Resource America, Inc. Reports Operating Results for the Fourth Quarter and Year Ended December 31, 2014

PHILADELPHIA, PA--(Marketwired - Mar 4, 2015) - Resource America, Inc. (NASDAQ: REXI)

Fourth Quarter 2014 Highlights

• Adjusted net income attributable to common shareholders of $2.1 million (see Schedule I)
  
  
• Increased gross assets under management by 17% to $20.2 billion since December 31, 2013
  
  
  • Gross real estate assets under management increased 35% to $3.4 billion
    
    
  • Gross financial fund management assets under management increased 14% to $16.1 billion
    
    
  • Net assets under management increased 22% to $9.7 billion
    
    
• Book value per common share of $7.47
  
  
• Repurchased 239,790 shares at $9.31
  
  

Fourth Quarter 2014 Results

Resource America, Inc. (NASDAQ: REXI) (the "Company")  reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $2.1 million, or $0.09 per common share-diluted, and $12.1 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to adjusted net income attributable to common shareholders of $3.5 million, or $0.16 per common share-diluted, and $11.8 million, or $0.54 per common share-diluted, for the three months and year ended December 31, 2013, respectively. A reconciliation of the Company's reported GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders, a non-GAAP measure, is included as Schedule I to this release.

The Company reported GAAP net income attributable to common shareholders of $1.7 million, or $0.08 per common share-diluted, and $7.0 million, or $0.31 per common share-diluted, for the three months and year ended December 31, 2014, respectively, as compared to GAAP net income attributable to common shareholders of $1.4 million, or $0.06 per common share-diluted, and $6.4 million, or $0.29 per common share-diluted, for the three months and year ended December 31, 2013.

Assets Under Management

The following table details the Company's assets under management by operating segment which, in gross, increased by $2.9 billion (17%) from December 31, 2013 to 2014 (in billions):

		December 31,
		2014			2013
Financial fund management		$	16.1		$	14.2
Real estate			3.4			2.5
Commercial finance			0.7			0.6
		$	20.2		$	17.3
	Net assets under management (1)	$	9.7		$	7.9

(1)	Net assets under management represents the proportionate share of assets managed by the Company after reflecting joint venture arrangements.

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 December 31, 2013.

Highlights for the Fourth Quarter and Year Ended December 31, 2014 and Recent Developments

REAL ESTATE ASSET MANAGEMENT:

Equity Asset Management

Resource Real Estate Opportunity REIT, Inc. ("Opportunity REIT I"), a public non-traded real estate investment trust ("REIT") managed by the Company which specializes in acquiring and managing distressed real estate assets, had the following highlights:

• Increased total assets to $978.4 million at December 31, 2014, an increase of $299.8 million, or 44%, from $678.6 million at December 31, 2013.
  
  
• Acquired $19.9 million and $427.0 million of multifamily assets and placed financing of $57.3 million and $347.8 million during the three months and year ended December 31, 2014. In addition, disposed of $30.1 million of multifamily assets during the year ended December 31, 2014.
  
  
• In October 2014, the Board of Directors of Opportunity REIT I authorized a 50% increase to the annual distribution rate to 6% from 4%.
  
  

Resource Real Estate Opportunity REIT II, Inc. ("Opportunity REIT II"), a public non-traded real estate investment trust ("REIT") managed by the Company, commenced its initial public offering in early 2014. Opportunity REIT II is offering up to $1.0 billion in common stock and specializes in acquiring multifamily rental properties and selected loans. Opportunity REIT II had the following highlights:

• Raised $47.2 million as of December 31, 2014 and $90.4 million through March 3, 2015.
  
  
• Acquired $54.3 million and $67.0 million of multifamily assets and placed financing of $31.1 million and $38.5 during the three months and year ended December 31, 2014.
  
  

Debt Asset Management

Resource Capital Corp. ("RSO"), a publicly-traded REIT managed by the Company which focuses on commercial real estate assets, had the following highlights:

• Originated $302.3 million and $777.3 million in new commercial real estate loans during the three months and year ended December 31, 2014.
  
  
• During the three months and year ended December 31, 2014, raised $25.5 million and $202.7 million in equity capital through its DRIP and preferred equity programs.
  
  
• In October 2014, RSO's Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock.
  
  
• In January 2015, completed a $100.0 million public offering of its 8.00% convertible senior notes due 2020.
  
  
• In February 2015, completed a $346.2 million commercial real estate securitization that issued $282.1 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.90%.
  
  

The following additional highlight contributed to our real estate asset management operations:

• The Company's real estate operating segment increased its gross assets under management at December 31, 2014 to $3.4 billion, an increase of $865.0 million, or 35%, from December 31, 2013.
  
