Resource America, Inc. Reports Earnings of $.32 Per Common Share-Diluted for the Quarter Ended June 30, 2022

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Steven Kessler
Chief Financial Officer
Resource America, Inc.
1521 Locust Street - 6th Floor
Philadelphia, PA 19102
(215) 546-5005
(215) 546-4785 (facsimile)

Resource America, Inc. Reports Earnings of $.32 Per Common Share-Diluted for the Quarter Ended June 30, 2022

Philadelphia, PA., August 12, 2022 - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported net income of $7.3 million and $19.2 million for the third fiscal quarter and nine months ended June 30, 2022 as compared to $8.4 million and $18.6 million for the third fiscal quarter and nine months ended June 30, 1998, a decrease of $1.0 million (13%) for the quarter and an increase of $600,000 (3%) for the nine months. For the third fiscal quarter of 1999, the Company recognized no revenue from gains on sale of senior lien interests in commercial real estate loans; for the third quarter of fiscal 1998, such gains were $9.5 million or approximately 78% of total income before taxes. In addition, during the third fiscal quarter and nine months ended June 30, 1999, the Company:

Increased assets under management to $1.7 billion at June 30, 2022 compared to $1.2 billion at September 30, 1998.
Filed a Registration Statement with the SEC in connection with a proposed offering of its subsidiary, Fidelity Leasing Inc. for 3.9 million shares of its common stock.
Reported positive cash flow from operations of $6.9 million for the nine months ended June 30, 2022 as compared to negative cash flow from operations of $4.3 million for the nine months ended June 30, 1998.

Overall Highlights for the Third Fiscal Quarter and the Nine Months Ended June 30, 2022 Include:

Equipment Leasing

Through March 31, 2022 the Company structured a substantial part of its lease financing transactions to meet the criteria for "gain on sale" under generally accepted accounting principles. On April 1, 2022 the Company made a strategic decision to structure future transactions so as to avoid recognition of gains on sale of leases. As a result, gains on sale of leases were $224,000 in the third quarter of fiscal 1999 as compared to $1.6 million in the third quarter of fiscal 1998.
Equipment leasing revenues increased to $12.3 million from $3.4 million in the third quarter of fiscal 1998, an increase of 266%.
Leases originated by the Company's small-ticket leasing business increased to 5,339 leases having a cost (purchase price of equipment) of $90.6 million in the third fiscal quarter of 1999, as compared to 2,580 leases having a cost of $26.5 million in the third quarter of fiscal 1998. Lease originations and equipment costs increased 107% and 242%, respectively.
Small-ticket leases under management increased to $559.5 million from $88.8 million, an increase of 530% from the third quarter of fiscal 1998.

Real Estate Finance

Prior to January 1, 1999, most of the Company's transactions involving the sale or financing of senior lien interests met the criteria for "gain on sale" under generally accepted accounting principles. Effective January 1, 1999, the Company made a strategic decision to structure future transactions so as to avoid recognition of gains on sale of commercial real estate loans. As a result there was no revenue recognized from gains on sale of senior lien interests in commercial real estate loans in the third fiscal quarter of 1999 as compared to $9.5 million of gains on sale recognized in the third quarter of fiscal 1998.
The face value of the Company's commercial mortgage loans increased to $739.7 million at June 30, 2022 an increase of $218.7 million (42%) from $521.0 million at June 30, 1998.
The carrying value of the Company's commercial mortgage loans increased to $259.8 million at June 30, 1999, an increase of $79.4 million (44%) from $180.4 million at June 30, 1998.

Energy and Energy Finance

Since June 30, 2022 the Company has experienced a substantial increase in the prices it receives for its natural gas. The Company has secured fixed contracts or hedges for approximately half of its natural gas for the period beginning July 1, 2022 through December 31, 2021 at a gross average price of $2.95 per mcf as compared to $2.31 per mcf for the quarter ended June 30, 1999. The balance of the Company's gas production remains subject to market fluctuation.
As a result of the acquisition of The Atlas Group, Inc. ("Atlas") on September 29, 1998, revenues from energy and energy finance operations increased to $11.2 million from $1.5 million in the third quarter of fiscal 1998, an increase of $9.7 million (647%).

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.