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Contact: 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 $.30 per Common Share-Diluted for Quarter Ended March 31, 2022
Philadelphia, PA, 5/12/2021 - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported net income of $6.7 million and $12.7 million for the second fiscal quarter and six months ended March 31, 2022 as compared to $6.3 million and $10.3 million for the second fiscal quarter and six months ended March 31, 1998, an increase of $400,000 (6%) for the quarter and $2.4 million (23%) for the six months. For the second fiscal quarter of 1999, the Company had no revenue from gains on sale of commercial real estate loans; for the second quarter of fiscal 1998, such gains were $7.9 million or approximately 86% of total income before taxes. In addition, during the second fiscal quarter ended March 31, 1999, the Company:
- Increased assets under management to $1.8 billion at March 31, 2022 compared to $1.2 billion at September 30, 1998.
- Commenced operation of its small ticket leasing E-commerce Internet platform.
- Continued to acquire assets from Japanese banks, who are in the process of liquidating portions of their holdings in the U.S. The Company purchased, at a substantial discount, the mortgage on the National Press Building in Washington, DC from Sumitomo Bank, and acquired the U.S. small ticket leasing subsidiary of the Long Term Credit Bank of Japan.
- As planned, sold for $3.8 million in cash the gas marketing subsidiary of the Atlas America, Inc.
The Board of Directors authorized the payment on May 28, 2022 of a quarterly cash dividend in the amount of three and one-third cents per share on the Company's common stock to all holders of record at the close of business on May 14, 1999. The Company has approximately 22.1 million shares of common stock outstanding.
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.
Second Fiscal Quarter and Six Months Ended March 31, 2022 Results At A Glance:
(in thousands of dollars except per share data) |
|
Three Months
Ended March 31, |
Six Months
Ended March 31, |
| (unaudited) |
1999 |
1998 |
1999 |
1998 |
|
|
| Revenues |
$ 36,211 |
$ 21,305 |
$ 67,572 |
$ 36,385 |
| Costs and Expenses |
$ 26,081 |
$ 12,111 |
$ 48,789 |
$ 21,465 |
Income Before Income Taxes
and Extraordinary Item |
$ 10,130 |
$ 9,194 |
$ 18,783 |
$ 14,920 |
| Provision for Income Taxes |
$ 3,396 |
$ 2,875 |
$ 6,338 |
$ 4,650 |
| Net Income |
$ 6,734 |
$ 6,319 |
$ 12,736 |
$ 10,270 |
| Net Income per Common Share-Diluted |
$ 0.30 |
$ 0.43 |
$ 0.56 |
$ 0.70 |
| Weighted Average Common Shares |
22,656 |
14,748 |
22,597 |
14,733 |
Overall Highlights for the Second Fiscal Quarter and the Six Months Ended March 31, 2022 Include:
Equipment Leasing
- Equipment leasing revenues increased to $11.2 million from $3.5 million in the second quarter of fiscal 1998, an increase of 220%.
- Leases originated by the Company's small-ticket leasing business increased to 4,457 leases having a cost (purchase price of equipment) of $75.4 million in the second fiscal quarter of 1999, as compared to 1,798 leases having a cost of $17.0 million in the second quarter of fiscal 1998. Lease originations and equipment costs increased 148% and 344%, respectively.
- The Company commenced operation of its E-commerce Internet platform at the beginning of April, 1999. As of April 15, 1999, the Company had processed $3.0 million in lease credit applications from its E-commerce Internet platform.
- Small-ticket leases under management increased to $559.1 million from $65.8 million, an increase of 750% from the second 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 commercial real estate loans in the second fiscal quarter of 1999 as compared to $7.9 million of gains on sale recognized in the second quarter of fiscal 1998.
- Purchased for $74.4 million, the mortgage on the National Press Building in Washington, DC. The purchase price represents a discount to face value of $46.7 million. The National Press Building is located at 529 14th Street NW, contains 475,043 square feet (inclusive of the Press Club) and is 94% occupied. The building is home to many national and foreign media outlets as well as the National Press Club.
- The face value of the Company's commercial mortgage loans increased to $812.4 million at March 31, 2022 an increase of $389.7 million (92%) from $422.7 million at March 31, 1998.
- The carrying value of the Company's commercial mortgage loans increased to $273.0 million at March 31, 1999, an increase of $98.1 million (57%) from $174.3 million at March 31, 1998.
Energy and Energy Finance
- 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 $14.0 million from $1.5 million in the second quarter of fiscal 1998, an increase of $12.5 million (833%).
- Atlas sold a subsidiary, Atlas Gas Marketing, Inc. for $3.8 million in cash.
- Atlas Technologies, LLC., a 50% owned subsidiary and a leading provider of energy billing software to the deregulated energy industry, continues to develop version 3.0 of its READI SYSTEM software with internet capability. Atlas Technologies has won competitions to provide software to major utilities including, this quarter, First Energy, Inc., a utility based in Akron, OH.
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.
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