PHILADELPHIA, PA, Dec 08, 2008 (MARKET WIRE via COMTEX News Network) -- Resource America, Inc. (NASDAQ: REXI) (the "Company") reported
adjusted income from continuing operations, a non-GAAP measure, of
$539,000, or $0.03 per common share-diluted and $11.5 million, or
$0.62 per common share-diluted for the fourth quarter and fiscal year
ended September 30, 2008, respectively, as compared to $3.3 million,
or $0.17 per common share-diluted and $19.5 million, or $1.02 per
common share-diluted for the fourth quarter and fiscal year ended
September 30, 2007, respectively. A reconciliation of the Company's
reported GAAP (loss) income from continuing operations to adjusted
income from continuing operations, a non-GAAP measure, is included as
Schedule I to this release.
The Company recorded non-cash charges, net of tax, of $5.7 million
and $20.0 million for the fourth quarter and fiscal year ended
September 30, 2008, respectively, primarily related to residual
interests underlying some of its funds secured by trust preferred
securities. In conjunction therewith, the Company reported a net
loss after discontinued operations of $9.2 million, or $0.52 per
common share-diluted for the fourth quarter ended September 30, 2008,
and a net loss after discontinued operations of $26.2 million, or
$1.50 per common share-diluted for the fiscal year ended September
30, 2008, as compared to a net loss of $11.0 million or $0.63 per
common share-diluted for the fourth quarter ended September 30, 2007,
and net income of $3.7 million, or $0.19 per common share-diluted for
the fiscal year ended September 30, 2007.
The Company also reports:
-- Retail Capital Fundraising. During the latter part of fiscal 2008, the
Company launched three funds through its retail broker-dealer channel with
targeted fundraising of approximately $280.0 million. Two funds launched by
LEAF Financial Corp. ("LEAF"), the Company's commercial finance subsidiary,
have raised $39.7 million from August 2008 through December 5, 2008 and the
third fund, launched by Resource Real Estate Holdings, Inc. ("Resource Real
Estate"), has raised $16.6 million from July 2008 through December 5, 2008.
-- Distressed Real Estate Funds. The Company through its distressed real
estate joint ventures has closed on $71.1 million of acquisitions,
including committed capital. The Company anticipates acquiring at least an
additional $140.0 million of distressed assets that it will manage during
fiscal 2009 and anticipates utilizing its retail broker-dealer channel to
launch a $50.0 million fund to expand its distressed real estate
operations.
-- LEAF Fund Financing Activities. During November 2008, the Company
through LEAF Equipment Leasing Income Fund III, L.P. ("Fund III"), an
unconsolidated leasing partnership managed by LEAF, entered into two
financing facilities totaling $355.0 million including: i) a $205.0 million
credit facility led by Morgan Stanley Bank that was used to acquire the
assets of NetBank Business Finance and ii) a five-year revolving $150.0
million credit facility that refinanced a maturing credit facility and will
also fund future originations.
-- Reduced Balance Sheet Exposure. The Company has reduced to $725,000,
net of tax, its balance sheet exposure to future valuation adjustments
related to investments in trust preferred securities reported as
investments in unconsolidated entities and direct investments in
collateralized debt obligations secured by trust preferred securities. The
Company has no exposure to valuation adjustments for residential mortgage-
backed securities.
-- Reduction of General and Administrative Expenses. The Company
instituted measures in fiscal 2008 to reduce its general and administrative
expenses which it expects will result in savings of approximately $17.0
million on an annualized basis beginning in January 2009. Operating results
for the fourth quarter and fiscal year ended September 30, 2008 were
impacted by $1.8 million of severance expenses.
-- Debt Reduction. As of September 30, 2008, the Company reduced its
total consolidated borrowings outstanding to $554.1 million from $706.4
million at September 30, 2007, a decrease of 22%. At September 30, 2008,
borrowings include $214.5 million of borrowings consolidated under FIN 46-R
as to which there is no recourse to the Company, $272.7 million of non-
recourse revolving credit facilities and promissory notes at LEAF and $66.9
million of other debt, which includes $13.7 million of mortgage debt
secured by properties owned by the Company's subsidiaries.
