SOURCE: Resource America, Inc.

Resource America, Inc.

August 05, 2009 20:15 ET

Resource America, Inc. Reports Operating Results for the Third Fiscal Quarter Ended June 30, 2009

PHILADELPHIA, PA--(Marketwire - August 5, 2009) - Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted (loss) income from continuing operations, a non-GAAP measure, as follows: a loss of $37,000, or $0.00 per common share-diluted, and income of $604,000, or $0.03 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to income of $1.6 million, or $0.08 per common share-diluted, and $10.8 million, or $0.58 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2008, respectively. A reconciliation of the Company's reported GAAP loss from continuing operations to adjusted (loss) income from continuing operations is included as Schedule I to this release.

Jonathan Cohen, CEO and President commented, "Our financial results reflect our continued commitment to ramping professional and marketing costs to take advantage of the opportunity in distressed loans and real estate. Nonetheless, this quarter shows what we think will be the start on the road back to true profitability. We are excited about the continued fundraising, lower debt levels and superb positioning of our leasing and distressed real estate platforms."

The Company reported a net loss of $204,000, or $0.01 per common share-diluted, and $15.1 million, or $0.85 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to a net loss of $8.0 million, or $0.46 per common share-diluted, and $17.0 million, or $0.97 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2008, respectively. The loss recorded for the nine months ended June 30, 2009 was primarily the result of non-cash charges, net of tax, of $15.5 million, including a $7.2 million loss related to the Company's decision to sell its interest in Apidos CDO VI recorded during the second fiscal quarter ended March 31, 2009.

The Company also reported:

-- Capital Fundraising.

    --  The Company has raised a total of $146.0 million of investment
        funds during fiscal 2009 for funds sponsored and managed by
        Resource Real Estate Holdings, Inc. ("Resource Real Estate")
        and LEAF Financial Corp. ("LEAF"); and

    --  Resource Real Estate filed a $750.0 million registration
        statement with the Securities and Exchange Commission on July
        7, 2009 for Resource Real Estate Opportunity REIT, Inc. of
        which Resource Real Estate will be the external manager.

-- Debt Reduction. As of June 30, 2009, the Company reduced its consolidated borrowings outstanding by $392.9 million, or 68%, to $181.6 million from $574.5 million at June 30, 2008. Borrowings at June 30, 2009 include a $130.6 million non-recourse revolving credit facility at LEAF and $51.0 million of other debt, which includes $13.6 million of mortgage debt secured by the underlying properties.

-- Adjusted Revenues and Adjusted Operating (Loss) Income - Non-GAAP Measures. For the third fiscal quarter and nine months ended June 30, 2009, the Company reported adjusted revenues of $22.4 million and $81.8 million, respectively, as compared to $39.1 million and $141.4 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. For the third fiscal quarter and nine months ended June 30, 2009, the Company reported an adjusted operating loss of $336,000 and adjusted operating income of $7.4 million, respectively, as compared to adjusted operating income of $8.8 million and $52.5 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. Adjusted revenues and adjusted operating (loss) income include $(263,000) and $(226,000) of pre-tax fair value adjustments on investments reported under the equity method of accounting for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to adjustments of $9.7 million and $17.5 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. A reconciliation of the Company's total GAAP revenue and GAAP operating (loss) income to adjusted revenue and adjusted operating (loss) income is included as Schedule II to this release.

Assets Under Management

Assets under management decreased $4.5 billion, or 24%, to $14.3 billion at June 30, 2009 from $18.8 billion at June 30, 2008.

The following table details the Company's assets under management by operating segment:

                                                      At June 30,
                                             ------------------------------
                                                 2009            2008
                                             --------------  --------------
Financial fund management                    $ 11.2 billion  $ 15.4 billion
Real estate                                     1.7 billion     1.8 billion
Commercial finance                              1.4 billion     1.6 billion
                                             --------------  --------------
                                             $ 14.3 billion  $ 18.8 billion
                                             ==============  ==============

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 September 30, 2008.

Book Value

As of June 30, 2009, the Company's book value per common share was $7.32 per share. Total stockholders' equity was $131.4 million as of June 30, 2009 as compared to $156.6 million as of June 30, 2008. Total common shares outstanding were 17,950,360 as of June 30, 2009 as compared to 17,575,599 as of June 30, 2008.

