Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2021 | Sep. 09, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-4702 | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AMREP Corp. | |
Entity Incorporation, State or Country Code | OK | |
Entity Tax Identification Number | 59-0936128 | |
Entity Central Index Key | 0000006207 | |
Entity Address, Address Line One | 850 West Chester Pike | |
Entity Address, Address Line Two | Suite 205 | |
Entity Address, City or Town | Havertown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19083 | |
City Area Code | 610 | |
Local Phone Number | 487-0905 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,336,370 | |
Title of 12(b) Security | Common Stock $0.10 par value | |
Trading Symbol | AXR | |
Security Exchange Name | NYSE | |
Former Address [Member] | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 620 West Germantown Pike | |
Entity Address, Address Line Two | Suite 175 | |
Entity Address, City or Town | Plymouth Meeting | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19462 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 23,274 | $ 24,801 |
Real estate inventory | 61,298 | 55,589 |
Investment assets, net | 13,479 | 13,582 |
Other assets | 791 | 645 |
Deferred income taxes, net | 2,261 | 2,749 |
TOTAL ASSETS | 101,103 | 97,366 |
Liabilities: | ||
Accounts payable and accrued expenses | 3,700 | 4,458 |
Notes payable, net | 6,377 | 3,448 |
Taxes payable, net | 29 | 95 |
Accrued pension costs | 255 | 476 |
TOTAL LIABILITIES | 10,361 | 8,477 |
Shareholders' Equity: | ||
Common stock, $.10 par value; shares authorized - 20,000,000; shares issued - 7,336,370 at July 31, 2021 and 7,323,370 at April 30, 2021 | 731 | 730 |
Capital contributed in excess of par value | 45,221 | 45,072 |
Retained earnings | 49,347 | 47,710 |
Accumulated other comprehensive loss, net | (4,557) | (4,623) |
TOTAL SHAREHOLDERS' EQUITY | 90,742 | 88,889 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 101,103 | $ 97,366 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 31, 2021 | Apr. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,336,370 | 7,323,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
REVENUES: | ||
Total revenues | $ 10,507 | $ 4,206 |
COSTS AND EXPENSES: | ||
General and administrative expenses | 1,188 | 1,444 |
Total costs and expenses | 8,712 | 4,123 |
Operating income | 1,795 | 83 |
Interest income, net | 1 | 6 |
Other income | 230 | 650 |
Income before income taxes | 2,026 | 739 |
Provision for income taxes | 389 | 146 |
Net income | $ 1,637 | $ 593 |
Basic earnings per share | $ 0.22 | $ 0.07 |
Diluted earnings per share | $ 0.22 | $ 0.07 |
Weighted average number of common shares outstanding - basic | 7,346 | 8,151 |
Weighted average number of common shares outstanding - diluted | 7,373 | 8,182 |
Land sale revenues | ||
REVENUES: | ||
Total revenues | $ 7,190 | $ 3,487 |
COSTS AND EXPENSES: | ||
Cost of revenues | 5,610 | 2,679 |
Home sale revenues | ||
REVENUES: | ||
Total revenues | 2,411 | 0 |
COSTS AND EXPENSES: | ||
Cost of revenues | 1,914 | 0 |
Other revenues | ||
REVENUES: | ||
Total revenues | $ 906 | $ 719 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,637,000 | $ 593,000 |
Other comprehensive income, net of tax: | ||
Decrease in pension liability, net of tax ($31 in 2022 and $42 in 2021) | 66,000 | 90,000 |
Other comprehensive income | 66,000 | 90,000 |
Total comprehensive income | $ 1,703,000 | $ 683,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Decrease in pension liability, tax | $ 31 | $ 42 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Capital Contributed in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Apr. 30, 2020 | $ 836,000 | $ 51,334,000 | $ 43,149,000 | $ (6,467,000) | $ (4,215,000) | $ 84,637,000 |
Balance (in shares) at Apr. 30, 2020 | 8,358 | |||||
Issuance of restricted common stock | $ 1,000 | 41,000 | 0 | 0 | 0 | 42,000 |
Issuance of restricted common stock (in shares) | 9 | |||||
Net income | $ 0 | 0 | 593,000 | 0 | 0 | 593,000 |
Other comprehensive income | 0 | 0 | 0 | 90,000 | 0 | 90,000 |
Balance at Jul. 31, 2020 | $ 837,000 | 51,375,000 | 43,742,000 | (6,377,000) | (4,215,000) | 85,362,000 |
Balance (in shares) at Jul. 31, 2020 | 8,367 | |||||
Balance at Apr. 30, 2021 | $ 730,000 | 45,072,000 | 47,710,000 | (4,623,000) | 0 | 88,889,000 |
Balance (in shares) at Apr. 30, 2021 | 7,323 | |||||
