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FOR:
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AMREP Corporation
300 Alexander Park, Suite 204
Princeton, New Jersey 08540
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CONTACT:
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Peter M. Pizza
Vice President and Chief Financial Officer
(609) 716-8210
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AMREP REPORTS THIRD QUARTER AND NINE MONTH RESULTS
Princeton, New Jersey, March 15, 2013 - AMREP Corporation (NYSE:AXR) today reported net income of $3,000,
or $0.00 per share, for its fiscal 2013 third quarter ended January 31, 2013 compared to a net loss of
$316,000, or $0.05 per share, for its fiscal 2012 third quarter ended January 31, 2012. For the first
nine months of fiscal 2013, the Company had a net loss of $329,000, or $0.05 per share, compared to net
income of $488,000, or $0.08 per share, for the same period of fiscal 2012. Revenues for the third
quarter and first nine months of 2013 were $21,752,000 and $62,665,000 versus $21,424,000 and $66,268,000
for the same periods last year.
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 other businesses conducted by its Kable Media Services subsidiary, decreased from $21,419,000 and
$64,815,000 for the third quarter and first nine months of 2012 to $21,225,000 and $62,079,000 for the
same periods in 2013. Magazine publishers are the principal customers of these businesses, and they
have continued to be negatively impacted by increased competition from new media sources and weakness
in the U.S. economy. The result has been reduced subscription and newsstand magazine sales, which has
caused publishers to close some magazine titles and seek more favorable terms from Palm Coast and Kable
and their competitors when contracts are up for bid or renewal. As a consequence of these and other
factors, including customer losses, revenues from Subscription Fulfillment Services operations decreased
from $15,589,000 and $48,775,000 for the third quarter and first nine months of 2012 to $15,011,000 and
$43,069,000 for the same periods of 2013. The 2013 numbers for the third quarter and first nine months
also included one month of operations ($611,000 in revenues) from Palm Coast's new FulCircle Media
subsidiary, which acquired certain assets from a third party on December 31, 2012. Revenues from
Newsstand Distribution Services operations decreased from $2,213,000 and $7,112,000 for the third quarter
and first nine months of 2012 to $2,169,000 and $6,795,000 for the same periods of 2013. Revenues from
Product Services and other operations increased from $3,617,000 and $8,928,000 for the third quarter
and first nine months of 2012 to $4,045,000 and $12,215,000 for the same periods of 2013, reflecting
increases in both the product services and temporary staffing businesses. The net revenue decline in
the overall Media Services operations was more than offset by decreases in their operating and general
and administrative expenses of $934,000 and $2,906,000 for the third quarter and first nine months of
2013 compared to the same periods in 2012, primarily reflecting lower payroll and benefit costs as a
result of both the reduced and lost business noted above and lower facilities and equipment costs,
including depreciation.
Revenues from land sales at the Company's AMREP Southwest subsidiary were $525,000 for the third quarter
and first nine months of 2013 compared to zero and $1,435,000 for the same periods of 2012. The 2013 third
quarter revenues were attributable to one commercial lot sale that had a gross profit percentage of 28% before
indirect costs. The average gross profit percentage on land sales for the first nine months of 2012 was 91%
before indirect costs. Results for both the 2013 and 2012 periods were substantially lower than the Company
experienced prior to fiscal 2009 in its principal market of Rio Rancho, New Mexico, due to the severe decline
in the real estate market in the greater Albuquerque-metro and Rio Rancho areas that began late in fiscal 2008.
Revenues, gross profits and related gross profit percentages 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.
The Company recognized net tax benefits of $226,000 and $305,000 during the third quarter and first nine months of
2013, which included the impact of a reduction in unrecognized tax benefits of $85,000 and $53,000 for those periods.
Net tax benefits of $668,000 and $33,000 were recognized in the comparable periods of 2012 and included a similar
reduction in unrecognized tax benefits in the third quarter and first nine months of 2012 that totaled $382,000 and
$335,000 for those periods.
AMREP Corporation's Media Services business, conducted by its Kable Media Services, Inc. and Palm Coast Data LLC
subsidiaries, distributes magazines to wholesalers and provides subscription and product fulfillment and related
services to publishers and others, and its AMREP Southwest Inc. subsidiary is a major holder of real estate in
New Mexico.
#####
(Two Schedules Follow)
Schedule 1
AMREP Corporation
and Subsidiaries
Financial Highlights
(Unaudited)
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Three Months Ended January 31,
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2013
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2012
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Revenues
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$ 21,752,000
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$ 21,424,000
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Net Income (loss)
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$ 3,000
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$ (316,000)
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Earnings (loss) per share - Basic and Diluted:
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$ 0.00
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$ (0.05)
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Weighted average number of common shares outstanding
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5,996,000
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5,996,000
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Nine Months Ended January 31,
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2013
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2012
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Revenues
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$ 62,665,000
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$ 66,268,000
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Net Income (loss)
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$ (329,000)
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$ 488,000
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Earnings per share - Basic and Diluted:
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$ (0.05)
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$ 0.08
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Weighted average number of common shares outstanding
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5,996,000
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5,996,000
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Schedule 2
The Company's land sales in Rio Rancho, New Mexico were as follows (dollar amounts in thousands):
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2013
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2012
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Acres
Sold
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Revenues
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Revenues
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Acres
Sold
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Revenues
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Revenues
Per Acre
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| Three months ended January 31, |
| Developed: |
| Residential |
- |
$ |
- |
$ |
- |
|
- |
$ |
- |
$ |
- |
| Commercial |
3.0 |
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525 |
|
175 |
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- |
|
- |
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- |
| Total Developed |
3.0 |
$ |
525 |
$ |
175 |
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- |
$ |
- |
$ |
- |
| Undeveloped |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| Total |
3.0 |
$ |
525 |
$ |
175 |
|
- |
$ |
- |
$ |
- |
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| Nine months ended January 31, |
| Developed: |
| Residential |
- |
$ |
- |
$ |
- |
|
- |
$ |
- |
$ |
- |
| Commercial |
3.0 |
|
525 |
|
175 |
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4.2 |
|
748 |
|
178 |
| Total Developed |
3.0 |
$ |
525 |
$ |
175 |
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4.2 |
$ |
748 |
$ |
178 |
| Undeveloped |
- |
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- |
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- |
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16.0 |
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687 |
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43 |
| Total |
3.0 |
$ |
525 |
$ |
175 |
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20.2 |
$ |
1,435 |
$ |
71 |
The Company offers for sale developed and undeveloped land in Rio Rancho from a number of
different projects, and selling prices may vary from project to project and within projects
depending on location, the stage of development and other factors.
