8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 8, 2005

Resource America, Inc.

(Exact name of registrant as specified in its charter)

0-4408

(Commission

File Number)

Delaware	72-0654145
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
1845 Walnut Street, Suite 1000
Philadelphia, PA	19103
(Address of principal executive offices)	(Zip code)

Registrant's telephone number, including area code: 215-546-5005

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4

Item 2.02Results of Operations and Financial Condition

On August 8, 2005, Resource America, Inc. issued an earnings release announcing its financial results for the third fiscal quarter ended June 30, 2005. A copy of the earnings release is included as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01Financial Statements and Exhibits

(c)   Exhibits.

99.1Press Release dated August 8, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	RESOURCE AMERICA, INC.
	(Registrant)
Date: August 8, 2005	By:/s/ Steven J. Kessler
	STEVEN J. KESSLER
	Executive Vice President and Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE

CONTACT:STEVEN KESSLER

CHIEF FINANCIAL OFFICER

RESOURCE AMERICA, INC.

1845 WALNUT STREET, SUITE 1000

PHILADELPHIA, PA 19103

215/546-5005, 215/546-4785 (fax)

RESOURCE AMERICA, INC.

REPORTS OPERATING RESULTS

FOR THIRD FISCAL QUARTER ENDED JUNE 30, 2005

Philadelphia, PA August 8, 2005 - Resource America, Inc. (Nasdaq: REXI) (the "Company") reported income from continuing operations of $3.5 million and $5.4 million for the third fiscal quarter and nine months ended June 30, 2005 as compared to a net loss from continuing operations of $854,000 and $220,000 for the third fiscal quarter and nine months ended June 30, 2004, an increase of $4.4 million and $5.6 million, respectively. Net income from continuing operations per common share-diluted was $0.19 and $0.28 per common share for the third fiscal quarter and nine months ended June 30, 2005 as compared to a net loss from continuing operations per common shared-diluted of $0.05 and $0.01 per common share for the third fiscal quarter and nine months ended June 30, 2004, an increase of $0.24 and $0.29, respectively. The Company's effective tax rate this quarter was 46% due to the spin off of Atlas America, Inc. The Company anticipates that its tax rate will decrease in future quarters.

Net income was $1.6 million and $17.6 million for the third fiscal quarter and nine months ended June 30, 2005 as compared to $2.8 million and $12.4 million for the third fiscal quarter and nine months ended June 30, 2004, a decrease of $1.2 million and an increase of $5.3 million, respectively.  Net income per common share-diluted was $0.09 and $0.93 per common share for the third fiscal quarter and nine months ended June 30, 2005 as compared to net income per common share-diluted of $0.15 and $0.68 per common share for the third fiscal quarter and nine months ended June 30, 2004, respectively.  Net income is after discontinued operations which includes results from Atlas America, Inc. (Nasdaq: ATLS), the Company’s former 80% owned subsidiary that was spun-off at June 30, 2005.  In addition, discontinued operations includes charges incurred in connection with the spin-off and a write-down related to an agreement entered into to sell one of the Company’s real estate investments.  The Company expects to receive approximately $20.0 million from the sale of this asset.

.

Earnings (loss) from continuing operations before interest, taxes, depreciation and amortization (“EBITDA”) were $8.2 million for the third fiscal quarter ended June 30, 2005 as compared to $281,000 for the third fiscal quarter ended June 30, 2004, an increase of $7.9 million. The following reconciles EBITDA to our income (loss) from continuing operations for the third fiscal quarter ended June 30, 2005 and 2004 (in thousands):

	Three Months Ended
	June 30,
		2005		2004
Income (loss) from continuing operations	$	3,522	$	(854	)
Plus:
Interest expense		863		832
Provision (recovery) for income taxes		2,955		(439	)
Depreciation and amortization		820		742
EBITDA from continuing operations	$	8,160	$	281

