Source: Resource America, Inc.

Resource America, Inc. Reports Operating Results for the Third Quarter Ended September 30, 2015

PHILADELPHIA, PA--(Marketwired - Nov 5, 2015) - Resource America, Inc. (NASDAQ: REXI)

Third Quarter 2015 Highlights

  • Adjusted net income attributable to common shareholders of $762,000 (see Schedule I)
  • Increased gross assets under management by 12% to $21.7 billion since September 30, 2014
  • Book value per common share of $7.20
  • Repurchased 1,306,301 shares at an average price of $7.91

Third Quarter 2015 Results

Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $762,000, or $0.03 per common share-diluted, and $6.4 million, or $0.28 per common share-diluted, for the three and nine months ended September 30, 2015 as compared to adjusted net income attributable to common shareholders of $2.8 million, or $0.13 per common share-diluted, and $10.2 million, or $0.46 per common share-diluted, for the three and nine months ended September 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 $1.1 million, or $0.05 per common share-diluted, and $2.4 million, or $0.11 per common share-diluted, for the three and nine months ended September 30, 2015 as compared to GAAP net income attributable to common shareholders of $1.5 million, or $0.07 per common share-diluted, and $5.2 million, or $0.24 per common share-diluted, for the three and nine months ended September 30, 2014. 

Assets Under Management

The following table details the Company's gross assets under management by operating segment, which increased by $2.3 billion (12%) from September 30, 2014 to 2015 (in billions):

    September 30,
    2015   2014
Financial fund management   $ 16.9   $ 15.7
Real estate     4.0     3.1
Commercial finance     0.8     0.6
    $ 21.7   $ 19.4
             
  Net assets under management (1)   $ 9.6   $ 9.2
(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 Third Quarter Ended September 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, increased total assets to $1.1 billion at September 30, 2015, an increase of 16%, from $956.0 million at September 30, 2014.

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 had the following highlights:

  • Raised $82.9 million during the three months ended September 30, 2015 and a total of $352.4 million since inception.
  • Acquired $110.9 million of assets and placed $53.5 million of financing during the three months ended September 30, 2015.
  • Increased total assets to $382.0 million at September 30, 2015.

Resource Real Estate Diversified Income Fund, a public closed-end real estate focused investment company managed by the Company, has raised $78.0 million since inception.

On October 5, 2015, Resource Innovation Office REIT, Inc. commenced its $1.1 billion initial public offering of common stock. Resource Innovation Office Advisor, LLC, a subsidiary of Resource Real Estate, will be the external manager.

Resource Apartment REIT III, Inc. filed a registration statement with the SEC on November 2, 2015 to raise up to $1.0 billion.

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:

  • Originated $147.8 million in new commercial real estate loans during the three months ended September 30, 2015.

  • In August 2015, completed a $312.9 million commercial real estate securitization that issued $223.7 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.71% basis points.

  • In September 2015, closed a new three-year, $250.0 million commercial real estate term facility with Morgan Stanley Bank, N.A. to finance the continued expansion of RSO's core commercial real estate lending business.

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

  • The Company's real estate operating segment increased its gross assets under management at September 30, 2015 to $4.0 billion, an increase of $953.0 million, or 31%, from September 30, 2014.

  • Real estate revenues increased 13% and 32% to $16.2 million and $54.3 million for the three and nine months ended September 30, 2015, respectively, as compared to $14.3 million and $41.0 million for the three and nine months ended September 30, 2014.

  • Resource Real Estate Management, Inc., the Company's property management subsidiary, managed 19,211 apartment units as of September 30, 2015 as compared to 20,740 units as of September 30, 2014.

FINANCIAL FUND MANAGEMENT:

Credit Asset Management

CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture, closed Apidos CLO XXII, Ltd. in October 2015. CCP has now closed CLOs issuing notes with a total par value of $8.3 billion. 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. At September 30, 2015, the Company had a 24% interest in this joint venture.

The following additional highlight contributed to the Company's financial fund asset management operations:

  • The Company's financial fund management operating segment increased its gross assets under management at September 30, 2015 to $16.9 billion, an increase of $1.2 billion, or 8%, from September 30, 2014.

CORPORATE:

Share Repurchases

  • On August 13, 2015, the Company's Board of Directors authorized the repurchase of $25.0 million of its common stock. $14.6 million remains available for repurchase under this plan.

