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




Resource America, Inc. Reports Earnings For Third Fiscal Quarter And Nine Months Ended June 30, 2022

Philadelphia, PA, August 14, 2022 - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported net income of $1.3 million and $5.2 million for the third quarter and nine months ended June 30, 2000, as compared to $7.3 million and $19.6 million for the third quarter and nine months ended June 30, 1999, a decrease of $6.1 million (83%) for the quarter and $14.4 million (73%) for the nine months. Net income per common share-diluted was $0.05 and $0.22 for the third quarter and nine months ended June 30, 2000, as compared to $0.32 and $0.86 for the third quarter and nine months ended June 30, 1999, a decrease of 84% and 74%, respectively.

During the second quarter of fiscal 2000 and the fourth quarter of fiscal 1999, the Company discontinued the operations of its small ticket equipment leasing business and residential mortgage lending business, respectively. Accordingly, the small ticket equipment leasing business and the residential mortgage lending business are reported as discontinued operations for the third quarter and nine months ended June 30, 2022 and 1999.

The decrease in net income was principally due to a reduction in real estate finance operating income. Real estate finance operating income decreased to $3.3 million for the quarter ended June 30, 2022 from $15.9 million for the quarter ended June 30, 1999, a decrease of $12.6 million (79%). This resulted primarily from lower interest and fee income in the quarter ended June 30, 2022 as compared to the quarter ended June 30, 1999.

Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for the Company's energy operations increased to $5.4 million for the quarter ended June 30, 2022 from $2.7 million for the quarter ended June 30, 1999, an increase of $2.6 million (96%).

Net cash provided by operating activities was $8.5 million for the nine months ended June 30, 2022 whereas net cash used in operating activities was $2.4 million for the nine months ended June 30, 1999, an increase of $10.9 million.




Highlights for the Third Fiscal Quarter Ended June 30, 2022 Include:

Energy
  • Revenues from energy operations increased to $17.6 million from $11.2 million (57%), for the quarter ended June 30, 2022 as compared to the quarter ended June 30, 1999.

  • The Company drilled and connected 42 natural gas development wells to the Atlas Pipeline Partners, L.P. (AMEX: APL) gas gathering system.

  • Production volumes from energy natural gas operations increased to 15,401 mcf's per day from 10,824 mcf's per day (42%), for the quarter ended June 30, 2022 as compared to the quarter ended June 30, 1999. In addition, production volumes from energy oil operations increased to 617 bbls per day from 188 bbls per day (228%) for the quarter ended June 30, 2022 as compared to the quarter ended June 30, 1999.

  • Optiron, Inc., the Company's partly owned subsidiary, continues to develop its internet business-to-business Application Service Provider ("ASP") delivery model. Optiron is a leader in providing web based billing and customer care solutions to the deregulating energy and converged network services industries. Optiron's Readi System, a cost-effective solution to small energy suppliers, expands Optiron's target market by approximately 60,000 potential customers who otherwise would not have access to high-end systems like Readi System.

  • Optiron, Inc., licensed its Readi System suite of software applications to a Pittsburgh, PA based $1 billion gas utility.

Equipment Leasing
  • On August 1, 2000, the Company announced that it had completed the sale of its wholly-owned subsidiary, Fidelity Leasing, Inc. ("FLI") to European American Bank ("EAB") a subsidiary of ABN AMRO Bank, N.V. Total consideration received by the Company, including payment of certain intercompany indebtedness was $152 million. In addition, EAB assumed approximately $431 million in debt payable to third parties and other liabilities, resulting in total consideration of $583 million.

Real Estate Finance
  • The Company was repaid $65 million by the property owner upon the refinance of an office building in Washington, D.C. The proceeds were used to retire the debt incurred by the Company to purchase the mortgage loan secured by the property.

  • The Company received $1.9 million upon the sale of a mortgage loan secured by a property in Baltimore, Maryland. The Company acquired the loan in April 1998 for $1.3 million.

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.