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<SEC-DOCUMENT>0001181431-05-028128.txt : 20050516
<SEC-HEADER>0001181431-05-028128.hdr.sgml : 20050516
<ACCEPTANCE-DATETIME>20050516160550
ACCESSION NUMBER:		0001181431-05-028128
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050516
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050516
DATE AS OF CHANGE:		20050516

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REALTY INVESTORS INC
		CENTRAL INDEX KEY:			0001102238
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS [6510]
		IRS NUMBER:				752847135
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15663
		FILM NUMBER:		05834444

	BUSINESS ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		4695224200

	MAIL ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd79057.htm
<DESCRIPTION>QUARTERLY EARNINGS
<TEXT>



<HTML>


<HEAD>








<META NAME="_AdHocReviewCycleID" CONTENT="1296667568">


<META NAME="_EmailSubject" CONTENT="American Realty Investors, Inc. - Form 8-K concerning earnings release">


<META NAME="_AuthorEmail" CONTENT="aglendinning@pmklaw.com">


<META NAME="_AuthorEmailDisplayName" CONTENT="Glendinning, Ashley">


</HEAD>


<BODY>





<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=4>SECURITIES AND EXCHANGE COMMISSION</P>


<P ALIGN="JUSTIFY">&#9;Washington, D.C. 20549</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=5>FORM 8-K</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=4>CURRENT REPORT</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;Date of Report: May 16, 2005</P>


<P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Date of Earliest Event Reported)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B><FONT SIZE=5>AMERICAN REALTY INVESTORS, INC.</P>


</B></FONT><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Exact Name of Registrant as Specified in its Charter)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<TABLE BORDER CELLSPACING=1 BORDERCOLOR="#ffffff" CELLPADDING=8 WIDTH=624>


<TR><TD WIDTH="35%" VALIGN="TOP">


<P>&nbsp;</P>


<P>&#9;<B>Nevada</B></TD>


<TD WIDTH="32%" VALIGN="TOP">





<P>&#9;<B>001-15663</B></TD>


<TD WIDTH="33%" VALIGN="TOP">





<P>&#9;<B>75-2847135</B></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(State or other </P>


<P ALIGN="CENTER">jurisdiction of incorporation)</FONT></TD>


<TD WIDTH="32%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(Commission</P>


<P ALIGN="CENTER">File No.)</FONT></TD>


<TD WIDTH="33%" VALIGN="TOP">


<FONT SIZE=2><P ALIGN="CENTER">(I.R.S. Employer</P>


<P ALIGN="CENTER">Identification No.)</FONT></TD>


</TR>


</TABLE>





<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B>1800 Valley View Lane, Suite 300</P>


<P ALIGN="JUSTIFY">&#9;Dallas, Texas 75234</P>


</B><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Address of principal executive offices)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&#9;<B>469-522-4200</P>


</B><P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(Registrant<FONT FACE="WP TypographicSymbols">&#61;</FONT>


s telephone number, including area code)</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:</P>


<P ALIGN="JUSTIFY"></P><DIR>


<DIR>


<DIR>





</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>


</FONT><P ALIGN="JUSTIFY"><FONT FACE="WP TypographicSymbols">&#71;</FONT>


<FONT SIZE=2>&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>


</FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P></DIR>


</DIR>


</DIR>





<P ALIGN="JUSTIFY"></P>


<B><P ALIGN="JUSTIFY">Section 2 <FONT FACE="WP TypographicSymbols">&#66;</FONT>


 Financial Information</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Item 2.02.  Results of Operations and Financial Condition</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">On March 16, 2005, American Realty Investors, Inc. (<FONT FACE="WP TypographicSymbols">&#65;</FONT>


ARL<FONT FACE="WP TypographicSymbols">&#64;</FONT>


 or the <FONT FACE="WP TypographicSymbols">&#65;</FONT>


Company<FONT FACE="WP TypographicSymbols">&#64;</FONT>


) announced its operational results for the quarter ended March 31, 2005.  A copy of the announcement is attached as Exhibit <FONT FACE="WP TypographicSymbols">&#65;</FONT>


99.1.<FONT FACE="WP TypographicSymbols">&#64;</FONT>


</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">The information furnished pursuant to Item 2.02 in this Form 8-K, including Exhibit <FONT FACE="WP TypographicSymbols">&#65;</FONT>


99.1<FONT FACE="WP TypographicSymbols">&#64;</FONT>


 attached hereto, shall not be deemed to be <FONT FACE="WP TypographicSymbols">&#65;</FONT>


filed<FONT FACE="WP TypographicSymbols">&#64;</FONT>


 for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless we specifically incorporate it by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934.  We undertake no duty or obligation to publicly-update or revise the information furnished pursuant to Item 2.02 of this Current Report on Form 8-K.</P>


