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) |
(d) | The exhibit furnished as part of this report is identified in the Exhibit Index immediately following the signature page of this report. Such Exhibit Index is incorporated herein by reference. |
Resource America, Inc. | ||||
Date: | March 10, 2014 | By: | /s/ Thomas C. Elliott | |
Thomas C. Elliott | ||||
Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
Ex 99.1 | Press Release |
CONTACT: | THOMAS C. ELLIOTT | |
CHIEF FINANCIAL OFFICER | ||
RESOURCE AMERICA, INC. | ||
ONE CRESCENT DRIVE, SUITE 203 | ||
PHILADELPHIA, PA 19112 | ||
(215) 546-5005; (215) 640-6357 (fax) |
December 31, | |||||||
2013 | 2012 | ||||||
Financial fund management | $ | 14.2 | $ | 13.0 | |||
Real estate | 2.5 | 1.8 | |||||
Commercial finance | 0.6 | 0.5 | |||||
$ | 17.3 | $ | 15.3 | ||||
Net assets under management (1) | $ | 7.9 | $ | 6.8 |
(1) | Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements. |
• | Raised a record $194.5 million during the three months ended December 31, 2013 and completed fundraising for this fund with a total equity capital raise of $635.0 million. |
• | Increased total assets to $678.6 million at December 31, 2013, an increase of $496.4 million, or 272%, from December 31, 2012, including the acquisition during the three months ended December 31, 2013 of three multifamily assets for $98.3 million located in Alpharetta, GA, San Antonio, TX and Burnsville, MN. |
• | In January 2014, acquired 10 multifamily assets totaling 2,513 units and two office properties that contain 75,518 rentable square feet for $51.2 million. |
• | Originated $97.4 million and $344.3 million of commercial real estate whole loans during the three months and year ended December 31, 2013, respectively. |
• | In December 2013, completed a $307.8 million commercial real estate securitization that issued $260.8 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.86%. |
• | In October 2013, acquired Primary Capital Advisors, a residential mortgage origination company, for $8.4 million. |
• | In October 2013, completed a $115.0 million public offering of its 6.00% convertible senior notes due 2018. |
• | The Company's real estate operating segment increased its assets under management at December 31, 2013 to $2.5 billion, an increase of $709.0 million, or 39%, from December 31, 2012. |
• | Real estate revenues increased 34% and 27%, to $17.7 million and $57.1 million, for the three months and year ended December 31, 2013, respectively, as compared to $13.2 million and $45.1 million for the three months and year ended December 31, 2012, respectively. |
• | In November 2013, the Company repurchased 324,000 of its shares at $9.28 per share. From August 2012 to December 2013, the Company repurchased over 912,000 shares at an average price of $7.73 per share under its share repurchase program. |
• | In December 2013, the Company's Board of Directors authorized the repurchase of up to one million shares of common stock, which replaced the August 2012 repurchase program. |
• | In November 2013, the Company extended the maturity of its $3.5 million revolving credit facility with Republic Bank from December 2014 to December 2016. |
• | The Company's Board of Directors authorized an increase in the Company’s cash dividend from $0.04 to $0.05 per share on the Company’s common stock and payment on January 31, 2014 to holders of record as of the close of business on January 17, 2014. |
• | RSO's Board of Directors declared a cash dividend of $0.20 per common share for its three months ended December 31, 2013. |
December 31, | |||||||
2013 | 2012 | ||||||
ASSETS | |||||||
Cash | $ | 19,853 | $ | 11,899 | |||
Restricted cash | 571 | 638 | |||||
Receivables | 541 | 468 | |||||
