Resource America, Inc. Reports Operating Results for the First Fiscal Quarter Ended December 31, 2009
Resource America, Inc. Reports Operating Results for the First Fiscal Quarter Ended Dec 31, 2009
PHILADELPHIA, PA–(Marketwire – Feb 8, 2010) – Resource America, Inc. ( NASDAQ : REXI) (the
“Company”) reported both income from stability operations and net income
attributable to usual shareholders of $971,000, or $0.05 per common
share-diluted for the initial mercantile entertain of 2010 as compared to a loss
from stability operations attributable to usual shareholders of $3.3
million, or $0.18 per usual share-diluted, and a net detriment attributable to
common shareholders of $3.2 million, or $0.18 per usual share-diluted, for
the initial mercantile entertain of 2009.
Jonathan Cohen, CEO and President commented, “Our initial mercantile quarter
showed plain profitability after the dual before buliding were essentially
break even. We have been saying the benefits from carrying narrowed the concentration on
our genuine estate, corporate loans and leasing businesses. In you do so, we
have tailored the proceed and the blurb operation models to altered economic
times, but we have confirmed the long-standing design of building and
growing businesses with scalable platforms. The monetary predicament of
2007-2009 did means good damage, but we have been right away saying most opportunities
in the businesses. Including commitments from institutional and joint
venture partners, we have we estimate $500.0 million of collateral to
invest. As we go on to lift collateral in this sourroundings for our
managed businesses, together with Resource Capital, Resource Real Estate
Opportunity REIT, Inc. and Apidos Opportunity Fund, we will concentration on
profitability opposite all of the businesses.”
The Company additionally reported:
-- Capital Fundraising.
- In Dec 2009, Resource Real Estate Holdings, Inc. ("Resource
Real Estate") sealed the genuine estate event fund, which
focuses on appropriation ignored genuine estate resources and related
debt, carrying lifted $41.4 million.
- LEAF Financial, Inc. ("LEAF") additionally sealed LEAF Equipment Finance
Fund 4, L.P. in Oct 2009, carrying lifted $125.7 million.
-- Resource Real Estate filed a $750.0 million registration matter with
the Securities and Exchange Commission on Jul 7, 2009 for Resource
Real Estate Opportunity REIT, Inc. of that Resource Real Estate will
be the outmost manager. Resource Real Estate not long ago filed a second
legislative addition to the creatively filed registration statement.
-- Debt Reduction. As of Dec 31, 2009, the Company marked down the total
combined borrowings superb to $174.0 million from $608.7
million as of Dec 31, 2008, a diminution of $434.7 million (71%).
At Dec 31, 2009, borrowings embody $124.9 million of borrowings
underneath a non-recourse credit trickery at LEAF, $19.4 million of
corporate revolving debt, $13.2 million of comparison notes, net of
discounts, and $16.5 million of alternative debt, of that $14.6 million is
in debt debt cumulative by the underlying properties.
-- Resource Capital Corp. Follow-On Offering. Resource Capital Corp
( NYSE : RSO) ("RCC"), a genuine estate investment certitude for that the
Company is the outmost physical education instructor and a shareholder, finished a public
charity of 10 million shares of the usual batch at a cost of $4.50
per share. RCC perceived net proceeds, after underwriting discounts but
before to expenses, of $43.8 million. Since Aug 2009, RCC additionally added
an one some-more $13.9 million of collateral by alternative issuances of its
usual stock. The Company is paid a bottom government price of 1.5% based
on RCC's equity.
-- Adjusted Revenues and Adjusted Operating Income - Non-GAAP Measures.
For the initial mercantile entertain finished Dec 31, 2009, the Company
reported practiced revenues of $22.9 million as compared to $33.2
million for the initial mercantile entertain finished Dec 31, 2008. For the
initial mercantile entertain finished Dec 31, 2009, the Company reported
practiced handling income of $1.9 million as compared to $5.0 million
for the initial mercantile entertain finished Dec 31, 2008. Adjusted
revenues and practiced handling income excludes a $2.6 million pre-tax
satisfactory worth good for the initial mercantile entertain finished Dec 31, 2009 as
compared to the inclusion of $1.2 million of pre-tax satisfactory worth losses
for the initial mercantile entertain finished Dec 31, 2008. A reconciliation
of the Company's sum GAAP revenues and GAAP handling income to
practiced revenues and practiced handling income is enclosed in
Schedule I to this release.