-- Adjusted Revenue and Adjusted Operating Income. For the fourth quarter
and fiscal year ended September 30, 2008, the Company reported adjusted
revenues of $38.0 million and $179.4 million, respectively, as compared to
$34.0 million and $129.7 million for the fourth quarter and fiscal year
ended September 30, 2007, respectively. For the fourth quarter and fiscal
year ended September 30, 2008, the Company reported adjusted operating
income of $4.4 million and $56.9 million, respectively, as compared to
$15.9 million and $60.7 million for the fourth quarter and fiscal year
ended September 30, 2007, respectively. Adjusted revenues and adjusted
operating income, both non-GAAP measures, include $6.0 million and $23.5
million of pre-tax fair value adjustments on investments reported under the
equity method of accounting for the fourth quarter and fiscal year ended
September 30, 2008, respectively, as compared to $2.3 million and $2.9
million for the fourth quarter and fiscal year ended September 30, 2007,
respectively. A reconciliation of the Company's reported GAAP revenue and
operating (loss) income to adjusted revenue and operating income is
included as Schedule II to this release.
-- Year Over Year Increase in Assets Under Management. The Company's
assets under management were $18.0 billion at September 30, 2008, a $1.3
billion increase (8%) from September 30, 2007 and a $782.0 million decrease
(4%) from June 30, 2008.
Jonathan Cohen, President and CEO of the Company, commented, "Our
results reflect the unprecedented challenges in the world-wide
financial system. These have been difficult months, but we are
pleased to have been able to: reduce our general and administrative
costs and our balance sheet exposure; continue to raise funds through
our retail channel and increase our assets under management; and to
obtain financing for our leasing partnerships where lenders have
provided our limited partnerships with new and extended non-recourse
facilities of approximately $350.0 million in just the last month.
We believe that we have positioned the Company for profitability from
continuing operations. We believe that the success of our approach
will become evident in calendar 2009 when our cost structure will be
much leaner, our new fundraising should add to our profitability and
our new distressed funds obtain economies of scale. Our fundraising
ability through our retail channel and our formidable platform will
set the stage for great things in the future. LEAF, our commercial
finance asset manager, is already the third largest non-bank leasing
company in the United States and it continues to raise capital and
sign new financings. We are hopeful that when the smoke clears we
will find ourselves with the preeminent commercial finance platform."
Assets Under Management
The following table details the Company's assets under management by
operating segment:
At September 30,
-----------------------------
2008 2007
-------------- --------------
Financial fund management $ 14.7 billion $ 14.0 billion
Real estate 1.7 billion 1.6 billion
Commercial finance 1.6 billion 1.1 billion
-------------- --------------
$ 18.0 billion $ 16.7 billion
============== ==============
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/A
for the fiscal year ended September 30, 2007.
Book Value
As of September 30, 2008, the Company's GAAP book value per common
share was $8.17 per share. Total stockholders' equity was $143.7
million as of September 30, 2008 as compared to $185.3 million as of
September 30, 2007. Total common shares outstanding were 17,595,934
as of September 30, 2008 as compared to 17,417,307 as of September
30, 2007.
Other Highlights for the Fourth Quarter and Fiscal Year Ended
September 30, 2008 and Recent Developments
-- LEAF's assets under management at September 30, 2008 were $1.6
billion, an increase of $442.0 million (40%) from September 30, 2007.
-- LEAF began a public offering of up to $200.0 million of limited
partnership interests in August 2008 for LEAF Equipment Finance Fund 4,
L.P. ("Fund 4"), an equipment leasing partnership, and for LEAF Commercial
Finance Fund ("LCFF"), a $25.0 million offering in the form of 8.25%
promissory notes. Through December 5, 2008, LEAF had raised $39.7 million
for Fund 4 and LCFF.
-- LEAF announced that it had successfully completed the public offering
of its third public investment partnership, Fund III, on April 25, 2008,
which raised $120.0 million. Fund III closed within 14 months, 42% earlier
than the two-year original projection and utilized a syndicate of more than
70 broker-dealers.
