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 4, 2015 | 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 35% to $3.4 billion |
Ø | Gross financial fund management assets under management increased 14% to $16.1 billion |
Ø | Net assets under management increased 22% to $9.7 billion |
December 31, | |||||||
2014 | 2013 | ||||||
Financial fund management | $ | 16.1 | $ | 14.2 | |||
Real estate | 3.4 | 2.5 | |||||
Commercial finance | 0.7 | 0.6 | |||||
$ | 20.2 | $ | 17.3 | ||||
Net assets under management (1) | $ | 9.7 | $ | 7.9 |
(1) | Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements. |
• | Increased total assets to $978.4 million at December 31, 2014, an increase of $299.8 million, or 44%, from $678.6 million at December 31, 2013. |
• | Acquired $19.9 million and $427.0 million of multifamily assets and placed financing of $57.3 million and $347.8 million during the three months and year ended December 31, 2014. In addition, disposed of $30.1 million of multifamily assets during the year ended December 31, 2014. |
• | In October 2014, the Board of Directors of Opportunity REIT I authorized a 50% increase to the annual distribution rate to 6% from 4%. |
• | Raised $47.2 million as of December 31, 2014 and $90.4 million through March 3, 2015. |
• | Acquired $54.3 million and $67.0 million of multifamily assets and placed financing of $31.1 million and $38.5 during the three months and year ended December 31, 2014. |
• | Originated $302.3 million and $777.3 million in new commercial real estate loans during the three months and year ended December 31, 2014. |
• | During the three months and year ended December 31, 2014, raised $25.5 million and $202.7 million in equity capital through its DRIP and preferred equity programs. |
• | In October 2014, RSO’s Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock. |
• | In January 2015, completed a $100.0 million public offering of its 8.00% convertible senior notes due 2020. |
• | In February 2015, completed a $346.2 million commercial real estate securitization that issued $282.1 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.90%. |
• | The Company's real estate operating segment increased its gross assets under management at December 31, 2014 to $3.4 billion, an increase of $865.0 million, or 35%, from December 31, 2013. |
• | The Company's financial fund management operating segment increased its gross assets under management at December 31, 2014 to $16.1 billion, an increase of $1.9 billion, or 14%, from December 31, 2013. |
• | Financial fund management revenues increased 68% and 44%, to $7.6 million and $28.4 million, for the three months and year ended December 31, 2014, respectively, as compared to $4.5 million and $19.8 million for the three months and year ended December 31, 2013, respectively. |
• | 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 repurchased 239,790 of its shares during the fourth quarter ended December 31, 2014 at an average price of $9.31 per share. |
• | The Company's Board of Directors authorized a cash dividend of $0.06 per share on the Company’s common stock which was paid on January 30, 2015 to holders of record as of the close of business on January 16, 2015. |
• | RSO's Board of Directors declared a cash dividend of $0.20 per common share for its three months ended December 31, 2014. |
December 31, | |||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Cash | $ | 28,031 | $ | 19,853 | |||
Restricted cash | 725 | 571 | |||||
Receivables | 636 | 541 | |||||
Loans and receivables from managed entities and related parties, net | 30,303 | 30,923 | |||||
Investments in real estate, net | 17,097 | 17,696 | |||||
Investment securities, at fair value | 9,540 | 7,839 | |||||
Investments in unconsolidated loan manager | 39,655 | 37,821 | |||||
Investments in unconsolidated entities | 13,089 | 14,342 | |||||
Assets of consolidated variable interest entity ("VIE") - RSO | |||||||
Cash and cash equivalents (including restricted cash) | 202,043 | 325,579 | |||||
Investments, at fair value | 296,506 | 221,395 | |||||
Loans | 2,038,435 | 1,397,458 | |||||
Investments in real estate and unconsolidated entities | 60,007 | 129,562 | |||||
Other assets | 131,481 | 76,467 | |||||
Total assets of consolidated VIE - RSO | 2,728,472 | 2,150,461 | |||||
