Attached files
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8-K - FORM 8K - RESOURCE AMERICA, INC. | rexi8k0412.htm |
EX-99.1 - EXHIBIT 99.1 - RESOURCE AMERICA, INC. | exh99_1.htm |
Exhibit 99.2
Resource America, Inc.
Pro Forma Consolidated Statement of Operations
For the Fiscal Year Ended September 30, 2011
(in thousands)
Pro Forma Adjustments
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|||||||||||||||||||||
Historical
|
Deconsolidate
Apidos
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Record proceeds from sale of
Apidos to CVC
|
Other
adjustments
|
As Adjusted
|
|||||||||||||||||
REVENUES
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|||||||||||||||||||||
Real estate
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$ | 25,841 | $ | – | $ | – | $ | – | $ | 25,841 | |||||||||||
Financial fund management
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38,380 | (14,004 | ) | 2,952 | [a] | 27,328 | |||||||||||||||
Commercial finance
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21,795 | – | 21,795 | ||||||||||||||||||
86,016 | (14,004 | ) | – | 2,952 | 74,964 | ||||||||||||||||
COSTS AND EXPENSES
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|||||||||||||||||||||
Real estate
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24,465 | 24,465 | |||||||||||||||||||
Financial fund management
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20,562 | (7,343 | ) | (1,018 | ) | [b] | 12,201 | ||||||||||||||
Commercial finance
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15,207 | 15,207 | |||||||||||||||||||
General and administrative
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11,522 | 11,522 | |||||||||||||||||||
Gain on sale of leases
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(659 | ) | (659 | ) | |||||||||||||||||
Provision for possible losses
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10,661 | 10,661 | |||||||||||||||||||
Depreciation and amortization
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10,739 | 10,739 | |||||||||||||||||||
92,497 | (7,343 | ) | – | (1,018 | ) | 84,136 | |||||||||||||||
OPERATING (LOSS) INCOME
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(6,481 | ) | (6,661 | ) | – | 3,970 | (9,172 | ) | |||||||||||||
OTHER INCOME (EXPENSE)
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|||||||||||||||||||||
Gain on sale of management contract
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6,520 | 6,520 | |||||||||||||||||||
Gain on sale of subsidiaries
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– | 54,373 | [c] | 54,373 | |||||||||||||||||
Gain on extinguishment of servicing and
repurchase liabilities
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4,426 | 4,426 | |||||||||||||||||||
Losses on sale of securities
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(1,198 | ) | (1,198 | ) | |||||||||||||||||
Interest expense
|
(15,343 | ) | (15,343 | ) | |||||||||||||||||
Other income, net
|
2,242 | – | – | – | 2,242 | ||||||||||||||||
Total other income (expense)
|
(3,353 | ) | – | 54,373 | – | 51,020 | |||||||||||||||
(Loss) income from continuing operations before taxes
|
(9,834 | ) | (6,661 | ) | 54,373 | 3,970 | 41,848 | ||||||||||||||
(Benefit) provision for income taxes
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(4,607 | ) | (2,331 | ) | 19,031 | [c] | 1,390 | 13,483 | |||||||||||||
(Loss) income from continuing operations
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(5,227 | ) | (4,330 | ) | 35,342 | 2,580 | 28,365 | ||||||||||||||
Loss from discontinued operations, net of tax
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(2,202 | ) | – | – | – | (2,202 | ) | ||||||||||||||
Net (loss) income
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(7,429 | ) | (4,330 | ) | 35,342 | 2,580 | 26,163 | ||||||||||||||
Net income attributable to noncontrolling interests
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(799 | ) | – | – | – | (799 | ) | ||||||||||||||
Net (loss) income attributable to common shareholders
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$ | (8,228 | ) | $ | (4,330 | ) | $ | 35,342 | $ | 2,580 | $ | 25,364 |
Notes to pro forma statement of operations:
[a]
|
reflects the Company’s 33% pro forma equity interest in the joint venture for the year ended September 30, 2011.
|
[b]
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reflects costs the Company can charge the joint venture for shared services.
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[c]
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reflects the pro forma gain on the sale of Apidos, net of tax.
|
Resource America, Inc.