Highlights for the Third Fiscal Quarter Ended June 30, 2009 and Recent Developments

--  The Company has reduced its total borrowings to $181.6 million at June
    30, 2009, a decrease of $372.4 million from September 30, 2008.  This
    reduction largely reflects the sale of all or part of its interests in
    Apidos CDO VI and LEAF Commercial Finance Fund ("LCFF"), two investment
    vehicles we sponsored and previously consolidated.  These sales eliminated
    the senior notes of Apidos CDO VI ($213.3 million net outstanding at
    September 30, 2008) and LCFF debt ($143.8 million at September 30, 2008).
    Additionally, the Company reduced its outstanding borrowings on its
    corporate revolving lines of credit by $16.1 million.
--  The Company has reduced its recourse corporate borrowings to $34.5
    million at June 30, 2009.
--  Resource Real Estate continued fundraising for Resource Real Estate
    Investors 7, L.P. ("RREI 7"), a $40.0 million offering that is investing in
    multifamily real estate assets.  Through August 4, 2009, Resource Real
    Estate has raised $29.4 million through RREI 7 and anticipates closing this
    fund in August 2009.
--  Resource Real Estate continued fundraising for Resource Real Estate
    Opportunity Fund, L.P. ("RREI Opp Fund"), a $40.0 million offering that
    will invest in discounted real estate.  Through August 4, 2009, Resource
    Real Estate has raised $14.7 million through RREI Opp Fund and anticipates
    closing this fund in December 2009.
--  A joint venture with an institutional partner to acquire distressed
    real estate assets has acquired its fifth asset during the third fiscal
    quarter ended June 30, 2009, for which the institutional partner has
    invested $3.2 million.
--  Resource Real Estate filed a $750.0 million registration statement
    with the Securities and Exchange Commission on July 7, 2009 for Resource
    Real Estate Opportunity REIT, Inc.
--  Resource Real Estate increased the apartment and condominium units it
    manages or whose management it supervises to 16,580 at June 30, 2009 from
    15,758 at June 30, 2008.  This includes a portfolio of 50 multifamily
    properties representing 12,134 apartment units managed by Resource Real
    Estate Management, Inc. ("Resource Residential"), the Company's property
    management subsidiary.
--  LEAF continued fundraising for LEAF 4, a $200.0 million public
    offering for an equipment leasing partnership.  Through August 4, 2009,
    LEAF has raised $87.9 million through LEAF 4 and anticipates closing this
    fund in August 2010.
--  The Company's Board of Directors authorized the payment of a cash
    dividend paid on June 30, 2009 in the amount of $0.03 per share on the
    Company's common stock to all holders of record at the close of business on
    May 29, 2009.
--  Resource Capital Corp. ("RCC") (NYSE: RSO), a real estate investment
    trust for which the Company is the external manager and a shareholder, paid
    a cash dividend of $0.30 per common share for its second quarter ended June
    30, 2009.
--  The Company generated $34.5 million of cash from operating activities
    from continuing operations as adjusted for the nine months ended June 30,
    2009.  A reconciliation of net cash (used in) provided by operating
    activities of continuing operations to net cash provided by operating
    activities of continuing operations as adjusted, a non-GAAP measure, is
    included as Schedule III to this release.
    

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

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 consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, and reconciliations of GAAP loss from continuing operations to adjusted (loss) income from continuing operations, GAAP revenue to adjusted revenue and GAAP operating (loss) income to adjusted operating (loss) income and net cash (used in) provided by operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted.

                         RESOURCE AMERICA, INC.
                      CONSOLIDATED BALANCE SHEETS
                   (in thousands, except share data)


                                                    June 30,    September
                                                      2009       30, 2008
                                                  -----------  -----------
                                                  (unaudited)
ASSETS
  Cash                                            $    17,481  $    14,910
  Restricted cash                                       3,506       23,689
  Receivables                                           1,694        2,014
  Receivables from managed entities and related
   parties                                             55,443       35,674
  Loans sold, not settled, at fair value                    -          662
  Loans held for investment, net                            -      219,664
  Investments in commercial finance - held for
   investment, net                                      7,027      182,315
  Investments in commercial finance - held for
   sale                                               137,928      110,773
  Investments in real estate, net                      26,705       37,972
  Investment securities available-for-sale, at
   fair value                                          15,524       22,746
  Investments in unconsolidated entities               17,093       18,523
  Property and equipment, net                          14,086       16,886
  Deferred tax assets                                  47,437       44,467
  Goodwill                                              7,969        7,969
  Intangible assets, net                                3,825        4,329
  Other assets                                         11,751       15,764
                                                  -----------  -----------
    Total assets                                  $   367,469  $   758,357
                                                  ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Accrued expenses and other liabilities          $    44,188  $    56,309
  Payables to managed entities and related
   parties                                              8,877          586
  Borrowings                                          181,614      554,059
  Deferred tax liabilities                              1,006        1,060
  Minority interests                                      399        2,610
                                                  -----------  -----------
    Total liabilities                                 236,084      614,624
                                                  -----------  -----------

