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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

   (Mark One)

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2004

or

[     ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 0-4408

RESOURCE AMERICA, INC.
(Exact name of registrant as specified in its charter)


Delaware 72-0654145
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
   
1845 Walnut Street, Suite 1000  
Philadelphia, PA 19103
(Address of principal executive offices (Zip code)

Registrant’s telephone number, including area code: (215) 546-5005

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

The number of outstanding shares of the registrant’s common stock on February 1, 2005 was 17,513,000 shares.

RESOURCE AMERICA, INC. AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT ON FORM 10-Q





    Page
PART I FINANCIAL INFORMATION  
   Item 1 Financial Statements (unaudited)
  Consolidated Balance Sheets - December 31, and September 30, 2004 3 
  Consolidated Statements of Income  
     Three Months Ended December 31, 2004 and 2003 4 
  Consolidated Statement of Changes in Stockholders' Equity  
     Three Months Ended December 31, 2004 5 
  Consolidated Statements of Cash Flows  
     Three Months Ended December 31, 2004 and 2003 6 
  Notes to Consolidated Financial Statements 7 - 26 
   Item 2 Management's Discussion and Analysis of Financial Condition  
      and Results of Operations 27 - 42 
   Item 3 Quantitative and Qualitative Disclosures about Market Risk 43 - 46 
   Item 4 Controls and Procedures 47 
     
PART II OTHER INFORMATION
   Item 6 Exhibits 48 
     
SIGNATURE   49 

PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

RESOURCE AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)


December 31,
2004
 September 30,
2004
(unaudited)
ASSETS            
Current assets:  
   Cash and cash equivalents   $ 82,870   $ 69,099  
   Investments in lease assets    28,520    24,177  
   Accounts receivable and prepaid expenses    38,144    31,634  
   Assets held for sale    99,662    102,963  
     Total current assets    249,196    227,873  
Investments in real estate loans and real estate    47,600    47,119  
Property and equipment, net    385,966    374,192  
Other assets    42,655    31,619  
Intangible assets, net    7,188    7,433  
Goodwill, net of accumulated amortization of $4,532    37,470    37,470  
    $ 770,075   $ 725,706  
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:  
   Current portion of long-term debt   $ 3,421   $ 6,151  
   Secured revolving credit facilities - equipment leasing    23,970    8,487  
   Accounts payable    34,614    25,413  
   Liabilities associated with assets held for sale    70,186    65,300  
   Accrued liabilities    41,693    38,679  
   Liabilities associated with drilling contracts    52,610    29,375  
     Total current liabilities    226,494    173,405  
     
Long-term debt    82,624    114,696  
     
Deferred revenue and other liabilities    7,784    9,263  
Deferred income taxes    23,504    19,677  
Minority interests    160,934    150,750  
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    256    255  
   Additional paid-in capital    248,041    247,865  
   Less treasury stock, at cost    (77,619 )  (77,667 )
   Less ESOP loan receivable    (1,116 )  (1,127 )
   Accumulated other comprehensive income (loss)    1,318    (1,575 )
   Retained earnings    97,855    90,164  
     Total stockholders' equity     268,735    257,915  
    $ 770,075   $ 725,706  

See accompanying notes to consolidated financial statements.

3

RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)


Three Months Ended
December 31,
2004
 2003
REVENUES            
Energy   $ 91,247   $ 35,691  
Real estate    4,311    3,988  
Equipment leasing    2,591    1,624  
Structured finance    1,294    959  
     99,443    42,262  
COSTS AND EXPENSES   
Energy    67,119    23,326  
Real estate    3,643    3,440  
Equipment leasing    2,311    1,546  
Structured finance    611    --  
General and administrative    1,498    2,325  
Atlas America, Inc. planned spin-off    206    --  
Depreciation, depletion and amortization    6,535    3,437  
Provision for possible losses    157    300  
     82,080    34,374  
OPERATING INCOME     17,363    7,888  
     
