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 this reference. |
Resource America, Inc. | ||||
Date: | November 5, 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) |
Ø | Gross real estate assets under management increased 43% to $3.1 billion |
Ø | Gross financial fund management assets under management increased 13% to $15.7 billion |
Ø | Net assets under management increased 25% to $9.2 billion |
September 30, | |||||||
2014 | 2013 | ||||||
Financial fund management | $ | 15.7 | $ | 13.9 | |||
Real estate | 3.1 | 2.1 | |||||
Commercial finance | 0.6 | 0.6 | |||||
$ | 19.4 | $ | 16.6 | ||||
Net assets under management (1) | $ | 9.2 | $ | 7.4 |
(1) | Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements. |
• | Increased total assets to $955.7 million at September 30, 2014, an increase of $573.9 million, or 150%, from $381.8 million at September 30, 2013. |
• | Acquired $128.8 million of total assets, placed $48.0 million of financing on two assets and disposed of one additional asset for $18.1 million during the three months ended September 30, 2014. |
• | In October 2014, the Board of Directors of Opportunity REIT I's general partner authorized a 50% increase to the annual distribution rate to 6% from 4%. |
• | In July 2014, completed a $354.0 million commercial real estate securitization that issued $235.0 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.29%. |
• | During the quarter, raised $13.7 million in equity capital through its DRIP and preferred equity programs. |
• | Originated $144.3 million of commercial real estate whole loans during the three months ended September 30, 2014. |
• | In October 2014, RSO’s Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock. |
• | The Company's real estate operating segment increased its assets under management at September 30, 2014 to $3.1 billion, an increase of $915.0 million, or 43%, from September 30, 2013. |
• | The Company's financial fund management operating segment increased its assets under management at September 30, 2014 to $15.7 billion, an increase of $1.8 billion, or 13%, from September 30, 2013. |
• | In August 2014, the Company modified its $10.0 million of outstanding senior notes to extend the maturity date to March 31, 2018. |
• | The Company repurchased 665,933 of its shares during the third quarter ended September 30, 2014 at an average price of $9.42 per share. Since December 2013, the Company has repurchased 1.0 million shares at an average price of $9.31 per share under its share repurchase program. |
• | In September 2014, the Company’s Board of Directors authorized the Company to repurchase up to an additional 1.5 million shares of its outstanding common stock. |
• | The Company's Board of Directors authorized a 20% increase in the Company’s cash dividend from $0.05 to $0.06 per share on the Company’s common stock paid on October 31, 2014 to holders of record as of the close of business on October 17, 2014. Since July 2013, the Company has increased its dividend by 100%. |
• | RSO's Board of Directors declared a cash dividend of $0.20 per common share for its quarter ended September 30, 2014. |
September 30, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash | $ | 26,428 | $ | 19,853 | |||
Restricted cash | 704 | 571 | |||||
Receivables | 1,051 | 541 | |||||
Loans and receivables from managed entities and related parties, net | 32,637 | 30,923 | |||||
Investments in real estate, net | 17,091 | 17,696 | |||||
Investment securities, at fair value | 9,845 | 7,839 | |||||
Investments in unconsolidated loan manager | 39,048 | 37,821 | |||||
Investments in unconsolidated entities | 13,272 | 14,342 | |||||
Assets of consolidated variable interest entity ("VIE") - RSO: | |||||||
Cash and cash equivalents (including restricted cash) | 246,873 | 325,579 | |||||
Investments, at fair value | 290,205 | 226,764 | |||||
Loans | 1,839,895 | 1,397,458 | |||||
Investments in real estate and unconsolidated entities | 108,395 | 124,193 | |||||
