Amrep Corp 10-Q for FY2022 Q3

Amrep Corp. (AXR)

10-Q 2022-03-10 For: 2022-01-31

Added on April 06, 2026

About this 10-Q

Amrep Corp filed this 10-Q on March 10, 2022, covering the quarter ended January 31, 2022 (FY2022 Q3).

Headline figures

Quarter ended January 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $9.82M; up 24.8% from $7.86M a year earlier
Net income: $910K; down 56.5% from net income of $2.09M a year earlier
Diluted EPS: $0.12; down 57.1% from $0.28 a year earlier

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Oklahoma		59-0936128
State or Other Jurisdiction of Incorporation or Organization		I.R.S. Employer Identification No.

850 West Chester Pike, Suite 205, Havertown, PA		19083
Address of Principal Executive Offices		Zip Code


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.10 par value	AXR	New York Stock Exchange

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

		PAGE NO.
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets January 31, 2022 (Unaudited) and April 30, 2021	2

	Consolidated Statements of Operations (Unaudited) Three and Nine Months Ended January 31, 2022 and 2021	3

	Consolidated Statements of Comprehensive Income (Unaudited) Three and Nine Months Ended January 31, 2022 and 2021	4

	Consolidated Statements of Shareholders’ Equity (Unaudited) Three and Nine Months Ended January 31, 2022 and 2021	5

	Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended January 31, 2022 and 2021	6

	Notes to Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 4.	Controls and Procedures	22

PART II. OTHER INFORMATION

Item 6.	Exhibits	23

SIGNATURE		24

EXHIBIT INDEX		25


	January 31,		April 30,
	2022		2021
	(Unaudited)
ASSETS
Cash and cash equivalents	$	27,300	$	24,801
Real estate inventory		64,786		55,589
Investment assets, net		9,775		13,582
Other assets		1,924		645
Taxes receivable, net		284		—
Deferred income taxes, net		885		2,749
Prepaid pension costs		186		—
TOTAL ASSETS	$	105,140	$	97,366

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable and accrued expenses	$	4,196	$	4,458
Notes payable, net		5,726		3,448
Taxes payable, net		—		95
Accrued pension costs		—		476
TOTAL LIABILITIES		9,922		8,477

SHAREHOLDERS' EQUITY:
Common stock, $.10 par value; shares authorized – 20,000,000; shares issued – 7,336,370 at January 31, 2022 and 7,323,370 at April 30, 2021		733		730
Capital contributed in excess of par value		45,325		45,072
Retained earnings		53,583		47,710
Accumulated other comprehensive loss, net		(4,423)		(4,623)
TOTAL SHAREHOLDERS’ EQUITY		95,218		88,889
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	105,140	$	97,366


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months ended				Nine Months ended
	January 31,				January 31,
	2022		2021		2022		2021
REVENUES:
Land sale revenues	$	5,879	$	5,957	$	21,535	$	17,970
Home sale revenues		3,376		1,261		6,606		1,463
Building sales and other revenues		561		646		8,418		1,893
Total revenues		9,816		7,864		36,559		21,326

COSTS AND EXPENSES:
Land sale cost of revenues		4,495		2,916		16,259		12,028
Home sale cost of revenues		2,623		1,082		5,167		1,256
Building sales and other cost of revenues		—		—		3,837		—
General and administrative expenses		1,540		1,342		3,983		4,306
Total costs and expenses		8,658		5,340		29,246		17,590
Operating income		1,158		2,524		7,313		3,736

Interest income (expense), net		—		(21)		1		(27)
Other income		—		300		260		950
Income before income taxes		1,158		2,803		7,574		4,659

Provision for income taxes		248		710		1,701		1,175
Net income	$	910	$	2,093	$	5,873	$	3,484

Basic earnings per share	$	0.12	$	0.29	$	0.80	$	0.44
Diluted earnings per share	$	0.12	$	0.28	$	0.80	$	0.44
Weighted average number of common shares outstanding – basic		7,363		7,343		7,357		7,872
Weighted average number of common shares outstanding – diluted		7,385		7,372		7,380		7,903