Property and equipment, net | 5,063 | 5,844 | |||||
Deferred tax assets, net | 23,304 | 27,769 | |||||
Other assets | 5,416 | 4,791 | |||||
Total assets | $ | 2,901,331 | $ | 2,318,451 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Accrued expenses and other liabilities | $ | 22,279 | $ | 22,134 | |||
Payables to managed entities and related parties | 3,504 | 3,110 | |||||
Borrowings | 20,412 | 20,619 | |||||
Liabilities of consolidated VIE - RSO | |||||||
Borrowings | 1,717,132 | 1,320,015 | |||||
Other liabilities | 57,561 | 55,247 | |||||
Total liabilities of consolidated VIE - RSO | 1,774,693 | 1,375,262 | |||||
Total liabilities | 1,820,888 | 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; 34,489,568 and 30,378,339 shares issued (including nonvested restricted stock of 833,082 and 400,194), respectively | 335 | 299 | |||||
Additional paid-in capital | 308,134 | 288,555 | |||||
Accumulated deficit | (23,663 | ) | (26,025 | ) | |||
Treasury stock, at cost; 11,764,417 and 10,434,436 shares, respectively | (120,182 | ) | (107,874 | ) | |||
Accumulated other comprehensive loss | (1,030 | ) | (1,231 | ) | |||
Total stockholders’ equity | 163,594 | 153,724 | |||||
Noncontrolling interests | 306 | 238 | |||||
Noncontrolling interests attributable to RSO | 916,543 | 743,364 | |||||
Total equity | 1,080,443 | 897,326 | |||||
$ | 2,901,331 | $ | 2,318,451 |
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES: | |||||||||||||||
Real estate (includes revenues of $2,721, $2,806, $10,349 and$12,600 related to RSO) | $ | 13,849 | $ | 17,700 | $ | 54,861 | $ | 57,143 | |||||||
Financial fund management (includes revenues of $498, $400, $2,983 and $1,120 related to RSO) | 7,627 | 4,539 | 28,400 | 19,773 | |||||||||||
Commercial finance (no revenues related to RSO) | (6 | ) | (98 | ) | (164 | ) | (341 | ) | |||||||
21,470 | 22,141 | 83,097 | 76,575 | ||||||||||||
Revenues from consolidated VIE - RSO | 24,563 | 4,232 | 99,446 | 82,983 | |||||||||||
Elimination of consolidated VIE - RSO revenues attributed to operating segments | (3,208 | ) | (3,226 | ) | (13,264 | ) | (13,834 | ) | |||||||
Total revenues | 42,825 | 23,147 | 169,279 | 145,724 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 10,047 | 11,098 | 37,411 | 40,612 | |||||||||||
Financial fund management | 4,844 | 2,386 | 14,824 | 10,155 | |||||||||||
Commercial finance | 396 | 155 | 979 | 56 | |||||||||||
General and administrative | 3,041 | 3,461 | 11,118 | 10,268 | |||||||||||
Provision for credit losses | (284 | ) | 472 | 3,058 | 4,265 | ||||||||||
Depreciation and amortization | 450 | 618 | 1,819 | 1,936 | |||||||||||
18,494 | 18,190 | 69,209 | 67,292 | ||||||||||||
Expenses from consolidated VIE - RSO | 21,411 | 17,889 | 64,995 | 60,999 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | (3,227 | ) | (3,037 | ) | (12,601 | ) | (13,215 | ) | |||||||
Total expenses | 36,678 | 33,042 | 121,603 | 115,076 | |||||||||||
OPERATING INCOME (LOSS) | 6,147 | (9,895 | ) | 47,676 | 30,648 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 6 | — | 445 | — | |||||||||||
Other-than-temporary impairment on investments | — | — | — | (214 | ) | ||||||||||
Interest expense | (458 | ) | (511 | ) | (1,905 | ) | (2,036 | ) | |||||||
Other income, net | (20 | ) | 175 | 243 | 575 | ||||||||||
Other income, net, from consolidated VIE - RSO | 7,978 | 9,561 | 25,505 | 23,428 | |||||||||||
Elimination of consolidated VIE other income attributed to operating segments | 11 | 20 | 51 | 244 | |||||||||||
7,517 | 9,245 | 24,339 | 21,997 | ||||||||||||
Income (loss) from continuing operations before taxes | 13,664 | (650 | ) | 72,015 | 52,645 | ||||||||||
Income tax provision | 862 | 2,053 | 5,853 | 1,657 | |||||||||||
Income tax benefit - RSO | (1,545 | ) | (5,262 | ) | (2,212 | ) | (1,041 | ) | |||||||
Income from continuing operations | 14,347 | 2,559 | 68,374 | 52,029 | |||||||||||
Loss from discontinued operations, net of tax | — | — | — | (2 | ) | ||||||||||
Net income | 14,347 | 2,559 | 68,374 | 52,027 | |||||||||||
Net (income) loss attributable to noncontrolling interest | (56 | ) | 3 | (89 | ) | (20 | ) | ||||||||
Net income attributable to noncontrolling interests of consolidated VIE - RSO | (12,547 | ) | (1,187 | ) | (61,317 | ) | (45,581 | ) | |||||||
