Attached files
| file | filename |
|---|---|
| 8-K - AMERICAN SPECTRUM REALTY, INC. 8-K - AMERICAN SPECTRUM REALTY INC | a6667025.htm |
Exhibit 99.1
American Spectrum Realty Reports Filing of Its 2010 Form 10-K
HOUSTON--(BUSINESS WIRE)--March 31, 2011--American Spectrum Realty, Inc. (AMEX:AQQ) (“the Company”), a real investment, management and leasing company headquartered in Houston, Texas, announced today that it has filed its Annual Report on Form 10-K with the Securities and Exchange Commission.
In connection with the preparation of the Annual Report and its 2010 financial statements, the Company concluded that it was appropriate to revise its accounting treatment of its purchase of assets from Evergreen Realty Group and to account for certain acquired interests as variable interest entities (VIE’s) and to consolidate those VIE’s in its financial statements. The Company’s 2010 financial statements treat the Evergreen acquisition as a business combination rather than an asset acquisition and consolidate certain VIE’s from various dates in 2010.
Also in this correction, the Company determined that it would be appropriate to restate its financial statements for the first three quarters of 2010 to reflect the business combination and the consolidation of the VIE’s. This attached schedule indicated the items in the quarterly financial statements which are being restated.
American Spectrum Realty, Inc. is a real estate investment company that owns, through an operating partnership, 30 office, industrial and retail properties aggregating approximately 2.8 million square feet in California, Texas, Arizona and the Midwest, and has been publicly traded since 2001. American Spectrum Realty Management, LLC, a wholly-owned subsidiary of the Company’s operating partnership, manages and leases all properties owned by American Spectrum Realty, Inc.
Certain matters discussed in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company’s past and current filings with the U.S. Securities and Exchange Commission.
- Financial Tables Follow -
The following tables summarize the impact of the restatement discussed above on the previously issued Consolidated Financial Statements as of, and for the periods ended March 31, June 30 and Sept 30, 2010 (dollars in thousands except per share data):
|
As (unaudited) |
Adjustment (unaudited) |
Restated (unaudited) |
||||||||||
| Statement of Operations for the Three Months Ended Mar 31, 2010 | ||||||||||||
| Rental revenue | $ | 8,183 | - | $ | 8,183 | |||||||
| Third party management and transaction revenue | 1,104 | - | 1,104 | |||||||||
| Total revenues | 9,211 | - | 9,211 | |||||||||
| Property operating expense | 3,625 | - | 3,625 | |||||||||
| Depreciation and amortization | 3,570 | 191 | 3,761 | |||||||||
| Interest expense | 3,400 | - | 3,400 | |||||||||
| Total expenses | 12,217 | 191 | 12,408 | |||||||||
| Deferred income tax benefit | 1,134 | 70 | 1,204 | |||||||||
| Net income attributable to non-controlling interests | (466 | ) | 32 | (434 | ) | |||||||
| Net income attributable to American Spectrum Realty, Inc. | 509 | (89 | ) | 420 | ||||||||
| Net income attributable to American Spectrum Realty, Inc. common stockholders |
449 |
(89 |
) |
360 |
||||||||
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |
$ |
0.18 |
(0.03 |
) |
$ |
0.15 |
||||||
| Statement of Operations for the Three Months Ended Jun 30, 2010 | ||||||||||||
| Rental revenue | $ | 7,603 | 489 | $ | 8,092 | |||||||
| Third party management and transaction revenue | 1,221 | (19 | ) | 1,202 | ||||||||
| Total revenues | 8,837 | 470 | 9,307 | |||||||||
| Property operating expense | 3,913 | (3 | ) | 3,910 | ||||||||
| Depreciation and amortization | 3,579 | 496 | 4,075 | |||||||||
| Interest expense | 3,524 | 214 | 3,738 | |||||||||
| Total expenses | 13,532 | 707 | 14,239 | |||||||||
| Deferred income tax benefit | 1,762 | 105 | 1,867 | |||||||||
