Resource America (REXI) 8-K Results of Operations and Financial Condition

Resource America, Inc. Pro forma Consolidated Balance Sheet (Unaudited) As of September 30, 2004
		Resource America Consolidated		Atlas America, Inc. Consolidated		Resource America (1)		Adjustments			Resource America Pro forma Consolidated
Cash	$	69,098,714	$	29,192,293	$	39,906,421	$	10,413,312	(a)	$	67,013,733
								(1,306,000)	(b)
								18,000,000	(c)
Accounts Receivable Inter-Company		−		(10,413,312)		10,413,312		(10,413,312)	(a)		−
Accounts Receivable Trade		27,879,078		24,112,414		3,766,664		(347,000)	(b)		3,419,664
Accounts Receivable		27,879,078		13,699,102		14,179,976		(10,760,312)			3,419,664
Prepaid Expenses		27,932,044		2,432,850		25,499,194		(22,284,819)	(d)		3,214,375
Leasing assets		−		−		−		22,284,819	(d)		22,284,819
Assets Held for Sale/Disposal		102,963,152		−		102,963,152		—			102,963,152
Total Current Assets		227,872,988		45,324,245		182,548,743		16,347,000			198,895,743
Investment in subsidiary		−		−		72,477,482		(72,477,482)	(e)		−
Investment in RE Loans		23,076,805		−		23,076,805		−			23,076,805
Investment in RE Loans Venture		24,042,345		−		24,042,345		−			24,042,345
Investment in RAIT		3,025,922		−		3,025,922		−			3,025,922
Total Fixed Assets		443,662,913		379,938,743		63,724,170		(60,358,000)	(b)		3,366,170
Accum DDA		(69,470,849)		(66,847,406)		(2,623,443)		1,461,000	(b)		(1,162,443)
Net Fixed Assets		374,192,064		313,091,337		61,100,727		(58,897,000)			2,203,727
Other Assets – Goodwill (net)		37,470,338		37,470,338		−		−			−
Deferred Income Tax		−		−		−		1,764,951	(f)		1,764,951
Intangible Assets		7,432,994		7,243,451		189,543		−			189,543
FIN 46 Assets		418		−		418		42,558,000	(b)		42,558,418
Other Assets		28,592,484		7,954,769		20,637,715		(8,000)	(b)		20,629,715
	$	725,706,358	$	411,084,140	$	387,099,700		($70,712,531)		$	316,387,169
Current Portion Debt – Leasing	$	14,638,431	$	3,401,431	$	11,237,000		($790,000)	(b)		10,447,000
Accounts Payable Trade		25,413,607		20,869,139		4,544,468		(4,036,000)	(b)		508,468
Accrued Interest		279,645		201,598		78,047		−			78,047
Accrued Liability		38,398,174		23,379,531		15,018,643		(481,000)	(b)		14,537,643
Liability Held for Sale/Disposal		65,299,655		−		65,299,655		−			65,299,655
Billings in Excess of Costs on        Uncompleted Contract		29,375,398		29,375,398		−		−			−
Total Current Liabilities		173,404,910		77,227,097		96,177,813		(5,307,000)			90,870,813
Non-Recourse Debt		104,930,285		82,081,285		22,849,000		(22,849,000)	(b)		18,000,000
								18,000,000	(c)
Other Debt – Leasing		9,765,885		157,934		9,607,951					9,607,951
Long-Term Debt less Current Portion		114,696,170		82,239,219		32,456,951		(4,849,000)			27,607,951
LT Liability		9,262,233		6,948,661		2,313,572		(1,835,000)	(b)		478,572
FIN 46 Liabilities		377		−		377		11,991,000	(b)		11,991,377
Deferred Income Tax		19,676,808		21,441,759		(1,764,951)		1,764,951	(f)		−
Minority Interests		150,749,922		132,224,000		−		−			−
Total Stockholders' Equity		257,915,938		91,003,404		257,915,938		(72,477,482)	(e)		185,438,456
	$	725,706,358	$	411,084,140	$	387,099,700		($70,712,531)		$	316,387,169

1.      Revised to present Resource America, Inc.’s ownership of Atlas America, Inc. on the equity method.

SEE NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET

Notes to Pro Forma
Consolidated Balance Sheet

a.      Reflects the repayment of inter-company debt by Atlas America to Resource America.

b.      Reflects to reclassification to FIN 46 assets and liabilities.

c.      Reflects an adjustment to cash for funds available under our credit facilities

d.      Reflects the reclassification of equipment leasing assets.

e.      Reflects the distribution of Resource America’s ownership in Atlas America to its stockholders.

f.      Reflects the reclassification of a deferred tax asset.