Assets Under Management
The following list sum the Company’s resources underneath government by
operating segment, that decreased by $4.2 billion (24%) from Dec 31,
2008 to Dec 31, 2009:
At Dec 31,
-------------------------------
2009 2008
--------------- ---------------
Financial comment government $ 10.4 billion $ 14.2 billion
Real estate 1.7 billion 1.7 billion
Commercial monetary 1.2 billion 1.6 billion
--------------- ---------------
$ 13.3 billion $ 17.5 billion
=============== ===============
A outline of how the Company calculates resources underneath government is set
forth in Item 1 of the Company’s Annual Report on Form 10-K for the fiscal
year finished Sep 30, 2009.
Book Value
As of Dec 31, 2009, the Company’s GAAP book worth per usual share was
$7.89 per share. Total stockholders’ equity was $142.3 million as of
December 31, 2009 as compared to $141.2 million as of Dec 31, 2008.
Total usual shares superb were 18,036,643 as of Dec 31, 2009 as
compared to 17,665,259 as of Dec 31, 2008.
Other Highlights for the First Fiscal Quarter Ended Dec 31, 2009 and
Recent Developments
-- The Company has marked down the borrowings to $174.0 million at December
31, 2009, a diminution of $17.4 million from Sep 30, 2009. This
diminution essentially reflects an $11.6 million rebate in borrowings on
LEAF's revolving room credit trickery and a $7.7 million reduction
on one of the Company's corporate revolving lines of credit.
-- The Company released $18.8 million of comparison records in a in isolation placement
to institutional investors in Sep and Oct 2009. The proceeds
were essentially used to revoke the Company's corporate borrowings on one
of the lines of credit.
-- Resource Real Estate finished fundraising for Resource Real Estate
Opportunity Fund L.P., ("RREI Opportunity Fund") a genuine estate
partnership focused on investing in ignored genuine estate and related
debt, carrying lifted $41.4 million. In Jan 2010, RREI Opportunity
Fund acquired a 296 territory multifamily let skill in Houston, Texas.
-- Resource Real Estate Management, Inc., the Company's property
government subsidiary, increasing the unit units it manages to
13,127 at Dec 31, 2009 from 12,794 at Dec 31, 2008.
-- In Jan 2010, Resource Real Estate finished the sale of its
seductiveness in a skill in Minnesota, reception net deduction of
$811,000. As a outcome of the sale, this formerly consolidated
entity will be deconsolidated to illustrate serve shortening the Company's
debt by $1.0 million.
-- LEAF entered in to a businessman module attribute with the Life Safety
multiplication of Honeywell to yield stretchable financing solutions for
companies appropriation mass notification, fire, and hold up reserve systems
and upgrades.
-- The Company's Board of Directors certified the remuneration of a cash
division paid on Jan 29, 2010 in the volume of $0.03 per share on
the Company's usual batch to holders of jot down at the tighten of
blurb operation on Dec 31, 2009.
-- RCC paid a money division of $0.25 per usual share for the fourth
entertain finished Dec 31, 2009.
Resource America, Inc. is a specialized item government association that uses
industry specific imagination to evaluate, originate, use and manage
investment opportunities for the own comment and for outward investors in
the genuine estate, blurb monetary and monetary comment government sectors.
For some-more information, greatfully revisit the website at www.resourceamerica.com
or hit financier family at pkamdar@resourceamerica.com.
Statements done in this recover embody forward-looking statements, which
involve estimable risks and uncertainties. The Company’s tangible results,
performance or achievements could talk about materially from those voiced or
implied in this recover and the alternative reports filed with the Securities and
Exchange Commission. For report regarding to risks relating to these
forward-looking statements, anxiety is done to the territory “Risk Factors”
contained in Item 1A of the Company’s Annual Report on Form 10-K. The
Company undertakes no requisite to refurbish or correct any forward-looking
statements to simulate brand new or becoming different report or events solely as may
be compulsory by law.