| Net loss attributable to non-controlling interests | 878 | 11 | 889 | |||||||||
| Net loss attributable to American Spectrum Realty, Inc. | (2,055 | ) | (121 | ) | (2,176 | ) | ||||||
|
Net loss attributable to American Spectrum Realty, Inc. common
Stockholders |
(2,115 |
) |
(121 |
) |
(2,236 |
) |
||||||
|
Basic and diluted earnings per share attributable to American
Spectrum
Realty, Inc. common stockholders |
$ |
(0.70 |
) |
(0.04 |
) |
$ |
(0.74 |
) |
||||
| Statement of Operations for the Six Months Ended Jun 30, 2010 | ||||||||||||
| Rental revenue | $ | 15,786 | 489 | $ | 16,275 | |||||||
| Third party management and transaction revenue | 2,235 | 71 | 2,306 | |||||||||
| Total revenues | 18,048 | 470 | 18,518 | |||||||||
| Property operating expense | 7,538 | (3 | ) | 7,535 | ||||||||
| Depreciation and amortization | 7,149 | 687 | 7,836 | |||||||||
| Interest expense | 6,924 | 214 | 7,138 | |||||||||
| Total expenses | 25,749 | 898 | 26,647 | |||||||||
| Deferred income tax benefit | 2,896 | 175 | 3,071 | |||||||||
| Net loss attributable to non-controlling interests | 412 | 43 | 455 | |||||||||
| Net loss attributable to American Spectrum Realty, Inc. | (1,546 | ) | (210 | ) | (1,756 | ) | ||||||
|
Net loss attributable to American Spectrum Realty, Inc. common
Stockholders |
(1,666 |
) |
(210 |
) |
(1,876 |
) |
||||||
|
Basic and diluted earnings per share attributable to American
Spectrum
Realty, Inc. common stockholders |
$ |
(.52 |
) |
(.07 |
) |
$ |
(.59 |
) |
||||
| Statement of Operations for the Three Months Ended Sep 30, 2010 | ||||||||||||
| Rental revenue | $ | 8,307 | 8,424 | $ | 16,731 | |||||||
| Third party management and transaction revenue | 973 | (289 | ) | 684 | ||||||||
| Total revenues | 9,420 | 8,135 | 17,555 | |||||||||
| Property operating expense | 4,703 | 2,136 | 6,839 | |||||||||
| Depreciation and amortization | 3,608 | 4,146 | 7,754 | |||||||||
| Interest expense | 3,494 | 3,318 | 6,812 | |||||||||
| Total expenses | 14,362 | 9,600 | 23,962 | |||||||||
| Deferred income tax benefit | 1,697 | 105 | 1,802 | |||||||||
| Net loss attributable to non-controlling interests | 1,092 | 1,241 | 2,333 | |||||||||
| Net loss attributable to American Spectrum Realty, Inc. | (2,153 | ) | (119 | ) | (2,272 | ) | ||||||
|
Net loss attributable to American Spectrum Realty, Inc. common
Stockholders |
(2,213 |
) |
(119 |
) |
(2,332 |
) |
||||||
|
Basic and diluted earnings per share attributable to American
Spectrum
Realty, Inc. common stockholders |
$ |
(0.73 |
) |
(.04 |
) |
$ |
(0.77 |
) |
||||
| Statement of Operations for the Nine Months Ended Sep 30, 2010 | ||||||||||||
| Rental revenue | $ | 24,093 | 8,913 | $ | 33,006 | |||||||
| Third party management and transaction revenue | 3,208 | 218 | 3,426 | |||||||||
| Total revenues | 27,468 | 8,605 | 36,073 | |||||||||
| Property operating expense | 12,241 | 2,133 | 14,374 | |||||||||
| Depreciation and amortization | 10,757 | 4,833 | 15,590 | |||||||||
| Interest expense | 10,418 | 3,532 | 13,950 | |||||||||
| Total expenses | 40,111 | 10,498 | 50,609 | |||||||||
| Deferred income tax benefit | 4,593 | 280 | 4,873 | |||||||||
| Net loss attributable to non-controlling interests | 1,504 | 1,284 | 2,788 | |||||||||
| Net loss attributable to American Spectrum Realty, Inc. | (3,699 | ) | (329 | ) | (4,028 | ) | ||||||
|
Net loss attributable to American Spectrum Realty, Inc. common
Stockholders |
(3,879 |
) |
(329 |
) |
(4,208 |
) |
||||||
|
Basic and diluted earnings per share attributable to American
Spectrum
Realty, Inc. common stockholders |
$ |
(1.27 |
) |
(.09 |
) |
$ |
(1.36 |
) |
||||
| Balance Sheet as of March 31, 2010 | ||||||||||||
| Real estate held for investment | $ | 252,375 | 21,925 | $ | 274,300 | |||||||
| Accumulated depreciation | (75,673 | ) | (4 | ) | (75,677 | ) | ||||||
| Restricted cash | 992 | 925 | 1,917 | |||||||||
| Deferred tax asset | 8,348 | 70 | 8,418 | |||||||||
