Attached files
| file | filename |
|---|---|
| 8-K - AMERICAN REALTY INVESTORS - AMERICAN REALTY INVESTORS INC | ari8k081414.htm |
|
AMERICAN REALTY INVESTORS, INC.
|
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||
|
(dollars in thousands, except share and per share amounts)
|
||||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Rental and other property revenues (including $166 and $167 for the three months and $331
and $335 for the six months ended 2013 and 2012 respectively from related parties)
|
$ | 27,182 | $ | 27,284 | $ | 53,973 | $ | 53,912 | ||||||||
|
Expenses:
|
||||||||||||||||
|
Property operating expenses (including $194 and $244 for the three months and $424 and
$509 for the six months ended 2013 and 2012 respectively from related parties)
|
12,544 | 13,253 | 25,577 | 26,116 | ||||||||||||
|
Depreciation and amortization
|
5,445 | 4,941 | 10,304 | 9,918 | ||||||||||||
|
General and administrative (including $1,044 and $1,017 for the three months and $1,986
and $1,936 for the six months ended 2013 and 2012 respectively from related parties)
|
2,043 | 919 | 4,257 | 3,777 | ||||||||||||
|
Provision on impairment of notes receivable and real estate assets
|
800 | - | 800 | - | ||||||||||||
|
Advisory fee to related party
|
2,487 | 2,700 | 5,042 | 5,359 | ||||||||||||
|
Total operating expenses
|
23,319 | 21,813 | 45,980 | 45,170 | ||||||||||||
|
Operating income
|
3,863 | 5,471 | 7,993 | 8,742 | ||||||||||||
|
Other income (expense):
|
||||||||||||||||
|
Interest income (including $3,420 and $4,624 for the three months and $6,493 and $7,865 for
the six months ended 2013 and 2012 respectively from related parties)
|
3,512 | 4,723 | 7,053 | 8,063 | ||||||||||||
|
Other income (including $0 and $1,500 for the three months and $0 and $3,000 for the six
months ended 2013 and 2012 respectively from related parties)
|
149 | 2,235 | 2,685 | 3,981 | ||||||||||||
|
Mortgage and loan interest (including $581 and $931 for the three months and $865 and
$1,853 for the six months ended 2013 and 2012 respectively from related parties)
|
(11,065 | ) | (12,061 | ) | (22,169 | ) | (24,488 | ) | ||||||||
|
Deferred borrowing costs amortization
|
(960 | ) | (1,975 | ) | (3,436 | ) | (2,887 | ) | ||||||||
|
Loan charges and prepayment penalties
|
(3,380 | ) | (3,769 | ) | (7,362 | ) | (6,161 | ) | ||||||||
|
Loss on sale of investments
|
- | - | - | (362 | ) | |||||||||||
|
Earnings from unconsolidated investees
|
(25 | ) | 33 | 188 | 150 | |||||||||||
|
Total other expenses
|
(11,769 | ) | (10,814 | ) | (23,041 | ) | (21,704 | ) | ||||||||
|
Loss before gain on land sales, non-controlling interest, and taxes
|
(7,906 | ) | (5,343 | ) | (15,048 | ) | (12,962 | ) | ||||||||
|
Gain (loss) on land sales
|
- | 4,738 | (35 | ) | 3,716 | |||||||||||
|
Loss from continuing operations before tax
|
(7,906 | ) | (605 | ) | (15,083 | ) | (9,246 | ) | ||||||||
|
Income tax benefit
|
6,423 | 2,217 | 8,931 | 2,625 | ||||||||||||
|
Net income (loss) from continuing operations
|
(1,483 | ) | 1,612 | (6,152 | ) | (6,621 | ) | |||||||||
|
Discontinued operations:
|
||||||||||||||||
|
Income (loss) from discontinued operations
|
276 | 1,666 | 216 | (757 | ) | |||||||||||
|
Gain on sale of real estate from discontinued operations
|
18,074 | 4,668 | 25,301 | 8,256 | ||||||||||||
|
Income tax expense from discontinued operations
|
(6,423 | ) | (2,217 | ) | (8,931 | ) | (2,625 | ) | ||||||||
|
Net income from discontinued operations
|
11,927 | 4,117 | 16,586 | 4,874 | ||||||||||||
|
Net income (loss)
|
10,444 | 5,729 | 10,434 | (1,747 | ) | |||||||||||
|
Net (income) loss attributable to non-controlling interest
|
(2,090 | ) | (1,064 | ) | (1,706 | ) | 112 | |||||||||
|
Net income (loss) attributable to American Realty Investors, Inc.
|
8,354 | 4,665 | 8,728 | (1,635 | ) | |||||||||||
|
Preferred dividend requirement
|
(613 | ) | (613 | ) | (1,226 | ) | (1,226 | ) | ||||||||
|
Net income (loss) applicable to common shares
|
$ | 7,741 | $ | 4,052 | $ | 7,502 | $ | (2,861 | ) | |||||||
|
Earnings per share - basic
|
||||||||||||||||
|
Loss from continuing operations
|
$ | (0.36 | ) | $ | (0.01 | ) | $ | (0.79 | ) | $ | (0.67 | ) | ||||
|
Income from discontinued operations
|
1.03 | 0.36 | 1.44 | 0.42 | ||||||||||||
|
Net income (loss) applicable to common shares
|
$ | 0.67 | $ | 0.35 | $ | 0.65 | $ | (0.25 | ) | |||||||
|
Earnings per share - diluted
|
||||||||||||||||
|
Loss from continuing operations
|
$ | (0.36 | ) | $ | (0.01 | ) | $ | (0.79 | ) | $ | (0.67 | ) | ||||
|
Income from discontinued operations
|
1.03 | 0.36 | 1.44 | 0.42 | ||||||||||||
|
Net income (loss) applicable to common shares
|
$ | 0.67 | $ | 0.35 | $ | 0.65 | $ | (0.25 | ) | |||||||
|
Weighted average common share used in computing earnings per share
|
11,525,389 | 11,525,389 | 11,525,389 | 11,525,389 | ||||||||||||
|
Weighted average common share used in computing diluted earnings per share
|
11,525,389 | 11,525,389 | 11,525,389 | 11,525,389 | ||||||||||||
|
Amounts attributable to American Realty Investors, Inc.