-- Resource Real Estate, the Company's real estate asset manager that
invests in and manages real estate investment vehicles on behalf of itself
and for outside investors and operates the Company's commercial real estate
debt platform, increased its assets under management to $1.7 billion at
September 30, 2008, an increase of $69.0 million (4%) from September 30,
2007. Since October 1, 2007, Resource Real Estate has acquired $102.0
million in real estate assets for its investment vehicles.
-- Resource Real Estate commenced fundraising for Resource Real Estate
Investors 7, L.P. ("RRE 7"), a $55.0 million offering that will invest in
multifamily real estate assets. Since July 2008, $16.6 million has been
raised through RRE 7. We anticipate closing this fund in late fiscal 2009.
In addition, Resource Real Estate intends to launch Resource Real Estate
Opportunity Fund L.P., a real estate partnership focused on investing in
discounted real estate.
-- Resource Real Estate received a partial paydown of $18.4 million in
connection with the substantial settlement of a discounted loan secured by
the Evening Star Building in Washington, D.C. and recognized a $7.5 million
pre-tax gain. The Company's remaining investment is a $3.6 million
discounted mezzanine note secured by a 5% interest in the property.
-- Resource Real Estate's wholly-owned subsidiary, Resource Residential,
a multifamily and commercial property management company, completed its
first full year of operations. As of September 30, 2008, Resource
Residential employed 253 property management personnel; as of today it
employs over 300 people.
-- Resource Real Estate increased the apartment units it manages or whose
management it supervises to 15,758 at September 30, 2008. This includes a
portfolio of 44 multifamily properties representing 10,877 apartment units
managed by Resource Residential.
-- In the fourth quarter ended September 30, 2008, Resource Real Estate
acquired one distressed note for its distressed joint venture for $9.25
million and subsequently acquired two distressed multifamily assets for
$13.2 million in November 2008 for this joint venture.
-- The Company's financial fund management operating segment increased
its assets under management at September 30, 2008 to $14.7 billion, an
increase of $751.0 million (5%) from September 30, 2007.
-- The Company paid a cash dividend on November 28, 2008 in the amount of
$0.07 per share of the Company's common stock to all holders of record at
the close of business on November 14, 2008.
-- Resource Capital Corp. (NYSE: RSO), a real estate investment trust for
which the Company is the external manager, paid a cash dividend
distribution of $0.39 per common share for its third quarter ended
September 30, 2008.
-- The Company generated $30.9 million of cash from operating activities
from continuing operations as adjusted during the fiscal year ended
September 30, 2008. A reconciliation of net cash provided by operating
activities of continuing operations to net cash provided by operating
activities of continuing operations as adjusted, a non-GAAP measure, is
included as Schedule III to this release.
Resource America, Inc. is a specialized asset management company
that uses industry specific expertise to generate and administer
investment opportunities for its own account and for outside investors
in the commercial finance, real estate and financial fund management
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. 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/A. The Company
undertakes no obligation to update or revise any forward-looking
statements to reflect new or changing information or events.
The remainder of this release contains the Company's consolidated
balance sheets, consolidated statements of operations, consolidated
statements of cash flows, reconciliation of GAAP (loss) income from
continuing operations to adjusted income from continuing operations,
reconciliation of GAAP revenue to adjusted revenue and a
reconciliation of GAAP operating (loss) income to adjusted operating
income and reconciliation of net cash provided by operating
activities of continuing operations to net cash provided by operating
activities of continuing operations as adjusted.
