PRINCETON, N.J., March 17, 2014 /PRNewswire/ -- AMREP Corporation
(NYSE:AXR) today reported a net loss of $11,000, or $0.00
per share, for the third quarter of 2014 compared to net income of
$3,000, or $0.00 per share, for the third quarter of
2013. For the first nine months of 2014, the Company had a
net loss of $646,000, or $0.09 per share, compared to a net loss of
$329,000, or $0.05 per share, for the same period of
2013. The results for the third quarter and first nine months
of 2014 included adjustments increasing the reserve for doubtful
accounts receivable by $624,000
($393,000 after tax, or $0.05 per share) for the quarter and $488,000 ($307,000
after tax, or $0.04 per share) for
the nine months for customers of the Company's Media Services
businesses. The results for the first nine months of 2013
included a pre-tax, 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 during
the first quarter of 2013. Revenues were $23,812,000 and $67,084,000 for the third quarter and first nine
months of 2014 compared to $21,752,000 and $62,665,000 for the same periods in the prior
year.
Revenues from the Company's Media Services operations, which
include Subscription Fulfillment Services operations conducted by
the Company's Palm Coast Data subsidiary (including its FulCircle
Media business acquired December 31,
2012) and Newsstand Distribution and Product Packaging and
Fulfillment Services and Other operations conducted by its Kable
Media Services subsidiary, increased from $21,225,000 and $62,079,000 for the third quarter and first nine
months of 2013 to $22,307,000 and
$64,140,000 for the same periods in
2014. The increase in revenues for both periods was primarily
due to the addition of FulCircle, whose revenues in the third
quarter and first nine months of 2014 were $1,852,000 and $5,073,000. Media Services operating expenses
were $18,854,000 and $54,373,000 (84.5% and 84.8% of Media Services
revenues) for the third quarter and first nine months of 2014
compared to $17,569,000 and
$50,976,000 (82.8% and 82.1% of Media
Services revenues) for the same periods of 2013.
Revenues from land sales at AMREP Southwest were $1,443,000 and $2,867,000 for the third quarter and first nine
months of 2014 compared to $525,000
for the same periods of 2013. For 2014, the average gross profit
percentage on land sales was 3.0% for the third quarter and 9.7%
for the first nine months compared to 27.7% for the same periods in
2013. Revenues 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.
The Company recognized a benefit for income taxes of
$237,000 and $554,000 during the third quarter and first nine
months of 2014, compared to a benefit for income taxes of
$226,000 and $305,000 for the same periods of 2013. The third
quarter of each year also included the impact of a reduction for
unrecognized tax benefits of $160,000
in 2014 and $85,000 in 2013 and, as a
result, the Company's effective tax rate of the benefit for income
taxes was 95.6% and 46.1% for the third quarter and first nine
months of 2014 compared to 101.3% and 48.1% for the same periods of
2013.
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 Rio Rancho, New
Mexico.
AMREP
Corporation
and
Subsidiaries
Financial
Highlights
(Unaudited)
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenues
|
|
$
23,812,000
|
|
$
21,752,000
|
|
|
|
|
|
Net income
(loss)
|
|
$
(11,000)
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|
$
3,000
|
|
|
|
|
|
Earnings (loss) per
share – basic and
diluted
|
|
$
0.00
|
|
$
0.00
|
|
|
|
|
|
Weighted average
number of common shares
outstanding – basic
and diluted
|
|
7,195,000
|
|
5,996,000
|
|
|
|
|
|
|
|
Nine Months
Ended January 31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Revenues
|
|
$
67,084,000
|
|
$
62,665,000
|
|
|
|
|
|
Net income
(loss)
|
|
$
(646,000)
|
|
$
(329,000)
|
|
|
|
|
|
Earnings (loss) per
share – basic and
diluted
|
|
$
(0.09)
|
|
$
(0.05)
|
|
|
|
|
|
Weighted average
number of common shares
outstanding – basic
and diluted
|
|
6,922,000
|
|
5,996,000
|
SOURCE AMREP Corporation