  

FINANCIAL FUND MANAGEMENT:

Credit Asset Management

CVC Credit Partners, L.P. ("CCP"), the Company's global joint venture, closed Apidos CLO XIX, Ltd. (issuing notes with a par value of $500.0 million) and CVC Cordatus Loan Fund IV Limited (issuing notes with a par of EUR400.0 million) during the quarter. In February 2015, CCP closed Apidos CLO XX, Ltd. (issuing notes with a par value of $500.0 million). Since creating this joint venture in April 2012, CCP has closed 13 collateralized loan obligation issuers (issuing notes with a total par value of $6.8 billion) and expects to receive approximately $31.8 million in fees on an annual run rate basis. The Company has a 33% interest in this joint venture.

The following additional highlights contributed to our financial fund asset management operations:

• The Company's financial fund management operating segment increased its gross assets under management at December 31, 2014 to $16.1 billion, an increase of $1.9 billion, or 14%, from December 31, 2013.
  
  
• Financial fund management revenues increased 68% and 44%, to $7.6 million and $28.4 million, for the three months and year ended December 31, 2014, respectively, as compared to $4.5 million and $19.8 million for the three months and year ended December 31, 2013, respectively.
  
  

CORPORATE/OTHER:

Share Repurchases

• In September 2014, the Company's Board of Directors authorized the Company to repurchase up to an additional 1.5 million shares of its outstanding common stock.
  
  
• The Company repurchased 239,790 of its shares during the fourth quarter ended December 31, 2014 at an average price of $9.31 per share.
  
  

Dividends

• The Company's Board of Directors authorized a cash dividend of $0.06 per share on the Company's common stock which was paid on January 30, 2015 to holders of record as of the close of business on January 16, 2015. 
  
  
• RSO's Board of Directors declared a cash dividend of $0.20 per common share for its three months ended December 31, 2014.
  
  

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, for its joint ventures, 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 [e-mail].

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, or SEC. 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 SEC. 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 Opportunity REIT II was declared effective by the SEC on February 6, 2014. A written prospectus relating to these securities may be obtained by contacting Resource Securities, Inc., 1845 Walnut Street, 18th 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, consolidating statements of operations and reconciliation of GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders.

RESOURCE AMERICA, INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
				December 31,
				2014				2013
ASSETS
	Cash			$	28,031			$	19,853
	Restricted cash				725				571
	Receivables				636				541
	Loans and receivables from managed entities and related parties, net				30,303				30,923
	Investments in real estate, net				17,097				17,696
	Investment securities, at fair value				9,540				7,839
	Investments in unconsolidated loan manager				39,655				37,821
	Investments in unconsolidated entities				13,089				14,342
	Assets of consolidated variable interest entity ("VIE") - RSO
		Cash and cash equivalents (including restricted cash)			202,043				325,579
		Investments, at fair value			296,506				221,395
		Loans			2,038,435				1,397,458
		Investments in real estate and unconsolidated entities			60,007				129,562
		Other assets			131,481				76,467
			Total assets of consolidated VIE - RSO		2,728,472				2,150,461
	Property and equipment, net				5,063				5,844
	Deferred tax assets, net				23,304				27,769
		Other assets			5,416				4,791
	Total assets			$	2,901,331			$	2,318,451
LIABILITIES AND EQUITY
Liabilities:
	Accrued expenses and other liabilities			$	22,279			$	22,134
	Payables to managed entities and related parties				3,504				3,110
	Borrowings				20,412				20,619
	Liabilities of consolidated VIE - RSO
		Borrowings			1,717,132				1,320,015
		Other liabilities			57,561				55,247
		Total liabilities of consolidated VIE - RSO			1,774,693				1,375,262
			Total liabilities		1,820,888				1,421,125
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;34,489,568 and 30,378,339 shares issued (including nonvested restricted stock of 833,082 and 400,194), respectively				335				299
	Additional paid-in capital				308,134				288,555
	Accumulated deficit				(23,663	)			(26,025	)
	Treasury stock, at cost; 11,764,417 and 10,434,436 shares, respectively				(120,182	)			(107,874	)
	Accumulated other comprehensive loss				(1,030	)			(1,231	)
		Total stockholders' equity			163,594				153,724
	Noncontrolling interests				306				238
	Noncontrolling interests attributable to RSO				916,543				743,364
		Total equity			1,080,443				897,326
				$	2,901,331			$	2,318,451

RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
			Three Months Ended								Years Ended
			December 31,								December 31,
			2014				2013				2014				2013
REVENUES:
Real estate (includes revenues of $2,721, $2,806, $10,349 and $12,600 related to RSO)			$	13,849			$	17,700			$	54,861			$	57,143
Financial fund management (includes revenues of $498, $400, $2,983 and $1,120 related to RSO)				7,627				4,539				28,400				19,773
Commercial finance (no revenues related to RSO)				(6	)			(98	)			(164	)			(341	)
				21,470				22,141				83,097				76,575
Revenues from consolidated VIE - RSO				24,563				4,232				99,446				82,983
Elimination of consolidated VIE - RSO revenues attributed to operating segments				(3,208	)			(3,226	)			(13,264	)			(13,834	)
	Total revenues			42,825				23,147				169,279				145,724
COSTS AND EXPENSES:
Real estate				10,047				11,098				37,411				40,612
Financial fund management				4,844				2,386				14,824				10,155
Commercial finance				396				155				979				56
General and administrative				3,041				3,461				11,118				10,268
Provision for credit losses				(284	)			472				3,058				4,265
Depreciation and amortization				450				618				1,819				1,936
				18,494				18,190				69,209				67,292
Expenses from consolidated VIE - RSO				21,411				17,889				64,995				60,999
Elimination of consolidated VIE expenses attributed to operating segments				(3,227	)			(3,037	)			(12,601	)			(13,215	)
	Total expenses			36,678				33,042				121,603				115,076
OPERATING INCOME (LOSS)				6,147				(9,895	)			47,676				30,648
OTHER INCOME (EXPENSE):
Gain on sale of investment securities, net				6				-				445				-
Other-than-temporary impairment on investments				-				-				-				(214	)
Interest expense				(458	)			(511	)			(1,905	)			(2,036	)
Other income, net				(20	)			175				243				575
Other income, net, from consolidated VIE - RSO				7,978				9,561				25,505				23,428
Elimination of consolidated VIE other income attributed to operating segments				11				20				51				244
				7,517				9,245				24,339				21,997
Income (loss) from continuing operations before taxes				13,664				(650	)			72,015				52,645
Income tax provision				862				2,053				5,853				1,657
Income tax benefit - RSO				(1,545	)			(5,262	)			(2,212	)			(1,041	)
Income from continuing operations				14,347				2,559				68,374				52,029
Loss from discontinued operations, net of tax				-				-				-				(2	)
Net income				14,347				2,559				68,374				52,027
Net (income) loss attributable to noncontrolling interest				(56	)			3				(89	)			(20	)
Net income attributable to noncontrolling interests of consolidated VIE - RSO				(12,547	)			(1,187	)			(61,317	)			(45,581	)
Net income attributable to common shareholders			$	1,744			$	1,375			$	6,968			$	6,426
Amounts attributable to common shareholders:
Income from continuing operations			$	1,744			$	1,375			$	6,968			$	6,428
Discontinued operations				-				-				-				(2	)
Net income			$	1,744			$	1,375			$	6,968			$	6,426
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - (Continued)
(in thousands, except per share data)
(unaudited)
			Three Months Ended								Years Ended
			December 31,								December 31,
			2014				2013				2014				2013
Basic earnings per share:
Continuing operations			$	0.08			$	0.07			$	0.33			$	0.32
Discontinued operations				-				-				-				-
Net income			$	0.08			$	0.07			$	0.33			$	0.32
Weighted average shares outstanding				22,817				20,104				21,148				20,217
Diluted earnings per share:
Continuing operations			$	0.08			$	0.06			$	0.31			$	0.29
Discontinued operations				-				-				-				-
Net income			$	0.08			$	0.06			$	0.31			$	0.29
Weighted average shares outstanding				23,094				21,828				22,371				21,905

RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for the fourth quarter ended December 31, 2014:
		RAI				RSO				Eliminations				Consolidated
REVENUES:
Real estate		$	13,849			$	-			$	-			$	13,849
Financial fund management			7,627				-				-				7,627
Commercial finance			(6	)			-				-				(6	)
			21,470				-				-				21,470
Revenues from consolidated VIE - RSO			-				24,563				-				24,563
Elimination of consolidated VIE revenues attributed to operating segments			-				-				(3,208	)			(3,208	)
	Total revenues		21,470				24,563				(3,208	)			42,825
COSTS AND EXPENSES:
Real estate			10,047				-				-				10,047
Financial fund management			4,844				-				-				4,844
Commercial finance			396				-				-				396
General and administrative			3,041				-				-				3,041
Provision for credit losses			(284	)			-				-				(284	)
Depreciation and amortization			450				-				-				450
			18,494				-				-				18,494
Expenses from consolidated VIE - RSO			-				19,866				1,545				21,411
Elimination of consolidated VIE expenses attributed to operating segments			-				-				(3,227	)			(3,227	)
	Total expenses		18,494				19,866				(1,682	)			36,678
OPERATING INCOME			2,976				4,697				(1,526	)			6,147
OTHER INCOME (EXPENSE):
Gain on sale of investment securities, net			6				-				-				6
Interest expense			(458	)			-				-				(458	)
Other income, net			553				-				(573	)			(20	)
Other income, net, from consolidated VIE - RSO			-				7,978				-				7,978
Elimination of consolidated VIE other income, net			-				-				11				11
			101				7,978				(562	)			7,517
Income before taxes			3,077				12,675				(2,088	)			13,664
Income tax provision (benefit)			862				-				(1,545	)			(683	)
Net income			2,215				12,675				(543	)			14,347
Net income attributable to noncontrolling interests			(56	)			-				-				(56	)
Net income attributable to noncontrolling interests - RSO			-				(5,769	)			(6,778	)			(12,547	)
Net income attributable to common shareholders		$	2,159			$	6,906			$	(7,321	)		$	1,744

RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for the fourth quarter ended December 31, 2013:
	RAI				RSO				Eliminations				Consolidated
REVENUES:
Real estate	$	17,700			$	-			$	-			$	17,700
Financial fund management		4,539				-				-				4,539
Commercial finance		(98	)			-				-				(98	)
		22,141				-				-				22,141
Revenues from consolidated VIE - RSO		-				4,232				-				4,232
Elimination of consolidated VIE revenues attributed to operating segments		-				-				(3,226	)			(3,226	)
Total revenues		22,141				4,232				(3,226	)			23,147
COSTS AND EXPENSES:
Real estate		11,098				-				-				11,098
Financial fund management		2,386				-				-				2,386
Commercial finance		155				-				-				155
General and administrative		3,461				-				-				3,461
Provision for credit losses		472				-				-				472
Depreciation and amortization		618				-				-				618
		18,190				-				-				18,190
Expenses from consolidated VIE - RSO		-				12,627				5,262				17,889
Elimination of consolidated VIE expenses attributed to operating segments		-				-				(3,037	)			(3,037	)
Total expenses		18,190				12,627				2,225				33,042
OPERATING INCOME (LOSS)		3,951				(8,395	)			(5,451	)			(9,895	)
OTHER INCOME (EXPENSE):
Interest expense		(511	)			-				-				(511	)
Other income, net		747				-				(572	)			175
Other income, net, from consolidated VIE - RSO		-				9,561				-				9,561
Elimination of consolidated VIE other income, net		-				-				20				20
		236				9,561				(552	)			9,245
Income before taxes		4,187				1,166				(6,003	)			(650	)
Income tax provision (benefit)		2,053				-				(5,262	)			(3,209	)
Net income		2,134				1,166				(741	)			2,559
Net loss attributable to noncontrolling interests		3				-				-				3
Net income attributable to noncontrolling interests - RSO		-				(2,114	)			927				(1,187	)
Net income (loss) attributable to common shareholders	$	2,137			$	(948	)		$	186			$	1,375

RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for the year ended December 31, 2014:
		RAI				RSO				Eliminations				Consolidated
REVENUES:
Real estate		$	54,861			$	-			$	-			$	54,861
Financial fund management			28,400				-				-				28,400
Commercial finance			(164	)			-				-				(164	)
			83,097				-				-				83,097
Revenues from consolidated VIE - RSO			-				99,446				-				99,446
Elimination of consolidated VIE - RSO revenues attributed to operating segments			-				-				(13,264	)			(13,264	)
	Total revenues		83,097				99,446				(13,264	)			169,279
COSTS AND EXPENSES:
Real estate			37,411				-				-				37,411
Financial fund management			14,824				-				-				14,824
Commercial finance			979				-				-				979
General and administrative			11,118				-				-				11,118
Provision for credit losses			3,058				-				-				3,058
Depreciation and amortization			1,819				-				-				1,819
			69,209				-				-				69,209
Expenses from consolidated VIE - RSO			-				62,783				2,212				64,995
Elimination of consolidated VIE - RSO expenses attributed to operating segments			-				-				(12,601	)			(12,601	)
	Total expenses		69,209				62,783				(10,389	)			121,603
OPERATING INCOME			13,888				36,663				(2,875	)			47,676
OTHER INCOME (EXPENSE):
Gain on sale of investment securities, net			445				-				-				445
Interest expense			(1,905	)			-				-				(1,905	)
Other income, net			2,532				-				(2,289	)			243
Other income, net, from consolidated VIE - RSO			-				25,505				-				25,505
Elimination of consolidated VIE -RSO other income, net			-				-				51				51
			1,072				25,505				(2,238	)			24,339
Income from operations before taxes			14,960				62,168				(5,113	)			72,015
Income tax provision			5,853				-				(2,212	)			3,641
Net income			9,107				62,168				(2,901	)			68,374
Net income attributable to noncontrolling interests			(89	)			-				-				(89	)
Net income attributable to noncontrolling interests - RSO			-				(18,141	)			(43,176	)			(61,317	)
Net income attributable to common shareholders		$	9,018			$	44,027			$	(46,077	)		$	6,968

