Attached files
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| 8-K - AMERICAN REALTY INVESTORS - AMERICAN REALTY INVESTORS INC | ari8k111615.htm |
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AMERICAN REALTY INVESTORS, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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For the Three Months Ended
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For the Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(dollars in thousands, except per share amounts)
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Revenues:
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Rental and other property revenues (including $211 and $175 for the three months and
$591 and $526 for the nine months ended 2015 and 2014, respectively, from related parties)
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$ | 27,826 | $ | 19,326 | $ | 75,223 | $ | 57,986 | ||||||||
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Expenses:
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Property operating expenses (including $202 and $172 for the three months and $551 and
$511 for the nine months ended 2015 and 2014, respectively, from related parties)
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14,499 | 10,766 | 37,467 | 30,677 | ||||||||||||
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Depreciation and amortization
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6,569 | 4,463 | 16,410 | 13,099 | ||||||||||||
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General and administrative (including $634 and $926 for the three months and $2,554 and
$2,686 for the nine months ended 2015 and 2014, respectively, from related parties)
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1,417 | 1,590 | 5,215 | 6,770 | ||||||||||||
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Net income fee to related party
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232 | (186 | ) | 567 | 514 | |||||||||||
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Advisory fee to related party
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3,024 | 2,225 | 7,625 | 6,670 | ||||||||||||
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Total operating expenses
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25,741 | 18,858 | 67,284 | 57,730 | ||||||||||||
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Net operating income (loss)
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2,085 | 468 | 7,939 | 256 | ||||||||||||
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Other income (expenses):
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Interest income (including $3,886 and $4,699 for the three months and $13,190 and
$14,692 for the nine months ended 2015 and 2014, respectively, from related parties)
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3,950 | 5,106 | 13,722 | 15,264 | ||||||||||||
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Other income
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(72 | ) | 1,332 | 4,040 | 1,738 | |||||||||||
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Mortgage and loan interest (including $982 and $978 for the three months and $2,797
and $2,709 for the nine months ended 2015 and 2014, respectively, from related parties)
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(13,481 | ) | (9,901 | ) | (34,203 | ) | (28,651 | ) | ||||||||
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Loan charges and prepayment penalties
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(1,545 | ) | (1,044 | ) | (2,260 | ) | (2,626 | ) | ||||||||
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Earnings from unconsolidated subsidiaries and investees
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81 | 320 | 276 | 266 | ||||||||||||
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Litigation settlement (expense)
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(85 | ) | (86 | ) | (203 | ) | 3,666 | |||||||||
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Total other expenses
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(11,152 | ) | (4,273 | ) | (18,628 | ) | (10,343 | ) | ||||||||
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Loss before gain on land sales, non-controlling interest, and taxes
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(9,067 | ) | (3,805 | ) | (10,689 | ) | (10,087 | ) | ||||||||
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Gain on sale of income producing properties
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735 | - | 735 | - | ||||||||||||
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Gain on land sales
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1,958 | 40 | 7,861 | 634 | ||||||||||||
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Net income (loss) from continuing operations before taxes
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(6,374 | ) | (3,765 | ) | (2,093 | ) | (9,453 | ) | ||||||||
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Income tax benefit (expense)
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16 | 786 | 107 | 5,030 | ||||||||||||
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Net income (loss) from continuing operations
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(6,358 | ) | (2,979 | ) | (1,986 | ) | (4,423 | ) | ||||||||
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Discontinued operations:
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Net income (loss) from discontinued operations
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47 | 477 | 306 | (454 | ) | |||||||||||
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Gain on sale of real estate from discontinued operations
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- | 1,770 | - | 14,826 | ||||||||||||
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Income tax benefit (expense) from discontinued operations
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(16 | ) | (786 | ) | (107 | ) | (5,030 | ) | ||||||||
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Net income (loss) from discontinued operations
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31 | 1,461 | 199 | 9,342 | ||||||||||||
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Net income (loss)
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(6,327 | ) | (1,518 | ) | (1,787 | ) | 4,919 | |||||||||
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Net income (loss) attributable to non-controlling interest
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1,164 | 200 | 1,132 | (1,170 | ) | |||||||||||
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Net income attributable to American Realty Investors, Inc.