Pro Forma Consolidated Statement of Operations
For the Three Months Ended December 31, 2011
(in thousands)
Pro Forma Adjustments
|
||||||||||||||||||||
Historical
|
Deconsolidate
Apidos
|
Record proceeds
from sale of
Apidos to CVC
|
Other
adjustments
|
As Adjusted
|
||||||||||||||||
REVENUES
|
||||||||||||||||||||
Real estate
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$ | 8,666 | $ | – | $ | – | $ | – | $ | 8,666 | ||||||||||
Financial fund management | 6,579 | (3,482 | ) | 881 | [a] | 3,978 | ||||||||||||||
Commercial finance
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3,419 | – | – | – | 3,419 | |||||||||||||||
18,664 | (3,482 | ) | – | 881 | 16,063 | |||||||||||||||
COSTS AND EXPENSES
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||||||||||||||||||||
Real estate
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7,192 | 7,192 | ||||||||||||||||||
Financial fund management
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5,804 | (1,801 | ) | 4,003 | ||||||||||||||||
Commercial finance
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1,963 | 1,963 | ||||||||||||||||||
General and administrative
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2,896 | (255 | ) | [b] | 2,641 | |||||||||||||||
Gain on sale of leases
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(37 | ) | (37 | ) | ||||||||||||||||
Provision for possible losses
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2,250 | 2,250 | ||||||||||||||||||
Depreciation and amortization
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2,061 | 2,061 | ||||||||||||||||||
22,129 | (1,801 | ) | – | (255 | ) | 20,073 | ||||||||||||||
OPERATING (LOSS) INCOME
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(3,465 | ) | (1,681 | ) | – | 1,136 | (4,010 | ) | ||||||||||||
OTHER INCOME (EXPENSE)
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||||||||||||||||||||
Gain on sale of subsidiaries
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8,749 | 54,373 | [c] | 63,122 | ||||||||||||||||
Loss on extinguishment of debt
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(2,190 | ) | (2,190 | ) | ||||||||||||||||
Gains on sale of securities
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58 | 58 | ||||||||||||||||||
Interest expense
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(2,974 | ) | (2,974 | ) | ||||||||||||||||
Other income, net
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559 | – | – | – | 559 | |||||||||||||||
Total other income
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4,202 | – | 54,373 | – | 58,575 | |||||||||||||||
Income (loss) from continuing operations before taxes
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737 | (1,681 | ) | 54,373 | 1,136 | 54,565 | ||||||||||||||
Provision (benefit) for income taxes
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154 | (589 | ) | 20,118 | [c] | 420 | 20,103 | |||||||||||||
Income (loss) from continuing operations
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583 | (1,092 | ) | 34,255 | 716 | 34,462 | ||||||||||||||
Loss from discontinued operations, net of tax
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(20 | ) | – | – | – | (20 | ) | |||||||||||||
Net income (loss)
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563 | (1,092 | ) | 34,255 | 716 | 34,442 | ||||||||||||||
Net income attributable to noncontrolling interests
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(378 | ) | – | – | – | (378 | ) | |||||||||||||
Net income (loss) attributable to common shareholders
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$ | 185 | $ | (1,092 | ) | $ | 34,255 | $ | 716 | $ | 34,604 |
Notes to pro forma statement of operations:
[a]
|
reflects the Company’s 33% pro forma equity interest in the joint venture for the three months ended December 31, 2011.
|
[b]
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reflects costs the Company can charge the joint venture for shared services.
|
[c]
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reflects the pro forma gain on the sale of Apidos, net of tax.
|
Resource America, Inc.
Pro Forma Consolidated Balance Sheet
December 31, 2011
(in thousands)
Pro Forma Adjustments
|
|||||||||||||||||
Historical
|
Deconsolidate
Apidos
|
Amounts received
from sale of Apidos
at fair value
|
As Adjusted
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||||||||||||||
ASSETS
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Cash
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$ | 12,803 | $ | 68 | $ | 19,683 | [a] | $ | 32,418 | ||||||||
Restricted cash
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607 | 607 | |||||||||||||||
Receivables
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479 | 479 | |||||||||||||||
Receivables from managed entities and related parties, net
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54,348 | 54,348 | |||||||||||||||
Investments in real estate
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19,100 | 19,100 | |||||||||||||||
Investment securities, at fair value
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17,330 | 17,330 | |||||||||||||||
Investments in unconsolidated entities
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13,197 | (249 | ) | 34,690 | [b],[c] | 47,638 | |||||||||||
Property and equipment, net
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4,294 | 4,294 | |||||||||||||||
Deferred tax assets, net
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47,184 | (20,118 | ) | [c] | 27,066 | ||||||||||||
Other assets
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8,993 | (5,011 | ) | 3,982 | |||||||||||||
Total assets
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$ | 178,335 | $ | (5,328 | ) | $ | 34,255 | $ | 207,262 | ||||||||
LIABILITIES AND EQUITY
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Liabilities:
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Accrued expenses and other liabilities
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$ | 29,327 | $ | (5,329 | ) | $ | – | $ | 23,998 | ||||||||
Payables to managed entities and related parties
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275 | 275 | |||||||||||||||
Borrowings
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28,471 | 28,471 | |||||||||||||||
Total liabilities
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58,073 | (5,329 | ) | – | 52,744 | ||||||||||||
Commitments and contingencies
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Equity:
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|||||||||||||||||
Preferred stock, none outstanding
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– | – | – | – | |||||||||||||
Common stock, $.01 par value
|
281 | 281 | |||||||||||||||
Additional paid-in capital
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281,357 | 281,357 | |||||||||||||||
Accumulated deficit
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(48,416 | ) | 34,255 | [c] | (14,161 | ) | |||||||||||
Treasury stock, at cost
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(99,775 | ) | (99,775 | ) | |||||||||||||
Accumulated other comprehensive loss
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(13,504 | ) | 1 | – | (13,503 | ) | |||||||||||
Total stockholders’ equity
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119,943 | 1 | 34,255 | 154,199 | |||||||||||||
Noncontrolling interests
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319 | – | – | 319 | |||||||||||||
Total equity
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120,262 | 1 | 34,255 | 154,518 | |||||||||||||
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$ | 178,335 | $ | (5,328 | ) | $ | 34,255 | $ | 207,262 |
Notes to pro forma balance sheet:
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||||||||
[a] |
reflects the cash proceeds to be received at closing from the sale of Apidos to CVC Capital Partners.
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[b] |
reflects the fair value of the Company's 33% investment in the joint venture (CVC Credit Partners) and the Company's retained preferred equity interest in Apidos, which entitles it to receive incentive managment fees from the legacy Apidos portfolios.
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[c] |
reflects the pro forma gain on the sale of Apidos, net of the utilization of capital loss carryfowards.
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