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 REPORTS FIRST QUARTER FISCAL 2015 RESULTS

Princeton, New Jersey, September 15, 2014 - AMREP Corporation (NYSE: AXR) today reported net income of $6,264,000, or $0.82 per share, for its fiscal 2015 first quarter ended July 31, 2014, compared to a net loss of $687,000, or $0.11 per share, for the first quarter of the prior fiscal year. The results for the first quarter of fiscal 2015 included (i) a non-cash pre-tax gain of $11,155,000 (approximately $7,028,000, or $0.92 per share after tax) resulting from a comprehensive settlement agreement with a significant customer and (ii) a non-cash impairment charge of $925,000 ($583,000 after tax, or $0.08 per share) reflecting the discontinuance of the development of certain software. Revenues were $17,928,000 in the first quarter of this fiscal year compared to $20,509,000 for the same period in the prior year.

Revenues from the Company's Media Services businesses, which include Subscription Fulfillment Services, Newsstand Distribution Services and Product and Packaging Services and Staffing operations, decreased from $20,278,000 for the first quarter of 2014 to $17,516,000 for the same period of 2015 due primarily to the continuation of an industry trend of reduced subscription and newsstand magazine sales. Media Services' operating expenses decreased from $17,728,000 for the first quarter of 2014 to $14,537,000 for the first quarter of 2015, primarily from lower payroll and benefit costs and other variable cost reductions.

Revenues from land sales at AMREP Southwest were $384,000 for the first quarter of 2015 compared to $228,000 for the same period of 2014. The average gross profit percentage on land sales increased from 17% for the first quarter of 2014 to 42% for the same period in 2015 due to a change in the mix of property sold. Revenues, average selling prices 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.

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 New Mexico.


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AMREP CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS

Three Months Ended July 31,
  2014   2013
Revenues $ 17,928,000   $ 20,509,000
Net Income (loss) $ 6,264,000   $ (687,000)
Earnings (loss) per share - Basic and Diluted $ (0.82)   $ (0.11)
Weighted average number of common shares outstanding 7,599,000   6,374,000
 


 


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 ENTERS INTO OIL AND GAS LEASE

Princeton, New Jersey, September 9, 2014 - AMREP Corporation (NYSE:AXR) today reported that its indirect subsidiaries, AMREP Southwest Inc. and Outer Rim Investments, Inc. (collectively, "AMREP Southwest"), have entered into an Oil and Gas Lease with Thrust Energy, Inc. and Cebolla Roja, LLC (collectively, the "Lessee"), in which AMREP Southwest leased to Lessee all minerals and mineral rights in and under approximately 55,000 surface acres of land in Sandoval County, New Mexico for the purpose of exploring for, developing, producing and marketing oil and gas.

In consideration for entering into the lease, AMREP Southwest received approximately $1,000,000 as a lease bonus payment and, if any oil and gas is produced from the leased premises, AMREP Southwest will receive 1/7th of the gross proceeds from the sale of such oil and gas less any expenses to place the oil and gas in marketable condition after it is brought to the surface.

Additional details on the lease are provided in AMREP's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 9, 2014.

About AMREP - 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.

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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