Issuance of restricted common stock | $ 1,000 | 149,000 | 0 | 0 | 0 | 150,000 |
Issuance of restricted common stock (in shares) | 13 | |||||
Net income | $ 0 | 0 | 1,637,000 | 0 | 0 | 1,637,000 |
Other comprehensive income | 0 | 0 | 0 | 66,000 | 0 | 66,000 |
Balance at Jul. 31, 2021 | $ 731,000 | $ 45,221,000 | $ 49,347,000 | $ (4,557,000) | $ 0 | $ 90,742,000 |
Balance (in shares) at Jul. 31, 2021 | 7,336 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,637 | $ 593 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 104 | 129 |
Amortization of debt issuance costs | 34 | 3 |
Non-cash credits and charges: | ||
Stock-based compensation | 16 | 40 |
Deferred income tax provision | 456 | 187 |
Net periodic pension cost | (123) | 87 |
Gain on debt forgiveness | (45) | |
Changes in assets and liabilities: | ||
Real estate inventory and investment assets | (5,709) | (4,050) |
Other assets | (12) | (29) |
Accounts payable and accrued expenses | (758) | 980 |
Taxes payable | (66) | |
Net cash used in operating activities | (4,466) | (2,060) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (1) | (3) |
Net cash used in investing activities | (1) | (3) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from debt financing | 6,857 | 2,293 |
Principal debt payments | (3,867) | (637) |
Payments for debt issuance costs | (50) | (27) |
Net cash provided by financing activities | 2,940 | 1,629 |
Decrease in cash and cash equivalents | (1,527) | (434) |
Cash and cash equivalents, beginning of year | 24,801 | 17,502 |
Cash and cash equivalents, end of year | 23,274 | 17,068 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes refunded, net | (3) | |
Interest paid | 40 | 30 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 24 | $ 26 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | 3 Months Ended |
Jul. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES The accompanying unaudited consolidated financial statements have been prepared by AMREP Corporation (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information, and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The Company, through its subsidiaries, is primarily engaged in two business segments: land development and homebuilding. The Company has no foreign sales or activities outside the United States. All references to the Company in this quarterly report on Form 10-Q include the Registrant and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, these unaudited consolidated financial statements include all adjustments, which are of a normal recurring nature, considered necessary to reflect a fair presentation of the results for the interim periods presented. The results of operations for such interim periods are not necessarily indicative of what may occur in future periods. Unless the context otherwise indicates, all references to 2022 and 2021 are to the fiscal years ending April 30, 2022 and 2021. The unaudited consolidated financial statements herein should be read in conjunction with the Company’s annual report on Form 10-K for the year ended April 30, 2021, which was filed with the SEC on July 27, 2021 (the “2021 Form 10-K”). Certain 2021 balances in these financial statements have been reclassified to conform to the current year presentation with no effect on net income or shareholders’ equity. Summary of Significant Accounting Policies The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in the 2021 Form 10-K, except for those adopted as described below. New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes There are no other new accounting standards or updates to be adopted that the Company currently believes might have a significant impact on its consolidated financial statements. |
REAL ESTATE INVENTORY
REAL ESTATE INVENTORY | 3 Months Ended |
Jul. 31, 2021 | |
REAL ESTATE INVENTORY | |
REAL ESTATE INVENTORY | (2) REAL ESTATE INVENTORY Real estate inventory consists of (in thousands): July 31, April 30, 2021 2021 Land held for development or sale in New Mexico $ 55,640 $ 49,918 Land held for development or sale in Colorado 3,997 3,975 Homebuilding finished inventory 214 417 Homebuilding construction in process 1,447 1,279 $ 61,298 $ 55,589 |
INVESTMENT ASSETS, NET
INVESTMENT ASSETS, NET | 3 Months Ended |
Jul. 31, 2021 | |
INVESTMENT ASSETS, NET | |
