Fri, Mar 7, 9:01 PM (50 days ago)
AMREP Corporation (NYSE: AXR) reported a notable increase in quarterly performance for the period ending January 31, 2025, with net income rising to $717,000 ($0.13 per diluted share) from $92,000 ($0.02) in the same quarter last year. For the nine months, net income surged to $8,823,000 ($1.64) compared to $2,546,000 ($0.48) in the prior year. Revenue for the quarter fell 41% to $7,520,000, primarily due to a significant drop in land sale revenues, which decreased by 28%. However, home sale revenues increased by 57%, reflecting a strategic shift to enhance homebuilding amidst affordability challenges. The company faced delays related to municipal entitlements and rising costs, impacting construction timelines and revenue realization. Cash flow from operations improved to $7,273,000, bolstered by reduced real estate inventory. Total assets increased to $128,938,000, with cash and equivalents rising to $36,936,000. AMREP's liquidity remains stable, with a decrease in notes payable to $29,000. The company anticipates continued revenue challenges in land sales due to market headwinds and has adjusted its project scope accordingly. Overall, AMREP's strategic adaptations suggest a focus on sustaining profitability amid external pressures.