Other assets | 103,645 | 76,467 | |||||
Total assets of consolidated VIE - RSO | 2,589,013 | 2,150,461 | |||||
Property and equipment, net | 5,177 | 5,844 | |||||
Deferred tax assets, net | 22,808 | 27,769 | |||||
Other assets | 6,028 | 4,791 | |||||
Total assets | $ | 2,763,102 | $ | 2,318,451 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Accrued expenses and other liabilities | $ | 19,027 | $ | 22,134 | |||
Payables to managed entities and related parties | 3,695 | 3,110 | |||||
Borrowings | 20,451 | 20,619 | |||||
Liabilities of consolidated VIE - RSO: | |||||||
Borrowings | 1,591,241 | 1,320,015 | |||||
Other liabilities | 54,842 | 55,247 | |||||
Total liabilities of consolidated VIE - RSO | 1,646,083 | 1,375,262 | |||||
Total liabilities | 1,689,256 | 1,421,125 | |||||
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; 34,463,787 and 30,378,339 shares issued (including nonvested restricted stock of 883,830 and 400,194), respectively | 334 | 299 | |||||
Additional paid-in capital | 307,412 | 288,555 | |||||
Accumulated deficit | (24,040 | ) | (26,025 | ) | |||
Treasury stock, at cost; 11,517,053 and 10,434,436 shares, respectively | (117,881 | ) | (107,874 | ) | |||
Accumulated other comprehensive loss | (1,066 | ) | (1,231 | ) | |||
Total stockholders’ equity | 164,759 | 153,724 | |||||
Noncontrolling interests | 254 | 238 | |||||
Noncontrolling interests attributable to consolidated VIE - RSO | 908,833 | 743,364 | |||||
Total equity | 1,073,846 | 897,326 | |||||
$ | 2,763,102 | $ | 2,318,451 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES: | |||||||||||||||
Real estate (includes revenues of $2,643, $4,701, $7,590 and $9,794 related to RSO) | $ | 14,289 | $ | 15,950 | $ | 41,012 | $ | 39,443 | |||||||
Financial fund management (includes revenues of $2,310 $450, $1,350 and $720 related to RSO) | 5,557 | 8,502 | 20,773 | 15,234 | |||||||||||
Commercial finance (includes no revenues related to RSO) | (17 | ) | (30 | ) | (158 | ) | (243 | ) | |||||||
19,829 | 24,422 | 61,627 | 54,434 | ||||||||||||
Revenues from consolidated VIE - RSO | 34,716 | 23,786 | 100,604 | 76,011 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | (4,136 | ) | (5,183 | ) | (10,056 | ) | (10,608 | ) | |||||||
Total revenues | 50,409 | 43,025 | 152,175 | 119,837 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 9,384 | 11,178 | 27,364 | 29,514 | |||||||||||
Financial fund management | 2,812 | 3,547 | 9,980 | 7,769 | |||||||||||
Commercial finance | 125 | 75 | 351 | (99 | ) | ||||||||||
General and administrative | 2,426 | 2,505 | 8,309 | 6,807 | |||||||||||
Provision for credit losses | 559 | 1,808 | 3,342 | 3,793 | |||||||||||
Depreciation and amortization | 453 | 413 | 1,369 | 1,318 | |||||||||||
15,759 | 19,526 | 50,715 | 49,102 | ||||||||||||
Expenses from consolidated VIE - RSO | 18,686 | 15,554 | 51,020 | 43,110 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | (3,502 | ) | (4,861 | ) | (9,374 | ) | (10,178 | ) | |||||||
Total expenses | 30,943 | 30,219 | 92,361 | 82,034 | |||||||||||
OPERATING INCOME | 19,466 | 12,806 | 59,814 | 37,803 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 69 | — | 439 | — | |||||||||||
Other-than-temporary impairment on investments | — | — | — | (214 | ) | ||||||||||
Interest expense | (467 | ) | (530 | ) | (1,447 | ) | (1,525 | ) | |||||||
Other income, net | 80 | 128 | 263 | 400 | |||||||||||
(318 | ) | (402 | ) | (745 | ) | (1,339 | ) | ||||||||
Other income, net, from consolidated VIE - RSO | (1,936 | ) | 16,607 | (758 | ) | 16,607 | |||||||||
Elimination of consolidated VIE other income attributed to operating segments | 11 | 162 | 29 | 224 | |||||||||||
(2,243 | ) | 16,367 | (1,474 | ) | 15,492 | ||||||||||
Income from continuing operations before taxes | 17,223 | 29,173 | 58,340 | 53,295 | |||||||||||
Income tax provision (benefit) | 1,741 | 1,261 | 4,991 | (396 | ) | ||||||||||