| Investments in unconsolidated real estate assets from related parties | - | 375 | 375 | |||||||||
| Purchased intangibles subject to amortization | 18,000 | (4,713 | ) | 13,287 | ||||||||
| Goodwill | - | 4,003 | 4,003 | |||||||||
| Prepaid and other assets, net | 10,956 | 940 |
118,966 |
|||||||||
| Total Assets | 227,944 | 23,521 | 251,465 | |||||||||
| Notes payable | 203,863 | 15,234 | 219,097 | |||||||||
| Accounts payable | 6,377 | 75 | 6,452 | |||||||||
| Accrued and other liabilities | 8,431 | 848 | 9,279 | |||||||||
| Total Liabilities | 220,114 | 16,157 | 236,271 | |||||||||
| Accumulated deficit | (51,963 | ) | (89 | ) | (52,052 | ) | ||||||
| Non-controlling interests | 11,976 | 7,453 | 19,429 | |||||||||
| American Spectrum Realty, Inc. stockholders’ equity (deficit) | (5,931 | ) | (89 | ) | (6,020 | ) | ||||||
| Total Equity (Deficit) | 6,045 | 7,364 | 13,409 | |||||||||
| Total Liabilities and Equity (Deficit) | $ | 227,944 | 23,521 | $ | 251,465 | |||||||
| Balance Sheet as of June 30, 2010 | ||||||||||||
| Real estate held for investment | $ | 263,359 | 322,197 | $ | 585,556 | |||||||
| Accumulated depreciation | (79,238 | ) | (218 | ) | (79,456 | ) | ||||||
| Restricted cash | 992 | 3,371 | 4,363 | |||||||||
| Tenant and other receivables, net of allowance for doubtful accounts | 1,314 | 262 | 1,576 | |||||||||
| Deferred tax asset | 10,146 | 175 | 10,321 | |||||||||
| Investments in unconsolidated real estate assets from related parties | 1,386 | 141 | 1,527 | |||||||||
| Purchased intangibles subject to amortization | 18,000 | (4,994 | ) | 13,006 | ||||||||
| Goodwill | - | 4,003 | 4,003 | |||||||||
| Prepaid and other assets, net | 11,803 | 4,673 | 16,476 | |||||||||
| Total Assets | 239,867 | 329,610 | 569,477 | |||||||||
| Notes payable | 214,663 | 226,725 | 441,388 | |||||||||
| Accounts payable | 6,125 | 3,227 | 9,352 | |||||||||
| Accrued and other liabilities | 9,132 | 1,565 | 10,697 | |||||||||
| Total Liabilities | 231,287 | 231,517 | 462,804 | |||||||||
| Accumulated deficit | (54,018 | ) | (210 | ) | (54,228 | ) | ||||||
| Non-controlling interests | 16,600 | 98,303 | 114,903 | |||||||||
| American Spectrum Realty, Inc. stockholders’ equity (deficit) | (8,020 | ) | (210 | ) | (8,230 | ) | ||||||
| Total Equity (Deficit) | 8,580 | 98,093 | 106,673 | |||||||||
| Total Liabilities and Equity (Deficit) | $ | 239,867 | 329,610 | $ | 569,477 | |||||||
| Balance Sheet as of September 30, 2010 | ||||||||||||
| Real estate held for investment | $ | 280,033 | 338,471 | $ | 618,504 | |||||||
| Accumulated depreciation | (82,344 | ) | (4,084 | ) | (86,428 | ) | ||||||
| Restricted cash | 992 | 2,908 | 3,900 | |||||||||
| Tenant and other receivables, net of allowance for doubtful accounts | 1,223 | 515 | 1,738 | |||||||||
| Deferred tax asset | 11,883 | 280 | 12,163 | |||||||||
| Investments in unconsolidated real estate assets from related parties | 142 | 129 | 271 | |||||||||
| Purchased intangibles subject to amortization | 18,000 | (5,275 | ) | 12,725 | ||||||||
| Goodwill | - | 4,003 | 4,003 | |||||||||
| Prepaid and other assets, net | 12,821 | 5,860 | 18,681 | |||||||||
| Total Assets | 253,736 | 342,807 | 596,543 | |||||||||
| Notes payable | 221,187 | 240,509 | 461,696 | |||||||||
| Accounts payable | 8,408 | 4,315 | 12,723 | |||||||||
| Accrued and other liabilities | 11,008 | 1,168 | 12,176 | |||||||||
| Total Liabilities | 242,298 | 245,992 | 488,290 | |||||||||
| Accumulated deficit | (56,171 | ) | (329 | ) | (56,500 | ) | ||||||
| Non-controlling interests | 21,641 | 97,144 | 118,785 | |||||||||
| American Spectrum Realty, Inc. stockholders’ equity (deficit) | (10,203 | ) | (329 | ) | (10,532 | ) | ||||||
| Total Equity (Deficit) | 11,438 | 96,815 | 108,253 | |||||||||
| Total Liabilities and Equity (Deficit) | $ | 253,736 | 342,807 | $ | 596,543 | |||||||
CONTACT:
American Spectrum Realty, Inc.
William J. Carden,
713-706-6200
Chairman, President and CEO