AMERICAN REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(dollars in thousands, except per share amounts) | ||||||||
Revenues: | ||||||||
Rental and other property revenues (including $175 and $165 for the three months ended 2014 and 2013, respectively, from related parties) | $ | 20,583 | $ | 20,350 | ||||
Expenses: | ||||||||
Property operating expenses (including $156 and $204 for the three months ended 2014 and 2013, respectively, from related parties) | 10,317 | 9,982 | ||||||
Depreciation and amortization | 4,476 | 3,755 | ||||||
General and administrative (including $918 and $890 for the three months ended 2014 and 2013, respectively, from related parties) | 1,994 | 2,012 | ||||||
Provision on impairment of notes receivable and real estate assets | - | - | ||||||
Net income fee to related party | 490 | 56 | ||||||
Advisory fee to related party | 2,242 | 2,554 | ||||||
Total operating expenses | 19,519 | 18,359 | ||||||
Operating income | 1,064 | 1,991 | ||||||
Other income (expenses): | ||||||||
Interest income (including $3,797 and $3,410 for the three months 2014 and 2013, respectively, from related parties) | 4,117 | 3,541 | ||||||
Other income | 178 | 2,536 | ||||||
Mortgage and loan interest (including $798 and $910 for the three months ended 2014 and 2013, respectively, from related parties) | (8,474 | ) | (9,444 | ) | ||||
Deferred borrowing costs amortization | (939 | ) | (2,461 | ) | ||||
Loan charges and prepayment penalties | (1,582 | ) | (3,937 | ) | ||||
Gain (loss) on sale of investments | - | (8 | ) | |||||
Earnings from unconsolidated subsidiaries and investees | 70 | 213 | ||||||
Litigation settlement | 3,839 | (45 | ) | |||||
Total other expenses | (2,791 | ) | (9,605 | ) | ||||
Loss before gain on land sales, non-controlling interest, and taxes | (1,727 | ) | (7,614 | ) | ||||
Gain (loss) on land sales | 753 | (35 | ) | |||||
Net loss from continuing operations before taxes | (974 | ) | (7,649 | ) | ||||
Income tax benefit | 1,870 | 2,673 | ||||||
Net income (loss) from continuing operations | 896 | (4,976 | ) | |||||
Discontinued operations: | ||||||||
Net income (loss) from discontinued operations | (710 | ) | 411 | |||||
Gain on sale of real estate from discontinued operations | 6,053 | 7,227 | ||||||
Income tax expense from discontinued operations | (1,870 | ) | (2,673 | ) | ||||
Net income from discontinued operations | 3,473 | 4,965 | ||||||
Net income (loss) | 4,369 | (11 | ) | |||||
Net (income) loss attributable to non-controlling interest | (819 | ) | 385 | |||||
Net income attributable to American Realty Investors, Inc. | 3,550 | 374 | ||||||
Preferred dividend requirement | (613 | ) | (613 | ) | ||||
Net income (loss) applicable to common shares | $ | 2,937 | $ | (239 | ) | |||
Earnings per share - basic | ||||||||
Net loss from continuing operations | $ | (0.05 | ) | $ | (0.45 | ) | ||
Net income from discontinued operations | 0.30 | 0.43 | ||||||
Net income (loss) applicable to common shares | $ | 0.25 | $ | (0.02 | ) | |||
Earnings per share - diluted | ||||||||
Net loss from continuing operations | $ | (0.05 | ) | $ | (0.45 | ) | ||
Net income from discontinued operations | 0.30 | 0.43 | ||||||
Net income (loss) applicable to common shares | $ | 0.25 | $ | (0.02 | ) | |||
Weighted average common shares used in computing earnings per share | 11,525,389 | 11,525,389 | ||||||
Weighted average common shares used in computing diluted earnings per share | 11,525,389 | 11,525,389 | ||||||
Amounts attributable to American Realty Investors, Inc. | ||||||||
Net income (loss) from continuing operations | $ | 77 | $ | (4,591 | ) | |||
Net income from discontinued operations | 3,473 | 4,965 | ||||||
Net income applicable to American Realty Investors, Inc. | $ | 3,550 | $ | 374 |
AMERICAN REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(dollars in thousands, except share and par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 770,960 | $ | 799,698 | ||||
Real estate held for sale at cost, net of depreciation ($27,282 for 2014 and $2,390 for 2013) | 9,787 | 16,427 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($2,036 for 2014 and $1,949 for 2013) | 23,335 | 27,598 | ||||||
Less accumulated depreciation | (120,468 | ) | (143,429 | ) | ||||
Total real estate | 683,614 | 700,294 | ||||||
Notes and interest receivable | ||||||||
Performing (including $138,086 in 2014 and $145,754 in 2013 from related parties) | 145,670 | 153,275 | ||||||
Non-performing | 3,129 | 3,140 | ||||||
Less allowance for doubtful accounts (including $15,809 in 2014 and 2013 from related parties) | (19,579 | ) | (19,600 | ) | ||||
Total notes and interest receivable | 129,220 | 136,815 | ||||||
Cash and cash equivalents | 18,384 | 16,437 | ||||||
Restricted cash | 27,736 | 32,929 | ||||||
Investments in unconsolidated subsidiaries and investees | 3,990 | 3,789 | ||||||
Receivable from related party | 34,751 | 14,086 | ||||||
Other assets | 42,461 | 38,972 | ||||||
Total assets | $ | 940,156 | $ | 943,322 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 629,364 | $ | 618,930 | ||||
Notes related to assets held for sale | 15,717 | 17,100 | ||||||
Notes related to subject to sales contracts | 20,991 | 23,012 | ||||||
Deferred revenue (including $74,303 in 2014 and 2013 from sales to related parties) | 76,148 | 76,148 | ||||||
Accounts payable and other liabilities (including $15,954 in 2014 and $15,394 in 2013 to related parties) | 59,400 | 73,271 | ||||||
801,620 | 808,461 | |||||||
Shareholders’ equity: | ||||||||
Preferred stock, Series A: $2.00 par value, authorized 15,000,000 shares, issued and outstanding 3,353,954 shares in 2014 and 2013 (liquidation preference $10 per share), including 900,000 shares in 2014 and 2013 held by subsidiaries. Series K: $2.00 par value, authorized, issued and outstanding 135,000 shares in 2014 and 2013, respectively (liquidation preference $22 per share) | 4,908 | 4,908 | ||||||
Common stock, $0.01 par value, authorized 100,000,000 shares; issued 11,941,174 shares and outstanding 11,525,389 shares in 2014 and 2013 | 115 | 115 | ||||||
Treasury stock at cost; 415,785 shares in 2014 and 2013 and 229,214 shares held by TCI (consolidated) as of 2014 and 2013 | (6,395 | ) | (6,395 | ) | ||||
Paid-in capital | 102,280 | 102,974 | ||||||
Retained earnings | (8,245 | ) | (11,795 | ) | ||||
Total American Realty Investors, Inc. shareholders' equity | 92,663 | 89,807 | ||||||
Non-controlling interest | 45,873 | 45,054 | ||||||
Total equity | 138,536 | 134,861 | ||||||
Total liabilities and equity | $ | 940,156 | $ | 943,322 |