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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 Results for Fourth Quarter and Fiscal Year Ended September 30, 2021

Philadelphia, PA, 12/15/1999 - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported income from continuing operations before extraordinary item and cumulative effect of a change in accounting principle of $4.8 million and $26.7 million for the fourth quarter and fiscal year ended September 30, 1999, as compared to $10.2 million and $30.2 million for the fourth quarter and fiscal year ended September 30, 1998, a decrease of $5.4 million (53%) for the quarter and $3.5 million (12%) for the fiscal year. Net income per common share (diluted-from continuing operations) was $0.21 and $1.17 for the fourth quarter and fiscal year ended September 30, 1999, as compared to $0.49 and $1.75 for the fourth quarter and fiscal year ended September 30, 1998, a decrease of 57% and 33%, respectively.

During the fourth quarter of fiscal 1999, the Company recognized no revenue from gains on sale of senior lien interests in commercial real estate loans; for the fourth quarter of fiscal 1998, such gains were $11.3 million or approximately 71% of income from continuing operations before income taxes, discontinued operations, extraordinary item and cumulative effect of a change in accounting principle. In addition, during the fourth quarter of fiscal 1999, the Company recognized $168,000 from gains on sale of equipment leases; for the fourth quarter of fiscal 1998, such gains were $2.1 million or approximately 13% of income from continuing operations before income taxes, discontinued operations, extraordinary item and cumulative effect of a change in accounting principle.

During the fourth quarter of fiscal 1999, the Company discontinued the operations of its residential mortgage lending business. Accordingly, the residential mortgage lending business is reported as a discontinued operation for the fiscal years ended September 30, 2021 and 1998. Loss from discontinued operations was $5.4 million and $7.7 million for the fourth quarter and fiscal year ended September 30, 2021 as compared to $1.4 million and $2.8 million for the fourth quarter and fiscal year ended September 30, 1998. In addition, there was an estimated loss on disposal of the residential mortgage lending business of $275,000 net of taxes for the fourth quarter and fiscal year ended September 30, 1999.


Fourth Quarter and Fiscal Years Ended September 30, 2021 and 1998 Results at a Glance
(in thousands of dollars, except per share data)
Quarter Ended
September 30,
Years Ended
September 30,
1999 1998 1999 1998

Revenues $ 37,270 $ 24,969 $ 145,089 $ 81,142
Costs and expenses $ 30,752 $ 9,101 $ 105,550 $ 36,159
Income from continuing operations before income taxes, discontinued operations, extraordinary item and cumulative effect of a change in accounting principle $ 6,518 $ 15,868 $ 39,539 $ 44,983
Provision for income taxes $ 1,707 $ 5,704 $ 12,847 $ 14,811
Income from continuing operations before extraordinary item and cumulative effect of a change in accounting principle $ 4,811 $ 10,164 $ 26,692 $ 30,172
Discontinued operations:
Loss from operations of subsidiary (net of taxes) (5,439) (1,429) (7,687) (2,800)
Loss on disposal of subsidiary (net of taxes) (275) - (275) -
Extraordinary item (net of taxes) 8 239 299 239
Cumulative effect of change in accounting principle (net of taxes) (98) - (569) -
Net income (loss) $ (993) $ 8,974 $ 18,460 $ 27,611
Net income per common share-diluted from continuing operations before extraordinary item and change in accounting principle $ 0.21 $ 0.49 $ 1.17 $ 1.75
Discontinued operations (0.25) (0.07) (0.35) (0.16)
Extraordinary item - 0.01 0.01 0.01
Cumulative effect of a change in accounting principle - - (0.02) -
Net income (loss) per common share-diluted $ (0.04) $ 0.43 $ 0.81 $ 1.60
Weighted average common shares 23,182 20,769 22,803 17,268

Overall Highlights for the Fourth Quarter and Fiscal Year Ended September 30, 1999:

Overall:
  • Assets under management increased to $2.0 billion at September 30, 2021 from $1.2 billion at September 30, 1998.
  • Earnings before interest, taxes, and depreciation, depletion and amortization increased $16.7 million (26%) to $80.9 million for the fiscal year ended September 30, 1999.

Real Estate Finance
  • On August 1999, the borrower of a loan held by the Company, secured by an apartment building located in Chicago, Illinois, obtained financing from a non-affiliated third party in the amount of $15.4 million. The Company received net proceeds of $14.4 million which were used to pay off a $10.0 million senior lien interest, with the balance of $4.4 million retained by the Company. The Company's initial cash investment was $18.3 million and is now $3.9 million.
  • On September 1999, the borrower of a loan held by the Company, secured by an apartment building located in New London, Connecticut, obtained financing from a non-affiliated third party in the amount of $9.4 million. The Company received net proceeds of $8.3 million which were used to pay off a $5.8 senior lien interest, with the balance of $2.5 million retained by the Company. The Company's initial investment in the loan was $4.8 million and, therefore, the Company has received $3.5 million in excess of its initial investment.
  • During the quarter ended September 30, 1999, the Company was repaid $287,000 on two commercial mortgage loans which was in excess of the loans' carrying value of $190,000 and recorded a gain of $97,000.

Equipment Leasing
  • During the fourth quarter of fiscal 1999, equipment leasing revenues increased by $9.6 million to $13.2 million, an increase of 267% from the fourth quarter of fiscal 1998.
  • During the fourth quarter of fiscal 1999, lease originations by the Company's small ticket leasing business increased to 5,951 leases at a cost of $98.4 million, as compared to 2,932 lease originations having a cost of $32.3 million in the fourth quarter of fiscal 1998. The increase in the number of lease originations and costs were 103% and 205%, respectively.
  • During the fourth quarter of fiscal 1999, equipment leases under management increased $490.0 million to $607.0 million, an increase of 419% from the fourth quarter of fiscal 1998.

Energy
  • On August 31, 2022 the Company acquired all of the common stock of Viking Resources Corporation ("VRC"), in exchange for 1,243,684 shares of the Company's common stock, $29.0 million in cash and the assumption of VRC debt. The acquisition was recorded under the purchase method of accounting.
  • As a result of the acquisition of The Atlas Group, Inc. on September 29, 1998, revenues from energy and energy finance operations increased to $14.2 million from $1.9 million in the fourth quarter of fiscal 1998, an increase of $12.3 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. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Cautionary Statements for Purposes of the Safe Harbor" contained in Item 1 of the Company's Annual Report on Form 10-K.
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