PHILADELPHIA, PA
-- (Marketwired)
-- 03/04/15
Resource America, Inc. (NASDAQ: REXI)
Fourth Quarter 2014 Highlights
- Adjusted net income attributable to common shareholders of $2.1 million (see Schedule I)
- Increased gross assets under management by 17% to $20.2 billion since December 31, 2013
- Gross real estate assets under management increased 35% to $3.4 billion
- Gross financial fund management assets under management increased 14% to $16.1 billion
- Net assets under management increased 22% to $9.7 billion
- Book value per common share of $7.47
- Repurchased 239,790 shares at $9.31
Fourth Quarter 2014 Results
Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $2.1 million, or $0.09 per common share-diluted, and $12.1 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to adjusted net income attributable to common shareholders of $3.5 million, or $0.16 per common share-diluted, and $11.8 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2013, respectively. A reconciliation of the Company's reported GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders, a non-GAAP measure, is included as Schedule I to this release.
The Company reported GAAP net income attributable to common shareholders of $1.7 million, or $0.08 per common share-diluted, and $7.0 million, or $0.31 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to GAAP net income attributable to common shareholders of $1.4 million, or $0.06 per common share-diluted, and $6.4 million, or $0.29 per common share-diluted, for the three months and year ended December 31, 2013.
Assets Under Management
The following table details the Company's assets under management by operating segment which, in gross, increased by $2.9 billion (17%) from December 31, 2013 to 2014 (in billions):
December 31,
---------------------------
2014 2013
------------- -------------
Financial fund management $ 16.1 $ 14.2
Real estate 3.4 2.5
Commercial finance 0.7 0.6
------------- -------------
$ 20.2 $ 17.3
============= =============
Net assets under management (1) $ 9.7 $ 7.9
============= =============
(1) Net assets under management represents the proportionate share of assets
managed by the Company after reflecting joint venture arrangements.
A description of how the Company calculates assets under management is set forth in Item 1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
Highlights for the Fourth Quarter and Year Ended December 31, 2014 and Recent Developments
REAL ESTATE ASSET MANAGEMENT:
Equity Asset Management
Resource Real Estate Opportunity REIT, Inc. ("Opportunity REIT I"), a public non-traded real estate investment trust ("REIT") managed by the Company which specializes in acquiring and managing distressed real estate assets, had the following highlights:
- Increased total assets to $978.4 million at December 31, 2014, an increase of $299.8 million, or 44%, from $678.6 million at December 31, 2013.
- Acquired $19.9 million and $427.0 million of multifamily assets and placed financing of $57.3 million and $347.8 million during the three months and year ended December 31, 2014. In addition, disposed of $30.1 million of multifamily assets during the year ended December 31, 2014.
- In October 2014, the Board of Directors of Opportunity REIT I authorized a 50% increase to the annual distribution rate to 6% from 4%.
Resource Real Estate Opportunity REIT II, Inc. ("Opportunity REIT II"), a public non-traded real estate investment trust ("REIT") managed by the Company, commenced its initial public offering in early 2014. Opportunity REIT II is offering up to $1.0 billion in common stock and specializes in acquiring multifamily rental properties and selected loans. Opportunity REIT II had the following highlights:
- Raised $47.2 million as of December 31, 2014 and $90.4 million through March 3, 2015.
- Acquired $54.3 million and $67.0 million of multifamily assets and placed financing of $31.1 million and $38.5 during the three months and year ended December 31, 2014.
Debt Asset Management
Resource Capital Corp. ("RSO"), a publicly-traded REIT managed by the Company which focuses on commercial real estate assets, had the following highlights:
- Originated $302.3 million and $777.3 million in new commercial real estate loans during the three months and year ended December 31, 2014.
- During the three months and year ended December 31, 2014, raised $25.5 million and $202.7 million in equity capital through its DRIP and preferred equity programs.
- In October 2014, RSO's Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock.
- In January 2015, completed a $100.0 million public offering of its 8.00% convertible senior notes due 2020.
- In February 2015, completed a $346.2 million commercial real estate securitization that issued $282.1 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.90%.
The following additional highlight contributed to our real estate asset management operations:
- The Company's real estate operating segment increased its gross assets under management at December 31, 2014 to $3.4 billion, an increase of $865.0 million, or 35%, from December 31, 2013.