INVESTMENT ASSETS, NET | (3) INVESTMENT ASSETS, NET Investment assets, net consist of (in thousands): July 31, April 30, 2021 2021 Land held for long-term investment $ 9,775 $ 9,775 Buildings 10,003 10,003 Less accumulated depreciation (6,299) (6,196) Buildings, net 3,704 3,807 $ 13,479 $ 13,582 Depreciation associated with the buildings was $103,000 and $105,000 for the three months ended July 31, 2021 and July 31, 2020. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Jul. 31, 2021 | |
OTHER ASSETS | |
OTHER ASSETS | (4) OTHER ASSETS Other assets consist of (in thousands): July 31, April 30, 2021 2021 Prepaid expenses $ 501 $ 324 Receivables 30 37 Right-of-use assets associated with leases of office facilities 60 84 Other assets 172 172 Property and equipment 222 222 Less accumulated depreciation (194) (194) Property and equipment, net 28 28 $ 791 $ 645 Prepaid expenses as of July 31, 2021 primarily consist of stock compensation and prepayments for a public improvement district. Amortized lease cost for right-of-use assets associated with the leases of office facilities was $24,000 and $26,000 for three months ended July 31, 2021 and July 31, 2020. Depreciation expense associated with property and equipment was less than $1,000 and $7,000 for three months ended July 31, 2021 and July 31, 2020. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Jul. 31, 2021 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | (5) ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of (in thousands): July 31, April 30, 2021 2021 Real estate operations Accrued expenses $ 536 $ 658 Trade payables 1,100 1,377 Real estate customer deposits 1,595 1,769 3,231 3,804 Corporate operations 469 654 $ 3,700 $ 4,458 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Jul. 31, 2021 | |
NOTES PAYABLE | |
NOTES PAYABLE | (6) NOTES PAYABLE Notes payable, net consist of (in thousands): July 31, April 30, 2021 2021 Real estate notes payable $ 6,427 $ 3,482 Unamortized debt issuance costs (50) (34) $ 6,377 $ 3,448 The following tables present information on the Company’s notes payable in effect during the three months ended July 31, 2021 (dollars in thousands): Principal Amount Available for Outstanding Principal Borrowing Principal Amount Repayments July 31, July 31, April 30, Three Months ended Loan Identifier 2021 2021 2021 July 31, 2021 Revolving Line of Credit $ 4,000 $ — $ — $ — Lomas Encantadas U2B P3 — — 410 1,770 Hawk Site U37 1,462 — — — Hawk Site U23 U40 2,670 30 30 — Lavender Fields – acquisition — — 1,749 1,703 Lavender Fields – development 2,194 899 1,293 394 La Mirada 1,877 5,498 — — $ 6,427 $ 3,482 Capitalized Interest Mortgaged Property and Fees Interest Rate Book Value Three Months ended Loan Identifier July 31, 2021 July 31, 2021 July 31, 2021 Revolving Line of Credit 3.75 % $ 1,690 $ — Lomas Encantadas U2B P3 3.75 % 3,363 10 Hawk Site U37 4.50 % 2,982 — Hawk Site U23 U40 3.75 % 3,956 30 Lavender Fields – development 3.75 % 6,530 11 La Mirada 3.75 % 7,835 22 As of July 31, 2021, the Company and each of its subsidiaries were in compliance with the financial covenants contained in the loan documentation for the then outstanding notes payable. Refer to Notes 6 and 19 to the consolidated financial statements contained in the 2021 Form 10-K for additional detail about each of the above notes payable. During the three months ended July 31, 2021, the outstanding principal amount of the note payable identified as “Lavender Fields – acquisition” was prepaid in full without penalty following the parties agreeing to reduce the outstanding principal amount by $45,000, which was recognized as Other income. The following table summarizes the notes payable scheduled principal repayments subsequent to July 31, 2021 (in thousands): Fiscal Year Scheduled Payments 2022 $ — 2023 929 2024 5,498 Thereafter — Total $ 6,427 |
REVENUES
REVENUES | 3 Months Ended |
Jul. 31, 2021 | |
REVENUES | |
REVENUES | (7) REVENUES Land sale revenues Other revenues Three Months ended July 31, 2021 2020 Oil and gas royalties $ 135 $ 11 Public improvement district reimbursements 309 175 Private infrastructure reimbursement covenants 52 133 Miscellaneous other revenues 410 400 $ 906 $ 719 Refer to Note 7 to the consolidated financial statements contained in the 2021 Form 10-K for additional detail about each category of Other revenues. Miscellaneous other revenues for the three months ended July 31, 2021 primarily consist of rent received from a tenant at a building in Palm Coast, Florida, payments for impact fee credits, a non-refundable option payment and sale of equipment. Miscellaneous other revenues for the three months ended July 31, 2020 primarily consist of payments for impact fee credits and rent received from a tenant at a building in Palm Coast, Florida. Major customers |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 3 Months Ended |