  • The Company repurchased 1,306,301 of its shares during the third quarter ended September 30, 2015 at an average price of $7.91 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 October 30, 2015 to holders of record as of the close of business on October 19, 2015. 

  • RSO's Board of Directors declared a cash dividend of $0.64 per common share for its three months ended September 30, 2015.

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 Innovation REIT was declared effective by the SEC on October 5, 2015. A written prospectus relating to these securities may be obtained by contacting Resource Securities, Inc., 1845 Walnut Street, 18th Floor, Philadelphia, PA 19103.

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.

A registration statement relating to securities offered by Income Fund was declared effective by the SEC on November 3, 2013. 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)  
   
    September 30,
 2015
    December 31,
 2014
 
    (unaudited)        
ASSETS            
Cash   $ 18,102     $ 27,542  
Restricted cash     941       725  
Receivables     1,020       636  
Loans and receivables from managed entities and related parties, net     25,138       30,303  
Investments in real estate, net     16,191       17,097  
Investment securities, at fair value     10,218       9,540  
Investments in unconsolidated loan manager     32,082       39,655  
Investments in unconsolidated entities     18,349       13,089  
Assets of consolidated variable interest entity ("VIE")-RSO:                
  Cash and cash equivalents (including restricted cash)     128,845       202,043  
  Investments, at fair value     260,315       296,506  
  Loans     2,234,979       2,039,655  
  Investments in real estate and unconsolidated entities     56,038       60,007  
    Other assets     105,865       129,801  
      Total assets of consolidated VIE-RSO     2,786,042       2,728,012  
                 
Property and equipment, net     5,533       5,063  
Deferred tax assets, net     19,449       23,304  
Other assets     10,929       5,416  
  Total assets   $ 2,943,994     $ 2,900,382  
                 
LIABILITIES AND EQUITY                
Liabilities:                
  Accrued expenses and other liabilities   $ 20,429     $ 22,279  
  Payables to managed entities and related parties     4,417       3,015  
  Borrowings     20,896       20,412  
  Liabilities of consolidated VIE-RSO:                
    Borrowings     1,881,240       1,717,132  
    Other liabilities     49,451       57,101  
      Total liabilities of consolidated VIE-RSO     1,930,691       1,774,233  
        Total liabilities     1,976,433       1,819,939  
                 
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 1,143,242 and 833,082), respectively     338       335  
  Additional paid-in capital     310,663       308,134  
  Accumulated deficit     (28,676 )     (23,663 )
  Treasury stock, at cost; 13,590,239 and 11,764,417 shares, respectively     (134,969 )     (120,182 )
  Accumulated other comprehensive loss     (1,696 )     (1,030 )
    Total stockholders' equity     145,660       163,594  
  Noncontrolling interests     315       306  
  Noncontrolling interests attributable to consolidated VIE-RSO     821,586       916,543  
    Total equity     967,561       1,080,443  
    Total liabilities and equity   $ 2,943,994     $ 2,900,382  
                     
                     
                     
RESOURCE AMERICA, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, except per share data)  
(unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2015     2014     2015     2014  
REVENUES:                        
Real estate (includes revenues of $2,422, $2,643, $7,925 and $7,628 related to RSO)   $ 16,195     $ 14,289     $ 54,277     $ 41,012  
Financial fund management (includes revenues of $1,372, $1,525, $4,260 and $2,485 related to RSO)     4,408       5,557       14,326       20,773  
Commercial finance (includes no revenues related to RSO)     66       (17 )     66       (158 )
      20,669       19,829       68,669       61,627  
Revenues from consolidated VIE-RSO     23,705       25,811       72,267       74,884  
Elimination of consolidated VIE-RSO revenues attributed to operating segments     (3,697 )     (4,136 )     (12,074 )     (10,056 )
  Total revenues     40,677       41,504       128,862       126,455  
COSTS AND EXPENSES:                                
Real estate     11,223       9,384       34,804       27,364  
Financial fund management     3,369       2,812       9,513       9,980  
Commercial finance     434       125       1,471       351  
General and administrative     4,053       2,426       11,531       8,309  
Provision for credit losses     (400 )     559       278       3,342  
Depreciation and amortization     504       453       1,476       1,369  
      19,183       15,759       59,073       50,715  
Expenses from consolidated VIE-RSO     15,994       15,447       91,589       43,585  
Elimination of consolidated VIE-RSO expenses attributed tooperating segments     (3,077 )     (3,502 )     (9,813 )     (9,374 )
  Total expenses     32,100       27,704       140,849       84,926  
OPERATING INCOME (LOSS)     8,577       13,800       (11,987 )     41,529  
                                 
