RESOURCE AMERICA, INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 23, 2012

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8-K - FORM 8K - RESOURCE AMERICA, INC.rexi8k0412.htm
EX-99.1 - EXHIBIT 99.1 - RESOURCE AMERICA, INC.exh99_1.htm
Exhibit 99.2
Resource America, Inc.
Pro Forma Consolidated Statement of Operations
For the Fiscal Year Ended September 30, 2011
(in thousands)

       
Pro Forma Adjustments
          
   
Historical
  
Deconsolidate
Apidos
    
Record proceeds from sale of
Apidos to CVC
    
Other
adjustments
      
As Adjusted
  
                               
REVENUES
                              
Real estate
   $ 25,841   $ –     $ –     $ –       $ 25,841  
Financial fund management
     38,380     (14,004 )             2,952    [a]       27,328  
Commercial finance
     21,795     –                           21,795  
      86,016     (14,004 )     –       2,952           74,964  
                                           
COSTS AND EXPENSES
                                          
Real estate
     24,465                                 24,465  
Financial fund management
     20,562     (7,343 )             (1,018 )  [b]       12,201  
Commercial finance
     15,207                                 15,207  
General and administrative
     11,522                                 11,522  
Gain on sale of leases
     (659 )                               (659 )
Provision for possible losses
     10,661                                 10,661  
Depreciation and amortization
     10,739                                 10,739  
      92,497     (7,343 )     –       (1,018 )         84,136  
                                           
OPERATING (LOSS) INCOME
     (6,481 )   (6,661 )     –       3,970           (9,172 )
                                           
OTHER INCOME (EXPENSE)
                                          
Gain on sale of management contract
     6,520                                 6,520  
Gain on sale of subsidiaries
     –             54,373  [c]                 54,373  
Gain on extinguishment of servicing and 
   repurchase liabilities
     4,426                                 4,426  
Losses on sale of securities
     (1,198 )                               (1,198 )
Interest expense
     (15,343 )                               (15,343 )
Other income, net
     2,242     –       –       –           2,242  
Total other income (expense)
     (3,353 )   –       54,373       –           51,020  
                                           
(Loss) income from continuing operations before taxes
     (9,834 )   (6,661 )     54,373       3,970           41,848  
(Benefit) provision for income taxes
     (4,607 )   (2,331 )     19,031  [c]     1,390           13,483  
                                           
(Loss) income from continuing operations
     (5,227 )   (4,330 )     35,342       2,580           28,365  
Loss from discontinued operations, net of tax
     (2,202 )   –       –       –           (2,202 )
Net (loss) income
     (7,429 )   (4,330 )     35,342       2,580           26,163  
Net income attributable to noncontrolling interests
     (799 )   –       –       –           (799 )
                                           
Net (loss) income attributable to common shareholders
   $ (8,228 ) $ (4,330 )   $ 35,342     $ 2,580         $ 25,364  
Notes to pro forma statement of operations:
 
[a]
reflects the Company’s 33% pro forma equity interest in the joint venture for the year ended September 30, 2011.
 
[b]
reflects costs the Company can charge the joint venture for shared services.
 
[c]
reflects the pro forma gain on the sale of Apidos, net of tax.
 
 
 
 
 
Resource America, Inc.
Pro Forma Consolidated Statement of Operations
For the Three Months Ended December 31, 2011
(in thousands)

       
Pro Forma Adjustments
          
   
Historical
  
Deconsolidate
Apidos
    
Record proceeds
from sale of
Apidos to CVC
    
Other
adjustments
      
As Adjusted
  
                               
REVENUES
                              
Real estate
   $ 8,666   $ –     $ –     $ –       $ 8,666  
Financial fund management      6,579      (3,482 )               881   [a]      3,978  
Commercial finance
     3,419     –       –        –         3,419  
      18,664     (3,482 )     –       881         16,063  
                                         
COSTS AND EXPENSES
                                        
Real estate
     7,192                               7,192  
Financial fund management
     5,804     (1,801 )                       4,003  
Commercial finance
     1,963                               1,963  
General and administrative
     2,896                     (255 ) [b]     2,641  
Gain on sale of leases
     (37 )                             (37 )
Provision for possible losses
     2,250                               2,250  
Depreciation and amortization
     2,061                               2,061  
      22,129     (1,801 )     –       (255 )       20,073  
                                         
