SOURCE: Resource America, Inc.

Resource America, Inc.

August 06, 2014 19:12 ET

Resource America, Inc. Reports Operating Results for the Second Quarter Ended June 30, 2014

PHILADELPHIA, PA--(Marketwired - Aug 6, 2014) - Resource America, Inc. (NASDAQ: REXI)

Second Quarter 2014 Highlights

  • Adjusted net income attributable to common shareholders of $4.6 million (see Schedule I)
  • Stand-alone operating income of $4.8 million as compared to a $97,000 loss for the prior year period
  • Increased gross assets under management by 17% to $18.9 billion since June 30, 2013
  • Book value per common share of $7.88

Second Quarter 2014 Results

Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $4.6 million, or $0.21 per common share-diluted, and $7.0 million, or $0.32 per common share-diluted, for the three and six months ended June 30, 2014 as compared to adjusted net income attributable to common shareholders of $502,000, or $0.02 per common share-diluted, and $3.0 million, or $0.14 per common share-diluted, for the three and six months ended June 30, 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 $2.7 million, or $0.12 per common share-diluted, and $3.7 million, or $0.17 per common share-diluted, for the three and six months ended June 30, 2014, respectively, as compared to GAAP net income attributable to common shareholders of $1.1 million, or $0.05 per common share-diluted, and $1.6 million, or $0.07 per common share-diluted, for the three and six months ended June 30, 2013, respectively. 

Assets Under Management

The following table details the Company's gross assets under management by operating segment, which increased by $2.8 billion (17%) from June 30, 2013 to 2014 (in billions):

   
  June 30,
  2014   2013
Financial fund management $ 15.5   $ 13.6
Real estate   2.8     1.9
Commercial finance   0.6     0.6
  $ 18.9   $ 16.1
           
  Net assets under management (1) $ 8.8   $ 7.1
   
(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 year ended December 31, 2013.

Highlights for the Second Quarter Ended June 30, 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 $951.2 million at June 30, 2014, an increase of $662.4 million, or 229%, from $288.8 million at June 30, 2013.
  • Acquired four multifamily assets for $112.4 million, placed $120.4 million of financing on these assets and disposed of one additional asset for $10.5 million during the three months ended June 30, 2014. 

In February 2014, Resource Real Estate Opportunity REIT II, Inc. ("Opportunity REIT II") commenced its initial public offering of common stock and will focus on acquiring multifamily rental properties and selected loans. Opportunity REIT II is offering up to $1 billion in common stock at a maximum price of $10 per share. The Company is the external manager. Through August 5, 2014, Opportunity REIT II has raised $8.1 million.

  • In June 2014, Opportunity REIT II acquired its first asset, a multifamily apartment complex, for $9.5 million, financing $7.5 million of the purchase price. 

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:

  • During the quarter, raised $147.7 million in equity capital, including $116.2 million, net of underwriting discounts and expenses, in connection with the June 2014 Series C preferred stock offering of 4.8 million shares at a net price of $24.2125 (8.625% coupon) per share.
  • Originated $181.0 million of commercial real estate whole loans during the three months ended June 30, 2014.
  • In July 2014, completed a $354.0 million commercial real estate securitization that issued $235.0 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.29%.

The following additional highlights contributed to the Company's real estate asset management operations:

  • The Company's real estate operating segment increased its assets under management at June 30, 2014 to $2.8 billion, an increase of $908.7 million, or 47%, from June 30, 2013.
  • Real estate revenues increased 11% and 14% to $13.4 million and $26.7 million, for the three and six months ended June 30, 2014, respectively, as compared to $12.2 million and $23.5 million for the three and six months ended June 30, 2013, respectively. 

FINANCIAL FUND MANAGEMENT:

Credit Asset Management

CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture, closed Apidos CLO XVII, Ltd. (issuing notes with a par value of $500.0 million), Apidos CLO XVIII, Ltd. (issuing notes with a par value of $700.0 million) and CVC Cordatus Loan Fund III Limited (issuing notes with a par value of EUR 436.0 million). Since creating this joint venture in April 2012, CCP has closed 10 collateralized loan obligation issuers (issuing notes with a total par value of $5.3 billion) and expects to receive approximately $24.9 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 the Company's financial fund asset management operations:

  • The Company's financial fund management operating segment increased its assets under management at June 30, 2014 to $15.5 billion, an increase of $1.9 billion, or 13%, from June 30, 2013.
  • Financial fund management revenues increased 233% and 126% to $8.1 million and $15.2 million, for the three and six months ended June 30, 2014, respectively, as compared to $2.4 million and $6.7 million for the three and six months ended June 30, 2013, respectively.