A registration matter relating to the bonds to be offering by
Resource Real Estate Opportunity REIT, Inc. has been filed with the
Securities and Exchange Commission but has not nonetheless turn effective. These
securities might not be sole nor might offers to buy be supposed before to the
time the registration matter becomes effective. A created prospectus
may be performed by contacting Chadwick Securities, Inc., 1845 Walnut
Street, 10th Floor, Philadelphia, PA 19103.
This press recover shall not consecrate an suggest to sell or a solicitation
of an suggest to buy any of the bonds described herein, nor shall there
be any sale of these bonds in any state or office in that such
offer, questionnaire or sale would be wrong before to registration or
qualification underneath the bonds laws of any such state or jurisdiction.
The residue of this recover contains the Company’s unaudited consolidated
balance sheets, combined statements of operations, consolidated
statements of money flows, and settlement of GAAP revenues to adjusted
revenues and settlement of GAAP handling income to practiced operating
income.
RESOURCE AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, solely share data)
Dec 31, Sep 30,
2009 2009
------------- -------------
(unaudited) (as revised)
ASSETS
Cash $ 8,409 $ 26,197
Restricted money 2,231 2,741
Receivables 852 1,358
Receivables from managed entities and
associated parties, net 61,249 55,047
Investments in blurb monetary - held
for investment, net 1,776 2,429
Investments in blurb monetary - held
for sale, net 132,621 142,701
Investments in genuine estate, net 27,631 27,313
Investment bonds available-for-sale,
at satisfactory worth 20,022 19,500
Investments in unconsolidated entities 14,420 16,241
Property and equipment, net 12,689 13,435
Deferred taxation resources 45,552 45,656
Goodwill 7,969 7,969
Intangible assets, net 3,441 3,637
Other resources 11,738 11,616
------------- -------------
Total resources $ 350,600 $ 375,840
============= =============
LIABILITIES AND EQUITY
Liabilities:
Accrued waste and alternative liabilities $ 32,107 $ 40,986
Payables to managed entities and related
parties 245 1,284
Borrowings 174,030 191,383
Deferred taxation liabilities 2,046 2,046
------------- -------------
Total liabilities 208,428 235,699
------------- -------------
Commitments and contingencies
Equity:
Preferred stock, $1.00 standard value, 1,000,000
shares authorized; nothing superb - -
Common stock, $.01 standard value, 49,000,000
shares authorized; 27,761,974 and
27,757,849 shares issued, respectively
(including nonvested limited batch of
531,603 and 552,461, respectively) 272 272
Additional paid-in collateral 279,689 277,944
Accumulated necessity (22,040) (22,471)
Treasury stock, at cost; 9,193,728 and
9,213,665 shares, respectively (100,150) (100,367)
Accumulated alternative extensive detriment (15,517) (15,560)
------------- -------------
Total stockholders' equity 142,254 139,818
Noncontrolling interests (82) 323
------------- -------------
Total equity 142,172 140,141
------------- -------------
Total liabilities and equity $ 350,600 $ 375,840
============= =============
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, solely per share data)
(unaudited)
Three Months Ended
Dec 31,
--------------------------
2009 2008
------------ ------------
REVENUES: (as revised)
Real estate $ 6,947 $ 6,890
Commercial monetary 8,823 15,151
Financial comment government 9,652 9,919
------------ ------------
25,422 31,960
------------ ------------
COSTS AND EXPENSES:
Real estate 4,727 5,918
Commercial monetary 4,575 7,449
Financial comment government 4,704 5,728
General and executive 3,432 4,008
Loss (gain) on sales of leases and loans 582 (233)
Provision for credit waste 776 3,744
Depreciation and amortization 2,206 1,547
------------ ------------
21,002 28,161
------------ ------------
OPERATING INCOME 4,420 3,799
------------ ------------
OTHER (EXPENSE) INCOME:
Impairment waste on investment bonds (929)
Recognized in alternative extensive detriment 929
------------
Net spoil waste famous in good - (4,923)
Interest responsibility (3,817) (8,399)
Other income, net 570 1,699
------------ ------------
(3,247) (11,623)
------------ ------------
Income (loss) from stability operations before
taxes 1,173 (7,824)
Income taxation sustenance (benefit) 585 (4,146)
------------ ------------
Income (loss) from stability operations 588 (3,678)
