American Realty Investors, Inc. Reports First Quarter 2006 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- The date of the second column heading of the CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: STATEMENTS OF OPERATIONS should read: "March 31, 2005" (sted December December: see month. 31, 2005). The corrected release reads: AMERICAN American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of REALTY realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. INVESTORS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . REPORTS FIRST QUARTER 2006 RESULTS American Realty Investors, Inc. (NYSE NYSE See: New York Stock Exchange :ARL ARL - ASSET Reuse Library ), a Dallas-based real estate investment company, announced today that the Company reported a net loss applicable to common shares of $8.7 million, or $0.86 per share, for the three months ended March 31, 2006 compared to net income applicable to common shares of $20.0 million, or $1.56 per share for the three months ended March 31, 2005. Although rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. revenues and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. both increased compared to the same period in 2005, the Company's results swung to a loss due mainly to higher interest expense resulting from 2005 land acquisitions and lower gains on land and rental-property sales driven by fewer transactions. Rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time increased to $45.9 million from $37.8 million in 2005, due principally to the completion of apartment construction projects and the 2005 acquisition of commercial properties. Gains on land sales decreased to $2.7 million for the three months ended March 31, 2006, from $24.2 million in 2005. In 2006 the Company sold 12.0 acres of land in two separate transactions at an average sales price of $375,000 per acre. For the same period in 2005 the Company sold 300 acres of land in 11 separate transactions at an average sales price of $174,000 per acre. Expenses for the three months ended March 31, 2006, compared to the same period in 2005, included: --Property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $29.7 million, compared to $26.5 million in 2005. The increase is due primarily to the completion of apartment construction projects along with the 2005 acquisition of commercial properties. --Depreciation and amortization of $6.7 million, compared to $5.6 million in 2005. The increase is related to purchase of commercial properties in 2005. --Mortgage and loan interest of $18.7 million, compared to $15.2 million in 2005. The increase is primarily due to new debt from the completion of apartment construction projects and financing related to land acquisitions and the purchase of commercial properties in 2005. Results of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. swung to a loss of $898,000 for the three months ended March 31, 2006, compared to income of $10.4 million in 2005. For the first quarter in 2006, the Company sold no rental properties. For the same period in 2005, the Company sold three rental properties in three separate transactions for a combined gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. price of $21,732,000. About American Realty Investors, Inc. 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 shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into and developed and undeveloped land. For more information, go to ARI's web site at www.amrealtytrust.com
AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
For the Period Ending
(dollars in thousands)
March 31, December 31,
2006 2005
------------ -------------
(unaudited)
Assets
Real estate held for investment $1,091,293 $1,025,661
Less--accumulated depreciation (159,593) (153,597)
------------ -------------
931,700 872,064
Real estate held for sale, net of
depreciation 169,123 172,303
Real estate subject to sales contract 68,326 68,738
Notes and interest receivable
Performing ($44,805 in 2006 and $44,500
in 2005 from affiliates) 61,347 70,894
Non-performing 11,546 11,546
------------ -------------
72,893 82,440
Less--allowance for estimated losses (1,003) (1,000)
------------ -------------
71,890 81,440
Restaurant equipment 13,981 13,911
Less--accumulated depreciation (7,832) (7,528)
------------ -------------
6,149 6,383
Marketable securities, at market value 7,936 7,446
Cash and cash equivalents 8,731 13,904
Investments in equity investees 13,660 13,521
Goodwill, net of accumulated amortization
($1,763 in 2006 and 2005) 11,858 11,858
Other intangibles, net of accumulated
