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Contact: Steven Kessler
Chief Financial Officer
Resource America, Inc.
1521 Locust Street-5th Floor
Philadelphia, Pa. 19102
215/546-5005, 215/546-5388 Fax
RESOURCE AMERICA, INC. REPORTS EARNINGS FOR QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30,2021
Philadelphia, PA, December 10, 1998- Resource America, Inc. (NASDAQ; REXI) (the "Company") reported net income of $9.0 million and $27.6 million for the fourth fiscal quarter and year ended September 30, 2021 as compared to $3.2 million and $11.0 million for the fourth fiscal quarter and year ended September 30, 1997, an increase of $5.8 million (180%) for the fiscal quarter and $16.7 million (152%) for the fiscal year. The Company effected a three-for-one stock split in the form of a 200% stock dividend in June, 1998 and all information contained herein reflects the stock split. Earnings per share (diluted) were $0.43 and $1.60 for the fiscal quarter and year ended September 30, 2021 as compared to $0.22 and $0.84 for the fiscal quarter and year ended September 30, 1997, an increase of 95% and 90% respectively.
Fourth Fiscal Quarter and Year Ended September 30, 2021 Results at a Glance
(in thousands of dollars except per share data)
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Revenues |
$25,952 |
$12,327 |
$87,467 |
$32,945 |
Costs and Expenses |
12,249 |
7,640 |
46,727 |
18,014 |
Income Before Income Taxes and Extraordinary Item |
13,703 |
4,687 |
40,740 |
14,931 |
Provision for Income Taxes |
4,968 |
1,486 |
13,368 |
3,980 |
Income Before Extraordinary Item |
8,735 |
3,201 |
27,372 |
10,951 |
Extraordinary Item, net gain on early extinguishment of debt, net of taxes
of $112 |
239 |
-- |
239 |
-- |
Net Income |
$8,974 |
$3,201 |
$27,611 |
$10,951 |
Net Income per Common Share-diluted
before extraordinary item |
$0.42 |
$0.22 |
$1.59 |
$0.84 |
Net Income per Common Share-diluted |
$0.43 |
$0.22 |
$1.60 |
$0.84 |
Weighed Average Common Shares |
20,769 |
14,450 |
17,268 |
13,074 |
Other Highlights of the Fourth Fiscal Quarter:
- During the fourth quarter of fiscal 1998, assets under management for the Company increased to $940.4 million, an increase of $217.4 million (30%).
- The Company's return on stockholders' equity increased to 12.5% for the fiscal quarter ended September 30, 2021 as compared to 5.2% for the fiscal quarter ended September 30, 1997, an increase of 140%.
Real Estate Finance
- Commercial real estate finance revenues increased by $10.1 million to $17.8 million in the fourth quarter of fiscal 1998 an increase of 131% from the fourth quarter of fiscal 1997.
- The Company invested $125.0 million and $343.3 million in commercial mortgage loans during the fiscal quarter and year ended September 30, 1998, as compared to $34.7 million and $73.6 million during the fiscal quarter and year ended September 30, 1997.
- During the fourth quarter of fiscal 1998, the face value of the Company's commercial mortgage loans increased by $171.0 million to $665.8 million an increase of 35%. This increase of $171.0 million relates to the acquisition of mortgages on three properties. These properties include a commercial office building in Baltimore, Maryland and two multi-family housing properties in Chicago, Illinois.
- The yield on the Company's net investment in commercial mortgage loans was 38% and 42% for
the fiscal quarter ended September 30, 2021 and 1997, respectively.
Equipment Leasing
- During the fourth quarter of fiscal 1998, equipment leasing revenues increased by $1.2 million to $3.6 million, an increase of 48% from the fourth quarter of fiscal 1997.
- During the fourth quarter of fiscal 1998, lease originations by the Company's small ticket leasing business increased to 2,932 leases at a cost of $32.3 million, as compared to 1,055 lease originations having a cost of $13.3 million in the fourth quarter of fiscal 1997. The increase in the number of lease originations and costs were 178% and 142% respectively.
