DALLAS, April 2, 2001 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) Monday reported decreased gains on the sale of real estate and lower rental and interest incomes produced a 2000 net income of $2.7 million, or $.26 per share, on revenue of $172.8 million, compared to 1999 net income of $10.8 million, or $.96 per share, on revenue of $194 million. Fourth quarter 2000 net income was $1 million, or $.10 per share, on revenue of $39.4 million, compared to 1999 fourth quarter net income of $8.4 million, or $.78 per share, on revenue of $44.9 million.
Total 2000 revenue decreased by $21.2 million due to decreased rents, interest and other income, mostly due to the sale of income producing properties. In 2000:
-- Rental income fell to $138.2 million from $157.6 million in 1999
due to the sales of 24 apartments in 1999-2000. Hotel and
commercial property rents increased due to increased hotel
occupancy and the completion of three new office buildings.
-- Pizza operations reported higher margins due to lower pizza
ingredient costs, a price increase and the closing of under-
performing locations. Sales and cost of sales were $32.6 million
and $26.8 million, compared to $30.8 million and $26.3 million in
1999.
-- Interest decreased by $3.4 million due to the collection of $39.9
million in notes.
-- Equity in income of investees decreased to $5.2 million from $11.8
million in 1999 due to ARI's reduced stock ownership in two
affiliates.
Gains on selective property sales and dispositions of land decreased to $96.7 million in 2000, compared to $129.3 million in 1999. Nine apartments, 38 land tracts, three retail centers and an office building were sold.
Total expenses decreased to $272 million in 2000 from $324.8 million in 1999, primarily due to land and apartment sales. In 2000:
-- Property operations expense was $ 94.1 million, compared to $106.6
million in 1999.
-- Interest expense was $76.7 million, compared to $91.7 million in
1999.
-- The advisory fee decreased to $5 million, from $5.5 million in
1999 due to the decrease in gross assets, the basis for the fee.
Incentive fees were $1.6 million, representing 10 percent of
excess net capital gains over net capital losses from sales of
operating properties.
-- General and administrative expense was $18 million, compared to
$17.1 million in 1999 due to higher taxes.
-- Depreciation and amortization were $16.9 million, compared to
$17.4 million in 1999.
-- A provision for loss of $2.2 million, related to ARI's reduction
in the carrying value of a tract of land's net realizable value
and a litigation reserve.
-- Minority interest expense, the earnings attributable to limited
partners other than ARI, decreased to $30.7 million from $56.7
million in 1999, due to the merger of National Realty, L.P. and
American Realty Trust, Inc. into ARI on August 2, 2000.
American Realty Investors is a Dallas-based real estate investment company primarily investing in real estate and real estate-related entities. For more information, go to the company's Web site at www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except share and per share data)
Three months ended Twelve months ended
Dec. 31, Dec. 31,
2000 1999 2000 1999
---------- ---------- ---------- ----------
Income from rents $ 32,949 $ 35,506 $ 138,160 $ 157,631
Expense from
operations 23,630 25,776 94,081 106,554
---------- ---------- ---------- ----------
Operating income 9,319 9,730 44,079 51,077
Land sales 11,146 7,460 119,384 69,618
Cost of sales 9,267 1,325 90,383 46,066
---------- ---------- ---------- ----------
Gain on land sales 1,879 6,135 29,001 23,552
Pizza sales 8,163 8,028 32,551 30,781
Cost of sales 6,629 6,769 26,767 26,278
---------- ---------- ---------- ----------
Gross margin 1,534 1,259 5,784 4,503
Income from operations 12,732 17,124 78,864 79,132
Other income 698 7,856 7,285 17,415
Other expense 30,065 52,378 151,197 191,957
Gain on sale
of real estate 16,021 35,818 67,727 105,708
---------- ---------- ---------- ----------
Net income (loss)
before income taxes (614) 8,420 2,679 10,298
Provision for
income taxes 1,652 -- -- --
---------- ---------- ---------- ----------
Net Income 1,038 8,415 2,679 10,298
Preferred dividend
requirement (666) (577) (2,327) (2,281)
---------- ---------- ---------- ----------
Net income applicable
to Common shares $ 372 $ 7,843 $ 352 $ 8,017
========== ========== ========== ==========
Earnings Per Share
Net income $ .03 $ .73 $ .03 $ .75
========== ========== ========== ==========
Weighted average
Common shares
used to compute
earnings per share 10,110,468 10,759,391 10,399,890 10,759,416