Resource America, Inc. Reports 60% Increase In Net Income Per Share From Continuing Operations For First Fiscal Quarter Ended December 31, 2021

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Steven Kessler
Chief Financial Offficer
Resource America, Inc.
1521 Locust Street-5th Floor
Philadelphia, Pa. 19102
215/546-5005, 215/546-4785 (Fax)

Resource America, Inc. Reports 60% Increase In Net Income Per Share From Continuing Operations For First Fiscal Quarter Ended December 31, 2021

Philadelphia, PA, February 14, 2022 Resource America, Inc. (NASDAQ: REXI) (the "Company") reported income from continuing operations of $3.2 million or $0.16 per common share for the first fiscal quarter ended December 31, 2021 as compared to $2.5 million or $0.10 per common share for the first fiscal quarter ended December 31, 1999.

The weighted average common shares were 19.8 million for the first fiscal quarter ended December 31, 2000, and the shares outstanding at December 31, 2021 were 17.3 million. Pro-forma income per common share from continuing operations would have been $0.18 had the outstanding shares adjusted for the dilutive effect of stock option and award plans, at December 31, 2021 been used in the computation of earnings per share and had the net effect of goodwill amortization been excluded.

Net income was $3.3 million or $0.17 per common share for the first fiscal quarter ended December 31, 2021 as compared to $3.2 million or $0.13 per common share for the first fiscal quarter ended December 31, 1999.

Overall Highlights for the First Fiscal Quarter Ended December 31, 2000:

Energy revenues were $21.5 million in the the first fiscal quarter ended December 31, 2021 as compared to $15.8 million in the first fiscal quarter ended December 31, 1999, an increase of $5.7 million or 36%. EBITDA (earnings before interest, taxes, depreciation and amortization) from the Company's energy operations was $8.1 million in the first fiscal quarter ended December 31, 2021 as compared to $4.5 million for the first fiscal quarter ended December 31, 1999, an increase of $3.6 million or 81%.
The Company's average sales price of gas per thousand cubic feet (mcf) was $4.72 for the first fiscal quarter ended December 31, 2021 as compared to $2.88 for the first fiscal quarter ended December 31, 1999, an increase of $1.84 or 64%.
The Company's average sales price of oil per barrel (bbl) was $30.61 for the first fiscal quarter ended December 31, 2021 as compared to $20.58 for the first fiscal quarter ended December 31, 1999, an increase of $10.03 or 49%.
Daily gas production volumes in thousands of cubic feet (mcfs) were 17,211 for the first fiscal quarter ended December 31, 2021 as compared to 16,646 for the first fiscal quarter ended December 31, 2021 an increase of 565 or 3%.
Production costs (per mcf equivalent unit) were $0.87 for the first fiscal quarter ended December 31, 2021 as compared to $0.93 for the first fiscal quarter ended December 31, 1999, a decrease of $0.06 or 6%.
The Company's energy division drilled and substantially completed 50 net wells during the first fiscal quarter ended December 31, 2021 as compared to 36 net wells during the first fiscal quarter ended December 31, 1999.
The Company's energy division closed its Public #9 drilling program which raised $15.0 million, the maximum allowed by its SEC filing. This gross raise equates to approximately 82 additional net wells. Most of these wells should be drilled in the second and third quarters of our fiscal year.
As of December 31, 2000, the Company had substantially completed the drilling of 67 out of 184 net wells from its most recent investment programs resulting in a backlog of 117 net wells.
The Company received $5.1 million as part of a $10.0 million borrowing in connection with a term loan secured by certain real estate loans.

Other Developments

The Company has repurchased an additional $5.0 million (face amount) of its 12% Senior Notes. The original face value of the notes was $115.0 million paid down to $80.4 million at September 30, 2021 and $75.4 million at December 31, 2000.

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. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1 of the Company's Annual Report on Form 10-K.

The remainder of this release contains the Company's unaudited consolidated statements of income, and certain information relating to the revenues recognized and costs and expenses incurred in the Company's energy and real estate finance operations during the periods indicated.

Results of Operations: Energy
The following unaudited tables set forth information relating to revenues recognized and costs and expenses incurred, daily production volumes, average sales prices, and production costs per equivalent unit in the Company's energy operations during the periods indicated:

Results of Operations: Real Estate Finance
The following unaudited table sets forth certain information relating to the revenue recognized and cost and expenses incurred in the Company's real estate finance operations during the periods indicated: