SOURCE: Resource America, Inc.

Resource America, Inc.

March 04, 2015 20:46 ET

Resource America, Inc. Reports Operating Results for the Fourth Quarter and Year Ended December 31, 2014

PHILADELPHIA, PA--(Marketwired - Mar 4, 2015) - Resource America, Inc. (NASDAQ: REXI)

Fourth Quarter 2014 Highlights

  • Adjusted net income attributable to common shareholders of $2.1 million (see Schedule I)

  • Increased gross assets under management by 17% to $20.2 billion since December 31, 2013

    • Gross real estate assets under management increased 35% to $3.4 billion

    • Gross financial fund management assets under management increased 14% to $16.1 billion

    • Net assets under management increased 22% to $9.7 billion

  • Book value per common share of $7.47

  • Repurchased 239,790 shares at $9.31

Fourth Quarter 2014 Results

Resource America, Inc. (NASDAQ: REXI) (the "Company")  reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $2.1 million, or $0.09 per common share-diluted, and $12.1 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to adjusted net income attributable to common shareholders of $3.5 million, or $0.16 per common share-diluted, and $11.8 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2013, respectively. A reconciliation of the Company's reported GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders, a non-GAAP measure, is included as Schedule I to this release.

The Company reported GAAP net income attributable to common shareholders of $1.7 million, or $0.08 per common share-diluted, and $7.0 million, or $0.31 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to GAAP net income attributable to common shareholders of $1.4 million, or $0.06 per common share-diluted, and $6.4 million, or $0.29 per common share-diluted, for the three months and year ended December 31, 2013.

Assets Under Management

The following table details the Company's assets under management by operating segment which, in gross, increased by $2.9 billion (17%) from December 31, 2013 to 2014 (in billions):

   
  December 31,
  2014   2013
Financial fund management $ 16.1   $ 14.2
Real estate   3.4     2.5
Commercial finance   0.7     0.6
  $ 20.2   $ 17.3
           
  Net assets under management (1) $ 9.7   $ 7.9
             
(1) Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements.
   

A description of how the Company calculates assets under management is set forth in Item 1 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Highlights for the Fourth Quarter and Year Ended December 31, 2014 and Recent Developments

REAL ESTATE ASSET MANAGEMENT:

Equity Asset Management

Resource Real Estate Opportunity REIT, Inc. ("Opportunity REIT I"), a public non-traded real estate investment trust ("REIT") managed by the Company which specializes in acquiring and managing distressed real estate assets, had the following highlights:

  • Increased total assets to $978.4 million at December 31, 2014, an increase of $299.8 million, or 44%, from $678.6 million at December 31, 2013.

  • Acquired $19.9 million and $427.0 million of multifamily assets and placed financing of $57.3 million and $347.8 million during the three months and year ended December 31, 2014. In addition, disposed of $30.1 million of multifamily assets during the year ended December 31, 2014.

  • In October 2014, the Board of Directors of Opportunity REIT I authorized a 50% increase to the annual distribution rate to 6% from 4%.

Resource Real Estate Opportunity REIT II, Inc. ("Opportunity REIT II"), a public non-traded real estate investment trust ("REIT") managed by the Company, commenced its initial public offering in early 2014. Opportunity REIT II is offering up to $1.0 billion in common stock and specializes in acquiring multifamily rental properties and selected loans. Opportunity REIT II had the following highlights:

  • Raised $47.2 million as of December 31, 2014 and $90.4 million through March 3, 2015.

  • Acquired $54.3 million and $67.0 million of multifamily assets and placed financing of $31.1 million and $38.5 during the three months and year ended December 31, 2014.

Debt Asset Management

Resource Capital Corp. ("RSO"), a publicly-traded REIT managed by the Company which focuses on commercial real estate assets, had the following highlights:

  • Originated $302.3 million and $777.3 million in new commercial real estate loans during the three months and year ended December 31, 2014.

  • During the three months and year ended December 31, 2014, raised $25.5 million and $202.7 million in equity capital through its DRIP and preferred equity programs.

  • In October 2014, RSO's Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock.

  • In January 2015, completed a $100.0 million public offering of its 8.00% convertible senior notes due 2020.

  • In February 2015, completed a $346.2 million commercial real estate securitization that issued $282.1 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.90%.

The following additional highlight contributed to our real estate asset management operations:

  • The Company's real estate operating segment increased its gross assets under management at December 31, 2014 to $3.4 billion, an increase of $865.0 million, or 35%, from December 31, 2013.

FINANCIAL FUND MANAGEMENT:

Credit Asset Management

CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture, closed Apidos CLO XIX, Ltd. (issuing notes with a par value of $500.0 million) and CVC Cordatus Loan Fund IV Limited (issuing notes with a par of EUR400.0 million) during the quarter. In February 2015, CCP closed Apidos CLO XX, Ltd. (issuing notes with a par value of $500.0 million). Since creating this joint venture in April 2012, CCP has closed 13 collateralized loan obligation issuers (issuing notes with a total par value of $6.8 billion) and expects to receive approximately $31.8 million in fees on an annual run rate basis. The Company has a 33% interest in this joint venture.

The following additional highlights contributed to our financial fund asset management operations:

  • The Company's financial fund management operating segment increased its gross assets under management at December 31, 2014 to $16.1 billion, an increase of $1.9 billion, or 14%, from December 31, 2013.

  • Financial fund management revenues increased 68% and 44%, to $7.6 million and $28.4 million, for the three months and year ended December 31, 2014, respectively, as compared to $4.5 million and $19.8 million for the three months and year ended December 31, 2013, respectively.

CORPORATE/OTHER:

Share Repurchases

  • In September 2014, the Company's Board of Directors authorized the Company to repurchase up to an additional 1.5 million shares of its outstanding common stock.

  • The Company repurchased 239,790 of its shares during the fourth quarter ended December 31, 2014 at an average price of $9.31 per share.

Dividends

  • The Company's Board of Directors authorized a cash dividend of $0.06 per share on the Company's common stock which was paid on January 30, 2015 to holders of record as of the close of business on January 16, 2015. 

  • RSO's Board of Directors declared a cash dividend of $0.20 per common share for its three months ended December 31, 2014.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities for its own account, for its joint ventures, and for outside investors in the real estate, financial fund management and commercial finance sectors.

For more information, please visit our website at www.resourceamerica.com or contact investor relations at pkamdar@resourceamerica.com.

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release and its other reports filed with the Securities and Exchange Commission, or SEC. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1A of the Company's Annual Report on Form 10-K and in other of its public filings with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events except as may be required by law.

A registration statement relating to securities offered by Opportunity REIT II was declared effective by the SEC on February 6, 2014. A written prospectus relating to these securities may be obtained by contacting Resource Securities, Inc., 1845 Walnut Street, 18th Floor, Philadelphia, PA 19103.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The remainder of this release contains the Company's unaudited consolidated balance sheets, consolidated statements of operations, consolidating statements of operations and reconciliation of GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders.

   
RESOURCE AMERICA, INC  
CONSOLIDATED BALANCE SHEETS  
(in thousands, except share data)  
(unaudited)  
   
  December 31,  
  2014     2013  
               
ASSETS              
  Cash $ 28,031     $ 19,853  
  Restricted cash   725       571  
  Receivables   636       541  
  Loans and receivables from managed entities and related parties, net   30,303       30,923  
  Investments in real estate, net   17,097       17,696  
  Investment securities, at fair value   9,540       7,839  
  Investments in unconsolidated loan manager   39,655       37,821  
  Investments in unconsolidated entities   13,089       14,342  
  Assets of consolidated variable interest entity ("VIE") - RSO              
    Cash and cash equivalents (including restricted cash)   202,043       325,579  
    Investments, at fair value   296,506       221,395  
    Loans   2,038,435       1,397,458  
    Investments in real estate and unconsolidated entities   60,007       129,562  
    Other assets   131,481       76,467  
      Total assets of consolidated VIE - RSO   2,728,472       2,150,461  
               
