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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
(609) 716-8255 (fax)
AMREP REPORTS FOURTH QUARTER AND FISCAL 2008 RESULTS
Princeton, New Jersey, July 14, 2008 - AMREP Corporation (NYSE: AXR) today reported net income of
$13,705,000, or $2.19 per share, for its fiscal year ended April 30, 2008 compared to net income of
$45,106,000, or $6.78 per share, in fiscal 2007. The 2008 results consisted of net income from continuing
operations of $13,762,000, or $2.20 per share, and a net loss from discontinued operations of $57,000, or
$0.01 per share, versus net income from continuing operations of $46,697,000, or $7.02 per share, and a
net loss from discontinued operations of $1,591,000, or $0.24 per share, in fiscal 2007. Revenues were
$172,061,000 in 2008 compared to $204,839,000 in the prior year.
For the fourth quarter of 2008, net income was $529,000, or $0.09 per share, compared to $6,310,000, or
$0.95 per share, in the same period of 2007. Results for the fourth quarter of 2007 consisted of income
from continuing operations of $7,901,000, or $1.19 per share, and a loss from discontinued operations of
$1,591,000, or $0.24 per share, while results for the fourth quarter of 2008 were entirely from continuing
operations. Fourth quarter 2008 revenues were $35,177,000 versus $48,326,000 in the same period last
year.
The net loss from discontinued operations in 2008 and 2007 was attributable to costs incurred in
connection with the settlement of all litigation related to the Company's El Dorado, New Mexico water
utility subsidiary.
Revenues from real estate land sales at AMREP Southwest decreased from $15,065,000 and $95,825,000
in the fourth quarter and full fiscal year 2007 to $289,000 and $27,902,000 in the same periods of 2008.
The substantial fourth quarter and full year revenue decreases in 2008 were due to substantially lower land
sales in the Company's principal market of Rio Rancho, New Mexico, reflecting the severe decline that
occurred in this market in 2008 compared to 2007 and earlier years. As previously reported, the number of
permits for new home construction was down significantly for calendar 2007 compared to 2006, with Rio
Rancho showing a decrease of nearly 50%. The Company believes that this decline was generally
consistent with the well-publicized problems of the national home building industry, including fewer sales
of both new and existing homes, the increasing number of mortgage delinquencies and foreclosures and a
tightening of mortgage availability. Faced with these adverse conditions, builders slowed the pace of
building on land previously purchased from the Company in Rio Rancho and, in some cases, delayed or
cancelled the purchase of additional land. The average gross profit percentages on those land sales that did
occur in 2008 were 67% and 65% for the fourth quarter and full fiscal year compared to 67% and 68% in
the same periods of 2007. As a result of these and other factors, including the nature and timing of specific
transactions, revenues and related gross profits from real estate 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.
Revenues from the Company's Kable Media Services operations, including both Fulfillment Services and
Newsstand Distribution Services, increased from $32,170,000 and $100,505,000 for the fourth quarter and
full fiscal year 2007 to $34,324,000 and $138,696,000 for the same periods in 2008. These increases were
attributable to Kable's January 2007 acquisition of Palm Coast Data which was included in the Company's
financial statements for all of 2008 but only for the last three and one-half months of 2007. Revenues from
Fulfillment Services operations, including the revenues of Palm Coast, were $28,965,000 and $86,121,000
for the fourth quarter and full fiscal year 2007 compared to $31,220,000 and $125,780,000 for the same
periods in 2008. The 2008 increase in Fulfillment Services revenues from the Palm Coast acquisition was
partly offset by decreases in revenues from other parts of Kable's Fulfillment Services business that
resulted from competitive market pressures and customer losses. Revenues from Kable's Newsstand
Distribution Services operations decreased from $3,205,000 and $14,384,000 for the fourth quarter and
full fiscal year 2007 to $3,104,000 and $12,916,000 for the same periods in 2008. These decreases in
Newsstand Distribution Services revenues were due to reduced billings and lower commission rates as
well as the inclusion of certain revenues in the prior year that did not recur in 2008.
AMREP Corporation's AMREP Southwest Inc. subsidiary is a major landholder and leading developer of
real estate in Rio Rancho, New Mexico, and its Kable Media Services, Inc. subsidiary distributes
magazines to wholesalers and provides subscription fulfillment and related services to publishers and
others.
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AMREP Corporation
and Subsidiaries
|
| |
Financial Highlights
(Unaudited)
|
| Schedule 1 |
Three Months Ended April 30, |
|
2008 |
2007 |
| Revenues |
$35,177,000 |
$48,326,000 |
| Net income (loss): |
| Continuing operations |
$529,000 |
$7,901,000 |
| Discontinued operations |
- |
(1,591,000) |
| |
$529,000 |
$6,310,000 |
| Earnings (loss) per share - Basic and Diluted: |
| Continuing operations |
$0.09 |
$1.19 |
| Discontinued operations |
- |
(0.24) |
| |
$0.09 |
$0.95 |
| Weighted average number of common |
|
|
| shares outstanding |
5,995,000 |
6,653,000 |
|
| |
Twelve Months Ended April 30, |
|
2008 |
2007 |
| Revenues |
$172,061,000 |
$204,839,000 |
| Net income (loss): |
| Continuing operations |
$13,762,000 |
$46,697,000 |
| Discontinued operations |
(57,000) |
(1,591,000) |
| |
$13,705,000 |
$45,106,000 |
| Earnings (loss) per share - Basic and Diluted: |
| Continuing operations |
$2.20 |
$7.02 |
| Discontinued operations |
(0.01) |
(0.24) |
| |
$2.19 |
$6.78 |
| Weighted average number of common |
|
|
| shares outstanding |
6,248,000 |
6,650,000 |
|