OTHER INCOME (EXPENSE):                                
Gain (loss) on sale of investment securities, net     --       69       --       439  
Impairment on investments in unconsolidated entities     (151 )     --       (4,497 )     --  
Interest expense     (450 )     (467 )     (1,326 )     (1,447 )
Other income (expense), net     (52 )     80       15       263  
      (653 )     (318 )     (5,808 )     (745 )
Other income (expense), net, from consolidated VIE-RSO     5,215       3,730       32,268       17,527  
Elimination of consolidated VIE-RSO other income, net attributed to operating segments     --       11       15       29  
      4,562       3,423       26,475       16,811  
Income (loss) from continuing operations before taxes     13,139       17,223       14,488       58,340  
Income tax provision (benefit)     1,355       1,741       3,456       4,991  
Income tax provision (benefit)-RSO     (1,796 )     (237 )     2,969       (667 )
Net income (loss)     13,580       15,719       8,063       54,016  
Net (income) loss attributable to noncontrolling interests     (37 )     11       (92 )     (33 )
Net (income) loss attributable to noncontrolling interests of consolidated VIE-RSO     (14,643 )     (14,214 )     (10,388 )     (48,759 )
Net income (loss) attributable to common shareholders   $ (1,100 )   $ 1,516     $ (2,417 )   $ 5,224  
                                 
Basic earnings (loss) per share:                                
Net income (loss)   $ (0.05 )   $ 0.07     $ (0.11 )   $ 0.25  
Weighted average shares outstanding     22,067       21,109       22,629       20,586  
                                 
Diluted earnings (loss) per share:                                
Net income (loss)   $ (0.05 )   $ 0.07     $ (0.11 )   $ 0.24  
Weighted average shares outstanding     22,067       22,301       22,629       22,124  
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENT OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the three months ended September 30, 2015:  
   
    RAI     RSO     Eliminations     Consolidated  
REVENUES:                        
Real estate   $ 16,195     $ --     $ --     $ 16,195  
Financial fund management     4,408       --       --       4,408  
Commercial finance     66       --       --       66  
      20,669       --       --       20,669  
Revenues from consolidated VIE-RSO     --       23,705       --       23,705  
Elimination of consolidated VIE-RSO revenues attributed to operating segments     --       --       (3,697 )     (3,697 )
  Total revenues     20,669       23,705       (3,697 )     40,677  
COSTS AND EXPENSES:                                
Real estate     11,223       --       --       11,223  
Financial fund management     3,369       --       --       3,369  
Commercial finance     434       --       --       434  
General and administrative     4,053       --       --       4,053  
Provision for credit losses     (400 )     --       --       (400 )
Depreciation and amortization     504       --       --       504  
      19,183       --       --       19,183  
Expenses of consolidated VIE-RSO     --       15,994       --       15,994  
Elimination of consolidated VIE-RSO expenses attributed to operating segments     --       --       (3,077 )     (3,077 )
  Total expenses     19,183       15,994       (3,077 )     32,100  
OPERATING INCOME (LOSS)     1,486       7,711       (620 )     8,577  
                                 
OTHER INCOME (EXPENSE):                                
Impairment on investments in unconsolidated entitites     (151 )     --       --       (151 )
Interest expense     (450 )     --       --       (450 )
Other income (expense), net     386       --       (438 )     (52 )
Other income (expense), net, from consolidated VIE-RSO     --       5,215       --       5,215  
  Total other income (expense)     (215 )     5,215       (438 )     4,562  
Net income (loss) attributable to noncontrolling interest     1,271       12,926       (1,058 )     13,139  
Income tax provision (benefit)     1,355       (1,796 )     --       (441 )
Net income (loss)     (84 )     14,722       (1,058 )     13,580  
Net (income) loss attributable to noncontrolling interests     (37 )     --       --       (37 )
Net (income) loss attributable to noncontrolling interests-RSO     --       (7,944 )     (6,699 )     (14,643 )
Net income (loss) attributable to common shareholders   $ (121 )   $ 6,778     $ (7,757 )   $ (1,100 )
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENT OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the three months ended September 30, 2014:  
   
