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 6, 2007

Resource America, Inc.

(Exact name of registrant as specified in its chapter)

Delaware	0-4408	72-0654145
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
One Crescent Drive, Suite 203, Navy Yard Corporate Center Philadelphia, PA		19112
(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:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

Item 2.02   Results of Operations and Financial Condition.

 On August 6, 2007, Resource America, Inc. issued an earnings release announcing its financial results for the third fiscal quarter ended June 30, 2007.  A copy of the earnings release is included as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01   Financial Statements and Exhibits

  (c)Exhibits

     99.1 Press Release dated August 6, 2007

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.
Date: August 7, 2007	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.

ONE CRESCENT DRIVE, SUITE 203

PHILADELPHIA, PA 19112

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

RESOURCE AMERICA, INC.

REPORTS OPERATING RESULTS

FOR THE THIRD FISCAL QUARTER ENDED JUNE 30, 2007

Philadelphia, PA, August 6, 2007 - Resource America, Inc. (Nasdaq: REXI) (the "Company") reported income from continuing operations of $6.0 million and $15.8 million for the third fiscal quarter and nine months ended June 30, 2007, respectively, as compared to $3.1 million and $13.4 million for the third fiscal quarter and nine months ended June 30, 2006, respectively, an increase of $2.8 million (91%) and $2.4 million (18%), respectively.  Income from continuing operations per common share-diluted was $0.31 and $0.83 per common share for the third fiscal quarter and nine months ended June 30, 2007, respectively, as compared to income from continuing operations per common share-diluted of $0.16 and $0.70 per common share for the third fiscal quarter and nine months ended June 30, 2006, respectively, an increase of $0.15 (94%) and $0.13 (19%), respectively.

The Company’s discontinued operations for the three months ended June 30, 2007 was negatively impacted primarily by $1.9 million of interest expense on the Company’s 2005 and 2004 IRS tax assessments related to its legacy loan portfolio and a $374,000 write down taken on a held for sale property, net of a tax benefit of $811,000.

Net income was $4.5 million, or $0.24 per common share-diluted, and $14.3 million, or $0.75 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2007, respectively, as compared to  net income of $3.0 million, or $0.16 per common share-diluted and $15.8 million, or $0.82 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2006, respectively.

Assets under management increased to $16.8 billion at June 30, 2007 from $10.5 billion at June 30, 2006, an increase of $6.3 billion (60%).

The following table details the Company’s assets under management by operating segment:

	At June 30,
	2007	2006
Financial fund management	$14.2 billion	$9.2 billion
Real estate	1.5 billion	0.7 billion
Commercial finance	1.1 billion	0.6 billion
	$16.8 billion	$10.5 billion

Operating income as adjusted, before depreciation and amortization, was $20.1 million and $45.8 million for the third fiscal quarter and nine months ended June 30, 2007, as compared to $5.7 million and $21.5 million for the third fiscal quarter and nine months ended June 30, 2006, an increase of $14.3 million and $24.3 million, respectively. The following reconciles operating income as adjusted to operating income (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Operating income	$	19,344	$	5,056	$	43,618	$	19,158
Plus:
Depreciation and amortization		728		681		2,156		2,355
Operating income as adjusted	$	20,072	$	5,737	$	45,774	$	21,513

Management of the Company believes that operating income as adjusted provides additional information with respect to the Company’s ability to meet its debt service, capital expenditures and working capital requirements.  This measure is similar to earnings before interest, taxes, depreciation and amortization, or EBITDA, a commonly used measure of a business’ ability to generate cash flow without consideration of its financing structure.  EBITDA is widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards.  Neither adjusted operating income nor EBITDA are measures of financial performance under generally accepted accounting principles, or 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, real estate and commercial finance sectors.

A description of how the Company calculates assets under management is set forth in Item 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2006.

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, 2007 and Recent Developments

®   The Company entered into a new 5-year $75.0 million loan and security agreement with Commerce Bank, N.A., and U.S. Bank, N.A.  This facility replaces the $25.0 million revolving credit facility the Company previously had with Commerce Bank.

®   On July 27, 2007, the Board of Directors of the Company announced a new share repurchase plan for up to $50.0 million of its outstanding shares.

®   The Company established a new division that will seek to sponsor investment vehicles that will make majority private equity investments in banks.  This division will augment the Company’s existing private equity programs that have raised $62.1 million to invest in banks.  The Company hired Kent Carstater to lead the new effort.  Mr. Carstater was formerly a principal in the investment banking group at Keefe, Bruyette & Woods, an investment bank specializing in the financial services sector.

®   Resource Capital Corp. (“RCC”), a real estate investment trust (“REIT”) managed by the Company and in which the Company owns approximately 1.9 million common shares, declared a cash dividend of $0.41 per common share for the quarter ended June 30, 2007.

