American Spectrum Realty Reports Fourth Quarter and Year-End Results; Outlines Strategic Growth Objectives for 2003 and Beyond Board Omits Fourth Quarter Dividend.Business Editors/Real Estate Writers IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--March 25, 2003 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 Spectrum 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. , Inc. (AMEX AMEX See: American Stock Exchange : AQQ AQQ Annual Qualifications Questionnaire ) announced today its results for the fourth quarter and twelve months ended December December: see month. 31, 2002. The Company recorded rental revenue from real estate held for investment of $38,043,000, for the twelve months of 2002, which consisted of $9,500,000 for the fourth quarter, $9,688,000 for the third quarter, $9,591,000 for the second quarter and $9,264,000 for the first quarter. The weighted average occupancy of the Company's properties at December 31, 2002 was 81%. Rental revenue does not include results from three properties, a California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). apartment complex and a Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. shopping center 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 , which were sold in October October: see month. 2002, and an Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). industrial property, which is considered held for sale. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[]As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the results of operations of these three properties are shown in the Company's financial statements as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . The Company reported a net loss of $990,000, or $.18 per common share, for the fourth quarter of 2002 and $7,130,000, or $1.29 per common share, for the twelve months of 2002. The twelve months results reflect the following non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. : depreciation and amortization from real estate held for investment of $11,691,000, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement payable in the future of $1,200,000, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges of $4,746,000, deferred compensation expense of $834,000; and the following non-cash benefits: income tax of $7,083,000, deferred 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 of $407,000, minority interest of $935,000 and amortization of loan premiums of $621,000. A comparison of operating results between 2002 and 2001 is not meaningful, since the consolidation of various entities into the Company did not occur until October 19, 2001. The results for 2002 are for the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
"In 2002, we completed our first year as a public company, establishing a foundation for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth and a solid operational infrastructure," stated William J. Carden, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Spectrum. "We are exiting the shopping center and apartment markets to aggressively pursue higher growth, commercial multi-tenant office and industrial properties. The Company's geographic focus is now Texas, Arizona and California, our current core strength and dominant locations. We are continuing to explore synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. acquisition opportunities to expand our market presence in our core markets." Mr. Carden added, "Our plan to grow and to attain profitability is premised on the sale of our non-core assets. We will actively market our apartment and shopping center properties and our properties in the Midwest during 2003. In this regard, we have re-evaluated an earlier decision and determined to sell properties for cash outside of tax-deferred exchanges. This re-evaluation resulted in a charge to equity of $13,165,000 in 2002. Also, we have settled a litigation, which resulted in a charge of $1,200,000 in 2002. We believe that these decisions and developments will put us on the path to improve operating results. Success at American Spectrum is best measured by continuing to achieve our objectives for long term growth. Looking ahead, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about building on the momentum established in 2002." American Spectrum also announced that its Board of Directors had determined not to pay a dividend at this time and had established a policy of meeting on or about the 45th day after the end of each calendar quarter to consider the declaration and payment of a dividend. Its first dividend meeting on this schedule will be in May 2003. Mr. Carden said, "Current unsettled economic conditions generally and in the real estate industry have resulted in delays in closing pending property sales and in management's marketing efforts and have led us to conclude that it would not be prudent to pay a dividend at this time." American Spectrum Realty, Inc. is a diversified diversified (di·verˑ·s real estate investment and management company that owns 33 office, industrial, apartment and retail properties aggregating 3.656 million square feet in California, Texas, Arizona, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and the Midwest. Publicly traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. since November 2001, American Spectrum Realty's business plan focuses on expansion of office and industrial property investments in Texas, Arizona and California. Certain matters discussed in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company's past and current filings with the U.S. Securities and Exchange Commission.
AMERICAN SPECTRUM REALTY, INC.
Statement of Operations
(Dollars in thousands)
Quarter Ended
December 31,
-------------------
2002 2001
-------- -------
REVENUES:
Rental revenue $ 9,500 $ 7,274
Interest and other income 12 29
-------- -------
Total revenues 9,512 7,303
EXPENSES:
Property operating expense 3,943 2,990
General and administrative 2,240 2,863
Depreciation and amortization 3,070 2,123
Interest expense 3,491 2,409
Litigation settlement 1,200 -
Impairment of real estate assets 4,746 -
-------- -------
Total expenses 18,690 10,385
OTHER INCOME:
Net loss on sale of real estate asset (200) -
Net gain on extinguishment of debt - 314
Income from investment in unconsolidated joint
venture - 28
-------- -------
Total other (loss) income (200) 342
-------- -------
Net loss before income tax benefit, minority
interest and discontinued operations (9,378) (2,740)
Income tax benefit 7,083 -
-------- -------
Net loss before minority interest and discontinued
operations (2,295) (2,740)
Minority interest 129 267
-------- -------
Net loss before discontinued operations (2,166) (2,473)
Income from discontinued operations 1,176 75
-------- -------
Net loss (990) (2,398)
======== =======
Basic and diluted per share data:
Net loss before discontinued operations (0.38) (0.45)
Income (loss) from discontinued operations 0.20 0.01
-------- -------
Net loss (0.18) (0.43)
======== =======
-------------------
Twelve Months Ended
December 31,
-------------------
2002 2001
-------- --------
REVENUES:
Rental revenue $ 38,043 $ 7,274
Interest and other income 209 161
-------- --------
Total revenues 38,252 7,435
EXPENSES:
Property operating expense 14,763 2,990
General and administrative 8,586 2,863
Depreciation and amortization 11,691 2,123
Interest expense 13,779 2,409
Litigation settlement 1,200 -
Impairment of real estate assets 4,746 -
-------- --------
Total expenses 54,765 10,385
OTHER INCOME:
Net gain on sales of real estate assets (47) -
Net loss on extinguishment of debt (53) 314
Income from investment in unconsolidated joint
venture - 394
-------- --------
Total other (loss) income (100) 708
-------- --------
Net loss before income tax benefit, minority
interest and discontinued operations (16,613) (2,242)
Income tax benefit 7,083 -
-------- --------
Net loss before minority interest and discontinued
operations (9,530) (2,242)
Minority interest 935 267
-------- --------
Net loss before discontinued operations (8,595) (1,975)
Income (loss) from discontinued operations 1,465 (63)
-------- --------
Net loss (7,130) (2,038)
======== ========
Basic and diluted per share data:
Net loss before discontinued operations (1.55) (0.36)
Income (loss) from discontinued operations 0.26 (0.01)
-------- --------
Net loss (1.29) (0.37)
======== ========
AMERICAN SPECTRUM REALTY, INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands)
-------- ----------
Dec. 31, Dec. 31,
2002 2001
--------- ---------
Real estate held for investment, net $ 236,890 $ 237,285
Real estate assets held for sale 1,374 12,797
Cash 788 2,284
Total assets 253,557 266,205
Notes payable, net of premiums 182,281 167,638
Total liabilities 213,081 202,185
Total stockholders' equity 30,857 53,104
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