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AMREP REPORTS RECORD SECOND QUARTER AND SIX MONTH RESULTS
FOR: AMREP Corporation
300 Alexander Park, Suite 204
Princeton, New Jersey 08540
CONTACT: Peter M. Pizza
Vice President and
Chief Financial Officer
(609) 716-8210
FOR IMMEDIATE RELEASE
AMREP REPORTS RECORD SECOND QUARTER AND SIX MONTH RESULTS
Princeton, New Jersey, December 5, 2006 - AMREP Corporation (NYSE:AXR) today reported
net income of $16,063,000, or $2.42 per share, for its fiscal 2007 second quarter ended October
31, 2006, compared to net income of $5,056,000, or $0.76 per share, in the second quarter of the
prior fiscal year.
For the first six months of fiscal 2007, net income was $31,866,000, or $4.79 per share,
compared to net income of $10,420,000, or $1.57 per share, in the same period of fiscal 2006.
Results for the second quarter and first six months of 2007 set records for any comparable
periods in the Company's history and were entirely from continuing operations. The prior year's
results included a net gain (loss) from discontinued operations of ($6,000) in the second quarter
and $3,556,000, or $0.53 per share, for the six month period. Revenues were $56,056,000 and
$114,324,000 in the current year's second quarter and first six months versus $34,847,000 and
$64,861,000 in the same periods last year.
Revenues from land sales at the Company's AMREP Southwest subsidiary increased from
$11,650,000 in the second quarter of fiscal 2006 to $31,708,000 in fiscal 2007's second quarter.
For the six months ended October 31, these revenues increased from $19,059,000 last year to
$64,197,000 this year. The substantial revenue increases in both periods of 2007 were primarily
due to increased sales of developed and undeveloped residential lots in the Company's principal
market of Rio Rancho, New Mexico, as well as from increased sales of land for commercial use.
The average gross profit percentage on land sales increased from 54% and 47% in the second
quarter and first six months of 2006 to 75% and 70% for the same periods of 2007, reflecting the
relative mix of lots sold in each year. As a result of these factors, the pretax income contribution
from AMREP Southwest increased from $5,325,000 and $7,054,000 in the three and six month
periods ended October 31, 2005 to $22,803,000 and $47,045,000 in the same periods this year.
Revenues and related gross profits from land sales can vary significantly from period to period as
a result of many factors, including the nature and timing of specific transactions, and prior results
are not necessarily a good indication of what may occur in future periods.
Revenues from the Company's Kable Media Services subsidiary increased from $22,695,000 in
the second quarter of 2006 to $23,156,000 in the same quarter of the current year. For the six
months ended October 31, these revenues decreased from $44,850,000 last year to $43,983,000
this year. Revenues from the Newsstand Distribution Services segment increased by $1,006,000
and $650,000 for the three and six month periods ended October 31, 2006 compared to the same
periods last year. Revenues from the Fulfillment Services segment decreased primarily due to
the net effect of previously-reported customer losses that occurred in earlier periods but that
continue to affect the current year's results. Kable's operating expenses increased by $186,000
(1%) for the second quarter of 2007 and decreased by $157,000 (0.4%) for the first six months of
2007 compared to the same periods of the prior year as a result of the net effect of decreased
expenses in the Fulfillment Services business resulting in part from reductions in variable
expenses, including payroll and benefits, which were offset in part by an increase in Newsstand
Distribution Services operating expenses because of additional costs, principally payroll,
associated with the growth of that business. As a result of these factors, the pretax income
contribution from Kable Media Services increased from $1,919,000 and $3,018,000 in the three
and six month periods ended October 31, 2005 to $2,574,000 and $3,170,000 in the same periods
this year.
AMREP Corporation's AMREP Southwest Inc. subsidiary is a major landholder and leading
developer of real estate in New Mexico, and its Kable Media Services, Inc. subsidiary distributes
magazines to wholesalers and provides subscription fulfillment and related services to publishers
and others.
*****
AMREP Corporation
and Subsidiaries
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Financial Highlights
(Unaudited)
|
| Three Months Ended October 31, |
| 2006 | 2005 |
|
Revenues | $56,056,000 | $34,847,000 |
| Net income: | | |
| Continuing operations | $ 16,063,000 | $ 5,062,000 |
| Discontinued operations | - | (6,000) |
| | $ 16,063,000 | $ 5,056,000 |
| Earnings per share - Basic and Diluted: | |
| Continuing Operations | $ 2.42 | $ 0.76 |
| Discontinued Operations | 0.00 | 0.00 |
| | $ 2.42 | $ 0.76 |
| Weighted average number of common | | |
| shares outstanding | 6,649,000 | 6,630,000 |
|
| Six Months Ended October 31, |
| 2006 | 2005 |
|
Revenues | $114,324,000 | $64,861,000 |
| Net income: | | |
| Continuing operations | $ 31,866,000 | $ 6,864,000 |
| Discontinued operations | - | 3,556,000 |
| | $ 31,866,000 | $ 10,420,000 |
| Earnings per share - Basic and Diluted: | |
| Continuing Operations | $ 4.79 | $ 1.04 |
| Discontinued Operations | 0.00 | 0.53 |
| | $ 4.79 | $ 1.57 |
| Weighted average number of common | | |
| shares outstanding | 6,646,000 | 6,628,000 |
|
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