TRANSCONTINENTAL REALTY INVESTORS, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(dollars in thousands, except share and per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental and other property revenues (including $167 and $0 for the three months and $335 and $0 for the six months ended 2012 and 2011 respectively from affiliates and related parties) | $ | 30,153 | $ | 28,285 | $ | 58,906 | $ | 54,500 | ||||||||
Expenses: | ||||||||||||||||
Property operating expenses (including $249 and $372 for the three months and $541 and $625 for the six months ended 2012 and 2011 respectively from affiliates and related parties) | 15,128 | 14,415 | 29,875 | 28,978 | ||||||||||||
Depreciation and amortization | 5,399 | 3,551 | 10,833 | 8,790 | ||||||||||||
General and administrative (including $602 and $906 for the three months and $1,227 and $1,748,for the six months ended 2012 and 2011 respectively from affiliates and related parties) | 787 | 2,408 | 2,951 | 4,400 | ||||||||||||
Provision on impairment of notes receivable and real estate assets | - | 444 | - | 5,622 | ||||||||||||
Advisory fee to affiliate | 2,217 | 2,626 | 4,521 | 5,247 | ||||||||||||
Total operating expenses | 23,531 | 23,444 | 48,180 | 53,037 | ||||||||||||
Operating income | 6,622 | 4,841 | 10,726 | 1,463 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income (including $3,866 and $700 for the three months and $7,091 and $1,051 for the six months ended 2012 and 2011 respectively from affiliates and related parties) | 3,869 | 704 | 7,098 | 1,130 | ||||||||||||
Other income (including $1,500 and $0 for the three months and $3,000 and $0 for the six months ended 2012 and 2011 respectively from affiliates and related parties) | 1,528 | 551 | 3,130 | 1,765 | ||||||||||||
Mortgage and loan interest (including $1,107 and $1,269 for the three months and $1,861 and $1,567 for the six months ended 2012 and 2011 respectively from affiliates and related parties) | (15,778 | ) | (13,481 | ) | (32,114 | ) | (25,726 | ) | ||||||||
Loss on the sale of investments | (16 | ) | (451 | ) | (118 | ) | (451 | ) | ||||||||
Earnings from unconsolidated subsidiaries and investees | 9 | 117 | (63 | ) | 57 | |||||||||||
Total other expenses | (10,388 | ) | (12,560 | ) | (22,067 | ) | (23,225 | ) | ||||||||
Loss before gain on land sales, non-controlling interest, and taxes | (3,766 | ) | (7,719 | ) | (11,341 | ) | (21,762 | ) | ||||||||
Gain on land sales | 4,738 | 1,285 | 5,160 | 2,081 | ||||||||||||
Income (loss) from continuing operations before tax | 972 | (6,434 | ) | (6,181 | ) | (19,681 | ) | |||||||||
Income tax benefit (expense) | 520 | (2,729 | ) | 1,579 | (2,309 | ) | ||||||||||
Net income (loss) from continuing operations | 1,492 | (9,163 | ) | (4,602 | ) | (21,990 | ) | |||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations | (17 | ) | (883 | ) | (581 | ) | (3,360 | ) | ||||||||
Gain (loss) on sale of real estate from discontinued operations | 1,502 | (6,914 | ) | 5,091 | (3,238 | ) | ||||||||||
Income tax benefit (expense) from discontinued operations | (520 | ) | 2,729 | (1,579 | ) | 2,309 | ||||||||||
Net income (loss) from discontinued operations | 965 | (5,068 | ) | 2,931 | (4,289 | ) | ||||||||||
Net income (loss) | 2,457 | (14,231 | ) | (1,671 | ) | (26,279 | ) | |||||||||
Net (income) loss attributable to non-controlling interest | (175 | ) | 45 | (254 | ) | 130 | ||||||||||
Net income (loss) attributable to Transcontinental Realty Investors, Inc. | 2,282 | (14,186 | ) | (1,925 | ) | (26,149 | ) | |||||||||
Preferred dividend requirement | (277 | ) | (277 | ) | (554 | ) | (551 | ) | ||||||||
Net income (loss) applicable to common shares | $ | 2,005 | $ | (14,463 | ) | $ | (2,479 | ) | $ | (26,700 | ) | |||||
Earnings per share - basic | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.12 | $ | (1.12 | ) | $ | (0.64 | ) | $ | (2.69 | ) | |||||