Net income attributable to common shareholders | $ | 1,744 | $ | 1,375 | $ | 6,968 | $ | 6,426 | |||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations | $ | 1,744 | $ | 1,375 | $ | 6,968 | $ | 6,428 | |||||||
Discontinued operations | — | — | — | (2 | ) | ||||||||||
Net income | $ | 1,744 | $ | 1,375 | $ | 6,968 | $ | 6,426 | |||||||
RESOURCE AMERICA, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued) | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Basic earnings per share: | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.07 | $ | 0.33 | $ | 0.32 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income | $ | 0.08 | $ | 0.07 | $ | 0.33 | $ | 0.32 | |||||||
Weighted average shares outstanding | 22,817 | 20,104 | 21,148 | 20,217 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.06 | $ | 0.31 | $ | 0.29 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net income | $ | 0.08 | $ | 0.06 | $ | 0.31 | $ | 0.29 | |||||||
Weighted average shares outstanding | 23,094 | 21,828 | 22,371 | 21,905 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 13,849 | $ | — | $ | — | $ | 13,849 | |||||||
Financial fund management | 7,627 | — | — | 7,627 | |||||||||||
Commercial finance | (6 | ) | — | — | (6 | ) | |||||||||
21,470 | — | — | 21,470 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 24,563 | — | 24,563 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (3,208 | ) | (3,208 | ) | |||||||||
Total revenues | 21,470 | 24,563 | (3,208 | ) | 42,825 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 10,047 | — | — | 10,047 | |||||||||||
Financial fund management | 4,844 | — | — | 4,844 | |||||||||||
Commercial finance | 396 | — | — | 396 | |||||||||||
General and administrative | 3,041 | — | — | 3,041 | |||||||||||
Provision for credit losses | (284 | ) | — | — | (284 | ) | |||||||||
Depreciation and amortization | 450 | — | — | 450 | |||||||||||
18,494 | — | — | 18,494 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 19,866 | 1,545 | 21,411 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (3,227 | ) | (3,227 | ) | |||||||||
Total expenses | 18,494 | 19,866 | (1,682 | ) | 36,678 | ||||||||||
OPERATING INCOME | 2,976 | 4,697 | (1,526 | ) | 6,147 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 6 | — | — | 6 | |||||||||||
Interest expense | (458 | ) | — | — | (458 | ) | |||||||||
Other income, net | 553 | — | (573 | ) | (20 | ) | |||||||||
Other income, net, from consolidated VIE - RSO | — | 7,978 | — | 7,978 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 11 | 11 | |||||||||||
101 | 7,978 | (562 | ) | 7,517 | |||||||||||
Income before taxes | 3,077 | 12,675 | (2,088 | ) | 13,664 | ||||||||||
Income tax provision (benefit) | 862 | — | (1,545 | ) | (683 | ) | |||||||||
Net income | 2,215 | 12,675 | (543 | ) | 14,347 | ||||||||||
Net income attributable to noncontrolling interests | (56 | ) | — | — | (56 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (5,769 | ) | (6,778 | ) | (12,547 | ) | ||||||||
Net income attributable to common shareholders | $ | 2,159 | $ | 6,906 | $ | (7,321 | ) | $ | 1,744 |
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 | — | 4,232 | — | 4,232 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (3,226 | ) | (3,226 | ) | |||||||||
Total revenues | 22,141 | 4,232 | (3,226 | ) | 23,147 | ||||||||||
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 | — | 12,627 | 5,262 | 17,889 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (3,037 | ) | (3,037 | ) | |||||||||
Total expenses | 18,190 | 12,627 | 2,225 | 33,042 | |||||||||||
OPERATING INCOME (LOSS) | 3,951 | (8,395 | ) | (5,451 | ) | (9,895 | ) | ||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense | (511 | ) | — | — | (511 | ) | |||||||||
Other income, net | 747 | — | (572 | ) | 175 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 9,561 | — | 9,561 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 20 | 20 | |||||||||||
236 | 9,561 | (552 | ) | 9,245 | |||||||||||
Income (loss) before taxes | 4,187 | 1,166 | (6,003 | ) | (650 | ) | |||||||||
Income tax provision (benefit) | 2,053 | — | (5,262 | ) | (3,209 | ) | |||||||||
Net income | 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 (loss) attributable to common shareholders | $ | 2,137 | $ | (948 | ) | $ | 186 | $ | 1,375 |
RAI | RSO | Eliminations | Consolidated | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 54,861 | $ | — | $ | — | $ | 54,861 | |||||||
