Resource America, Inc. Reports Operating Results for the Fourth

Resource America, Inc. Reports Operating Results for the Fourth
Fiscal Quarter and Fiscal Year Ended September 30, 2012 
PHILADELPHIA, PA -- (Marketwire) -- 12/04/12 --  Resource America,
Inc. (NASDAQ: REXI) (the "Company") reported adjusted income from
continuing operations attributable to common shareholders, net of
tax, a non-GAAP measure, of $234,000, or $0.01 per common
share-diluted, and $31.0 million, or $1.50 per common share-diluted,
for the fourth fiscal quarter and fiscal year ended September 30,
2012, respectively, as compared to an adjusted loss from continuing
operations attributable to common shareholders, net of tax, of $1.2
million, or $0.06 per common share-diluted, and adjusted income from
continuing operations attributable to common shareholders, net of
tax, of $2.4 million, or $0.12 per common share-diluted, for the
fourth fiscal quarter and fiscal year ended September 30, 2011,
respectively. A reconciliation of the Company's reported GAAP (loss)
income from continuing operations before taxes to adjusted income
(loss) from continuing operations attributable to common
shareholders, net of tax, a non-GAAP measure, is included as Schedule
I to this release.  
The Company reported a GAAP net loss attributable to common
shareholders of $2.3 million, or $0.11 per common share-diluted, and
net income attributable to common shareholders of $25.8 million, or
$1.25 per common share-diluted, for the fourth fiscal quarter and
fiscal year ended September 30, 2012, respectively, as compared to a
net loss attributable to common shareholders of $3.0 million, or
$0.15 per common share-diluted, and a net loss of $8.2 million, or
$0.42 per common share-diluted, for the fourth fiscal quarter and
fiscal year ended September 30, 2011, respectively. 
Jonathan Cohen, CEO and President, commented, "We are very pleased
with the progress we made during the fiscal year ended September 30,
2012. It was a year in which we showed strong growth and positioned
ourselves for even more growth. Our income from continuing operations
was $25.9 million for the year ended September 30, 2012, a dramatic
increase over the loss of $6.0 million for the year ended September
30, 2011. We paid off $17.6 million of debt and restructured the rest
at lower interest rates. We close
d the transaction creating CVC
Credit Partners, which showed the potential value of our asset
management platforms, as we realized a $54.5 million gain, received
gross cash proceeds of $25.0 million, retained substantial incentive
fees and now own 33% of a world-class global credit management
business. Our strong liquidity position has allowed us to repurchase
our common shares, and we have bought over 558,000 shares at an
average price of $5.88 since October 2011. Our real estate businesses
are growing significantly, and Resource Capital Corp., Resource Real
Estate Opportunity REIT and our real estate institutional joint
ventures raised over $266.0 million in new capital, on which we will
earn stable and long term future asset management fees, positioning
Resource America for continued growth." 
Assets Under Management
 The following table details the Company's
assets under management by operating segment, which increased by $1.6
billion (12%) from September 30, 2011 to September 30, 2012. 


 
                                                                            
                                          At September 30,  At September 30,
                                                2012              2011      
                                         ----------------- -----------------
Financial fund management                $  12.7 billion   $  11.1 billion  
Real estate                                  1.7 billion       1.6 billion  
Commercial finance                           0.5 billion       0.6 billion  
                                         -------           -------          
                                         $  14.9 billion   $  13.3 billion  
                                         =======           =======          

 
A description of how the Company calculates assets under management is
set forth in Item 1 of the Company's Annual Report on Form 10-K for
the fiscal year ended September 30, 2011. 
Highlights for the Fourth Fiscal Quarter and Fiscal Year Ended
September 30, 2012 and Recent Developments 
REAL ESTATE: 