				Capital				Accumulated		Treasury
				Contributed				Other		Stock,
	Common Stock			in Excess of		Retained		Comprehensive		at
	Shares	Amount		Par Value		Earnings		Loss		Cost		Total
Balance, November 1, 2021	7,336	$	731	$	45,221	$	52,673	$	(4,490)	$	—	$	94,135
Reclassification of common stock settled from deferred common share units	—		2		(2)		—		—		—		—
Issuance of option to purchase common stock	—		—		16		—		—		—		16
Issuance of deferred common share units	—		—		90		—		—		—		90
Net income	—		—		—		910		—		—		910
Other comprehensive income	—		—		—		—		67		—		67
Balance, January 31, 2022	7,336	$	733	$	45,325	$	53,583	$	(4,423)	$	—	$	95,218

Balance, November 1, 2020	7,692	$	768	$	47,216	$	44,540	$	(6,287)	$	(4,215)	$	82,022
Issuance of deferred common share units	—		—		90		—		—		—		90
Repurchase of common stock	(144)		(14)		(874)		—		—		—		(888)
Retirement of treasury stock	(225)		(24)		(1,360)		(2,831)		—		4,215		—
Net income	—		—		—		2,093		—		—		2,093
Other comprehensive income	—		—		—		—		90		—		90
Balance, January 31, 2021	7,323	$	730	$	45,072	$	43,802	$	(6,197)	$	—	$	83,407

Balance, May 1, 2021	7,323	$	730	$	45,072	$	47,710	$	(4,623)	$	—	$	88,889
Reclassification of common stock settled from deferred common share units	—		2		(2)		—		—		—		—
Issuance of option to purchase common stock	—		—		16		—		—		—		16
Issuance of deferred common share units	—		—		90		—		—		—		90
Issuance of restricted common stock	13		1		149		—		—		—		150
Net income	—		—		—		5,873		—		—		5,873
Other comprehensive income	—		—		—		—		200		—		200
Balance, January 31, 2022	7,336	$	733	$	45,325	$	53,583	$	(4,423)	$	—	$	95,218

Balance, May 1, 2020	8,358	$	836	$	51,334	$	43,149	$	(6,467)	$	(4,215)	$	84,637
Issuance of restricted common stock	9		1		41		—		—		—		42
Issuance of deferred common share units	—		—		90		—		—		—		90
Issuance of common stock settled from deferred common share units	12		—		—		—		—		—		—
Repurchase of common stock	(831)		(83)		(5,033)		—		—		—		(5,116)
Retirement of treasury stock	(225)		(24)		(1,360)		(2,831)		—		4,215		—
Net income	—		—		—		3,484		—		—		3,484
Other comprehensive income	—		—		—		—		270		—		270
Balance, January 31, 2021	7,323	$	730	$	45,072	$	43,802	$	(6,197)	$	—	$	83,407


	Nine Months ended January 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,873	$	3,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		217		424
Amortization of debt issuance costs		71		30
Non-cash credits and charges:
Stock-based compensation		178		132
Deferred income tax provision		1,771		1,301
Net periodic pension cost		(369)		298
Gain on debt forgiveness		(45)		(300)
Changes in assets and liabilities:
Real estate inventory and investment assets		(5,608)		(2,750)
Other assets		(34)		(297)
Accounts payable and accrued expenses		(262)		951
Accrued pension costs		—		(1,847)
Taxes receivable		(379)		—
Net cash provided by operating activities		1,413		1,426

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from corporate-owned life insurance policy		92		—
Capital expenditures		(1,259)		(3)
Net cash used in investing activities		(1,167)		(3)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt financing		6,857		5,466
Principal debt payments		(4,554)		(3,782)
Payments for debt issuance costs		(50)		(87)
Repurchase of common stock		—		(5,116)
Net cash provided by (used in) financing activities		2,253		(3,519)