<P ALIGN="JUSTIFY"></P>


<B><P ALIGN="JUSTIFY">Section 9 <FONT FACE="WP TypographicSymbols">&#66;</FONT>


 Financial Statements and Exhibits</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Item 9.01.  Financial Statements and Exhibits</P>


</B><P ALIGN="JUSTIFY"></P><DIR>


<DIR>


<DIR>


<DIR>





<P ALIGN="JUSTIFY">(c)&#9;Exhibits.</P>


<P ALIGN="JUSTIFY"></P></DIR>


</DIR>


</DIR>


</DIR>





<P ALIGN="JUSTIFY">The following exhibit is furnished with this Report:</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 BORDERCOLOR="#ffffff" CELLPADDING=8 WIDTH=623>


<TR><TD WIDTH="20%" VALIGN="MIDDLE">


<P>&nbsp;</P>


<B><P ALIGN="CENTER">Exhibit Designation</B></TD>


<TD WIDTH="80%" VALIGN="TOP">





<P>&nbsp;</P>


<P>&#9;<B>Description of Exhibit</B></TD>


</TR>


<TR><TD WIDTH="20%" VALIGN="TOP">





<P>&#9;99.1*</TD>


<TD WIDTH="80%" VALIGN="TOP">





<P ALIGN="JUSTIFY">Press Release dated May 16, 2005</TD>


</TR>


<TR><TD VALIGN="TOP" COLSPAN=2>





<P>_____________________</P>


<P>*Furnished herewith.</TD>


</TR>


</TABLE>


</CENTER></P>





<P ALIGN="JUSTIFY">&#9;<B>SIGNATURES</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly-caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly-authorized.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Dated: March 16, 2005&#9;&#9;&#9;AMERICAN REALTY INVESTORS, INC.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">By: <U>  /s/    Ted P. Stokely_____________</P>


</U><P ALIGN="JUSTIFY">        Ted P. Stokely</P>


<P ALIGN="JUSTIFY">        Chairman of the Board</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<B>EXHIBIT 99.1</P>


</B><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P></BODY>


</HTML>








</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.
<SEQUENCE>2
<FILENAME>rrd79057_5834.htm
<TEXT>



<HTML>


<HEAD>








<TITLE>PRESS RELEASE</TITLE>


<META NAME="_AdHocReviewCycleID" CONTENT="1548699616">


<META NAME="_EmailSubject" CONTENT="Schedule">


<META NAME="_AuthorEmail" CONTENT="SteveHill@michaelpartners.com">


<META NAME="_AuthorEmailDisplayName" CONTENT="Steve Hill">


</HEAD>


<BODY LINK="#0000ff">





<B><FONT SIZE=2><P ALIGN="RIGHT">EXHIBIT 99.1</P></B></FONT>


<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=715>


<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=101>


<B><FONT FACE="Arial" SIZE=4><P>NEWS RELEASE</P>





</B></FONT><I><FONT FACE="Arial" SIZE=3><P>FOR IMMEDIATE RELEASE</P>


</I></FONT><B><FONT FACE="Arial" SIZE=4></B></FONT></TD>


<TD WIDTH="50%" VALIGN="TOP" HEIGHT=101>


<FONT FACE="Arial" SIZE=3><P>&nbsp;</P>


<P>&nbsp;</P>


<P>Contact: </P>


<P>American Realty Investors Investor Relations</P>


<P>(800) 400-6407</P>


<P>investor.relations@primeasset.com</FONT></TD>


</TR>


</TABLE>





<I><FONT FACE="Arial" SIZE=1>


</I></FONT><B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">American Realty Investors, Inc. Reports First Quarter 2005 Results</P>


</B></FONT><FONT FACE="Arial" SIZE=1>


</FONT><FONT FACE="Arial" SIZE=2><P>DALLAS  (May 16, 2005) -- American Realty Investors, Inc. (NYSE: ARL), a Dallas-based real estate investment company, announced today that the company reported net income of $20.0 million, or $1.97 per share, for the three months ending March 31, 2005, compared to net income of $733,000, or $0.07 per share, in 2004.</P>


</FONT><FONT FACE="Arial" SIZE=1>


</FONT><FONT FACE="Arial" SIZE=2><P>Income, sales and related expenses and costs for the three months of 2005 resulted in increased income from operations of $38.2 million, compared to $17.6 million in 2004, and included:</P>


</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Income from rents increased to $41.0 million in 2005, from $39.7 million in 2004.  The increase was primarily attributable to completed apartment construction, offset by lower commercial occupancy.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Property operations expenses increased to $28.8 million in 2005, from $27.8 million in 2004.  The increase was also attributable to completed apartment construction, offset by lower commercial occupancy.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Restaurant sales increased to $8.6 million in 2005, from $8.2 million in 2004.  The increase is primarily attributable to a 2.0% increase in same-store sales.  Also, two new restaurant concepts opened in 2004.  Cost of sales increased to $6.8 million in 2005, from $6.2 million in 2004.  The increase was primarily attributable to increased sales, increased raw product costs, and fuel surcharges.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Land sales, cost of sales and gain on land sales was $52.3 million, $28.1 million and $24.2 million in 2005, compared to $30.2 million, $21.3 million and $3.8 million in 2004.  The gain on land sales for the three months ended March 31, 2004, included the deferral of $5.2 million of gain.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>


