Fri, Sep 13, 8:31 PM (107 days ago)
For the quarter ended July 31, 2024, AMREP Corporation reported significant financial improvements, with net income rising to $4,064,000 ($0.76 per diluted share) from $1,346,000 ($0.25 per diluted share) in the prior year. Total revenues surged 86% to $19,091,000, driven by increased land and home sale revenues, particularly in developed residential land. Land sale revenues grew by 40%, while home sales increased substantially due to more homes sold. However, operating conditions remain challenging, marked by delays in municipal approvals and rising mortgage rates impacting demand. The company has adjusted its strategy by offering sales incentives and slowing development projects, anticipating continued market pressures into 2025. Cash flow from operations improved significantly to $10,691,000, up from $1,827,000, reflecting better inventory management. Total assets increased to $127,005,000, primarily due to cash and real estate holdings. The gross margin for land sales improved to 48%, while home sales margins decreased to 19%, affected by higher building costs. The company remains cautious about future operations, projecting potential declines in land sale revenues due to current market uncertainties.