Commitments and contingencies

Stockholders' equity:
  Preferred stock, $1.00 par value, 1,000,000
   shares authorized; none outstanding                      -            -
  Common stock, $.01 par value, 49,000,000 shares
   authorized; 27,684,424 and 27,421,552 shares
   issued, respectively (including
   nonvested restricted stock of 503,839 and
   513,386, respectively)                                 272          269
  Additional paid-in capital                          272,320      269,689
  Accumulated deficit                                 (22,057)      (3,980)
  Treasury stock, at cost; 9,230,225 and
   9,312,232 shares, respectively                    (100,547)    (101,440)
  Accumulated other comprehensive loss                (18,603)     (20,805)
                                                  -----------  -----------
    Total stockholders' equity                        131,385      143,733
                                                  -----------  -----------
                                                  $   367,469  $   758,357
                                                  ===========  ===========



                          RESOURCE AMERICA, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share data)
                                (unaudited)


                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
REVENUES
Commercial finance              $  10,547  $  21,802  $  39,352  $  82,432
Real estate                         5,198      5,626     17,261     18,790
Financial fund management           6,884      2,017     25,414     22,662
                                ---------  ---------  ---------  ---------
                                   22,629     29,445     82,027    123,884
                                ---------  ---------  ---------  ---------
COSTS AND EXPENSES
Commercial finance                  5,841     10,751     20,064     32,213
Real estate                         5,821      5,672     17,109     16,464
Financial fund management           4,722      7,122     15,532     20,020
General and administrative          3,371      3,954     11,049     11,169
Provision for credit losses         1,048      1,550      5,645      5,770
Depreciation and amortization       1,899      1,301      4,981      3,251
                                ---------  ---------  ---------  ---------
                                   22,702     30,350     74,380     88,887
                                ---------  ---------  ---------  ---------
OPERATING (LOSS) INCOME               (73)      (905)     7,647     34,997

OTHER (EXPENSE) INCOME
Interest expense                   (2,634)    (9,776)   (16,957)   (39,048)
Minority interest (expense)
 income, net                          (13)     2,590      1,526       (677)
Gain (loss) on sale of loans
 and investment securities, net         -        346    (11,588)   (17,674)
Impairment charges on
 investment securities                  -     (6,974)    (7,962)    (8,123)
Other income, net                     981      1,098      3,224      3,191
                                ---------  ---------  ---------  ---------
                                   (1,666)   (12,716)   (31,757)   (62,331)
                                ---------  ---------  ---------  ---------

Loss from continuing operations
 before taxes                      (1,739)   (13,621)   (24,110)   (27,334)
Benefit for income taxes           (1,613)    (5,723)    (9,219)   (10,660)
                                ---------  ---------  ---------  ---------
Loss from continuing operations      (126)    (7,898)   (14,891)   (16,674)
Loss from discontinued
 operations, net of tax               (78)      (127)      (166)      (345)
                                ---------  ---------  ---------  ---------
NET LOSS                        $    (204) $  (8,025) $ (15,057) $ (17,019)
                                =========  =========  =========  =========

Basic loss per common share:
Continuing operations           $   (0.01) $   (0.45) $   (0.84) $   (0.95)
Discontinued operations                 -      (0.01)     (0.01)     (0.02)
                                ---------  ---------  ---------  ---------
Net loss                        $   (0.01) $   (0.46) $   (0.85) $   (0.97)
                                =========  =========  =========  =========
Weighted average shares
 outstanding                       17,914     17,549     17,789     17,493
                                =========  =========  =========  =========

Diluted loss per common share:
Continuing operations           $   (0.01) $   (0.45) $   (0.84) $   (0.95)
Discontinued operations                 -      (0.01)     (0.01)     (0.02)
                                ---------  ---------  ---------  ---------
Net loss                        $   (0.01) $   (0.46) $   (0.85) $   (0.97)
                                =========  =========  =========  =========
Weighted average shares
 outstanding                       17,914     17,549     17,789     17,493
                                =========  =========  =========  =========

Dividends declared per common
 share                          $    0.03  $    0.07  $    0.17  $    0.21




                            RESOURCE AMERICA, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)