Receivables from managed entities and related parties, net | 30,923 | 30,618 | |||||
Investments in real estate, net | 17,696 | 18,041 | |||||
Investment securities, at fair value | 7,839 | 10,576 | |||||
Investments in unconsolidated loan manager | 37,821 | 37,221 | |||||
Investments in unconsolidated entities | 14,342 | 13,156 | |||||
Assets of consolidated variable interest entity ("VIE") - RSO | |||||||
Cash and cash equivalents (including restricted cash) | 325,579 | 179,390 | |||||
Investments, at fair value | 221,395 | 256,433 | |||||
Loans | 1,397,458 | 1,849,428 | |||||
Investments in real estate and consolidated entities | 129,562 | 120,706 | |||||
Other assets | 76,467 | 70,600 | |||||
Total assets of consolidated VIE - RSO | 2,150,461 | 2,476,557 | |||||
Property and equipment, net | 5,844 | 2,590 | |||||
Deferred tax assets, net | 27,769 | 28,274 | |||||
Other assets | 4,791 | 6,726 | |||||
Total assets | $ | 2,318,451 | $ | 2,636,764 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Accrued expenses and other liabilities | $ | 22,134 | $ | 21,864 | |||
Payables to managed entities and related parties | 3,110 | 3,536 | |||||
Borrowings | 20,619 | 20,735 | |||||
Liabilities of consolidated VIE - RSO | |||||||
Borrowings | 1,320,015 | 1,785,600 | |||||
Other liabilities | 55,247 | 71,239 | |||||
Total liabilities of consolidated VIE - RSO | 1,375,262 | 1,856,839 | |||||
Total liabilities | 1,421,125 | 1,902,974 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none outstanding | — | — | |||||
Common stock, $.01 par value, 49,000,000 shares authorized; 30,378,339 and 30,069,822 shares issued (including nonvested restricted stock of 400,194 and 604,353), respectively | 299 | 295 | |||||
Additional paid-in capital | 288,555 | 286,048 | |||||
Accumulated deficit | (26,025 | ) | (29,486 | ) | |||
Treasury stock, at cost; 10,434,436 and 9,914,090 shares, respectively | (107,874 | ) | (103,472 | ) | |||
Accumulated other comprehensive loss | (1,231 | ) | (2,197 | ) | |||
Total stockholders’ equity | 153,724 | 151,188 | |||||
Noncontrolling interests | 238 | 279 | |||||
Noncontrolling interests attributable to RSO | 743,364 | 582,323 | |||||
Total equity | 897,326 | 733,790 | |||||
$ | 2,318,451 | $ | 2,636,764 |
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES: | |||||||||||||||
Real estate (includes revenues of $2,806, $4,787, $12,600 and $13,956 related to RSO) | $ | 17,700 | $ | 13,154 | $ | 57,143 | $ | 45,083 | |||||||
Financial fund management (includes revenues of $400, $(8), $1,120 and $4,894 related to RSO) | 4,539 | 2,675 | 19,773 | 18,053 | |||||||||||
Commercial finance (no revenues related to RSO) | (98 | ) | (124 | ) | (341 | ) | (1,659 | ) | |||||||
22,141 | 15,705 | 76,575 | 61,477 | ||||||||||||
Revenues from consolidated VIE - RSO | 14,996 | 33,041 | 91,007 | 123,698 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | (3,226 | ) | (4,811 | ) | (13,834 | ) | (17,544 | ) | |||||||
Total revenues | 33,911 | 43,935 | 153,748 | 167,631 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 11,098 | 7,998 | 40,612 | 30,475 | |||||||||||
Financial fund management | 2,386 | 1,017 | 10,155 | 12,299 | |||||||||||
Commercial finance | 155 | (49 | ) | 56 | 402 | ||||||||||
Restructuring expenses | — | — | — | 365 | |||||||||||
General and administrative | 3,461 | 2,228 | 10,268 | 9,792 | |||||||||||
Impairment charges | — | — | — | 2,280 | |||||||||||
Provision for credit losses | 472 | 5,152 | 4,265 | 20,148 | |||||||||||
Depreciation and amortization | 618 | 492 | 1,936 | 2,084 | |||||||||||
18,190 | 16,838 | 67,292 | 77,845 | ||||||||||||
Expenses from consolidated VIE - RSO | 19,492 | 24,098 | 62,602 | 63,850 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | (3,037 | ) | (4,762 | ) | (13,215 | ) | (17,351 | ) | |||||||
