Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Jul. 18, 2022 | Oct. 29, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-4702 | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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, 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 | 5,254,909 | ||
Title of 12(b) Security | Common Stock $0.10 par value | ||
Trading Symbol | AXR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 53,336,749 | ||
Auditor Name | Marcum LLP | ||
Auditor Firm ID | 688 | ||
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 15,721,000 | $ 24,801,000 |
Real estate inventory | 67,249,000 | 55,589,000 |
Investment assets, net | 9,017,000 | 13,582,000 |
Other assets | 1,882,000 | 645,000 |
Deferred income taxes, net | 958,000 | 2,749,000 |
Prepaid pension costs | 90,000 | 0 |
TOTAL ASSETS | 94,917,000 | 97,366,000 |
Liabilities: | ||
Accounts payable and accrued expenses | 6,077,000 | 4,458,000 |
Notes payable, net | 2,030,000 | 3,448,000 |
Taxes payable, net | 3,648,000 | 95,000 |
Accrued pension costs | 0 | 476,000 |
TOTAL LIABILITIES | 11,755,000 | 8,477,000 |
Shareholders' Equity: | ||
Common stock, $.10 par value; shares authorized - 20,000,000; shares issued - 5,240,309 at April 30, 2022 and 7,323,370 at April 30, 2021 | 524,000 | 730,000 |
Capital contributed in excess of par value | 32,383,000 | 45,072,000 |
Retained earnings | 54,828,000 | 47,710,000 |
Accumulated other comprehensive loss, net | (4,573,000) | (4,623,000) |
TOTAL SHAREHOLDERS' EQUITY | 83,162,000 | 88,889,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 94,917,000 | $ 97,366,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2022 | 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 | 5,240,309 | 7,323,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
REVENUES: | ||
Total revenues | $ 62,479,000 | $ 40,069,000 |
COSTS AND EXPENSES: | ||
General and administrative expenses | 5,354,000 | 5,420,000 |
Total costs and expenses | 41,176,000 | 31,022,000 |
Operating income | 21,303,000 | 9,047,000 |
Interest income (expense), net | 2,000 | (40,000) |
Other income | 261,000 | 1,028,000 |
Income before income taxes | 21,566,000 | 10,035,000 |
Provision for income taxes | 5,704,000 | 2,643,000 |
Net income | $ 15,862,000 | $ 7,392,000 |
Basic earnings per share | $ 2.21 | $ 0.95 |
Diluted earnings per share | $ 2.21 | $ 0.95 |
Weighted average number of common shares outstanding - basic | 7,170 | 7,743 |
Weighted average number of common shares outstanding - diluted | 7,193 | 7,773 |
Land sale revenues | ||
REVENUES: | ||
Total revenues | $ 38,564,000 | $ 25,175,000 |
COSTS AND EXPENSES: | ||
Cost of revenues | 21,198,000 | 17,296,000 |
Home sale revenues | ||
REVENUES: | ||
Total revenues | 13,565,000 | 3,079,000 |
COSTS AND EXPENSES: | ||
Cost of revenues | 10,237,000 | 2,584,000 |
Building sales and other revenues | ||
REVENUES: | ||
Total revenues | 10,350,000 | 11,815,000 |
COSTS AND EXPENSES: | ||
Cost of revenues | $ 4,387,000 | $ 5,722,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 15,862,000 | $ 7,392,000 |
Other comprehensive income, net of tax: | ||
Decrease in pension liability | 75,000 | 2,655,000 |
Income tax effect | (25,000) | (811,000) |
Decrease in pension liability, net of tax | 50,000 | 1,844,000 |
Other comprehensive income | 50,000 | 1,844,000 |
Total comprehensive income | $ 15,912,000 | $ 9,236,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock | Capital Contributed in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, Common | 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 | |||||
Issuance of deferred common stock units | $ 0 | 90,000 | 0 | 0 | 0 | 90,000 |
Issuance of deferred common share units (in shares) | 0 | |||||
Issuance of common stock settled from deferred common share units | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock settled from deferred common share units (in shares) | 12 | |||||
Repurchase of common stock | $ (83,000) | (5,033,000) | 0 | 0 | 0 | (5,116,000) |
Repurchase of common stock (in shares) | (831) | |||||
Retirement of treasury stock | $ (24,000) | (1,360,000) | (2,831,000) | 0 | 4,215,000 | 0 |
Retirement of treasury stock (in shares) | (225) | |||||
Net income | $ 0 | 0 | 7,392,000 | 0 | 0 | 7,392,000 |
Other comprehensive income | 0 | 0 | 0 | 1,844,000 | 0 | 1,844,000 |
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 | |||||
Issuance of deferred common stock units | $ 0 | 90,000 | 0 | 0 | 0 | 90,000 |
Issuance of deferred common share units (in shares) | 0 | |||||
Repurchase of common stock | $ (209,000) | (12,951,000) | (8,744,000) | 0 | 0 | (21,904,000) |
Repurchase of common stock (in shares) | (2,096) | |||||
Reclassification of common stock settled from deferred common share units | $ 2,000 | (2,000) | 0 | 0 | 0 | 0 |
Reclassification of common stock settled from deferred common share units (in shares) | 0 | |||||
Issuance of option to purchase common stock | $ 0 | 25,000 | 0 | 0 | 0 | 25,000 |
Net income | 0 | 0 | 15,862,000 | 0 | 0 | 15,862,000 |
Other comprehensive income | 0 | 0 | 0 | 50,000 | 0 | 50,000 |
Balance at Apr. 30, 2022 | $ 524,000 | $ 32,383,000 | $ 54,828,000 | $ (4,573,000) | $ 0 | $ 83,162,000 |
Balance (in shares) at Apr. 30, 2022 | 5,240 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 15,862 | $ 7,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 225 | 554 |
Amortization of debt issuance costs | 84 | 59 |
Non-cash credits and charges: | ||
Stock-based compensation | 217 | 132 |
Deferred income tax provision | 1,766 | 2,494 |
Net periodic pension cost | (490) | (36) |
Gain on debt forgiveness | (45) | (300) |
Changes in assets and liabilities: | ||
Real estate inventory and investment assets | (7,295) | 2,380 |
Other assets | 113 | 339 |
Accounts payable and accrued expenses | 1,486 | 1,290 |
Taxes payable | 3,553 | 152 |
Accrued pension costs | 0 | (1,847) |
Total adjustments | (386) | 5,217 |
Net cash provided by operating activities | 15,476 | 12,609 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from corporate-owned life insurance policy | 92 | 0 |
Capital expenditures | (1,287) | (5) |
Net cash used in investing activities | (1,195) | (5) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from debt financing | 6,857 | 6,611 |
Principal debt payments | (8,264) | (6,680) |
Payments for debt issuance costs | (50) | (120) |
Repurchase of common stock | (21,904) | (5,116) |
Net cash used in financing activities | (23,361) | (5,305) |
(Decrease) increase in cash, cash equivalents and restricted cash | (9,080) | 7,299 |
Cash, cash equivalents and restricted cash, beginning of year | 24,801 | 17,502 |
Cash, and cash equivalents, end of year | 15,721 | 24,801 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes refunded, net | 3 | 153 |
Interest paid | 203 | 120 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 133 | $ 43 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | 12 Months Ended |
Apr. 30, 2022 | |
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 Organization and principles of consolidation The consolidated financial statements include the accounts of AMREP Corporation, an Oklahoma corporation, and its subsidiaries (collectively, the “Company”). The Company, through its subsidiaries, is primarily engaged in two business segments: land development and homebuilding. The Company has no foreign sales. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated balance sheets are presented in an unclassified format since the Company has substantial operations in the real estate industry and its operating cycle is greater than one year. Certain 2021 balances in these financial statements have been reclassified to conform to the current year presentation with no effect on the net income or loss or shareholders’ equity. Fiscal year The Company’s fiscal year ends on April 30. All references to 2022 and 2021 mean the fiscal years ended April 30, 2022 and 2021, unless the context otherwise indicates. Revenue recognition The Company accounts for land sale revenues, home sale revenues and building sales and other revenues in accordance with Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Land sale revenues Land sale cost of revenues includes all direct acquisition costs and other costs specifically identified with the property, including pre-acquisition costs and capitalized real estate taxes and interest, and an allocation of certain common development costs associated with the entire project. Common development costs include the installation of utilities and roads, and may be based upon estimates of cost to complete. The allocation of costs is based on the estimated relative sales value of the individual parcels of land being sold to the total expected sales value for the unsold parcels of land in the applicable portion of the subdivision. Estimates and cost allocations are reviewed on a regular basis until a project is substantially completed, and are revised and reallocated as necessary on the basis of current estimates. Home sale revenues Forfeited customer deposits for homes are recognized in home sale revenues in the period in which the Company determines that the customer will not complete the purchase of the home and the Company has the right to retain the deposit. In order to promote sales of homes, the Company may offer home buyers sales incentives. These incentives vary by type and amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sale revenues. Home construction and related costs are capitalized as incurred within real estate inventory under the specific identification method on the consolidated balance sheet and are charged to home sale cost of revenues on the consolidated statement of operations when the related home is sold. Building sales and other revenues Sales of buildings and other land consist of building sales in New Mexico and Florida. Revenues from these building sales are recognized when the parties are bound by the terms of a contract, consideration has been exchanged, title and other attributes of ownership have been conveyed to the buyer by means of a closing and the Company is not obligated to perform further significant development of the specific property sold. In general, the Company’s performance obligation for each of these building sales is fulfilled upon the delivery of the property, which generally coincides with the receipt of cash consideration from the counterparty. Building sales and other cost of revenues includes all direct acquisition costs and other costs specifically identified with the property, including pre-acquisition and acquisition costs, if applicable, closing and selling costs and construction costs. Oil and gas royalties are recognized at the time of receipt by the Company as such amounts are unknown with any degree of certainty prior to receipt. Infrastructure reimbursements include amounts received from a public improvement district and private infrastructure reimbursement covenants and the payment for impact fee credits. Such amounts are recognized at the time of receipt by the Company as such amounts are unknown with any degree of certainty prior to receipt. Miscellaneous other revenues primarily include rental payments and additional rent from tenants pursuant to leases with respect to property or buildings of the Company. Base rental payments are recognized as revenue monthly over the term of the lease. Additional rent related to the reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses is recognized as revenue in the period the expenses are incurred. Cash, and cash equivalents Cash equivalents consist of highly liquid investments that have an original maturity of ninety days or less when purchased and are readily convertible into cash. Restricted cash consists of cash deposits with a bank that are restricted due to subdivision improvement agreements with a governmental authority. The Company did not have any restricted cash as of April 30, 2022 or April 30, 2021. Long-lived assets Long-lived assets consist of real estate inventory and investment assets and are accounted for in accordance with Accounting Standards Codification (“ASC”) 360-10. Real estate inventory : Real estate inventory includes land and improvements on land held for future development or sale. The cost basis of the land and improvements includes all direct acquisition costs including development costs, certain amenities, capitalized interest, capitalized real estate taxes and other costs. Interest and real estate taxes are not capitalized unless active development is underway. Real estate inventory held for future development or sale is stated at accumulated cost and is evaluated and reviewed for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Investment assets, net : Investment assets, net consist of (i) investment land, which represents vacant, undeveloped land not held for development or sale in the normal course of business, and (ii) real estate assets that are leased or intended to be leased to third parties. Investment assets are stated at the lower of cost or net realizable value. Depreciation of investment assets (other than land) is provided principally by the straight-line method at various rates calculated to amortize the book values of the respective assets over their estimated useful lives, which generally are 10 to 40 years for buildings and improvements. Land is not subject to depreciation. Impairment of long-lived assets : Long-lived assets are evaluated and tested for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Asset impairment tests are based upon the intended use of assets, expected future cash flows and estimates of fair value of assets. The evaluation of operating asset groups includes an estimate of future cash flows on an undiscounted basis using estimated revenue streams, operating margins and general and administrative expenses. The estimation process involved in determining if assets have been impaired and in the determination of estimated future cash flows is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. If the excess of undiscounted cash flows over the carrying value of a project is small, there is a greater risk of future impairment and any resulting impairment charges could be material. Due to the subjective nature of the estimates and assumptions used in determining future cash flows, actual results could differ materially from current estimates and the Company may be required to recognize impairment charges in the future. Leases Right-of-use assets and lease liabilities are recorded on the balance sheet for all leases with an initial term over one year. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Right-of-use assets are classified within other assets and the corresponding lease liability is included in accounts payable and accrued expenses in the consolidated balance sheet. Share-based compensation The Company accounts for awards of restricted stock, stock options and deferred stock units in accordance with ASC 718-10, which requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). Compensation expense for awards of restricted stock, stock options and deferred stock units are based on the fair value of the awards at their grant dates. To estimate the grant-date fair value of stock options, the Company uses the Black-Scholes option-pricing model. The Black-Scholes model estimates the per share fair value of an option on its date of grant based on the following: the option’s exercise price; the price of the underlying stock on the date of grant; the estimated dividend yield; a “risk-free” interest rate; the estimated option term; and the expected volatility. For the “risk-free” interest rate, the Company uses a U.S. Treasury bond due in a number of years equal to the option’s expected term. To estimate expected volatility, the Company analyzes the historic volatility of the Company’s common stock. Income taxes Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities, and are measured by using currently enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. The Company provides a valuation allowance against deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. Earnings per share Basic earnings per share is based on the weighted average number of common shares outstanding during each year. Unvested restricted shares of common stock are not included in the computation of basic earnings per share, as they are considered contingently returnable shares. Unvested restricted shares of common stock are included in diluted earnings per share if they are dilutive. Deferred stock units are included in both basic and diluted earnings per share computations. Stock options are not included in the computation of basic earnings per share. Stock options are included in diluted earnings per share if they are not anti-dilutive and are in-the-money. Pension plan The Company recognizes the over-funded or under-funded status of its defined benefit pension plan as an asset or liability as of the date of the plan’s year-end statement of financial position and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. Comprehensive income Comprehensive income is defined as the change in equity during a period from transactions and other events from non-owner sources. Total comprehensive income is the total of net income or loss and other comprehensive income or loss that, for the Company, consists of the minimum pension liability net of the related deferred income tax effect. Management’s estimates and assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant judgments and estimates that affect the financial statements include, but are not limited to, (i) land sale cost of revenues calculations, which are based on land development budgets and estimates of costs to complete; (ii) cash flows, asset groupings and valuation assumptions in performing asset impairment tests of long-lived assets and assets held for sale; (iii) actuarially determined benefit obligations and other pension plan accounting and disclosures; (iv) risk assessment of uncertain tax positions; and (v) the determination of the recoverability of net deferred tax assets. The Company bases its significant estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ from these estimates. Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued 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 | 12 Months Ended |
Apr. 30, 2022 | |
REAL ESTATE INVENTORY | |
REAL ESTATE INVENTORY | (2) REAL ESTATE INVENTORY Real estate inventory consists of (in thousands): April 30, 2022 2021 Land held for development or sale in New Mexico $ 59,374 $ 49,918 Land held for development or sale in Colorado 3,434 3,975 Homebuilding finished inventory 1,135 417 Homebuilding construction in process 3,306 1,279 $ 67,249 $ 55,589 Land held for development or sale represents property located in areas that are planned to be developed or sold in the near term. A substantial majority of the Company’s real estate assets are located in Rio Rancho, New Mexico (“Rio Rancho”) and certain adjoining areas of Sandoval County, New Mexico. As a result of this geographic concentration, the Company has been and will be affected by changes in economic conditions in that region. Land held for development or sale in Colorado as of April 30, 2022 represents an approximately 160-acre property in Brighton, Colorado. Land held for development or sale in Colorado as of April 30, 2021 represents an approximately 160-acre property in Brighton, Colorado and an approximately 5-acre property in Parker, Colorado. Homebuilding finished inventory represents costs for residential homes that are completed and ready for sale. Homebuilding construction in process represents costs for residential homes being built. Interest and loan costs of $224,000 and real estate taxes of $28,000 were capitalized in real estate inventory for the year ending April 30, 2022. Interest and loan costs of $105,000 and real estate taxes of $29,000 were capitalized in real estate inventory for the year ending April 30, 2021. |
INVESTMENT ASSETS, NET
INVESTMENT ASSETS, NET | 12 Months Ended |
Apr. 30, 2022 | |
INVESTMENT ASSETS, NET | |
INVESTMENT ASSETS, NET | (3) INVESTMENT ASSETS, NET Investment assets, net consist of (in thousands): April 30, 2022 2021 Land held for long-term investment $ 9,017 $ 9,775 Buildings — 10,003 Less accumulated depreciation — (6,196) Buildings, net — 3,807 $ 9,017 $ 13,582 Land held for long-term investment represents property located in areas that are not planned to be developed in the near term and that has not been offered for sale in the normal course of business. As of April 30, 2021, buildings were comprised of a 143,000 square foot warehouse and office facility located in Palm Coast, Florida. During 2022, the Company sold this warehouse and office facility. Depreciation associated with buildings was $201,000 and $542,000 for 2022 and 2021. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Apr. 30, 2022 | |
OTHER ASSETS | |
OTHER ASSETS | (4) OTHER ASSETS Other assets consist of (in thousands): April 30, 2022 2021 Prepaid expenses $ 366 $ 324 Receivables 50 37 Right-of-use assets associated with leases of office facilities, net 118 84 Miscellaneous assets 81 172 Property 1,247 — Equipment 240 222 Less accumulated depreciation of property and equipment (220) (194) Property and equipment, net 1,267 28 $ 1,882 $ 645 Prepaid expenses as of April 30, 2022 primarily consist of insurance, stock compensation, real estate taxes and utility deposits. Prepaid expenses as of April 30, 2021 primarily consist of insurance, stock compensation, prepayments for office rent, broker’s commissions and security deposits. Amortized lease cost for right-of-use assets associated with the leases of office facilities was $70,000 and $18,000 for 2022 and 2021. In 2022, the Company acquired a 7,000 square foot office building in Rio Rancho from which its real estate business now operates. Depreciation expense associated with property and equipment was $24,000 and $11,000 for 2022 and 2021. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Apr. 30, 2022 | |
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): April 30, 2022 2021 Real estate operations Accrued expenses $ 1,238 $ 658 Trade payables 3,026 1,377 Real estate customer deposits 1,357 1,769 5,621 3,804 Corporate operations 456 654 $ 6,077 $ 4,458 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Apr. 30, 2022 | |
NOTES PAYABLE | |
NOTES PAYABLE | (6) NOTES PAYABLE Notes payable, net consist of (in thousands): April 30, 2022 2021 Real estate notes payable $ 2,030 $ 3,482 Unamortized debt issuance costs — (34) $ 2,030 $ 3,448 The following tables present information on the Company’s notes payable in effect as of April 30, 2022 (dollars in thousands): Principal Amount Available for Outstanding Principal New Borrowings Principal Amount Repayments April 30, April 30, Year ended Loan Identifier Lender 2022 2022 2021 April 30, 2022 Revolving Line of Credit BOKF $ 2,427 $ — $ — $ — La Mirada BOKF 1,877 2,030 — 3,468 $ 2,030 $ — Capitalized Interest Mortgaged Property and Fees Interest Rate Book Value Year ended April 30 Loan Identifier April 30, 2022 April 30, 2022 2022 2021 Scheduled Maturity Revolving Line of Credit 3.75 % $ 1,693 $ — $ — February 2024 La Mirada 3.75 % 8,269 193 — June 2024 As of April 30, 2022, 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. Additional information regarding each of the above notes payable is provided below. · Revolving Line of Credit ASW made certain representations and warranties in connection with this loan and is required to comply with various covenants, reporting requirements and other customary requirements for similar loans, including ASW and its subsidiaries having at least $3.0 million of unencumbered and unrestricted cash, cash equivalents and marketable securities in order to be entitled to advances under the loan. The loan documentation contains customary events of default for similar financing transactions, including: ASW’s failure to make principal, interest or other payments when due; the failure of ASW to observe or perform its covenants under the loan documentation; the representations and warranties of ASW being false; the insolvency or bankruptcy of ASW; and the failure of ASW to maintain a net worth of at least $32 million. Upon the occurrence and during the continuance of an event of default, BOKF may declare the outstanding principal amount and all other obligations under the loan immediately due and payable. ASW incurred customary costs and expenses and paid certain fees to BOKF in connection with the loan. ● La Mirada . In June 2021, Wymont LLC (“Wymont”), a subsidiary of the Company, acquired a 15 -acre property in Albuquerque, New Mexico comprising the La Mirada subdivision. In June 2021, Wymont entered into a Development Loan Agreement with BOKF. The Development Loan Agreement is evidenced by a Non-Revolving Line of Credit Promissory Note and is secured by a Mortgage, Security Agreement and Financing Statement, between Wymont and BOKF, with respect to the acquired property. Pursuant to a Guaranty Agreement entered into by ASW in favor of BOKF, ASW guaranteed Wymont’s obligations under each of the above agreements. BOKF has agreed to lend up to $7,375,000 to Wymont on a non-revolving line of credit basis to partially fund the acquisition and development of the acquired property. The outstanding principal amount of the loan may be prepaid at any time without penalty. Interest on the outstanding principal amount of the loan is payable monthly at the annual rate equal to the London Interbank Offered Rate for a thirty-day interest period plus a spread of 3.0% , adjusted monthly, subject to a minimum interest rate of 3.75% . Generally, BOKF is required to release the lien of its mortgage on any commercial lot within the acquired property upon Wymont making a principal payment equal to the net sales proceeds with respect to the sale of such lot. BOKF is required to release the lien of its mortgage on any residential lot within the acquired property upon Wymont making a principal payment equal to $60,600 per such released lot. Wymont and ASW made certain representations and warranties in connection with this loan and are required to comply with various covenants, reporting requirements and other customary requirements for similar loans. The loan documentation contains customary events of default for similar financing transactions, including: Wymont’s failure to make principal, interest or other payments when due; the failure of Wymont or ASW to observe or perform their respective covenants under the loan documentation; the representations and warranties of Wymont or ASW being false; the insolvency or bankruptcy of Wymont or ASW; and the failure of ASW to maintain a net worth of at least $32 million. Upon the occurrence and during the continuance of an event of default, BOKF may declare the outstanding principal amount and all other obligations under the loan immediately due and payable. Wymont incurred customary costs and expenses and paid