AMREP(US:AXR)2025-12-12 21:04Financial Performance - For the three months ended October 31, 2025, the Company reported net income of $1,200,000, or $0.22 per diluted share, a decrease from $4,042,000, or $0.75 per diluted share, for the same period in 2024, representing a decline of 70.3%[67] - Total revenues for the three months ended October 31, 2025, were $9,398,000, down 21% from $11,906,000 in the same period of 2024[69] - The cost of revenues for the three months ended October 31, 2025, was $6,323,000, a decrease of 8.8% from $6,937,000 in the same period of 2024[75] - General and administrative expenses for the six months ended October 31, 2025 totaled $3,804,000, reflecting a 10% increase from $3,456,000 in 2024[80] - Net cash provided by operating activities for the six months ended October 31, 2025 was $5,273,000, down from $10,509,000 in 2024[84] - The provision for income taxes for the six months ended October 31, 2025 was $2,288,000, compared to a provision of $887,000 for the same period in 2024[82] Revenue Breakdown - Land sale revenues decreased by 86% to $825,000 for the three months ended October 31, 2025, compared to $5,857,000 in the same period of 2024[69] - Home sale revenues increased by 45% to $7,725,000 for the three months ended October 31, 2025, compared to $5,334,000 in the same period of 2024[69] - For the three months ended October 31, 2025, home sale gross margins increased to 25% compared to 20% for the same period in 2024[79] - Land sale gross margins improved to 80% for the three months ended October 31, 2025, compared to 60% for the same period in 2024[76] Real Estate Activity - The Company had 59 homes in production as of October 31, 2025, with 16 homes under contract, representing $7,446,000 in expected revenues[73] - The Company sold 467 acres of undeveloped land in Sandoval County, New Mexico, generating $2,174,000 in revenue during the six months ended October 31, 2025[70] - The Company sold 501.8 acres of undeveloped property in Sandoval County, New Mexico during the six months ended October 31, 2025[86] - The Company leased 28 homes to residential tenants as of October 31, 2025, an increase from 21 homes as of April 30, 2025[87] Cash and Assets - The Company had cash, cash equivalents, and restricted cash of $45,111,000 as of October 31, 2025, a 13% increase from $39,921,000 as of April 30, 2025[84] - Real estate inventory increased by 3% to $68,584,000 as of October 31, 2025, up from $66,750,000 as of April 30, 2025[86] - Interest income, net for the six months ended October 31, 2025 was $915,000, compared to $857,000 for the same period in 2024[81] Market Conditions - The Company reduced the number and scope of its active land development projects due to market headwinds, which is expected to result in reduced revenues from land sales in 2026 compared to 2025[68] - Future economic conditions and demand for land and homes remain uncertain due to various macroeconomic factors, including inflation and mortgage interest rates[68] Debt Management - Notes payable decreased from $26,000 as of April 30, 2025 to $23,000 as of October 31, 2025 due to principal debt repayments[85]