Increase (decrease) in cash and cash equivalents		2,499		(2,096)
Cash and cash equivalents, beginning of period		24,801		17,502
Cash and cash equivalents, end of period	$	27,300	$	15,406

SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes refunded, net	$	3	$	—
Interest paid, net of amount capitalized	$	—	$	52
Right-of-use assets obtained in exchange for operating lease liabilities	$	42	$	—


	Principal Amount
	Available for		Outstanding
	Borrowing		Principal Amount				Principal Repayments
	January 31,		January 31,		April 30,		Three Months ended		Nine Months ended
Loan Identifier	2022		2022		2021		January 31, 2022		January 31, 2022
Revolving Line of Credit	$	2,427	$	—	$	—	$	—	$	—
Lomas Encantadas U2B P3		—		—		410		—		1,770
Hawk Site U37		—		—		—		—		—
Hawk Site U23 U40		1,678		—		30		—		30
Lavender Fields – acquisition		—		—		1,749		—		1,704
Lavender Fields – development		2,194		241		1,293		263		1,052
La Mirada		1,877		5,498		—		—		—
			$	5,739	$	3,482


			Mortgaged Property
	Interest Rate		Book Value		Capitalized Interest and Fees
	January 31,		January 31,		Three Months ended		Nine Months ended
Loan Identifier	2022		2022		January 31, 2022		January 31, 2022
Revolving Line of Credit	3.75	%	$	1,693	$	—	$	—
Hawk Site U23 U40	3.75	%		4,709		—		—
Lavender Fields – development	3.75	%		6,560		6		23
La Mirada	3.75	%		8,851		90		151


Fiscal Year	Scheduled Payments
2022	$	—
2023		241
2024		5,498
Total	$	5,739


	Three Months ended January 31,				Nine Months ended January 31,
	2022		2021		2022		2021
Sale of building	$	—	$	—	$	6,750	$	—
Oil and gas royalties		48		46		223		82
Public improvement district reimbursements		291		110		530		354
Private infrastructure reimbursement covenants		48		84		131		462
Miscellaneous other revenues		174		406		784		995
	$	561	$	646	$	8,418	$	1,893



		Number of
Restricted share awards		Shares
Non-vested as of April 30, 2021		29,000
Granted during the nine months ended January 31, 2022		13,000
Vested during the nine months ended January 31, 2022		(20,500)
Forfeited during the nine months ended January 31, 2022		—
Non-vested as of January 31, 2022		21,500


	January 31,		April 30,
	2022		2021
Land held for development or sale in New Mexico	$	55,773	$	49,918
Land held for development or sale in Colorado		4,022		3,975
Homebuilding finished inventory		1,410		417
Homebuilding construction in process		3,581		1,279
	$	64,786	$	55,589


	January 31,		April 30,
	2022		2021
Prepaid expenses	$	412	$	324
Receivables		39		37
Right-of-use assets associated with leases of office facilities		123		84
Other assets		80		172
Property		1,244		—
Equipment		235		222
Less accumulated depreciation		(209)		(194)
Property and equipment, net		1,270		28
	$	1,924	$	645


	January 31,		April 30,
	2022		2021
Real estate operations
Accrued expenses	$	970	$	658
Trade payables		1,486		1,377
Real estate customer deposits		1,373		1,769
		3,829		3,804
Corporate operations		367		654
	$	4,196	$	4,458


	Three Months ended January 31, 2022					Three Months ended January 31, 2021
	Acres Sold	Revenue		Revenue Per Acre¹		Acres Sold	Revenue		Revenue Per Acre¹
Developed
Residential	11.4	$	5,879	$	516	10.8	$	5,615	$	520
Commercial	—		—		—	—		—		—
Total Developed	11.4	$	5,879	$	516	10.8		5,615		520
Undeveloped	—		—		—	62		342		6
Total	11.4	$	5,879	$	516	72.8	$	5,957	$	82


