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, 2013.
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_____________________
*Furnished herewith.
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Dated: November 14, 2013
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AMERICAN REALTY INVESTORS, INC.
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By: /s/ Gene S. Bertcher | |
Gene S. Bertcher, Executive Vice | |
President and Chief Financial Officer |
NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact
American Realty Investors, Inc.
Gene Bertcher - Investor Relations
(800) 400-6407
Investor.relations@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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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
(dollars in thousands, except per share amounts)
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||||||||||||||||
Revenues:
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||||||||||||||||
Rental and other property revenues (including $165 and $164 for the three months and $497
and $499 for the nine months ended 2013 and 2012, respectively, from related parties)
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$ | 27,482 | $ | 27,771 | $ | 81,455 | $ | 81,683 | ||||||||
Expenses:
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||||||||||||||||
Property operating expenses (including $204 and $234 for the three months and $629 and
$753 for the nine months ended 2013 and 2012, respectively, from related parties)
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14,042 | 13,894 | 39,601 | 39,988 | ||||||||||||
Depreciation and amortization
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5,304 | 5,033 | 15,608 | 14,927 | ||||||||||||
General and administrative (including $933 and $747 for the three months and $2,924 and
$2,587 for the nine months ended 2013 and 2012, respectively, from related parties)
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1,919 | 1,332 | 6,181 | 5,105 | ||||||||||||
Provision on impairment of notes receivable and real estate assets
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1,125 | - | 1,926 | - | ||||||||||||
Advisory fee to related party
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2,584 | 2,215 | 7,625 | 7,573 | ||||||||||||
Total operating expenses
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24,974 | 22,474 | 70,941 | 67,593 | ||||||||||||
Operating income
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2,508 | 5,297 | 10,514 | 14,090 | ||||||||||||
Other income (expenses):
|
||||||||||||||||
Interest income (including $3,718 and $2,245 for the three months and $10,574 and $10,416
for the nine months ended 2013 and 2012, respectively, from related parties)
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3,778 | 2,280 | 10,831 | 10,342 | ||||||||||||
Other income and expenses (including $0 and $1,500 for the three months and $0 and $4,500
for the nine months ended 2013 and 2012, respectively, from related parties)
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64 | 1,192 | 2,750 | 5,173 | ||||||||||||
Mortgage and loan interest (including $1,168 and $903 for the three months and $2,849 and
$2,756 for the nine months ended 2013 and 2012, respectively, from related parties)
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(10,723 | ) | (10,962 | ) | (32,883 | ) | (35,439 | ) | ||||||||
Deferred borrowing costs amortization
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(264 | ) | 547 | (3,700 | ) | (2,340 | ) | |||||||||
Loan charges and prepayment penalties
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(49 | ) | (35 | ) | (7,411 | ) | (6,197 | ) | ||||||||
Loss on sale of investments
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(275 | ) | - | (283 | ) | (361 | ) | |||||||||
Earnings from unconsolidated investees
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69 | 134 | 256 | 284 | ||||||||||||
Litigation settlement
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(2,764 | ) | (130 | ) | (2,752 | ) | (135 | ) | ||||||||
Total other expenses
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(10,164 | ) | (6,974 | ) | (33,192 | ) | (28,673 | ) | ||||||||
Loss before gain on land sales, non-controlling interest, and taxes
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(7,656 | ) | (1,677 | ) | (22,678 | ) | (14,583 | ) | ||||||||
Gain on land sales
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598 | 2,898 | 563 | 6,615 | ||||||||||||
Net income (loss) from continuing operations before taxes
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(7,058 | ) | 1,221 | (22,115 | ) | (7,968 | ) | |||||||||
Income tax benefit (expense)
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(95 | ) | (204 | ) | 8,827 | 2,400 | ||||||||||
Net income (loss) from continuing operations
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(7,153 | ) | 1,017 | (13,288 | ) | (5,568 | ) | |||||||||
Discontinued operations:
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||||||||||||||||
Net loss from discontinued operations
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(398 | ) | (1,168 | ) | (209 | ) | (1,982 | ) | ||||||||
Gain on sale of real estate from discontinued operations
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127 | 585 | 25,429 | 8,840 | ||||||||||||
Income tax benefit (expense) from discontinued operations
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95 | 204 | (8,827 | ) | (2,400 | ) | ||||||||||
Net income (loss) from discontinued operations
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(176 | ) | (379 | ) | 16,393 | 4,458 | ||||||||||
Net income (loss)
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(7,329 | ) | 638 | 3,105 | (1,110 | ) | ||||||||||
Net (income) loss attributable to non-controlling interest
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903 | (74 | ) | (803 | ) | 37 | ||||||||||
Net income (loss) attributable to American Realty Investors, Inc.