Jul. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
GENERAL AND ADMINISTRATIVE EXPENSES | (8) GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses consist of Three Months ended July 31, 2021 2020 Land development $ 584 $ 718 Homebuilding 187 — Corporate 417 726 $ 1,188 $ 1,444 |
BENEFIT PLANS
BENEFIT PLANS | 3 Months Ended |
Jul. 31, 2021 | |
BENEFIT PLANS | |
BENEFIT PLANS | (9) BENEFIT PLANS Pension plan Refer to Note 11 to the consolidated financial statements contained in the 2021 Form 10-K for detail regarding the Company’s defined benefit pension plan. The Company recognizes the known changes in the funded status of the pension plan in the period in which the changes occur through other comprehensive income, net of the related deferred income tax effect. The Company recorded, net of tax, other comprehensive income of $66,000 and $90,000 during the three months ended July 31, 2021 and July 31, 2020 to account for the net effect of changes to the unfunded portion of pension liability. The Company funds the pension plan in compliance with IRS funding requirements. The Company did not make any contributions to the pension plan during the three months ended July 31, 2021 or July 31, 2020. Equity compensation plan Refer to Note 11 to the consolidated financial statements contained in the 2021 Form 10-K for detail regarding the AMREP Corporation 2016 Equity Compensation Plan (the “Equity Plan”). The summary of the restricted share award activity during the three months ended July 31, 2021 and July 31, 2020 presented below represents the maximum number of shares that could become vested after these dates: Number of Restricted share awards Shares Non-vested as of April 30, 2021 29,000 Granted during the three months ended July 31, 2021 13,000 Vested during the three months ended July 31, 2021 (20,500) Forfeited during the three months ended July 31, 2021 — Non-vested as of July 31, 2021 21,500 The Company recognized non-cash compensation expense related to the vesting of restricted shares of common stock net of forfeitures of $16,000 and $18,000 during the three months ended July 31, 2021 and July 31, 2020. As of July 31, 2021 and July 31, 2020, there was $167,000 and $94,000 of unrecognized compensation expense related to restricted shares of common stock previously issued under the Equity Plan which had not vested as of those dates, which is expected to be recognized over the remaining vesting term not to exceed three years. Director compensation non-cash expense, which is recognized for the expected annual grant of deferred common share units to non-employee members of the Company’s Board of Directors ratably over the director’s service in office during the calendar year, was $23,000 and $22,000 during the three months ended July 31, 2021 and July 31, 2020. As of July 31, 2021 and July 31, 2020, there was $53,000 and $62,000 of accrued compensation expense related to the deferred stock units expected to be issued in December 2021. |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Jul. 31, 2021 | |
OTHER INCOME. | |
OTHER INCOME | (10) OTHER INCOME Other income for the three months ended July 31, 2021 consisted of $185,000 received in connection with a bankruptcy of a warranty provider and $45,000 of debt forgiveness with respect to the note payable identified as “Lavender Fields – acquisition” in Note 6. Other income for the three months ended July 31, 2020 consisted of a settlement payment of $650,000 from a former business segment (refer to Note 3 to the consolidated financial statements contained in the 2021 Form 10-K for detail regarding the settlement agreement). |
INFORMATION ABOUT THE COMPANY'S
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | 3 Months Ended |
