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AMREP REPORTS THIRD QUARTER AND NINE 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 THIRD QUARTER AND NINE MONTH RESULTS
Princeton, New Jersey, March 19, 2007 - AMREP Corporation (NYSE:AXR) today reported net
income of $6,930,000, or $1.04 per share, for its fiscal 2007 third quarter ended January 31,
2007, compared to net income of $5,241,000, or $0.79 per share, in the third quarter of the prior
fiscal year. For the first nine months of fiscal 2007, net income was $38,796,000, or $5.84 per
share, compared to net income of $15,661,000, or $2.36 per share, in the same period last year.
Results for the third quarter and first nine months of 2007 were entirely from continuing
operations, whereas the prior year's results included a net gain from discontinued operations of
$3,556,000, or $0.53 per share, for the nine month period. Revenues were $42,189,000 and
$156,513,000 in this year's third quarter and first nine months versus $35,589,000 and
$100,450,000 in the same periods last year.
Revenues from land sales at the Company's AMREP Southwest subsidiary increased from
$12,621,000 in the third quarter of fiscal 2006 to $16,563,000 in fiscal 2007's third quarter.
For the nine months ended January 31, land sale revenues increased from $31,680,000 last year to
$80,760,000 this year. The revenue growth in both the three and nine month periods of 2007 was
due to higher average selling prices of residential lots, resulting in part from the mix of lots sold,
more commercial land sales and, for the nine month period, a greater number of residential lots
sold in fiscal 2007 than in 2006. The average gross profit percentage on land sales rose from
48% and 47% in the third quarter and first nine months of 2006 to 59% and 68% for the same
periods of 2007, reflecting the higher average selling prices in the first nine months of fiscal
2007 and the mix of residential lots sold in each of the periods. As a result of these factors, the
pretax income contribution from AMREP Southwest increased from $4,906,000 and $11,960,000
in the three and nine month periods ended January 31, 2006 to $9,424,000 and $56,469,000 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 operations, including both Newsstand
Distribution Services and Fulfillment Services, increased from $22,449,000 in the third quarter
of 2006 to $24,349,000 in the same quarter this year. For the nine months ended January 31,
these revenues rose from $67,299,000 last year to $68,332,000 this year. Newsstand Distribution
Services revenues increased $473,000 and $1,123,000 for the three and nine month periods
ended January 31, 2007 compared to the same periods last year due to new business and interest
income on invested cash balances. Revenues from the Fulfillment Services business increased by
$1,427,000 for the third quarter ending January 31, 2007 compared to the same quarter last year
as a result of Kable's acquisition in January 2007 of Palm Coast Data Holdco., Inc. ("Palm
Coast") whose revenues are included in the consolidated financial statements for a 14 day period.
For the nine month period ending January 31, Fulfillment Services revenues decreased $90,000
in 2007 compared to 2006 as the additional revenues for 14 days associated with the Palm Coast
acquisition were offset by the effect this year of previously reported customer losses that
occurred in earlier periods. Kable's operating and general and administrative expenses increased
by $1,854,000 for the third quarter of 2007 and $870,000 for the first nine months of 2007
compared to the same periods of the prior year as a result of the addition of operating expenses
related to Palm Coast and costs associated with the growth of the Newsstand Distribution
Services business. As a result of these and other factors, the pretax income contribution from
Kable was $1,210,000 and $4,380,000 in the three and nine month periods ended January 31,
2007 versus $1,351,000 and $4,369,000 in the same periods last 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
|
Financial Highlights
(Unaudited)
|
|
Three Months Ended January 31, |
|
2007 |
2006 |
| Revenues |
$42,189,000 |
$35,589,000 |
| Net income: |
$6,930,000 |
$5,241,000 |
| Earnings per share - Basic and Diluted: |
$1.04 |
$0.79 |
| Weighted average number of common |
|
|
| shares outstanding |
6,653,000 |
6,635,000 |
|
|
Nine Months Ended January 31, |
|
2007 |
2006 |
| Revenues |
$156,513,000 |
$100,450,000 |
| Net income: |
|
|
| Continuing operations |
$38,796,000 |
$12,105,000 |
| Discontinued operations |
- |
3,556,000 |
|
$38,796,000 |
$15,661,000 |
| Earnings per share - Basic and Diluted: |
|
| Continuing Operations |
$5.84 |
$1.83 |
| Discontinued Operations |
- |
0.53 |
|
$5.84 |
$2.36 |
| Weighted average number of common |
|
|
| shares outstanding |
6,648,000 |
6,631,000 |
|
|