                                                       Nine Months Ended
                                                            June 30,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                              $ (15,057) $ (17,019)
Adjustments to reconcile net loss to net cash (used
 in) provided by operating activities, net of
 acquisitions:
  Impairment charges on investment securities
   available-for-sale                                     7,962      8,123
  Depreciation and amortization                           6,567      4,299
  Provision for credit losses                             5,645      5,770
  Minority interest (income) expense                     (1,526)       677
  Equity in (earnings) losses of unconsolidated
   entities                                                (758)    10,260
  Distributions from unconsolidated entities              4,549     14,651
  Loss on sale of loans and investment securities, net   11,588     17,674
  Gain on sale of investments in commercial finance
   assets                                                  (363)         -
  Gain on sale of assets                                   (635)    (2,033)
  Deferred income tax benefit                            (4,348)   (13,689)
  Non-cash compensation on long-term incentive plans      3,788      3,808
  Non-cash compensation issued                              110        107
  Non-cash compensation received                            (98)       359
(Increase) decrease in commercial finance investments   (32,149)    61,148
Changes in operating assets and liabilities             (18,524)   (14,627)
                                                      ---------  ---------
Net cash (used in) provided by operating activities
 of continuing operations                               (33,249)    79,508
                                                      ---------  ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                       (244)    (5,621)
Payments received on real estate loans and real
 estate                                                  10,044      8,109
Investments in real estate                               (3,230)    (8,380)
Return of capital from investments in unconsolidated
 entities                                                   684          -
Purchase of commercial finance assets held for
 investment                                             (41,942)   (74,017)
Payments received on commercial finance assets held
 for investment                                          44,607     48,711
Purchase of loans and investment securities             (19,203)  (247,067)
Proceeds from sale of loans and investment securities     4,061     27,701
Principal payments received on loans                      4,561     10,071
Net cash paid for acquisitions                                -     (8,022)
Increase in other                                        (2,464)   (17,352)
                                                      ---------  ---------
Net cash used in investing activities of continuing
 operations                                              (3,126)  (265,867)
                                                      ---------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings                                  350,856    780,898
Principal payments on borrowings                       (322,424)  (568,617)
Repayment from managed entity on RCC lease portfolio
 purchase                                                 4,500          -
Minority interest contributions                               1        315
Distributions paid to minority interest holders             (73)    (1,394)
Dividends paid                                           (3,020)    (3,676)
Decrease (increase) in restricted cash                    9,532    (27,948)
Proceeds from issuance of stock                               3        182
Purchase of treasury stock                                    -       (237)
Repurchase of subsidiary stock                             (264)         -
                                                      ---------  ---------
Net cash provided by financing activities of
 continuing operations                                   39,111    179,523
                                                      ---------  ---------

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities                                         (6)         9
Financing activities                                       (159)         -
                                                      ---------  ---------
Net cash (used in) provided by discontinued
 operations                                                (165)         9
                                                      ---------  ---------
Increase (decrease) in cash                               2,571     (6,827)
Cash at beginning of period                              14,910     14,624
                                                      ---------  ---------
Cash at end of period                                 $  17,481  $   7,797
                                                      =========  =========

This press release contains supplemental financial information determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"). The Company's management uses these non-GAAP measures in its analysis of the exclusion of certain adjustments recorded in the three and nine months ended June 30, 2009. Management believes the presentation of these financial measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results of the Company. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

SCHEDULE I


              RECONCILIATION OF GAAP LOSS FROM CONTINUING OPERATIONS
               TO ADJUSTED (LOSS) INCOME FROM CONTINUING OPERATIONS
                       (in thousands, except per share data)
                                    (unaudited)



                                 Three Months Ended     Nine Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Loss from continuing
 operations - GAAP              $    (126) $  (7,898) $ (14,891) $ (16,674)
Adjustments, net of tax:
  Partnership level adjustments
   (1)                                (18)     6,343        528     11,364
  Impairment charge on CDO
   investments                          -      1,971      3,922      2,776
  Loan reserves                        31          -        913          -
  Loss on sale of loans and
   investment securities, net           -        260      7,599     11,130
  Severance costs                       6          -      1,195          -
  Resource Residential start-up
   costs                                -          -          -        333
  RCC incentive stock                  47        591        782      1,527
  Other                                23        288        556        303
                                ---------  ---------  ---------  ---------
Adjusted (loss) income from
 continuing operations (2)      $     (37) $   1,555  $     604  $  10,759
                                =========  =========  =========  =========

Weighted average diluted shares
 outstanding (3)                   17,914     18,434     18,461     18,550
                                =========  =========  =========  =========

Adjusted income from continuing
 operations per share-diluted   $    0.00  $    0.08  $    0.03  $    0.58
                                =========  =========  =========  =========

-----------------------------

(1) Primarily includes mark-to-market adjustments on investments in
    partnerships that the Company manages.

