AMREP(US:AXR)2021-03-10 16:00Financial Performance - For the three months ended January 31, 2021, the Company recorded net income of $2,093,000, or $0.29 per share, compared to net income of $338,000, or $0.04 per share, for the same period in 2020[103]. - Total revenues for the three months ended January 31, 2021 were $7,864,000, a 49% increase from $5,287,000 in the prior year[104]. - Land sale revenues in New Mexico for the three months ended January 31, 2021 were $5,957,000, a 56% increase from $3,812,000 in the same period of 2020[104]. - Home sale revenues for the three months ended January 31, 2021 were $1,261,000, marking the Company's first home sales to customers[108]. - The average gross profit percentage on land sales in New Mexico was 51% for the three months ended January 31, 2021, compared to 19% for the same period in 2020[114]. - Land development revenue increased by 47% to $829 million for the three months ended January 31, 2021, compared to $564 million for the same period in 2020[116]. - Homebuilding revenue was $137 million for the three months ended January 31, 2021, reflecting the segment's new business status[116]. - Corporate expenses decreased by 24% to $376 million for the three months ended January 31, 2021, compared to $494 million for the same period in 2020[119]. - Interest expense decreased to $(21,000) for the three months ended January 31, 2021, down from $58,000 for the same period in 2020, due to lower interest rates[120]. - The provision for income taxes increased to $710,000 for the three months ended January 31, 2021, compared to $396,000 for the same period in 2020, due to reported income[121]. Operational Highlights - The Company closed on six homes during the three months ended January 31, 2021 at an average selling price of $210,000[108]. - The Company had 21 homes in production as of January 31, 2021, with 6 homes under contract representing approximately $1,370,000 of expected sales revenue[108]. - Rental revenues for the three months ended January 31, 2021 decreased by $28,000 compared to the prior period, primarily due to reduced rent from tenants[109]. - General and administrative expenses for the Company are detailed in the financial statements, reflecting operational costs[115]. Financial Position - Real estate inventory increased from $53.4 million at April 30, 2020, to $55.6 million at January 31, 2021, driven by land development activities[123]. - Accounts payable and accrued expenses rose from $3.1 million at April 30, 2020, to $4.1 million at January 31, 2021, primarily due to increased land development activity[125]. - Notes payable increased from $3.9 million at April 30, 2020, to $5.2 million at January 31, 2021, due to additional borrowings for land development[126]. Financing Activities - The Company entered into a $4 million revolving line of credit with BOKF in February 2021 for general corporate purposes, maturing in February 2024[127]. - MHWDC's total book value of mortgaged property was $1,298,000 as of January 31, 2021, and it was in compliance with financial covenants[138]. - Las Fuentes Village II, LLC had an outstanding principal amount of $2,514,000 on its loan as of January 31, 2021, with an interest rate of 3.04%[140]. - The acquisition financing for the Meso AM subdivision included a deferred purchase price of $1,838,000, with a total book value of mortgaged property at $5,480,000 as of January 31, 2021[141]. - The development financing for Lavender Fields, LLC had an outstanding principal amount of $852,000 as of January 31, 2021, with an interest rate of 3.75%[142]. - The Company received a loan of $298,000 under the Paycheck Protection Program, which was fully forgiven along with accrued interest of $2,000[143]. Shareholder Activities - The Company authorized a share repurchase program to buy up to 1,000,000 shares, with a total expenditure not exceeding $5,000,000[144]. - The Company repurchased 675,616 shares at a price of $6.18 per share in October 2020[144]. Capital Expenditures - Capital expenditures were $3,000 for both the three and nine months ended January 31, 2021, compared to $4,000 and $18,000 for the same periods in 2020[147]. - The Company capitalized $23,000 in interest and fees related to loans during the nine months ended January 31, 2021[140]. Regulatory Considerations - The Company is subject to various environmental regulations that may impact land development and homebuilding activities[148].