Income from dropped operations, net of taxation - 75
------------ ------------
Net income (loss) 588 (3,603)
Add: Net detriment attributable to the
noncontrolling interests 383 383
------------ ------------
Net income (loss) attributable to common
shareholders $ 971 $ (3,220)
============ ============
Basic income (loss) per share attributable to
usual shareholders:
Continuing operations $ 0.05 $ (0.18)
Discontinued operations - -
------------ ------------
Net income (loss) $ 0.05 $ (0.18)
============ ============
Weighted normal shares superb 18,689 18,221
============ ============
Diluted income (loss) per share attributable to
usual shareholders:
Continuing operations $ 0.05 $ (0.18)
Discontinued operations - -
------------ ------------
Net income (loss) $ 0.05 $ (0.18)
============ ============
Weighted normal shares superb 18,962 18,221
============ ============
Dividends spoken per usual share $ 0.03 $ 0.07
============ ============
Amounts attributable to usual shareholders:
Income (loss) from stability operations, net
of taxation $ 971 $ (3,295)
Discontinued operations, net of taxation - 75
------------ ------------
Net income (loss) $ 971 $ (3,220)
============ ============
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
Dec 31,
------------------
2009 2008
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to usual shareholders $ 971 $ (3,220)
Adjustments to determine net income (loss) attributable
to usual shareholders to net money used in operating
activities:
Net spoil waste famous in good - 4,923
Depreciation and amortization 3,173 2,011
Provision for credit waste 776 3,744
Equity in (earnings) waste of unconsolidated
entities (3,405) 314
Distributions from unconsolidated entities 1,176 1,548
Loss (gain) on sale of leases and loans 582 (233)
Gain on sale of resources (244) (3)
Deferred income taxation sustenance (benefit) 34 (1,084)
Equity-based remuneration released 1,120 1,204
Equity-based remuneration perceived (375) (103)
Decrease (increase) in blurb monetary investments -
hold for sale 8,386 (23,443)
Change in handling resources and liabilities (13,431) (2,441)
-------- --------
Net money used in handling activities (1,237) (16,783)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (118) (127)
Purchase of blurb monetary resources hold for
investment - (41,942)
Payments perceived on sale of blurb monetary assets
- hold for investment - 13,881
Purchase of loans and investments (1,640) (11,244)
Proceeds from sale of loans and investments 2,274 3,419
Principal payments perceived on loans - 2,024
Other (412) (3,320)
-------- --------
Net money supposing by (used in) investing activities 104 (37,309)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings 45,701 163,095
Principal payments on borrowings (62,326) (108,601)
Dividends paid (540) (1,234)
Decrease in limited money 510 2,268
Purchase of auxiliary batch hold by a noncontrolling
stockholder - (264)
-------- --------
Net money (used in) supposing by financing activities (16,655) 55,264
-------- --------
(Decrease) enlarge in money (17,788) 1,172
Cash at commencement of year 26,197 14,910
-------- --------
Cash at finish of duration $ 8,409 $ 16,082
======== ========
SCHEDULE I
RECONCILIATION OF GAAP REVENUES TO ADJUSTED REVENUES AND RECONCILIATION OF
GAAP OPERATING INCOME TO ADJUSTED OPERATING INCOME
(in thousands)
(unaudited)
Three Months Ended
Dec 31,
-------------------
2009 2008
-------- ---------
Revenues:
Real estate $ 6,947 $ 6,890
Commercial monetary 8,823 15,151
Financial comment government 9,652 9,919
-------- ---------
Total revenues - GAAP 25,422 31,960
Adjustments:
Fair worth adjustments (1) (2,570) 1,218
-------- ---------
Adjusted revenues (2) $ 22,852 $ 33,178
======== =========
Operating income - GAAP $ 4,420 $ 3,799
Adjustments:
Fair worth adjustments (1) (2,570) 1,218
-------- ---------
Adjusted handling income (2) $ 1,850 $ 5,017
======== =========
(1) Reflects pre-tax satisfactory worth adjustments on investments reported under
the equity process of accounting.
(2) Management of the Company views practiced revenues and adjusted
handling income, both non-GAAP measures, as utilitarian and appropriate
supplements to revenues and handling income given they bar fair
worth adjustments associated to stream credit marketplace conditions and are
not demonstrative of the Company's stream handling performance.