Jul. 31, 2021 | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | (11) INFORMATION ABOUT THE COMPANY’S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS The following tables set forth summarized data relative to the industry segments in which the Company operated for the periods indicated (in thousands): Land Development Homebuilding Corporate Consolidated Three months ended July 31, 2021 (a) Revenues $ 8,461 $ 1,950 $ 96 $ 10,507 Net income (loss) 1,807 178 (348) 1,637 Provision for income taxes 318 44 27 389 Interest income, net (b) — — 1 1 Depreciation — — 104 104 EBITDA (c) $ 2,125 $ 222 $ (216) $ 2,131 Capital expenditures $ — $ 1 $ — $ 1 Total assets as of July 31, 2021 $ 86,590 $ 2,566 $ 11,947 $ 101,103 Three months ended July 31, 2020 (a) Revenues $ 3,856 $ — $ 350 $ 4,206 Net income (loss) 706 (86) (27) 593 Provision (benefit) for income taxes 14 (27) 159 146 Interest income, net (b) 2 — 4 6 Depreciation 5 — 124 129 EBITDA (c) $ 727 $ (113) $ 260 $ 874 Capital expenditures $ — $ — $ — $ — Total assets as of July 31, 2020 $ 76,232 $ — $ 23,759 $ 99,991 (a) Revenue and net income information for the land development business segment include amounts classified as home sale revenues, home sale cost of revenues and other revenues in the accompanying consolidated statements of operations. For example, revenues and cost of revenues in the land development business segment include an allocation of home sales revenues and home sales cost of revenues attributable to the market value of land transferred from the land development business segment to the homebuilding business segment. Revenue and net income information for the homebuilding business segment include amounts classified as other revenues in the accompanying consolidated statements of operations. Corporate is net of intercompany eliminations. (b) Interest expense (income), net excludes inter-segment interest expense (income) that is eliminated in consolidation. (c) The Company uses EBITDA (which the Company defines as income (loss) before net interest income, income taxes, depreciation and amortization, and non-cash impairment charges) in addition to net income (loss) as a key measure of profit or loss for segment performance and evaluation purposes. Prior to July 31, 2020, the Company operated in primarily one business segment: the real estate business. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | |
New Accounting Pronouncements | New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes There are no other new accounting standards or updates to be adopted that the Company currently believes might have a significant impact on its consolidated financial statements. |
REAL ESTATE INVENTORY (Tables)
REAL ESTATE INVENTORY (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
REAL ESTATE INVENTORY | |
Schedule of Inventory Real Estate | Real estate inventory consists of (in thousands): July 31, April 30, 2021 2021 Land held for development or sale in New Mexico $ 55,640 $ 49,918 Land held for development or sale in Colorado 3,997 3,975 Homebuilding finished inventory 214 417 Homebuilding construction in process 1,447 1,279 $ 61,298 $ 55,589 |
INVESTMENT ASSETS, NET (Tables)
INVESTMENT ASSETS, NET (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
INVESTMENT ASSETS, NET | |
Schedule of investment assets | Investment assets, net consist of (in thousands): July 31, April 30, 2021 2021 Land held for long-term investment $ 9,775 $ 9,775 Buildings 10,003 10,003 Less accumulated depreciation (6,299) (6,196) Buildings, net 3,704 3,807 $ 13,479 $ 13,582 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
OTHER ASSETS | |
Schedule of other assets | Other assets consist of (in thousands): July 31, April 30, 2021 2021 Prepaid expenses $ 501 $ 324 Receivables 30 37 Right-of-use assets associated with leases of office facilities 60 84 Other assets 172 172 Property and equipment 222 222 Less accumulated depreciation (194) (194) Property and equipment, net 28 28 $ 791 $ 645 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of (in thousands): July 31, April 30, 2021 2021 Real estate operations Accrued expenses $ 536 $ 658 Trade payables 1,100 1,377 Real estate customer deposits 1,595 1,769 3,231 3,804 Corporate operations 469 654 $ 3,700 $ 4,458 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
NOTES PAYABLE | |
Schedule of notes payable | Notes payable, net consist of (in thousands): July 31, April 30, 2021 2021 Real estate notes payable $ 6,427 $ 3,482 Unamortized debt issuance costs (50) (34) $ 6,377 $ 3,448 |