FINANCIAL FUND MANAGEMENT:
Credit Asset Management
CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture, closed Apidos CLO XIX, Ltd. (issuing notes with a par value of $500.0 million) and CVC Cordatus Loan Fund IV Limited (issuing notes with a par of EUR400.0 million) during the quarter. In February 2015, CCP closed Apidos CLO XX, Ltd. (issuing notes with a par value of $500.0 million). Since creating this joint venture in April 2012, CCP has closed 13 collateralized loan obligation issuers (issuing notes with a total par value of $6.8 billion) and expects to receive approximately $31.8 million in fees on an annual run rate basis. The Company has a 33% interest in this joint venture.
The following additional highlights contributed to our financial fund asset management operations:
- The Company's financial fund management operating segment increased its gross assets under management at December 31, 2014 to $16.1 billion, an increase of $1.9 billion, or 14%, from December 31, 2013.
- Financial fund management revenues increased 68% and 44%, to $7.6 million and $28.4 million, for the three months and year ended December 31, 2014, respectively, as compared to $4.5 million and $19.8 million for the three months and year ended December 31, 2013, respectively.
CORPORATE/OTHER:
Share Repurchases
- In September 2014, the Company's Board of Directors authorized the Company to repurchase up to an additional 1.5 million shares of its outstanding common stock.
- The Company repurchased 239,790 of its shares during the fourth quarter ended December 31, 2014 at an average price of $9.31 per share.
Dividends
- The Company's Board of Directors authorized a cash dividend of $0.06 per share on the Company's common stock which was paid on January 30, 2015 to holders of record as of the close of business on January 16, 2015.
- RSO's Board of Directors declared a cash dividend of $0.20 per common share for its three months ended December 31, 2014.
Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities for its own account, for its joint ventures, and for outside investors in the real estate, financial fund management and commercial finance sectors.
For more information, please visit our website at www.resourceamerica.com or contact investor relations at pkamdar@resourceamerica.com.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release and its other reports filed with the Securities and Exchange Commission, or SEC. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1A of the Company's Annual Report on Form 10-K and in other of its public filings with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events except as may be required by law.
A registration statement relating to securities offered by Opportunity REIT II was declared effective by the SEC on February 6, 2014. A written prospectus relating to these securities may be obtained by contacting Resource Securities, Inc., 1845 Walnut Street, 18th Floor, Philadelphia, PA 19103.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The remainder of this release contains the Company's unaudited consolidated balance sheets, consolidated statements of operations, consolidating statements of operations and reconciliation of GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders.
RESOURCE AMERICA, INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
December 31,
------------------------
2014 2013
----------- -----------
ASSETS
Cash $ 28,031 $ 19,853
Restricted cash 725 571
Receivables 636 541
Loans and receivables from managed entities and
related parties, net 30,303 30,923
Investments in real estate, net 17,097 17,696
Investment securities, at fair value 9,540 7,839
Investments in unconsolidated loan manager 39,655 37,821
Investments in unconsolidated entities 13,089 14,342
Assets of consolidated variable interest entity
("VIE") - RSO
Cash and cash equivalents (including restricted
cash) 202,043 325,579
Investments, at fair value 296,506 221,395
Loans 2,038,435 1,397,458
Investments in real estate and unconsolidated
entities 60,007 129,562
Other assets 131,481 76,467
----------- -----------
Total assets of consolidated VIE - RSO 2,728,472 2,150,461