Total expenses | 34,645 | 36,174 | 116,679 | 124,344 | |||||||||||
OPERATING (LOSS) INCOME | (734 | ) | 7,761 | 37,069 | 43,287 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on deconsolidation and sale of subsidiary | — | — | — | 54,542 | |||||||||||
Other-than-temporary impairment on investments | — | — | (214 | ) | (74 | ) | |||||||||
Interest expense | (511 | ) | (522 | ) | (2,036 | ) | (2,289 | ) | |||||||
Other income, net | 175 | 106 | 575 | 112 | |||||||||||
Other income, net, from consolidated VIE - RSO | 400 | 13,733 | 17,007 | 19,197 | |||||||||||
Elimination of consolidated VIE other income attributed to operating segments | 20 | 32 | 244 | 133 | |||||||||||
84 | 13,349 | 15,576 | 71,621 | ||||||||||||
(Loss) income from continuing operations before taxes | (650 | ) | 21,110 | 52,645 | 114,908 | ||||||||||
Income tax provision (benefit) | 2,053 | (241 | ) | 1,657 | 13,117 | ||||||||||
Income tax (benefit) provision - RSO | (5,262 | ) | 7,624 | (1,041 | ) | 14,602 | |||||||||
Income from continuing operations | 2,559 | 13,727 | 52,029 | 87,189 | |||||||||||
Loss from discontinued operations, net of tax | — | (6 | ) | (2 | ) | (44 | ) | ||||||||
Net income | 2,559 | 13,721 | 52,027 | 87,145 | |||||||||||
Net loss (income) attributable to noncontrolling interests | 3 | (587 | ) | (20 | ) | (557 | ) | ||||||||
Net income attributable to noncontrolling interests of consolidated VIE - RSO | (1,187 | ) | (14,668 | ) | (45,581 | ) | (62,560 | ) | |||||||
Net income (loss) attributable to common shareholders | $ | 1,375 | $ | (1,534 | ) | $ | 6,426 | $ | 24,028 | ||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income (loss) from continuing operations | $ | 1,375 | $ | (1,528 | ) | $ | 6,428 | $ | 24,072 | ||||||
Discontinued operations | — | (6 | ) | (2 | ) | (44 | ) | ||||||||
Net income (loss) | $ | 1,375 | $ | (1,534 | ) | $ | 6,426 | $ | 24,028 | ||||||
RESOURCE AMERICA, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued) | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.07 | $ | (0.08 | ) | $ | 0.32 | $ | 1.21 | ||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income (loss) | $ | 0.07 | $ | (0.08 | ) | $ | 0.32 | $ | 1.21 | ||||||
Weighted average shares outstanding | 20,104 | 20,077 | 20,217 | 19,919 | |||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.06 | $ | (0.08 | ) | $ | 0.29 | $ | 1.14 | ||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income (loss) | $ | 0.06 | $ | (0.08 | ) | $ | 0.29 | $ | 1.14 | ||||||
Weighted average shares outstanding | 21,828 | 20,077 | 21,905 | 20,994 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 17,700 | $ | — | $ | — | $ | 17,700 | |||||||
Financial fund management | 4,539 | — | — | 4,539 | |||||||||||
Commercial finance | (98 | ) | — | — | (98 | ) | |||||||||
22,141 | — | — | 22,141 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 14,996 | — | 14,996 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (3,226 | ) | (3,226 | ) | |||||||||
Total revenues | 22,141 | 14,996 | (3,226 | ) | 33,911 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 11,098 | — | — | 11,098 | |||||||||||
Financial fund management | 2,386 | — | — | 2,386 | |||||||||||
Commercial finance | 155 | — | — | 155 | |||||||||||
General and administrative | 3,461 | — | — | 3,461 | |||||||||||
Provision for credit losses | 472 | — | — | 472 | |||||||||||
Depreciation and amortization | 618 | — | — | 618 | |||||||||||
18,190 | — | — | 18,190 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 14,230 | 5,262 | 19,492 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (3,037 | ) | (3,037 | ) | |||||||||
Total expenses | 18,190 | 14,230 | 2,225 | 34,645 | |||||||||||