Summary of present information on the Company's notes payable in effect | The following tables present information on the Company’s notes payable in effect during the three months ended July 31, 2021 (dollars in thousands): Principal Amount Available for Outstanding Principal Borrowing Principal Amount Repayments July 31, July 31, April 30, Three Months ended Loan Identifier 2021 2021 2021 July 31, 2021 Revolving Line of Credit $ 4,000 $ — $ — $ — Lomas Encantadas U2B P3 — — 410 1,770 Hawk Site U37 1,462 — — — Hawk Site U23 U40 2,670 30 30 — Lavender Fields – acquisition — — 1,749 1,703 Lavender Fields – development 2,194 899 1,293 394 La Mirada 1,877 5,498 — — $ 6,427 $ 3,482 Capitalized Interest Mortgaged Property and Fees Interest Rate Book Value Three Months ended Loan Identifier July 31, 2021 July 31, 2021 July 31, 2021 Revolving Line of Credit 3.75 % $ 1,690 $ — Lomas Encantadas U2B P3 3.75 % 3,363 10 Hawk Site U37 4.50 % 2,982 — Hawk Site U23 U40 3.75 % 3,956 30 Lavender Fields – development 3.75 % 6,530 11 La Mirada 3.75 % 7,835 22 |
Schedule of scheduled principal repayments subsequent to reporting date | The following table summarizes the notes payable scheduled principal repayments subsequent to July 31, 2021 (in thousands): Fiscal Year Scheduled Payments 2022 $ — 2023 929 2024 5,498 Thereafter — Total $ 6,427 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
REVENUES | |
Schedule of other revenues | Other revenues Three Months ended July 31, 2021 2020 Oil and gas royalties $ 135 $ 11 Public improvement district reimbursements 309 175 Private infrastructure reimbursement covenants 52 133 Miscellaneous other revenues 410 400 $ 906 $ 719 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of components of general and administrative expenses | General and administrative expenses consist of Three Months ended July 31, 2021 2020 Land development $ 584 $ 718 Homebuilding 187 — Corporate 417 726 $ 1,188 $ 1,444 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
BENEFIT PLANS | |
Schedule of restricted share award activity | Number of Restricted share awards Shares Non-vested as of April 30, 2021 29,000 Granted during the three months ended July 31, 2021 13,000 Vested during the three months ended July 31, 2021 (20,500) Forfeited during the three months ended July 31, 2021 — Non-vested as of July 31, 2021 21,500 |
INFORMATION ABOUT THE COMPANY_2
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | |
Summary of data relative to the industry segments in which the Company operated | The following tables set forth summarized data relative to the industry segments in which the Company operated for the periods indicated (in thousands): Land Development Homebuilding Corporate Consolidated Three months ended July 31, 2021 (a) Revenues $ 8,461 $ 1,950 $ 96 $ 10,507 Net income (loss) 1,807 178 (348) 1,637 Provision for income taxes 318 44 27 389 Interest income, net (b) — — 1 1 Depreciation — — 104 104 EBITDA (c) $ 2,125 $ 222 $ (216) $ 2,131 Capital expenditures $ — $ 1 $ — $ 1 Total assets as of July 31, 2021 $ 86,590 $ 2,566 $ 11,947 $ 101,103 Three months ended July 31, 2020 (a) Revenues $ 3,856 $ — $ 350 $ 4,206 Net income (loss) 706 (86) (27) 593 Provision (benefit) for income taxes 14 (27) 159 146 Interest income, net (b) 2 — 4 6 Depreciation 5 — 124 129 EBITDA (c) $ 727 $ (113) $ 260 $ 874 Capital expenditures $ — $ — $ — $ — Total assets as of July 31, 2020 $ 76,232 $ — $ 23,759 $ 99,991 (a) Revenue and net income information for the land development business segment include amounts classified as home sale revenues, home sale cost of revenues and other revenues in the accompanying consolidated statements of operations. For example, revenues and cost of revenues in the land development business segment include an allocation of home sales revenues and home sales cost of revenues attributable to the market value of land transferred from the land development business segment to the homebuilding business segment. Revenue and net income information for the homebuilding business segment include amounts classified as other revenues in the accompanying consolidated statements of operations. Corporate is net of intercompany eliminations. (b) Interest expense (income), net excludes inter-segment interest expense (income) that is eliminated in consolidation. (c) The Company uses EBITDA (which the Company defines as income (loss) before net interest income, income taxes, depreciation and amortization, and non-cash impairment charges) in addition to net income (loss) as a key measure of profit or loss for segment performance and evaluation purposes. |