Management of the Company believes that EBITDA from continuing operations provides additional information with respect to the Company’s ability to meet its debt service, capital expenditures and working capital requirements. EBITDA is a commonly used measure of a business’ ability to generate cash flow without consideration of its financing structure. This measure is widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. It is also a financial measurement that, with certain negotiated adjustments, is reported to the Company’s banks to establish conformance with its financial covenants under its current credit facilities. EBITDA is not a measure of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income or cash flows from operating activities prepared in accordance with GAAP.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, equipment finance, and real estate sectors. At June 30, 2005, the Company managed approximately $5.7 billion of assets in these sectors as follows:

• Fnancial fund management$ 4.9 billion
• Equipment finance  $ 0.3 billion
• Real estate    $ 0.5 billion

For more information, please visit our website at www.resourceamerica.com or contact investor relations at pschreiber@resourceamerica.com.

Highlights for the Third Fiscal Quarter Ended June 30, 2005 and Recent Developments

All segments participated in this growth as follows:

CORPORATE:

® On June 30, 2005, the Company completed the spin-off of Atlas America, Inc. The Company distributed to its stockholders 0.59367 shares of common stock of ATLS for each outstanding share of the Company’s common stock owned as of the record date of June 24, 2005. The distribution was structured as tax-free to the Company’s stockholders (other than with respect to any cash received in lieu of fractional shares).

® The Company increased its managed assets to $5.7 billion at June 30, 2005 from $2.7 billion (113%) at June 30, 2004.

®  The Company increased its revenues to $19.4 million in the third fiscal quarter ended June 30, 2005, an increase of 169% as compared to the quarter ended June 30, 2004.

®  The Company had cash and cash equivalents of $42.9 million at June 30, 2005 as compared to $30.9 million at September 30, 2004. Both cash balances exclude ATLS cash.

®  Total stockholders’ equity was $190.7 million at June 30, 2005 which reflects the spin-off of ATLS as compared to $257.9 million at September 30, 2004.

FINANCIAL FUND MANAGEMENT:

® The Company’s financial fund management division increased its managed assets to $4.9 billion at June 30, 2005 from $2.1 billion (135%) at June 30, 2004.

® Financial fund management revenues increased to $4.8 million in the third fiscal quarter ended June 30, 2005, an increase of $3.9 million (399%) from the quarter ended June 30, 2004.

® Trapeza, the Company’s fund manager that invests in and manages trust preferred securities of bank and bank holding companies, increased its assets under management to $2.6 billion as of June 30, 2005, an increase of $571.2 million from June 30, 2004.

® Ischus Capital Management, LLC (“Ischus”), the Company’s fund manager that invests in and manages Asset-Backed Securities (“ABS”), increased its assets under management to $2.1 billion as of June 30, 2005, an increase of $1.9 billion from June 30, 2004.

® In July 2005, Ischus closed Ischus CDO II, Ltd., a collateralized debt obligation (“CDO”) secured by $400.0 million of ABS. Ischus will manage this vehicle on behalf of Resource Capital Corp. (“RCC”).

® Apidos Capital Management, LCC (“Apidos”), the Company’s fund manager that invests in and manages syndicated bank loans, increased its assets under management to $189.0 million as of June 30, 2005. Apidos was formed in January 2005.

® In August 2005, Apidos closed Apidos CDO I, Ltd., a CDO secured by $350.0 million of syndicated bank loans. Apidos will manage this vehicle on behalf of RCC.

EQUIPMENT FINANCE:

® LEAF Financial Corporation (“LEAF”), the Company’s equipment finance fund manager, increased its assets under management to $290.7 million as of June 30, 2005, an increase of $151.8 million (109%) from June 30, 2004.

® LEAF’s revenues increased to $3.5 million in the third fiscal quarter ended June 30, 2005, an increase of $2.2 million (163%) from the quarter ended June 30, 2004.

® LEAF and Merrill Lynch have entered into a new agreement through which LEAF will originate and service lease transactions on behalf of Municipal Tax-Exempt Trust LEAF 2005, funded by Merrill Lynch.