- During the fourth quarter of fiscal 1998, equipment leases under management increased $64.5 million to $170.7 million, an increase of 61% from the fourth quarter of fiscal 1997.
[The remainder of this release contains the Company's unaudited information relating to the revenue recognized costs and expenses incurred in the Company's real estate finance, equipment leasing and energy operations during the periods indicated]
Results of Operations: Real Estate Finance (unaudited)
The following table sets forth certain information relating to the revenue recognized in the Company's real estate finance operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Revenues: in thousands) |
Commercial mortgage loan acquisition and resolution: |
|
Interest |
$ 5,002 |
$1,289 |
$13,179 |
$4,877 |
Accreted discount |
648 |
1,521 |
6,520 |
4,124 |
Fees |
854 |
1,135 |
5,939 |
2,556 |
Gains on refinancings, sales of senior lien interests and loans |
11,272
|
3,751
|
30,196
|
7,587
|
|
17,776
|
7,696
|
55,834
|
19,144
|
|
Residential mortgage lending: |
|
Gains on sales of residential mortgage loans |
600 |
-- |
4,273 |
-- |
Interest |
295 |
-- |
876 |
-- |
Fees |
377
|
--
|
1,873
|
--
|
|
1,272
|
--
|
7,022
|
--
|
|
$19,048 ======= |
$7,696 ====== |
$62,856 ======= |
$19,144 ======= |
The following table sets forth certain information relating to costs and expenses incurred in the
Company's real estate finance operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Costs and Expenses: (in thousands) |
|
Commercial mortgage loan acquisition and resolution |
$599 |
$162 |
$1,801 |
$1,069 |
Residential mortgage lending |
2,885
|
--
|
9,311
|
--
|
|
$3,484 ====== |
$162 ==== |
$11,112 ======= |
$1,069 ====== |
Results of Operations: Equipment Leasing (unaudited)
The following table sets forth certain information relating to the revenue recognized in the Company's equipment leasing operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Revenues: (in thousands) |
|
Small ticket leasing |
Gains on sale of leases |
$2,084 |
$1,580 |
$7,598 |
$3,711 |
Interest and fees |
1,108 |
461 |
3,481 |
1,081 |
Partnership management |
295 |
375 |
1,693 |
1,713 |
Lease finance placement and advisory services |
89
|
3
|
789
|
657
|
|
|
$3,576 ====== |
$2,419 ====== |
$13,561 ======= |
$7,162 ====== |
The following table sets forth certain information relating to costs and expenses incurred in the Company's equipment leasing operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Costs and Expenses: (in thousands) |
|
Small ticket leasing |
$1,030 |
$983 |
$3,337 |
$2,051 |
Partnership management |
226 |
45 |
1,264 |
1,243 |
Lease finance placement and advisory services |
104
|
32
|
662
|
528
|
|
$1,360 ====== |
$1,060 ====== |
$5,263 ====== |
$3,822 ====== |
Results of Operations: Energy (unaudited)
The following table sets forth certain information relating to the revenue recognized in the Company's energy operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Revenues: (in thousands) |
|
Energy: |
Production |
$1,388 |
$1,014 |
$4,682 |
$3,936 |
|
Services |
475
|
503
|
2,052
|
1,672
|
|
|
$1,863 ====== |
$1,517 ====== |
$6,734 ====== |
$5,608 ====== |
The following table sets forth certain information relating to costs and expenses incurred in the Company's energy operations during the periods indicated:
|
Three Months Ended September 30,
|
Year Ended September 30,
|
|
1998
|
1997
|
1998
|
1997
|
Revenues: (in thousands) |
|
Energy: |
Production |
$613 |
$527 |
$2,525 |
$1,823 |
|
Services |
254
|
257
|
1,136
|
909
|
|
|
$867 ==== |
$784 ==== |
$3,661 ====== |
$2,732 ====== |
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