DALLAS, April 1, 2002 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) Monday announced 2001 fourth quarter and 12-month net incomes of $2.46 million and $12.58 million, or $.22 per share and $1.07 per share, on revenues of $39.84 million and $166.02 million, respectively, as compared to net incomes of $372,000 and $352,000, or $.03 per share and $.03 per share, on revenues of $39.44 million and $172.75 million, respectively, in the comparable periods in 2000.
Details of income and expense of operations and sales and cost of sales for the twelve months ended Dec. 31, 2001, are as follows:
-- Income from rents decreased to $129.30 million, from $138.16
million in 2000, due to a decrease in apartment rents as a result
of the sale of 26 apartments in 2000 and 2001. The decrease was
partially offset by an increase in rents from the commercial
properties due to the completion in 2000 of two office buildings
under construction and an increase in rents resulting from the
opening of a hotel in 2001.
-- Property operations expenses decreased to $93.19 million, from
$94.08 million in 2000, due to a decrease in expenses from
apartment and land operations resulting from property sales in
2000 and 2001, which offset the increase in hotel expenses from
the opening of a hotel.
-- Pizza parlor sales increased to $34.21 million, from $32.55
million. Cost of sales increased to $27.93 million from $26.77
million in 2000. Gross margins rose to $6.28 million, from $5.78
million in 2000, primarily due to reduced interest costs and lower
occupancy costs.
-- Land sales decreased to $45.29 million, from $119.38 million in
2000. Cost of sales decreased to $36.08 million, from $90.38
million in 2000. Net gains on sales were $9.21 million, compared
to $29.0 million in 2000.
Other 2001 income included equity in the income of investees that increased to $8.80 million, from $5.25 million in 2000, due to increased ownership in the common stock of an affiliate, and net gains on sales of real estate increased to $74.21 million, from $67.73 million in 2000. Gains of $75.78 million were realized in 2001 on the sale of 15 apartments and one shopping center; losses of $1.57 million were recorded on sales of two apartments.
Expenses (excluding operations expenses and cost of sales) decreased to $121.78 million, from $151.20 million in 2000. Details on expenses in 2001 are:
-- Interest expense of $77.05 million approximated the $76.70 million
reported in 2000.
-- Depreciation, depletion and amortization increased to $17.71
million, from $16.88 million in 2000, due to the completion of two
office buildings under construction in 2000 and the opening of a
hotel in 2001.
-- General and administrative expenses decreased to $12.74 million,
from $17.13 in 2000, due to a reduction in cost reimbursements
paid to the advisor.
-- Advisory fees increased to $6.71 million, from $5.89 million in
2000, due to the addition of assets from the acquisition of
National Realty, L.P. in 2000.
-- Incentive fees increased to $3.83 million on 18 eligible sales,
compared to $1.65 million on four eligible sales in 2000.
-- Minority interest decreased to $972,000, from $30.70 million in
2000, due to the 2000 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 the company, go to the Web site at www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Year ended Three months ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
Income from rents $ 129,300 $138 ,160 $ 30,552 $ 32,949
Expense from operations 93,185 94,081 21,939 23,630
Operating income 36,115 44,079 8,613 9,319
Land sales 45,290 119,384 3,484 11,146
Cost of sales 36,083 90,383 2,537 9,267
Gain on land sales 9,207 29,001 947 1,879
Pizza sales 34,211 32,551 8,929 8,163
Cost of sales 27,934 26,767 7,219 6,629
Gross margin 6,277 5,784 1,710 1,534
Oil and gas operations
Sales 59 -- (38) --
Operating Expenses 269 -- 83 --
Gross margin (210) -- (121) --
Income from
operations $ 51,389 $ 78,864 $ 11,149 $ 12,732
Other income 11,251 7,285 39 698
Gain on sale
of real estate 74,207 67,727 19,607 16,021
Other expense 121,778 151,197 27,715 30,065
Net income (loss)
before income taxes $ 15,069 $ 2,679 $ 3,080 $ (614)
Provision for
income taxes -- $ -- $ -- $ 1,652
Net income $ 15,069 $ 2,679 $ 3,080 $ 1,038
Preferred
dividend requirement (2,485) (2,327) (617) (666)
Net income applicable
to Common shares $ 12,584 $ 352 $ 2,463 $ 372
Earnings Per Share
Net income $ 1.07 $ .03 $ .22 $ .03
Weighted average
common shares used
to compute earnings
per share 11,714,374 10,399,890 11,375,127 10,110,468