|
||||||||||||||||
|
Income (loss) from continuing operations
|
$ | (3,573 | ) | $ | 548 | $ | (7,858 | ) | $ | (6,509 | ) | |||||
|
Income from discontinued operations
|
11,927 | 4,117 | 16,586 | 4,874 | ||||||||||||
|
Net income (loss) applicable to American Realty Investors, Inc.
|
$ | 8,354 | $ | 4,665 | $ | 8,728 | $ | (1,635 | ) | |||||||
|
AMERICAN REALTY INVESTORS, INC.
|
||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(unaudited)
|
||||||||
|
June 30,
|
December 31,
|
|||||||
|
2013
|
2012
|
|||||||
|
(dollars in thousands, except
share and par value amounts)
|
||||||||
|
Assets
|
||||||||
|
Real estate, at cost
|
$ | 1,004,999 | $ | 1,031,632 | ||||
|
Real estate held for sale at cost, net of depreciation ($0 for 2013 and $4,393 for 2012)
|
- | 17,040 | ||||||
|
Real estate subject to sales contracts at cost, net of depreciation ($1,773 and $15,948 in 2013 and 2012)
|
27,682 | 42,286 | ||||||
|
Less accumulated depreciation
|
(159,574 | ) | (160,525 | ) | ||||
|
Total real estate
|
873,107 | 930,433 | ||||||
|
Notes and interest receivable
|
||||||||
|
Performing (including $111,898 and $114,275 in 2013 and 2012 from related parties)
|
118,968 | 120,998 | ||||||
|
Non-performing
|
4,226 | 4,175 | ||||||
|
Less allowance for estimated losses (including $15,962 and $18,962 in 2013 and 2012 from related parties)
|
(19,504 | ) | (21,704 | ) | ||||
|
Total notes and interest receivable
|
103,690 | 103,469 | ||||||
|
Cash and cash equivalents
|
9,333 | 17,141 | ||||||
|
Investments in unconsolidated investees
|
10,415 | 8,168 | ||||||
|
Related party receivable
|
871 | - | ||||||
|
Other assets
|
61,197 | 76,134 | ||||||
|
Total assets
|
$ | 1,058,613 | $ | 1,135,345 | ||||
|
Liabilities and Shareholders’ Equity
|
||||||||
|
Liabilities:
|
||||||||
|
Notes and interest payable
|
$ | 757,144 | $ | 769,201 | ||||
|
Notes related to assets held for sale
|
- | 18,915 | ||||||
|
Notes related to subject to sales contracts
|
21,035 | 55,976 | ||||||
|
Stock-secured notes payable and margin debt
|
24,818 | 25,765 | ||||||
|
Related party payables
|
- | 10,922 | ||||||
|
Deferred gain (including $74,303 and $71,303 in 2013 and 2012 from sales to related parties)
|
76,148 | 73,148 | ||||||
|
Accounts payable and other liabilities (including $10,536 and $15,746 in 2013 and 2012 to related parties)
|
85,278 | 96,314 | ||||||
| 964,423 | 1,050,241 | |||||||
|
Shareholders’ equity:
|
||||||||
|
Preferred stock, Series A: $2.00 par value, authorized 15,000,000 shares, issued and outstanding
3,353,954 shares in 2013 and 2012 (liquidation preference $10 per share), including 900,000 shares in
2013 and 2012 held by subsidiaries
|
4,908 | 4,908 | ||||||
|
Preferred stock, Series K: $2.00 par value, authorized, issued and outstanding 135,000 and 0 shares in
2013 and 2012, respectively (liquidation preference $10 per share), held by TCI (consolidated)
|
- | - | ||||||
|
Common stock, $.01 par value, authorized 100,000,000 shares; issued 11,941,174 shares and
outstanding 11,525,389 shares in 2013 and 2012
|
115 | 115 | ||||||
|
Treasury stock (Common Stock) at cost; 415,785 shares in 2013 and 2012 and 229,214 shares held by
TCI (consolidated) as of 2013 and 2012
|
(6,395 | ) | (6,395 | ) | ||||
|
Paid-in capital
|
104,367 | 105,700 | ||||||
|
Retained earnings
|
(44,343 | ) | (53,071 | ) | ||||
|
Accumulated other comprehensive loss
|
(786 | ) | (786 | ) | ||||
|
Total American Realty Investors, Inc. shareholders' equity
|
57,866 | 50,471 | ||||||
|
Non-controlling interest
|
36,324 | 34,633 | ||||||
|
Total equity
|
94,190 | 85,104 | ||||||
|
Total liabilities and equity
|
$ | 1,058,613 | $ | 1,135,345 | ||||