 
--  Fundraising:
    --  Resource Real Estate Opportunity REIT, Inc. ("RRE Opportunity
        REIT") raised a record $33.0 million and $102.9 million during the
        fourth fiscal quarter and fiscal year ended September 30, 2012,
        respectively. Through November 30, 2012, RRE Opportunity REIT has
        raised approximately $192.9 million in total capital.
    --  Resource Capital Corp. ("RSO") raised $83.3 million and $138.5
        million of common and preferred equity capital for the fourth
        fiscal quarter and fiscal year ended September 30, 2012.
--  Fiscal 2012 RRE Opportunity REIT Acquisitions: In connection with the
    following purchases, the Company received $1.7 million in acquisition
    fees and will receive asset and property management fees in the
    future:
    --  acquired two multifamily rental properties for $52.7 million; and
    --  acquired two non-performing loans for $18.6 million, secured by
        first priority mortgages on various residential apartment
        buildings.
--  Fiscal 2012 Resource Real Estate, Inc. ("RRE") Acquisitions: In
    connection with the following purchases and financings, the Company
    received $783,000 in acquisition and debt financing fees and will
    receive asset and property management fees in the future:
    --  acquired a non-performing note secured by a multifamily rental
        property for $5.0 million and two condominium properties for $8.1
        million, on behalf of an RSO joint venture;
    --  acquired a multifamily rental property for $11.5 million on behalf
        of one of RRE's sponsored limited partnerships; and
    --  entered into two mortgage loans to borrow $37.6 million, one on
        behalf of a joint venture with an existing partner and the other
        on behalf of one of RRE's sponsored limited partnerships.
--  Fiscal 2012 RRE Dispositions: RRE sold three multifamily properties
    for $65.8 million for a joint venture with an existing partner, in
    which RSO is a member. In connection with these sales, the Company
    earned a promoted return of $1.5 million and disposition fees of
    $474,000.
--  Fiscal 2012 RRE Equity Interest Resolutions: RRE, along with an
    existing joint venture partner, sold two equity interests in
    multifamily properties and received total net proceeds of $766,000.
--  Property Management: Resource Real Estate Management, Inc., the
    Company's property management subsidiary, increased the apartment
    units it manages to 17,979 units at 61 properties as of September 30,
    2012 from 15,217 units at 54 properties as of September 30, 2011.

  
FINANCIAL FUND MANAGEMENT: 


 
--  Creation of a Global Credit Manager: On April 17, 2012, the Company
    closed on its sale of 100% of its common equity interests in Apidos
    Capital Management, LLC, its bank loan subsidiary ("Apidos"), to CVC
    Capital Partners SICAV-FIS, S.A. ("CVC"), creating the global credit
    manager CVC Credit Partners, L.P. ("CCP"), a newly-formed Cayman
    Islands limited partnership jointly owned by the Company and CVC.
    Pursuant to the previously reported sale and purchase agreement and
    related agreements between the Company and CVC dated as of December
    29, 2011, the Company sold Apidos in exchange for (i) $25.0 million in
    cash and (ii) a 33% limited partner interest in CCP and its general
    partner. Prior to the closing, CVC contributed its existing credit
    manager, CVC Cordatus, to CCP. The Company recorded a $54.5 million
    gain on the sale and is retaining certain incentive management fees
    that may be collected in the future, relating to previously managed
    portfolios. The Company anticipates that it will begin to collect
    these fees in fiscal 2013.
--  Award Recognition: In May 2012, CCP, the recently formed global credit
    management company, won the global award for "Best CLO Manager" at the
    2012 Creditflux CLO Manager Awards.
--  New Collateralized Loan Obligation Issuers ("CLO"): In July and
    November 2012, CCP closed Apidos CLO IX (par value $409.8 million) and
    Apidos CLO X (par value $450.0 million), respectively. In connection
    with these CLOs, CCP expects to receive approximately $4.1 million per
    year in asset management fees in the future.
--  Increased Assets Under Management: The Company's financial fund
    management operating segment increased its assets under management at
    September 30, 2012 to $12.7 billion, an increase of $1.6 billion, or
    14%, from September 30, 2011.