certain fees to BOKF in connection with the loan. ● Letter of Credit and Loan Reserves . As of April 30, 2022, the Company had a letter of credit outstanding under its Revolving Line of Credit in the principal amount of $1,323,000 in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company. As of April 30, 2022, the Company had loan reserves outstanding under its note payable for La Mirada in the aggregate principal amount of $ 2,364,000 in favor of a municipality guarantying the completion of improvements in a subdivision being constructed by the Company. The amounts under the letter of credit and loan reserves are not reflected as outstanding principal in notes payable. The following table summarizes the notes payable scheduled principal repayments subsequent to April 30, 2022 (in thousands): Fiscal Year Scheduled Payments 2023 $ — 2024 — 2025 2,030 Total $ 2,030 The following table presents information on the Company’s notes payable in effect as of April 30, 2021 and terminated prior to April 30, 2022 (in thousands): Original Capitalized Interest Maximum Outstanding and Fees Available Principal Amount Year ended April 30 Loan Identifier Lender Principal Amount April 30, 2021 2022 2021 Lomas Encantadas U2B P3 BOKF $ 2,400 $ 410 $ 6 $ 30 Hawk Site U37 SLFCU 3,000 — — 7 Hawk Site U23 U40 BOKF 2,700 30 1 — Lavender Fields – acquisition Seller 1,838 1,749 — — Lavender Fields – development BOKF 3,750 1,293 23 — $ 3,482 Additional information regarding each of the above terminated notes payable is provided below: ● Lomas Encantadas U2B P3 . In September 2020, Lomas Encantadas Development Company LLC (“LEDC”), a subsidiary of the Company, entered into a Development Loan Agreement with BOKF. The Development Loan Agreement was evidenced by a Non-Revolving Line of Credit Promissory Note and was secured by a Mortgage, Security Agreement and Financing Statement, between LEDC and BOKF with respect to certain planned residential lots within the Lomas Encantadas subdivision located in Rio Rancho. Pursuant to a Guaranty Agreement entered into by ASW in favor of BOKF, ASW guaranteed LEDC's obligations under each of the above agreements. The loan was scheduled to mature in September 2023.The outstanding principal amount of the loan was prepaid without penalty and the loan was terminated in January 2022. ● Hawk Site U37 . In February 2020, Mountain Hawk East Development Company LLC (“MHEDC”), a subsidiary of the Company, entered into a Business Loan Agreement with Sandia Laboratory Federal Credit Union (“SLFCU”). The Business Loan Agreement was evidenced by a Promissory Note, and was secured by a Line of Credit Mortgage, between MHEDC and SLFCU, with respect to certain planned residential lots within the Hawk Site subdivision located in Rio Rancho. Pursuant to a Commercial Guaranty entered into by ASW in favor of SLFCU, ASW guaranteed MHEDC’s obligations under each of the above agreements. The loan was scheduled to mature in August 2022. The outstanding principal amount of the loan was prepaid without penalty in 2021 and the loan was terminated in October 2021. ● Hawk Site U23 U40 . In January 2021, Mountain Hawk West Development Company LLC (“MHWDC”), a subsidiary of the Company, entered into a Development Loan Agreement with BOKF. The Development Loan Agreement was evidenced by a Non-Revolving Line of Credit Promissory Note and was secured by a Mortgage, Security Agreement and Financing Statement, between MHWDC and BOKF, with respect to certain planned residential lots within the Hawk Site subdivision located in Rio Rancho. Pursuant to a Guaranty Agreement entered into by ASW in favor of BOKF, ASW guaranteed MHWDC’s obligations under each of the above agreements. The loan was scheduled to mature in July 2023.The outstanding principal amount of the loan was prepaid without penalty and the loan was terminated in April 2022. ● Lavender Fields . In June 2020, Lavender Fields, LLC (“LF”), a subsidiary of the Company, acquired 28 acres in Bernalillo County, New Mexico comprising the Meso AM subdivision, which has been developed into 82 finished residential lots. o Acquisition o Development |
REVENUES
REVENUES | 12 Months Ended |
Apr. 30, 2022 | |
REVENUES | |
REVENUES | (7) REVENUES Land sale revenues Home sale revenues Building sales and other revenues Year Ended April 30, 2022 2021 Sales of buildings and other land $ 8,439 $ 9,493 Oil and gas royalties 276 135 Infrastructure reimbursements 1,189 1,228 Miscellaneous other revenues 446 959 $ 10,350 $ 11,815 Sales of buildings and other land during 2022 consists of revenues from the sale of a 4,338 square foot, single tenant retail building in the La Mirada subdivision and from the sale of a 143,000 square foot warehouse and office facility located in Palm Coast, Florida. Sales of buildings and other land during 2021 consists of revenues from the sale of a 14,000 square foot, single tenant retail building in the Las Fuentes at Panorama Village subdivision in Rio Rancho and from the sale of a 61,000 square foot warehouse and office facility located in Palm Coast, Florida. The Company owns certain minerals and mineral rights in and under approximately 147 surface acres of land in Brighton, Colorado leased to a third party for as long as oil or gas is produced and marketed in paying quantities from the property or for additional limited periods of time if the lessee undertakes certain operations or makes certain de minimis shut-in royalty payments. The lessee has pooled various minerals and mineral rights, including the Company's minerals and mineral rights, for purposes of drilling and extraction. After applying the ownership and royalty percentages of the pooled minerals and mineral rights, the lessee is required to pay the Company a royalty on oil and gas produced from the pooled property of 1.42% of the proceeds received by the lessee from the sale of such oil and gas, and such royalty will be charged with 1.42% of certain post-production costs associated with such oil and gas. The Company owns certain minerals and mineral rights in and under approximately 55,000 surface acres of land in Sandoval County, New Mexico. The lease to a third party with respect to such mineral rights expired in 2021 and no drilling had commenced with respect to such mineral rights. The Company did not record any revenue in 2022 or 2021 related to this lease. The Company receives infrastructure reimbursements through a public improvement district and private infrastructure reimbursement covenants and the payment for impact fee credits. A portion of the Lomas Encantadas subdivision and a portion of the Enchanted Hills subdivision in Rio Rancho are subject to a public improvement district. The public improvement district reimburses the Company for certain on-site and off-site costs of developing the subdivisions by imposing a special levy on the real property owners within the district. The Company has accepted discounted prepayments of amounts due under the public improvement district. The Company instituted private infrastructure reimbursement covenants on a portion of the property in Hawk Site and in Lavender Fields. Similar to a public improvement district, the covenants are expected to reimburse the Company for certain on-site and off-site costs of developing the subject property by imposing a special levy on the real property owners subject to the covenants. The Company has accepted discounted prepayments of amounts due under the public improvement district. Miscellaneous other revenues for 2022 primarily consist of rent received from the tenant of the building in Palm Coast, Florida and tenants at a shopping center in Albuquerque, New Mexico, a non-refundable option payment and installation of telecommunications equipment in subdivisions. Miscellaneous other revenues for 2021 primarily consist of payments for rent received from the tenant of the buildings in Palm Coast, Florida and a tenant at a retail building in Rio Rancho and installation of telecommunications equipment in subdivisions. Major customers |
COST OF REVENUES
COST OF REVENUES | 12 Months Ended |
Apr. 30, 2022 | |
COST OF REVENUES | |
COST OF REVENUES | (8) COST OF REVENUES Land sale cost of revenues includes all direct acquisition costs and other costs specifically identified with the property and an allocation of certain common development costs associated with the entire project. Home sale cost of revenues includes costs for residential homes that were sold. Building sales and other cost of revenues for 2022 consisted of expenses associated with the sale of a 4,338 square foot, single tenant retail building in the La Mirada subdivision and the sale of a 143,000 square foot warehouse and office facility located in Palm Coast, Florida. Building sales and other cost of revenues for 2021 consisted of expenses associated with the sale of a 14,000 square foot, single tenant retail building in the Las Fuentes at Panorama Village subdivision in Rio Rancho and the sale of a 61,000 square foot warehouse and office facility located in Palm Coast, Florida. |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Apr. 30, 2022 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
GENERAL AND ADMINISTRATIVE EXPENSES | (9) GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses consist of (in thousands): Year Ended April 30, 2022 2021 Land development $ 3,258 $ 2,532 Homebuilding 878 626 Corporate 1,218 2,262 $ 5,354 $ 5,420 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Apr. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | (10) FAIR VALUE MEASUREMENTS The FASB’s accounting guidance defines fair value and establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The FASB’s guidance classifies the inputs to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs for the asset or liability are unobservable and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. The fair value measurement level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques need to maximize the use of observable inputs and minimize the use of unobservable inputs. There were no transfers between Levels 1, 2 or 3 during 2022 or 2021. The Financial Instruments Topic of the FASB Accounting Standards Codification requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. The Topic excludes all nonfinancial instruments from its disclosure requirements. Fair value is determined under the hierarchy discussed above. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions are used in estimating fair value disclosure for financial instruments: the carrying amounts of cash and cash equivalents and trade payables approximate fair value because of the short maturity of these financial instruments; and debt that bears variable interest rates indexed to prime or LIBOR also approximates fair value as it reprices when market interest rates change. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Apr. 30, 2022 | |
BENEFIT PLANS | |
BENEFIT PLANS | (11) BENEFIT PLANS Pension plan The Company has a defined benefit pension plan for which accumulated benefits were frozen and future service credits were curtailed as of March 1, 2004. Under generally accepted accounting principles, the Company’s defined benefit pension plan was overfunded as of April 30, 2022 by $90,000, with $18,054,000 of assets and $17,964,000 of liabilities, and was underfunded as of April 30, 2021 by $476,000, with $21,102,000 of assets and $21,578,000 of liabilities. The pension plan liabilities were determined using a weighted average discount interest rate of 3.97% per year as of April 30, 2022 and 2.48% per year as of April 30, 2021, which are based on the FTSE Pension Discount Curve as of such dates as it corresponds to the projected liability requirements of the pension plan. The pension plan is subject to minimum IRS contribution requirements, but these requirements can be satisfied by the use of the pension plan’s existing credit balance. No cash contributions are required during 2022. The Company made voluntary contributions to the pension plan of $1,847,000 during 2021. Pension assets and liabilities are measured at fair value (measured in accordance with the guidance described in Note 10) and are subject to fair value adjustment in certain circumstances (for example, when there is evidence of impairment). There were no impairments resulting in a change in fair value during 2022 and 2021. Net periodic pension cost for 2022 and 2021 was comprised of the following components (in thousands): Year Ended April 30, 2022 2021 Interest cost on projected benefit obligation $ 503 $ 504 Expected return on assets (1,535) (1,409) Plan expenses 150 340 Recognized net actuarial loss 392 529 Net periodic pension cost $ (490) $ (36) Assumptions used in determining net periodic pension cost and the benefit obligation were: Year Ended April 30, 2022 2021 Discount rate used to determine net periodic pension cost 2.48 % 2.29 % Discount rate used to determine pension benefit obligation 3.97 % 2.48 % Expected long-term rate of return on assets used for pension cost on assets 7.75 % 7.75 % The expected return on assets for the pension plan is based on management’s expectation of long-term average rates of return to be achieved by the underlying investment portfolio. In establishing this assumption, management considers historical and expected returns for the asset classes in which the pension plan is invested, as well as current economic and market conditions. The actuarial gain of $2,414,000 for the fiscal year ending April 30, 2022 consists of a gain from a