  Property and equipment, net   5,063       5,844  
  Deferred tax assets, net   23,304       27,769  
    Other assets   5,416       4,791  
  Total assets $ 2,901,331     $ 2,318,451  
               
LIABILITIES AND EQUITY              
Liabilities:              
  Accrued expenses and other liabilities $ 22,279     $ 22,134  
  Payables to managed entities and related parties   3,504       3,110  
  Borrowings   20,412       20,619  
  Liabilities of consolidated VIE - RSO              
    Borrowings   1,717,132       1,320,015  
    Other liabilities   57,561       55,247  
    Total liabilities of consolidated VIE - RSO   1,774,693       1,375,262  
      Total liabilities   1,820,888       1,421,125  
               
Commitments and contingencies              
               
Equity:              
  Preferred stock, $1.00 par value, 1,000,000 shares authorized; none outstanding   -       -  
  Common stock, $.01 par value, 49,000,000 shares authorized;34,489,568 and 30,378,339 shares issued (including nonvested restricted stock of 833,082 and 400,194), respectively   335       299  
  Additional paid-in capital   308,134       288,555  
  Accumulated deficit   (23,663 )     (26,025 )
  Treasury stock, at cost; 11,764,417 and 10,434,436 shares, respectively   (120,182 )     (107,874 )
  Accumulated other comprehensive loss   (1,030 )     (1,231 )
    Total stockholders' equity   163,594       153,724  
  Noncontrolling interests   306       238  
  Noncontrolling interests attributable to RSO   916,543       743,364  
    Total equity   1,080,443       897,326  
  $ 2,901,331     $ 2,318,451  
               
               
               
RESOURCE AMERICA, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share data)  
(unaudited)  
   
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
REVENUES:                                
Real estate (includes revenues of $2,721, $2,806, $10,349 and $12,600 related to RSO)   $ 13,849     $ 17,700     $ 54,861     $ 57,143  
Financial fund management (includes revenues of $498, $400, $2,983 and $1,120 related to RSO)     7,627       4,539       28,400       19,773  
Commercial finance (no revenues related to RSO)     (6 )     (98 )     (164 )     (341 )
      21,470       22,141       83,097       76,575  
Revenues from consolidated VIE - RSO     24,563       4,232       99,446       82,983  
Elimination of consolidated VIE - RSO revenues attributed to operating segments     (3,208 )     (3,226 )     (13,264 )     (13,834 )
  Total revenues     42,825       23,147       169,279       145,724  
COSTS AND EXPENSES:                                
Real estate     10,047       11,098       37,411       40,612  
Financial fund management     4,844       2,386       14,824       10,155  
Commercial finance     396       155       979       56  
General and administrative     3,041       3,461       11,118       10,268  
Provision for credit losses     (284 )     472       3,058       4,265  
Depreciation and amortization     450       618       1,819       1,936  
      18,494       18,190       69,209       67,292  
Expenses from consolidated VIE - RSO     21,411       17,889       64,995       60,999  
Elimination of consolidated VIE expenses attributed to operating segments     (3,227 )     (3,037 )     (12,601 )     (13,215 )
  Total expenses     36,678       33,042       121,603       115,076  
OPERATING INCOME (LOSS)     6,147       (9,895 )     47,676       30,648  
                                 
OTHER INCOME (EXPENSE):                                
Gain on sale of investment securities, net     6       -       445       -  
Other-than-temporary impairment on investments     -       -       -       (214 )
Interest expense     (458 )     (511 )     (1,905 )     (2,036 )
Other income, net     (20 )     175       243       575  
Other income, net, from consolidated VIE - RSO     7,978       9,561       25,505       23,428  
Elimination of consolidated VIE other income attributed to operating segments     11       20       51       244  
      7,517       9,245       24,339       21,997  
Income (loss) from continuing operations before taxes     13,664       (650 )     72,015       52,645  
Income tax provision     862       2,053       5,853       1,657  
Income tax benefit - RSO     (1,545 )     (5,262 )     (2,212 )     (1,041 )
Income from continuing operations     14,347       2,559       68,374       52,029  
Loss from discontinued operations, net of tax     -       -       -       (2 )
Net income     14,347       2,559       68,374       52,027  
Net (income) loss attributable to noncontrolling interest     (56 )     3       (89 )     (20 )
Net income attributable to noncontrolling interests of consolidated VIE - RSO     (12,547 )     (1,187 )     (61,317 )     (45,581 )
Net income attributable to common shareholders   $ 1,744     $ 1,375     $ 6,968     $ 6,426  
                                 