CORPORATE/OTHER:

Corporate Credit Facility Modification

  • In April 2014, the Company increased its revolving credit facility with TD Bank, N.A. to $11.5 million and extended the maturity from December 2014 to December 2017.

Share Repurchases

  • The Company repurchased 233,891 of its shares during the second quarter ended June 30, 2014 at an average price of $8.91 per share.

Dividends

  • The Company's Board of Directors authorized a cash dividend of $0.05 per share on the Company's common stock paid on July 31, 2014 to holders of record as of the close of business on July 17, 2014. 
  • RSO's Board of Directors declared a cash dividend of $0.20 per common share for its quarter ended June 30, 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, 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)  
   
  June 30,
2014
    December 31,
2013
 
  (unaudited)        
ASSETS              
  Cash $ 11,858     $ 19,853  
  Restricted cash   654       571  
  Receivables   3,400       541  
  Loans and receivables from managed entities and related parties, net   32,586       30,923  
  Investments in real estate, net   17,084       17,696  
  Investment securities, at fair value   12,590       7,839  
  Investments in unconsolidated loan manager   38,461       37,821  
  Investments in unconsolidated entities   13,448       14,342  
  Assets of consolidated variable interest entity ("VIE") - RSO:              
    Cash and cash equivalents (including restricted cash)   313,528       325,579  
    Investments, at fair value   273,454       226,764  
    Loans   1,785,135       1,397,458  
    Investments in real estate and unconsolidated entities   89,989       124,193  
    Other assets   96,062       76,467  
      Total assets of consolidated VIE - RSO   2,558,168       2,150,461  
               
  Property and equipment, net   5,378       5,844  
  Deferred tax assets, net   24,607       27,769  
  Other assets   5,212       4,791  
    Total assets $ 2,723,446     $ 2,318,451  
               
LIABILITIES AND EQUITY              
Liabilities:              
  Accrued expenses and other liabilities $ 16,846     $ 22,134  
  Payables to managed entities and related parties   3,608       3,110  
  Borrowings   20,558       20,619  
  Liabilities of consolidated VIE - RSO:              
    Borrowings   1,579,985       1,320,015  
    Other liabilities   54,342       55,247  
    Total liabilities of consolidated VIE - RSO   1,634,327       1,375,262  
      Total liabilities   1,675,339       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; 31,111,667 and 30,378,339 shares issued (including nonvested restricted stock of 674,701 and 400,194), respectively   304       299  
  Additional paid-in capital   290,947       288,555  
  Accumulated deficit   (24,290 )     (26,025 )
  Treasury stock, at cost; 10,667,202 and 10,434,436 shares, respectively   (109,906 )     (107,874 )
  Accumulated other comprehensive loss   (1,257 )     (1,231 )
    Total stockholders' equity   155,798       153,724  
  Noncontrolling interests   306       238  
  Noncontrolling interests attributable to RSO   892,003       743,364  
    Total equity   1,048,107       897,326  
  $ 2,723,446     $ 2,318,451  
               
               
               
RESOURCE AMERICA, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share data)  
(unaudited)  
   
  Three Months Ended     Six Months Ended  
  June 30,     June 30,  
  2014     2013     2014     2013  
REVENUES:                              
Real estate (includes revenues of $2,302, $2,805, $4,985 and $5,093 related to RSO) $ 13,448     $ 12,153     $ 26,723     $ 23,493  
Financial fund management (includes revenues of $753, $(111), $960 and $270 related to RSO)   8,141       2,445       15,216       6,732  
Commercial finance (includes no revenue related to RSO)   (42 )     (35 )     (141 )     (213 )
    21,547       14,563       41,798       30,012  
Revenues from consolidated VIE - RSO   34,608       21,647       66,539       52,225  
Elimination of consolidated VIE revenues attributed to operating segments   (3,040 )     (2,725 )     (5,920 )     (5,425 )
  Total revenues   53,115       33,485       102,417       76,812  
COSTS AND EXPENSES:                              
Real estate   9,105       8,896       17,980       18,336  
Financial fund management   2,779       1,694       7,168       4,222  
Commercial finance   123       (219 )     226       (174 )
General and administrative   2,729       2,149       5,883       4,302  
Provision for credit losses   1,575       1,647       2,783       1,985  
Depreciation and amortization   465       489       916       905  
    16,776       14,656       34,956       29,576  
Expenses from consolidated VIE - RSO   19,861       11,368       32,985       27,556  
Elimination of consolidated VIE expenses attributed to operating segments   (3,053 )     (2,663 )     (5,872 )     (5,317 )
  Total expenses   33,584       23,361       62,069       51,815  
OPERATING INCOME   19,531       10,124       40,348       24,997  
                               
OTHER INCOME (EXPENSE):                              
Gain on sale of investment securities, net   370       --       370       --  
Other-than-temporary impairment on investments   --       --       --       (214 )
Interest expense   (497 )     (501 )     (980 )     (995 )
Other income, net   18       83       183       272  
    (109 )     (418 )     (427 )     (937 )
Other income, net, from consolidated VIE - RSO   2,509       --       1,178       --  
Elimination of consolidated VIE other income attributed to operating segments   11       31       29       62  
    2,411       (387 )     780       (875 )
Income from continuing operations before taxes   21,942       9,737       41,128       24,122  
Income tax provision (benefit)   2,181       (1,511 )     3,250       (1,657 )
Income tax (benefit) provision - RSO   (446 )     1,737       (430 )     3,499  
Income from continuing operations   20,207       9,511       38,308       22,280  
Loss from discontinued operations, net of tax   --       --       --       (2 )
Net income   20,207       9,511       38,308       22,278  
Net (income) loss attributable to noncontrolling interests   (84 )     (26 )     (44 )     17  
Net income attributable to noncontrolling interests of consolidated VIE - RSO   (17,405 )     (8,372 )     (34,556 )     (20,686 )
Net income attributable to common shareholders $ 2,718     $ 1,113     $ 3,708     $ 1,609  
Amounts attributable to common shareholders:                              
Income from continuing operations $ 2,718     $ 1,113     $ 3,708     $ 1,611  
Discontinued operations   --       --       --       (2 )
Net income $ 2,718     $ 1,113     $ 3,708     $ 1,609  
                               
Basic earnings per share:                              
Continuing operations $ 0.13     $ 0.05     $ 0.18     $ 0.08  
Discontinued operations   --       --       --       --  
Net income $ 0.13     $ 0.05     $ 0.18     $ 0.08  
Weighted average shares outstanding   20,386       20,297       20,320       20,219  
                               
Diluted earnings per share:                              
Continuing operations $ 0.12     $ 0.05     $ 0.17     $ 0.07  
Discontinued operations   --       --       --       --  
Net income $ 0.12     $ 0.05     $ 0.17     $ 0.07  
Weighted average shares outstanding   22,032       22,106       22,031       21,969  
 
 
 
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
 

 The following table presents the consolidating statement of operations for the three months ended June 30, 2014:

                   
  RAI     RSO     Eliminations    Consolidated 
REVENUES:                              
Real estate $ 13,448     $ --     $ --     $ 13,448  
Financial fund management   8,141       --       --       8,141  
Commercial finance   (42 )     --       --       (42 )
    21,547       --       --       21,547  
Revenues from consolidated VIE - RSO   --       34,608       --       34,608  
Elimination of consolidated VIE revenues attributed to operating segments   --       --       (3,040 )     (3,040 )
  Total revenues   21,547       34,608       (3,040 )     53,115  
COSTS AND EXPENSES:                              
Real estate   9,105       --       --       9,105  
Financial fund management   2,779       --       --       2,779  
Commercial finance   123       --       --       123  
General and administrative   2,729       --       --       2,729  
Provision for credit losses   1,575       --       --       1,575  
Depreciation and amortization   465       --       --       465  
    16,776       --       --       16,776  
Expenses of consolidated VIE - RSO   --       19,415       446       19,861  
Elimination of consolidated VIE expenses attributed to operating segments   --       --       (3,053 )     (3,053 )
  Total expenses   16,776       19,415       (2,607 )     33,584  
OPERATING INCOME   4,771       15,193       (433 )     19,531  
                               