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(5,163 | ) | (1,318 | ) | (655 | ) | 3,749 | |||||||||
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Preferred dividend requirement
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(275 | ) | (428 | ) | (941 | ) | (1,653 | ) | ||||||||
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Net income applicable to common shares
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$ | (5,438 | ) | $ | (1,746 | ) | $ | (1,596 | ) | $ | 2,096 | |||||
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Earnings per share - basic
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Net income (loss) from continuing operations
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$ | (0.35 | ) | $ | (0.24 | ) | $ | (0.12 | ) | $ | (0.59 | ) | ||||
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Net income from discontinued operations
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- | 0.11 | 0.01 | 0.76 | ||||||||||||
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Net income applicable to common shares
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$ | (0.35 | ) | $ | (0.13 | ) | $ | (0.11 | ) | $ | 0.17 | |||||
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Earnings per share - diluted
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Net income (loss) from continuing operations
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$ | (0.35 | ) | $ | (0.24 | ) | $ | (0.12 | ) | $ | (0.59 | ) | ||||
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Net income (loss) from discontinued operations
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- | 0.11 | 0.01 | 0.76 | ||||||||||||
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Net income applicable to common shares
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$ | (0.35 | ) | $ | (0.13 | ) | $ | (0.11 | ) | $ | 0.17 | |||||
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Weighted average common shares used in computing earnings per share
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15,514,360 | 13,619,647 | 14,975,212 | 12,231,146 | ||||||||||||
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Weighted average common shares used in computing diluted earnings per share
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15,514,360 | 13,619,646 | 14,975,212 | 12,231,146 | ||||||||||||
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Amounts attributable to American Realty Investors, Inc.
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Net income (loss) from continuing operations
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$ | (5,194 | ) | $ | (2,779 | ) | $ | (854 | ) | $ | (5,593 | ) | ||||
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Net income (loss) from discontinued operations
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31 | 1,461 | 199 | 9,342 | ||||||||||||
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Net income applicable to American Realty Investors, Inc.
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$ | (5,163 | ) | $ | (1,318 | ) | $ | (655 | ) | $ | 3,749 | |||||
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AMERICAN REALTY INVESTORS, INC.
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CONSOLIDATED BALANCE SHEETS
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(unaudited)
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September 30,
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December 31,
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2015
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2014
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(dollars in thousands, except share
and par value amounts)
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Assets
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Real estate, at cost
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$ | 961,099 | $ | 810,214 | ||||
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Real estate subject to sales contracts at cost, net of depreciation ($194 for 2015 and $2,300 for 2014)
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9,213 | 19,026 | ||||||
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Less accumulated depreciation
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(145,101 | ) | (129,477 | ) | ||||
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Total real estate
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825,211 | 699,763 | ||||||
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Notes and interest receivable
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Performing (including $121,099 in 2015 and $139,466 in 2014 from related parties)
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132,452 | 149,484 | ||||||
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Non-performing
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- | 3,161 | ||||||
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Less allowance for doubtful accounts (including $15,537 in 2015 and 2014 from related parties)
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(17,037 | ) | (18,279 | ) | ||||
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Total notes and interest receivable
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115,415 | 134,366 | ||||||
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Cash and cash equivalents
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11,989 | 12,299 | ||||||
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Restricted cash
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42,214 | 49,266 | ||||||
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Investments in unconsolidated subsidiaries and investees
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5,152 | 4,279 | ||||||
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Receivable from related party
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43,301 | 21,414 | ||||||
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Other assets
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43,829 | 44,111 | ||||||
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Total assets
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$ | 1,087,111 | $ | 965,498 | ||||
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Liabilities and Shareholders’ Equity
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Liabilities:
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Notes and interest payable
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$ | 782,570 | $ | 638,891 | ||||
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Notes related to subject to sales contracts
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7,793 | 20,168 | ||||||
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Deferred revenue (including $71,603 in 2015 and $72,564 in 2014 from sales to related parties)
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71,672 | 74,409 | ||||||
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Accounts payable and other liabilities (including $7,001 in 2015 and $11,024 in 2014 to related parties)
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46,412 | 52,442 | ||||||
| 908,447 | 785,910 | |||||||
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Shareholders’ equity:
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Preferred stock, Series A: $2.00 par value, authorized 15,000,000 shares, issued and outstanding
2,000,614 and 2,461,252 shares in 2015 and 2014 (liquidation preference $10 per share), including
900,000 shares in 2015 and 2014 held by ARL or subsidiaries.
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2,205 | 3,126 | ||||||
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Common stock, $0.01 par value, authorized 100,000,000 shares; issued 15,930,145 and 14,443,404
shares; outstanding 15,514,360 and 14,027,619 shares in 2015 and 2014, respectively; including
140,000 shares held by TCI (consolidated) in 2015 and 2014.
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156 | 141 | ||||||
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Treasury stock at cost; 415,785 shares
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(6,395 | ) | (6,395 | ) | ||||
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Paid-in capital
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110,136 | 108,378 | ||||||
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Retained earnings
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18,435 | 19,090 | ||||||
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Total American Realty Investors, Inc. shareholders' equity
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124,537 | 124,340 | ||||||
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Non-controlling interest
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54,127 | 55,248 | ||||||
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Total shareholders' equity
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178,664 | 179,588 | ||||||
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Total liabilities and shareholders' equity
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$ | 1,087,111 | $ | 965,498 | ||||