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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 for First Fiscal Quarter Ended December 31, 2021
Philadelphia, PA, 2/14/2000 - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported that:
Net income was $3.2 million for the first fiscal quarter ended December 31, 2021 as compared to $5.3 million for the first fiscal quarter ended December 31, 2021 a decrease of $2.1 million (40%). Net income per common share - diluted was $0.13 for the first fiscal quarter ended December 31, 1999, as compared to $0.24 for the first fiscal quarter ended December 31, 1998, a decrease of 40%. This decrease in net income from the first quarter of fiscal 1999 to the first quarter of fiscal 2000 was principally due to an increase in depreciation expense of $1.2 million resulting from the acquisition of Viking Resources Corporation in the fourth quarter of fiscal 1999 and the decision in the first half of fiscal 1999 to structure lease and mortgage loan transactions in ways that do not qualify for "gain on sale" treatment.
EBITDA (earnings before interest, taxes, depreciation, depletion and amortization) increased $4.5 million (29%) to $19.7 million for first fiscal quarter ended December 31, 2021 from $15.3 million for the first fiscal quarter ended December 31, 1998.
Net cash provided by operating activities increased to $18.5 million in the first quarter of fiscal 2000 compared to $4.9 million in the first quarter of fiscal 1999, an increase of $13.6 million. Assets under management increased to $2.1 billion at December 31, 2021 from $1.2 billion at December 31, 1998.
First Fiscal Quarter Ended December 31, 2021 Results At A Glance:
(in thousands of dollars except per share data) |
| |
Three Months Ended December 31, |
| |
1999
|
1998
|
| |
(unaudited) |
| Revenues |
$ 37,876 |
$ 30,636 |
| Costs and Expenses |
33,269 |
21,004 |
| Income from continuing operations before income taxes, extraordinary item and cumulative effect of a change in accounting principle |
4,607 |
9,632 |
| Provision for income taxes |
1,570
|
3,456
|
| Income from continuing operations before extraordinary item and cumulative effect of a change in accounting principle |
3,037 |
6,176 |
| Discontinued operations: |
| Loss from operations of subsidiary, net of taxes of $366 |
-
|
(732)
|
| Extraordinary item, net of taxes of $63 and $150 |
122 |
291 |
| Cumulative effect of change in accounting principle, net of taxes of $369 |
-
|
(471)
|
| Net income |
$ 3,159
|
$ 5,264
|
| Net income per common share - diluted: |
| From continuing operations |
.13 |
$ .28 |
| Discontinued operations |
- |
(.03) |
| Extraordinary item |
- |
.01 |
| Cumulative effect of a change in accounting principle |
-
|
(.02)
|
| Net income per common share - diluted |
$ .13
|
$ .24
|
| Weighted average common shares |
23,742
|
22,393
|
Highlights for the First Fiscal Quarter Ended December 31, 2021 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 $280,000 in the first quarter of fiscal 2000 as compared to $2.2 million in the first quarter of fiscal 1999.
- Equipment leasing revenues increased to $14.5 million in the first quarter of fiscal 2000 from $4.4 million in the first quarter of fiscal 1999, an increase of 228%.
- During the first quarter of fiscal 2000, leases originated by the Company's small-ticket leasing business increased to 6,765 leases having a cost (purchase price of equipment) of $135.6 million, as compared to 3,221 leases having a cost of $39.7 million in the first quarter of fiscal 1999. Lease originations and costs increased 110% and 242%, respectively.
- Small-ticket leases under management increased to $681.7 million at December 31, 2021 from $148.3 million at December 31, 1998, an increase of 360%.
Energy
- Revenues from energy operations increased to $15.9 million from $15.1 million (5%), for the quarter ended December 31, 2021 as compared to the quarter ended December 31, 1998.
- The Company's 1999 natural gas development drilling investment offerings reached record total purchases of more than $33.2 million for the 1999 calendar year.
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 first quarter of fiscal 2000 as compared to $2.4 million of gains on sale recognized in the first quarter of fiscal 1999.
- The Company was repaid $58.9 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 $3.0 million in full satisfaction of a mortgage loan secured by a property in Sacramento, California. The Company acquired the loan on August 31, 2022 for $2.0 million
- The Company received $10.0 million in full satisfaction of a mortgage loan secured by a property in Virginia. The Company acquired the loan in October 1998 for $8.0 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.
The remainder of this release contains the Company's unaudited interim balance sheet, consolidated statements of income, consolidated statements of cash flows, and certain information relating to the revenues recognized and costs and expenses incurred in the Company's real estate finance, equipment leasing, and energy operations during the periods indicated.
Resource America, Inc. And Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data) |
| |
December 31,
1999
|
September 30,
1999
|
| |
(unaudited) |
| Assets |
|
| Cash and cash equivalents |
$ 47,206 |
$ 42,643 |
| Accounts and notes receivable and other prepaid expenses |
23,719 |
18,977 |
| Investments in real estate loans (less allowance for possible losses of $1,555 and $1,405) |
182,555 |
250,231 |
| Investments in real estate ventures |
17,614
|
18,159
|
| Investments in leases and notes receivable (less allowance for possible losses of $10,276 and $10,017) |
471,916 |
401,461 |
| Investment in Resource Asset Investment Trust |
9,039 |
9,300 |
| Property and equipment: |
| Oil and gas properties and equipment (successful efforts) |
79,927 |
78,923 |
| Gas gathering and transmission facilities |
15,867 |
18,061 |
| Other |
12,793
|
12,198
|
| |
108,587 |
109,182 |
| Less - accumulated depreciation, depletion and amortization |
(23,310)
|
(21,213)
|
| Net property and equipment |
85,277 |
87,969 |
| Other assets (less accumulated amortization of $7,429 and $6,058) |
105,855
|
72,647
|
| |
$ 943,181
|
$ 901,387
|
| Liabilities And Stockholders' Equity |
| Debt: |
| Warehouse debt |
$ 23,421 |
$ 15,291 |
| Non recourse debt |
456,351 |
439,943 |
| Senior debt |
99,850 |
101,400 |
| Other debt |
23,798
|
21,188
|
| Total debt |
603,420 |
577,822 |
| Other liabilities: |
| Accounts payable |
15,988 |
16,751 |
| Accrued liabilities |
41,844 |
27,395 |
| Estimated income taxes |
4,480 |
2,563 |
| Deferred income taxes |
11,304
|
13,069
|
| Total liabilities |
677,036 |
637,600 |
| Commitments and contingencies |
- |
- |
| Stockholders' equity |
| Preferred stock, $1.00 par value: 1,000,000 authorized shares |
- |
- |
| Common stock, $.01 par value: 49,000,000 authorized shares |
244 |
244 |
| Accumulated other comprehensive loss |
(1,873) |
(1,764) |
| Additional paid-in capital |
220,999 |
221,084 |
| Less treasury stock, at cost |
(16,839) |
(17,002) |
| Less loan receivable from Employee Stock Ownership Plan |
(1,480) |
(1,488) |
| Retained earnings |
65,094
|
62,713
|
| Total stockholders' equity |
266,145
|
263,787
|
| |
$ 943,181
|
$ 901,387
|
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