----------- -----------
Property and equipment, net 5,063 5,844
Deferred tax assets, net 23,304 27,769
Other assets 5,416 4,791
----------- -----------
Total assets $ 2,901,331 $ 2,318,451
=========== ===========
LIABILITIES AND EQUITY
Liabilities:
Accrued expenses and other liabilities $ 22,279 $ 22,134
Payables to managed entities and related parties 3,504 3,110
Borrowings 20,412 20,619
Liabilities of consolidated VIE - RSO
Borrowings 1,717,132 1,320,015
Other liabilities 57,561 55,247
----------- -----------
Total liabilities of consolidated VIE - RSO 1,774,693 1,375,262
----------- -----------
Total liabilities 1,820,888 1,421,125
----------- -----------
Commitments and contingencies
Equity:
Preferred stock, $1.00 par value, 1,000,000
shares authorized; none outstanding - -
Common stock, $.01 par value, 49,000,000 shares
authorized;34,489,568 and 30,378,339 shares
issued (including nonvested restricted stock of
833,082 and 400,194), respectively 335 299
Additional paid-in capital 308,134 288,555
Accumulated deficit (23,663) (26,025)
Treasury stock, at cost; 11,764,417 and
10,434,436 shares, respectively (120,182) (107,874)
Accumulated other comprehensive loss (1,030) (1,231)
----------- -----------
Total stockholders' equity 163,594 153,724
Noncontrolling interests 306 238
Noncontrolling interests attributable to RSO 916,543 743,364
----------- -----------
Total equity 1,080,443 897,326
----------- -----------
$ 2,901,331 $ 2,318,451
=========== ===========
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
REVENUES:
Real estate (includes revenues
of $2,721, $2,806, $10,349 and
$12,600 related to RSO) $ 13,849 $ 17,700 $ 54,861 $ 57,143
Financial fund management
(includes revenues of $498,
$400, $2,983 and $1,120 related
to RSO) 7,627 4,539 28,400 19,773
Commercial finance (no revenues
related to RSO) (6) (98) (164) (341)
--------- --------- --------- ---------
21,470 22,141 83,097 76,575
Revenues from consolidated VIE -
RSO 24,563 4,232 99,446 82,983
Elimination of consolidated VIE
- RSO revenues attributed to
operating segments (3,208) (3,226) (13,264) (13,834)
--------- --------- --------- ---------
Total revenues 42,825 23,147 169,279 145,724
--------- --------- --------- ---------
COSTS AND EXPENSES:
Real estate 10,047 11,098 37,411 40,612
Financial fund management 4,844 2,386 14,824 10,155
Commercial finance 396 155 979 56
General and administrative 3,041 3,461 11,118 10,268
Provision for credit losses (284) 472 3,058 4,265
Depreciation and amortization 450 618 1,819 1,936
--------- --------- --------- ---------
18,494 18,190 69,209 67,292
Expenses from consolidated VIE -
RSO 21,411 17,889 64,995 60,999
Elimination of consolidated VIE
expenses attributed to
operating segments (3,227) (3,037) (12,601) (13,215)
--------- --------- --------- ---------
Total expenses 36,678 33,042 121,603 115,076
--------- --------- --------- ---------
OPERATING INCOME (LOSS) 6,147 (9,895) 47,676 30,648
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Gain on sale of investment
securities, net 6 - 445 -
Other-than-temporary impairment
on investments - - - (214)
Interest expense (458) (511) (1,905) (2,036)
Other income, net (20) 175 243 575
Other income, net, from
consolidated VIE - RSO 7,978 9,561 25,505 23,428
Elimination of consolidated VIE
other income attributed to
operating segments 11 20 51 244
--------- --------- --------- ---------
7,517 9,245 24,339 21,997
--------- --------- --------- ---------
Income (loss) from continuing
operations before taxes 13,664 (650) 72,015 52,645
Income tax provision 862 2,053 5,853 1,657
Income tax benefit - RSO (1,545) (5,262) (2,212) (1,041)
--------- --------- --------- ---------
Income from continuing
operations 14,347 2,559 68,374 52,029
Loss from discontinued
operations, net of tax - - - (2)
--------- --------- --------- ---------
Net income 14,347 2,559 68,374 52,027
Net (income) loss attributable
to noncontrolling interest (56) 3 (89) (20)
Net income attributable to
noncontrolling interests of
consolidated VIE - RSO (12,547) (1,187) (61,317) (45,581)
--------- --------- --------- ---------
Net income attributable to
common shareholders $ 1,744 $ 1,375 $ 6,968 $ 6,426