OTHER INCOME (EXPENSE):                              
Gain on sale of investment securities, net   370       --       --       370  
Interest expense   (497 )     --       --       (497 )
Other income, net   590       --       (572 )     18  
Other income, net, from consolidated VIE - RSO   --       2,509       --       2,509  
Elimination of consolidated VIE other expense, net   --       --       11       11  
    463       2,509       (561 )     2,411  
Income from continuing operations before taxes   5,234       17,702       (994 )     21,942  
Income tax provision   2,181       --       (446 )     1,735  
Net income   3,053       17,702       (548 )     20,207  
Net income attributable to noncontrolling interests   (84 )     --       --       (84 )
Net income attributable to noncontrolling interests - RSO   --       (3,025 )     (14,380 )     (17,405 )
Net income attributable to common shareholders $ 2,969     $ 14,677     $ (14,928 )   $ 2,718  
 
 
 
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
 

 The following table presents the consolidating statement of operations for the three months ended June 30, 2013:

                   
  RAI     RSO     Eliminations   Consolidated
REVENUES:                              
Real estate $ 12,153     $ --     $ --     $ 12,153  
Financial fund management   2,445       --       --       2,445  
Commercial finance   (35 )     --       --       (35 )
    14,563       --       --       14,563  
Revenues from consolidated VIE - RSO   --       21,647       --       21,647  
Elimination of consolidated VIE revenues attributed to operating segments   --       --       (2,725 )     (2,725 )
  Total revenues   14,563       21,647       (2,725 )     33,485  
COSTS AND EXPENSES:                              
Real estate   8,896       --       --       8,896  
Financial fund management   1,694       --       --       1,694  
Commercial finance   (219 )     --       --       (219 )
General and administrative   2,153       --       (4 )     2,149  
Provision for credit losses   1,647       --       --       1,647  
Depreciation and amortization   489       --       --       489  
    14,660       --       (4 )     14,656  
Expenses of consolidated VIE - RSO   --       13,105       (1,737 )     11,368  
Elimination of consolidated VIE expenses attributed to operating segments   --       --       (2,663 )     (2,663 )
Total expenses   14,660       13,105       (4,404 )     23,361  
OPERATING (LOSS) INCOME   (97 )     8,542       1,679       10,124  
                               
OTHER INCOME (EXPENSE):                              
Interest expense   (501 )     --       --       (501 )
Other income, net   640       --       (557 )     83  
Elimination of consolidated VIE other expense, net   --       --       31       31  
    139       --       (526 )     (387 )
Income from continuing operations before taxes   42       8,542       1,153       9,737  
Income tax benefit   (1,511 )     --       1,737       226  
Net income   1,553       8,542       (584 )     9,511  
Net income attributable to noncontrolling interests   (26 )     --       --       (26 )
Net income attributable to noncontrolling interests - RSO   --       (1,800 )     (6,572 )     (8,372 )
Net income attributable to common shareholders $ 1,527     $ 6,742     $ (7,156 )   $ 1,113  
 
 
 
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
 

 The following table presents the consolidating statement of operations for the six months ended June 30, 2014:

                   
  RAI     RSO     Eliminations   Consolidated
REVENUES:                              
Real estate $ 26,723     $ --     $ --     $ 26,723  
Financial fund management   15,216       --       --       15,216  
Commercial finance   (141 )     --       --       (141 )
    41,798       --       --       41,798  
Revenues from consolidated VIE - RSO   --       66,539       --       66,539  
Elimination of consolidated VIE revenues attributed to operating segments   --       --       (5,920 )     (5,920 )
Total revenues   41,798       66,539       (5,920 )     102,417  
COSTS AND EXPENSES:                              
Real estate   17,980       --       --       17,980  
Financial fund management   7,168       --       --       7,168  
Commercial finance   226       --       --       226  
General and administrative   5,883       --       --       5,883  
Provision for credit losses   2,783       --       --       2,783  
Depreciation and amortization   916       --       --       916  
    34,956       --       --       34,956  
Expenses of consolidated VIE - RSO   --       32,555       430       32,985  
Elimination of consolidated VIE expenses attributed to operating segments   --       --       (5,872 )     (5,872 )
Total expenses   34,956       32,555       (5,442 )     62,069  
OPERATING INCOME   6,842       33,984       (478 )     40,348  
                               