®   In June 2007, LEAF Financial Corporation (“LEAF”), the Company’s commercial finance asset manager, along with its investment partnerships, acquired substantially all of the assets of the leasing division of Pacific Capital Bank, N.A., for approximately $282.2 million, including acquisition costs.  LEAF's investment partnerships acquired $269.5 million of leases and notes of which $201.7 million were acquired during the quarter ended June 30, 2007.  LEAF will retain the lease origination and management platform as well as an experienced small ticket leasing team including senior management, originations, and operations personnel that will continue to operate in California and is expected to add in excess of $100.0 million in annual lease and note origination capability.

®   LEAF increased its assets under management to $1.1 billion at June 30, 2007, an increase of $520.0 million (95%) from June 30, 2006.  LEAF increased its commercial finance originations to $396.9 million for the third fiscal quarter ended June 30, 2007, an increase of $279.2 million (237%) from the third fiscal quarter ended June 30, 2006.

®   The Company’s financial fund management operating segment increased its assets under management at June 30, 2007 to $14.2 billion, an increase of $5.0 billion (54%) from June 30, 2006.

®   Resource Real Estate Holdings, Inc. (“RRE”), the Company’s real estate asset manager that invests in and manages real estate investment vehicles for itself and for outside investors and operates the Company’s commercial real estate debt platform, increased its assets under management to $1.5 billion at June 30, 2007, an increase of $0.8 billion (112%) from June 30, 2006.

®   LEAF had three bank facilities as of June 30, 2007 with an aggregate outstanding balance of $281.0 million.  As of August 3, 2007, these three facilities had an aggregate outstanding balance of $190.6 million.  These facilities are non-recourse to the Company and are secured by the leases and notes financed thereunder, which assets had a value of $313.9 million as of June 30, 2007 and $208.5 million as of August 3, 2007. LEAF uses these bank facilities to finance leases and notes that it subsequently sells to investment partnerships that LEAF sponsors and manages.

®   The Company’s bank loan business had two outstanding warehouse facilities as of June 30, 2007, with an aggregate outstanding balance of $414.2 million ($264.5 million as of August 3, 2007). The Company shares the risk of first loss on these facilities with the financial institutions that sponsor them, but the Company’s maximum exposure under these facilities is $14.1 million after taxes, of which $9.0 million in restricted cash has been deposited in escrow.  The Company is currently marketing Apidos VI which will, upon its pricing which is anticipated to take place in September 2007, acquire the majority of the loans financed by these facilities.

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 1A of the Company’s Annual Report on Form 10-K.

The remainder of this release contains the Company’s unaudited consolidated balance sheets, consolidated statements of income, consolidated statements of cash flows and a reconciliation of net cash used in operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted.

RESOURCE AMERICA, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	June 30, 2007			September 30, 2006
	(unaudited)
ASSETS
Cash	$	17,169		$	37,622
Restricted cash		15,906			8,103
Receivables		15,671			2,312
Receivables from managed entities		22,579			8,795
Investments in commercial finance		313,900			108,850
Loans held for investment		414,290			69,314
Investments in real estate		47,097			50,104
Investment securities available-for-sale		67,487			64,857
Investments in unconsolidated entities		35,039			26,626
Property and equipment, net		11,725			9,525
Deferred income taxes		18,577			6,408
Goodwill		12,692			−
Other assets		27,599			24,237
Total assets	$	1,019,731		$	416,753
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable, accrued expenses and other liabilities	$	59,142		$	29,526
Payables to managed entities		950			1,579
Borrowings		748,631			172,238
Deferred income tax liabilities		3,246			10,746
Minority interests		8,750			9,602
Total liabilities		820,719			223,691
Commitments and contingencies		−			−
Stockholders’ equity:
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none outstanding		-			-
Common stock, $.01 par value, 49,000,000 shares authorized; 26,702,748 and 26,401,708 shares issued, respectively		267			264
Additional paid-in capital		264,461			259,882
Retained earnings		36,268			25,464
Treasury stock, at cost; 9,207,618 and 9,110,290 shares, respectively		(99,522	)		(96,960	)
ESOP loan receivable		(446	)		(465	)
Accumulated other comprehensive (loss) income		(2,016	)		4,877
Total stockholders’ equity		199,012			193,062
	$	1,019,731		$	416,753

