AMREP Corp. (AXR, Financial) filed Quarterly Report for the period ended 2009-10-31.
AMREP CORP.is a real estate developer and builder of housing,national distributor of magazines and a provider of subscriptionfulfillment services for publishers. It is the developer and majorbuilder of single-family homes at Rio Rancho, New Mexico and morerecently has entered the Denver, Colorado home-building market. Amrep Corp. has a market cap of $87.3 million; its shares were traded at around $14.57 with and P/S ratio of 0.6. Amrep Corp. had an annual average earning growth of 20.5% over the past 10 years.
Developed
Residential 2.4 $ 775 $ 323 0.4 $ 86 $ 244
Commercial 1.7 895 526 - - -
- - - - - -
Total Developed 4.1 1,670 407 0.4 86 244
Undeveloped - - - 87.1 4,724 54
- - - - - -
Total 4.1 $ 1,670 $ 407 87.5 $ 4,810 $ 55
- - - - - -
Six months:
Developed
Residential 5.2 $ 1,445 $ 278 1.8 $ 428 $ 238
Commercial 1.7 895 526 1.0 126 126
- - - - - -
Total Developed 6.9 2,340 339 2.8 554 198
Undeveloped 26.0 815 31 131.9 5,519 42
- - - - - -
Total 32.9 $ 3,155 $ 96 134.7 $ 6,073 $ 45
- - - - - -
Revenues from Kable's Subscription Fulfillment Services operations decreased
from $31,334,000 and $61,176,000 for the second quarter and first six months of
2009 to $24,230,000 and $49,357,000 for the same periods of 2010 primarily due
to the industry factors noted above, partly offset by revenues from new and some
existing clients. Revenues from Kable's Newsstand Distribution Services
operations increased from $3,096,000 and $6,451,000 for the second quarter and
first six months of 2009 to $3,595,000 and $6,800,000 for the same periods of
2010 as a result of changes in product mix and magazine cover price increases.
The net decrease in the combined revenues from Subscription Fulfillment Services
and Newsstand Distribution Services was partly offset by increased revenues from
Kable's Product Fulfillment Services and Other business segment, which increased
from $824,000 and $1,650,000 for the second quarter and first six months of 2009
to $2,799,000 and $5,235,000 for the same periods in 2010, reflecting the
inclusion of the revenues of a product repackaging and fulfillment business and
a temporary staffing business which were acquired in the third quarter of 2009.
Kable's operating expenses decreased by $3,962,000 and $6,177,000 for the second
quarter and first six months of 2010 compared to the same periods in 2009,
primarily attributable to lower payroll and benefits costs and, to a lesser
extent, efficiencies related to the ongoing project to consolidate the
Subscription Fulfillment Services business from three locations in Colorado,
Florida and Illinois into one existing location at Palm Coast, Florida.
In 2009, the Company announced a project to consolidate its Subscription
Fulfillment Services business operations from three locations in Colorado,
Florida and Illinois into one existing location at Palm Coast, Florida, which is
expected to streamline operations, improve service to clients and create cost
efficiencies through reduced overhead costs and the elimination of operating
redundancies. This project, which is now well underway and is scheduled to be
substantially complete by October 31, 2010, is expected to require capital
expenditures of approximately $12,000,000 and may involve approximately
$7,000,000 of non-recurring cash costs for severance, training and transition,
facility closings and equipment relocation. As of October 31, 2009, the Company
has cumulatively incurred approximately $4,400,000 for capital expenditures and
$4,150,000 of non-recurring cash costs related to the consolidation project. The
State of Florida and the City of Palm Coast have agreed to provide incentives
for the project, including cash and employee training grants and tax relief,
which are largely contingent on existing job retention, new job creation and
capital investment. The Company recognized $21,000 and $81,000 of income for the
second quarter and first six months of 2010 for certain incentives related to
the consolidation project, which are netted against restructuring costs of
$1,085,000 and $1,973,000 for the same periods, principally for severance. As a
result, the Company reported net charges to operations of $1,064,000 and
$1,892,000 related to the consolidation project for the second quarter and first
six months of 2010 compared to net charges of $75,000 and $573,000 for the same
periods in 2009, principally for severance and consulting costs. There were no
incentives recognized in first six months of 2009. The items of income for
Real estate commissions and selling expenses for the second quarter and first
six months of 2010 were generally unchanged from the prior year periods, $84,000
and $165,000 compared to $91,000 and $169,000. Other operating expenses
increased $633,000 and $817,000 for the second quarter and first six months of
2010 compared to the same periods in 2009 primarily due to an increase in real
estate taxes at AMREP Southwest resulting from an increase in both tax rates and
assessed land values. Approximately $315,000 of the increase for the second
quarter and first six months of 2010 is attributable to the period prior to the
beginning of the second quarter. AMREP Southwest has filed an appeal related to
certain of the assessed land values that have contributed to the real estate tax
increase.
