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
NEW YORK, September 12, 2005 - AMREP Corporation (NYSE:AXR) today reported net
income of $5,364,000, or $0.81 per share, for its fiscal 2006 first quarter
ended July 31, 2005, compared to net income of $4,026,000, or $0.61 per share,
in the first quarter of the prior fiscal year. This consisted of 2006 first
quarter net income from continuing operations of $1,802,000, or $0.27 per share,
and from discontinued operations of $3,562,000, or $0.54 per share, versus
$3,941,000, or $0.60 per share, and $85,000, or $0.01 per share, in the same
period last year. Revenues were $30,014,000 in the first quarter this year
versus $33,638,000 in the first quarter of fiscal 2005.
Net income from discontinued operations in the first quarter of 2006 was the
result of the after-tax gain (including interest and net of expenses) on the
disposition through condemnation proceedings of the primary assets of the
Company's El Dorado, New Mexico water utility subsidiary. Financial information
for operations from prior periods has been reclassified to conform to this
presentation.
Revenues from the Company's Kable Media Services, Inc. subsidiary were
$22,155,000 in the first quarter of 2006 compared to $23,650,000 in the same
quarter last year. This 6.3% decrease was the result of a 9.4% revenue decline
in Kable's Fulfillment Services segment offset in part by a 13.5% revenue
increase in its Newsstand Distribution Services business. The decline in
Fulfillment Services revenues was principally the result of customer losses at
Kable's Colorado fulfillment business that occurred throughout fiscal 2005, most
of which had been identified prior to the Company's acquisition of that business
in April 2003, while the increase in revenues of Newsstand Distribution Services
resulted from increased sales of magazines distributed due, in part, to
additional business obtained from the purchase of certain distribution contracts
in the third quarter of fiscal 2005. Kable's operating expenses decreased 2.2%
in the first quarter of 2006 compared to the same period last year, with the
operating expenses of Fulfillment Services decreasing 3.8% for this period,
primarily due to reduced payroll resulting from the revenue decrease. Operating
costs for Newsstand Distribution Services increased 12.5% in the first three
months of 2006 compared to the same period last year as a result of costs
associated with the distribution contracts purchased in the third quarter of
fiscal 2005.
Revenues at the Company's AMREP Southwest Real Estate subsidiary decreased from
$9,965,000 in the first quarter of 2005 to $7,689,000 in the first quarter of
2006, mainly because the prior year included $1,913,000 of revenues from the
settlement of condemnation proceedings involving the Company's last remaining
parcel of land in Florida. Revenues from land sales in the Company's core market
of Rio Rancho, New Mexico were $7,409,000 in the first three months of 2006
compared to $7,769,000 in 2005's first quarter. The gross profit percentage on
Rio Rancho land sales in the first quarter decreased from 53% in 2005 to 36% in
2006 due to a change in the mix of developed versus unimproved lots sold, as
sales in the first quarter of 2006 included a greater proportion of developed
lots (which generally have a lower gross profit margin than unimproved lots)
than was the case in the first quarter of 2005. 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, and
prior results are not necessarily a good indication of what may occur in future
periods.
AMREP Corporation's Kable Media Services, 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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2005 2004
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Revenues $ 30,014,000 $ 33,638,000
Net income:
Continuing operations $ 1,802,000 $ 3,941,000
Discontinued operations 3,562,000 85,000
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$ 5,364,000 $ 4,026,000
Earnings per share - Basic and
Diluted:
Continuing operations $ 0.27 $ 0.60
Discontinued operations 0.54 0.01
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$ 0.81 $ 0.61
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Weighted average number of common
shares outstanding 6,626,000 6,606,000
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