OTHER INCOME (EXPENSE):                              
Gain on sale of investment securities, net   370       --       --       370  
Interest expense   (980 )     --       --       (980 )
Other income, net   1,327       --       (1,144 )     183  
Other income, net, from consolidated VIE - RSO   --       1,178       --       1,178  
Elimination of consolidated VIE other income, net   --       --       29       29  
    717       1,178       (1,115 )     780  
Income from continuing operations before taxes   7,559       35,162       (1,593 )     41,128  
Income tax provision   3,250       --       (430 )     2,820  
Net income   4,309       35,162       (1,163 )     38,308  
Net income attributable to noncontrolling interests   (44 )     --       --       (44 )
Net income attributable to noncontrolling interests - RSO   --       (5,369 )     (29,187 )     (34,556 )
Net income attributable to common shareholders $ 4,265     $ 29,793     $ (30,350 )   $ 3,708  
 
 
 
RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
 

 The following table presents the consolidating statement of operations for the six months ended June 30, 2013:

  RAI     RSO     Eliminations    Consolidated 
REVENUES:                              
Real estate $ 23,493     $ --     $ --     $ 23,493  
Financial fund management   6,732       --       --       6,732  
Commercial finance   (213 )     --       --       (213 )
    30,012       --       --       30,012  
Revenues from consolidated VIE - RSO   --       52,225       --       52,225  
Elimination of consolidated VIE revenues attributed to operating segments   --       --       (5,425 )     (5,425 )
Total revenues   30,012       52,225       (5,425 )     76,812  
COSTS AND EXPENSES:                              
Real estate   18,336       --       --       18,336  
Financial fund management   4,222       --       --       4,222  
Commercial finance   (174 )     --       --       (174 )
General and administrative   4,310       --       (8 )     4,302  
Provision for credit losses   1,985       --       --       1,985  
Depreciation and amortization   905       --       --       905  
    29,584       --       (8 )     29,576  
Expenses from consolidated VIE - RSO   --       27,556       --       27,556  
Elimination of consolidated VIE expenses attributed to operating segments   --       --       (5,317 )     (5,317 )
Total expenses   29,584       27,556       (5,325 )     51,815  
OPERATING INCOME   428       24,669       (100 )     24,997  
                               
OTHER INCOME (EXPENSE):                              
Other-than-temporary impairment on investments   (214 )     --       --       (214 )
Interest expense   (995 )     --       --       (995 )
Other income, net   1,385       --       (1,113 )     272  
Elimination of consolidated VIE other income, net   --       --       62       62  
    176       --       (1,051 )     (875 )
Income from continuing operations before taxes   604       24,669       (1,151 )     24,122  
Income tax (benefit) provision   (1,657 )     3,499       --       1,842  
Income from continuing operations   2,261       21,170       (1,151 )     22,280  
Loss from discontinued operations, net of tax   (2 )     --       --       (2 )
Net income   2,259       21,170       (1,151 )     22,278  
Net loss attributable to noncontrolling interests   17       --       --       17  
Net income attributable to noncontrolling interests - RSO   --       (20,686 )     --       (20,686 )
Net income attributable to common shareholders $ 2,276     $ 484     $ (1,151 )   $ 1,609  
                               
Amounts attributable to common shareholders:                              
Income from continuing operations $ 2,278     $ 484     $ (1,151 )   $ 1,611  
Discontinued operations   (2 )     --       --       (2 )
Net income $ 2,276     $ 484     $ (1,151 )   $ 1,609  
                               
                               
                               

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     Six Months Ended    
    June 30,     June 30,    
    2014   2013     2014   2013    
Net income attributable to common shareholders - GAAP   $ 2,718   $ 1,113     $ 3,708   $ 1,609    
                               
Adjustments, net of tax:                              
Income, net of eliminations, attributable to consolidation of RSO     251     418       557     675    
Loss attributable to commercial finance     1,180     844       2,070     2,852   (2)
Deferred tax provision (benefit)     466     (1,873 )     627     (2,098 )  
Adjusted net income attributable to common shareholders   $ 4,615   $ 502     $ 6,962   $ 3,038    
                               
Adjusted weighted average diluted shares outstanding     22,032     22,106       22,031     21,969    
                               
Adjusted net income attributable to common shareholders per common per share-diluted   $ 0.21   $ 0.02     $ 0.32   $ 0.14    
   
(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 provision (benefit). The Company believes that this provides useful information to investors since it allows investors to evaluate the Company's progress, excluding the impact of the RSO consolidation, in both its real estate and financial fund management segments for the three and six months ended June 30, 2014 and 2013 separately from its commercial finance operations and deferred tax provision (benefit). 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.
   
(2) Utilizes a full year continuing income tax rate of 35%.
   

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)