RESOURCE AMERICA, INC.
CONSOLIDATING STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
The following table presents the consolidating statement of operations for the year ended December 31, 2013:
	RAI				RSO				Eliminations				Consolidated
REVENUES:
Real estate	$	57,143			$	-			$	-			$	57,143
Financial fund management		19,773				-				-				19,773
Commercial finance		(341	)			-				-				(341	)
		76,575				-				-				76,575
Revenues from consolidated VIE - RSO		-				82,983				-				82,983
Elimination of consolidated VIE revenues attributed to operating segments		-				-				(13,834	)			(13,834	)
Total revenues		76,575				82,983				(13,834	)			145,724
COSTS AND EXPENSES:
Real estate		40,612				-				-				40,612
Financial fund management		10,155				-				-				10,155
Commercial finance		56				-				-				56
General and administrative		10,268				-				-				10,268
Provision for credit losses		4,265				-				-				4,265
Depreciation and amortization		1,936				-				-				1,936
		67,292				-				-				67,292
Expenses from consolidated VIE - RSO		-				59,958				1,041				60,999
Elimination of consolidated VIE expenses attributed to operating segments		-				-				(13,215	)			(13,215	)
Total expenses		67,292				59,958				(12,174	)			115,076
OPERATING INCOME		9,283				23,025				(1,660	)			30,648
OTHER INCOME (EXPENSE):
Other-than-temporary impairment on investments		(214	)			-				-				(214	)
Interest expense		(2,036	)			-				-				(2,036	)
Other income, net		2,816				-				(2,241	)			575
Other income, net, from consolidated VIE - RSO		-				23,428				-				23,428
Elimination of consolidated VIE other income, net		-				-				244				244
		566				23,428				(1,997	)			21,997
Income from continuing operations before taxes		9,849				46,453				(3,657	)			52,645
Income tax provision		1,657				-				(1,041	)			616
Income from continuing operations		8,192				46,453				(2,616	)			52,029
Loss from discontinued operations, net of tax		(2	)			-				-				(2	)
Net income		8,190				46,453				(2,616	)			52,027
Net income attributable to noncontrolling interests		(20	)			-				-				(20	)
Net income attributable to noncontrolling interests - RSO		-				(7,221	)			(38,360	)			(45,581	)
Net income attributable to common shareholders	$	8,170			$	39,232			$	(40,976	)		$	6,426

Schedule I

RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (1)
(in thousands, except per share data)
(unaudited)
		Three Months Ended							Years Ended
		December 31,							December 31,
		2014				2013			2014			2013
Net income attributable to common shareholders - GAAP		$	1,744			$	1,375		$	6,968		$	6,426
Adjustments, net of tax:
Loss, net of eliminations, attributable to consolidation of RSO			415				762			2,050			1,744
Loss attributable to commercial finance			81				464			2,661			4,430
Deferred tax (benefit) provision			(105	)			887			380			(805	)
Adjusted net income attributable to common shareholders		$	2,135			$	3,488		$	12,059		$	11,795
Adjusted weighted average diluted shares outstanding			23,094				21,828			22,371			21,905
Adjusted net income attributable to common shareholders per common per share-diluted		$	0.09			$	0.16		$	0.54		$	0.54

(1)	Adjusted net income attributable to common shareholders presents the Company's operations prior to the consolidation of RSO and without the effect of its commercial finance operations and deferred tax (benefit) provision. 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 year ended December 31, 2014 and 2013 separately from its commercial finance operations, RSO and deferred tax (benefit) provision. Adjusted net income attributable to common shareholders should not be considered as an alternative to net income attributable to common shareholders (computed in accordance with GAAP). Instead, adjusted net income attributable to common shareholders should be reviewed in connection with net income attributable to common shareholders in the Company's consolidated financial statements, to help analyze how the Company's business is performing.

Contact:
Thomas C. Elliott
Chief Financial Officer
Resource America, Inc.
One Crescent Drive, Suite 203
Philadelphia, PA 19112
[phone]
[phone] (fax)