AXR AMREP Corp

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

 

Date of Report (Date of earliest event reported):            December 12, 2014              

 

 

AMREP CORPORATION

(Exact name of Registrant as specified in its charter)

 

Oklahoma	1-4702	59-0936128
(State or other jurisdiction of	(Commission File	(IRS Employer
incorporation)	Number)	Identification No.)

 

300 Alexander Park, Suite 204, Princeton, New Jersey	08540
(Address of principal executive offices)	(Zip Code)

 

Registrant's telephone number, including area code:  (609) 716-8200

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

  

Item 2.02 Results of Operations and Financial Condition

 

On December 12, 2014, AMREP Corporation issued a press release that reported its results of operations for the three and six month periods ended October 31, 2014.  The press release is being furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit Number	Description
99.1	Press Release, dated December 12, 2014, issued by AMREP Corporation.

 

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				AMREP Corporation
Date: December 12, 2014				By:		/s/ Peter M. Pizza
						Peter M. Pizza
						Vice President and Chief Financial Officer

  

  

EXHIBIT INDEX 

  

Exhibit Number	Description
99.1	Press Release, dated December 12, 2014, issued by AMREP Corporation.

 

  

 

Exhibit 99.1

 

FOR:	AMREP Corporation
	300 Alexander Park, Suite 204
	Princeton, NJ  08540
CONTACT:	Peter M. Pizza
	Vice President and Chief Financial Officer
	(609) 716-8210

 

 

AMREP REPORTS SECOND QUARTER FISCAL 2015 RESULTS

 

Princeton, New Jersey, December 12, 2014 - 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.

 

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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