SOURCE: Resource America, Inc.

Resource America, Inc.

August 06, 2015 19:30 ET

Resource America, Inc. Reports Operating Results for the Second Quarter Ended June 30, 2015

PHILADELPHIA, PA--(Marketwired - Aug 6, 2015) - Resource America, Inc. (NASDAQ: REXI)

Second Quarter 2015 Highlights

  • Adjusted net income attributable to common shareholders of $3.4 million (see Schedule I)
  • Increased gross assets under management by 15% to $21.8 billion since June 30, 2014
  • Net assets under management increased 20% to $10.6 billion
  • Book value per common share of $7.28
  • Repurchased 302,767 shares at an average price of $8.40

Second Quarter 2015 Results

Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $3.4 million, or $0.15 per common share-diluted, and $5.7 million, or $0.25 per common share-diluted, for the three and six months ended June 30, 2015 as compared to adjusted net income attributable to common shareholders of $4.6 million, or $0.21 per common share-diluted, and $6.9 million, or $0.32 per common share-diluted, for the three and six months ended June 30, 2014, respectively. A reconciliation of the Company's reported GAAP net income (loss) 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 a GAAP net loss attributable to common shareholders of $1.7 million, or $0.07 per common share-diluted, and $1.3 million, or $0.06 per common share-diluted, for the three and six months ended June 30, 2015 as compared to 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. 

Included in GAAP net loss attributable to common shareholders for the second fiscal quarter and six months ended June 30, 2015 is a $4.3 million impairment related to the sale of a 9% interest in CVC Credit Partners, L.P. ("CCP") to the Company's joint venture partner, pursuant to an option provided in connection with the sale of Apidos Capital Management in April 2012. The Company received $4.9 million from the sale after quarter end and continues to own 24% of the joint venture.

Assets Under Management

The following table details the Company's gross assets under management by operating segment, which increased by $2.9 billion (15%) from June 30, 2014 to 2015 (in billions):

     
    June 30,
    2015   2014
Financial fund management   $ 17.3   $ 15.5
Real estate     3.8     2.8
Commercial finance     0.7     0.6
    $ 21.8   $ 18.9
             
  Net assets under management (1)   $ 10.6   $ 8.8
   
(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, 2014.

Highlights for the Second Quarter Ended June 30, 2015 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 $1.1 billion at June 30, 2015, an increase of 29%, from $843.0 million at June 30, 2014.
  • Acquired $183.0 million of assets, placed or assumed financing of $94.8 million and disposed of $13.5 million of multifamily assets during the three months ended June 30, 2015.

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

  • Raised a record $96.6 million during the three months ended June 30, 2015 and a total of $266.4 million since inception.
  • Acquired $54.7 million of assets and placed $20.2 million of financing during the three months ended June 30, 2015.

Creation of Real Estate Joint Venture: On June 25, 2015, the Company formed Pearlmark Real Estate, L.L.C, a joint venture between the Company and the principals of Pearlmark Real Estate Partners, L.L.C. ("Pearlmark Partners"), focusing on the management of institutional real estate investments. Based in Chicago, the Pearlmark team has successfully committed $4.5 billion of equity capital from a varied investor base that includes Fortune 500 companies to public and private pension funds to high net worth families.

Debt Asset Management

Resource Capital Corp. ("RSO"), a publicly-traded REIT managed by the Company which focuses on commercial real estate assets, originated $184.5 million in new commercial real estate loans during the three months ended June 30, 2015.

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

  • The Company's real estate operating segment increased its gross assets under management at June 30, 2015 to $3.8 billion, an increase of $1.0 billion, or 35%, from June 30, 2014.
  • Real estate revenues increased 57% and 43% to $21.1 million and $38.1 million, for the three and six months ended June 30, 2015, respectively, as compared to $13.4 million and $26.7 million for the three and six months ended June 30, 2014.
  • Resource Real Estate Management, Inc., the Company's property management subsidiary managed 19,321 apartment units as of June 30, 2015 as compared to 19,636 units as of June 30, 2014.