(2) During the nine months ended June 30, 2009 and 2008, in connection with
    substantial volatility and reduction in liquidity in the global credit
    markets, the Company recorded several significant adjustments that it
    believes do not directly impact its continuing operations. For
    comparability purposes, the Company is presenting adjusted (loss)
    income from continuing operations because it facilitates the evaluation
    of the Company's underlying operating performance without the effect of
    adjustments that do not directly relate to that performance.  Adjusted
    (loss) income from continuing operations should not be considered as an
    alternative to loss from continuing operations (computed in accordance
    with GAAP).  Instead, adjusted (loss) income from continuing operations
    should be reviewed in connection with loss from continuing operations
    in the Company's consolidated financial statements, to help analyze how
    the Company's business is performing.

(3) Dilutive shares used in the calculation of adjusted income from
    continuing operations per share-diluted includes an additional 672,000
    shares for the nine months ended June 30, 2009, and 885,000 and
    1,057,000 shares for the three and  nine months ended June 30, 2008,
    respectively, which were not used in the calculation of loss from
    continuing operations per share-diluted.




SCHEDULE II

  RECONCILIATION OF GAAP REVENUE TO ADJUSTED REVENUE AND RECONCILIATION OF
   GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING (LOSS) INCOME
                               (in thousands)
                                (unaudited)


                                    Three Months Ended  Nine Months Ended
                                         June 30,            June 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  ---------
Revenues
  Commercial finance                $ 10,547  $ 21,802  $ 39,352  $  82,432
  Real estate                          5,198     5,626    17,261     18,790
  Financial fund management            6,884     2,017    25,414     22,662
                                    --------  --------  --------  ---------
Total revenues - GAAP                 22,629    29,445    82,027    123,884

Adjustments:
  Fair value adjustments (1)            (263)    9,674      (226)    17,501
                                    --------  --------  --------  ---------
Adjusted revenues (2)               $ 22,366  $ 39,119  $ 81,801  $ 141,385
                                    ========  ========  ========  =========

Operating (loss) income - GAAP      $    (73) $   (905) $  7,647  $  34,997

Adjustments:
  Fair value adjustments (1)            (263)    9,674      (226)    17,501
                                    --------  --------  --------  ---------
Adjusted operating (loss) income
 (2)                                $   (336) $  8,769  $  7,421  $  52,498
                                    ========  ========  ========  =========

-----------------------------

(1) Reflects pre-tax fair value adjustments on investments reported under
    the equity method of accounting.

(2) Management of the Company views adjusted revenues and adjusted
    operating (loss) income, both non-GAAP measures, as useful and
    appropriate supplements to revenues and operating (loss) income since
    they exclude fair value adjustments related to current credit market
    conditions and are not indicative of the Company's current operating
    performance.



SCHEDULE III

  RECONCILIATION OF NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES OF
   CONTINUING OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES OF
                      CONTINUING OPERATIONS AS ADJUSTED
                               (in thousands)
                                (unaudited)

Net cash provided by operating activities of continuing operations as adjusted was $34.5 million for the nine months ended June 30, 2009 a decrease of $1.4 million as compared to net cash provided by operating activities as adjusted of $35.9 million for the nine months ended June 30, 2008. The following reconciles net cash (used in) provided by operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted:


                                                        Nine Months Ended
                                                            June 30,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
Net cash (used in) provided by operating activities
 of continuing operations                             $ (33,249) $  79,508

Adjustments:
  Decrease (increase) in commercial finance
   investments                                           32,149    (61,148)
  Changes in operating assets and liabilities            18,524     14,627
  Proceeds from sales of certain loans and
   investment securities                                 17,050      2,933
                                                      ---------  ---------
    Net cash provided by operating activities of
     continuing operations as adjusted                $  34,474  $  35,920
                                                      =========  =========

-----------------------------

(1) Management of the Company believes net cash provided by operating
    activities of continuing operations as adjusted is a useful and
    appropriate supplement to GAAP net cash (used in) provided by operating
    activities of continuing operations since it reflects how management
    views its liquidity and working capital requirements.

Contact Information

  • CONTACT:
    STEVEN KESSLER
    CHIEF FINANCIAL OFFICER
    RESOURCE AMERICA, INC.
    ONE CRESCENT DRIVE, SUITE 203
    PHILADELPHIA, PA 19112
    215/546-5005
    215/546-4785 (fax)