Income tax (benefit) provision - RSO | (237 | ) | 722 | (667 | ) | 4,221 | |||||||||
Income from continuing operations | 15,719 | 27,190 | 54,016 | 49,470 | |||||||||||
Loss from discontinued operations, net of tax | — | — | — | (2 | ) | ||||||||||
Net income | 15,719 | 27,190 | 54,016 | 49,468 | |||||||||||
Net loss (income) attributable to noncontrolling interests | 11 | (40 | ) | (33 | ) | (23 | ) | ||||||||
Net income attributable to noncontrolling interests of consolidated VIE - RSO | (14,214 | ) | (23,708 | ) | (48,759 | ) | (44,394 | ) | |||||||
Net income attributable to common shareholders | $ | 1,516 | $ | 3,442 | $ | 5,224 | $ | 5,051 | |||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations | $ | 1,516 | $ | 3,442 | $ | 5,224 | $ | 5,053 | |||||||
Discontinued operations | — | — | — | (2 | ) | ||||||||||
Net income | $ | 1,516 | $ | 3,442 | $ | 5,224 | $ | 5,051 | |||||||
Basic earnings per share: | |||||||||||||||
Continuing operations | $ | 0.07 | $ | 0.17 | $ | 0.25 | $ | 0.25 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income | $ | 0.07 | $ | 0.17 | $ | 0.25 | $ | 0.25 | |||||||
Weighted average shares outstanding | 21,109 | 20,342 | 20,586 | 20,255 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Continuing operations | $ | 0.07 | $ | 0.16 | $ | 0.24 | $ | 0.23 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income | $ | 0.07 | $ | 0.16 | $ | 0.24 | $ | 0.23 | |||||||
Weighted average shares outstanding | 22,301 | 21,872 | 22,124 | 21,931 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 14,289 | $ | — | $ | — | $ | 14,289 | |||||||
Financial fund management | 5,557 | — | — | 5,557 | |||||||||||
Commercial finance | (17 | ) | — | — | (17 | ) | |||||||||
19,829 | — | — | 19,829 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 34,716 | — | 34,716 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (4,136 | ) | (4,136 | ) | |||||||||
Total revenues | 19,829 | 34,716 | (4,136 | ) | 50,409 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 9,384 | — | — | 9,384 | |||||||||||
Financial fund management | 2,812 | — | — | 2,812 | |||||||||||
Commercial finance | 125 | — | — | 125 | |||||||||||
General and administrative | 2,426 | — | — | 2,426 | |||||||||||
Provision for credit losses | 559 | — | — | 559 | |||||||||||
Depreciation and amortization | 453 | — | — | 453 | |||||||||||
15,759 | — | — | 15,759 | ||||||||||||
Expenses of consolidated VIE - RSO | — | 18,449 | 237 | 18,686 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (3,502 | ) | (3,502 | ) | |||||||||
Total expenses | 15,759 | 18,449 | (3,265 | ) | 30,943 | ||||||||||
OPERATING INCOME | 4,070 | 16,267 | (871 | ) | 19,466 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 69 | — | — | 69 | |||||||||||
Interest expense | (467 | ) | — | — | (467 | ) | |||||||||
Other income, net | 652 | — | (572 | ) | 80 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | (1,936 | ) | — | (1,936 | ) | |||||||||
Elimination of consolidated VIE - RSO other expense, net | — | — | 11 | 11 | |||||||||||
254 | (1,936 | ) | (561 | ) | (2,243 | ) | |||||||||
Income from continuing operations before taxes | 4,324 | 14,331 | (1,432 | ) | 17,223 | ||||||||||
Income tax provision | 1,741 | — | (237 | ) | 1,504 | ||||||||||
Net income | 2,583 | 14,331 | (1,195 | ) | 15,719 | ||||||||||
Net loss attributable to noncontrolling interests | 11 | — | — | 11 | |||||||||||
Net income attributable to noncontrolling interests - RSO | — | (7,003 | ) | (7,211 | ) | (14,214 | ) | ||||||||
Net income attributable to common shareholders | $ | 2,594 | $ | 7,328 | $ | (8,406 | ) | $ | 1,516 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 15,950 | $ | — | $ | — | $ | 15,950 | |||||||
Financial fund management | 8,502 | — | — | 8,502 | |||||||||||
Commercial finance | (30 | ) | — | — | (30 | ) | |||||||||
24,422 | — | — | 24,422 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 23,786 | — | 23,786 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (5,183 | ) | (5,183 | ) | |||||||||
