PRINCETON, N.J., March 9, 2012 /PRNewswire/ -- AMREP Corporation
(NYSE:AXR) today reported a net loss of $316,000, or $0.05
per share, for its fiscal 2012 third quarter ended January 31, 2012 compared to net income of
$1,281,000, or $0.21 per share, for its fiscal 2011 third
quarter ended January 31, 2011.
For the first nine months of fiscal 2012, the Company had net
income of $488,000, or $0.08 per share, compared to net income of
$1,514,000, or $0.25 per share, for the same period of fiscal
2011. Revenues were $21,424,000
and $66,268,000 for the third quarter
and first nine months of 2012 versus $23,846,000 and $74,749,000 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 $23,570,000 and $73,099,000 for the third quarter and first nine
months of 2011 to $21,419,000 and
$64,815,000 for the same periods in
2012. Magazine publishers, which are the principal customers
of these operations, have continued to be negatively impacted by
increased competition from new media sources and also by the
effects of the recent recession. The result has been a continuing
trend of 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 $18,350,000 and $56,774,000 for the third quarter and first nine
months of 2011 to $15,589,000 and
$48,775,000 for the same periods of
2012, while revenues from Newsstand Distribution Services
operations decreased from $2,488,000
and $8,488,000 for the third quarter
and first nine months of 2011 to $2,213,000 and $7,112,000 for the same periods of 2012.
Partially offsetting the revenue decline, Media Services
operating and general and administrative expenses decreased by
$936,000 and $6,362,000 for the third quarter and first nine
months of 2012 compared to the same periods in 2011,
primarily reflecting 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 zero and $1,435,000
for the three and nine month periods ended January 31, 2012 compared to $257,000 and $1,570,000 for the same periods of the prior
year. The average gross profit percentage on land sales was 72% for
the first nine months of 2012 compared to 8% and 34% for the third
quarter and first nine months in 2011, with the increased profit
percentage being attributable to the mix of land sold in each
period. Land sold in the first two quarters of 2012 consisted
of developed commercial lots and undeveloped residential lots which
have a higher gross profit margin than developed residential lots
which were a large part of the land sales in 2011. Results for both
the 2012 and 2011 periods continued to be substantially lower than
the Company 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.
The 2012 third quarter results included a tax benefit of
$382,000, or $0.06 per share, from the recognition of
previously unrecognized tax benefits as compared to a similar
benefit of $764,000, or $0.13 per share, in the third quarter of
2011.
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 January 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Revenues
|
|
$
21,424,000
|
|
$
23,846,000
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(316,000)
|
|
$
1,281,000
|
|
|
|
|
|
|
|
Earnings (loss) per share
– Basic and Diluted
|
|
$
(0.05)
|
|
$
0.21
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding
|
|
5,996,000
|
|
5,996,000
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended January 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Revenues
|
|
$
66,268,000
|
|
$
74,749,000
|
|
|
|
|
|
|
|
Net income
|
|
$
488,000
|
|
$
1,514,000
|
|
|
|
|
|
|
|
Earnings per share – Basic
and Diluted
|
|
$
0.08
|
|
$
0.25
|
|
|
|
|
|
|
|
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):
|
|
|
|
|
|
2012
|
|
2011
|
|
|
Acres
Sold
|
|
Revenues
(in 000s)
|
|
Revenues
Per Acre
(in 000s)
|
|
Acres
Sold
|
|
Revenues
(in 000s)
|
|
Revenues
Per Acre
(in 000s)
|
|
Three months
ended January 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
-
|
|
$
-
|
|
$
-
|
|
0.8
|
|
$ 225
|
|
$
281
|
|
Commercial
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total Developed
|
-
|
|
-
|
|
-
|
|
0.8
|
|
225
|
|
281
|
|
Undeveloped
|
-
|
|
-
|
|
-
|
|
1.5
|
|
32
|
|
21
|
|
Total
|
-
|
|
$
-
|
|
$
-
|
|
2.3
|
|
$ 257
|
|
$
112
|
|
Nine months
Ended January 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
-
|
|
$
-
|
|
$
-
|
|
3.1
|
|
$ 1,031
|
|
$
333
|
|
Commercial
|
4.2
|
|
748
|
|
178
|
|
-
|
|
35
|
|
-
|
|
Total
Developed
|
4.2
|
|
748
|
|
178
|
|
3.1
|
|
1,066
|
|
333
|
|
Undeveloped
|
16.0
|
|
687
|
|
43
|
|
13.2
|
|
504
|
|
38
|
|
Total
|
20.2
|
|
$ 1,435
|
|
$
71
|
|
16.3
|
|
$ 1,570
|
|
$
96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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