	Land
	Development		Homebuilding		Corporate		Consolidated
Three months ended January 31, 2022 (a)
Revenues	$	7,046	$	2,770	$	—	$	9,816
Net income (loss)		770		366		(226)		910
Provision for income taxes		22		95		131		248
Depreciation		12		—		2		14
EBITDA (c)	$	804	$	461	$	(93)	$	1,172
Capital expenditures	$	—	$	4	$	—	$	4

Three months ended January 31, 2021 (a)
Revenues	$	6,531	$	1,262	$	71	$	7,864
Net income (loss)		2,284		35		(226)		2,093
Provision for income taxes		483		7		220		710
Interest income, net (b)		20		—		1		21
Depreciation		17		—		137		154
EBITDA (c)	$	2,804	$	42	$	132	$	2,978
Capital expenditures	$	—	$	3	$	—	$	3

Nine months ended January 31, 2022 (a)
Revenues	$	24,251	$	5,410	$	6,898	$	36,559
Net income		4,187		556		1,130		5,873
Provision for income taxes		612		131		958		1,701
Interest income, net (b)		—		—		1		1
Depreciation		12		—		205		217
EBITDA (c)	$	4,811	$	687	$	2,294	$	7,792
Capital expenditures	$	1	$	15	$	—	$	16
Total assets as of January 31, 2022	$	87,205	$	5,491	$	12,444	$	105,140

Nine months ended January 31, 2021 (a)
Revenues	$	19,376	$	1,464	$	486	$	21,326
Net income (loss)		4,684		(116)		(1,084)		3,484
Provision (benefit) for income taxes		810		(44)		409		1,175
Interest income (expense), net (b)		30		—		(3)		27
Depreciation		40		—		384		424
EBITDA (c)	$	5,564	$	(160)	$	(294)	$	5,110
Capital expenditures	$	—	$	3	$	—	$	3
Total assets as of January 31, 2021	$	79,193	$	2,182	$	14,517	$	95,892


	Three Months ended January 31,						Nine Months ended January 31,
					% Increase						% Increase
	2022		2021		(Decrease)		2022		2021		(Decrease)
Land sale revenues	$	5,879	$	5,957	(1)	%	$	21,535	$	17,970	20	%
Home sale revenues		3,376		1,261	(a)			6,606		1,463	(a)
Building sales and other revenues		561		646	(13)	%		8,418		1,893	(a)
Total	$	9,816	$	7,864	25	%	$	36,559	$	21,326	71	%


	Nine Months ended January 31, 2022					Nine Months ended January 31, 2021
	Acres			Revenue					Revenue
	Sold	Revenue		Per Acre¹		Acres Sold	Revenue		Per Acre¹
Developed
Residential	44.7	$	21,535	$	482	35.9	$	17,478	$	486
Commercial	—		—		—	0.4		134		335
Total Developed	44.7	$	21,535	$	482	36.3		17,612		485
Undeveloped	—		—		—	64		358		6
Total	44.7	$	21,535	$	482	100.3	$	17,970	$	179


Exhibit Number		Description
10.1		Employment Agreement, dated November 1, 2021, by and between AMREP Corporation and Christopher V. Vitale. (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed November 2, 2021)
10.2		Stock Option Grant, dated as of November 1, 2021, delivered by AMREP Corporation to Christopher V. Vitale. (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed November 2, 2021)
31.1		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2		Certification required by Rule 13a-14(a) under the Securities Exchange Act of 1934
32		Certification required pursuant to 18 U.S.C. Section 1350
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)

Date: March 10, 2022	AMREP CORPORATION
	(Registrant)

	By:	/s/ Adrienne M. Uleau
		Name: Adrienne M. Uleau
		Title: Vice President, Finance and Accounting
		(Principal Accounting Officer)

/s/ Adrienne M. Uleau
Adrienne M. Uleau
Vice President, Finance and Accounting
(Principal Financial Officer)

/s/ Christopher V. Vitale
Christopher V. Vitale
President and Chief Executive Officer
(Principal Executive Officer)