AMREP Reports Fiscal 2024 Results

Rhea-AI Summary

AMREP (NYSE:AXR) reported net income of $6,690,000, or $1.25 per diluted share, for fiscal year 2024 ended April 30, 2024. This compares to net income of $21,790,000, or $4.11 per diluted share, for the previous year. Revenues increased to $51,369,000 in fiscal 2024 from $48,676,000 in fiscal 2023.

The 2024 results included $7,200,000 revenue from a property sale in Brighton, Colorado. The 2023 results had included a non-cash income tax benefit of $16,071,000 and a non-cash pre-tax pension settlement expense of $7,597,000. AMREP, through its subsidiaries, is a major landholder and real estate developer in New Mexico.

Positive

• Revenue increased to $51,369,000 in fiscal 2024 from $48,676,000 in fiscal 2023
• $7,200,000 revenue generated from property sale in Brighton, Colorado

Negative

• Net income decreased to $6,690,000 in fiscal 2024 from $21,790,000 in fiscal 2023
• Earnings per diluted share dropped to $1.25 in fiscal 2024 from $4.11 in fiscal 2023

Insights

Financial Analyst

AMREP Corporation's fiscal 2024 results exhibit a noticeable decline in net income compared to the previous year, despite an increase in revenue. The most striking aspect is the significant drop in net income from $21,790,000 in fiscal 2023 to $6,690,000 in fiscal 2024. This sharp decline can be attributed to two main factors: the absence of the non-cash income tax benefit of $16,071,000 present in 2023 and the prior year's non-cash pre-tax pension settlement expense of $7,597,000. This highlights the impact of non-operational items on the financial performance. Investors should note that the core operations, as indicated by the revenue increase from $48,676,000 to $51,369,000, show a positive trend.

From an earnings per share (EPS) perspective, the decrease from $4.11 to $1.25 in diluted EPS is substantial. This decline in EPS may cause concern among investors regarding the company's profitability and overall financial health. The marginal increase in revenue, although positive, could be overshadowed by the significant drop in net income and EPS. It is important for investors to differentiate between the non-cash impacts and core business performance to make well-informed decisions.

Market Research Analyst

Looking at AMREP Corporation’s results from a market perspective, the increase in revenue by $2,693,000 year-over-year is a positive indicator of operational growth. This growth is primarily driven by property sales, including a notable $7,200,000 sale in Brighton, Colorado. However, this revenue spike is partially mitigated by the considerable reduction in net income and EPS. AMREP’s focus on real estate development and homebuilding in New Mexico remains a core strength, with the revenue growth supporting a positive market outlook for these segments.

Investors should also consider the weighted average number of common shares outstanding, which has remained relatively stable. This stability suggests that AMREP has not engaged in significant equity dilution, which is generally favorable to existing shareholders. Considering the real estate market trends and AMREP's strategic focus, the long-term growth prospects remain intact, but the immediate reaction to the fiscal results might be mixed due to the stark contrast in net income figures.

HAVERTOWN, Pa., July 23, 2024 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE:AXR) today reported net income of $6,690,000, or $1.25 per diluted share, for its 2024 fiscal year ended April 30, 2024 compared to net income of $21,790,000, or $4.11 per diluted share, for the same period of the prior year. Revenues were $51,369,000 for fiscal 2024 and $48,676,000 for fiscal 2023.

Results for 2024 included revenue of $7,200,000 from the sale of property in Brighton, Colorado. Results for 2023 included a non-cash income tax benefit of $16,071,000 as a result of a worthless stock deduction related to the Company’s former fulfillment services business and a non-cash pre-tax pension settlement general and administrative expense of $7,597,000 due to the Company’s defined benefit pension plan paying certain lump sum payouts of pension benefits to former employees and the transfer of nearly all remaining pension benefit liabilities to an insurance company through an annuity purchase.

More information about the Company’s financial performance in 2024 and 2023 may be found in AMREP Corporation’s financial statements on Form 10-K which have today been filed with the Securities and Exchange Commission and will be available on AMREP’s website (www.amrepcorp.com/sec-filings/).

AMREP Corporation, through its subsidiaries, is a major holder of land, leading developer of real estate and award-winning homebuilder in New Mexico.        

FINANCIAL HIGHLIGHTS
		Twelve Months Ended April 30,
			2024			2023
Revenues		$	51,369,000		$	48,676,000
Net income		$	6,690,000		$	21,790,000
Income per share – basic		$	1.26		$	4.13
Income per share – diluted		$	1.25		$	4.11
Weighted average number of common shares outstanding – basic			5,300,000			5,282,000
Weighted average number of common shares outstanding – diluted			5,347,000			5,307,000

CONTACT:	Adrienne M. Uleau
	Vice President, Finance and Accounting
	(610) 487-0907

FAQ

What was AMREP 's (AXR) net income for fiscal year 2024?

AMREP (AXR) reported a net income of $6,690,000 for fiscal year 2024 ended April 30, 2024.

How did AMREP's (AXR) revenue change in fiscal 2024 compared to 2023?

AMREP's (AXR) revenue increased to $51,369,000 in fiscal 2024 from $48,676,000 in fiscal 2023.

What was the earnings per diluted share for AMREP (AXR) in fiscal 2024?

AMREP (AXR) reported earnings of $1.25 per diluted share for fiscal year 2024.

Did AMREP (AXR) report any significant property sales in fiscal 2024?

Yes, AMREP (AXR) reported $7,200,000 in revenue from the sale of property in Brighton, Colorado during fiscal 2024.