DALLAS, Nov. 14, 2001 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) announced Wednesday that the company posted third quarter and nine month net incomes of $1.07 million and $11.99 million, or $.04 and $1.00 per share, on revenues of $49.76 million and $165.93 million, respectively, as compared to net incomes of $8.23 million and $1.64 million, or $.76 and $0.0 [zero] per share, on revenues of $132.12 million and $237.84 million, respectively, in the comparable periods of 2000.
Details of income and sales and related expenses and costs for the periods ended Sept. 30, 2001, are as follows:
-- Incomes from rents decreased to $32.71 million and $98.75 million,
from $34.71 million and $105.21 million in the same periods in
2000, due to 2000-2001 sales of income producing property. The
decrease, due to lower apartment rents, was partially offset by
increased occupancy at the commercial properties and the opening
of a new hotel. Property operations expenses decreased to $22.15
million in the three months, from $23.78 million in 2000 and
increased to $71.25 million in the nine months, from $70.45
million in 2000 due to increased commercial property and hotel
expenses, partially offset by decreased expenses at the apartments
due to sales of properties.
-- Interest income increased to $837,000 in the three months, from
$283,000 in 2000, due to new loans funded in 2001, and decreased
to $2.0 million in the nine months, from $3.30 million in 2000,
due to the collection of mortgage notes receivables and their
related maturity in 2000 and 2001.
-- Pizza parlor sales increased to $8.72 million and $25.28 million,
from $8.12 million and $24.38 million, as a result of aggressive
marketing. Cost of sales increased to $7.16 million and $20.72
million from $6.80 million and $20.14 million in 2000. Gross
margins rose to $1.56 million and $4.57 million, from $1.33
million and $4.25 million in 2000.
-- Land sales decreased to $8.23 million and $41.81 million, from
$89.28 million and $108.24 million in 2000, and the costs of sales
were $4.68 million and $33.55 million, down from $65.67 million
and $81.12 million in 2000. Gains on sales of land were $3.55
million and $8.26 million, compared to $23.61 million and $27.12
million in 2000.
-- Oil and gas operations sales were $97,000 and operating expenses
were $186,000 for both the third quarter and nine months of 2001,
as compared to $0.0 [zero] for sales and expenses in both periods
in 2000. Expenses included lifting costs and repairs and
maintenance.
Other third quarter and nine months income included:
-- Equity in the income of investees increased to $3.45 million and
$9.16 million, from $2.58 million and $2.87 million in 2000, due
to losses associated with sales of the stock in two affiliates in
2000 and gains from property sales of an affiliate in 2001.
-- Gains on sales of real estate, excluding land, increased to $12.33
million and $54.60 million, from $3.47 million and $51.71 million
in the same periods in 2000.
Other expenses (excluding property operations expenses, costs of sales for pizza and land, and oil and gas expenses) decreased to $31.12 million and $94.06 million, from $32.93 million and $121.13 million for the comparable periods in 2000. Details on expenses for the periods in 2001 are below:
-- Interest expenses decreased to $19.06 million and $56.24 million,
from $19.58 million and $60.15 million in 2000, due to sales of
income producing property and land that was subject to debt.
-- Depreciation,depletion and amortization increased to $4.49 million
and $13.17 million, from $4.0 million and $12.91 million in 2000,
due to the opening of a new hotel in 2001.
-- General and administrative expenses increased to $4.61 million,
from $2.87 million, in the three months and decreased in the nine
months to $9.08 million, from $11.71 million in 2000. The three
month increase is due to higher legal and audit fees, while the
nine months decrease is due to reduced consulting and partnership
fees and a reduction in cost reimbursements paid to the advisor.
-- Advisory fees of $1.4 million in the three months approximated
those in the same quarter in 2000, while the nine months fees
increased to $4.97 million, from $4.15 million in 2000, due to
the addition of assets to the fee basis with the August 2000
acquisition of National Realty, L.P. (NLP).
-- Net income fee to affiliate was a refund of $1.13 million and a
payment of $638,000 in the three and nine months, compared to
$0.0 [zero] in the 2000 periods, and are based on 10 percent of
the yearly net income, in excess of a 10 percent return on
shareholders' equity.
-- Incentive fees to affiliate of $1.64 million and $7.48 million in
2001, compared to $0.0 [zero] in 2000, were earned in 2000 and
based on 10 percent of the excess of net capital gains over
net capital losses realized from sales of assets.
-- Minority interest decreased to $1.0 million and $2.48 million,
from $4.95 million and $32.22 million in 2000 due to the
acquisition of NLP.
American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers, and developed and undeveloped land. For more information on ARI, go to the company's Website at www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2001 2000 2001 2000
Income from rents $ 32,712 $ 34,708 $ 98,748 $ 105,211
Expense from operations 22,152 23,776 71,246 70,451
Operating income 10,560 10,932 27,502 34,760
Land sales 8,229 89,285 41,806 108,238
Cost of sales 4,682 65,674 33,546 81,116
Gain on land sales 3,547 23,611 8,260 27,122
Pizza sales 8,723 8,124 25,282 24,388
Cost of sales 7,164 6,798 20,715 20,138
Gross margin 1,559 1,326 4,567 4,250
Oil and gas operations
Sales 97 -- 97 --
Operating Expenses 186 -- 186 --
Gross margin (89) -- (89) --
Income from operations $ 15,577 $ 35,869 $ 40,240 $ 66,132
Other income 4,270 3,466 11,212 6,587
Gain on sale of
real estate 12,334 3,474 54,600 51,706
Other expense 31,115 32,929 94,063 121,132
Income before
income taxes $ 1,066 $ 9,880 $ 11,989 $ 3,293
Provision for
income taxes -- (1,652) -- (1,652)
Net income $ 1,066 $ 8,228 $ 11,989 $ 1,641
Preferred dividend
requirement (620) (590) (1,868) (1,661)
Net income (loss)
applicable
to Common shares $ 446 $ 7,638 $ 10,121 $ (20)
Earnings Per Share
Net income $ .04 $ .76 $ 1.00 $ --
Weighted average
common shares
used to compute
earnings
per share 10,193,217 10,013,087 10,141,840 10,496,364