amortization ($616 in 2006 and $926 in
2005) 1,435 1,449
Other assets ($32,535 in 2006 and $30,441 in
2005 from affiliate) 104,898 96,689
------------ -------------
$1,395,706 $1,345,795
============ =============
Liabilities and Stockholders' Equity
Liabilities
Notes payable ($44,845 in 2006 and $45,530
in 2005 to affiliates) $853,040 $810,118
Interest payable ($1,046 in 2006 and $682 in
2005 to affiliates 8,750 7,826
Liabilities related to assets held for sale 153,124 144,555
Liabilities subject to sales contract 58,781 59,323
Stock-secured notes payable 22,549 22,549
Accounts payable and other liabilities ($238
in 2006 and $4,667 in 2005 to affiliates) 88,675 93,842
------------ -------------
1,184,919 1,138,213
Commitments and contingencies
Minority interest 70,782 59,185
Stockholders' equity
Preferred Stock, $2.00 par value, authorized
50,000,000 shares, issued and outstanding
Series A Cumulative Convertible Preferred
Stock, 3,390,913 shares in 2006 and 2005
(liquidation preference $33,909),
including 900,000 shares in 2006 and
2005 held by subsidiaries 4,982 4,982
Common Stock, $.01 par value, authorized
100,000,000 shares; issued 11,592,272
shares in 2006 and 2005 114 114
Treasury stock, at cost, 1,443,272 shares in
2006 and 2005 (15,146) (15,146)
Paid-in capital 93,389 93,389
Retained earnings 56,116 64,805
Accumulated other comprehensive income
(loss) 550 253
------------ -------------
140,005 148,397
------------ -------------
$1,395,706 $1,345,795
============ =============
AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months
(dollars in thousands)
March 31, March 31,
2006 2005
----------- -------------
Property revenue:
Rental and other property revenues ($259
in 2006 and $182 in 2005 from affiliates) $45,867 $37,758
Restaurant sales 9,349 8,620
----------- -------------
Total operating revenues 55,216 46,378
Expenses:
Property operating expenses ($1,923 in
2006 and $1,644 in 2005 to affiliates) 29,670 26,464
Restaurant cost of sales 6,915 6,754
Depreciation and amortization 6,726 5,572
General and administrative ($567 in 2006
and $899 in 2005 to affiliates) 3,892 2,736
Advisory fee to affiliate 3,081 2,906
----------- -------------
Total operating expenses 50,284 44,432
----------- -------------
Operating income (loss) 4,932 1,946
Other income (expense):
Interest income from notes receivable
($657 in 2006 and $859 in 2005 from
affiliates) 1,146 1,590
Gain on foreign currency transaction 2 --
Other income ($953 in 2006 from affiliate) 1,702 106
Mortgage and loan interest ($669 in 2006
and $501 in 2005 to affiliates) (18,704) (15,174)
Net income fee to affiliate - (1,477)
----------- -------------
Total other income (expense) (15,854) (14,955)
----------- -------------
Loss before gain on land sales, minority
interest, and equity in earnings of
investees (10,922) (13,009)
Gain on land sales 2,740 24,178
Minority interest 830 (921)
Equity in income (loss) of investees 175 60
----------- -------------
Income (loss) from continuing operations (7,177) 10,308
Income from discontinued operations (898) 10,370
----------- -------------
Net income (loss) (8,075) 20,678
Preferred dividend requirement (614) (650)
----------- -------------
Net income (loss) applicable to Common shares $(8,689) $20,028
=========== =============
Basic earnings per share:
Income (loss) from continuing operations $(0.77) $0.96
Income from discontinued operations (0.09) 1.03
----------- -------------
Net income (loss) applicable to Common
shares $(0.86) $1.98
=========== =============
Diluted earnings per share:
Income (loss) from continuing operations $(0.77) $0.75
Income from discontinued operations (0.09) 0.81
----------- -------------
Net income (loss) applicable to Common
shares $(0.86) $1.56
=========== =============
Weighted average Common shares used in
computing earnings per share:
Basic 10,149,000 10,149,000
Diluted 13,106,924 12,907,309
Series A Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". (2,491,000 shares of Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into common stock estimated to be 2,957,000 common shares) and options to purchase 70,750 shares of ARI's common stock were excluded from the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the three months ended March 31, 2006, because the effect of their inclusion would be antidilutive antidilutive Of or relating to the conversion of convertible securities into common stock when such conversion would result in an increase in diluted earnings per share or a decrease in diluted loss per share. . |
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