RESOURCE AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
September 30,
--------------------
2008 2007
--------- ---------
ASSETS
Cash $ 14,910 $ 14,624
Restricted cash 23,689 19,340
Receivables 2,014 21,255
Receivables from managed entities and related
parties 35,674 20,177
Loans sold, not settled, at fair value 662 148,586
Loans held for investment, net 219,664 285,928
Investments in commercial finance - held for
investment, net 184,651 152,728
Investments in commercial finance - held for sale,
at fair value 112,730 90,112
Investments in real estate, net 37,972 49,041
Investment securities available-for-sale, at fair
value 22,746 51,777
Investments in unconsolidated entities 18,523 39,342
Property and equipment, net 16,886 12,286
Deferred tax assets 44,467 29,877
Goodwill 7,969 7,941
Intangible assets, net 4,329 4,774
Other assets 15,764 18,664
--------- ---------
Total assets $ 762,650 $ 966,452
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other liabilities $ 60,602 $ 55,875
Payables to managed entities and related parties 586 1,163
Borrowings 554,059 706,372
Deferred tax liabilities 1,060 11,124
Minority interests 2,610 6,571
--------- ---------
Total liabilities 618,917 781,105
--------- ---------
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, $1.00 par value, 1,000,000 shares
authorized; none outstanding - -
Common stock, $.01 par value, 49,000,000 shares
authorized; 27,421,552 and 26,986,975 shares
issued, respectively (including nonvested
restricted stock of 513,386 and 199,708,
respectively) 269 268
Additional paid-in capital 269,689 264,747
(Accumulated deficit) retained earnings (3,980) 27,171
Treasury stock, at cost; 9,312,232 and 9,369,960
shares, respectively (101,440) (102,014)
ESOP loan receivable - (223)
Accumulated other comprehensive loss (20,805) (4,602)
--------- ---------
Total stockholders' equity 143,733 185,347
--------- ---------
$ 762,650 $ 966,452
========= =========
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Years Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
(unaudited)
REVENUES:
Commercial finance $ 14,449 $ 12,231 $ 96,881 $ 40,692
Real estate 12,729 4,407 31,519 22,987
Financial fund management 4,874 15,024 27,536 63,089
--------- --------- --------- ---------
32,052 31,662 155,936 126,768
COSTS AND EXPENSES:
Commercial finance 10,528 5,925 42,741 19,501
Real estate 6,138 3,011 22,602 13,190
Financial fund management 7,717 5,386 27,737 21,264
General and administrative 4,911 2,919 16,080 11,875
Provision for credit losses 2,948 71 8,718 229
Depreciation and amortization 1,409 768 4,660 2,924
--------- --------- --------- ---------
33,651 18,080 122,538 68,983
--------- --------- --------- ---------
OPERATING (LOSS) INCOME (1,599) 13,582 33,398 57,785
OTHER (EXPENSE) INCOME:
Interest expense (8,218) (11,105) (47,266) (33,566)
Minority interest income
(expense), net 4,920 113 4,243 (2,142)
Loss on sales of loans and
leases (1,909) (5,025) (19,583) (5,025)
Impairment charges on
investment securities
available-for-sale (6,344) (12,580) (14,467) (12,580)
Other (expense) income, net (155) (3,208) 3,036 3,210
--------- --------- --------- ---------
(11,706) (31,805) (74,037) (50,103)
--------- --------- --------- ---------
(Loss) income from continuing
operations before taxes (13,305) (18,223) (40,639) 7,682
(Benefit) provision for income
taxes (5,035) (7,289) (15,695) 2,428
--------- --------- --------- ---------
(Loss) income from continuing
operations (8,270) (10,934) (24,944) 5,254
Loss from discontinued
operations, net of tax (954) (34) (1,299) (1,558)
--------- --------- --------- ---------
NET (LOSS) INCOME $ (9,224) $ (10,968) $ (26,243) $ 3,696
========= ========= ========= =========
Basic (loss) earnings per
common share:
Continuing operations $ (0.47) $ (0.63) $ (1.42) $ 0.30
Discontinued operations (0.05) - (0.08) (0.09)
--------- --------- --------- ---------
Net (loss) income $ (0.52) $ (0.63) $ (1.50) $ 0.21
========= ========= ========= =========
Weighted average shares
outstanding 17,591 17,482 17,518 17,467
========= ========= ========= =========
Diluted (loss) earnings per
common share:
Continuing operations $ (0.47) $ (0.63) $ (1.42) $ 0.27
Discontinued operations (0.05) - (0.08) (0.08)
--------- --------- --------- ---------
Net (loss) income $ (0.52) $ (0.63) $ (1.50) $ 0.19
========= ========= ========= =========
Weighted average shares
outstanding 17,591 17,482 17,518 19,085
========= ========= ========= =========
Dividends declared per common
share $ 0.07 $ 0.07 $ 0.28 $ 0.27
========= ========= ========= =========
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended
September 30,
--------------------
2008 2007
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (26,243) $ 3,696
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Impairment charges on investment securities