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(6,426 | ) | 564 | 2,302 | (1,073 | ) | ||||||||||
Preferred dividend requirement
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(613 | ) | (613 | ) | (1,839 | ) | (1,839 | ) | ||||||||
Net income (loss) applicable to common shares
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$ | (7,039 | ) | $ | (49 | ) | $ | 463 | $ | (2,912 | ) | |||||
Earnings per share - basic
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||||||||||||||||
Net income (loss) from continuing operations
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$ | (0.60 | ) | $ | 0.03 | $ | (1.38 | ) | $ | (0.64 | ) | |||||
Net income (loss) from discontinued operations
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(0.02 | ) | (0.03 | ) | 1.42 | 0.39 | ||||||||||
Net income (loss) applicable to common shares
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$ | (0.62 | ) | $ | - | $ | 0.04 | $ | (0.25 | ) | ||||||
Earnings per share - diluted
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||||||||||||||||
Net income (loss) from continuing operations
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$ | (0.60 | ) | $ | 0.03 | $ | (1.38 | ) | $ | (0.64 | ) | |||||
Net income (loss) from discontinued operations
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(0.02 | ) | (0.03 | ) | 1.42 | 0.39 | ||||||||||
Net income (loss) applicable to common shares
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$ | (0.62 | ) | $ | - | $ | 0.04 | $ | (0.25 | ) | ||||||
Weighted average common shares used in computing earnings per share
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11,525,389 | 11,525,389 | 11,525,389 | 11,525,389 | ||||||||||||
Weighted average common shares used in computing diluted earnings per share
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11,525,389 | 11,525,389 | 11,525,389 | 11,525,389 | ||||||||||||
Amounts attributable to American Realty Investors, Inc.
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||||||||||||||||
Net income (loss) from continuing operations
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$ | (6,250 | ) | $ | 943 | $ | (14,091 | ) | $ | (5,531 | ) | |||||
Net income (loss) from discontinued operations
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(176 | ) | (379 | ) | 16,393 | 4,458 | ||||||||||
Net income (loss) applicable to American Realty Investors, Inc.
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$ | (6,426 | ) | $ | 564 | $ | 2,302 | $ | (1,073 | ) |
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,
|
|||||||
2013
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2012
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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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$ | 995,380 | $ | 1,031,632 | ||||
Real estate held for sale at cost, net of depreciation ($151 for 2013 and $4,393 for 2012)
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- | 17,040 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($1,861 for 2013 and $15,948 for 2012)
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39,794 | 42,286 | ||||||
Less accumulated depreciation
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(164,387 | ) | (160,525 | ) | ||||
Total real estate
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870,787 | 930,433 | ||||||
Notes and interest receivable
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||||||||
Performing (including $114,187 in 2013 and $114,275 in 2012 from related parties)
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121,361 | 120,998 | ||||||
Non-performing
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3,901 | 4,175 | ||||||
Less allowance for doubtful accounts (including $15,809 in 2013 and $18,962 in 2012 from related parties)
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(20,123 | ) | (21,704 | ) | ||||
Total notes and interest receivable
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105,139 | 103,469 | ||||||
Cash and cash equivalents
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9,425 | 17,141 | ||||||
Investments in unconsolidated investees
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10,337 | 8,168 | ||||||
Other assets
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69,688 | 76,134 | ||||||
Total assets
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$ | 1,065,376 | $ | 1,135,345 | ||||
Liabilities and Shareholders’ Equity
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||||||||
Liabilities:
|
||||||||
Notes and interest payable
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$ | 750,994 | $ | 769,201 | ||||
Notes related to assets held for sale
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2,466 | 18,915 | ||||||
Notes related to subject to sales contracts
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28,068 | 55,976 | ||||||
Stock-secured notes payable and margin debt
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24,276 | 25,765 | ||||||
Related party payables
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8,430 | 10,922 | ||||||
Deferred gain (including $74,303 in 2013 and $71,303 in 2012 from sales to related parties)
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76,148 | 73,148 | ||||||
Accounts payable and other liabilities (including $11,354 in 2013 and $15,746 in 2012 to related parties)
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88,829 | 96,314 | ||||||
979,211 | 1,050,241 | |||||||
Shareholders’ equity:
|
||||||||
Preferred stock, Series A: $2.00 par value, authorized 15,000,000 shares, issued and outstanding
3,353,954 shares in 2013 and 2012 (liquidation preference $10 per share), including 900,000 shares in
2013 and 2012 held by subsidiaries. Series K: $2.00 par value, authorized, issued and outstanding
135,000 and 0 shares in 2013 and 2012, respectively (liquidation preference $22 per share), held by
TCI (consolidated)
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4,908 | 4,908 | ||||||
Common stock, $0.01 par value, authorized 100,000,000 shares; issued 11,941,174 shares and
outstanding 11,525,389 shares in 2013 and 2012
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115 | 115 | ||||||
Treasury stock (Common Stock) at cost; 415,785 shares in 2013 and 2012 and 229,214 shares
held by TCI (consolidated) as of 2013 and 2012
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(6,395 | ) | (6,395 | ) | ||||
Paid-in capital
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103,671 | 105,700 | ||||||
Retained earnings
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(50,769 | ) | (53,071 | ) | ||||
Accumulated other comprehensive loss
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(786 | ) | (786 | ) | ||||
Total American Realty Investors, Inc. shareholders' equity
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50,744 | 50,471 | ||||||
Non-controlling interest
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35,421 | 34,633 | ||||||
Total shareholders' equity
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86,165 | 85,104 | ||||||
Total liabilities and shareholders' equity
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$ | 1,065,376 | $ | 1,135,345 |