AMREP Reports Third Quarter Fiscal 2023 Results

Rhea-AI Summary

AMREP Corporation (NYSE:AXR) reported a significant increase in net income for the 2023 fiscal third quarter, achieving $16,574,000 or $3.12 per diluted share, compared to $910,000 or $0.12 per diluted share the previous year. For the first nine months of 2023, net income reached $22,107,000 or $4.17 per diluted share, up from $5,873,000 or $0.80 per diluted share in 2022. Revenues were $9,117,000 for Q3 and $35,975,000 for the first nine months, showing slight growth over the previous year. Notably, the company recognized a $2,336,000 pension settlement expense and a tax benefit of $16,071,000.

Positive

• Net income for Q3 2023 increased to $16,574,000 from $910,000 YoY.
• Earnings per share (EPS) rose to $3.12 from $0.12 YoY.
• Net income for the first nine months of 2023 was $22,107,000, up from $5,873,000 YoY.
• EPS for the first nine months of 2023 reached $4.17, up from $0.80 YoY.

Negative

• Pension settlement expense of $2,336,000 could indicate future financial liabilities.

HAVERTOWN, Pa., March 13, 2023 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE:AXR) today reported net income of $16,574,000, or $3.12 per diluted share, for its 2023 fiscal third quarter ended January 31, 2023 compared to net income of $910,000, or $0.12 per diluted share, for the same period of the prior year. For the first nine months of 2023, AMREP had net income of $22,107,000, or $4.17 per diluted share, compared to net income of $5,873,000, or $0.80 per diluted share, for the same period of 2022. Revenues were $9,117,000 and $35,975,000 for the third quarter and first nine months of 2023 and $9,391,000 and $35,404,000 for the third quarter and first nine months of 2022.

During the third quarter of 2023, AMREP recognized a non-cash pre-tax pension settlement expense of $2,336,000 as a result of its defined benefit pension plan paying certain lump sum payouts of pension benefits to former employees and a non-cash income tax benefit of $16,071,000 as a result of a worthless stock deduction related to its former fulfillment services business.

More information about the Company’s financial performance may be found in AMREP Corporation’s financial statements on Form 10-Q 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

	Three Months Ended January 31,
	2023			2022
Revenues	$	9,117,000		$	9,391,000
Net income	$	16,574,000		$	910,000
Income per share – basic	$	3.14		$	0.12
Income per share – diluted	$	3.12		$	0.12
Weighted average number of common shares outstanding – basic		5,284,000			7,363,000
Weighted average number of common shares outstanding – diluted		5,310,000			7,385,000

	Nine Months Ended January 31,
	2023			2022
Revenues	$	35,975,000		$	35,404,000
Net income	$	22,107,000		$	5,873,000
Income per share – basic	$	4.19		$	0.80
Income per share – diluted	$	4.17		$	0.80
Weighted average number of common shares outstanding – basic		5,280,000			7,357,000
Weighted average number of common shares outstanding – diluted		5,304,000			7,380,000

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

FAQ

What are AMREP Corporation's earnings results for Q3 2023?

AMREP Corporation reported net income of $16,574,000 for Q3 2023, equating to $3.12 per diluted share.

How does AMREP Corporation's revenue compare in Q3 2023 and 2022?

AMREP's revenues for Q3 2023 were $9,117,000, slightly down from $9,391,000 in Q3 2022.

What is the forecast for AMREP Corporation's financial performance?

While AMREP has shown significant net income growth, the pension settlement expense raises concerns for future liabilities.

What was AMREP Corporation's EPS for the first nine months of 2023?

For the first nine months of 2023, AMREP's earnings per share were $4.17, up from $0.80 in the same period of 2022.