    RAI     RSO     Eliminations     Consolidated  
REVENUES:                        
Real estate   $ 14,289     $ --     $ --     $ 14,289  
Financial fund management     5,557       --       --       5,557  
Commercial finance     (17 )     --       --       (17 )
      19,829       --       --       19,829  
Revenues from consolidated VIE-RSO     --       25,811       --       25,811  
Elimination of consolidated VIE-RSO revenues attributed to operating segments     --       --       (4,136 )     (4,136 )
Total revenues     19,829       25,811       (4,136 )     41,504  
COSTS AND EXPENSES:                                
Real estate     9,384       --       --       9,384  
Financial fund management     2,812       --       --       2,812  
Commercial finance     125       --       --       125  
General and administrative     2,426       --       --       2,426  
Provision for credit losses     559       --       --       559  
Depreciation and amortization     453       --       --       453  
      15,759       --       --       15,759  
Expenses of consolidated VIE-RSO     --       15,447       --       15,447  
Elimination of consolidated VIE-RSO expenses attributed to operating segments     --       --       (3,502 )     (3,502 )
Total expenses     15,759       15,447       (3,502 )     27,704  
OPERATING INCOME (LOSS)     4,070       10,364       (634 )     13,800  
                                 
OTHER INCOME (EXPENSE):                                
Gain (loss) on sale of investment securities, net     69       --       --       69  
Interest expense     (467 )     --       --       (467 )
Other income (expense), net     652       --       (572 )     80  
Other income (expense), net, from consolidated VIE-RSO     --       3,730       --       3,730  
Elimination of consolidated VIE-RSO other income, net     --       --       11       11  
  Total other income (expense)     254       3,730       (561 )     3,423  
Income (loss) from continuing operations before taxes     4,324       14,094       (1,195 )     17,223  
Income tax provision (benefit)     1,741       (237 )     --       1,504  
Net income (loss)     2,583       14,331       (1,195 )     15,719  
Net income (loss) attributable to noncontrolling interest     11       --       --       11  
Net (income) loss attributable to noncontrolling interests-RSO     --       (7,003 )     (7,211 )     (14,214 )
Net income (loss) attributable to common shareholders   $ 2,594     $ 7,328     $ (8,406 )   $ 1,516  
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENT OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the nine months ended September 30, 2015:  
   
    RAI     RSO     Eliminations     Consolidated  
REVENUES:                        
Real estate   $ 54,277     $ --     $ --     $ 54,277  
Financial fund management     14,326       --       --       14,326  
Commercial finance     66       --       --       66  
      68,669       --       --       68,669  
Revenues from consolidated VIE-RSO     --       72,267       --       72,267  
Elimination of consolidated VIE-RSO revenues attributed to operating segments     --       --       (12,074 )     (12,074 )
  Total revenues     68,669       72,267       (12,074 )     128,862  
COSTS AND EXPENSES:                                
Real estate     34,804       --       --       34,804  
Financial fund management     9,513       --       --       9,513  
Commercial finance     1,471       --       --       1,471  
General and administrative     11,531       --       --       11,531  
Provision for credit losses     278       --       --       278  
Depreciation and amortization     1,476       --       --       1,476  
      59,073       --       --       59,073  
Expenses of consolidated VIE-RSO     --       91,589       --       91,589  
Elimination of consolidated VIE-RSO expenses attributed to operating segments     --       --       (9,813 )     (9,813 )
  Total expenses     59,073       91,589       (9,813 )     140,849  
OPERATING INCOME (LOSS)     9,596       (19,322 )     (2,261 )     (11,987 )
                                 