FINANCIAL FUND MANAGEMENT:

Credit Asset Management

CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture created in April 2012, closed Apidos CLO XXI, Ltd. and CVC Cordatus Loan Fund V Limited. CCP has now closed CLOs issuing notes with a total par value of $7.8 billion. At June 30, 2015, the Company had a 33% interest in this joint venture.

On July 2, 2015, CVC Capital Partners SICAV-FIS, S.A., the Company's joint venture partner, exercised its option to buy down the Company's interest by 9% for $4.9 million.

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

  • The Company's financial fund management operating segment increased its gross assets under management at June 30, 2015 to $17.3 billion, an increase of $1.8 billion, or 12%, from June 30, 2014.

CORPORATE/OTHER:

Share Repurchases

  • The Company repurchased 302,767 of its shares during the second quarter ended June 30, 2015 at an average price of $8.40 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 July 31, 2015 to holders of record as of the close of business on July 17, 2015. 
  • RSO's Board of Directors declared a cash dividend of $0.16 per common share for its three months ended June 30, 2015.

Other

  • On August 3, 2015, RSO's Board of Directors approved a one-for-four reverse stock split which is expected to be effective on August 31, 2015.
  • On August 3, 2015, RSO's Board of Directors also authorized RSO to repurchase up to $50 million of its outstanding equity and debt securities.

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 (loss) 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,
2015
    December 31,
2014
 
    (unaudited)        
ASSETS                
  Cash   $ 23,760     $ 27,542  
  Restricted cash     886       725  
  Receivables     1,061       636  
  Loans and receivables from managed entities and related parties, net     26,520       30,303  
  Investments in real estate, net     17,040       17,097  
  Investment securities, at fair value     10,870       9,540  
  Investments in unconsolidated loan manager     36,526       39,655  
  Investments in unconsolidated entities     16,884       13,089  
  Assets of consolidated variable interest entity ("VIE")-RSO:                
    Cash and cash equivalents (including restricted cash)     190,765       202,043  
    Investments, at fair value     286,108       296,506  
    Loans     2,154,007       2,038,435  
    Investments in real estate and unconsolidated entities     56,330       60,007  
    Other assets     87,014       131,481  
      Total assets of consolidated VIE-RSO     2,774,224       2,728,472  
                 
  Property and equipment, net     5,622       5,063  
  Deferred tax assets, net     20,920       23,304  
  Other assets     8,392       5,416  
    Total assets   $ 2,942,705     $ 2,900,842  
                 
LIABILITIES AND EQUITY                
Liabilities:                
  Accrued expenses and other liabilities   $ 21,241     $ 22,279  
  Payables to managed entities and related parties     4,748       3,015  
  Borrowings     21,029       20,412  
  Liabilities of consolidated VIE-RSO:                
    Borrowings     1,827,793       1,717,132  
    Other liabilities     51,640       57,561  
    Total liabilities of consolidated VIE-RSO     1,879,433       1,774,693  
      Total liabilities     1,926,451       1,820,399  
                 
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; 34,958,477 and 34,489,568 shares issued (including nonvested restricted stock of 1,143,547 and 833,082), respectively     338       335  
  Additional paid-in capital     309,736       308,134  
  Accumulated deficit     (27,643 )     (23,663 )
  Treasury stock, at cost; 12,293,346 and 11,764,417 shares, respectively     (124,736 )     (120,182 )
  Accumulated other comprehensive loss     (915 )     (1,030 )
    Total stockholders' equity     156,780       163,594  
  Noncontrolling interests     376       306  
  Noncontrolling interests attributable to consolidated VIE-RSO     859,098       916,543  
    Total equity     1,016,254       1,080,443  
    Total liabilities and equity   $ 2,942,705     $ 2,900,842  
                     
                     
   
RESOURCE AMERICA, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share data)  
(unaudited)  
   