Income (loss) from discontinued operations | 0.11 | (0.60 | ) | 0.35 | (0.52 | ) | ||||||||||
Net income (loss) applicable to common shares | $ | 0.23 | $ | (1.72 | ) | $ | (0.29 | ) | $ | (3.21 | ) | |||||
Earnings per share - diluted | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.11 | $ | (1.12 | ) | $ | (0.64 | ) | $ | (2.69 | ) | |||||
Income (loss) from discontinued operations | 0.10 | (0.60 | ) | 0.35 | (0.52 | ) | ||||||||||
Net income (loss) applicable to common shares | $ | 0.21 | $ | (1.72 | ) | $ | (0.29 | ) | $ | (3.21 | ) | |||||
Weighted average common share used in computing earnings per share | 8,413,469 | 8,413,469 | 8,413,469 | 8,327,281 | ||||||||||||
Weighted average common share used in computing diluted earnings per share | 9,622,951 | 8,413,469 | 8,413,469 | 8,327,281 | ||||||||||||
Amounts attributable to Transcontinental Realty Investors, Inc. | ||||||||||||||||
Income (loss) from continuing operations | $ | 1,317 | $ | (9,118 | ) | $ | (4,856 | ) | $ | (21,860 | ) | |||||
Income (loss) from discontinued operations | 965 | (5,068 | ) | 2,931 | (4,289 | ) | ||||||||||
Net income (loss) | $ | 2,282 | $ | (14,186 | ) | $ | (1,925 | ) | $ | (26,149 | ) |
TRANSCONTINENTAL REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
June 30, | December 31, | |||||||
2012 | 2011 | |||||||
(dollars in thousands, except share and par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 1,013,502 | $ | 1,069,699 | ||||
Real estate held for sale at cost, net of depreciation ($3,417 for 2012 and $1,752 for 2011) | 2,879 | 15,015 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($15,483 for 2012 and $7,213 for 2011) | 51,959 | 52,555 | ||||||
Less accumulated depreciation | (139,950 | ) | (148,930 | ) | ||||
Total real estate | 928,390 | 988,339 | ||||||
Notes and interest receivable | ||||||||
Performing (including $79,204 in 2012 and $78,852 in 2011 from affiliates and related parties) | 79,205 | 79,161 | ||||||
Non-performing (including $0 in 2012 and $0 in 2011 from affiliates and related parties) | 2,485 | 2,152 | ||||||
Less allowance for estimated losses (including $2,097 in 2012 and $2,097 in 2011 from affiliates and related parties) | (3,942 | ) | (3,942 | ) | ||||
Total notes and interest receivable | 77,748 | 77,371 | ||||||
Cash and cash equivalents | 17,522 | 19,991 | ||||||
Investments in unconsolidated subsidiaries and investees | 5,637 | 6,362 | ||||||
Other assets | 64,485 | 68,261 | ||||||
Total assets | $ | 1,093,782 | $ | 1,160,324 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 763,862 | $ | 829,617 | ||||
Notes related to assets held for sale | 3,868 | 13,830 | ||||||
Notes related to subject to sales contracts | 55,503 | 38,376 | ||||||
Stock-secured notes payable | 2,283 | 2,482 | ||||||
Affiliate payables | 36,276 | 17,465 | ||||||
Deferred gain (from sales to related parties) | 57,136 | 65,607 | ||||||
Accounts payable and other liabilities (including $1,887 in 2012 and $1,746 in 2011 from affiliates and related parties) | 34,734 | 51,663 | ||||||
953,662 | 1,019,040 | |||||||
Shareholders’ equity: | ||||||||
Preferred stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000 shares in 2012 and 2011 respectively (liquidation preference $100 per share). Series D: $.01 par value, authorized, issued and outstanding 100,000 shares in 2012 and 2011 respectively. | 1 | 1 | ||||||
Common stock, $.01 par value, authorized 10,000,000 shares; issued 8,413,669 shares in 2012 and 2011, and outstanding 8,413,469 shares in 2012 and 2011. | 84 | 84 | ||||||
Treasury stock at cost; 200 shares in 2012 and 2011 | (2 | ) | (2 | ) | ||||
Paid-in capital | 273,332 | 273,886 | ||||||
Retained earnings | (150,160 | ) | (148,235 | ) | ||||
Total Transcontinental Realty Investors, Inc. shareholders' equity | 123,255 | 125,734 | ||||||
Non-controlling interest | 16,865 | 15,550 | ||||||
Total equity | 140,120 | 141,284 | ||||||
Total liabilities and equity | $ | 1,093,782 | $ | 1,160,324 |