change in discount rate gain of $2,360,000, other assumption losses of $76,000 and plan experience gains of $130,000. The following table sets forth changes in the pension plan’s benefit obligation and assets, and summarizes components of amounts recognized in the Company’s consolidated balance sheet (in thousands): April 30, 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 21,578 $ 23,274 Interest cost 503 504 Actuarial gain (2,414) (537) Benefits paid (1,703) (1,663) Benefit obligation at end of year $ 17,964 $ 21,578 Change in plan assets: Fair value of plan assets at beginning of year $ 21,102 $ 18,260 Actual return on plan assets (1,239) 2,808 Company contributions — 1,847 Benefits paid (1,703) (1,663) Plan expenses (106) (150) Fair value of plan assets at end of year $ 18,054 $ 21,102 Overfunded (underfunded) status $ 90 $ (476) The funded status of the pension plan is equal to the net liability recognized in the consolidated balance sheets. The following table summarizes the amounts recorded in accumulated other comprehensive loss, which have not yet been recognized as a component of net periodic pension costs (in thousands): Year Ended April 30, 2022 2021 Pretax accumulated comprehensive loss $ 8,350 $ 8,426 The following table summarizes the changes in accumulated other comprehensive loss related to the pension plan for the years ended April 30, 2022 and 2021 (in thousands): Pension Benefits Pretax Net of Tax Accumulated comprehensive loss, May 1, 2020 $ 11,082 $ 6,467 Net actuarial gain (2,127) (1,483) Amortization of net loss (529) (361) Accumulated comprehensive loss, April 30, 2021 $ 8,426 $ 4,623 Net actuarial loss 316 214 Amortization of net loss (392) (264) Accumulated comprehensive loss, April 30, 2022 $ 8,350 $ 4,573 The Company recorded, net of tax, other comprehensive income of $50,000 and $1,844,000 in 2022 and 2021 to account for the net effect of changes to the unfunded portion of pension liability. The asset allocation for the pension plan by asset category was as follows: April 30, 2022 2021 Equity securities 57 % 51 % Fixed income securities 38 39 Other (principally cash and cash equivalents) 5 10 Total 100 % 100 % The investment mix between equity securities and fixed income securities seeks to achieve a desired return by balancing equity securities and fixed-income securities. Pension plan assets are invested in portfolios of diversified public-market equity securities and fixed income securities. The pension plan holds no securities of the Company. Investment allocations are made across a range of markets, industry sectors, market capitalization sizes and, in the case of fixed income securities, maturities and credit quality. The amount of benefit payments in future fiscal years to pension plan participants payable from plan assets is expected to be as follows: 2023 - $2,386,000, 2024 - $1,635,000, 2025 - $1,574,000, 2026 - $1,536,000 and 2027 - $1,449,000 and an aggregate of $6,370,000 is expected to be paid in the fiscal five-year period 2028 through 2032. The Company has adopted the disclosure requirements in ASC 715, which requires additional fair value disclosures consistent with those required by ASC 820. The following is a description of the valuation methodologies used for pension plan assets measured at fair value: common stock – valued at the closing price reported on a listed stock exchange; corporate bonds, debentures and government agency securities – valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flow; and U.S. Treasury securities – valued at the closing price reported in the active market in which the security is traded. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level within the fair value hierarchy the pension plan’s assets at fair value as of April 30, 2022 and 2021 (in thousands): 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 791 $ 791 $ — $ — Investments at fair value: Equity securities 10,348 10,348 — — Fixed income securities 6,915 6,915 — — Total assets at fair value $ 18,054 $ 18,054 $ — $ — 2021 : Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 2,215 $ 2,215 $ — $ — Investments at fair value: Equity securities 10,707 10,707 — — Fixed income securities 8,180 8,180 — — Total assets at fair value $ 21,102 $ 21,102 $ — $ — Simple IRA The Company provides a Simple IRA plan as a retirement plan for eligible employees. Under the Simple IRA plan, eligible employees may contribute a portion of their pre-tax yearly salary, up to the maximum contribution limit for Simple IRA plans as set forth under the Internal Revenue Code of 1986, as amended, with the Company matching such contributions on a dollar-for-dollar basis up to 3% of each contributing employee’s annual pre-tax compensation. The Company’s employer contribution was $55,000 and $36,000 for 2022 and 2021. Equity compensation plan The AMREP Corporation 2016 Equity Compensation Plan (the “ Equity Plan”) authorizes stock-based awards of various kinds to non-employee directors and employees covering up to a total of 500,000 shares of common stock of the Company. The Equity Plan will expire by its terms on, and no award will be granted under the Equity Plan on or after, September 19, 2026. As of April 30, 2022, the Company had 303,164 shares of common stock of the Company available for issuance under the Equity Plan. Shares of restricted common stock that are issued under the Equity Plan (“restricted shares”) are considered to be issued and outstanding as of the grant date and have the same dividend and voting rights as other common stock. Compensation expense related to the restricted shares is recognized over the vesting period of each grant based on the fair value of the shares as of the date of grant. The fair value of each grant of restricted shares is determined based on the trading price of the Company’s common stock on the date of such grant, and this amount will be charged to expense over the vesting term of the grant. Forfeitures are recognized as reversals of compensation expense on the date of forfeiture. The restricted share award activity for 2022 was as follows: Weighted Average Number of Grant Date Fair Value Restricted share awards Shares Per Share Non-vested as of May 1, 2021 29,000 $ 6.18 Granted during 2022 13,000 11.50 Vested during 2022 (20,500) 6.61 Forfeited during 2022 — — Non-vested as of April 30, 2022 21,500 $ 8.98 The Company recognized non-cash compensation expense related to the vesting of restricted shares of common stock net of forfeitures of $102,000 and $78,000 for 2022 and 2021. As of April 30, 2022, there was $81,000 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. In November 2021, the Company granted Christopher V. Vitale, the President and Chief Executive Officer of the Company, an option to purchase 50,000 shares of common stock of the Company under the Equity Plan with an exercise price of $14.24 per share, which was the closing price on the New York Stock Exchange on the date of grant. The option will become exercisable for 100% of the option shares on November 1, 2026 if Mr. Vitale is employed by, or providing service to, the Company on such date. Subject to the definitions in the Equity Plan, in the event (a) Mr. Vitale has a termination of employment with the Company on account of death or disability, (b) the Company terminates Mr. Vitale’s employment with the Company for any reason other than cause or (c) of a change in control, then the option will become immediately exercisable for 100% of the option shares. The option has a term of ten years from the date of grant and terminates at the expiration of that period. The option automatically terminates upon: (i) the expiration of the three month period after Mr. Vitale ceases to be employed by the Company, if the termination of his employment by Mr. Vitale or the Company is for any reason other than as hereinafter set forth in clauses (ii), (iii) or (iv); (ii) the expiration of the one year period after Mr. Vitale ceases to be employed by the Company on account of Mr. Vitale’s disability; (iii) the expiration of the one year period after Mr. Vitale ceases to be employed by the Company, if Mr. Vitale dies while employed by the Company; or (iv) the date on which Mr. Vitale ceases to be employed by the Company, if the termination is for cause. If Mr. Vitale engages in conduct that constitutes cause after Mr. Vitale’s employment terminates, the option immediately terminates. Notwithstanding the foregoing, in no event may the option be exercised after the date that is immediately before the tenth anniversary of the date of grant. Except as described above, any portion of the option that is not exercisable at the time Mr. Vitale has a termination of employment with the Company immediately terminates. The fair value of the option was $252,000 as of the date of grant using the Black-Scholes fair value option valuation model. The following assumptions were used for determining the fair value of the option: expected volatility of 38.04%; average risk-free interest rate of 1.46%; dividend yield of 0%; and expected life of 7.5 years. As of April 30, 2022, the option has not been exercised, cancelled or forfeited. The Company recognized non-cash compensation expense related to the option of $25,000 during 2022. As of April 30, 2022, the option was out-of-the-money and therefore was not included in “weighted average number of common shares outstanding – diluted” when calculating diluted earnings per share. The option could be dilutive to earnings per share in the future. On December 31, 2021 and 2020, each non-employee member of the Company’s Board of Directors was issued the number of deferred common share units of the Company under the Equity Plan equal to $30,000 divided by the closing price per share of Common Stock reported on the New York Stock Exchange on such date. Based on the closing price per share of $15.20 and $8.54 on December 31, 2021 and 2020, the Company issued a total of 5,919 and 10,536 deferred common share units to members of the Company’s Board of Directors. Each deferred common share unit represents the right to receive one share of Common Stock within 30 days after the first day of the month to follow such director’s termination of service as a director of the Company. In connection with the resignation of a director in September 2020, the Company (i) issued 12,411 shares of common stock in October 2020 pursuant to an equivalent number of deferred common share units previously issued to such director and (ii) paid $20,000 in September 2020 to such director in lieu of issuance of deferred common share units earned for calendar year 2020. Director compensation non-cash expense, which is recognized for the annual grant of deferred common share units ratably over the director’s service in office during the calendar year, was $90,000 for each of 2022 and 2021. At April 30, 2022 and 2021, there was $30,000 of accrued compensation expense related to the deferred stock units expected to be issued in December of the following fiscal year. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Apr. 30, 2022 | |
OTHER INCOME. | |
OTHER INCOME | (12) OTHER INCOME Other income of $261,000 for 2022 primarily consisted of $185,000 received in connection with the bankruptcy of a warranty provider, $45,000 of debt forgiveness with respect to a note payable and $30,000 earned from a life insurance policy for a retired executive of the Company. Other income of $1,028,000 for 2021 primarily consisted of a settlement payment of $650,000 from a tenant for failure to pay rent for the Company’s warehouse and office facilities located in Palm Coast, Florida and $300,000 of debt forgiveness with respect to a loan received by the Company pursuant to the Paycheck Protection Program administered by the U.S. Small Business Administration. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Apr. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | (13) INCOME TAXES The provision (benefit) for income taxes consists of the following (in thousands): Year Ended April 30, 2022 2021 Current: Federal $ 2,876 $ 69 State and local 1,062 80 3,938 149 Deferred: Federal 1,333 2,219 State and local 433 275 1,766 2,494 Total provision (benefit) for income taxes $ 5,704 $ 2,643 The components of the net deferred income taxes are as follows (in thousands): April 30, 2022 2021 Deferred income tax assets: State tax loss carryforwards $ 4,199 $ 4,296 U.S. federal NOL carryforward — 1,384 Accrued pension costs 9 — Vacation accrual 14 14 Real estate basis differences 3,441 3,976 Other 230 303 Total deferred income tax assets 7,893 9,973 Deferred income tax liabilities: Depreciable assets — (749) Deferred gains on investment assets (2,387) (2,300) Prepaid pension costs (363) (178) Other (36) (31) Total deferred income tax liabilities (2,786) (3,258) Valuation allowance for realization of certain deferred income tax assets (4,149) (3,966) Net deferred income tax asset $ 958 $ 2,749 A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates primarily to deferred tax assets, including net operating loss carryforwards, in states where the Company either has no current operations or its operations are not considered likely to realize the deferred tax assets due to the amount of the applicable state net operating loss or its expected expiration date. The $183,000 increase in the valuation allowance in 2022 is related to the increase in state net operating losses that are not expected to be realizable. The Company has no federal net operating loss carryforwards. The Company has state net operating loss carryforwards of $93,603,000 that expire beginning in fiscal year ending April 30, 2025. The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company’s actual tax provision (in thousands): Year Ended April 30, 2022 2021 Computed tax provision at statutory rate $ 4,526 $ 2,108 Increase (reduction) in tax resulting from: Deferred tax rate changes (453) 139 Change in valuation allowances 183 (304) State income taxes, net of federal income tax effect 1,095 366 Permanent items — (63) Other 353 397 Actual tax provision $ 5,704 $ 2,643 The Company is subject to U.S. federal income taxes and various state and local income taxes. Tax regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. Other than U.S. federal tax returns, in nearly all jurisdictions, the tax years through the fiscal year ended April 30, 2018 are no longer subject to examination due to the expiration of the applicable statutes of limitations. ASC 740 clarifies the accounting for uncertain tax positions, prescribing a minimum recognition threshold a tax position is required to meet before being recognized, and providing guidance on the derecognition, measurement, classification and disclosure relating to income taxes. The Company has no unrecognized tax benefits for 2022 and 2021. The Company has elected to include interest and penalties in its income tax expense. The Company had no accrued interest or penalties as of April 30, 2022 and 2021. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Apr. 30, 2022 | |