  
COMMERCIAL FINANCE: 


 
--  Lease Origination/Platform Growth: LEAF Commercial Capital, Inc.
    ("LEAF"), the Company's equipment leasing joint venture, continued to
    grow its lease origination and servicing operations during the fourth
    fiscal quarter ended September 30, 2012:
    --  lease and loan origination volume increased by 48% compared to the
        fourth fiscal quarter ended September 30, 2011; and
    --  LEAF's commercial finance assets as of September 30, 2012
        increased by 76% from September 30, 2011.
--  Securitizations: In September 2012, LEAF announced a new
    securitization transaction, LEAF 2012-1, which securitized a portfolio
    of approximately $221.0 million of leases and commercial loans through
    the issuance of equipment contract-backed notes. This transaction is
    the second securitization of small ticket equipment leases and
    commercial loans that LEAF has sponsored since its inception. The
    leases and loans were originated by LEAF and are backed by various
    equipment, including office equipment such as photocopiers, printers
    and telecommunications systems, as well as technology, light
    industrial and healthcare-related equipment.
--  Increased Warehouse Capacity: In September 2012, LEAF expanded its
    funding capacity with the closing of a $150.0 million revolving credit
    facility with Credit Suisse AG, New York Branch. This additional
    $150.0 million of warehouse capacity will be used by LEAF to fund new
    lease originations through its various vendor channels.

  
OTHER: 


 
--  Senior Note Repayment/Modification: In November 2011, the Company
    modified $10.0 million of its original senior notes to extend the
    maturity to October 2013 from October 2012 and lowered the interest
    rate from 12% to 9%. In connection with this modification, the Company
    redeemed $8.82 million of the original senior notes for cash.
--  Decreased Borrowings: At September 30, 2011, the Company had $8.7
    million of outstanding borrowings on its corporate credit facility
    with TD Bank. In June 2012, the Company paid down its outstanding
    borrowings on this facility.
--  Share Repurchase Plan: In August 2012, the Company's Board of
    Directors authorized the Company to repurchase up to 5% of our
    outstanding common shares. Since August 2012, the Company has
    repurchased 358,000 shares at an average price of $6.51 under this
    plan.
--  Corporate Credit Facilities Modifications: In October 2012, the
    Company extended the maturity of its existing $3.5 million revolving
    credit facility with Republic Bank from December 2013 to December
    2014. In November 2012, the Company extended the maturity of its
    revolving credit facility with TD Bank from August 2013 to December
    2014 and eliminated the 6% interest rate floor.
--  Dividends: The Company's Board of Directors authorized the payment on
    October 31, 2012 of a $0.03 cash dividend per share on the Company's
    common stock to holders of record as of the close of business on
    October 19, 2012. RSO declared a cash dividend of $0.20 per common
    share for its third fiscal quarter ended September 30, 2012.

  
Resource America, Inc. is a specialized asset management company that
uses industry specific expertise to evaluate, originate, service and
manage investment opportunities for its own account and for outside
investors in the real estate, financial fund management and
commercial finance sectors. 
For more information, please visit our website at
www.resourceamerica.com or contact investor relations at
pkamdar@resourceamerica.com. 
Statements made in this release include forward-looking statements,
which involve substantial risks and uncertainties. The Company's
actual results, performance or achievements could differ materially
from those expressed or implied in this release and its other reports
filed with the Securities and Exchange Commission. For information
pertaining to risks relating to these forward-looking statements,
reference is made to the section "Risk Factors" contained in Item 1A
of the Company's Annual Report on Form 10-K and in other of its
public filings with the Securities and Exchange Commission. The
Company undertakes no obligation to update or revise any
forward-looking statements to reflect new or changing information or
events except as may be required by law. 
A registration statement relating to securities offered by RRE
Opportunity REIT was declared effective by the SEC on June 16, 2010.
A written prospectus relating to these securities may be obtained by
contacting Resource Securities, Inc., 2005 Market Street, 15th Floor,
Philadelphia, PA 19103. 
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction. 
The remainder of this release contains the Company's unaudited
consolidated balance sheets, consolidated statements of operations
and consolidated statements of cash flows and reconciliation of GAAP
(loss) income from continuing operations before taxes to adjusted
income (loss) from continuing operations attributable to common
shareholders, net of tax. 