OPERATING (LOSS) INCOME
     (3,465 )   (1,681 )     –       1,136         (4,010 )
                                         
                                         
OTHER INCOME (EXPENSE)
                                        
Gain on sale of subsidiaries
     8,749             54,373   [c]               63,122  
Loss on extinguishment of debt
     (2,190 )                             (2,190 )
Gains on sale of securities
     58                               58  
Interest expense
     (2,974 )                             (2,974 )
Other income, net
     559     –       –       –         559  
Total other income
     4,202     –       54,373       –         58,575  
                                         
Income (loss) from continuing operations before taxes
     737     (1,681 )     54,373       1,136         54,565  
Provision (benefit) for income taxes
     154     (589 )     20,118   [c]     420         20,103  
                                         
Income (loss) from continuing operations
     583     (1,092 )     34,255       716         34,462  
Loss from discontinued operations, net of tax
     (20 )   –       –       –         (20 )
Net income (loss)
     563     (1,092 )     34,255       716         34,442  
Net income attributable to noncontrolling interests
     (378 )   –       –       –         (378 )
                                         
Net income (loss) attributable to common shareholders
   $ 185   $ (1,092 )   $ 34,255     $ 716       $ 34,604  
Notes to pro forma statement of operations:
 
[a]
reflects the Company’s 33% pro forma equity interest in the joint venture for the three months ended December 31, 2011.
 
[b]
reflects costs the Company can charge the joint venture for shared services.
 
[c]
reflects the pro forma gain on the sale of Apidos, net of tax.
 
 
 
 
 
Resource America, Inc.
 Pro Forma Consolidated Balance Sheet
December 31, 2011
(in thousands)
 
         
Pro Forma Adjustments
          
   
Historical
    
Deconsolidate
Apidos
    
Amounts received
 from sale of Apidos
at fair value
      
As Adjusted
  
ASSETS
                          
Cash
   $ 12,803     $ 68     $ 19,683    [a]   $ 32,418  
Restricted cash
     607                         607  
Receivables
     479                         479  
Receivables from managed entities and related parties, net
     54,348                         54,348  
Investments in real estate
     19,100                         19,100  
Investment securities, at fair value
     17,330                         17,330  
Investments in unconsolidated entities
     13,197       (249 )     34,690    [b],[c]     47,638  
Property and equipment, net
     4,294                         4,294  
Deferred tax assets, net
     47,184               (20,118 )  [c]     27,066  
Other assets
     8,993       (5,011 )               3,982  
Total assets
   $ 178,335     $ (5,328 )   $ 34,255       $ 207,262  
                                   
LIABILITIES AND EQUITY
                                  
Liabilities:
                                  
Accrued expenses and other liabilities
   $ 29,327     $ (5,329 )   $ –       $ 23,998  
Payables to managed entities and related parties
     275                         275  
Borrowings
     28,471                         28,471  
Total liabilities
     58,073       (5,329 )     –         52,744  
                                   
Commitments and contingencies
                                  
                                   
Equity:
                                  
Preferred stock, none outstanding
     –       –       –         –  
Common stock, $.01 par value
     281                         281  
Additional paid-in capital
     281,357                         281,357  
Accumulated deficit
     (48,416 )             34,255    [c]     (14,161 )
Treasury stock, at cost
     (99,775 )                       (99,775 )
Accumulated other comprehensive loss
     (13,504 )     1       –         (13,503 )
Total stockholders’ equity
     119,943       1       34,255         154,199  
Noncontrolling interests
     319       –       –         319  
Total equity
     120,262       1       34,255         154,518  
 
  $ 178,335     $ (5,328 )   $ 34,255       $ 207,262  
Notes to pro forma balance sheet:
        
  [a]  
reflects the cash proceeds to be received at closing from the sale of Apidos to CVC Capital Partners.
  
         
  [b]  
reflects the fair value of the Company's 33% investment in the joint venture (CVC Credit Partners) and the Company's retained preferred equity interest in Apidos, which entitles it to receive incentive managment fees from the legacy Apidos portfolios.
 
         
  [c]  
reflects the pro forma gain on the sale of Apidos, net of the utilization of capital loss carryfowards.
  
 
 
 

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