Nevada
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001-15663
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75-2847135
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(State or other
jurisdiction of incorporation)
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(Commission
File No.)
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(I.R.S. Employer
Identification No.)
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1603 LBJ Freeway, Suite 800
Dallas, Texas
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75234
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(Address of principal executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits.
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Exhibit Designation
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Description of Exhibit
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99.1*
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Press Release dated November 14, 2012.
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_____________________
*Furnished herewith.
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Dated:November 15, 2012 |
AMERICAN REALTY INVESTORS, INC.
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By: /s/ Gene S. Bertcher | |
Gene S. Bertcher, Executive Vice
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President and Chief Financial Officer |
NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact:
American Realty Investors, Inc.
Investor Relations
(800) 400-6407
investorelations@americanrealtyinvest.com
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AMERICAN REALTY INVESTORS, INC.
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|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
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|||||||||||||||||
(unaudited)
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|||||||||||||||||
For the Three Months Ended
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For the Nine Months Ended
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||||||||||||||||
September 30,
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September 30,
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||||||||||||||||
2012
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2011
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2012
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2011
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||||||||||||||
(dollars in thousands, except share and per share amounts)
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|||||||||||||||||
Revenues: | |||||||||||||||||
Rental and other property revenues (including $164 and $0 for the three months and
$499 and $0 for the nine months ended 2012 and 2011 respectively from related parties)
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$ | 28,918 | $ | 29,109 | $ | 89,515 | $ | 85,589 | |||||||||
Expenses: | |||||||||||||||||
Property operating expenses (including $305 and $274 for the three months and $855
and $872 for the nine months ended 2012 and 2011 respectively from related parties)
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16,045 | 15,990 | 47,132 | 46,657 | |||||||||||||
Depreciation and amortization
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5,495 | 5,218 | 16,317 | 15,380 | |||||||||||||
General and administrative (including $769 and $1,011 for the three months and $2,587
and $3,440 for the nine months ended 2012 and 2011 respectively from related parties)
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1,546 | 3,641 | 5,052 | 10,556 | |||||||||||||
Provision on impairment of notes receivable and real estate assets
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- | - | - | 5,622 | |||||||||||||
Advisory fee to related party
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2,215 | 3,241 | 7,573 | 10,225 | |||||||||||||
Total operating expenses
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25,301 | 28,090 | 76,074 | 88,440 | |||||||||||||
Operating income (loss)
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3,617 | 1,019 | 13,441 | (2,851 | ) | ||||||||||||
Other income (expense): | |||||||||||||||||
Interest income (including $2,169 and $448 for the three months and $9,797 and $2,071
for the nine months ended 2012 and 2011 respectively from related parties)
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2,280 | 1,039 | 10,342 | 2,910 | |||||||||||||
Other income (including $1,500 and $0 for the three months and $4,500 and $0 for the
nine months ended 2012 and 2011 respectively from related parties)
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1,535 | 115 | 5,334 | 1,881 | |||||||||||||
Mortgage and loan interest (including $903 and $48 for the three months and $2,756
and $1,628 for the nine months ended 2012 and 2011 respectively from related parties)
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(9,790 | ) | (13,813 | ) | (44,009 | ) | (43,710 | ) | |||||||||
Loss on sale of investments
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- | 91 | (361 | ) | 91 | ||||||||||||
Earnings from unconsolidated subsidiaries and investees
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134 | (30 | ) | 284 | (104 | ) | |||||||||||
Total other expenses
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(5,841 | ) | (12,598 | ) | (28,410 | ) | (38,932 | ) | |||||||||
Loss before gain on land sales, non-controlling interest, and taxes
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(2,224 | ) | (11,579 | ) | (14,969 | ) | (41,783 | ) | |||||||||
Gain (loss) on land sales
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2,898 | (942 | ) | 6,615 | 18,431 | ||||||||||||
Income (loss) from continuing operations before tax
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674 | (12,521 | ) | (8,354 | ) | (23,352 | ) | ||||||||||
Income tax benefit (expense)
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(13 | ) | 2,815 | 2,535 | 5,166 | ||||||||||||
Net income (loss) from continuing operations
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661 | (9,706 | ) | (5,819 | ) | (18,186 | ) | ||||||||||
Discontinued operations:
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|||||||||||||||||
Loss from discontinued operations
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(621 | ) | (212 | ) | (1,596 | ) | (5,312 | ) | |||||||||
Gain on sale of real estate from discontinued operations
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585 | 8,256 | 8,840 | 20,073 | |||||||||||||
Income tax benefit (expense) from discontinued operations
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13 | (2,815 | ) | (2,535 | ) | (5,166 | ) | ||||||||||
Net income (loss) from discontinued operations
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(23 | ) | 5,229 | 4,709 | 9,595 | ||||||||||||
Net income (loss)
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638 | (4,477 | ) | (1,110 | ) | (8,591 | ) | ||||||||||
Net (income) loss attributable to non-controlling interest
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(74 | ) | 4,830 | 37 | 14,175 | ||||||||||||
Net income (loss) attributable to American Realty Investors, Inc.