 
                                                                            
                           RESOURCE AMERICA, INC.                           
                        CONSOLIDATED BALANCE SHEETS                         
                     (in thousands, except share data)                      
                                                                            
                                                         September 30,      
                                                   ------------------------ 
                                                       2012         2011    
                                                   -----------  ----------- 
ASSETS                                                                      
  Cash                                             $    19,393  $    24,455 
  Restricted cash                                          642       20,257 
  Receivables                                            3,554        1,981 
  Receivables from managed entities and related                             
   parties, net                                         40,338       54,815 
  Investments in commercial finance, net                    --      192,012 
  Investments in real estate, net                       19,149       19,942 
  Investment securities, at fair value                  22,532       15,124 
  Investments in unconsolidated loan manager            36,356           -- 
  Investments in unconsolidated entities                12,993       12,710 
  Property and equipment, net                            2,732        6,998 
  Deferred tax assets, net                              34,565       51,581 
  Goodwill                                                  --        7,969 
  Other assets                                           3,776       14,662 
                                                   -----------  ----------- 
    Total assets                                   $   196,030  $   422,506 
                                                   ===========  =========== 
                                                                            
LIABILITIES AND EQUITY                                                      
Liabilities:                                                                
  Accrued expenses and other liabilities           $    22,329  $    40,887 
  Payables to managed entities and related parties       4,380        1,232 
  Borrowings                                            23,020      222,659 
                                                   -----------  ----------- 
    Total liabilities                                   49,729      264,778 
                                                   -----------  ----------- 
                                                                            
Commitments and contingencies                                               
                                                                            
Equity:                                                                     
  Preferred stock, $1.00 par value, 1,000,000                               
   shares authorized; none outstanding                      --           -- 
  Common stock, $.01 par value, 49,000,000 shares                           
   authorized; 29,866,664 and 28,779,998 shares                             
   issued (including nonvested restricted stock of                          
   403,195 and 649,007), respectively                      294          281 
  Additional paid-in capital                           285,844      281,686 
  Accumulated deficit                                  (24,508)     (48,032)
  Treasury stock, at cost; 9,756,955 and 9,126,966                          
   shares, respectively                               (102,457)     (98,954)
  Accumulated other comprehensive loss                 (13,080)     (14,613)
                                                   -----------  ----------- 
    Total stockholders' equity                         146,093      120,368 
  Noncontrolling interests                                 208       37,360 
                                                   -----------  ----------- 
    Total equity                                       146,301      157,728 
                                                   -----------  ----------- 
                                                   $   196,030  $   422,506 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
                           RESOURCE AMERICA, INC.                           
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
                   (in thousands, except per share data)                    
                                                                            
                                  Three Months Ended       Years Ended      
                                     September 30,        September 30,     
                                  ------------------  --------------------- 
                                    2012      2011       2012        2011   
                                  --------  --------  ----------  --------- 
                                      (unaudited)     (unaudited)           
REVENUES:                                                                   
Real estate                       $  9,101  $  9,375  $   38,404  $  38,380 
Financial fund management            5,370     4,647      21,244     25,841 
Commercial finance                    (167)    7,378       1,884     21,795 
                                  --------  --------  ----------  --------- 
                                    14,304    21,400      61,532     86,016 
                                  --------  --------  ----------  --------- 
COSTS AND EXPENSES:                                                         
Real estate                          7,773     6,189      29,758     24,465 
Financial fund management            3,196     3,648      16,373     20,562 
Commercial finance                     103     3,532       2,414     15,207 
Restructuring expenses                  --        --         365         -- 
General and administrative           2,530     2,895      10,460     11,522 
Gain on sale of leases and loans        --      (302)        (37)      (659)
Provision for credit losses          6,336     2,860      17,246     10,661 
Depreciation and amortization          529     3,534       3,653     10,739 
                                  --------  --------  ----------  --------- 
                                    20,467    22,356      80,232     92,497 
                                  --------  --------  ----------  --------- 
OPERATING LOSS                      (6,163)     (956)    (18,700)    (6,481)
                                  --------  --------  ----------  --------- 
                                                                            
