![](https://capedge.com/proxy/8-K/0001010549-13-000361/pr.jpg)
TRANSCONTINENTAL REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
For the Three Months Ended | ||||||||
2013 | 2012 | |||||||
(dollars in thousands, except share and per share amounts) | ||||||||
Revenues: | ||||||||
Rental and other property revenues (including $165 and $167 for the three months ended 2013 and 2012 respectively from related parties) | $ | 27,277 | $ | 27,215 | ||||
Expenses: | ||||||||
Property operating expenses (including $259 and $291 for the three months ended 2013 and 2012 respectively from related parties) | 13,319 | 13,020 | ||||||
Depreciation and amortization | 5,021 | 5,157 | ||||||
General and administrative (including $704 and $666 for the three months ended 2013 and 2012 respectively from related parties) | 1,837 | 2,463 | ||||||
Provision on impairment of notes receivable and real estate assets | - | - | ||||||
Advisory fee to related party | 2,138 | 2,303 | ||||||
Total operating expenses | 22,315 | 22,943 | ||||||
Operating income | 4,962 | 4,272 | ||||||
Other income (expense): | ||||||||
Interest income (including $2,139 and $3,225 for the three months ended 2013 and 2012 respectively from related parties) | 2,176 | 3,229 | ||||||
Other income (including $0 and $1,500 for the three months ended 2013 and 2012 respectively from related parties) | 36 | 1,611 | ||||||
Mortgage and loan interest (including $487 and $754 for the three months ended 2013 and 2012 respectively from related parties) | (9,987 | ) | (12,477 | ) | ||||
Deferred borrowing costs amortization | (2,433 | ) | (896 | ) | ||||
Loan charges and prepayment penalties | (3,982 | ) | (2,392 | ) | ||||
Earnings (losses) from unconsolidated subsidiaries and investees | 8 | (73 | ) | |||||
Total other expenses | (14,182 | ) | (10,998 | ) | ||||
Loss before gain on land sales, non-controlling interest, and taxes | (9,220 | ) | (6,726 | ) | ||||
Gain (loss) on land sales | (48 | ) | 423 | |||||
Loss from continuing operations before tax | (9,268 | ) | (6,303 | ) | ||||
Income tax benefit | 2,195 | 761 | ||||||
Net loss from continuing operations | (7,073 | ) | (5,542 | ) | ||||
Discontinued operations: | ||||||||
Income (loss) from discontinued operations | 80 | (1,413 | ) | |||||
Gain on sale of real estate from discontinued operations | 6,190 | 3,588 | ||||||
Income tax expense from discontinued operations | (2,195 | ) | (761 | ) | ||||
Net income from discontinued operations | 4,075 | 1,414 | ||||||
Net loss | (2,998 | ) | (4,128 | ) | ||||
Net income attributable to non-controlling interest | (111 | ) | (79 | ) | ||||
Net loss attributable to Transcontinental Realty Investors, Inc. | (3,109 | ) | (4,207 | ) | ||||
Preferred dividend requirement | (274 | ) | (277 | ) | ||||
Net loss applicable to common shares | $ | (3,383 | ) | $ | (4,484 | ) | ||
Earnings per share - basic | ||||||||
Loss from continuing operations | $ | (0.89 | ) | $ | (0.70 | ) | ||
Income from discontinued operations | 0.48 | 0.17 | ||||||
Net loss applicable to common shares | $ | (0.41 | ) | $ | (0.53 | ) | ||
Earnings per share - diluted | ||||||||
Loss from continuing operations | $ | (0.89 | ) | $ | (0.70 | ) | ||
Income from discontinued operations | 0.48 | 0.17 | ||||||
Net loss applicable to common shares | $ | (0.41 | ) | $ | (0.53 | ) | ||
Weighted average common share used in computing earnings per share | 8,413,469 | 8,413,469 | ||||||
Weighted average common share used in computing diluted earnings per share | 8,413,469 | 8,413,469 | ||||||
Amounts attributable to Transcontinental Realty Investors, Inc. | ||||||||
Loss from continuing operations | $ | (7,184 | ) | $ | (5,621 | ) | ||
Income from discontinued operations | 4,075 | 1,414 | ||||||
Net loss | $ | (3,109 | ) | $ | (4,207 | ) |
TRANSCONTINENTAL REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
March 31, | December 31, | |||||||
2013 | 2012 | |||||||
(dollars in thousands, except share and par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 948,504 | $ | 978,781 | ||||
Real estate held for sale at cost, net of depreciation ($11,164 for 2013 and $4,658 for 2012) | 20,237 | 18,077 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($16,688 for 2013 and $16,412 for 2012) | 42,874 | 45,706 | ||||||
Less accumulated depreciation | (139,345 | ) | (145,614 | ) | ||||
Total real estate | 872,270 | 896,950 | ||||||
Notes and interest receivable | ||||||||
Performing (including $55,937 in 2013 and $58,007 in 2012 from related parties) | 58,750 | 60,637 | ||||||
Non-performing | 737 | 723 | ||||||
Less allowance for estimated losses (including $2,097 in 2013 and 2012 from related parties) | (2,262 | ) | (2,262 | ) | ||||
Total notes and interest receivable | 57,225 | 59,098 | ||||||
Cash and cash equivalents | 7,836 | 16,620 | ||||||
Related party receivables | 2,279 | - | ||||||
Investments in unconsolidated subsidiaries and investees | 5,415 | 5,439 | ||||||
Other assets | 54,586 | 67,237 | ||||||
Total assets | $ | 999,611 | $ | 1,045,344 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 712,855 | $ | 730,931 | ||||
Notes related to assets held for sale | 18,183 | 18,915 | ||||||
Notes related to subject to sales contracts | 53,838 | 55,976 | ||||||
Stock-secured notes payable | 2,212 | 2,221 | ||||||
Related party payables | - | 10,057 | ||||||
Deferred gain (from sales to related parties) | 53,096 | 53,096 | ||||||
Accounts payable and other liabilities (including $4,261 in 2013 and $4,282 in 2012 to related parties) | 29,570 | 41,019 | ||||||
869,754 | 912,215 | |||||||
Shareholders’ equity: | ||||||||
Preferred stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000 shares in 2013 and 2012 respectively (liquidation preference $100 per share) Series D: $.01 par value, authorized, issued and outstanding 100,000 shares in 2013 and 2012 respectively | 1 | 1 | ||||||
Common stock, $.01 par value, authorized 10,000,000 shares; issued 8,413,669 shares in 2013 and 2012, and outstanding 8,413,469 shares in 2013 and 2012 | 84 | 84 | ||||||
Treasury stock at cost; 200 shares in 2013 and 2012 | (2 | ) | (2 | ) | ||||
Paid-in capital | 272,500 | 272,774 | ||||||
Retained earnings | (159,668 | ) | (156,559 | ) | ||||
Total Transcontinental Realty Investors, Inc. shareholders' equity | 112,915 | 116,298 | ||||||
Non-controlling interest | 16,942 | 16,831 | ||||||
Total equity | 129,857 | 133,129 | ||||||
Total liabilities and equity | $ | 999,611 | $ | 1,045,344 |