EXHIBIT 99.1
FOR: AMREP Corporation
300 Alexander Park, Suite 204
Princeton, New Jersey 08540
CONTACT: Peter M. Pizza
Vice President and Chief Financial Officer
(609) 716-8210
(609) 716-8255 (fax)
AMREP REPORTS BEST YEAR IN ITS HISTORY,
WITH RECORD REVENUES, NET INCOME AND EARNINGS PER SHARE,
DESPITE LOWER FOURTH QUARTER RESULTS VERSUS PRIOR YEAR
COMPANY ALSO ANNOUNCES A SPECIAL CASH
DIVIDEND OF $1.00 PER SHARE AND AUTHORIZATION
TO REPURCHASE UP TO 500,000 SHARES OF ITS COMMON STOCK
Princeton, New Jersey, July 16, 2007 - AMREP Corporation (NYSE: AXR) today
reported net income of $45,106,000, or $6.78 per share, for its fiscal year
ended April 30, 2007 compared to net income of $26,050,000, or $3.93 per share,
in fiscal 2006. The 2007 results consisted of net income from continuing
operations of $46,697,000, or $7.02 per share, and a net loss from discontinued
operations of $1,591,000, or $0.24 per share, versus net income from continuing
operations of $22,494,000, or $3.39 per share, and net income from discontinued
operations of $3,556,000, or $0.54 per share, in 2006. Fiscal 2007 revenues were
$204,839,000 compared to $148,296,000 in fiscal 2006. Fiscal 2007 net income and
earnings per share were records for any year in the Company's history and were
primarily attributable to higher gross profits associated with increased land
sales at the Company's AMREP Southwest subsidiary. Fiscal 2007 revenues also set
a new Company record.
For the fourth quarter of fiscal 2007, net income was $6,310,000, or $0.95 per
share, compared to net income of $10,389,000, or $1.56 per share, in the same
period of 2006. Fourth quarter 2007 net income consisted of income from
continuing operations of $7,901,000, or $1.19 per share, and a loss from
discontinued operations of $1,591,000, or $0.24 per share, while results for the
fourth quarter of 2006 were entirely from continuing operations. Fourth quarter
2007 revenues were $48,326,000 versus $47,846,000 in the same period last year.
Net income from discontinued operations in 2006 reflected the first quarter gain
from the disposition of the primary assets of the Company's El Dorado, New
Mexico water utility subsidiary, which were taken through condemnation
proceedings, while the loss from discontinued operations reported in the fourth
quarter of 2007 resulted from the settlement of all litigation related to that
subsidiary.
Revenues from land sales at AMREP Southwest increased from $57,810,000 in fiscal
2006 to $95,825,000 in fiscal 2007 due to higher average selling prices and
increased sales of both developed and undeveloped lots as well as commercial and
industrial property in the Company's principal market of Rio Rancho, New Mexico.
Fourth quarter revenues from land sales decreased from $26,129,000 last year to
$15,065,000 in the current year reflecting a softening of the Rio Rancho real
estate market in recent months. The average gross profit percentage on land
sales increased from 62% and 54% in the fourth quarter and full year of fiscal
2006 to 68% in each of the comparable periods of fiscal 2007 as a result of both
higher average selling prices in 2007 and a change in the mix of developed and
undeveloped residential lots sold in each of the periods. The pretax profit from
real estate operations increased for all of fiscal 2007 versus 2006, but for the
fourth quarter was less in 2007 than in 2006 on lower revenues. 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.
Revenues from the Company's Kable Media Services, Inc. subsidiary increased from
$21,164,000 and $88,463,000 in the fourth quarter and full year of fiscal 2006
to $32,173,000 and $100,505,000 in the same periods of fiscal 2007. These
increases were primarily due to the January 16, 2007 acquisition by Kable's
Fulfillment Services segment of Palm Coast Data Holdco, Inc, which through its
subsidiary, Palm Coast Data LLC, is a major provider of fulfillment services for
magazine publishers and others. As a result of this acquisition, Kable has
solidified its position as the second largest provider of subscription
fulfillment services to magazine publishers in the United States. Within Kable
Media Services, which includes both Newsstand Distribution Services and
Fulfillment Services, commission revenues from the Newsstand Distribution
Services segment increased by approximately 4% and 6% for the three and twelve
month periods ended April 30, 2007 versus the same periods of fiscal 2006,
largely as the result of new business, while there was a decline in revenues of
the Fulfillment Services segment before taking into account the Palm Coast
acquisition.
On a separate matter, AMREP announced that its Board of Directors today declared
a special cash dividend of $1.00 per share payable on August 24, 2007 to
shareholders of record at the close of business on August 10, 2007. At the same
time, the Board also authorized the Company to repurchase up to 500,000 shares
of its outstanding common stock. The purchases may be made from time-to-time
either in the open market or through negotiated private transactions with
non-affiliates of the Company. No assurance can be given as to the time period
over which any shares will be purchased or as to whether or to what extent the
share purchase program will be consummated. The Company expects to fund any
share purchases from internally generated cash or from borrowings. The Company
now has 6,653,612 shares of common stock outstanding, and the 500,000 shares
authorized to be repurchased equal approximately 7.5% of such outstanding
shares.
AMREP Corporation's AMREP Southwest Inc. subsidiary is a major landholder and
leading developer of real estate in Rio Rancho, New Mexico, and its Kable Media
Services, Inc. subsidiary distributes magazines to wholesalers and provides
subscription fulfillment and related services to publishers and others.
-----------------------
(Financial Data Follows)
AMREP CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Ended April 30,
----------------------------
2007 2006
---- ----
Revenues $ 48,326,000 $ 47,846,000
Net income (loss):
Continuing operations $ 7,901,000 $ 10,389,000
Discontinued operations (1,591,000) -
----------------- ----------------
$ 6,310,000 $ 10,389,000
----------------- ----------------
Earnings (loss) per share - Basic and Diluted:
Continuing operations $ 1.19 $ 1.56
Discontinued operations (0.24) -
----------------- ----------------
$ 0.95 $ 1.56
----------------- ----------------
Weighted average number of common shares
outstanding 6,653,000 6,640,000
----------------- ----------------
Twelve Months Ended April 30,
-----------------------------
2007 2006
---- ----
Revenues $ 204,839,000 $ 148,296,000
Net income (loss):
Continuing operations $ 46,697,000 $ 22,494,000
Discontinued operations (1,591,000) 3,556,000
----------------- ----------------
$ 45,106,000 $ 26,050,000
----------------- ----------------
Earnings (loss) per share - Basic and Diluted:
Continuing operations $ 7.02 $ 3.39
Discontinued operations (0.24) 0.54
----------------- ----------------
$ 6.78 $ 3.93
----------------- ----------------
Weighted average number of common shares
outstanding 6,650,000 6,633,000
----------------- ----------------
####