  Three Months Ended     Six Months Ended  
  June 30,     June 30,  
  2015     2014     2015     2014  
REVENUES:                              
Real estate (includes revenues of $2,751, $2,302, $5,503 and $4,985 related to RSO) $ 21,116     $ 13,448     $ 38,082     $ 26,723  
Financial fund management (includes revenues of $617, $753, $1,233 and $960 related to RSO)   4,781       8,141       9,918       15,216  
Commercial finance (includes no revenues related to RSO)   2       (42 )     -       (141 )
    25,899       21,547       48,000       41,798  
Revenues from consolidated VIE-RSO   24,201       23,828       48,562       49,073  
Elimination of consolidated VIE-RSO revenues attributed to operating segments   (4,104 )     (3,040 )     (8,377 )     (5,920 )
  Total revenues   45,996       42,335       88,185       84,951  
COSTS AND EXPENSES:                              
Real estate   12,082       9,105       23,581       17,980  
Financial fund management   3,154       2,779       6,144       7,168  
Commercial finance   458       123       1,037       226  
General and administrative   4,181       2,729       7,478       5,883  
Provision for credit losses   276       1,575       678       2,783  
Depreciation and amortization   515       465       972       916  
    20,666       16,776       39,890       34,956  
Expenses from consolidated VIE-RSO   54,535       16,853       75,595       28,138  
Elimination of consolidated VIE-RSO expenses attributed to operating segments   (3,368 )     (3,053 )     (6,736 )     (5,872 )
  Total expenses   71,833       30,576       108,749       57,222  
OPERATING INCOME (LOSS)   (25,837 )     11,759       (20,564 )     27,729  
                               
OTHER INCOME (EXPENSE):                              
Gain (loss) on sale of investment securities, net   -       370       -       370  
Other-than-temporary impairment on investments   (4,346 )     -       (4,346 )     -  
Interest expense   (455 )     (497 )     (876 )     (980 )
Other income (expense), net   231       18       67       183  
    (4,570 )     (109 )     (5,155 )     (427 )
Other income (expense), net, from consolidated VIE-RSO   10,537       10,281       27,053       13,797  
Elimination of consolidated VIE-RSO other income, net attributed to operating segments   4       11       15       29  
    5,971       10,183       21,913       13,399  
Income (loss) from continuing operations before taxes   (19,866 )     21,942       1,349       41,128  
Income tax provision (benefit)   857       2,181       2,101       3,250  
Income tax provision (benefit) -RSO   2,918       (446 )     4,765       (430 )
Net income (loss)   (23,641 )     20,207       (5,517 )     38,308  
Net (income) loss attributable to noncontrolling interests   (63 )     (84 )     (55 )     (44 )
Net (income) loss attributable to noncontrolling interests of consolidated VIE-RSO   22,052       (17,405 )     4,257       (34,556 )
Net income (loss) attributable to common shareholders $ (1,652 )   $ 2,718     $ (1,315 )   $ 3,708  
                               
Basic earnings (loss) per share:                              
Net income (loss) $ (0.07 )   $ 0.13     $ (0.06 )   $ 0.18  
Weighted average shares outstanding   22,867       20,386       22,915       20,320  
                               
Diluted earnings (loss) per share:                              
Net income (loss) $ (0.07 )   $ 0.12     $ (0.06 )   $ 0.17  
Weighted average shares outstanding   22,867       22,032       22,915       22,031  
                               
                               
                               
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, 2015:

                       
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 21,116     $ -     $ -     $ 21,116  
Financial fund management   4,781       -       -       4,781  
Commercial finance   2       -       -       2  
    25,899       -       -       25,899  
Revenues from consolidated VIE-RSO   -       24,201       -       24,201  
Elimination of consolidated VIE-RSO revenues attributed to operating segments   -       -       (4,104 )     (4,104 )
  Total revenues   25,899       24,201       (4,104 )     45,996  
COSTS AND EXPENSES:                              
Real estate   12,082       -       -       12,082  
Financial fund management   3,154       -       -       3,154  
Commercial finance   458       -       -       458  
General and administrative   4,181       -       -       4,181  
Provision for credit losses   276       -       -       276  
Depreciation and amortization   515       -       -       515  
    20,666       -       -       20,666  
Expenses of consolidated VIE-RSO   -       54,535       -       54,535  
Elimination of consolidated VIE-RSO expenses attributed to operating segments   -       -       (3,368 )     (3,368 )
  Total expenses   20,666       54,535       (3,368 )     71,833  
OPERATING INCOME (LOSS)   5,233       (30,334 )     (736 )     (25,837 )
                               