OTHER INCOME (EXPENSE):                                                     
(Loss) gain on deconsolidation                                              
 and sale of subsidiaries             (140)       --      63,291         -- 
Loss on extinguishment of debt          --        --      (2,190)        -- 
Gain on sale of management                                                  
 contract                               --        --          --      6,520 
Gain on extinguishment of                                                   
 servicing and repurchase                                                   
 liabilities                            --        --          --      4,426 
Gain (loss) on sale of investment                                           
 securities, net                        --        84          63     (1,198)
Other-than-temporary impairment                                             
 on investments                         --        --         (74)        -- 
Interest expense                      (544)   (4,531)     (4,741)   (15,343)
Other income, net                      557       257       2,103      2,242 
                                  --------  --------  ----------  --------- 
                                      (127)   (4,190)     58,452     (3,353)
                                  --------  --------  ----------  --------- 
(Loss) income from continuing                                               
 operations before taxes            (6,290)   (5,146)     39,752     (9,834)
Income tax (benefit) provision      (3,984)   (2,826)     13,512     (4,607)
                                  --------  --------  ----------  --------- 
(Loss) income from continuing                                               
 operations                         (2,306)   (2,320)     26,240     (5,227)
Loss from discontinued                                                      
 operations, net of tax                 (8)      (26)        (58)    (2,202)
                                  --------  --------  ----------  --------- 
Net (loss) income                   (2,314)   (2,346)     26,182     (7,429)
Add: net loss (income)                                                      
 attributable to noncontrolling                                             
 interests                              36      (638)       (348)      (799)
                                  --------  --------  ----------  --------- 
Net (loss) income attributable to                                           
 common shareholders              $ (2,278) $ (2,984) $   25,834  $  (8,228)
                                  ========  ========  ==========  ========= 
                                                                            
Amounts attributable to common                                              
 shareholders:                                                              
(Loss) income from continuing                                               
 operations                       $ (2,270) $ (2,958) $   25,892  $  (6,026)
Discontinued operations                 (8)      (26)        (58)    (2,202)
                                  --------  --------  ----------  --------- 
Net (loss) income                 $ (2,278) $ (2,984) $   25,834  $  (8,228)
                                  ========  ========  ==========  ========= 
                                                                            
Basic (loss) earnings per share:                                            
Continuing operations             $  (0.11) $  (0.15) $     1.31  $   (0.31)
Discontinued operations                 --        --          --      (0.11)
                                  --------  --------  ----------  --------- 
Net (loss) income                 $  (0.11) $  (0.15) $     1.31  $   (0.42)
                                  ========  ========  ==========  ========= 
Weighted average shares                                                     
 outstanding                        20,102    19,793      19,740     19,525 
                                  ========  ========  ==========  ========= 
                                                                            
Diluted (loss) earnings per                                                 
 share:                                                                     
Continuing operations             $  (0.11) $  (0.15) $     1.25  $   (0.31)
Discontinued operations                 --        --          --      (0.11)
                                  --------  --------  ----------  --------- 
Net (loss) income                 $  (0.11) $  (0.15) $     1.25  $   (0.42)
                                  ========  ========  ==========  ========= 
Weighted average shares                                                     
 outstanding                        20,102    19,793      20,634     19,525 
                                  ========  ========  ==========  ========= 
                                                                            
Dividends declared per common                                               
 share                            $   0.03  $   0.03  $     0.12  $    0.12 
                                  ========  ========  ==========  ========= 
                                                                            
                                                                            
                                                                            
                           RESOURCE AMERICA, INC.                           
                   CONSOLIDATED STATEMENTS OF CASH FLOWS                    
                               (in thousands)                               
                                (unaudited)                                 
                                                                            