REAL ESTATE INVENTORY (Details)
REAL ESTATE INVENTORY (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Inventory Real Estate [Line Items] | ||
Homebuilding finished inventory | $ 214 | $ 417 |
Homebuilding construction in process | 1,447 | 1,279 |
Real estate inventory | 61,298 | 55,589 |
New Mexico | ||
Inventory Real Estate [Line Items] | ||
Land held for development or sale | 55,640 | 49,918 |
Colorado | ||
Inventory Real Estate [Line Items] | ||
Land held for development or sale | $ 3,997 | $ 3,975 |
INVESTMENT ASSETS, NET (Details
INVESTMENT ASSETS, NET (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
INVESTMENT ASSETS, NET | |||
Land held for long-term investment | $ 9,775,000 | $ 9,775,000 | |
Buildings | 10,003,000 | 10,003,000 | |
Less accumulated depreciation | (6,299,000) | (6,196,000) | |
Buildings, net | 3,704,000 | 3,807,000 | |
Total | 13,479,000 | $ 13,582,000 | |
Depreciation on buildings | $ 103,000 | $ 105,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
OTHER ASSETS | ||
Prepaid expenses | $ 501 | $ 324 |
Receivables | 30 | 37 |
Right-of-use assets associated with leases of office facilities | 60 | 84 |
Other assets | 172 | 172 |
Property and equipment | 222 | 222 |
Less accumulated depreciation | (194) | (194) |
Property, plant and equipment, net | 28 | 28 |
Other Assets | $ 791 | $ 645 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Right-of-use assets associated with leases of office facilities | $ 60,000 | $ 84,000 | |
Property, Plant and Equipment | |||
Right-of-use assets associated with leases of office facilities | 24,000 | $ 26,000 | |
Right of use assets | |||
Depreciation expense associated with property and equipment | $ 1,000 | $ 7,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Total | $ 3,700 | $ 4,458 |
Real estate operations | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Accrued expenses | 536 | 658 |
Trade payables | 1,100 | 1,377 |
Real estate customer deposits | 1,595 | 1,769 |
Total | 3,231 | 3,804 |
Corporate operations | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Total | $ 469 | $ 654 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
NOTES PAYABLE: | ||
Notes Payable | $ 6,377 | $ 3,448 |
Real estate notes payable [Member] | ||
NOTES PAYABLE: | ||
Notes Payable | 6,427 | 3,482 |
Unamortized debt issuance costs [Member] | ||
NOTES PAYABLE: | ||
Notes Payable | $ (50) | $ (34) |
NOTES PAYABLE - Company's Finan
NOTES PAYABLE - Company's Financing Arrangements (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Apr. 30, 2021 | |
Line of Credit Facility [Line Items] | ||
Outstanding Principal Amount | $ 6,427,000 | $ 3,482,000 |
Revolving Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 4,000,000 | |
Outstanding Principal Amount | 0 | 0 |
Principal Repayments | $ 0 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 1,690,000 | |
Capitalized Interest and Fees | 0 | |
Lomas Encantadas U2B P3 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 0 | |
Outstanding Principal Amount | 0 | 410,000 |
Principal Repayments | $ 1,770,000 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 3,363,000 | |
Capitalized Interest and Fees | 10,000 | |
Hawk Site U37 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 1,462,000 | |
Outstanding Principal Amount | 0 | 0 |
Principal Repayments | $ 0 | |
Interest Rate | 4.50% | |
Mortgaged Property Book Value | $ 2,982,000 | |
Capitalized Interest and Fees | 0 | |
Hawk Site U23 U40 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 2,670,000 | |
Outstanding Principal Amount | 30,000 | 30,000 |
Principal Repayments | $ 0 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 3,956,000 | |
Capitalized Interest and Fees | 30,000 | |
Lavender Fields - acquisition | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 0 | |
Outstanding Principal Amount | 0 | 1,749,000 |
Principal Repayments | 1,703,000 | |
Decrease in outstanding principal amount | 45,000 | |
Lavender Fields - development | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 2,194,000 | |
Outstanding Principal Amount | 899,000 | 1,293,000 |
Principal Repayments | $ 394,000 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 6,530,000 | |
Capitalized Interest and Fees | 11,000 | |
La Mirada | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 1,877,000 | |