========= ========= ========= =========
Amounts attributable to common
shareholders:
Income from continuing
operations $ 1,744 $ 1,375 $ 6,968 $ 6,428
Discontinued operations - - - (2)
--------- --------- --------- ---------
Net income $ 1,744 $ 1,375 $ 6,968 $ 6,426
========= ========= ========= =========
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued)
(in thousands, except per share data)
(unaudited)
Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Basic earnings per share:
Continuing operations $ 0.08 $ 0.07 $ 0.33 $ 0.32
Discontinued operations - - - -
--------- --------- --------- ---------
Net income $ 0.08 $ 0.07 $ 0.33 $ 0.32
--------- --------- --------- ---------
Weighted average shares
outstanding 22,817 20,104 21,148 20,217
========= ========= ========= =========
Diluted earnings per share:
Continuing operations $ 0.08 $ 0.06 $ 0.31 $ 0.29
Discontinued operations - - - -
--------- --------- --------- ---------
Net income $ 0.08 $ 0.06 $ 0.31 $ 0.29
========= ========= ========= =========
Weighted average shares
outstanding 23,094 21,828 22,371 21,905
========= ========= ========= =========
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for
the fourth quarter ended December 31, 2014:
RAI RSO Eliminations Consolidated
--------- --------- ------------ ------------
REVENUES:
Real estate $ 13,849 $ - $ - $ 13,849
Financial fund management 7,627 - - 7,627
Commercial finance (6) - - (6)
--------- --------- ------------ ------------
21,470 - - 21,470
Revenues from consolidated
VIE - RSO - 24,563 - 24,563
Elimination of consolidated
VIE revenues attributed to
operating segments - - (3,208) (3,208)
--------- --------- ------------ ------------
Total revenues 21,470 24,563 (3,208) 42,825
--------- --------- ------------ ------------
COSTS AND EXPENSES:
Real estate 10,047 - - 10,047
Financial fund management 4,844 - - 4,844
Commercial finance 396 - - 396
General and administrative 3,041 - - 3,041
Provision for credit losses (284) - - (284)
Depreciation and
amortization 450 - - 450
--------- --------- ------------ ------------
18,494 - - 18,494
Expenses from consolidated
VIE - RSO - 19,866 1,545 21,411
Elimination of consolidated
VIE expenses attributed to
operating segments - - (3,227) (3,227)
--------- --------- ------------ ------------
Total expenses 18,494 19,866 (1,682) 36,678
--------- --------- ------------ ------------
OPERATING INCOME 2,976 4,697 (1,526) 6,147
--------- --------- ------------ ------------
OTHER INCOME (EXPENSE):
Gain on sale of investment
securities, net 6 - - 6
Interest expense (458) - - (458)
Other income, net 553 - (573) (20)
Other income, net, from
consolidated VIE - RSO - 7,978 - 7,978
Elimination of consolidated
VIE other income, net - - 11 11
--------- --------- ------------ ------------
101 7,978 (562) 7,517
--------- --------- ------------ ------------
Income before taxes 3,077 12,675 (2,088) 13,664
Income tax provision
(benefit) 862 - (1,545) (683)
--------- --------- ------------ ------------
Net income 2,215 12,675 (543) 14,347
Net income attributable to
noncontrolling interests (56) - - (56)
Net income attributable to
noncontrolling interests -
RSO - (5,769) (6,778) (12,547)
--------- --------- ------------ ------------
Net income attributable to
common shareholders $ 2,159 $ 6,906 $ (7,321) $ 1,744
========= ========= ============ ============
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for
the fourth quarter ended December 31, 2013:
RAI RSO Eliminations Consolidated
--------- --------- ------------ ------------
REVENUES:
Real estate $ 17,700 $ - $ - $ 17,700
Financial fund management 4,539 - - 4,539
Commercial finance (98) - - (98)
--------- --------- ------------ ------------
22,141 - - 22,141
Revenues from consolidated
VIE - RSO - 4,232 - 4,232
Elimination of consolidated
VIE revenues attributed to
operating segments - - (3,226) (3,226)
--------- --------- ------------ ------------
Total revenues 22,141 4,232 (3,226) 23,147
--------- --------- ------------ ------------
COSTS AND EXPENSES:
Real estate 11,098 - - 11,098
Financial fund management 2,386 - - 2,386
Commercial finance 155 - - 155
General and administrative 3,461 - - 3,461
