Income Opportunity Realty Investors (IOR) 8-K Results of Operations and Financial Condition

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
	(dollars in thousands, except share and per share amounts)
Revenues:
Rental and other property revenues	$	-		$	-		$	-		$	-
Expenses:
Property operating expenses (including $14 and $0 for the three months and $43 and $2 for the six months ended 2012 and 2011 respectively from affiliates and related parties)		14			3			45			11
General and administrative (including $117 and $61 for the three months and $200 and $116 for the six months ended 2012 and 2011 respectively from affiliates and related parties)		207			182			360			276
Advisory fee to affiliates		205			211			402			431
Total operating expenses		426			396			807			718
Operating loss		(426	)		(396	)		(807	)		(718	)
Other income (expense):
Interest income (including $1,713 and $723 for the three months and $2,896 and $1,017 for the six months ended 2012 and 2011 respectively from affiliates and related parties)		1,713			723			2,896			1,017
Mortgage and loan interest		(277	)		(365	)		(552	)		(646	)
Earnings from unconsolidated subsidiaries and investees		(12	)		(50	)		(23	)		(50	)
Total other income		1,424			308			2,321			321
Income (loss) from continuing operations before tax		998			(88	)		1,514			(397	)
Income tax expense		-			(503	)		(3	)		(502	)
Net income (loss) from continuing operations		998			(591	)		1,511			(899	)
Discontinued operations:
Loss from discontinued operations		-			(1,437	)		(9	)		(1,435	)
Income tax benefit from discontinued operations		-			503			3			502
Net loss from discontinued operations		-			(934	)		(6	)		(933	)
Net income (loss)		998			(1,525	)		1,505			(1,832	)
Earnings per share - basic
Income (loss) from continuing operations	$	0.24		$	(0.14	)	$	0.36		$	(0.22	)
Loss from discontinued operations		-			(0.22	)		-			(0.22	)
Net income (loss) applicable to common shares	$	0.24		$	(0.36	)	$	0.36		$	(0.44	)
Earnings per share - diluted
Income (loss) from continuing operations	$	0.24		$	(0.14	)	$	0.36		$	(0.22	)
Loss from discontinued operations		-			(0.22	)		-			(0.22	)
Net income (loss) applicable to common shares	$	0.24		$	(0.36	)	$	0.36		$	(0.44	)
Weighted average common share used in computing earnings per share		4,168,214			4,168,214			4,168,214			4,168,214
Weighted average common share used in computing diluted earnings per share		4,168,214			4,168,214			4,168,214			4,168,214

INCOME OPPORTUNITY 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 land holdings, at cost	$	24,511		$	24,511
Total real estate		24,511			24,511
Notes and interest receivable from related parties		27,073			31,612
Less allowance for doubtful accounts		(1,826	)		(1,826	)
Total notes and interest receivable		25,247			29,786
Cash and cash equivalents		11			1
Investments in unconsolidated subsidiaries and investees, subject to sales contract		14			37
Receivable and accrued interest from related parties		58,206			52,160
Other assets		1,507			1,546
Total assets	$	109,496		$	108,041
Liabilities and Shareholders’ Equity
Liabilities:
Notes and interest payable	$	28,470		$	28,588
Deferred gain (from sales to related parties)		5,127			5,127
Accounts payable and other liabilities		193			125
		33,790			33,840
Commitments and contingencies:
Shareholders’ equity:
Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2012 and 2011		42			42
Treasury stock at cost, 5,461 in 2012 and 2011		(39	)		(39	)
Paid-in capital		61,955			61,955
Retained earnings		13,748			12,243
Total shareholders' equity		75,706			74,201
Total liabilities and shareholders' equity	$	109,496		$	108,041
The accompanying notes are an integral part of these financial statements.