OTHER INCOME (EXPENSE):                              
Other-than-temporary impairment on investment   (4,346 )     -       -       (4,346 )
Interest expense   (455 )     -       -       (455 )
Other income (expense), net   689       -       (458 )     231  
Other income (expense), net, from consolidated VIE-RSO   -       10,537       -       10,537  
Elimination of consolidated VIE-RSO other income, net   -       -       4       4  
  Total other income (expense)   (4,112 )     10,537       (454 )     5,971  
Income (loss) from continuing operations before taxes   1,121       (19,797 )     (1,190 )     (19,866 )
Income tax provision (benefit)   857       2,918       -       3,775  
Net income (loss)   264       (22,715 )     (1,190 )     (23,641 )
Net (income) loss attributable to noncontrolling interests   (63 )     -       -       (63 )
Net (income) loss attributable to noncontrolling interests-RSO   -       (8,296 )     30,348       22,052  
Net income (loss) attributable to common shareholders $ 201     $ (31,011 )   $ 29,158     $ (1,652 )
                               
                               
                               
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   -       23,828       -       23,828  
Elimination of consolidated VIE-RSO revenues attributed to operating segments   -       -       (3,040 )     (3,040 )
Total revenues   21,547       23,828       (3,040 )     42,335  
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   -       16,853               16,853  
Elimination of consolidated VIE-RSO expenses attributed to operating segments   -       -       (3,053 )     (3,053 )
Total expenses   16,776       16,853       (3,053 )     30,576  
OPERATING INCOME (LOSS)   4,771       6,975       13       11,759  
                               
OTHER INCOME (EXPENSE):                              
Gain (loss) on sale of investment securities, net   370       -       -       370  
Interest expense   (497 )     -       -       (497 )
Other income (expense), net   590       -       (572 )     18  
Other income (expense), net, from consolidated VIE-RSO   -       10,281       -       10,281  
Elimination of consolidated VIE-RSO other income, net   -       -       11       11  
  Total other income (expense)   463       10,281       (561 )     10,183  
Income (loss) from continuing operations before taxes   5,234       17,256       (548 )     21,942  
Income tax provision (benefit)   2,181       (446 )     -       1,735  
Net income (loss)   3,053       17,702       (548 )     20,207  
Income (loss) from continuing operations before taxes   (84 )     -       -       (84 )
Net (income) loss attributable to noncontrolling interests-RSO   -       (3,025 )     (14,380 )     (17,405 )
Net income (loss) 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 six months ended June 30, 2015:

                       
  RAI     RSO     Eliminations     Consolidated  
REVENUES:                              
Real estate $ 38,082     $ -     $ -     $ 38,082  
Financial fund management   9,918       -       -       9,918  
Commercial finance   -       -       -       -  
    48,000       -       -       48,000  
Revenues from consolidated VIE-RSO   -       48,562       -       48,562  
Elimination of consolidated VIE-RSO revenues attributed to operating segments   -       -       (8,377 )     (8,377 )
  Total revenues   48,000       48,562       (8,377 )     88,185  
COSTS AND EXPENSES:                              
Real estate   23,581       -       -       23,581  
Financial fund management   6,144       -       -       6,144  
Commercial finance   1,037       -       -       1,037  
General and administrative   7,478       -       -       7,478  
Provision for credit losses   678       -       -       678  
Depreciation and amortization   972       -       -       972  
    39,890       -       -       39,890  
Expenses of consolidated VIE-RSO   -       75,595       -       75,595  
Elimination of consolidated VIE-RSO expenses attributed to operating segments   -       -       (6,736 )     (6,736 )
  Total expenses   39,890       75,595       (6,736 )     108,749  
OPERATING INCOME (LOSS)   8,110       (27,033 )     (1,641 )     (20,564 )
                               