Financial fund management | 28,400 | — | — | 28,400 | |||||||||||
Commercial finance | (164 | ) | — | — | (164 | ) | |||||||||
83,097 | — | — | 83,097 | ||||||||||||
Revenues from consolidated VIE - RSO | — | 99,446 | — | 99,446 | |||||||||||
Elimination of consolidated VIE - RSO revenues attributed to operating segments | — | — | (13,264 | ) | (13,264 | ) | |||||||||
Total revenues | 83,097 | 99,446 | (13,264 | ) | 169,279 | ||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 37,411 | — | — | 37,411 | |||||||||||
Financial fund management | 14,824 | — | — | 14,824 | |||||||||||
Commercial finance | 979 | — | — | 979 | |||||||||||
General and administrative | 11,118 | — | — | 11,118 | |||||||||||
Provision for credit losses | 3,058 | — | — | 3,058 | |||||||||||
Depreciation and amortization | 1,819 | — | — | 1,819 | |||||||||||
69,209 | — | — | 69,209 | ||||||||||||
Expenses from consolidated VIE - RSO | — | 62,783 | 2,212 | 64,995 | |||||||||||
Elimination of consolidated VIE - RSO expenses attributed to operating segments | — | — | (12,601 | ) | (12,601 | ) | |||||||||
Total expenses | 69,209 | 62,783 | (10,389 | ) | 121,603 | ||||||||||
OPERATING INCOME | 13,888 | 36,663 | (2,875 | ) | 47,676 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain on sale of investment securities, net | 445 | — | — | 445 | |||||||||||
Interest expense | (1,905 | ) | — | — | (1,905 | ) | |||||||||
Other income, net | 2,532 | — | (2,289 | ) | 243 | ||||||||||
Other income, net, from consolidated VIE - RSO | — | 25,505 | — | 25,505 | |||||||||||
Elimination of consolidated VIE - RSO other income, net | — | — | 51 | 51 | |||||||||||
1,072 | 25,505 | (2,238 | ) | 24,339 | |||||||||||
Income from operations before taxes | 14,960 | 62,168 | (5,113 | ) | 72,015 | ||||||||||
Income tax provision | 5,853 | — | (2,212 | ) | 3,641 | ||||||||||
Net income | 9,107 | 62,168 | (2,901 | ) | 68,374 | ||||||||||
Net income attributable to noncontrolling interests | (89 | ) | — | — | (89 | ) | |||||||||
Net income attributable to noncontrolling interests - RSO | — | (18,141 | ) | (43,176 | ) | (61,317 | ) | ||||||||
Net income attributable to common shareholders | $ | 9,018 | $ | 44,027 | $ | (46,077 | ) | $ | 6,968 | ||||||
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 | — | 82,983 | — | 82,983 | |||||||||||
Elimination of consolidated VIE revenues attributed to operating segments | — | — | (13,834 | ) | (13,834 | ) | |||||||||
Total revenues | 76,575 | 82,983 | (13,834 | ) | 145,724 | ||||||||||
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 | — | 59,958 | 1,041 | 60,999 | |||||||||||
Elimination of consolidated VIE expenses attributed to operating segments | — | — | (13,215 | ) | (13,215 | ) | |||||||||
Total expenses | 67,292 | 59,958 | (12,174 | ) | 115,076 | ||||||||||
OPERATING INCOME | 9,283 | 23,025 | (1,660 | ) | 30,648 | ||||||||||
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 | — | 23,428 | — | 23,428 | |||||||||||
Elimination of consolidated VIE other income, net | — | — | 244 | 244 | |||||||||||
566 | 23,428 | (1,997 | ) | 21,997 | |||||||||||
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 | ||||||
Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income attributable to common shareholders - GAAP | $ | 1,744 | $ | 1,375 | $ | 6,968 | $ | 6,426 | ||||||||
Adjustments, net of tax: | ||||||||||||||||
Loss, net of eliminations, attributable to consolidation of RSO | 415 | 762 | 2,050 | 1,744 | ||||||||||||
Loss attributable to commercial finance | 81 | 464 | 2,661 | 4,430 | ||||||||||||
Deferred tax (benefit) provision | (105 | ) | 887 | 380 | (805 | ) | ||||||||||
Adjusted net income attributable to common shareholders | $ | 2,135 | $ | 3,488 | $ | 12,059 | $ | 11,795 | ||||||||
Adjusted weighted average diluted shares outstanding | 23,094 | 21,828 | 22,371 | 21,905 | ||||||||||||
Adjusted net income attributable to common shareholders per common per share-diluted | $ | 0.09 | $ | 0.16 | $ | 0.54 | $ | 0.54 |
(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 in both its real estate and financial fund management segments for the three months and year ended December 31, 2014 and 2013 separately from its commercial finance operations, RSO and deferred tax (benefit) provision. 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. |