RESOURCE AMERICA, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
REVENUES
Financial fund management	$	19,094		$	7,376		$	47,511		$	20,669
Real estate		7,008			4,500			18,580			18,360
Commercial finance		12,808			5,885			28,461			16,483
		38,910			17,761			94,552			55,512
COSTS AND EXPENSES
Financial fund management		5,925			2,700			15,878			7,764
Real estate		3,971			3,286			10,179			8,265
Commercial finance		5,416			3,911			13,607			10,382
General and administrative		3,526			2,127			9,114			7,588
Depreciation and amortization		728			681			2,156			2,355
		19,566			12,705			50,934			36,354
OPERATING INCOME		19,344			5,056			43,618			19,158
OTHER INCOME (EXPENSE)
Interest expense		(10,176	)		(1,894	)		(22,461	)		(5,559	)
Minority interests		(980	)		(465	)		(2,255	)		(1,236	)
Other income, net		2,079			809			6,418			3,644
		(9,077	)		(1,550	)		(18,298	)		(3,151	)
Income from continuing operations before income taxes and cumulative effect of a change in accounting principle		10,267			3,506			25,320			16,007
Provision for income taxes		4,312			393			9,477			2,579
Income from continuing operations before cumulative effect of a change in accounting principle		5,955			3,113			15,843			13,428
(Loss) income from discontinued operations, net of tax		(1,450	)		(113	)		(1,506	)		977
Cumulative effect of a change in accounting principle, net of tax		−			−			−			1,357
NET INCOME	$	4,505		$	3,000		$	14,337		$	15,762
Basic earnings per common share:
Continuing operations	$	0.34		$	0.18		$	0.91		$	0.76
Discontinued operations		(0.08	)		(0.01	)		(0.09	)		0.05
Cumulative effect of accounting change		−			−			−			0.08
Net income	$	0.26		$	0.17		$	0.82		$	0.89
Weighted average shares outstanding		17,569			17,536			17,463			17,727
Diluted earnings per common share:
Continuing operations	$	0.31		$	0.16		$	0.83		$	0.70
Discontinued operations		(0.07	)		−			(0.08	)		0.05
Cumulative effect of accounting change		−			−			−			0.07
Net income	$	0.24		$	0.16		$	0.75		$	0.82
Weighted average shares outstanding		19,210			19,107			19,215			19,191
Dividends declared per common share	$	0.07		$	0.06		$	0.20		$	0.18

RESOURCE AMERICA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended June 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	14,337		$	15,762
Adjustments to reconcile net income to net cash used in operating activities:
Cumulative effect of a change in accounting principle, net of tax		−			(1,357	)
Depreciation and amortization		2,712			2,355
Discount on receivables from managed entities		344			−
Equity in earnings of unconsolidated entities		(11,637	)		(6,497	)
Minority interests		2,255			1,236
Distributions from unconsolidated entities		12,995			9,824
Loss (income) from discontinued operations		1,506			(977	)
Gain on sale of assets		(6,783	)		(6,971	)
Deferred income tax (benefit) provision		(6,884	)		1,981
Non-cash compensation on long-term incentive plans		1,983			1,346
Non-cash compensation issued		1,630			1,614
Non-cash compensation received		(1,550	)		(1,259	)
Increase in commercial finance investments		(137,620	)		(49,444	)
Changes in operating assets and liabilities		(1,734	)		(15,999	)
Net cash used in operating activities of continuing operations		(128,446	)		(48,386	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(3,406	)		(3,674	)
Payments received on real estate loans and real estate		15,703			30,623
Investments in real estate		(16,245	)		(32,531	)
Purchase of investments		(19,821	)		(34,380	)
Proceeds from sale of investments		6,158			5,415
Increase in restricted cash		(7,166	)		−
Net cash paid for acquisition		(20,708	)		−
Increase in other assets		(3,423	)		(1,676	)
Net cash used in investing activities of continuing operations		(48,908	)		(36,223	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings		559,278			397,187
Principal payments on borrowings		(395,169	)		(336,925	)
Dividends paid		(3,533	)		(3,206	)
Distributions paid to minority interest holders		(2,040	)		(1,274	)
Proceeds from issuance of stock		927			125
Purchase of treasury stock		(2,777	)		(13,458	)
Tax benefit from the exercise of stock options		1,887			−
Net cash provided by financing activities of continuing operations		158,573			42,449
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities		(527	)		13
Investing activities		−			39,842
Financing activities		(1,145	)		−
Net cash (used in) provided by discontinued operations		(1,672	)		39,855
Net cash retained by entities previously consolidated		−			(3,825	)
Decrease in cash		(20,453	)		(6,130	)
Cash at beginning of period		37,622			30,353
Cash at end of period	$	17,169		$	24,223

Reconciliation of Net Cash Used In Operating Activities of Continuing Operations to Net Cash Provided By Operating Activities of Continuing Operations, As Adjusted

Net cash provided by operating activities of continuing operations as adjusted was $21.6 million for the nine months ended June 30, 2007 as compared to $21.1 million for the nine months ended June 30, 2006.  The following reconciles net cash provided by operating activities of continuing operations as adjusted to net cash used in operating activities of continuing operations (in thousands):

	Nine Months Ended
	June 30,
	2007			2006
Net cash used in operating activities of continuing operations	$	(128,446	)	$	(48,386	)
Adjustments:
Increase in commercial finance investments		137,620			49,444
Changes in operating assets and liabilities		1,734			15,999
Proceeds from sale of a partial partnership interest and other investments		10,647			4,000
Net cash provided by operating activities of continuing operations, as adjusted	$	21,555		$	21,057