Provision for credit losses 472 - - 472
Depreciation and
amortization 618 - - 618
--------- --------- ------------ ------------
18,190 - - 18,190
Expenses from consolidated
VIE - RSO - 12,627 5,262 17,889
Elimination of consolidated
VIE expenses attributed to
operating segments - - (3,037) (3,037)
--------- --------- ------------ ------------
Total expenses 18,190 12,627 2,225 33,042
--------- --------- ------------ ------------
OPERATING INCOME (LOSS) 3,951 (8,395) (5,451) (9,895)
--------- --------- ------------ ------------
OTHER INCOME (EXPENSE):
Interest expense (511) - - (511)
Other income, net 747 - (572) 175
Other income, net, from
consolidated VIE - RSO - 9,561 - 9,561
Elimination of consolidated
VIE other income, net - - 20 20
--------- --------- ------------ ------------
236 9,561 (552) 9,245
--------- --------- ------------ ------------
Income before taxes 4,187 1,166 (6,003) (650)
Income tax provision
(benefit) 2,053 - (5,262) (3,209)
--------- --------- ------------ ------------
Net income 2,134 1,166 (741) 2,559
Net loss attributable to
noncontrolling interests 3 - - 3
Net income attributable to
noncontrolling interests -
RSO - (2,114) 927 (1,187)
--------- --------- ------------ ------------
Net income (loss)
attributable to common
shareholders $ 2,137 $ (948) $ 186 $ 1,375
========= ========= ============ ============
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for
the year ended December 31, 2014:
RAI RSO Eliminations Consolidated
--------- --------- ------------ ------------
REVENUES:
Real estate $ 54,861 $ - $ - $ 54,861
Financial fund management 28,400 - - 28,400
Commercial finance (164) - - (164)
--------- --------- ------------ ------------
83,097 - - 83,097
Revenues from consolidated
VIE - RSO - 99,446 - 99,446
Elimination of consolidated
VIE - RSO revenues
attributed to operating
segments - - (13,264) (13,264)
--------- --------- ------------ ------------
Total revenues 83,097 99,446 (13,264) 169,279
--------- --------- ------------ ------------
COSTS AND EXPENSES:
Real estate 37,411 - - 37,411
Financial fund management 14,824 - - 14,824
Commercial finance 979 - - 979
General and administrative 11,118 - - 11,118
Provision for credit losses 3,058 - - 3,058
Depreciation and
amortization 1,819 - - 1,819
--------- --------- ------------ ------------
69,209 - - 69,209
Expenses from consolidated
VIE - RSO - 62,783 2,212 64,995
Elimination of consolidated
VIE - RSO expenses
attributed to operating
segments - - (12,601) (12,601)
--------- --------- ------------ ------------
Total expenses 69,209 62,783 (10,389) 121,603
--------- --------- ------------ ------------
OPERATING INCOME 13,888 36,663 (2,875) 47,676
--------- --------- ------------ ------------
OTHER INCOME (EXPENSE):
Gain on sale of investment
securities, net 445 - - 445
Interest expense (1,905) - - (1,905)
Other income, net 2,532 - (2,289) 243
Other income, net, from
consolidated VIE - RSO - 25,505 - 25,505
Elimination of consolidated
VIE -RSO other income, net - - 51 51
--------- --------- ------------ ------------
1,072 25,505 (2,238) 24,339
--------- --------- ------------ ------------
Income from operations
before taxes 14,960 62,168 (5,113) 72,015
Income tax provision 5,853 - (2,212) 3,641
--------- --------- ------------ ------------
Net income 9,107 62,168 (2,901) 68,374
Net income attributable to
noncontrolling interests (89) - - (89)
Net income attributable to
noncontrolling interests -
RSO - (18,141) (43,176) (61,317)
--------- --------- ------------ ------------
Net income attributable to
common shareholders $ 9,018 $ 44,027 $ (46,077) $ 6,968
========= ========= ============ ============
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for
the year ended December 31, 2013:
RAI RSO Eliminations Consolidated
--------- --------- ------------ ------------
REVENUES:
Real estate $ 57,143 $ - $ - $ 57,143
Financial fund management 19,773 - - 19,773
Commercial finance (341) - - (341)
--------- --------- ------------ ------------
76,575 - - 76,575
Revenues from consolidated
VIE - RSO - 82,983 - 82,983
Elimination of consolidated
VIE revenues attributed to
operating segments - - (13,834) (13,834)
