AMREP(US:AXR)2021-07-26 16:00Financial Performance - For the year ended April 30, 2021, the company reported a net income of $7,392,000, or $0.95 per diluted share, compared to a net loss of $5,903,000, or $0.73 per share in 2020[48]. - Total revenues for 2021 were $40,069,000, representing a 113% increase from $18,783,000 in 2020, driven primarily by land sale revenues which increased by 58% to $25,175,000[50][52]. - Home sale revenues for 2021 were $3,079,000, marking the company's first home sales, with 14 homes sold at an average price of $220,000[54]. - General and administrative expenses decreased by 58% to $5,420,000 in 2021 from $12,957,000 in 2020, primarily due to the absence of non-cash impairment charges recorded in 2020[64][67]. - Other income for 2021 was $1,028,000, including a settlement payment of $650,000 and $300,000 of debt forgiveness from the Paycheck Protection Program[69]. - The provision for income taxes for 2021 was $2,643,000, compared to a benefit of $1,722,000 for 2020[69]. Revenue and Cost Analysis - Land sale cost of revenues for 2021 was $17,296,000, a 30% increase from $13,308,000 in 2020, reflecting higher sales volume[60]. - Home sale cost of revenues for 2021 was $2,584,000, with a gross margin of 16.1%[61]. - The average gross profit percentage on land sales in New Mexico increased to 31.3% in 2021 from 16.7% in 2020, attributed to lower than estimated costs and higher demand[61]. - Building sales and other revenues increased by $9,088,000 to $11,099,000 in 2021, driven by significant property sales in New Mexico and Florida[58]. Assets and Liabilities - Real estate inventory increased by $2,140,000 from 2020 to 2021, totaling $55,589,000[79]. - Investment assets, net decreased by $5,062,000 from 2020 to 2021, totaling $13,582,000[82]. - Accounts payable and accrued expenses increased by $1,333,000 from 2020 to 2021, primarily due to increased builders' deposits and land development activity[85]. - Accrued pension costs decreased by $4,538,000 from 2020 to 2021, reflecting contributions and favorable investment results[86]. - Notes payable, net decreased from $3,890,000 in 2020 to $3,448,000 in 2021 due to repayments and additional borrowings[87]. - Deferred income taxes decreased by $3,331,000 from 2020 to 2021, primarily due to a reduction in federal net operating loss carry forwards[85]. Operational Insights - The Company had 33 homes in production as of April 30, 2021, with 23 homes under contract representing $6,567,000 of expected sales revenue[54]. - Interest expense decreased to $(40,000) in 2021 from $334,000 in 2020, mainly due to lower interest rates on cash balances[68]. - Capital expenditures for 2021 were $5,000, down from $9,000 in 2020, primarily for technology upgrades[91]. - The Company had outstanding principal amounts of $3,482 thousand as of April 30, 2021, with interest rates ranging from 0% to 4.50%[88]. - The Company did not have any off-balance sheet arrangements as of April 30, 2021[92]. Market Conditions and Future Outlook - Inflation has been a concern, with potential increases in costs for land, materials, and labor affecting operating margins[93]. - The Company believes it has adequate cash and financing to support anticipated capital expenditures and land development spending in fiscal year 2021[91]. - The Company is facing price increases due to tariffs and labor shortages, which may impact its ability to raise sales prices[93]. - The Company anticipates that rising housing costs may outpace income increases, potentially decreasing demand for homes[93]. - The Company has a 15-acre property in the La Mirada subdivision planned for future development[96]. - The Company has a Paycheck Protection Program loan of $298 thousand, fully outstanding as of April 30, 2020[89]. - The Company has no obligation to update forward-looking statements regarding its financial position or operations[96].