Amounts attributable to common shareholders:                                
Income from continuing operations   $ 1,744     $ 1,375     $ 6,968     $ 6,428  
Discontinued operations     -       -       -       (2 )
Net income   $ 1,744     $ 1,375     $ 6,968     $ 6,426  
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued)  
(in thousands, except per share data)  
(unaudited)  
                                 
    Three Months Ended     Years Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
Basic earnings per share:                                
Continuing operations   $ 0.08     $ 0.07     $ 0.33     $ 0.32  
Discontinued operations     -       -       -       -  
Net income   $ 0.08     $ 0.07     $ 0.33     $ 0.32  
Weighted average shares outstanding     22,817       20,104       21,148       20,217  
                                 
Diluted earnings per share:                                
Continuing operations   $ 0.08     $ 0.06     $ 0.31     $ 0.29  
Discontinued operations     -       -       -       -  
Net income   $ 0.08     $ 0.06     $ 0.31     $ 0.29  
Weighted average shares outstanding     23,094       21,828       22,371       21,905  
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENTS OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the fourth quarter ended December 31, 2014:  
   
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 13,849     $ -     $ -     $ 13,849  
Financial fund management   7,627       -       -       7,627  
Commercial finance   (6 )     -       -       (6 )
    21,470       -       -       21,470  
Revenues from consolidated VIE - RSO   -       24,563       -       24,563  
Elimination of consolidated VIE revenues attributed to operating segments   -       -       (3,208 )     (3,208 )
  Total revenues   21,470       24,563       (3,208 )     42,825  
                               
COSTS AND EXPENSES:                              
Real estate   10,047       -       -       10,047  
Financial fund management   4,844       -       -       4,844  
Commercial finance   396       -       -       396  
General and administrative   3,041       -       -       3,041  
Provision for credit losses   (284 )     -       -       (284 )
Depreciation and amortization   450       -       -       450  
    18,494       -       -       18,494  
Expenses from consolidated VIE - RSO   -       19,866       1,545       21,411  
Elimination of consolidated VIE expenses attributed to operating segments   -       -       (3,227 )     (3,227 )
  Total expenses   18,494       19,866       (1,682 )     36,678  
OPERATING INCOME   2,976       4,697       (1,526 )     6,147  
                               
OTHER INCOME (EXPENSE):                              
Gain on sale of investment securities, net   6       -       -       6  
Interest expense   (458 )     -       -       (458 )
Other income, net   553       -       (573 )     (20 )
Other income, net, from consolidated VIE - RSO   -       7,978       -       7,978  
Elimination of consolidated VIE other income, net   -       -       11       11  
    101       7,978       (562 )     7,517  
Income before taxes   3,077       12,675       (2,088 )     13,664  
Income tax provision (benefit)   862       -       (1,545 )     (683 )
Net income   2,215       12,675       (543 )     14,347  
Net income attributable to noncontrolling interests   (56 )     -       -       (56 )
Net income attributable to noncontrolling interests - RSO   -       (5,769 )     (6,778 )     (12,547 )
Net income attributable to common shareholders $ 2,159     $ 6,906     $ (7,321 )   $ 1,744  
                               
                               
                               
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENTS OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the fourth quarter ended December 31, 2013:  
   
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 17,700     $ -     $ -     $ 17,700  
Financial fund management   4,539       -       -       4,539  
Commercial finance   (98 )     -       -       (98 )
    22,141       -       -       22,141  
Revenues from consolidated VIE - RSO   -       4,232       -       4,232  
Elimination of consolidated VIE revenues attributed to operating segments   -       -       (3,226 )     (3,226 )
Total revenues   22,141       4,232       (3,226 )     23,147  
                               