LEASE COMMITMENTS | |
LEASE COMMITMENTS | (14) LEASE COMMITMENTS The Company leases an office and office equipment in Pennsylvania and office equipment in New Mexico. The leases are generally non-cancelable operating leases with an initial term of two assets lease Remaining operating lease payments subsequent to April 30, 2022 are $25,000 in fiscal year 2023, $26,000 in fiscal year 2024, $27,000 in fiscal year 2025 and $38,000 in subsequent years. Remaining operating lease payments had imputed interest resulting in a present value of lease liabilities of $101,000. For 2022, the weighted average remaining lease term and weighted average discount rate of the Company’s operating leases were 4.34 years and 5.50%. For 2021, the weighted average remaining lease term and weighted average discount rate of the Company's operating leases were less than one year and 5.50%. The lease contracts for the Company generally do not provide a readily determinable implicit rate. For these contracts, the Company estimated the incremental borrowing rate based on information available upon the adoption of ASU 2016-02. The Company applied a consistent method in periods after the adoption of ASU 2016-02 to estimate the incremental borrowing rate. |
STOCK REPURCHASES
STOCK REPURCHASES | 12 Months Ended |
Apr. 30, 2022 | |
STOCK REPURCHASES | |
STOCK REPURCHASES | (15) STOCK REPURCHASES In August 2020, the Company repurchased 11,847 shares of common stock of the Company at a price of $4.48 per share in a privately negotiated transaction. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. In September 2020, the Board of Directors of the Company authorized the Company to purchase up to 1,000,000 shares of common stock of the Company from time to time pursuant to a share repurchase program, subject to the total expenditure for the purchase of shares under the share repurchase program not exceeding $5,000,000, exclusive of any fees, commissions and other expenses related to such repurchases. Under the share repurchase program, the Company was authorized to repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deemed appropriate, subject to market conditions, legal requirements and other considerations. The Company’s repurchases could be executed using open market purchases, unsolicited or solicited privately negotiated transactions or other transactions, and could be effected pursuant to trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The share repurchase program did not obligate the Company to repurchase any specific number of shares and could be suspended, modified or terminated at any time without prior notice. The share repurchase program did not contain a time limitation during which repurchases were permitted to occur. In October 2020, the Company repurchased 675,616 shares of common stock of the Company at a price of $6.18 per share in a privately negotiated transaction pursuant to the share repurchase program. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. In November 2020, the Company repurchased 143,482 shares of common stock of the Company at a price of $6.18 per share in a privately negotiated transaction. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. The share repurchase was not completed pursuant to the Company’s share repurchase program. In November 2020, the Company’s share repurchase program was terminated. In March 2022, the Company repurchased 2,096,061 shares of common stock of the Company at a price of $10.45 per share in a privately negotiated transaction. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Apr. 30, 2022 | |
TREASURY STOCK | |
TREASURY STOCK | (16) TREASURY STOCK During 2021, 225,250 shares of common stock of the Company held as treasury stock were retired and returned to the status of authorized but unissued shares of common stock. |
INFORMATION ABOUT THE COMPANY'S
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | 12 Months Ended |
Apr. 30, 2022 | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | (17) 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 2022(a) Revenues $ 44,360 $ 11,221 $ 6,898 $ 62,479 Net income 15,322 1,626 (1,086) 15,862 Provision for income taxes 2,190 554 2,960 5,704 Interest expense (income), net (b) (1) — (1) (2) Depreciation 18 — 207 225 EBITDA (c) $ 17,529 $ 2,180 $ 2,080 $ 21,789 Capital expenditures $ 1,272 $ 15 $ — $ 1,287 Total assets as of April 30, 2022 $ 86,991 $ 5,631 $ 2,295 $ 94,917 2021(a) Revenues $ 32,431 $ 3,081 $ 4,557 $ 40,069 Net income (loss) 10,091 (84) (2,615) 7,392 Provision (benefit) for income taxes (765) (45) 3,453 2,643 Interest expense (income), net (b) 43 — (3) 40 Depreciation 51 — 503 554 EBITDA (c) $ 9,420 $ (129) $ 1,338 $ 10,629 Capital expenditures $ — $ 5 $ — $ 5 Total assets as of April 30, 2021 $ 81,892 $ 1,999 $ 13,475 $ 97,366 (a) Revenue information provided for each segment may include amounts classified as building sales and 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 expense, 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES (Policies) | 12 Months Ended |
Apr. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | |
Organization and principles of consolidation | Organization and principles of consolidation The consolidated financial statements include the accounts of AMREP Corporation, an Oklahoma corporation, and its subsidiaries (collectively, the “Company”). The Company, through its subsidiaries, is primarily engaged in two business segments: land development and homebuilding. The Company has no foreign sales. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated balance sheets are presented in an unclassified format since the Company has substantial operations in the real estate industry and its operating cycle is greater than one year. Certain 2021 balances in these financial statements have been reclassified to conform to the current year presentation with no effect on the net income or loss or shareholders’ equity. |
Fiscal year | Fiscal year The Company’s fiscal year ends on April 30. All references to 2022 and 2021 mean the fiscal years ended April 30, 2022 and 2021, unless the context otherwise indicates. |
Revenue recognition | Revenue recognition The Company accounts for land sale revenues, home sale revenues and building sales and other revenues in accordance with Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Land sale revenues Land sale cost of revenues includes all direct acquisition costs and other costs specifically identified with the property, including pre-acquisition costs and capitalized real estate taxes and interest, and an allocation of certain common development costs associated with the entire project. Common development costs include the installation of utilities and roads, and may be based upon estimates of cost to complete. The allocation of costs is based on the estimated relative sales value of the individual parcels of land being sold to the total expected sales value for the unsold parcels of land in the applicable portion of the subdivision. Estimates and cost allocations are reviewed on a regular basis until a project is substantially completed, and are revised and reallocated as necessary on the basis of current estimates. Home sale revenues Forfeited customer deposits for homes are recognized in home sale revenues in the period in which the Company determines that the customer will not complete the purchase of the home and the Company has the right to retain the deposit. In order to promote sales of homes, the Company may offer home buyers sales incentives. These incentives vary by type and amount on a community-by-community and home-by-home basis. Incentives are reflected as a reduction in home sale revenues. Home construction and related costs are capitalized as incurred within real estate inventory under the specific identification method on the consolidated balance sheet and are charged to home sale cost of revenues on the consolidated statement of operations when the related home is sold. Building sales and other revenues Sales of buildings and other land consist of building sales in New Mexico and Florida. Revenues from these building sales are recognized when the parties are bound by the terms of a contract, consideration has been exchanged, title and other attributes of ownership have been conveyed to the buyer by means of a closing and the Company is not obligated to perform further significant development of the specific property sold. In general, the Company’s performance obligation for each of these building sales is fulfilled upon the delivery of the property, which generally coincides with the receipt of cash consideration from the counterparty. Building sales and other cost of revenues includes all direct acquisition costs and other costs specifically identified with the property, including pre-acquisition and acquisition costs, if applicable, closing and selling costs and construction costs. Oil and gas royalties are recognized at the time of receipt by the Company as such amounts are unknown with any degree of certainty prior to receipt. Infrastructure reimbursements include amounts received from a public improvement district and private infrastructure reimbursement covenants and the payment for impact fee credits. Such amounts are recognized at the time of receipt by the Company as such amounts are unknown with any degree of certainty prior to receipt. Miscellaneous other revenues primarily include rental payments and additional rent from tenants pursuant to leases with respect to property or buildings of the Company. Base rental payments are recognized as revenue monthly over the term of the lease. Additional rent related to the reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses is recognized as revenue in the period the expenses are incurred. |
Cash, and cash equivalents | Cash, and cash equivalents Cash equivalents consist of highly liquid investments that have an original maturity of ninety days or less when purchased and are readily convertible into cash. Restricted cash consists of cash deposits with a bank that are restricted due to subdivision improvement agreements with a governmental authority. The Company did not have any restricted cash as of April 30, 2022 or April 30, 2021. |
Long-lived assets | Long-lived assets Long-lived assets consist of real estate inventory and investment assets and are accounted for in accordance with Accounting Standards Codification (“ASC”) 360-10. |
Real estate inventory | Real estate inventory : Real estate inventory includes land and improvements on land held for future development or sale. The cost basis of the land and improvements includes all direct acquisition costs including development costs, certain amenities, capitalized interest, capitalized real estate taxes and other costs. Interest and real estate taxes are not capitalized unless active development is underway. Real estate inventory held for future development or sale is stated at accumulated cost and is evaluated and reviewed for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. |
Investment assets, net | Investment assets, net : Investment assets, net consist of (i) investment land, which represents vacant, undeveloped land not held for development or sale in the normal course of business, and (ii) real estate assets that are leased or intended to be leased to third parties. Investment assets are stated at the lower of cost or net realizable value. Depreciation of investment assets (other than land) is provided principally by the straight-line method at various rates calculated to amortize the book values of the respective assets over their estimated useful lives, which generally are 10 to 40 years for buildings and improvements. Land is not subject to depreciation. |