Total revenues | 24,422 | 23,786 | (5,183 | ) | 43,025 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 11,178 | — | — | 11,178 | |||||||||||
Financial fund management | 3,547 | — | — | 3,547 | |||||||||||
Commercial finance | 75 | — | — | 75 | |||||||||||
General and administrative | 2,505 | — | — | 2,505 | |||||||||||
Provision for credit losses | 1,808 | — | — | 1,808 | |||||||||||
Depreciation and amortization | 413 | — | — | 413 | |||||||||||
19,526 | — | — | 19,526 | ||||||||||||
Expenses of consolidated VIE - RSO | — | 16,276 | (722 | ) | 15,554 | ||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (4,861 | ) | (4,861 | ) | |||||||||
Total expenses | 19,526 | 16,276 | (5,583 | ) | 30,219 | ||||||||||
OPERATING (LOSS) INCOME | 4,896 | 7,510 | 400 | 12,806 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense | (530 | ) | — | — | (530 | ) | |||||||||
Other income, net | 684 | — | (556 | ) | 128 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 16,607 | — | 16,607 | |||||||||||
Elimination of consolidated VIE - RSO other expense, net | — | — | 162 | 162 | |||||||||||
154 | 16,607 | (394 | ) | 16,367 | |||||||||||
Income from continuing operations before taxes | 5,050 | 24,117 | 6 | 29,173 | |||||||||||
Income tax provision | 1,261 | — | 722 | 1,983 | |||||||||||
Net income | 3,789 | 24,117 | (716 | ) | 27,190 | ||||||||||
Net income attributable to noncontrolling interests | (40 | ) | — | — | (40 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (1,996 | ) | (21,712 | ) | (23,708 | ) | ||||||||
Net income attributable to common shareholders | $ | 3,749 | $ | 22,121 | $ | (22,428 | ) | $ | 3,442 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 41,012 | $ | — | $ | — | $ | 41,012 | |||||||
Financial fund management | 20,773 | — | — | 20,773 | |||||||||||
Commercial finance | (158 | ) | — | — | (158 | ) | |||||||||
61,627 | — | — | 61,627 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 100,604 | — | 100,604 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (10,056 | ) | (10,056 | ) | |||||||||
Total revenues | 61,627 | 100,604 | (10,056 | ) | 152,175 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 27,364 | — | — | 27,364 | |||||||||||
Financial fund management | 9,980 | — | — | 9,980 | |||||||||||
Commercial finance | 351 | — | — | 351 | |||||||||||
General and administrative | 8,309 | — | — | 8,309 | |||||||||||
Provision for credit losses | 3,342 | — | — | 3,342 | |||||||||||
Depreciation and amortization | 1,369 | — | — | 1,369 | |||||||||||
50,715 | — | — | 50,715 | ||||||||||||
Expenses of consolidated VIE - RSO | — | 50,353 | 667 | 51,020 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (9,374 | ) | (9,374 | ) | |||||||||
Total expenses | 50,715 | 50,353 | (8,707 | ) | 92,361 | ||||||||||
OPERATING INCOME | 10,912 | 50,251 | (1,349 | ) | 59,814 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 439 | — | — | 439 | |||||||||||
Interest expense | (1,447 | ) | — | — | (1,447 | ) | |||||||||
Other income, net | 1,979 | — | (1,716 | ) | 263 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | (758 | ) | — | (758 | ) | |||||||||
Elimination of consolidated VIE other income, net | — | — | 29 | 29 | |||||||||||
971 | (758 | ) | (1,687 | ) | (1,474 | ) | |||||||||
Income from continuing operations before taxes | 11,883 | 49,493 | (3,036 | ) | 58,340 | ||||||||||
Income tax provision | 4,991 | — | (667 | ) | 4,324 | ||||||||||
Net income | 6,892 | 49,493 | (2,369 | ) | 54,016 | ||||||||||
Net income attributable to noncontrolling interests | (33 | ) | — | — | (33 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (12,372 | ) | (36,387 | ) | (48,759 | ) | ||||||||
Net income attributable to common shareholders | $ | 6,859 | $ | 37,121 | $ | (38,756 | ) | $ | 5,224 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 39,443 | $ | — | $ | — | $ | 39,443 | |||||||
Financial fund management | 15,234 | — | — | 15,234 | |||||||||||
