nine months
also included one month of operations ($611,000 in revenues) from Palm Coast's new
FulCircle Media subsidiary, which acquired certain assets from a
third party on December 31, 2012.
Revenues from Newsstand Distribution Services operations decreased
from $2,213,000 and $7,112,000 for the third quarter and first nine
months of 2012 to $2,169,000 and
$6,795,000 for the same periods of
2013. Revenues from Product Services and other operations increased
from $3,617,000 and $8,928,000 for the third quarter and first nine
months of 2012 to $4,045,000 and
$12,215,000 for the same periods of
2013, reflecting increases in both the product services and
temporary staffing businesses. The net revenue decline in the
overall Media Services operations was more than offset by decreases
in their operating and general and administrative expenses of
$934,000 and $2,906,000 for the third quarter and first nine
months of 2013 compared to the same periods in 2012, primarily
reflecting lower payroll and benefit costs as a result of both the
reduced and lost business noted above and lower facilities and
equipment costs, including depreciation.
Revenues from land sales at the Company's AMREP Southwest
subsidiary were $525,000 for the
third quarter and first nine months of 2013 compared to zero and
$1,435,000 for the same periods of
2012. The 2013 third quarter revenues were attributable to one
commercial lot sale that had a gross profit percentage of 28%
before indirect costs. The average gross profit percentage on
land sales for the first nine months of 2012 was 91% before
indirect costs. 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 the severe decline in the real
estate market in the greater Albuquerque-metro and Rio Rancho areas that began late in fiscal
2008. Revenues, gross profits and related gross profit percentages
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 prior results are not necessarily a good
indication of what may occur in future periods.
The Company recognized net tax benefits of $226,000 and $305,000 during the third quarter and first nine
months of 2013, which included the impact of a reduction in
unrecognized tax benefits of $85,000
and $53,000 for those periods.
Net tax benefits of $668,000 and
$33,000 were recognized in the
comparable periods of 2012 and included a similar reduction in
unrecognized tax benefits in the third quarter and first nine
months of 2012 that totaled $382,000
and $335,000 for those
periods.
AMREP Corporation's Media Services business, conducted by its
Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries,
distributes magazines to wholesalers and provides subscription and
product fulfillment and related services to publishers and others,
and its AMREP Southwest Inc. subsidiary is a major holder of real
estate in New Mexico.
Schedule 1
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AMREP
Corporation and Subsidiaries Financial
Highlights (Unaudited)
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Three
Months Ended January 31,
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2013
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2012
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Revenues
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$
21,752,000
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$
21,424,000
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Net income
(loss)
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$
3,000
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$
(316,000)
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Earnings
(loss) per share – Basic and
Diluted
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$
0.00
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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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Nine Months Ended January 31,
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2013
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2012
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Revenues
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$
62,665,000
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$
66,268,000
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Net income
(loss)
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$
(329,000)
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$
488,000
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Earnings
(loss) per share – Basic and
Diluted
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$
( 0.05)
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$
0.08
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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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Schedule 2
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The
Company's land sales in Rio Rancho, New Mexico were as follows
(dollar amounts in thousands):
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2013
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2012
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Acres
Sold
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Revenues
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Revenue
Per
Acre
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Acres
Sold
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Revenues
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Revenue
Per
Acre
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Three
months ended January 31:
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Developed
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Residential
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-
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$
-
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$
-
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-
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$
-
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$
-
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Commercial
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3.0
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525
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175
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-
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-
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-
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Total Developed
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3.0
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525
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175
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-
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-
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-
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Undeveloped
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-
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-
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-
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-
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-
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-
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Total
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3.0
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$
525
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$
175
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-
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$
-
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$
-
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Nine
months
Ended
January 31:
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Developed
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Residential
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-
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$
-
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$
-
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-
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$
-
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$
-
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Commercial
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3.0
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525
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175
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4.2
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748
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178
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Total Developed
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3.0
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525
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175
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4.2
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748
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178
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Undeveloped
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-
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-
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-
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16.0
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687
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43
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Total
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3.0
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$
525
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$
175
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20.2
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$
1,435
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$
71
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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.
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SOURCE AMREP Corporation