AMREP Corporation


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FOR: AMREP Corporation
300 Alexander Park, Suite 204
Princeton, NJ 08540
 
CONTACT: Peter M. Pizza
Vice President and Chief Financial Officer
(609) 716-8210
(609) 716-8255 (fax)

AMREP REPORTS FISCAL 2014 RESULTS

Princeton, New Jersey, July 29, 2014 - AMREP Corporation (the "Company") (NYSE: AXR) today reported a net loss of $2,939,000, or $0.42 per share, for its fiscal year ended April 30, 2014 compared to a net loss of $2,838,000, or $0.47 per share in 2013. The results included pretax, non-cash impairment charges related to the write-down of certain long lived assets of $955,000 ($602,000 after tax, or $0.09 per share) in 2014 and $1,511,000 ($952,000 after tax, or $0.16 per share) in 2013. The results also included a reserve for doubtful accounts receivable primarily for magazine wholesalers who have discontinued operations of $2,458,000 ($1,549,000 after tax, or $0.22 per share) in 2014 and $2,000,000 ($1,260,000 after tax, or $0.21 per share) in 2013. Excluding the effect of the impairment charges and accounts receivable reserves in both years, the Company would have had a net loss of $788,000, or $0.11 per share, in 2014 compared to a net loss of $626,000, or $0.10 per share, in 2013.

Revenues were $87,337,000 in 2014 compared to $83,001,000 in 2013. Revenues from Media Services operations, which include Subscription Fulfillment Services operations conducted by the Company's Palm Coast Data subsidiary and Newsstand Distribution and Product Services and Staffing operations conducted by its Kable subsidiaries, increased from $82,105,000 in 2013 to $83,619,000 in 2014. The increase was primarily due to (i) the inclusion of revenues from Palm Coast's FulCircle subsidiary acquired on December 31, 2012 whose full fiscal year revenues were $5,922,000 in 2014 compared to $1,759,000 for the four months ended April 30, 2013 and (ii) $1,759,000 of payments from a significant Subscription Fulfillment customer related to the early termination of their contract. Excluding these two items, the Media Services operations had a $4,408,000 net decrease in revenues for 2014 compared to 2013. Operating expenses for the Company's Media Services business increased from $69,880,000 in 2013 to $72,494,000 in 2014, primarily due to inclusion of a full year of expenses for FulCircle during 2014.

Revenues from land sales at the Company's AMREP Southwest subsidiary increased from $833,000 in 2013 to $3,634,000 in 2014. In Rio Rancho, New Mexico, the Company offers for sale both developed and undeveloped lots to national, regional and local homebuilders, commercial and industrial property developers and others. The Company sold 89 acres of land in 2014 at an average selling price of $41,000 per acre compared to 12 acres of land in 2013 at an average selling price of $69,000 per acre. The average gross profit percentage on land sales before indirect costs was 23% for 2014 compared to 38% for 2013. As a result of many factors, including the nature and timing of specific transactions and the type and location of land being sold, revenues, average selling prices and related average gross profits from land sales can vary significantly from period to period and prior results are not necessarily a good indication of what may occur in future periods.

For additional information regarding the Company's financial results, please refer to the Company's Annual Report on Form 10-K filed today with the Securities and Exchange Commission.

AMREP Corporation's Media Services businesses, conducted by its Kable and Palm Coast Data subsidiaries, distribute magazines to wholesalers and provide subscription and product fulfillment and related services to publishers and others, and its AMREP Southwest subsidiary is a major holder of real estate in New Mexico.


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Schedule 1

AMREP CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS

Twelve Months Ended April 30,
  2014   2013
Revenues $ 87,337,000   $ 83,001,000
Net Income (loss)(a) $ (2,939,000)   $ (2,838,000)
(Loss) per share - Basic and Diluted $ (0.42)   $ (0.47)
Weighted average number of common shares outstanding 6,988,000   5,996,000
 

(a) Results for 2014 included pretax, non-cash impairment charges of $955,000 ($602,000 after tax, or $0.09 per share) and a reserve for doubtful accounts receivable of $2,458,000 ($1,549,000 after tax, or $0.22 per share), while results for 2013 included pretax, non-cash impairment charges of $1,511,000 ($952,000 after tax, or $0.16 per share) and a reserve for doubtful accounts receivable of $2,000,000 ($1,260,000 after tax, or $0.21 per share).



 


FOR: AMREP Corporation
300 Alexander Park, Suite 204
Princeton, NJ 08540
 
CONTACT: Peter M. Pizza
Vice President and Chief Financial Officer
(609) 716-8210

AMREP ANNOUNCES A COMPREHENSIVE SETTLEMENT WITH HEINRICH BAUER (USA) LLC

Princeton, New Jersey, June 11, 2014 - AMREP Corporation (NYSE:AXR) today reported that it and its indirect subsidiaries, Kable Distribution Services, Inc. ("Kable Distribution") and Palm Coast Data LLC ("Palm Coast"), have entered into a comprehensive settlement agreement with Heinrich Bauer (USA) LLC ("Bauer"), which resolves all matters relating to the two distribution agreements between Kable Distribution and Bauer that will terminate on June 30, 2014.

As part of the agreement, AMREP has agreed to issue to Bauer 825,000 shares of its common stock, which represents approximately 10.3% of the outstanding shares of common stock of AMREP following such issuance, with Bauer agreeing to not sell or transfer such shares for a period of six months. In return, Bauer has extended the term of its fulfillment agreement with Palm Coast to at least December 31, 2018 and released all claims, except for certain continuing obligations, that Bauer may have against Kable Distribution, Palm Coast and AMREP. Additional details on the settlement agreement are provided in AMREP's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 11, 2014.

"We welcome Bauer as a significant shareholder of AMREP and thank it for extending its current relationship with Palm Coast," said Edward B. Cloues, II, Chairman of AMREP. "We have had extensive discussions with Bauer over the past six months and are pleased that we have been able to settle our issues on an amicable basis and resolve the substantial net working capital deficit that existed with respect to the two distribution agreements."

"Building on many years of receiving valuable services from Palm Coast, we are pleased to be continuing and extending our relationship with Palm Coast," said Hubert Boehle, President and Chief Executive Officer of Bauer. "We look forward to a continuing positive relationship with AMREP in our new capacity as a significant shareholder."


About Bauer - Heinrich Bauer (USA) LLC is part of the Bauer Media Group, one of the most successful media companies in the world. More than 600 magazines, over 400 digital products, and 50 radio and TV stations reach millions of people around the globe. It has more than 11,000 employees in 17 countries. In the U.S., Bauer sells more magazines at retail than any other magazine publishing company.

About AMREP - Its Media Services operations, conducted by its Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries, distribute magazines to wholesalers and provide subscription and product fulfillment and related services to publishers and others, and its AMREP Southwest Inc. subsidiary is a major holder of real estate in New Mexico.


Forward-Looking Statements This press release may contain certain forward-looking statements, including statements with regard to continuing commercial relationships and the potential of AMREP's businesses and stock. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings AMREP makes with the Securities and Exchange Commission. AMREP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


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