COSTS AND EXPENSES:                              
Real estate   11,098       -       -       11,098  
Financial fund management   2,386       -       -       2,386  
Commercial finance   155       -       -       155  
General and administrative   3,461       -       -       3,461  
Provision for credit losses   472       -       -       472  
Depreciation and amortization   618       -       -       618  
    18,190       -       -       18,190  
Expenses from consolidated VIE - RSO   -       12,627       5,262       17,889  
Elimination of consolidated VIE expenses attributed to operating segments   -       -       (3,037 )     (3,037 )
Total expenses   18,190       12,627       2,225       33,042  
OPERATING INCOME (LOSS)   3,951       (8,395 )     (5,451 )     (9,895 )
                               
OTHER INCOME (EXPENSE):                              
Interest expense   (511 )     -       -       (511 )
Other income, net   747       -       (572 )     175  
Other income, net, from consolidated VIE - RSO   -       9,561       -       9,561  
Elimination of consolidated VIE other income, net   -       -       20       20  
    236       9,561       (552 )     9,245  
Income before taxes   4,187       1,166       (6,003 )     (650 )
Income tax provision (benefit)   2,053       -       (5,262 )     (3,209 )
Net income   2,134       1,166       (741 )     2,559  
Net loss attributable to noncontrolling interests   3       -       -       3  
Net income attributable to noncontrolling interests - RSO   -       (2,114 )     927       (1,187 )
Net income (loss) attributable to common shareholders $ 2,137     $ (948 )   $ 186     $ 1,375  
                               
                               
                               
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENTS OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the year ended December 31, 2014:  
   
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 54,861     $ -     $ -     $ 54,861  
Financial fund management   28,400       -       -       28,400  
Commercial finance   (164 )     -       -       (164 )
    83,097       -       -       83,097  
Revenues from consolidated VIE - RSO   -       99,446       -       99,446  
Elimination of consolidated VIE - RSO revenues attributed to operating segments   -       -       (13,264 )     (13,264 )
  Total revenues   83,097       99,446       (13,264 )     169,279  
                               
COSTS AND EXPENSES:                              
Real estate   37,411       -       -       37,411  
Financial fund management   14,824       -       -       14,824  
Commercial finance   979       -       -       979  
General and administrative   11,118       -       -       11,118  
Provision for credit losses   3,058       -       -       3,058  
Depreciation and amortization   1,819       -       -       1,819  
    69,209       -       -       69,209  
Expenses from consolidated VIE - RSO   -       62,783       2,212       64,995  
Elimination of consolidated VIE - RSO expenses attributed to operating segments   -       -       (12,601 )     (12,601 )
  Total expenses   69,209       62,783       (10,389 )     121,603  
OPERATING INCOME   13,888       36,663       (2,875 )     47,676  
                               
OTHER INCOME (EXPENSE):                              
Gain on sale of investment securities, net   445       -       -       445  
Interest expense   (1,905 )     -       -       (1,905 )
Other income, net   2,532       -       (2,289 )     243  
Other income, net, from consolidated VIE - RSO   -       25,505       -       25,505  
Elimination of consolidated VIE -RSO other income, net   -       -       51       51  
    1,072       25,505       (2,238 )     24,339  
Income from operations before taxes   14,960       62,168       (5,113 )     72,015  
Income tax provision   5,853       -       (2,212 )     3,641  
Net income   9,107       62,168       (2,901 )     68,374  
Net income attributable to noncontrolling interests   (89 )     -       -       (89 )
Net income attributable to noncontrolling interests - RSO   -       (18,141 )     (43,176 )     (61,317 )
Net income attributable to common shareholders $ 9,018     $ 44,027     $ (46,077 )   $ 6,968  
                               
                               
                               
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENTS OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the year ended December 31, 2013:  
   
