WASHINGTON, Nov. 14 /PRNewswire-FirstCall/ -- Bresler & Reiner, Inc. reported net income of $2,644,000 or $0.48 per common share on revenues of $75,960,000 for the nine months ended September 30, 2006. For the comparable period in 2005, the Company reported net income of $143,000 or $0.03 per common share on revenues of $81,130,000. Funds from operations for the nine months ended September 30, 2006 were $7,816,000 or $1.43 per common share compared to $10,950,000 or $2.00 per common share for the same period in 2005.
For the three months ended September 30, 2006, the Company reported a net loss of $6,744,000 or $1.23 per common share on revenues of $32,101,000. For the comparable period in 2005, the Company reported a net loss of $3,503,000 or $0.64 per common share on revenues of $16,522,000. Funds from operation for the three months ended September 30, 2006 were $(703,000) or $(0.13) per common share compared to $617,000 or $0.11 per common share for the same period in 2005.
Sidney M. Bresler, Chief Executive Officer, stated that the funds from operations for both the three months and nine months ended September 30, 2006 reflect non-cash asset impairment charges totaling $3,481,000, after taxes, related to both a commercial office building the Company is holding for sale and a development project. In addition to the asset impairment charges, the net income (loss) for these periods also reflect large amounts of non-cash depreciation and amortization expense related to the Company's operating properties. Mr. Bresler further stated that the increase in revenue for the three months ended September 30, 2006 is primarily due to revenue generated from properties acquired in 2006 and increased sales of commercial condominiums and residential lots.
Funds from operations is defined by the Company as net income computed in accordance with accounting principles generally accepted in the United States, excluding gains and losses, net of tax, on sales of depreciable property, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The following table reflects the reconciliation of FFO to net income for the three and nine months ended September 30, 2006 and 2005 (in thousands):
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Net (loss) income $ (6,744) $ (3,503) $ 2,644 $ 143
Add: Depreciation and
amortization including
share of unconsolidated
real estate joint
ventures 6,020 4,451 17,645 12,225
(Less) add: Income tax
(benefit) expense from
property sales (net of
minority interest
share of taxes) (14) 222 8,315 1,291
Add (less): Net gain on
sale of properties
(net of minority
interest) 35 (553) (20,788) (2,709)
Funds from operations $ (703) $ 617 $ 7,816 $ 10,950
Net (loss) income per
common share $ (1.23) $ (0.64) $ 0.48 $ 0.03
Funds from operations
per common share $ (0.13) $ 0.11 $ 1.43 $ 2.00
About the Company:
Bresler & Reiner, Inc. owns and develops land and residential, commercial and hospitality properties, principally in the Washington, D.C.; Wilmington, Delaware; Philadelphia, Pennsylvania; Houston, Texas; Baltimore, Maryland, Maryland and Delaware Eastern Shore, and the Lakeland and Orlando, Florida metropolitan areas.
Supplemental Information:
SEC Filings (including Forms 10-K, 10-Q, 8-K and proxy materials) are available at http://www.breslerandreiner.com/ or may be requested in e-mail or hard copy formats.
For additional information, contact:
Darryl M. Edelstein, Executive VP-Finance and CFO
Bresler & Reiner, Inc.
11200 Rockville Pike, Suite 502
Rockville, Maryland 20852
(301) 945-4300
This press release may contain forward-looking statements that are based on current estimates, expectations, forecasts and projections about us, our future performance, the industry in which we operate, our beliefs, and management's assumptions. In addition, other written or oral statements that constitute forward-looking statements may be made by or on behalf of us. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," or "would be," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties include: our ability to compete effectively; our exposure to the credit risks of our tenants; our ability to recruit and retain key personnel; adverse changes in the local or general economy and market conditions; our ability to obtain necessary governmental permits and approvals; our ability to complete development projects in a timely manner and within budget; our ability to secure tenants for our projects and properties; our ability to sustain occupancy levels at our properties through keeping existing tenants and securing new ones; our ability to secure tenants for the residential and commercial properties that we develop; changes in the interest rate environment which will affect our ability to obtain mortgage financing on acceptable terms; future litigation; and changes in environmental health and safety laws.
