PRINCETON, N.J., Dec. 12, 2012 /PRNewswire/ -- AMREP
Corporation (NYSE: AXR) today reported net income of $276,000, or $0.05
per share, for its fiscal 2013 second quarter ended October 31, 2012 compared to net income of
$1,083,000, or $0.18 per share, for its fiscal 2012 second
quarter ended October 31, 2011.
For the first six months of fiscal 2013, the Company had a net loss
of $332,000, or $0.06 per share, compared to net income of
$804,000, or $0.13 per share, for the same period of fiscal
2012. Revenues were $21,317,000
and $40,913,000 for the second
quarter and first six months of 2013 versus $23,351,000 and $44,844,000 for the same periods last year.
Revenues from Media Services operations, which include
Subscription Fulfillment Services operations conducted by the
Company's Palm Coast Data subsidiary and Newsstand Distribution and
Product Services and other operations conducted by its Kable Media
Services subsidiary, decreased from $22,020,000 and $43,396,000 for the second quarter and first six
months of 2012 to $21,266,000 and
$40,854,000 for the same periods in
2013. Magazine publishers are the principal customers of
these businesses, and they have continued to be negatively impacted
by increased competition from new media sources and weakness in the
U.S. economy. The result has been reduced subscription and
newsstand sales, which has caused publishers to close some magazine
titles and seek more favorable terms from Palm Coast and Kable and
their competitors when contracts are up for bid or renewal.
As a consequence of these and other factors, including customer
losses, revenues from Subscription Fulfillment Services operations
decreased from $16,510,000 and
$33,186,000 for the second quarter
and first six months of 2012 to $14,456,000 and $28,058,000 for the same periods of 2013, while
revenues from Newsstand Distribution Services operations decreased
from $2,552,000 and $4,899,000 for the second quarter and first six
months of 2012 to $2,287,000 and
$4,626,000 for the same periods of
2013. Revenues from Kable's Product Services and other operations
increased from $2,958,000 and
$5,312,000 for the second quarter and
first six months of 2012 to $4,523,000 and $8,170,000 for the same periods of 2013,
reflecting revenue increases in both the product services and
temporary staffing businesses. Media Services operating and
general and administrative expenses decreased by $387,000 and $1,972,000 for the second quarter and first six
months of 2013 compared to the same periods in 2012, with reduced
facilities and equipment expense, including depreciation, being an
important factor in both periods.
There were no revenues from land sales at the Company's AMREP
Southwest subsidiary during the three and six month periods ended
October 31, 2012 compared to revenues
of $1,327,000 and $1,435,000 for the same periods of the prior
year. Results for both the 2013 and 2012 periods were substantially
lower than the Company experienced prior to fiscal 2009 in its
principal market of Rio Rancho, New
Mexico, due to the severe decline in the real estate market
in the greater Albuquerque-metro
and Rio Rancho areas that began
late in fiscal 2008. Revenues, gross profits and related
gross profit percentages from land sales can vary significantly
from period to period as a result of many factors, including the
nature and timing of specific transactions, and prior results are
not necessarily a good indication of what may occur in future
periods.
AMREP Corporation's Media Services operations, conducted by its
Kable Media Services, Inc. and Palm Coast Data LLC subsidiaries,
distribute magazines to wholesalers and provide subscription and
product fulfillment and related services to publishers and others,
and its AMREP Southwest Inc. subsidiary is a major landholder and
leading developer of real estate in New
Mexico.
AMREP
Corporation and Subsidiaries Financial
Highlights (Unaudited)
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Three
Months Ended October 31,
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2012
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2011
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|
|
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Revenues
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$
21,317,000
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$
23,351,000
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Net
income
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$
276,000
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$
1,083,000
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Earnings
per share – Basic and
Diluted
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$
0.05
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$
0.18
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Weighted
average number of common shares outstanding
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5,996,000
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5,996,000
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|
|
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Six Months
Ended October 31,
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2012
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2011
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Revenues
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$
40,913,000
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$
44,844,000
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Net income
(loss)
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$
(332,000)
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$
804,000
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Earnings
(loss) per share – Basic and
Diluted
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$
(0.06)
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$
0.13
|
|
|
|
|
|
Weighted
average number of common shares outstanding
|
|
5,996,000
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5,996,000
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SOURCE AMREP Corporation