OTHER INCOME (EXPENSE):                              
Other-than-temporary impairment on investments   (4,346 )     -       -       (4,346 )
Interest expense   (876 )     -       -       (876 )
Other income (expense), net   1,003       -       (936 )     67  
Other income (expense), net, from consolidated VIE-RSO   -       27,053       -       27,053  
Elimination of consolidated VIE-RSO other income, net   -       -       15       15  
  Total other income (expense)   (4,219 )     27,053       (921 )     21,913  
Income (loss) from continuing operations before taxes   3,891       20       (2,562 )     1,349  
Income tax provision (benefit)   2,101       4,765       -       6,866  
Net income (loss)   1,790       (4,745 )     (2,562 )     (5,517 )
Net (income) loss attributable to noncontrolling interests   (55 )     -       -       (55 )
Net (income) loss attributable to noncontrolling interests-RSO   -       (16,864 )     21,121       4,257  
Net income (loss) attributable to common shareholders $ 1,735     $ (21,609 )   $ 18,559     $ (1,315 )
                               
                               
                               
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   -       49,073       -       49,073  
Elimination of consolidated VIE-RSO revenues attributed to operating segments   -       -       (5,920 )     (5,920 )
  Total revenues   41,798       49,073       (5,920 )     84,951  
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   -       28,138       -       28,138  
Elimination of consolidated VIE-RSO expenses attributed to operating segments   -       -       (5,872 )     (5,872 )
  Total expenses   34,956       28,138       (5,872 )     57,222  
OPERATING INCOME (LOSS)   6,842       20,935       (48 )     27,729  
                               
OTHER INCOME (EXPENSE):                              
Gain (loss) on sale of investment securities, net   370       -       -       370  
Interest expense   (980 )     -       -       (980 )
Other income (expense), net   1,327       -       (1,144 )     183  
Other income (expense), net, from consolidated VIE-RSO   -       13,797       -       13,797  
Elimination of consolidated VIE-RSO other income, net   -       -       29       29  
  Total other income (expense)   717       13,797       (1,115 )     13,399  
Income (loss) from continuing operations before taxes   7,559       34,732       (1,163 )     41,128  
Income tax provision (benefit)   3,250       (430 )     -       2,820  
Net income (loss)   4,309       35,162       (1,163 )     38,308  
Net (income) loss attributable to noncontrolling interests   (44 )     -       -       (44 )
Net (income) loss attributable to noncontrolling interests-RSO   -       (5,369 )     (29,187 )     (34,556 )
Net income (loss) attributable to common shareholders $ 4,265     $ 29,793     $ (30,350 )   $ 3,708  
                               
                               
                               

Schedule I

 
RECONCILIATION OF GAAP NET INCOME (LOSS)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,
  2015     2014   2015     2014
Net income (loss) attributable to common shareholders - GAAP $ (1,652 )   $ 2,718   $ (1,315 )   $ 3,708
                           
Adjustments, net of tax:                          
Reduction of income, net of eliminations, attributable to consolidation of RSO   1,853       251     3,050       541
Impairment of investment in unconsolidated loan manager   2,485       -     2,589       -
Loss attributable to commercial finance   305       1,180     836       2,070
Deferred tax provision   377       466     528       627
Adjusted net income attributable to common shareholders $ 3,368     $ 4,615   $ 5,688     $ 6,946
                           
Adjusted weighted average diluted shares outstanding (2)   23,135       22,032     23,186       22,031
                           
Adjusted net income attributable to common shareholders per common per share-diluted $ 0.15     $ 0.21   $ 0.25     $ 0.32
                           
(1) Adjusted net income attributable to common shareholders presents the Company's operations prior to the consolidation of RSO and without the effect of the impairment of investment in unconsolidated loan manager, its commercial finance operations and deferred tax 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 and six months ended June 30, 2015 and 2014 separately from these items. Adjusted net income attributable to common shareholders should not be considered as an alternative to net income (loss) 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 (loss) attributable to common shareholders in the Company's consolidated financial statements to help analyze how the Company's business is performing.
   
(2) Dilutive shares used in the calculation of adjusted income from continuing operations attributable to common shareholders per common share-diluted includes an additional 268,000 and 271,000 shares for the three and six months ended June 30, 2015, which were antidilutive for the periods and, as such, were not used in the calculation of GAAP loss from continuing operations attributable to common shareholders per common share-diluted.
   

Contact Information

  • CONTACT:
    Thomas C. Elliott
    Chief Financial Officer
    Resource America, Inc.
    One Crescent Drive, Suite 203
    Philadelphia, PA 19112