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

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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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 REPORTS THIRD QUARTER AND NINE MONTH RESULTS

Princeton, New Jersey, March 17, 2014 - AMREP Corporation (NYSE:AXR) today reported a net loss of $11,000, or $0.00 per share, for the third quarter of 2014 compared to net income of $3,000, or $0.00 per share, for the third quarter of 2013. For the first nine months of 2014, the Company had a net loss of $646,000, or $0.09 per share, compared to a net loss of $329,000, or $0.05 per share, for the same period of 2013. The results for the third quarter and first nine months of 2014 included adjustments increasing the reserve for doubtful accounts receivable by $624,000 ($393,000 after tax, or $0.05 per share) for the quarter and $488,000 ($307,000 after tax, or $0.04 per share) for the nine months for customers of the Company's Media Services businesses. The results for the first nine months of 2013 included a pre-tax, non-cash impairment charge of $169,000 ($107,000 after tax, or $0.02 per share), reflecting the write-down of a real estate investment asset during the first quarter of 2013. Revenues were $23,812,000 and $67,084,000 for the third quarter and first nine months of 2014 compared to $21,752,000 and $62,665,000 for the same periods in the prior year.

Revenues from the Company's Media Services operations, which include Subscription Fulfillment Services operations conducted by the Company's Palm Coast Data subsidiary (including its FulCircle Media business acquired December 31, 2012) and Newsstand Distribution and Product Packaging and Fulfillment Services and Other operations conducted by its Kable Media Services subsidiary, increased from $21,225,000 and $62,079,000 for the third quarter and first nine months of 2013 to $22,307,000 and $64,140,000 for the same periods in 2014. The increase in revenues for both periods was primarily due to the addition of FulCircle, whose revenues in the third quarter and first nine months of 2014 were $1,852,000 and $5,073,000. Media Services operating expenses were $18,854,000 and $54,373,000 (84.5% and 84.8% of Media Services revenues) for the third quarter and first nine months of 2014 compared to $17,569,000 and $50,976,000 (82.8% and 82.1% of Media Services revenues) for the same periods of 2013.

Revenues from land sales at AMREP Southwest were $1,443,000 and $2,867,000 for the third quarter and first nine months of 2014 compared to $525,000 for the same periods of 2013. For 2014, the average gross profit percentage on land sales was 3.0% for the third quarter and 9.7% for the first nine months compared to 27.7% for the same periods in 2013. 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.

The Company recognized a benefit for income taxes of $237,000 and $554,000 during the third quarter and first nine months of 2014, compared to a benefit for income taxes of $226,000 and $305,000 for the same periods of 2013. The third quarter of each year also included the impact of a reduction for unrecognized tax benefits of $160,000 in 2014 and $85,000 in 2013 and, as a result, the Company's effective tax rate of the benefit for income taxes was 95.6% and 46.1% for the third quarter and first nine months of 2014 compared to 101.3% and 48.1% for the same periods of 2013.

AMREP Corporation's 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 Rio Rancho, New Mexico.


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AMREP Corporation and Subsidiaries
Financial Highlights
(Unaudited)

Three Months Ended January 31,
  2014   2013
Revenues $ 23,812,000   $ 21,752,000
Net Income (loss) $ (11,000)   $ 3,000
Earnings (loss) per share - Basic and Diluted: $ 0.00   $ 0.00
Weighted average number of common shares outstanding 7,195,000   5,996,000
 



Nine Months Ended January 31,
  2014   2013
Revenues $ 67,084,000   $ 62,665,000
Net Income (loss) $ (646,000)   $ (329,000)
Earnings (loss) per share - Basic and Diluted: $ (0.09)   $ (0.05)
Weighted average number of common shares outstanding 6,922,000   5,996,000
 



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