EXHIBIT 99.1
FOR: AMREP Corporation
641 Lexington Avenue
New York, NY 10022
CONTACT: Peter M. Pizza
Vice President and
Chief Financial Officer
(212) 705-4700
FOR IMMEDIATE RELEASE
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AMREP REPORTS FIRST QUARTER RESULTS
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NEW YORK, September 14, 2004 - AMREP Corporation (NYSE:AXR) today reported net
income of $4,026,000, or $0.61 per share, for its fiscal 2005 first quarter
ended July 31, 2004, compared to net income of $3,531,000, or $0.54 per share,
in the first quarter of the prior fiscal year. First quarter revenues were
$34,233,000 this year compared to $33,617,000 last year.
Revenues from the Fulfillment Services business of our Kable News Company
subsidiary were $20,469,000 in the first quarter of 2005 compared to $22,744,000
in the first quarter of 2004, while revenues from Kable's Newsstand Distribution
Services business were $3,181,000 versus $3,249,000 in the same period last
year. The decrease in Fulfillment Services' revenues was principally the result
of customer losses in fiscal 2004 at Kable's Colorado fulfillment business which
had been identified and known prior to Kable's acquisition of that business in
April 2003. The revenue decreases in both business segments were substantially
matched by cost and other expense reductions, and the pretax income contribution
of Fulfillment Services was $1,805,000 in this year's first quarter compared to
$1,936,000 in the same period last year, while Newsstand Services' pretax income
contribution increased from $338,000 in last year's first quarter to $514,000
this year.
Revenues from land sales at the Company's AMREP Southwest subsidiary increased
from $6,394,000 in the first quarter of 2004 to $9,682,000 in the first quarter
of 2005, principally as a result of the settlement of a condemnation proceeding
involving a parcel of land in Florida. An increase in residential lot sales in
the Company's principal market of Rio Rancho, New Mexico was partly offset by a
decrease in commercial property sales in that market. The pretax income
contribution from land sale operations increased from $3,247,000 in the first
quarter of 2004 to $3,910,000 for the same period of 2005. The first quarter
gross profit percentage on land sales decreased from 59% in 2004 to 54% in 2005
due to the change in the mix of residential versus commercial lots sold, since
residential lots generally have a lower gross profit margin than commercial
lots. As previously reported, revenues and related gross profits from land sales
can vary significantly from period to period as a result of many factors,
including the nature and timing of specific transactions, so that prior results
are not necessarily a good indication of what may occur in future periods.
AMREP Corporation's Kable News Company, Inc. subsidiary distributes magazines to
wholesalers and provides subscription fulfillment and related services to
publishers and others, and its AMREP Southwest Inc. subsidiary is a major
landholder and leading developer of real estate in New Mexico.
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AMREP Corporation
and Subsidiaries
Financial Highlights
(Unaudited)
Three Months Ended July 31,
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2004 2003
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Revenues $ 34,233,000 $ 33,617,000
Net income $ 4,026,000 $ 3,531,000
Income per share - Basic and Diluted $ 0.61 $ 0.54
Weighted average number of
common shares outstanding 6,606,000 6,589,000
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