OTHER INCOME (EXPENSE)   
Interest expense    (2,402 )  (2,667 )
Minority interest in Atlas Pipeline Partners, L.P.    (7,220 )  (1,273 )
Minority interests in structured finance entities    99    --  
Other income, net    7,745    1,871  
     (1,778 )  (2,069 )
Income from continuing operations before taxes and minority interest    15,585    5,819  
Provision for income taxes    5,455    2,035  
Income from continuing operations before minority interest    10,130    3,784  
Minority interest in Atlas America, Inc., net of tax    (1,761 )  --  
Income from continuing operations    8,369    3,784  
Income (loss) from discontinued operations, net of tax    198    (441 )
NET INCOME    $ 8,567   $ 3,343  
Net income (loss) per common share - basic:   
  From continuing operations   $ 0.48   $ 0.22  
  Discontinued operations    0.01    (0.03 )
  Net income   $ 0.49   $ 0.19  
  Weighted average shares outstanding    17,505    17,355  
Net income (loss) per common share - diluted:   
  From continuing operations   $ 0.45   $ 0.21  
  Discontinued operations    0.01    (0.02 )
  Net income   $ 0.46   $ 0.19  
  Weighted average shares outstanding    18,700    17,953  
Dividends declared per common share     $ 0.05   $ 0.03  

See accompanying notes to consolidated financial statements.

4

RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
THREE MONTHS ENDED DECEMBER 31, 2004
(in thousands, except shares)
(unaudited)


Common stock
 Additional
Paid-In		 Treasury Stock
Shares Amount Capital Shares Amount
Balance, October 1, 2004       25,547,632   $ 255   $ 247,865     (8,053,062 ) $ (77,667 )
Common shares issued       14,780     1     153     --     --  
Treasury shares issued       --     --     23     2,391     48  
Other comprehensive income       --     --     --     --     --  
Cash dividends       --     --     --     --     --        
Repayment of ESOP Loan       --     --     --     --     --  
Net income       --     --     --     --     --  
Balance, December 31, 2004       25,562,412   $ 256   $ 248,041     (8,050,671 ) $ (77,619 )


ESOP
Loan
Receivable		 Accumulated
Other
Comprehensive
Income (loss)		 Retained
Earnings		 Total
Stockholders'
Equity
Balance, October 1, 2004     $ (1,127 ) $ (1,575 ) $ 90,164   $ 257,915  
Common shares issued    --    --    --    154  
Treasury shares issued    --    --    --    71  
Other comprehensive income       --     2,893     --     2,893  
Cash dividends       --     --     (876 )   (876 )
Repayment of ESOP Loan    11    --    --    11  
Net income    --    --    8,567    8,567  
Balance, December 31, 2004   $ (1,116 ) $ 1,318   $ 97,855   $ 268,735  



See accompanying notes to consolidated financial statements.

5

RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)


Three Months Ended
December 31,
2004
 2003
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income    $ 8,567   $ 3,343  
Adjustments to reconcile net income to net cash provided by operating activities:  
  Depreciation, depletion and amortization    6,535    3,437  
  Amortization of discount on senior debt and deferred finance costs    321    398  
  Provision for possible losses    157    300  
  Earnings of equity investees    (908 )  (1,096 )
  Minority interests    8,882    1,273  
  (Gain) loss on discontinued operations    (198 )  441  
  Net (gain) loss on asset dispositions and buyback of senior notes    (50 )  1,448  
  Gain on sale of RAIT Investment Trust shares    (1,459 )  (2,508 )
  Deferred income tax provision (benefit)    1,284    (605 )
  Accretion of discount    (252 )  (557 )
  Non-cash compensation    486    35  
  Non-cash loss on derivative value    795    --  
  Net change in net assets of FIN 46 entities and net assets held for sale     (607 )   (1,594)  
Changes in operating assets and liabilities     25,613     19,220  
Net cash provided by operating activities    49,166