OTHER INCOME (EXPENSE):                                
Impairment on investments in unconsolidated entities     (4,497 )     --       --       (4,497 )
Interest expense     (1,326 )     --       --       (1,326 )
Other income (expense), net     1,389       --       (1,374 )     15  
Other income (expense), net, from consolidated VIE-RSO     --       32,268       --       32,268  
Elimination of consolidated VIE-RSO other income, net     --       --       15       15  
  Total other income (expense)     (4,434 )     32,268       (1,359 )     26,475  
Income (loss) from continuing operations before taxes     5,162       12,946       (3,620 )     14,488  
Income tax provision (benefit)     3,456       2,969       --       6,425  
Net income (loss)     1,706       9,977       (3,620 )     8,063  
Net (income) loss attributable to noncontrolling interests     (92 )     --       --       (92 )
Net (income) loss attributable to noncontrolling interests-RSO     --       (24,808 )     14,420       (10,388 )
Net income (loss) attributable to common shareholders   $ 1,614     $ (14,831 )   $ 10,800     $ (2,417 )
                                 
                                 
                                 
RESOURCE AMERICA, INC.  
CONSOLIDATING STATEMENT OF OPERATIONS  
(in thousands)  
(unaudited)  
   
The following table presents the consolidating statement of operations for the nine months ended September 30, 2014:  
   
    RAI     RSO     Eliminations     Consolidated  
REVENUES:                        
Real estate   $ 41,012     $ --     $ --     $ 41,012  
Financial fund management     20,773       --       --       20,773  
Commercial finance     (158 )     --       --       (158 )
      61,627       --       --       61,627  
Revenues from consolidated VIE-RSO     --       74,884       --       74,884  
Elimination of consolidated VIE-RSO revenues attributed to operating segments     --       --       (10,056 )     (10,056 )
  Total revenues     61,627       74,884       (10,056 )     126,455  
COSTS AND EXPENSES:                                
Real estate     27,364       --       --       27,364  
Financial fund management     9,980       --       --       9,980  
Commercial finance     351       --       --       351  
General and administrative     8,309       --       --       8,309  
Provision for credit losses     3,342       --       --       3,342  
Depreciation and amortization     1,369       --       --       1,369  
      50,715       --       --       50,715  
Expenses of consolidated VIE-RSO     --       43,585       --       43,585  
Elimination of consolidated VIE-RSO expenses attributed to operating segments     --       --       (9,374 )     (9,374 )
  Total expenses     50,715       43,585       (9,374 )     84,926  
OPERATING INCOME (LOSS)     10,912       31,299       (682 )     41,529  
                                 
OTHER INCOME (EXPENSE):                                
Gain (loss) on sale of investment securities, net     439       --       --       439  
Interest expense     (1,447 )     --       --       (1,447 )
Other income (expense), net     1,979       --       (1,716 )     263  
Other income (expense), net, from consolidated VIE-RSO     --       17,527       --       17,527  
Elimination of consolidated VIE-RSO other income, net     --       --       29       29  
  Total other income (expense)     971       17,527       (1,687 )     16,811  
Income (loss) from continuing operations before taxes     11,883       48,826       (2,369 )     58,340  
Income tax provision (benefit)     4,991       (667 )     --       4,324  
Net income (loss)     6,892       49,493       (2,369 )     54,016  
Net (income) loss attributable to noncontrolling interests     (33 )     --       --       (33 )
Net (income) loss attributable to noncontrolling interests-RSO     --       (12,372 )     (36,387 )     (48,759 )
Net income (loss) attributable to common shareholders   $ 6,859     $ 37,121     $ (38,756 )   $ 5,224  
                                 
                                 
                                 

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     Nine Months Ended
    September 30,     September 30,
    2015     2014     2015     2014
Net income (loss) attributable to common shareholders - GAAP   $ (1,100 )   $ 1,516     $ (2,417 )   $ 5,224
                               
Adjustments, net of tax:                              
Reduction of income, net of eliminations, attributable to consolidation of RSO     979       1,078       4,031       2,065
Impairment of investment in unconsolidated loan manager     --       --       2,520       --
Loss attributable to commercial finance     123       382       948       2,388
Deferred tax provision     760       (142 )     1,288       485
Adjusted net income attributable to common shareholders   $ 762     $ 2,834     $ 6,370     $ 10,162
                               
Adjusted weighted average diluted shares outstanding (2)     22,337       22,301       22,900       22,124
                               
Adjusted net income attributable to common shareholders per common per share-diluted   $ 0.03     $ 0.13     $ 0.28     $ 0.46
                               
(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 nine months ended September 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 270,000 and 271,000 shares for the three and nine months ended September 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
215-546-5005
Resource America, Inc.
One Crescent Drive, Suite 203
Philadelphia, PA 19112