OPERATING INCOME (LOSS) | 3,951 | 766 | (5,451 | ) | (734 | ) | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense | (511 | ) | — | — | (511 | ) | |||||||||
Other income, net | 747 | — | (572 | ) | 175 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 400 | — | 400 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 20 | 20 | |||||||||||
236 | 400 | (552 | ) | 84 | |||||||||||
Income (loss) from continuing operations before taxes | 4,187 | 1,166 | (6,003 | ) | (650 | ) | |||||||||
Income tax provision (benefit) | 2,053 | — | (5,262 | ) | (3,209 | ) | |||||||||
Net income (loss) | 2,134 | 1,166 | (741 | ) | 2,559 | ||||||||||
Net loss attributable to noncontrolling interests | 3 | — | — | 3 | |||||||||||
Net income attributable to noncontrolling interests - RSO | — | (2,114 | ) | 927 | (1,187 | ) | |||||||||
Net income attributable to common shareholders | $ | 2,137 | $ | (948 | ) | $ | 186 | $ | 1,375 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 13,154 | $ | — | $ | — | $ | 13,154 | |||||||
Financial fund management | 2,675 | — | — | 2,675 | |||||||||||
Commercial finance | (124 | ) | — | — | (124 | ) | |||||||||
15,705 | — | — | 15,705 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 33,041 | — | 33,041 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (4,811 | ) | (4,811 | ) | |||||||||
Total revenues | 15,705 | 33,041 | (4,811 | ) | 43,935 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 7,998 | — | — | 7,998 | |||||||||||
Financial fund management | 1,017 | — | — | 1,017 | |||||||||||
Commercial finance | (49 | ) | — | — | (49 | ) | |||||||||
General and administrative | 2,228 | — | — | 2,228 | |||||||||||
Provision for credit losses | 5,152 | — | — | 5,152 | |||||||||||
Depreciation and amortization | 492 | — | — | 492 | |||||||||||
16,838 | — | — | 16,838 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 31,722 | (7,624 | ) | 24,098 | ||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (4,762 | ) | (4,762 | ) | |||||||||
Total expenses | 16,838 | 31,722 | (12,386 | ) | 36,174 | ||||||||||
OPERATING (LOSS) INCOME | (1,133 | ) | 1,319 | 7,575 | 7,761 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense | (522 | ) | — | — | (522 | ) | |||||||||
Other income, net | 640 | — | (534 | ) | 106 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 13,733 | — | 13,733 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 32 | 32 | |||||||||||
118 | 13,733 | (502 | ) | 13,349 | |||||||||||
(Loss) income from continuing operations before taxes | (1,015 | ) | 15,052 | 7,073 | 21,110 | ||||||||||
Income tax (benefit) provision | (241 | ) | — | 7,624 | 7,383 | ||||||||||
(Loss) income from continuing operations | (774 | ) | 15,052 | (551 | ) | 13,727 | |||||||||
Loss from discontinued operations, net of tax | (6 | ) | — | — | (6 | ) | |||||||||
Net (loss) income | (780 | ) | 15,052 | (551 | ) | 13,721 | |||||||||
Net income attributable to noncontrolling interests | (587 | ) | — | — | (587 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (911 | ) | (13,757 | ) | (14,668 | ) | ||||||||
Net (loss) income attributable to common shareholders | $ | (1,367 | ) | $ | 14,141 | $ | (14,308 | ) | $ | (1,534 | ) | ||||
Amounts attributable to common shareholders: | |||||||||||||||
(Loss) income from continuing operations | $ | (1,361 | ) | $ | 14,141 | $ | (14,308 | ) | $ | (1,528 | ) | ||||
Discontinued operations | (6 | ) | — | — | (6 | ) | |||||||||
Net (loss) income | $ | (1,367 | ) | $ | 14,141 | $ | (14,308 | ) | $ | (1,534 | ) |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 57,143 | $ | — | $ | — | $ | 57,143 | |||||||
Financial fund management | 19,773 | — | — | 19,773 | |||||||||||
Commercial finance | (341 | ) | — | — | (341 | ) | |||||||||