Impairment of long-lived assets | Impairment of long-lived assets : Long-lived assets are evaluated and tested for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Asset impairment tests are based upon the intended use of assets, expected future cash flows and estimates of fair value of assets. The evaluation of operating asset groups includes an estimate of future cash flows on an undiscounted basis using estimated revenue streams, operating margins and general and administrative expenses. The estimation process involved in determining if assets have been impaired and in the determination of estimated future cash flows is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. If the excess of undiscounted cash flows over the carrying value of a project is small, there is a greater risk of future impairment and any resulting impairment charges could be material. Due to the subjective nature of the estimates and assumptions used in determining future cash flows, actual results could differ materially from current estimates and the Company may be required to recognize impairment charges in the future. |
Leases | Leases Right-of-use assets and lease liabilities are recorded on the balance sheet for all leases with an initial term over one year. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Right-of-use assets are classified within other assets and the corresponding lease liability is included in accounts payable and accrued expenses in the consolidated balance sheet. |
Share-based compensation | Share-based compensation The Company accounts for awards of restricted stock, stock options and deferred stock units in accordance with ASC 718-10, which requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). Compensation expense for awards of restricted stock, stock options and deferred stock units are based on the fair value of the awards at their grant dates. To estimate the grant-date fair value of stock options, the Company uses the Black-Scholes option-pricing model. The Black-Scholes model estimates the per share fair value of an option on its date of grant based on the following: the option’s exercise price; the price of the underlying stock on the date of grant; the estimated dividend yield; a “risk-free” interest rate; the estimated option term; and the expected volatility. For the “risk-free” interest rate, the Company uses a U.S. Treasury bond due in a number of years equal to the option’s expected term. To estimate expected volatility, the Company analyzes the historic volatility of the Company’s common stock. |
Income taxes | Income taxes Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities, and are measured by using currently enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. The Company provides a valuation allowance against deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. |
Earnings per share | Earnings per share Basic earnings per share is based on the weighted average number of common shares outstanding during each year. Unvested restricted shares of common stock are not included in the computation of basic earnings per share, as they are considered contingently returnable shares. Unvested restricted shares of common stock are included in diluted earnings per share if they are dilutive. Deferred stock units are included in both basic and diluted earnings per share computations. Stock options are not included in the computation of basic earnings per share. Stock options are included in diluted earnings per share if they are not anti-dilutive and are in-the-money. |
Pension plan | Pension plan The Company recognizes the over-funded or under-funded status of its defined benefit pension plan as an asset or liability as of the date of the plan’s year-end statement of financial position and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. |
Comprehensive income | Comprehensive income Comprehensive income is defined as the change in equity during a period from transactions and other events from non-owner sources. Total comprehensive income is the total of net income or loss and other comprehensive income or loss that, for the Company, consists of the minimum pension liability net of the related deferred income tax effect. |
Management's estimates and assumptions | Management’s estimates and assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant judgments and estimates that affect the financial statements include, but are not limited to, (i) land sale cost of revenues calculations, which are based on land development budgets and estimates of costs to complete; (ii) cash flows, asset groupings and valuation assumptions in performing asset impairment tests of long-lived assets and assets held for sale; (iii) actuarially determined benefit obligations and other pension plan accounting and disclosures; (iv) risk assessment of uncertain tax positions; and (v) the determination of the recoverability of net deferred tax assets. The Company bases its significant estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ from these estimates. |
Recent accounting pronouncements | Recent accounting pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued 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) | 12 Months Ended |
Apr. 30, 2022 | |
REAL ESTATE INVENTORY | |
Schedule of components of real estate inventory | Real estate inventory consists of (in thousands): April 30, 2022 2021 Land held for development or sale in New Mexico $ 59,374 $ 49,918 Land held for development or sale in Colorado 3,434 3,975 Homebuilding finished inventory 1,135 417 Homebuilding construction in process 3,306 1,279 $ 67,249 $ 55,589 |
INVESTMENT ASSETS, NET (Tables)
INVESTMENT ASSETS, NET (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
INVESTMENT ASSETS, NET | |
Schedule of investment assets | Investment assets, net consist of (in thousands): April 30, 2022 2021 Land held for long-term investment $ 9,017 $ 9,775 Buildings — 10,003 Less accumulated depreciation — (6,196) Buildings, net — 3,807 $ 9,017 $ 13,582 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
OTHER ASSETS | |
Schedule of other assets | Other assets consist of (in thousands): April 30, 2022 2021 Prepaid expenses $ 366 $ 324 Receivables 50 37 Right-of-use assets associated with leases of office facilities, net 118 84 Miscellaneous assets 81 172 Property 1,247 — Equipment 240 222 Less accumulated depreciation of property and equipment (220) (194) Property and equipment, net 1,267 28 $ 1,882 $ 645 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of (in thousands): April 30, 2022 2021 Real estate operations Accrued expenses $ 1,238 $ 658 Trade payables 3,026 1,377 Real estate customer deposits 1,357 1,769 5,621 3,804 Corporate operations 456 654 $ 6,077 $ 4,458 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
NOTES PAYABLE | |
Schedule of notes payable | Notes payable, net consist of (in thousands): April 30, 2022 2021 Real estate notes payable $ 2,030 $ 3,482 Unamortized debt issuance costs — (34) $ 2,030 $ 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 as of April 30, 2022 (dollars in thousands): Principal Amount Available for Outstanding Principal New Borrowings Principal Amount Repayments April 30, April 30, Year ended Loan Identifier Lender 2022 2022 2021 April 30, 2022 Revolving Line of Credit BOKF $ 2,427 $ — $ — $ — La Mirada BOKF 1,877 2,030 — 3,468 $ 2,030 $ — Capitalized Interest Mortgaged Property and Fees Interest Rate Book Value Year ended April 30 Loan Identifier April 30, 2022 April 30, 2022 2022 2021 Scheduled Maturity Revolving Line of Credit 3.75 % $ 1,693 $ — $ — February 2024 La Mirada 3.75 % 8,269 193 — June 2024 The following table presents information on the Company’s notes payable in effect as of April 30, 2021 and terminated prior to April 30, 2022 (in thousands): Original Capitalized Interest Maximum Outstanding and Fees Available Principal Amount Year ended April 30 Loan Identifier Lender Principal Amount April 30, 2021 2022 2021 Lomas Encantadas U2B P3 BOKF $ 2,400 $ 410 $ 6 $ 30 Hawk Site U37 SLFCU 3,000 — — 7 Hawk Site U23 U40 BOKF 2,700 30 1 — Lavender Fields – acquisition Seller 1,838 1,749 — — Lavender Fields – development BOKF 3,750 1,293 23 — $ 3,482 |
Schedule of scheduled principal repayments subsequent to reporting date | The following table summarizes the notes payable scheduled principal repayments subsequent to April 30, 2022 (in thousands): Fiscal Year Scheduled Payments 2023 $ — 2024 — 2025 2,030 Total $ 2,030 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
REVENUES | |
Schedule of other revenues | Year Ended April 30, 2022 2021 Sales of buildings and other land $ 8,439 $ 9,493 Oil and gas royalties 276 135 Infrastructure reimbursements 1,189 1,228 Miscellaneous other revenues 446 959 $ 10,350 $ 11,815 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of components of general and administrative expenses | General and administrative expenses consist of (in thousands): Year Ended April 30, 2022 2021 Land development $ 3,258 $ 2,532 Homebuilding 878 626 Corporate 1,218 2,262 $ 5,354 $ 5,420 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
BENEFIT PLANS | |
Schedule of net periodic pension cost | Net periodic pension cost for 2022 and 2021 was comprised of the following components (in thousands): Year Ended April 30, 2022 2021 Interest cost on projected benefit obligation $ 503 $ 504 Expected return on assets (1,535) (1,409) Plan expenses 150 340 Recognized net actuarial loss 392 529 Net periodic pension cost $ (490) $ (36) |
Schedule of assumptions used in determining net periodic pension cost | Year Ended April 30, 2022 2021 Discount rate used to determine net periodic pension cost 2.48 % 2.29 % Discount rate used to determine pension benefit obligation 3.97 % 2.48 % Expected long-term rate of return on assets used for pension cost on assets 7.75 % 7.75 % |
Schedule of pension plan's benefit obligation and assets | The following table sets forth changes in the pension plan’s benefit obligation and assets, and summarizes components of amounts recognized in the Company’s consolidated balance sheet (in thousands): April 30, 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 21,578 $ 23,274 Interest cost 503 504 Actuarial gain (2,414) (537) Benefits paid (1,703) (1,663) Benefit obligation at end of year $ 17,964 $ 21,578 Change in plan assets: Fair value of plan assets at beginning of year $ 21,102 $ 18,260 Actual return on plan assets (1,239) 2,808 Company contributions — 1,847 Benefits paid (1,703) (1,663) Plan expenses (106) (150) Fair value of plan assets at end of year $ 18,054 $ 21,102 Overfunded (underfunded) status $ 90 $ (476) |
Schedule of accumulated other comprehensive loss, which have not yet been recognized as a component of net periodic pension costs | The following table summarizes the amounts recorded in accumulated other comprehensive loss, which have not yet been recognized as a component of net periodic pension costs (in thousands): Year Ended April 30, 2022 2021 Pretax accumulated comprehensive loss $ 8,350 $ 8,426 |
Schedule of changes in accumulated other comprehensive loss related to the pension plan | The following table summarizes the changes in accumulated other comprehensive loss related to the pension plan for the years ended April 30, 2022 and 2021 (in thousands): Pension Benefits Pretax Net of Tax Accumulated comprehensive loss, May 1, 2020 $ 11,082 $ 6,467 Net actuarial gain (2,127) (1,483) Amortization of net loss (529) (361) Accumulated comprehensive loss, April 30, 2021 $ 8,426 $ 4,623 Net actuarial loss 316 214 Amortization of net loss (392) (264) Accumulated comprehensive loss, April 30, 2022 $ 8,350 $ 4,573 |
Schedule of asset allocation for the pension plan by asset category | April 30, 2022 2021 Equity securities 57 % 51 % Fixed income securities 38 39 Other (principally cash and cash equivalents) 5 10 Total 100 % 100 % |
Schedule of fair value hierarchy the pension plan's assets | The following table sets forth by level within the fair value hierarchy the pension plan’s assets at fair value as of April 30, 2022 and 2021 (in thousands): 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 791 $ 791 $ — $ — Investments at fair value: Equity securities 10,348 10,348 — — Fixed income securities 6,915 6,915 — — Total assets at fair value $ 18,054 $ 18,054 $ — $ — 2021 : Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 2,215 $ 2,215 $ — $ — Investments at fair value: Equity securities 10,707 10,707 — — Fixed income securities 8,180 8,180 — — Total assets at fair value $ 21,102 $ 21,102 $ — $ — |
Schedule of restricted share award activity | The restricted share award activity for 2022 was as follows: Weighted Average Number of Grant Date Fair Value Restricted share awards Shares Per Share Non-vested as of May 1, 2021 29,000 $ 6.18 Granted during 2022 13,000 11.50 Vested during 2022 (20,500) 6.61 Forfeited during 2022 — — Non-vested as of April 30, 2022 21,500 $ 8.98 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
INCOME TAXES | |
Schedule of components of income tax expense (benefit) | The provision (benefit) for income taxes consists of the following (in thousands): Year Ended April 30, 2022 2021 Current: Federal $ 2,876 $ 69 State and local 1,062 80 3,938 149 Deferred: Federal 1,333 2,219 State and local 433 275 1,766 2,494 Total provision (benefit) for income taxes $ 5,704 $ 2,643 |
Schedule of components of the net deferred income taxes | The components of the net deferred income taxes are as follows (in thousands): April 30, 2022 2021 Deferred income tax assets: State tax loss carryforwards $ 4,199 $ 4,296 U.S. federal NOL carryforward — 1,384 Accrued pension costs 9 — Vacation accrual 14 14 Real estate basis differences 3,441 3,976 Other 230 303 Total deferred income tax assets 7,893 9,973 Deferred income tax liabilities: Depreciable assets — (749) Deferred gains on investment assets (2,387) (2,300) Prepaid pension costs (363) (178) Other (36) (31) Total deferred income tax liabilities (2,786) (3,258) Valuation allowance for realization of certain deferred income tax assets (4,149) (3,966) Net deferred income tax asset $ 958 $ 2,749 |