REAL ESTATE:

® Resource Real Estate Holdings, Inc. (“RRE”), the Company’s fund manager that invests in and manages real estate assets, increased assets under management to $481.6 million as of June 30, 2005, an increase of $43.0 million (9.8%) from June 30, 2004.

® RRE revenues increased to $11.1 million in the third fiscal quarter ended June 30, 2005 an increase of $6.2 million (126%) from the quarter ended June 30, 2004.

® Refinanced a mortgage in which the Company has a 50% equity interest recognizing a gain of $4.2 million and cash of $13.6 million.

® Resource Real Estate Investors II private offering closed on July 15, 2005 raising $14.2 million. From October 1, 2004 through August 6, 2005, RRE has raised over $25.0 million of equity for investments in real estate which it will acquire and manage.

® On July 29, 2005, the Company definitively agreed to sell its interest in the Alex Brown building to ACP Mid-Atlantic LLC. In connection with the sale, the Company expects to receive approximately $20.0 million in cash and assumption by the buyer of $65.0 million in debt. Based on the agreement, a writedown of $5.0 million net of tax was charged to discontinued operations in the third fiscal quarter ended June 30, 2005.

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed or implied in this release. For information pertaining to risks relating to these forward-looking statements, reference is made to the section “Risk Factors” contained in Item 1 of the Company’s Annual Report on Form 10-K.

The remainder of this release contains the Company’s consolidated statements of income. Such information is unaudited.

RESOURCE AMERICA, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
		2005			2004			2005			2004
REVENUES
Real estate	$	11,104		$	4,921		$	20,008		$	13,575
Equipment finance		3,481			1,326			9,190			4,191
Financial fund management(1)		4,828			968			10,908			4,046
		19,413			7,215			40,106			21,812
COSTS AND EXPENSES
Real estate		4,242			2,207			11,014			7,641
Equipment finance		2,467			1,975			6,976			5,627
Financial fund management		2,263			689			4,720			1,300
General and administrative		1,879			3,840			5,514			7,403
Start-up costs − Resource Capital Corp.		309			−			1,132			−
Depreciation and amortization		820			742			2,133			1,758
Provision (recovery) for possible losses		(12	)		182			150			582
		11,968			9,635			31,639			24,311
OPERATING INCOME (LOSS)		7,445			(2,420	)		8,467			(2,499	)
OTHER INCOME (EXPENSE)
Interest expense		(863	)		(832	)		(2,167	)		(4,405	)
Minority interest in financial fund management entities		(415	)		−			(1,158	)		−
Other income, net		310			1,959			3,788			6,571
		(968	)		1,127			463			2,166
Income (loss) from continuingoperations before taxes		6,477			(1,293	)		8,930			(333	)
Provision (benefit) for income taxes		2,955			(439	)		3,572			(113	)
Income (loss) from continuing operations		3,522			(854	)		5,358			(220	)
Income (loss) from discontinued operations, net of tax		(1,912	)		3,700			12,281			12,571
Net income	$	1,610		$	2,846		$	17,639		$	12,351
Basic earnings (loss) per common share:
From continuingoperations	$	0.20		$	(0.05	)	$	0.30		$	(0.01	)
Discontinued operations		(0.11	)		0.21			0.70			0.72
Net income	$	0.09		$	0.16		$	1.00		$	0.71
Weighted average shares outstanding		17,716			17,452			17,582			17,393
Diluted earnings (loss) per common share:
From continuing operations	$	0.19		$	(0.05	)	$	0.28		$	(0.01	)
Discontinued operations		(0.10	)		0.20			0.65			0.69
Net income	$	0.09		$	0.15		$	0.93		$	0.68
Weighted average shares outstanding		18,926			18,599			18,819			18,189
Dividends declared per common share	$	0.05		$	0.03		$	0.15		$	0.10

(1) Includes $1.4 million and $1.8 million of revenues related to Resource Capital Corp. for the three months ended June 30, 2005 and for the period from March 8, 2005 (inception) through June 30, 2005, respectively.