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564 | 353 | (1,073 | ) | 5,584 | ||||||||||||
Preferred dividend requirement
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(613 | ) | (613 | ) | (1,839 | ) | (1,843 | ) | |||||||||
Net income (loss) applicable to common shares
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$ | (49 | ) | $ | (260 | ) | $ | (2,912 | ) | $ | 3,741 | ||||||
Earnings per share - basic
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|||||||||||||||||
Loss from continuing operations
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$ | - | $ | (0.48 | ) | $ | (0.66 | ) | $ | (0.51 | ) | ||||||
Income from discontinued operations
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- | 0.45 | 0.41 | 0.83 | |||||||||||||
Net income (loss) applicable to common shares
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$ | - | $ | (0.03 | ) | $ | (0.25 | ) | $ | 0.32 | |||||||
Earnings per share - diluted
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|||||||||||||||||
Loss from continuing operations
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$ | - | $ | (0.48 | ) | $ | (0.66 | ) | $ | (0.51 | ) | ||||||
Income from discontinued operations
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- | 0.45 | 0.41 | 0.83 | |||||||||||||
Net income (loss) applicable to common shares
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$ | - | $ | (0.03 | ) | $ | (0.25 | ) | $ | 0.32 | |||||||
Weighted average common share used in computing earnings per share
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11,525,389 | 11,525,389 | 11,525,389 | 11,514,749 | |||||||||||||
Weighted average common share used in computing diluted earnings per share
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11,525,389 | 11,525,389 | 11,525,389 | 11,514,749 | |||||||||||||
Amounts attributable to American Realty Investors, Inc.
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|||||||||||||||||
Loss from continuing operations
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$ | 587 | $ | (4,876 | ) | $ | (5,782 | ) | $ | (4,011 | ) | ||||||
Income (loss) from discontinued operations
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(23 | ) | 5,229 | 4,709 | 9,595 | ||||||||||||
Net income (loss)
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$ | 564 | $ | 353 | $ | (1,073 | ) | $ | 5,584 |
AMERICAN REALTY INVESTORS, INC.
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
(unaudited)
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||||||||
September 30,
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December 31,
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|||||||
2012
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2011
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|||||||
(dollars in thousands, except share and par value amounts)
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||||||||
Assets
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||||||||
Real estate, at cost
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$ | 1,056,941 | $ | 1,120,122 | ||||
Real estate held for sale at cost, net of depreciation ($0 for 2012 and $1,752 for 2011)
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- | 15,015 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($15,290 and $9,790 in 2012 and 2011)
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46,601 | 49,982 | ||||||
Less accumulated depreciation
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(159,747 | ) | (158,489 | ) | ||||
Total real estate
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943,795 | 1,026,630 | ||||||
Notes and interest receivable
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||||||||
Performing (including $110,987 and $104,969 in 2012 and 2011 from related parties)
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117,767 | 110,136 | ||||||
Non-performing
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4,256 | 4,787 | ||||||
Less allowance for estimated losses (including $18,962 and $8,962 in 2012 and 2011 from related parties)
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(21,704 | ) | (13,383 | ) | ||||
Total notes and interest receivable
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100,319 | 101,540 | ||||||
Cash and cash equivalents
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6,738 | 20,312 | ||||||
Investments in unconsolidated subsidiaries and investees
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7,625 | 10,746 | ||||||
Related party receivable
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1,063 | - | ||||||
Other assets (including $21 in 2012 and $11 in 2011 from related parties)
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74,050 | 76,243 | ||||||
Total assets
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$ | 1,133,590 | $ | 1,235,471 | ||||
Liabilities and Shareholders’ Equity
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Liabilities:
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||||||||
Notes and interest payable
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$ | 789,623 | $ | 855,619 | ||||
Notes related to assets held for sale
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- | 13,830 | ||||||
Notes related to subject to sales contracts
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53,442 | 44,516 | ||||||
Stock-secured notes payable and margin debt
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26,737 | 26,898 | ||||||
Related party payables
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- | 10,294 | ||||||
Deferred gain (including $74,846 and $71,964 in 2012 and 2011 from sales to related parties)
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76,691 | 78,750 | ||||||
Accounts payable and other liabilities (including $2,007 and $1,822 in 2012 and 2011 to related parties)
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95,886 | 110,307 | ||||||
1,042,379 | 1,140,214 | |||||||
Shareholders’ equity:
|
||||||||
Preferred stock, Series A: $2.00 par value, authorized 15,000,000 shares, issued and outstanding 3,353,954
shares in 2012 and 2011 (liquidation preference $10 per share), including 900,000 shares in 2012 and 2011
held by subsidiaries
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4,908 | 4,908 | ||||||
Common stock, $.01 par value, authorized 100,000,000 shares; issued 11,941,174 shares and outstanding
11,525,389 shares in 2012 and 2011
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115 | 115 | ||||||
Treasury stock at cost; 415,785 shares in 2012 and 2011 and 229,214 and 236,587 shares held by TCI as
of 2012 and 2011
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(6,395 | ) | (6,395 | ) | ||||
Paid-in capital
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106,396 | 105,388 | ||||||
Retained earnings
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(48,559 | ) | (47,486 | ) | ||||
Accumulated other comprehensive income
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(786 | ) | (786 | ) | ||||
Total American Realty Investors, Inc. shareholders' equity
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55,679 | 55,744 | ||||||
Non-controlling interest
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35,532 | 39,513 | ||||||
Total equity
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91,211 | 95,257 | ||||||
Total liabilities and equity
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$ | 1,133,590 | $ | 1,235,471 |