Schedule of effective income tax rate reconciliation | The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company’s actual tax provision (in thousands): Year Ended April 30, 2022 2021 Computed tax provision at statutory rate $ 4,526 $ 2,108 Increase (reduction) in tax resulting from: Deferred tax rate changes (453) 139 Change in valuation allowances 183 (304) State income taxes, net of federal income tax effect 1,095 366 Permanent items — (63) Other 353 397 Actual tax provision $ 5,704 $ 2,643 |
INFORMATION ABOUT THE COMPANY_2
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS | |
Schedule 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 2022(a) Revenues $ 44,360 $ 11,221 $ 6,898 $ 62,479 Net income 15,322 1,626 (1,086) 15,862 Provision for income taxes 2,190 554 2,960 5,704 Interest expense (income), net (b) (1) — (1) (2) Depreciation 18 — 207 225 EBITDA (c) $ 17,529 $ 2,180 $ 2,080 $ 21,789 Capital expenditures $ 1,272 $ 15 $ — $ 1,287 Total assets as of April 30, 2022 $ 86,991 $ 5,631 $ 2,295 $ 94,917 2021(a) Revenues $ 32,431 $ 3,081 $ 4,557 $ 40,069 Net income (loss) 10,091 (84) (2,615) 7,392 Provision (benefit) for income taxes (765) (45) 3,453 2,643 Interest expense (income), net (b) 43 — (3) 40 Depreciation 51 — 503 554 EBITDA (c) $ 9,420 $ (129) $ 1,338 $ 10,629 Capital expenditures $ — $ 5 $ — $ 5 Total assets as of April 30, 2021 $ 81,892 $ 1,999 $ 13,475 $ 97,366 (a) Revenue information provided for each segment may include amounts classified as building sales and 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 expense, 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES: (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES | ||
Restricted cash | $ 0 | |
Property, Plant and Equipment, Depreciation Methods | Depreciation of investment assets (other than land) is provided principally by the straight-line method at various rates calculated to amortize the book values of the respective assets over their estimated useful lives, which generally are 10 to 40 years for buildings and improvements. | |
Lease expected term (in years) | 1 year | |
Operating lease, right-of-use assets | $ 118,000 | $ 84,000 |
REAL ESTATE INVENTORY (Details)
REAL ESTATE INVENTORY (Details) $ in Thousands | Apr. 30, 2022 USD ($) a | Apr. 30, 2021 USD ($) |
Homebuilding finished inventory | $ 1,135 | $ 417 |
Homebuilding construction in process | 3,306 | 1,279 |
Real estate inventory | 67,249 | 55,589 |
New Mexico | ||
Land held for development or sale | 59,374 | 49,918 |
Colorado | ||
Land held for development or sale | $ 3,434 | $ 3,975 |
Brighton [Member] | ||
Area of land sold | a | 160 | |
Parker [Member] | ||
Area of land sold | a | 5 |
REAL ESTATE INVENTORY - Additio
REAL ESTATE INVENTORY - Additional Information (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
REAL ESTATE INVENTORY | ||
Interest and loan costs | $ 224,000 | $ 105,000 |
Real Estate taxes capitalized in real estate inventory | $ 28,000 | $ 29,000 |
INVESTMENT ASSETS, NET (Details
INVESTMENT ASSETS, NET (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
INVESTMENT ASSETS, NET | ||
Land held for long-term investment | $ 9,017 | $ 9,775 |
Buildings | 0 | 10,003 |
Less accumulated depreciation | 0 | (6,196) |
Buildings, net | 0 | 3,807 |
Total | $ 9,017 | $ 13,582 |
INVESTMENT ASSETS, NET - Additi
INVESTMENT ASSETS, NET - Additional Information (Details) | 12 Months Ended | |
Apr. 30, 2022 USD ($) ft² | Apr. 30, 2021 USD ($) ft² | |
Depreciation on buildings | $ | $ 201,000 | $ 542,000 |
Warehouse and Office Buildings | ||
Area of Land | 143,000 | 61,000 |
Florida | Warehouse and Office Buildings | ||
Area of Land | 143,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Prepaid expenses | $ 366,000 | $ 324,000 |
Receivables | 50,000 | 37,000 |
Right-of-use assets associated with leases of office facilities, net | $ 118,000 | $ 84,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Miscellaneous assets | $ 81,000 | $ 172,000 |
Property and equipment, net | 1,267,000 | 28,000 |
Other Assets | 1,882,000 | 645,000 |
Equipment [Member] | ||
Property and equipment | 240,000 | 222,000 |
Less accumulated depreciation | (220,000) | (194,000) |
Property [Member] | ||
Property and equipment | $ 1,247,000 | $ 0 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) | 12 Months Ended | |
Apr. 30, 2022 USD ($) ft² | Apr. 30, 2021 USD ($) | |
Office building | ||
Area of Land | ft² | 7,000 | |
Property and equipment | Right of use assets | ||
Amortization of leased cost | $ 70,000 | $ 18,000 |
Right of use assets | ||
Depreciation expense associated with property and equipment | $ 24,000 | $ 11,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Total | $ 6,077 | $ 4,458 |
Real estate operations | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Accrued expenses | 1,238 | 658 |
Trade payables | 3,026 | 1,377 |
Real estate customer deposits | 1,357 | 1,769 |
Total | 5,621 | 3,804 |
Corporate | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Total | $ 456 | $ 654 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
NOTES PAYABLE: | ||
Notes Payable | $ 2,030 | $ 3,448 |
Real estate notes payable | ||
NOTES PAYABLE: | ||
Notes Payable | 2,030 | 3,482 |
Unamortized debt issuance costs | ||
NOTES PAYABLE: | ||
Notes Payable | $ 0 | $ (34) |
NOTES PAYABLE - Company's Finan
NOTES PAYABLE - Company's Financing Arrangements (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Line of Credit Facility [Line Items] | ||
Outstanding Principal Amount | $ 2,030,000 | $ 0 |
Outstanding principal amount | 2,030,000 | 3,482,000 |
Revolving Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 2,427,000 | |
Outstanding Principal Amount | 0 | 0 |
Outstanding principal amount | 1,323,000 | |
Principal Repayments | $ 0 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 1,693,000 | |
Capitalized Interest and Fees | 0 | 0 |
La Mirada | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 1,877,000 | |
Outstanding Principal Amount | 2,030,000 | 0 |
Principal Repayments | $ 3,468,000 | |
Interest Rate | 3.75% | |
Mortgaged Property Book Value | $ 8,269,000 | |
Capitalized Interest and Fees | 193,000 | 0 |
Lomas Encantadas U2B P3 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 2,400,000 | |
Outstanding principal amount | 410,000 | |
Capitalized Interest and Fees | 6,000 | 30,000 |
Hawk Site U37 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 3,000,000 | |
Outstanding principal amount | 0 | |
Capitalized Interest and Fees | 0 | 7,000 |
Hawk Site U23 U40 | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 2,700,000 | |
Outstanding principal amount | 30,000 | |
Capitalized Interest and Fees | 1,000 | 0 |
Lavender Fields - acquisition | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 1,838,000 | |
Outstanding principal amount | 1,749,000 | |
Capitalized Interest and Fees | 0 | 0 |
Lavender Fields - development | ||
Line of Credit Facility [Line Items] | ||
Principal Amount Available for Borrowing | 3,750,000 | |
Outstanding principal amount | 1,293,000 | |
Capitalized Interest and Fees | $ 23,000 | $ 0 |
NOTES PAYABLE - Principal repay
NOTES PAYABLE - Principal repayments (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
NOTES PAYABLE | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 2,030 | |
Total | $ 2,030 | $ 3,482 |
NOTES PAYABLE - Additional info
NOTES PAYABLE - Additional information (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021 USD ($) | Jun. 30, 2020 USD ($) a item | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) a | Feb. 28, 2021 USD ($) a | |
NOTES PAYABLE: | ||||||
Outstanding amount | $ 2,030,000 | $ 3,482,000 | ||||
Lavender Fields, LLC ("LF") | ||||||
NOTES PAYABLE: | ||||||
Number of acres | a | 28 | |||||
Number of residential lots | item | 82 | |||||
Revolving Line of Credit | ||||||
NOTES PAYABLE: | ||||||
Maximum borrowing capacity | 2,427,000 | |||||
Outstanding amount | 1,323,000 | |||||
Interest and fees capitalized | 0 | 0 | ||||
Revolving Line of Credit | Loan Agreement | ||||||
NOTES PAYABLE: | ||||||
Number of acres | a | 298 | |||||
Debt Instrument, Face Amount | $ 4,000,000 | |||||
Maximum amount for use with credit card | $ 250,000 | |||||
Unrestricted cash and cash equivalents | 3,000,000 | |||||
Minimum Net Worth Required for Compliance | $ 32,000,000 | |||||
Revolving Line of Credit | Loan Agreement | LIBOR | ||||||
NOTES PAYABLE: | ||||||
Interest rate period | 30 days | |||||
Spread on interest rate | 3% | |||||
Line of credit facility, interest rate during period | 3.75% | |||||
Non-Revolving Line of Credit Promissory Note | ||||||
NOTES PAYABLE: | ||||||
Number of acres | a | 15 | |||||
Maximum borrowing capacity | $ 7,375,000 | |||||
Non-Revolving Line of Credit Promissory Note | LIBOR | ||||||
NOTES PAYABLE: | ||||||
Spread on interest rate | 3% | |||||
Non-Revolving Line of Credit Promissory Note | Minimum [Member] | ||||||
NOTES PAYABLE: | ||||||
Line of credit facility, interest rate during period | 3.75% | |||||
La Mirada | ||||||
NOTES PAYABLE: | ||||||
Debt Instrument, Face Amount | $ 2,364,000 | |||||
Maximum borrowing capacity | 1,877,000 | |||||
Principal payment per lot to be made to release the lien of mortgage depending on the size of the lot 2 | 60,600 | |||||
Minimum tangible net worth to be maintained by guarantor | 32,000,000 | |||||
Interest and fees capitalized | $ 193,000 | $ 0 | ||||
La Mirada | LIBOR | ||||||
NOTES PAYABLE: | ||||||
Interest rate period | 30 days | |||||
Acquisition Financing Member | Lavender Fields, LLC ("LF") | ||||||
NOTES PAYABLE: | ||||||
Deferred purchase price payable | $ 45,000 | |||||
Deferred purchase price paid | $ 1,704,000 | $ 1,838,000 | ||||
Acquisition Financing Member | Lavender Fields, LLC ("LF") | On or before June 2021 | ||||||
NOTES PAYABLE: | ||||||
Interest and fees capitalized | 919,000 | |||||
Acquisition Financing Member | Lavender Fields, LLC ("LF") | On or before June 2022 | ||||||
NOTES PAYABLE: | ||||||
Interest and fees capitalized | 919,000 | |||||
Development Financing Member | Lavender Fields, LLC ("LF") | ||||||
NOTES PAYABLE: | ||||||
Maximum borrowing capacity | $ 3,750,000 |
REVENUES - Other revenues (Deta
REVENUES - Other revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Other revenues | ||
Sales of buildings and other land | $ 8,439 | $ 9,493 |
Oil and gas royalties | 276 | 135 |
Infrastructure reimbursements | 1,189 | 1,228 |
Miscellaneous other revenues | 446 | 959 |
Other Revenue, Net | $ 10,350 | $ 11,815 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) | 12 Months Ended | |
Apr. 30, 2022 USD ($) ft² a customer | Apr. 30, 2021 USD ($) ft² customer | |
Property, Plant and Equipment [Line Items] | ||
Number of customers | customer | 4 | 3 |
Revenues | $ 62,479,000 | $ 40,069,000 |
Percentage of royalty on proceeds | 1.42% | |
Percentage of Royalty, Post Production Costs | 1.42% | |
Customer A | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | $ 10,982,000 | 10,582,000 |
Customer B | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | 7,107,000 | 6,606,000 |
Customer C | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | 6,750,000 | $ 4,858,000 |
Customer D | ||
Property, Plant and Equipment [Line Items] | ||
Revenues | $ 6,445,000 | |
Minerals and mineral rights | ||
Property, Plant and Equipment [Line Items] | ||
Surface areas of land held | a | 147 | |
New Mexico | Minerals and mineral rights | ||
Property, Plant and Equipment [Line Items] | ||
Surface areas of land held | a | 55,000 | |
Retail Building | New Mexico | ||
Property, Plant and Equipment [Line Items] | ||
Area of land sold | ft² | 4,338 | 14,000 |
Surface areas of land held | ft² | 4,338 | 14,000 |
Warehouse and Office Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Surface areas of land held | ft² | 143,000 | 61,000 |
COST OF REVENUES (Details)
COST OF REVENUES (Details) - ft² | Apr. 30, 2022 | Apr. 30, 2021 |
New Mexico | Retail Building | ||
Area of land sold | 4,338 | 14,000 |
Florida | Warehouse and Office Buildings | ||
Area of land sold | 143,000 | 61,000 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | $ 5,354 | $ 5,420 |
Land Development | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | 3,258 | 2,532 |
Homebuilding | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | 878 | 626 |
Corporate | ||
General and Administrative Expense, Disclosure [Line Items] | ||
General and administrative expenses | $ 1,218 | $ 2,262 |
BENEFIT PLANS - Net periodic pe
BENEFIT PLANS - Net periodic pension cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
BENEFIT PLANS | ||
Interest cost on projected benefit obligation | $ 503 | $ 504 |
Expected return on assets | (1,535) | (1,409) |
Plan expenses | 150 | 340 |
Recognized net actuarial loss | 392 | 529 |
Net periodic pension cost | $ (490) | $ (36) |
BENEFIT PLANS - Assumptions use
BENEFIT PLANS - Assumptions used in determining net periodic pension cost (Details) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
BENEFIT PLANS | ||
Discount rate used to determine net periodic pension cost | 2.48% | 2.29% |
Discount rate used to determine pension benefit obligation | 3.97% | 2.48% |
Expected long-term rate of return on assets used for pension cost on assets | 7.75% | 7.75% |