                                                  Years Ended September 30, 
                                                 -------------------------- 
                                                     2012          2011     
                                                 ------------  ------------ 
CASH FLOWS FROM OPERATING ACTIVITIES:                                       
Net income (loss)                                $     26,182  $     (7,429)
  Adjustments to reconcile net income (loss) to                             
   net cash used in operating activities:                                   
  Depreciation and amortization                         4,875        15,780 
  Provision for credit losses                          17,246        10,661 
  Unrealized gain on trading securities                (1,108)           -- 
  Equity in earnings of unconsolidated entities        (1,248)      (10,377)
  Distributions from unconsolidated entities            3,463         4,522 
  Gain on sale of leases and loans                        (37)         (659)
  Other-than-temporary impairment losses                                    
   recognized in earnings                                  74            -- 
  (Gain) loss on sale of loans and investment                               
   securities, net                                       (972)        1,198 
  Gain on sale of assets                                  (84)         (196)
  Gain on sale and deconsolidation of                                       
   subsidiaries                                       (63,291)           -- 
  Loss on extinguishment of debt                        2,190            -- 
  Gain on sale of management contract                      --        (6,520)
  Gain on extinguishment of servicing and                                   
   repurchase liabilities                                  --        (4,426)
  Deferred income tax provision (benefit)              13,393        (5,657)
  Equity-based compensation issued                      1,286         2,525 
  Equity-based compensation received                     (153)         (463)
Trading securities purchases and sales, net            (1,048)           -- 
Loss from discontinued operations                          58         2,202 
Changes in operating assets and liabilities            (2,822)       (2,624)
                                                 ------------  ------------ 
Net cash used in operating activities                  (1,996)       (1,463)
                                                 ------------  ------------ 
CASH FLOWS FROM INVESTING ACTIVITIES:                                       
Capital expenditures                                     (222)       (1,165)
Payments received on real estate loans and real                             
 estate                                                 1,726        16,487 
Investments in unconsolidated real estate                                   
 entities                                              (1,608)       (2,371)
Purchase of commercial finance assets                 (18,483)     (105,777)
Principal payments received on leases and loans         9,043        29,056 
Cash divested on deconsolidation of LEAF               (2,284)           -- 
Net proceeds from sale of Apidos and cash                                   
 divested on deconsolidation                           17,860            -- 
Proceeds from sale of management contract                  --         9,095 
Purchase of loans and investments                      (1,874)           -- 
Proceeds from sale of loans and investments               262         3,779 
                                                 ------------  ------------ 
Net cash provided by (used in) investing                                    
 activities                                             4,420       (50,896)
                                                 ------------  ------------ 
CASH FLOWS FROM FINANCING ACTIVITIES:                                       
Increase in borrowings                                128,845       106,043 
Principal payments on borrowings                     (129,416)      (55,778)
Dividends paid                                         (2,310)       (2,246)
Proceeds from issuance of common stock                  2,131         1,914 
Repurchase of common stock                             (2,324)         (241)
Proceeds from issuance of LEAF preferred stock             --        15,221 
Preferred stock dividends paid by LEAF to RSO            (188)         (305)
(Increase) decrease in restricted cash                   (664)        4,530 
Other                                                  (2,275)       (2,299)
                                                 ------------  ------------ 
Net cash (used in) provided by financing                                    
 activities                                            (6,201)       66,839 
                                                 ------------  ------------ 
CASH FLOWS FROM DISCONTINUED OPERATIONS:                                    
Operating activities                                   (1,285)       (1,268)
                                                 ------------  ------------ 
Net cash used in discontinued operations               (1,285)       (1,268)
                                                 ------------  ------------ 
                                                                            
(Decrease) increase in cash                            (5,062)       13,212 
Cash, beginning of year                                24,455        11,243 
                                                 ------------  ------------ 
Cash, end of year                                $     19,393  $     24,455 
                                                 ============  ============ 

 
Schedule I  


 
                                                                            
            RECONCILIATION OF GAAP (LOSS) INCOME FROM CONTINUING            
           OPERATIONS BEFORE TAXES TO ADJUSTED INCOME (LOSS) FROM           
 CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS, NET OF TAX (1)  
                   (in thousands, except per share data)                    
                                (unaudited)                                 
                                                                            