76,575 | — | — | 76,575 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 91,007 | — | 91,007 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (13,834 | ) | (13,834 | ) | |||||||||
Total revenues | 76,575 | 91,007 | (13,834 | ) | 153,748 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 40,612 | — | — | 40,612 | |||||||||||
Financial fund management | 10,155 | — | — | 10,155 | |||||||||||
Commercial finance | 56 | — | — | 56 | |||||||||||
General and administrative | 10,268 | — | — | 10,268 | |||||||||||
Provision for credit losses | 4,265 | — | — | 4,265 | |||||||||||
Depreciation and amortization | 1,936 | — | — | 1,936 | |||||||||||
67,292 | — | — | 67,292 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 61,561 | 1,041 | 62,602 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (13,215 | ) | (13,215 | ) | |||||||||
Total expenses | 67,292 | 61,561 | (12,174 | ) | 116,679 | ||||||||||
OPERATING INCOME | 9,283 | 29,446 | (1,660 | ) | 37,069 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Other-than-temporary impairment on investments | (214 | ) | — | — | (214 | ) | |||||||||
Interest expense | (2,036 | ) | — | — | (2,036 | ) | |||||||||
Other income, net | 2,816 | — | (2,241 | ) | 575 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 17,007 | — | 17,007 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 244 | 244 | |||||||||||
566 | 17,007 | (1,997 | ) | 15,576 | |||||||||||
Income from continuing operations before taxes | 9,849 | 46,453 | (3,657 | ) | 52,645 | ||||||||||
Income tax provision | 1,657 | — | (1,041 | ) | 616 | ||||||||||
Income from continuing operations | 8,192 | 46,453 | (2,616 | ) | 52,029 | ||||||||||
Loss from discontinued operations, net of tax | (2 | ) | — | — | (2 | ) | |||||||||
Net income | 8,190 | 46,453 | (2,616 | ) | 52,027 | ||||||||||
Net income attributable to noncontrolling interests | (20 | ) | — | — | (20 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (7,221 | ) | (38,360 | ) | (45,581 | ) | ||||||||
Net income attributable to common shareholders | $ | 8,170 | $ | 39,232 | $ | (40,976 | ) | $ | 6,426 | ||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations | $ | 8,172 | $ | 39,232 | $ | (40,976 | ) | $ | 6,428 | ||||||
Discontinued operations | (2 | ) | — | — | (2 | ) | |||||||||
Net income | $ | 8,170 | $ | 39,232 | $ | (40,976 | ) | $ | 6,426 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 45,083 | $ | — | $ | — | $ | 45,083 | |||||||
Financial fund management | 18,053 | — | — | 18,053 | |||||||||||
Commercial finance | (1,659 | ) | — | — | (1,659 | ) | |||||||||
61,477 | — | — | 61,477 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 123,698 | — | 123,698 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (17,544 | ) | (17,544 | ) | |||||||||
Total revenues | 61,477 | 123,698 | (17,544 | ) | 167,631 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 30,475 | — | — | 30,475 | |||||||||||
Financial fund management | 12,299 | — | — | 12,299 | |||||||||||
Commercial finance | 402 | — | — | 402 | |||||||||||
Restructuring expenses | 365 | — | — | 365 | |||||||||||
General and administrative | 9,792 | — | — | 9,792 | |||||||||||
Impairment charges | 2,280 | — | — | 2,280 | |||||||||||
Provision for credit losses | 20,148 | — | — | 20,148 | |||||||||||
Depreciation and amortization | 2,084 | — | — | 2,084 | |||||||||||
77,845 | — | — | 77,845 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 78,452 | (14,602 | ) | 63,850 | ||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (17,351 | ) | (17,351 | ) | |||||||||
Total expenses | 77,845 | 78,452 | (31,953 | ) | 124,344 | ||||||||||
OPERATING (LOSS) INCOME | (16,368 | ) | 45,246 | 14,409 | 43,287 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on deconsolidation and sale of subsidiary | 54,542 | — | — | 54,542 | |||||||||||