Notes payable $ 30,810 $ 26,188 $ 249 $ 225 $ 4,148
Operating leases and other 11,236 3,600 6,251 935 450
- - - - -
Total $ 42,046 $ 29,788 $ 6,500 $ 1,160 $ 4,598
= = = = =
Read the The complete ReportAXR is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
AMREP CORP.is a real estate developer and builder of housing,national distributor of magazines and a provider of subscriptionfulfillment services for publishers. It is the developer and majorbuilder of single-family homes at Rio Rancho, New Mexico and morerecently has entered the Denver, Colorado home-building market. Amrep Corp. has a market cap of $87.3 million; its shares were traded at around $14.57 with and P/S ratio of 0.6. Amrep Corp. had an annual average earning growth of 20.5% over the past 10 years.
Highlight of Business Operations:
Three months:Developed
Residential 2.4 $ 775 $ 323 0.4 $ 86 $ 244
Commercial 1.7 895 526 - - -
- - - - - -
Total Developed 4.1 1,670 407 0.4 86 244
Undeveloped - - - 87.1 4,724 54
- - - - - -
Total 4.1 $ 1,670 $ 407 87.5 $ 4,810 $ 55
- - - - - -
Six months:
Developed
Residential 5.2 $ 1,445 $ 278 1.8 $ 428 $ 238
Commercial 1.7 895 526 1.0 126 126
- - - - - -
Total Developed 6.9 2,340 339 2.8 554 198
Undeveloped 26.0 815 31 131.9 5,519 42
- - - - - -
Total 32.9 $ 3,155 $ 96 134.7 $ 6,073 $ 45
- - - - - -
Revenues from Kable's Subscription Fulfillment Services operations decreased
from $31,334,000 and $61,176,000 for the second quarter and first six months of
2009 to $24,230,000 and $49,357,000 for the same periods of 2010 primarily due
to the industry factors noted above, partly offset by revenues from new and some
existing clients. Revenues from Kable's Newsstand Distribution Services
operations increased from $3,096,000 and $6,451,000 for the second quarter and
first six months of 2009 to $3,595,000 and $6,800,000 for the same periods of
2010 as a result of changes in product mix and magazine cover price increases.
The net decrease in the combined revenues from Subscription Fulfillment Services
and Newsstand Distribution Services was partly offset by increased revenues from
Kable's Product Fulfillment Services and Other business segment, which increased
from $824,000 and $1,650,000 for the second quarter and first six months of 2009
to $2,799,000 and $5,235,000 for the same periods in 2010, reflecting the
inclusion of the revenues of a product repackaging and fulfillment business and
a temporary staffing business which were acquired in the third quarter of 2009.
Kable's operating expenses decreased by $3,962,000 and $6,177,000 for the second
quarter and first six months of 2010 compared to the same periods in 2009,
primarily attributable to lower payroll and benefits costs and, to a lesser
extent, efficiencies related to the ongoing project to consolidate the
Subscription Fulfillment Services business from three locations in Colorado,
Florida and Illinois into one existing location at Palm Coast, Florida.
In 2009, the Company announced a project to consolidate its Subscription
Fulfillment Services business operations from three locations in Colorado,
Florida and Illinois into one existing location at Palm Coast, Florida, which is
expected to streamline operations, improve service to clients and create cost
efficiencies through reduced overhead costs and the elimination of operating
redundancies. This project, which is now well underway and is scheduled to be
substantially complete by October 31, 2010, is expected to require capital
expenditures of approximately $12,000,000 and may involve approximately
$7,000,000 of non-recurring cash costs for severance, training and transition,
facility closings and equipment relocation. As of October 31, 2009, the Company
has cumulatively incurred approximately $4,400,000 for capital expenditures and
$4,150,000 of non-recurring cash costs related to the consolidation project. The
State of Florida and the City of Palm Coast have agreed to provide incentives
for the project, including cash and employee training grants and tax relief,
which are largely contingent on existing job retention, new job creation and
capital investment. The Company recognized $21,000 and $81,000 of income for the
second quarter and first six months of 2010 for certain incentives related to
the consolidation project, which are netted against restructuring costs of
$1,085,000 and $1,973,000 for the same periods, principally for severance. As a
result, the Company reported net charges to operations of $1,064,000 and
$1,892,000 related to the consolidation project for the second quarter and first
six months of 2010 compared to net charges of $75,000 and $573,000 for the same
periods in 2009, principally for severance and consulting costs. There were no
incentives recognized in first six months of 2009. The items of income for
Real estate commissions and selling expenses for the second quarter and first
six months of 2010 were generally unchanged from the prior year periods, $84,000
and $165,000 compared to $91,000 and $169,000. Other operating expenses
increased $633,000 and $817,000 for the second quarter and first six months of
2010 compared to the same periods in 2009 primarily due to an increase in real
estate taxes at AMREP Southwest resulting from an increase in both tax rates and
assessed land values. Approximately $315,000 of the increase for the second
quarter and first six months of 2010 is attributable to the period prior to the
beginning of the second quarter. AMREP Southwest has filed an appeal related to
certain of the assessed land values that have contributed to the real estate tax
increase.
Notes payable $ 30,810 $ 26,188 $ 249 $ 225 $ 4,148
Operating leases and other 11,236 3,600 6,251 935 450
- - - - -
Total $ 42,046 $ 29,788 $ 6,500 $ 1,160 $ 4,598
= = = = =
Read the The complete ReportAXR is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