                                  Three Months Ended        Years Ended     
                                     September 30,         September 30,    
                                 --------------------  -------------------- 
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
(Loss) income from continuing                                               
 operations before taxes - GAAP  $  (6,290) $  (5,146) $  39,752  $  (9,834)
Loss (income) attributable to                                               
 noncontrolling interests - pre-                                            
 tax                                    36       (467)      (219)       151 
                                 ---------  ---------  ---------  --------- 
(Loss) income from continuing                                               
 operations attributable to                                                 
 common shareholders - pre-tax      (6,254)    (5,613)    39,533     (9,683)
                                 ---------  ---------  ---------  --------- 
                                                                            
Commercial finance adjustments,                                             
 pre-tax:                                                                   
  Loss from operations (2)           6,539      3,288     11,954     14,111 
Noncontrolling interests                --        483        223        (99)
                                 ---------  ---------  ---------  --------- 
Commercial finance operations        6,539      3,771     12,177     14,012 
                                 ---------  ---------  ---------  --------- 
                                                                            
Adjusted income (loss) from                                                 
 continuing operations                                                      
 attributable to common                                                     
 shareholders - pre-tax                285     (1,842)    51,710      4,329 
Income tax provision (benefit)                                              
 (3)                                    51       (684)    20,684      1,935 
                                 ---------  ---------  ---------  --------- 
Adjusted income (loss) from                                                 
 continuing operations                                                      
 attributable to common                                                     
 shareholders, net of tax        $     234  $  (1,158) $  31,026  $   2,394 
                                 =========  =========  =========  ========= 
                                                                            
Adjusted weighted average                                                   
 diluted shares outstanding (4)     21,141     19,793     20,634     20,588 
                                 =========  =========  =========  ========= 
                                                                            
Adjusted income (loss) from                                                 
 continuing operations                                                      
 attributable to common                                                     
 shareholders, net of tax, per                                              
 common per share-diluted        $    0.01  $   (0.06) $    1.50  $    0.12 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
  1. Adjusted income (loss) from continuing operations attributable to      
     common shareholders, net of tax, presents the Company's operations     
     without the effect of its commercial finance operations. The Company   
     believes that this provides useful information to investors since it   
     allows investors to evaluate the Company's progress in both its real   
     estate and financial fund management segments for the three months and 
     fiscal years ended September 30, 2012 and 2011 separately from its     
     commercial finance operations. Adjusted income (loss) from continuing  
     operations attributable to common shareholders, net of tax, should not 
     be considered as an alternative to (loss) income from continuing       
     operations before taxes (computed in accordance with GAAP). Instead,   
     adjusted income (loss) from continuing operations attributable to      
     common shareholders, net of tax, should be reviewed in connection with 
     (loss) income from continuing operations before taxes in the Company's 
     consolidated financial statements, to help analyze how the Company's   
     business is performing.                                                
  2. Loss from commercial finance operations consists of revenues and       
     expenses from commercial finance operations (including gains or losses 
     from the sale of leases and loans, provision for credit losses and     
     depreciation and amortization) net of non-controlling interests.       
  3. Income tax provision (benefit) is calculated using the Company's tax   
     rate for the period, excluding one-time tax adjustments.               
  4. Dilutive shares used in the calculation of adjusted income from        
     continuing operations attributable to common shareholders per common   
     share-diluted includes an additional 1.0 million shares for the three  
     months ended September 30, 2012 and an additional 1.1 million shares   
     for the fiscal year ended September 30, 2011, which were antidilutive  
     for the periods and, as such, were not used in the calculation of GAAP 
     (loss) income from continuing operations attributable to common        
     shareholders per common share-diluted.                                 

  
Contact:
Thomas C. Elliott
Chief Financial Officer
Resource America, Inc.
One Crescent Drive, Suite 203
Philadelphia, PA 19112
(215) 546-5005
(215) 640-6357 (fax) 
 
 
Press spacebar to pause and continue. Press esc to stop.