DALLAS, May 15, 2001 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) today announced that increased gains on sales of land and real estate and decreased expenses produced a first quarter 2001 net income of $2.4 million, or $.17 per share, on revenue of $41.5 million, as compared to a net loss of $5.7 million, or $.58 per share, on revenue of $45.2 million for the first quarter of 2000.
Revenue for first quarter 2001 decreased by $3.7 million from the comparable period in 2000, due to lower total rents, resulting from sales of nine apartments and four commercial properties in 2000, as well as lower other income, resulting from the payoff of notes receivable in 2000. In first quarter 2001:
-- Rents declined to $33.2 million, from $35.1 million in first quarter 2000. Hotel rents increased by $800,000, primarily due to the opening of a European hotel in 2001.
-- Pizza sales and cost of sales were comparable to first quarter 2000.
-- Interest income decreased to $384,000, from $2.2 million in first quarter 2000.
-- Gain on land sales was $3.8 million, from $2.4 million in first quarter 2000
-- Gain on real estate sales was $16.4 million, from $16.2 million in first quarter 2000.
-- Equity in income of investees decreased to a loss of $5,000, from income of $202,000 in 2000.
Total expenses for the three months ended March 31, 2001, decreased to $52.9 million, from $63.3 million in first quarter 2000, due to property and land sales and the merger of National Realty, L.P. into ARI in 2000. Property operations expense was comparable, with the completion of apartment construction and fire recovery in 2000 and the hotel opening in 2001 offsetting reductions due to the property sales.
In first quarter 2001:
-- Interest expense decreased to $18.1 million, from $20.2 million in first quarter 2000.
-- Depreciation decreased to $4.1 million, from $4.4 million in 2000.
-- General and administrative expense decreased to $2.9 million, from $4.1 million in 2000.
-- Advisory fees approximated those in 2000.
-- Minority interest expense decreased to $1.6 million, from $9.4 million in 2000.
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. The company also has interests in mortgage loans and real estate-related entities. For more information on the company, go to www.amrealtytrust.com .
AMERICAN REALTY INVESTORS, INC.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended March 31,
2001 2000
Income from rents $ 33,213 $ 35,079
Expense from operations 23,451 23,965
Operating income 9,762 11,114
Land sales 20,490 10,609
Cost of sales 16,701 8,160
Gain on land sales 3,789 2,449
Pizza sales 7,826 7,872
Cost of sales 6,422 6,488
Gross margin 1,404 1,384
Income from operations 14,955 14,947
Other income 412 2,543
Other expense 29,403 39,367
Gain on sale of real estate 16,426 16,154
Net income (loss) 2,390 (5,723)
Preferred dividend requirement (642) (508)
Net (loss) applicable to
Common shares $ 1,748 $ (6,231)
Earnings Per Share
Net (loss) $ .17 $ (.58)
Weighted average common
shares used to compute
earnings per share 10,104,268 10,759,472