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 1, 2016 | 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) |
• | Adjusted net income attributable to common shareholders of $4.2 million or $0.20 per common share-diluted (see Schedule I) |
• | Raised a record $196.0 million for Resource Real Estate Opportunity REIT II, Inc. |
• | Book value per common share of $7.09 |
• | Repurchased 866,389 shares at an average price of $5.67 per share |
December 31, | |||||||
2015 | 2014 | ||||||
Financial fund management | $ | 16.8 | $ | 16.1 | |||
Real estate | 4.1 | 3.4 | |||||
Commercial finance | 0.8 | 0.7 | |||||
$ | 21.7 | $ | 20.2 | ||||
Net assets under management (1) | $ | 9.4 | $ | 9.7 |
(1) | Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements. As of December 31, 2015 and 2014, net assets reflect the Company's 24% and 33% interests, respectively, in its CVC Credit Partners joint venture. |
• | Increased total assets to $1.1 billion at December 31, 2015, an increase of 12%, from $978.4 million at December 31, 2014. |
• | Acquired $256.4 million of assets, placed or assumed financing of $139.3 million and disposed of $87.7 million of multifamily assets. |
• | Raised a record $196.0 million during the three months ended December 31, 2015 and completed fundraising in February 2016 with a total equity capital raise of $556.0 million. |
• | Increased total assets to $596.4 million at December 31, 2015, an increase of 634%, from $81.2 million at December 31, 2014. |
• | Acquired $170.7 million of assets and placed $42.5 million of financing during the three months ended December 31, 2015. Acquisitions and financings totaled $372.8 million and $116.2 million, respectively, for the year ended December 31, 2015. |
• | The Company's real estate operating segment increased its gross assets under management at December 31, 2015 to $4.1 billion, an increase of $700.3 million, or 21%, from December 31, 2014. |
• | Real estate revenues increased 79% and 44% to $24.9 million and $79.1 million for the three months and year ended December 31, 2015, respectively, as compared to $13.8 million and $54.9 million for the three months and year ended December 31, 2014. |
• | The Company's financial fund management operating segment increased its gross assets under management at December 31, 2015 to $16.8 billion, an increase of $700.0 million, or 4%, from December 31, 2014. |
• | On August 13, 2015, the Company's Board of Directors authorized the repurchase of $25.0 million of its common stock; $7.8 million remains available for repurchase under this plan. |
• | The Company repurchased 866,389 and 2.7 million of its shares during the fourth quarter and year ended December 31, 2015, respectively, at average prices of $5.67 and $7.35 per share. The shares repurchased during 2015 represented approximately 12% of outstanding shares. |
• | 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 29, 2016 to holders of record as of the close of business on January 15, 2016. |
• | RSO's Board of Directors declared a cash dividend of $0.42 per common share for its three months ended December 31, 2015. |
December 31, | |||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Cash | $ | 24,132 | $ | 33,947 | |||
Restricted cash | 937 | 725 | |||||
Receivables | 3,228 | 1,414 | |||||
Loans and receivables from managed entities and related parties, net | 26,667 | 32,745 | |||||
Investments in real estate, net | 16,022 | 17,097 | |||||
Investment securities, at fair value | 45,672 | 41,383 | |||||
Investments in unconsolidated loan manager | 32,616 | 39,655 | |||||
Investments in unconsolidated entities | 17,553 | 16,024 | |||||
Property and equipment, net | 5,371 | 5,063 | |||||
Deferred tax assets, net | 29,264 | 32,818 | |||||
Other assets | 9,733 | 5,556 | |||||
Total assets | $ | 211,195 | $ | 226,427 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Accrued expenses and other liabilities | $ | 27,184 | $ | 22,474 | |||
Payables to managed entities and related parties | 3,145 | 3,124 | |||||
Borrowings | 20,747 | 20,970 | |||||