BENEFIT PLANS - Changes in the
BENEFIT PLANS - Changes in the pension plan's benefit obligation and assets (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
BENEFIT PLANS | ||
Benefit obligation at beginning of year | $ 21,578,000 | $ 23,274,000 |
Interest cost | 503,000 | 504,000 |
Actuarial gain | (2,414,000) | (537,000) |
Benefits paid | (1,703,000) | (1,663,000) |
Benefit obligation at end of year | 17,964,000 | 21,578,000 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 21,102,000 | 18,260,000 |
Actual return on plan assets | (1,239,000) | 2,808,000 |
Company contributions | 0 | 1,847,000 |
Benefits paid | (1,703,000) | (1,663,000) |
Plan expenses | (106,000) | (150,000) |
Fair value of plan assets at end of year | 18,054,000 | 21,102,000 |
Overfunded (underfunded) status | $ 90,000 | $ (476,000) |
BENEFIT PLANS - Not yet recogni
BENEFIT PLANS - Not yet recognized components of net periodic pension cost (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 |
BENEFIT PLANS | |||
Pretax accumulated comprehensive loss | $ 8,350 | $ 8,426 | $ 11,082 |
BENEFIT PLANS - changes in accu
BENEFIT PLANS - changes in accumulated other comprehensive loss related to the pension plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
BENEFIT PLANS | ||
Accumulated comprehensive loss, Pretax | $ 8,426 | $ 11,082 |
Net actuarial gain | 316 | (2,127) |
Amortization of net loss | $ (392) | $ (529) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses, Total | Costs and Expenses, Total |
Accumulated comprehensive loss, Pretax | $ 8,350 | $ 8,426 |
Accumulated comprehensive loss, Net of Tax | 4,623 | 6,467 |
Net actuarial loss (gain) | 214 | (1,483) |
Amortization of net loss | (264) | (361) |
Accumulated comprehensive loss, Net of Tax | $ 4,573 | $ 4,623 |
BENEFIT PLANS - Allocation for
BENEFIT PLANS - Allocation for the pension plan by asset category (Details) | Apr. 30, 2022 | Apr. 30, 2021 |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | 100% |
Equity Securities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 57% | 51% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 38% | 39% |
Cash Equivalents [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5% | 10% |
BENEFIT PLANS - Fair value hier
BENEFIT PLANS - Fair value hierarchy of pension plan's assets at fair value (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 |
Defined Benefit Plan, Fair Value of Plan Assets | $ 18,054,000 | $ 21,102,000 | $ 18,260,000 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 18,054,000 | 21,102,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Cash Equivalents [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 791,000 | 2,215,000 | |
Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 791,000 | 2,215,000 | |
Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Equity Securities [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 10,348,000 | 10,707,000 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 10,348,000 | 10,707,000 | |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 6,915,000 | 8,180,000 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 6,915,000 | 8,180,000 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
BENEFIT PLANS - Maximum number
BENEFIT PLANS - Maximum number of shares issued to employees that could be vested (Details) | 12 Months Ended |
Apr. 30, 2022 $ / shares shares | |
BENEFIT PLANS | |
Number of Shares - Non-vested | shares | 29,000 |
Number of Shares - Granted | shares | 13,000 |
Number of Shares - Vested | shares | (20,500) |
Number of Shares - Forfeited | shares | 0 |
Number of Shares - Non-vested | shares | 21,500 |
Weighted Average Grant Date Fair Value Non-vested | $ / shares | $ 6.18 |
Weighted Average Grant Date Fair Value Granted | $ / shares | 11.50 |
Weighted Average Grant Date Fair Value Vested | $ / shares | 6.61 |
Weighted Average Grant Date Fair Value Forfeited | $ / shares | 0 |
Weighted Average Grant Date Fair Value Non-vested | $ / shares | $ 8.98 |
BENEFIT PLANS - Additional info
BENEFIT PLANS - Additional information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Nov. 30, 2021 USD ($) $ / shares shares | Oct. 31, 2020 shares | Sep. 30, 2020 USD ($) | Apr. 30, 2022 USD ($) shares | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 50,000 | $ 1,844,000 | ||||||
Actuarial gain | 2,414,000 | 537,000 | ||||||
Change in discount rate gain | 2,360,000 | |||||||
Other assumption losses | 76,000 | |||||||
Plan experience gains | 130,000 | |||||||
Share-based Compensation, Total | $ 217,000 | 132,000 | ||||||
Weighted-average remaining vesting period | 3 years | |||||||
Stock option issued during the year | shares | 13,000 | |||||||
Percentage of options exercisable | 100 | |||||||
Term of options from the date of grant | 10 years | |||||||
Threshold period after ceases from employment for automatic termination of options | 3 months | |||||||
Threshold period after ceases from employment on account of disability for automatic termination of options | 1 year | |||||||
Threshold period after ceases from employment on account of death for automatic termination of options | 1 year | |||||||
Fair value of options | $ 252,000 | |||||||
Expected volatility | 38.04% | |||||||
Average risk-free interest rate | 1.46% | |||||||
Dividend yield | 0% | |||||||
Expected life | 7 years 6 months | |||||||
Accrued compensation expense related to the deferred stock units | $ 30,000 | 30,000 | ||||||
Defined Benefit Plan Expected Future Benefit Payments For First Five Years Following Fiscal Year Description | The amount of benefit payments in future fiscal years to pension plan participants payable from plan assets is expected to be as follows: 2023 - $2,386,000, 2024 - $1,635,000, 2025 - $1,574,000, 2026 - $1,536,000 and 2027 - $1,449,000 and an aggregate of $6,370,000 is expected to be paid in the fiscal five-year period 2028 through 2032. | |||||||
Cash paid to directors in lieu of issuance of deferred common share units | $ 20,000 | |||||||
Defined benefit from pension plan | $ 0 | 476,000 | ||||||
Defined Benefit Plan, Plan Assets, Amount | 18,054,000 | 21,102,000 | $ 18,260,000 | |||||
Defined Benefit Plan, Benefit Obligation | 17,964,000 | 21,578,000 | $ 23,274,000 | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | 1,847,000 | ||||||
Number of common stock issued to directors for settlement of deferred stock units | shares | 12,411 | |||||||
Pension Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit from pension plan | 90,000 | |||||||
Simple Internal Revenue Code, Retirement Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 55,000 | 36,000 | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3% | |||||||
Board of Directors Chairman [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Non Cash Director Fee Compensation | $ 90,000 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 15.20 | |||||||
Equity Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Share-based Compensation, Total | 102,000 | $ 78,000 | ||||||
Unrecognized compensation expense related to restricted shares | $ 81,000 | |||||||
Equity Plan [Member] | President and Chief Executive Officer | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Stock option issued during the year | shares | 50,000 | |||||||
Exercise price | $ / shares | $ 14.24 | |||||||
2016 Equity Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 500,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 303,164 | |||||||
2016 Equity Plan [Member] | Board of Directors Chairman [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Non cash compensation expense | $ 25,000 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 8.54 | |||||||
Non Cash Director Compensation | $ 30,000 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 10,536 | 5,919 | ||||||
Weighted Average [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate | 3.97% | 2.48% | ||||||
PBGC [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Payment for Pension Benefits | $ 0 | $ 1,847,000 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Other income | $ 261,000 | $ 1,028,000 |
Life insurance policy for a retired executive | ||
Other income | 30,000 | |
Bankruptcy of a warranty provider | ||
Other income | 185,000 | |
Forgiveness of debt | ||
Other income | 45,000 | 300,000 |
Settlement Agreement | ||
Other income | $ 1,028,000 | $ 650,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Current: | ||
Federal | $ 2,876 | $ 69 |
State and local | 1,062 | 80 |
Total Current | 3,938 | 149 |
Deferred: | ||
Federal | 1,333 | 2,219 |
State and local | 433 | 275 |
Deferred Income Tax Expense (Benefit), Total | 1,766 | 2,494 |
Total provision (benefit) for income taxes | $ 5,704 | $ 2,643 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the net deferred income taxes (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Deferred income tax assets: | ||
State tax loss carryforwards | $ 4,199 | $ 4,296 |
U.S. federal NOL carryforward | 0 | 1,384 |
Accrued pension costs | 9 | 0 |
Vacation accrual | 14 | 14 |
Real estate basis differences | 3,441 | 3,976 |
Other | 230 | 303 |
Total deferred income tax assets | 7,893 | 9,973 |
Deferred income tax liabilities: | ||
Depreciable assets | 0 | (749) |
Deferred gains on investment assets | (2,387) | (2,300) |
Prepaid pension costs | (363) | (178) |
Other | (36) | (31) |
Total deferred income tax liabilities | (2,786) | (3,258) |
Valuation allowance for realization of certain deferred income tax assets | (4,149) | (3,966) |
Net deferred income tax asset | $ 958 | $ 2,749 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
INCOME TAXES | ||
Computed tax provision at statutory rate | $ 4,526 | $ 2,108 |
Increase (reduction) in tax resulting from: | ||
Deferred tax rate changes | (453) | 139 |
Change in valuation allowances | 183 | (304) |
State income taxes, net of federal income tax effect | 1,095 | 366 |
Permanent items | 0 | (63) |
Other | 353 | 397 |
Total provision (benefit) for income taxes | $ 5,704 | $ 2,643 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
INCOME TAXES | ||
Operating Loss Carryforwards State Subject To Expiration Current | $ 93,603,000 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | 0 | $ 0 |
Income Tax Examination, Penalties and Interest Accrued | 0 | $ 0 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 183,000 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) | 12 Months Ended | |||||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2026 | Apr. 30, 2025 | Apr. 30, 2024 | Apr. 30, 2023 | |
Other Commitments [Line Items] | ||||||
Operating lease, right-of-use assets | $ 118,000 | $ 84,000 | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||||
Operating Lease Liability | $ 117,000 | $ 86,000 | ||||
Operating Leases, Rent Expense | $ 30,000 | $ 114,000 | ||||
Weighted average remaining lease term of operating lease | 4 years 4 months 2 days | 1 year | ||||
Weighted average discount rate of operating lease | 5.50% | 5.50% | ||||
Minimum [Member] | ||||||
Other Commitments [Line Items] | ||||||
Non-cancelable operating lease term (in years) | 2 years | |||||
Maximum [Member] | ||||||
Other Commitments [Line Items] | ||||||
Non-cancelable operating lease term (in years) | 5 years | |||||
Subsequent Event [Member] | ||||||
Other Commitments [Line Items] | ||||||
Remaining operating lease payments | $ 38,000 | $ 27,000 | $ 26,000 | $ 25,000 | ||
Present value of lease liabilities | $ 101,000 |
STOCK REPURCHASES (Details)
STOCK REPURCHASES (Details) - USD ($) | 1 Months Ended | ||||
Mar. 31, 2022 | Nov. 30, 2020 | Oct. 31, 2020 | Aug. 31, 2020 | Sep. 30, 2020 | |
STOCK REPURCHASES | |||||
Repurchase of common stock (in shares) | 2,096,061 | 143,482 | 675,616 | 11,847 | |
Repurchase price per share | $ 10.45 | $ 6.18 | $ 6.18 | $ 4.48 | |
Number of shares authorized to be repurchased in Repurchased Program | 1,000,000 | ||||
Amount of authorized to be repurchased in Repurchased Program | $ 5,000,000 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) | Apr. 30, 2021 shares |
TREASURY STOCK | |
Treasury stock, shares | 225,250 |
INFORMATION ABOUT THE COMPANY_3
INFORMATION ABOUT THE COMPANY'S OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 62,479 | $ 40,069 |
Net income (loss) | 15,862 | 7,392 |
Provision (benefit) for income taxes | 5,704 | 2,643 |
Interest expense (income), net (b) | (2) | 40 |
Depreciation | 225 | 554 |
EBITDA (c) | 21,789 | 10,629 |
Capital expenditures | 1,287 | 5 |
Total assets | 94,917 | 97,366 |
Land Development | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 44,360 | 32,431 |
Net income (loss) | 15,322 | 10,091 |
Provision (benefit) for income taxes | 2,190 | (765) |
Interest expense (income), net (b) | (1) | 43 |
Depreciation | 18 | 51 |
EBITDA (c) | 17,529 | 9,420 |
Capital expenditures | 1,272 | 0 |
Total assets | 86,991 | 81,892 |
Homebuilding | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 11,221 | 3,081 |
Net income (loss) | 1,626 | (84) |
Provision (benefit) for income taxes | 554 | (45) |
Interest expense (income), net (b) | 0 | 0 |
Depreciation | 0 | 0 |
EBITDA (c) | 2,180 | (129) |
Capital expenditures | 15 | 5 |
Total assets | 5,631 | 1,999 |
Corporate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 6,898 | 4,557 |
Net income (loss) | (1,086) | (2,615) |
Provision (benefit) for income taxes | 2,960 | 3,453 |
Interest expense (income), net (b) | (1) | (3) |
Depreciation | 207 | 503 |
EBITDA (c) | 2,080 | 1,338 |
Capital expenditures | 0 | 0 |
Total assets | $ 2,295 | $ 13,475 |