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 57,143     $ -     $ -     $ 57,143  
Financial fund management   19,773       -       -       19,773  
Commercial finance   (341 )     -       -       (341 )
    76,575       -       -       76,575  
Revenues from consolidated VIE - RSO   -       82,983       -       82,983  
Elimination of consolidated VIE revenues attributed to operating segments   -       -       (13,834 )     (13,834 )
Total revenues   76,575       82,983       (13,834 )     145,724  
COSTS AND EXPENSES:                              
Real estate   40,612       -       -       40,612  
Financial fund management   10,155       -       -       10,155  
Commercial finance   56       -       -       56  
General and administrative   10,268       -       -       10,268  
Provision for credit losses   4,265       -       -       4,265  
Depreciation and amortization   1,936       -       -       1,936  
    67,292       -       -       67,292  
Expenses from consolidated VIE - RSO   -       59,958       1,041       60,999  
Elimination of consolidated VIE expenses attributed to operating segments   -       -       (13,215 )     (13,215 )
Total expenses   67,292       59,958       (12,174 )     115,076  
OPERATING INCOME   9,283       23,025       (1,660 )     30,648  
                               
OTHER INCOME (EXPENSE):                              
Other-than-temporary impairment on investments   (214 )     -       -       (214 )
Interest expense   (2,036 )     -       -       (2,036 )
Other income, net   2,816       -       (2,241 )     575  
Other income, net, from consolidated VIE - RSO   -       23,428       -       23,428  
Elimination of consolidated VIE other income, net   -       -       244       244  
    566       23,428       (1,997 )     21,997  
Income from continuing operations before taxes   9,849       46,453       (3,657 )     52,645  
Income tax provision   1,657       -       (1,041 )     616  
Income from continuing operations   8,192       46,453       (2,616 )     52,029  
Loss from discontinued operations, net of tax   (2 )     -       -       (2 )
Net income   8,190       46,453       (2,616 )     52,027  
Net income attributable to noncontrolling interests   (20 )     -       -       (20 )
Net income attributable to noncontrolling interests - RSO   -       (7,221 )     (38,360 )     (45,581 )
Net income attributable to common shareholders $ 8,170     $ 39,232     $ (40,976 )   $ 6,426  
                               
                               
                               

Schedule I

   
   
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO  
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (1)  
(in thousands, except per share data)  
(unaudited)  
   
   
    Three Months Ended   Years Ended  
    December 31,   December 31,  
    2014     2013   2014   2013  
Net income attributable to common shareholders - GAAP   $ 1,744     $ 1,375   $ 6,968   $ 6,426  
                             
Adjustments, net of tax:                            
Loss, net of eliminations, attributable to consolidation of RSO     415       762     2,050     1,744  
Loss attributable to commercial finance     81       464     2,661     4,430  
Deferred tax (benefit) provision     (105 )     887     380     (805 )
Adjusted net income attributable to common shareholders   $ 2,135     $ 3,488   $ 12,059   $ 11,795  
                             
Adjusted weighted average diluted shares outstanding     23,094       21,828     22,371     21,905  
                             
Adjusted net income attributable to common shareholders per common per share-diluted   $ 0.09     $ 0.16   $ 0.54   $ 0.54  
   
(1) Adjusted net income attributable to common shareholders presents the Company's operations prior to the consolidation of RSO and without the effect of its commercial finance operations and deferred tax (benefit) provision. The Company believes that this provides useful information to investors since it allows investors to evaluate the Company's progress in both its real estate and financial fund management segments for the three months and year ended December 31, 2014 and 2013 separately from its commercial finance operations, RSO and deferred tax (benefit) provision. Adjusted net income attributable to common shareholders should not be considered as an alternative to net income attributable to common shareholders (computed in accordance with GAAP). Instead, adjusted net income attributable to common shareholders should be reviewed in connection with net income attributable to common shareholders in the Company's consolidated financial statements, to help analyze how the Company's business is performing.
   
   

Contact Information

  • Contact:
    Thomas C. Elliott
    Chief Financial Officer
    Resource America, Inc.
    One Crescent Drive, Suite 203
    Philadelphia, PA 19112
    (215) 546-5005
    (215) 640-6357 (fax)