AMREP(US:AXR)2019-07-26 21:19Financial Performance - For the fiscal year ended April 30, 2019, the company reported net income of $1,527,000, or $0.19 per share, compared to net income of $238,000, or $0.03 per share, in 2018[55]. - The company reported a loss from continuing operations of $2,465,000 in 2019, slightly improved from a loss of $2,564,000 in 2018[127]. - Net income rose significantly from $238,000 in 2018 to $1,527,000 in 2019, representing an increase of over 540%[129]. - The company recorded a total comprehensive income of $2,430,000 in 2019, compared to $1,544,000 in 2018, an increase of approximately 57.3%[129]. - Basic earnings per share improved from $0.03 in 2018 to $0.19 in 2019, marking a significant increase[127]. Revenue and Sales - Revenues from real estate land sales increased by 45.5% from $8,439,000 in 2018 to $12,313,000 in 2019[127]. - Revenues from land sales were $12,313,000 in 2019, up from $8,439,000 in 2018, with the average gross profit percentage on land sales in New Mexico decreasing to 12% from 16%[57][59]. - The company sold 65 acres of residential land in 2019 at an average selling price of $190,000 per acre, compared to 27 acres at $237,000 per acre in 2018[58]. - The fulfillment services business was sold on April 26, 2019, and is classified as discontinued operations, with no material impact expected on continuing operations[54][69]. Expenses and Costs - Operating expenses for the real estate business decreased to $990,000 in 2019 from $1,652,000 in 2018, primarily due to lower real estate taxes and land maintenance costs[63]. - General and administrative expenses for the real estate business increased to $625,000 in 2019 from $578,000 in 2018, mainly due to higher professional fees[64]. - Interest expense rose to $25,000 in 2019 from $5,000 in 2018, related to the amortization of debt issuance costs[65]. - The company recognized a tax benefit of $708,000 for continuing operations in 2019, compared to a benefit of $279,000 in 2018[67]. Assets and Liabilities - Total assets decreased from $106,225,000 in 2018 to $100,530,000 in 2019, a decline of approximately 5.5%[125]. - Total liabilities decreased from $19,095,000 in 2018 to $10,684,000 in 2019, a reduction of approximately 44.0%[125]. - Shareholders' equity increased from $87,130,000 in 2018 to $89,846,000 in 2019, reflecting a growth of about 3.1%[125]. - Real estate inventory decreased from $58,874,000 at April 30, 2018, to $57,773,000 at April 30, 2019, primarily due to real estate land sales[79]. - Investment assets decreased from $17,725,000 at April 30, 2018, to $17,227,000 at April 30, 2019, primarily due to depreciation charges[80]. Pension and Retirement Plans - The defined benefit pension plan was underfunded by $6,401,000 as of April 30, 2019, down from $9,051,000 in 2018, due to company contributions and favorable investment results[74]. - Net periodic pension cost for 2019 was $649,000, a decrease of 35% from $999,000 in 2018[208]. - The benefit obligation at the end of 2019 was $30,304,000, down from $32,423,000 at the end of 2018, reflecting a decrease of approximately 6.5%[211]. - The underfunded status of the pension plan improved to $6,401,000 in 2019 from $9,051,000 in 2018, indicating a reduction of approximately 29.3%[211]. - The Company contributed $2,000,000 to the pension plan in 2019, compared to $1,040,000 in 2018, representing an increase of 92.3%[215]. Cash Flow and Financing - Cash and cash equivalents increased from $10,851,000 in 2018 to $13,267,000 in 2019, a rise of about 22.3%[125]. - Cash flows from operating activities of continuing operations resulted in a net cash outflow of $2,036,000 for the year ended April 30, 2019, compared to an outflow of $2,210,000 for the previous year[133]. - Proceeds from debt financing amounted to $3,121,000, while principal debt payments totaled $3,624,000 for the year ended April 30, 2019[133]. - The company capitalized interest related to this borrowing of $33,000 in 2019[103]. Taxation - The total benefit for income taxes was $(708,000) for the year ended April 30, 2019, compared to $(279,000) for the year ended April 30, 2018[228]. - The net deferred income tax asset increased to $4,536,000 in April 2019 from $2,965,000 in April 2018[230]. - The U.S. corporate income tax rate was reduced to 21% effective January 1, 2018, impacting the Company's tax provision[228].