available-for-sale 14,467 12,580
Depreciation and amortization 6,024 3,699
Provision for credit losses 8,718 229
Minority interest (income) expense (4,243) 2,142
Equity in losses (earnings) of unconsolidated
entities 15,656 (13,960)
Distributions from unconsolidated entities 15,647 16,212
Loss on sales of loans and leases 19,583 5,160
Gain on sales of investments in commercial finance
assets (1,956) (568)
Gain on sales of investment securities
available-for-sale - (3,533)
Gain on sales of assets (9,488) (3,974)
Deferred income tax benefit (16,031) (14,891)
Non-cash compensation on long-term incentive plans 5,572 2,695
Non-cash compensation issued 136 1,861
Non-cash compensation received 159 (1,404)
Decrease in commercial finance investments held for
sale 65,297 84,950
Changes in operating assets and liabilities (18,002) 8,143
--------- ---------
Net cash provided by operating activities of
continuing operations 75,296 103,037
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (6,401) (5,441)
Payments received on real estate loans and real
estate 23,182 17,501
Investments in real estate (9,802) (20,917)
Purchase of commercial finance assets held for
investment (111,700) (180,205)
Proceeds from sale of commercial finance assets held
for investment 74,332 27,342
Purchase of investments (251,585) (23,225)
Proceeds from sale of investments 40,360 7,172
Principal payments received on loans 13,931 -
Net cash paid for acquisitions (8,022) (20,708)
Increase in other assets (17,050) (2,862)
--------- ---------
Net cash used in investing activities of continuing
operations (252,755) (201,343)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings 930,731 745,598
Principal payments on borrowings (715,914) (649,055)
Distributions paid to minority interest holders - (2,368)
Dividends paid (4,908) (4,770)
Increase in restricted cash (31,194) (10,156)
Proceeds from issuance of stock 182 1,226
Purchase of treasury stock (237) (5,368)
Tax benefit from exercise of stock options - 2,090
Other 315 (611)
--------- ---------
Net cash provided by financing activities of
continuing operations 178,975 76,586
--------- ---------
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities (408) (133)
Investing activities (86) -
Financing activities (736) (1,145)
--------- ---------
Net cash used in discontinued operations (1,230) (1,278)
--------- ---------
Increase (decrease) in cash 286 (22,998)
Cash at beginning of year 14,624 37,622
--------- ---------
Cash at end of year $ 14,910 $ 14,624
========= =========
This press release contains supplemental financial information
determined by methods other than in accordance with Accounting
Principles Generally Accepted in the United States of America
("GAAP"). The Company's management uses these non-GAAP measures in
its analysis of the exclusion of certain adjustments recorded in the
Company's fiscal year ended September 30, 2008. Management believes
the presentation of these financial measures excluding the impact of
certain items provides useful supplemental information that is
essential to a proper understanding of the financial results of the
Company. These disclosures should not be viewed as a substitute for
results determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP performance measures that may be presented by
other companies.
SCHEDULE I
RECONCILIATION OF GAAP (LOSS) INCOME FROM CONTINUING OPERATIONS
TO ADJUSTED INCOME FROM CONTINUING OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Years Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ----------
(Loss) income from continuing
operations - GAAP $ (8,270) $ (10,934) $ (24,944) $ 5,254
Adjustments, net of tax:
Partnership level
adjustments 4,260 291 15,811 291
Impairment charges on CDO
investments 1,472 7,617 4,190 7,617
Loss on sales of loans 182 2,648 11,415 2,648
Severance costs 1,088 - 1,078 -
Write-off of European real
estate investment fund costs - 2,885 - 2,885
RCC incentive stock (32) 772 1,510 772
Other 1,839 - 2,464 -
--------- --------- --------- ----------
Adjusted income from continuing
operations (1) $ 539 $ 3,279 $ 11,524 $ 19,467
========= ========= ========= ==========
Adjusted weighted average
diluted shares outstanding (2) 18,562 18,755 18,553 19,085
========= ========= ========= ==========
Adjusted income from continuing
operations per share-diluted $ 0.03 $ 0.17 $ 0.62 $ 1.02
========= ========= ========= ==========
(1) During the three months and year ended September 30, 2008, in
connection with substantial volatility and reduction in liquidity in
the global credit markets, the Company recorded several significant
adjustments. For comparability purposes, the Company is presenting
adjusted income from continuing operations because it facilitates the
evaluation of the Company without the effect of these adjustments.