Total liabilities | 51,076 | 46,568 | |||||
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; 34,973,987 and 34,489,568 shares issued (including nonvested restricted stock of 1,095,238 and 833,082), respectively | 339 | 335 | |||||
Additional paid-in capital | 311,491 | 308,134 | |||||
Accumulated deficit | (31,683 | ) | (32,051 | ) | |||
Treasury stock, at cost; 14,460,024 and 11,764,417 shares, respectively | (139,858 | ) | (120,182 | ) | |||
Accumulated other comprehensive income (loss) | (2,526 | ) | 3,025 | ||||
Total stockholders’ equity | 137,763 | 159,261 | |||||
Noncontrolling interests | 22,356 | 20,598 | |||||
Total equity | 160,119 | 179,859 | |||||
Total liabilities and equity | $ | 211,195 | $ | 226,427 |
Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUES: | |||||||||||||||
Real estate | $ | 24,853 | $ | 13,849 | $ | 79,130 | $ | 54,861 | |||||||
Financial fund management | 2,694 | 7,627 | 20,411 | 29,118 | |||||||||||
Commercial finance | 248 | (6 | ) | 314 | (164 | ) | |||||||||
27,795 | 21,470 | 99,855 | 83,815 | ||||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Real estate | 12,499 | 10,047 | 47,303 | 37,411 | |||||||||||
Financial fund management | 3,923 | 4,844 | 13,687 | 14,902 | |||||||||||
Commercial finance | 505 | 396 | 1,976 | 979 | |||||||||||
General and administrative | 4,294 | 3,041 | 15,825 | 11,118 | |||||||||||
Provision for credit losses | 2 | (284 | ) | 280 | 3,058 | ||||||||||
Depreciation and amortization | 485 | 450 | 1,961 | 1,819 | |||||||||||
21,708 | 18,494 | 81,032 | 69,287 | ||||||||||||
OPERATING INCOME (LOSS) | 6,087 | 2,976 | 18,823 | 14,528 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Gain (loss) on sale of investment securities, net | — | 6 | — | 445 | |||||||||||
Other-than-temporary impairment on investments | (180 | ) | — | (4,677 | ) | — | |||||||||
Interest expense | (449 | ) | (458 | ) | (1,775 | ) | (1,905 | ) | |||||||
Other income, net | 329 | 553 | 1,718 | 2,532 | |||||||||||
(300 | ) | 101 | (4,734 | ) | 1,072 | ||||||||||
Income (loss) from continuing operations before taxes | 5,787 | 3,077 | 14,089 | 15,600 | |||||||||||
Income tax provision (benefit) | 3,289 | 862 | 6,745 | 5,853 | |||||||||||
Net income (loss) | 2,498 | 2,215 | 7,344 | 9,747 | |||||||||||
Net (income) loss attributable to noncontrolling interest | 1,188 | (56 | ) | (2,044 | ) | (729 | ) | ||||||||
Net income (loss) attributable to common shareholders | $ | 3,686 | $ | 2,159 | $ | 5,300 | $ | 9,018 | |||||||
Basic earnings per share: | |||||||||||||||
Net income (loss) | $ | 0.18 | $ | 0.09 | $ | 0.24 | $ | 0.43 | |||||||
Weighted average shares outstanding | 20,998 | 22,817 | 22,218 | 21,148 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Net income (loss) | $ | 0.17 | $ | 0.09 | $ | 0.24 | $ | 0.40 | |||||||
Weighted average shares outstanding | 21,272 | 23,094 | 22,489 | 22,371 |
Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) attributable to common shareholders - GAAP | $ | 3,686 | $ | 2,159 | $ | 5,300 | $ | 9,018 | ||||||||
Adjustments, net of tax: | ||||||||||||||||
Impairment of investment in unconsolidated loan manager | — | — | 2,539 | — | ||||||||||||
Loss attributable to commercial finance | 123 | 81 | 1,078 | 2,661 | ||||||||||||
Deferred tax provision (benefit) | 398 | (105 | ) | 1,686 | 380 | |||||||||||
Adjusted net income attributable to common shareholders | $ | 4,207 | $ | 2,135 | $ | 10,603 | $ | 12,059 | ||||||||
Weighted average diluted shares outstanding | 21,272 | 23,094 | 22,489 | 22,371 | ||||||||||||
Adjusted net income attributable to common shareholders per common per share-diluted | $ | 0.20 | $ | 0.09 | $ | 0.47 | $ | 0.54 |
(1) | Adjusted net income attributable to common shareholders presents the Company's operations without the effect of the impairment of its investment in unconsolidated loan manager, its commercial finance operations 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, 2015 and 2014 separately from its commercial finance operations 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. |