AMREP(US:AXR)2019-09-11 20:30Financial Performance - Revenues for the three months ended July 31, 2019, were $4,767,000, an increase of 12.5% compared to $4,238,000 for the same period in 2018[9] - The company reported a net loss of $196,000 for the three months ended July 31, 2019, compared to a net income of $61,000 for the same period in 2018[12] - The company experienced an operating loss from continuing operations of $454,000 for the three months ended July 31, 2019, an improvement from a loss of $884,000 in the same period of 2018[9] - Basic and diluted loss per share from continuing operations was $(0.02) for Q3 2019, compared to $(0.08) for Q3 2018[9] - The company reported a net loss from continuing operations of $(196,000) for the three months ended July 31, 2019, compared to a loss of $(662,000) in the prior year[13] - Other comprehensive income for the three months ended July 31, 2019, was $154,000, compared to $157,000 for the same period in 2018[12] - Interest income, net for the three months ended July 31, 2019, was $124,000, significantly higher than $28,000 for the same period in 2018, driven by increased interest income on savings and deferred purchase price[41] Assets and Liabilities - Total assets as of July 31, 2019, were $100,077,000, a decrease of 0.45% from $100,530,000 as of April 30, 2019[6] - Total liabilities as of July 31, 2019, were $10,216,000, with accounts payable and accrued expenses amounting to $3,009,000[7] - Shareholders' equity increased slightly to $89,861,000 as of July 31, 2019, compared to $89,846,000 as of April 30, 2019[8] - Cash, cash equivalents, and restricted cash at the end of the period totaled $15,896,000, an increase from $14,236,000 at the beginning of the period[13] - The total amount of restricted cash decreased from $969,000 at April 30, 2019, to $305,000 at July 31, 2019[27] - The outstanding principal amount of real estate notes payable decreased to $842,000 as of July 31, 2019, from $1,384,000 as of April 30, 2019, with principal repayments of $390,000 made during the quarter[32] Cash Flow and Investments - Net cash provided by operating activities of continuing operations was $2,204,000, compared to a net cash used of $(206,000) in the same period last year[13] - Total adjustments to reconcile net loss to net cash provided by operating activities amounted to $2,400,000, significantly higher than $456,000 in the previous year[13] - The company incurred capital expenditures of $(1,000) during the three months ended July 31, 2019, compared to $85,000 in the same period last year[13] - Proceeds from debt financing were $29,000, a significant decrease from $1,044,000 in the prior year[13] - The company capitalized $20,000 of interest related to a loan for residential lot development during the three months ended July 31, 2019, compared to $0 in the same period of 2018[33] Real Estate Operations - Real estate land sales increased to $4,382,000 in Q3 2019, up from $4,181,000 in Q3 2018, reflecting a growth of 4.8%[9] - Real estate inventory and investment assets increased by $2,255,000, contrasting with a decrease of $(299,000) in the same period last year[13] - As of July 31, 2019, accounts payable and accrued expenses totaled $3,009,000, an increase from $2,964,000 as of April 30, 2019, with real estate customer deposits rising to $1,317,000[31] - The company has approximately 12,000 acres of land in New Mexico classified as land held for long-term investment[29] Pension and Compensation - The company recognized a non-cash pre-tax pension settlement charge of approximately $2,960,000 expected in the quarter ending October 31, 2019, following lump sum payments to 309 former employees totaling approximately $7,200,000[38] - The company initiated a limited offer for former employees to elect a lump sum payout of their pension benefits, completing payments in September 2019[38] - The company issued 9,000 shares of restricted common stock under the 2016 Equity Plan during the three months ended July 31, 2019, with $25,000 recognized as non-cash compensation expense related to the vesting of restricted shares[39] Lease and Asset Recognition - The company recognized right-of-use assets obtained in exchange for operating lease liabilities amounting to $198,000 due to the adoption of ASU 2016-02[17] - Right-of-use assets associated with the company's leases amounted to $175,000, net of $23,000 of depreciation expense charged during the three months ended July 31, 2019[30] - The company recognized other comprehensive income of $154,000 for the three months ended July 31, 2019, related to the amortization of the pension plan's unrecognized net loss[36]