Other-than-temporary impairment on investments | (74 | ) | — | — | (74 | ) | |||||||||
Interest expense | (2,289 | ) | — | — | (2,289 | ) | |||||||||
Other income, net | 2,189 | — | (2,077 | ) | 112 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 19,197 | — | 19,197 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 133 | 133 | |||||||||||
54,368 | 19,197 | (1,944 | ) | 71,621 | |||||||||||
Income from continuing operations before taxes | 38,000 | 64,443 | 12,465 | 114,908 | |||||||||||
Income tax provision | 13,117 | — | 14,602 | 27,719 | |||||||||||
Income from continuing operations | 24,883 | 64,443 | (2,137 | ) | 87,189 | ||||||||||
Loss from discontinued operations, net of tax | (44 | ) | — | — | (44 | ) | |||||||||
Net income | 24,839 | 64,443 | (2,137 | ) | 87,145 | ||||||||||
Net income attributable to noncontrolling interests | (557 | ) | — | — | (557 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (1,244 | ) | (61,316 | ) | (62,560 | ) | ||||||||
Net income attributable to common shareholders | $ | 24,282 | $ | 63,199 | $ | (63,453 | ) | $ | 24,028 | ||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations | $ | 24,326 | $ | 63,199 | $ | (63,453 | ) | $ | 24,072 | ||||||
Discontinued operations | (44 | ) | — | — | (44 | ) | |||||||||
Net income | $ | 24,282 | $ | 63,199 | $ | (63,453 | ) | $ | 24,028 |
Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) attributable to common shareholders - GAAP | $ | 1,375 | $ | (1,534 | ) | $ | 6,426 | $ | 24,028 | |||||||
Adjustments, net of tax: | ||||||||||||||||
Loss, net of eliminations, attributable to consolidation of RSO | 762 | 167 | 1,744 | 254 | ||||||||||||
Loss attributable to commercial finance | 535 | 2,406 | 4,545 | 14,269 | ||||||||||||
Gain on sale of subsidiary | — | — | — | (36,394 | ) | |||||||||||
Deferred tax provision (benefit) | 887 | 279 | (805 | ) | (1,822 | ) | ||||||||||
Adjusted net income attributable to common shareholders | $ | 3,559 | $ | 1,318 | $ | 11,910 | $ | 335 | ||||||||
Adjusted weighted average diluted shares outstanding (2) | 21,828 | 21,199 | 21,905 | 20,994 | ||||||||||||
Adjusted net income attributable to common shareholders per common per share-diluted | $ | 0.16 | $ | 0.06 | $ | 0.54 | $ | 0.02 |
(1) | Adjusted net income attributable to common shareholders presents the Company's operations prior to the consolidation of RSO and without the effect of its commercial finance operations, gain on the sale of subsidiary and deferred tax provision (benefit). The Company believes that this provides useful information to investors since it allows investors to evaluate the Company's progress in both its real estate and financial fund management segments for the three months and year ended December 31, 2013 and 2012 separately from its commercial finance operations, gain realized on the sale of a subsidiary and deferred tax provision (benefit). Adjusted net income attributable to common shareholders should not be considered as an alternative to net income (loss) attributable to common shareholders (computed in accordance with GAAP). Instead, adjusted net income attributable to common shareholders should be reviewed in connection with net income (loss) attributable to common shareholders in the Company's consolidated financial statements, to help analyze how the Company's business is performing. |
(2) | Dilutive shares used in the calculation of adjusted net income attributable to common shareholders per common share-diluted included an additional 1.1 million shares for the three months ended December 31, 2012, which were anti-dilutive for the period and, as such, were not used in the calculation of GAAP net loss attributable to common shareholders per common share-diluted. |