DALLAS, Aug. 13, 2001 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) Monday announced increased equity in income of investees and decreased minority interest expense produced 2001 second quarter and six months net incomes of $7.9 million and $9.7 million, or $.78 and $.96 per share, on revenues of $48.1 million and $89.5 million, as compared to net losses of $1.4 million and $7.7 million, or losses of $.13 per share and $.71 per share, on revenues of $44.4 million and $89.9 million in the comparable periods of 2000.
The primary factors contributing to net income in second quarter and six months 2001, as compared to the same periods in 2000, included:
-- Rents decreased to $32.8 million and $66 million, from $35.4
million and $70.5 million in 2000, due to sales of nine apartments
in 2000. Hotel rents increased by $1.2 million in the first six
months of 2001.
-- Equity in income of investees rose to $5.7 million and $5.7
million, up from $94,000 and $296,000.
-- Pizza parlor sales, cost of sales and gross margin were up
slightly.
-- Interest income decreased due to the collection of mortgage
receivables in 2000 and 2001.
-- Gains on land sales improved to $4.7 million for the six months,
from $3.5 million; gains on real estate sales declined to $25.8
million and $42.3 million, from $32.1 million and $48.2 million.
Total expenses for the second quarter and six months of 2001 decreased to $66.3 million and $125.6 million, from $78.4 million and $148.2 million in 2000, primarily due to lower general and administrative expenses and sales of nine apartments and 12 land parcels in 2000. In the second quarter and six months of 2001:
-- General and administrative expenses fell by $3.2 million and $4.4
million due to reduced consulting and partnership fees and reduced
cost reimbursements to the advisor.
-- Interest expenses decreased to $19.1 million and $37.2 million,
from $20.4 million and $40.6 million in the comparable periods in
2000, due to property sales.
-- Advisory fees, net income fees and incentive fees all increased
due to the addition of assets from the merger in 2000, the
increase in net income and the increase in net capital gains on
the sale of property.
-- Minority interest expenses decreased to ($95,000) and $1.5
million, from $17.9 million and $27.3 million in 2000, due to the
August 2000 acquisition of National Realty, L.P.
American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers and land. The company also has interests in mortgage loans and real estate-related entities. For more information, go to www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Income from
rents $ 32,823 $ 35,424 $ 66,036 $ 70,503
Expense from
operations 25,643 22,710 49,094 46,675
Operating income 7,180 12,714 16,942 23,828
Land sales $ 13,087 $ 5,760 $ 33,577 $ 18,953
Cost of sales 12,163 4,698 28,864 15,442
Gain on land sales 924 1,062 4,713 3,511
Pizza sales $ 8,733 $ 8,392 $ 16,559 $ 16,264
Cost of sales 7,129 6,852 13,551 13,340
Gross margin 1,604 1,540 3,008 2,924
Income from
operations $ 9,708 $ 15,316 $ 24,663 $ 30,263
Other income 6,530 578 6,942 3,121
Other expense 33,545 48,836 62,948 88,203
Gain on sale
of real estate 25,840 32,078 42,266 48,232
Net income (loss) $ 8,533 $ (864) $ 10,923 $ (6,587)
Preferred dividend
requirement (606) (563) (1,248) (1,071)
Net income (loss)
applicable to
Common shares $ 7,927 $ (1,427) $ 9,675 $ (7,658)
Earnings Per
Share
Net income
(loss) $ .78 $ (.13) $ .96 $ (.71)
Weighted average
common shares
used to compute
earnings per
share 10,128,124 10,716,533 10,116,196 10,738,003