Commercial finance | (243 | ) | — | — | (243 | ) | |||||||||
54,434 | — | — | 54,434 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 76,011 | — | 76,011 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (10,608 | ) | (10,608 | ) | |||||||||
Total revenues | 54,434 | 76,011 | (10,608 | ) | 119,837 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 29,514 | — | — | 29,514 | |||||||||||
Financial fund management | 7,769 | — | — | 7,769 | |||||||||||
Commercial finance | (99 | ) | — | — | (99 | ) | |||||||||
General and administrative | 6,807 | — | — | 6,807 | |||||||||||
Provision for credit losses | 3,793 | — | — | 3,793 | |||||||||||
Depreciation and amortization | 1,318 | — | — | 1,318 | |||||||||||
49,102 | — | — | 49,102 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 47,331 | (4,221 | ) | 43,110 | ||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (10,178 | ) | (10,178 | ) | |||||||||
Total expenses | 49,102 | 47,331 | (14,399 | ) | 82,034 | ||||||||||
OPERATING INCOME | 5,332 | 28,680 | 3,791 | 37,803 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Other-than-temporary impairment on investments | (214 | ) | — | — | (214 | ) | |||||||||
Interest expense | (1,525 | ) | — | — | (1,525 | ) | |||||||||
Other income, net | 2,069 | — | (1,669 | ) | 400 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 16,607 | — | 16,607 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 224 | 224 | |||||||||||
330 | 16,607 | (1,445 | ) | 15,492 | |||||||||||
Income from continuing operations before taxes | 5,662 | 45,287 | 2,346 | 53,295 | |||||||||||
Income tax benefit | (396 | ) | — | 4,221 | 3,825 | ||||||||||
Income from continuing operations | 6,058 | 45,287 | (1,875 | ) | 49,470 | ||||||||||
Loss from discontinued operations, net of tax | (2 | ) | — | — | (2 | ) | |||||||||
Net income | 6,056 | 45,287 | (1,875 | ) | 49,468 | ||||||||||
Net income attributable to noncontrolling interests | (23 | ) | — | — | (23 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (5,107 | ) | (39,287 | ) | (44,394 | ) | ||||||||
Net income attributable to common shareholders | $ | 6,033 | $ | 40,180 | $ | (41,162 | ) | $ | 5,051 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income attributable to common shareholders - GAAP | $ | 1,516 | $ | 3,442 | $ | 5,224 | $ | 5,051 | ||||||||
Adjustments, net of tax: | ||||||||||||||||
Income, net of eliminations, attributable to consolidation of RSO | 1,078 | 307 | 1,635 | 982 | ||||||||||||
Loss attributable to commercial finance | 382 | 1,171 | 2,388 | 3,883 | (2) | |||||||||||
Deferred tax (benefit) provision | (142 | ) | (613 | ) | 485 | (2,711 | ) | |||||||||
Adjusted net income attributable to common shareholders | $ | 2,834 | $ | 4,307 | $ | 9,732 | $ | 7,205 | ||||||||
Adjusted weighted average diluted shares outstanding | 22,301 | 21,872 | 22,124 | 21,931 | ||||||||||||
Adjusted net income attributable to common shareholders per common per share-diluted | $ | 0.13 | $ | 0.20 | $ | 0.44 | $ | 0.33 |
(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 and deferred tax (benefit) provision. The Company believes that this provides useful information to investors since it allows investors to evaluate the Company's progress, excluding the impact of the RSO consolidation, in both its real estate and financial fund management segments for the three and nine months ended September 30, 2014 and 2013 separately from its commercial finance operations and items related to its deferred tax (benefit) provision that are not in the ordinary course of business. Adjusted net income attributable to common shareholders should not be considered as an alternative to net income 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 attributable to common shareholders in the Company's consolidated financial statements to help analyze how the Company's business is performing. |
(2) | Utilizes a full year continuing income tax rate of 38%. |