Adjusted income from continuing operations should not be considered as
an alternative to (loss) income from continuing operations (computed
in accordance with GAAP). Instead, adjusted income from continuing
operations should be reviewed in connection with (loss) income from
continuing operations in the Company's consolidated financial
statements, to help analyze how the Company's business is performing.
(2) Includes 971,000 and 1.0 million dilutive shares not used in the
calculation of loss from continuing operations per share-diluted for
the three months and year ended September 30, 2008, respectively, and
1.3 million dilutive shares for the three months ended September 30,
2007.
SCHEDULE II
RECONCILIATION OF GAAP REVENUE TO ADJUSTED REVENUE AND RECONCILIATION OF
GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME
(in thousands)
(unaudited)
Three Months Ended Years Ended
September 30, September 30,
------------------ -------------------
2008 2007 2008 2007
-------- --------- --------- ---------
Revenues
Commercial finance $ 14,449 $ 12,231 $ 96,881 $ 40,692
Real estate 12,729 4,407 31,519 22,987
Financial fund management 4,874 15,024 27,536 63,089
-------- --------- --------- ---------
Total revenues - GAAP 32,052 31,662 155,936 126,768
Adjustments:
Fair value adjustments (1) 5,982 2,291 23,483 2,901
-------- --------- --------- ---------
Adjusted revenues (2) $ 38,034 $ 33,953 $ 179,419 $ 129,669
======== ========= ========= =========
Operating (loss) income - GAAP $ (1,599) $ 13,582 $ 33,398 $ 57,785
Adjustments:
Fair value adjustments (1) 5,982 2,291 23,483 2,901
-------- --------- --------- ---------
Adjusted operating income (2) $ 4,383 $ 15,873 $ 56,881 $ 60,686
======== ========= ========= =========
(1) Includes realized fair value write-down adjustments of $2.5 million
and $0 for the three months ended September 30, 2008 and 2007,
respectively, and $9.3 million and $0 for the years ended
September 30, 2008 and 2007, respectively.
(2) Management of the Company views adjusted revenues and adjusted
operating income as useful and appropriate supplements to revenues --
GAAP and operating (loss) income -- GAAP since they exclude fair value
adjustments related to current credit market conditions and are not
indicative of the Company's current operating performance.
SCHEDULE III
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS AS ADJUSTED
(in thousands)
(unaudited)
Net cash provided by operating activities of continuing operations
as adjusted was $30.9 million for the year ended September 30, 2008,
an increase of $14.7 million as compared to net cash provided by
operating activities of $16.2 million for the year ended September 30,
2007. The following reconciles net cash provided by operating
activities of continuing operations to net cash provided by operating
activities of continuing operations as adjusted (in thousands):
Years Ended
September 30,
--------------------
2008 2007
--------- ---------
Net cash provided by operating activities of
continuing operations - GAAP $ 75,296 $ 103,037
Adjustments:
Decrease in commercial finance investments held
for sale (65,297) (84,950)
Changes in operating assets and liabilities 18,002 (8,143)
Proceeds from sales of investments 2,933 6,268
--------- ---------
Net cash provided by operating activities of
continuing operations as adjusted (1) $ 30,934 $ 16,212
========= =========
(1) Management of the Company believes net cash provided by operating
activities of continuing operations as adjusted is a useful and
appropriate supplement to GAAP net cash provided by operating
activities of continuing operations since it reflects how management
views its liquidity and working capital requirements.
CONTACT:
STEVEN KESSLER
CHIEF FINANCIAL OFFICER
RESOURCE AMERICA, INC.
ONE CRESCENT DRIVE, SUITE 203
PHILADELPHIA, PA 19112
215/546-5005, 215/546-4785 (fax)
SOURCE: Resource America, Inc.