--------- --------- ------------ ------------
Total revenues 76,575 82,983 (13,834) 145,724
--------- --------- ------------ ------------
COSTS AND EXPENSES:
Real estate 40,612 - - 40,612
Financial fund management 10,155 - - 10,155
Commercial finance 56 - - 56
General and administrative 10,268 - - 10,268
Provision for credit losses 4,265 - - 4,265
Depreciation and
amortization 1,936 - - 1,936
--------- --------- ------------ ------------
67,292 - - 67,292
Expenses from consolidated
VIE - RSO - 59,958 1,041 60,999
Elimination of consolidated
VIE expenses attributed to
operating segments - - (13,215) (13,215)
--------- --------- ------------ ------------
Total expenses 67,292 59,958 (12,174) 115,076
--------- --------- ------------ ------------
OPERATING INCOME 9,283 23,025 (1,660) 30,648
--------- --------- ------------ ------------
OTHER INCOME (EXPENSE):
Other-than-temporary
impairment on investments (214) - - (214)
Interest expense (2,036) - - (2,036)
Other income, net 2,816 - (2,241) 575
Other income, net, from
consolidated VIE - RSO - 23,428 - 23,428
Elimination of consolidated
VIE other income, net - - 244 244
--------- --------- ------------ ------------
566 23,428 (1,997) 21,997
--------- --------- ------------ ------------
Income from continuing
operations before taxes 9,849 46,453 (3,657) 52,645
Income tax provision 1,657 - (1,041) 616
--------- --------- ------------ ------------
Income from continuing
operations 8,192 46,453 (2,616) 52,029
Loss from discontinued
operations, net of tax (2) - - (2)
--------- --------- ------------ ------------
Net income 8,190 46,453 (2,616) 52,027
Net income attributable to
noncontrolling interests (20) - - (20)
Net income attributable to
noncontrolling interests -
RSO - (7,221) (38,360) (45,581)
--------- --------- ------------ ------------
Net income attributable to
common shareholders $ 8,170 $ 39,232 $ (40,976) $ 6,426
========= ========= ============ ============
Schedule I
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (1)
(in thousands, except per share data)
(unaudited)
Three Months Ended Years Ended
December 31, December 31,
-------------------- -------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Net income attributable to common
shareholders - GAAP $ 1,744 $ 1,375 $ 6,968 $ 6,426
Adjustments, net of tax:
Loss, net of eliminations,
attributable to consolidation of
RSO 415 762 2,050 1,744
Loss attributable to commercial
finance 81 464 2,661 4,430
Deferred tax (benefit) provision (105) 887 380 (805)
--------- --------- --------- ---------
Adjusted net income attributable
to common shareholders $ 2,135 $ 3,488 $ 12,059 $ 11,795
========= ========= ========= =========
Adjusted weighted average diluted
shares outstanding 23,094 21,828 22,371 21,905
========= ========= ========= =========
Adjusted net income attributable
to common shareholders per common
per share-diluted $ 0.09 $ 0.16 $ 0.54 $ 0.54
========= ========= ========= =========
(1) Adjusted net income attributable to common shareholders presents the
Company's operations prior to the consolidation of RSO and without the
effect of its commercial finance operations and deferred tax (benefit)
provision. The Company believes that this provides useful information to
investors since it allows investors to evaluate the Company's progress
in both its real estate and financial fund management segments for the
three months and year ended December 31, 2014 and 2013 separately from
its commercial finance operations, RSO and deferred tax (benefit)
provision. Adjusted net income attributable to common shareholders
should not be considered as an alternative to net income attributable to
common shareholders (computed in accordance with GAAP). Instead,
adjusted net income attributable to common shareholders should be
reviewed in connection with net income attributable to common
shareholders in the Company's consolidated financial statements, to help
analyze how the Company's business is performing.
Contact:
Thomas C. Elliott
Chief Financial Officer
Resource America, Inc.
One Crescent Drive, Suite 203
Philadelphia, PA 19112
(215) 546-5005
(215) 640-6357 (fax)
© 2024 Canjex Publishing Ltd. All rights reserved.