Outstanding Principal Amount | 5,498,000 | $ 0 |
Principal Repayments | $ 0 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 7,835,000 | |
Capitalized Interest and Fees | $ 22,000 |
NOTES PAYABLE - Principal repay
NOTES PAYABLE - Principal repayments (Details) $ in Thousands | Jul. 31, 2021USD ($) |
NOTES PAYABLE | |
2022 | $ 0 |
2023 | 929 |
2024 | 5,498 |
Thereafter | 0 |
Total | $ 6,427 |
REVENUES - Other revenues (Deta
REVENUES - Other revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Other revenues | ||
Oil and gas royalties | $ 135 | $ 11 |
Public improvement district reimbursements | 309 | 175 |
Private infrastructure reimbursement covenants | 52 | 133 |
Miscellaneous other revenues | 410 | 400 |
Other Revenue, Net | $ 906 | $ 719 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021USD ($)customer | Jul. 31, 2020USD ($)customer | |
Property, Plant and Equipment [Line Items] | ||
Revenues | $ 10,507 | $ 4,206 |
Customer outstanding receivables | 0 | 0 |
Public reimbursement | 309 | 175 |
Royalties | 135 | 11 |
Customer A | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | 4,200,000 | 1,900,000 |
Customer B | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | $ 1,700,000 | 1,000,000 |
Customer C | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | $ 433,000 | |
Land sale revenues | ||
Property, Plant and Equipment [Line Items] | ||
Number of customers | customer | 3 | 4 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | $ 1,188 | $ 1,444 |
Land Development | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | 584 | 718 |
Homebuilding | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | 187 | 0 |
Corporate operations | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | $ 417 | $ 726 |
BENEFIT PLANS - Additional info
BENEFIT PLANS - Additional information (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation, Total | $ 16,000 | $ 40,000 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 66,000 | 90,000 | |
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | 53,000 | 62,000 | |
Board of Directors Chairman [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Non Cash Director Fee Compensation | 23,000 | 22,000 | |
Equity Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation, Total | 16,000 | 18,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 167,000 | $ 94,000 | |
Restricted Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 20,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 21,500 | 29,000 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - Restricted Stock [Member] | 3 Months Ended |
Jul. 31, 2021shares | |
Number of Shares | |
Non-vested at the beginning | 29,000 |
Granted | 13,000 |
Vested | (20,500) |
Forfeited | 0 |
Non-vested at the end | 21,500 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Other Nonoperating Income | $ 230,000 | $ 650,000 |
Bankruptcy of a warranty provider | ||
Other Nonoperating Income | 185,000 | |
Settlement Agreement | ||
Other Nonoperating Income | $ 650,000 | |
Forgiveness of Debt [Member] | ||
Other Nonoperating Income | $ 45,000 |
INFORMATION ABOUT THE COMPANY_3
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 10,507 | $ 4,206 | |
Net income (loss) | 1,637 | 593 | |
Provision (benefit) for income taxes | 389 | 146 | |
Interest income, net | 1 | 6 | |
Depreciation | 104 | 129 | |
EBITDA | 2,131 | 874 | |
Capital expenditures | 1 | 0 | |
Total assets | 101,103 | 99,991 | $ 97,366 |
Land Development | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 8,461 | 3,856 | |
Net income (loss) | 1,807 | 706 | |
Provision (benefit) for income taxes | 318 | 14 | |
Interest income, net | 0 | 2 | |
Depreciation | 0 | 5 | |
EBITDA | 2,125 | 727 | |
Capital expenditures | 0 | 0 | |
Total assets | 86,590 | 76,232 | |
Homebuilding | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 1,950 | 0 | |
Net income (loss) | 178 | (86) | |
Provision (benefit) for income taxes | 44 | (27) | |
Interest income, net | 0 | 0 | |
Depreciation | 0 | 0 | |
EBITDA | 222 | (113) | |
Capital expenditures | 1 | 0 | |
Total assets | 2,566 | 0 | |
Corporate operations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 96 | 350 | |
Net income (loss) | (348) | (27) | |
Provision (benefit) for income taxes | 27 | 159 | |
Interest income, net | 1 | 4 | |
Depreciation | 104 | 124 | |
EBITDA | (216) | 260 | |
Capital expenditures | 0 | 0 | |
Total assets | $ 11,947 | $ 23,759 |