</FONT><FONT FACE="Arial" SIZE=2><P>Other income increased to $1.8 million in 2005, from $1.5 million in 2004.  Other income included: </P>


</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Equity in the income (loss) of investees improved to $60,000 in 2005, compared to $(145,000) in 2004.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Interest income increased to $1.6 million in 2005, from $1.0 million in 2004.  The increase was primarily attributable to new notes receivable related to seller financing of land sales and advances to partners in the fourth quarter of 2004 and the first quarter of 2005.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>


</FONT><FONT FACE="Arial" SIZE=2><P>Other expenses (excluding property operations expenses and costs of sales for restaurant and land) decreased in the three months of 2005 to $30.0 million, from $31.2 million in 2004, and included:</P>


</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><B><FONT FACE="Arial" SIZE=2><LI>Interest expense of $16.1 million in 2005 approximated the $16.1 million in 2004.  Apartment interest expense increased, primarily due to completed construction, while land interest expense decreased, primarily due to reduced note balances and reduced interest rates.</LI></UL>





</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><FONT FACE="Arial" SIZE=2><LI>Depreciation and amortization expense of $5.8 million in 2005 approximated the $6.0 million in 2004.</LI></UL>





</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><FONT FACE="Arial" SIZE=2><LI>General and administrative expenses decreased to $2.7 million in 2005, from $4.6 million in 2004.  The decrease was primarily attributable to reduced legal fees and reduced expense reimbursements paid to ARI's advisor.</LI></UL>





</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><FONT FACE="Arial" SIZE=2><LI>Advisory fees of $2.9 million in 2005 approximated the $2.9 million in 2004.</LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>


</FONT><FONT FACE="Arial" SIZE=2><P>Net income from discontinued operations (non-land properties sold and held-for-sale) decreased to $10.7 million in 2005, from $13.4 million in 2004.  Included in the net income from discontinued operations were:</P>


</FONT><B><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><FONT FACE="Arial" SIZE=2><LI>Gain on real estate sales of $11.0 million in 2005, compared to $13.9 million in 2004.</LI></UL>





</FONT><FONT FACE="Arial" SIZE=1>





<UL>


</FONT><FONT FACE="Arial" SIZE=2><LI>Equity in gain on real estate sales by investees of $783,000 in 2004. </LI></UL>





</B></FONT><FONT FACE="Arial" SIZE=1>


</FONT><B><I><FONT FACE="Arial" SIZE=2><P>About American Realty Investors, Inc.</P>


</B></I><P>American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers and developed and undeveloped land.  For more information, go to ARI's web site.</P>


</FONT><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


</FONT><B><P ALIGN="CENTER">AMERICAN REALTY INVESTORS, INC.</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">FINANCIAL HIGHLIGHTS</P>


<FONT SIZE=1><P ALIGN="CENTER"></P>


</FONT><FONT SIZE=1><P ALIGN="CENTER">&nbsp;</P></B></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=528>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">For the Three Months<BR>


<U>Ended March 31,</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2005</B></U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2004</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">(dollars in thousands, except per share)</B></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Income from rents</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;$&#9;40,957</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">$ 39,712</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Property operations expense&#9;</FONT></TD>


<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;28,819</U></FONT></TD>


<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">27,779</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Operating income</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;12,138</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">11,933</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Gain on land sales</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;24,178</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">3,752</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Restaurant Sales</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;8,620</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">8,169</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Cost of sales</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;6,754</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">6,213</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Gross margin</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;1,866</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">1,956</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Income from operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;38,182</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">17,641</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Equity in income (loss) of investees</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9; 60</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">(145)</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Interest and other income</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;<U>1,696</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">1,676</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Total other income</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;1,756</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">1,531</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Total other expenses</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>&#9;29,979</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">31,239</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="TOP" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Net income (loss) from continuing operations</FONT></TD>


<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;9,959</FONT></TD>


<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">(12,067)</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Discontinued operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;10,719</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">13,450</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Net income</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;&#9;20,678</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">1,383</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Preferred dividend requirement</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>&#9;(650</U>)</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">      (650</U>)</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Net income applicable to Common shares</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>$&#9;20,028</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">$      733</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Basic Earnings Per Share</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Net income (loss) from continuing operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;$&#9;0.91</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">$    (1.24)</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>   Correction of accounting error in prior period</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;&#9;<FONT FACE="Symbol">&#190;</FONT>


</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;&#9;.05</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Discontinued operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>&#9;1.06</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">       1.26</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY"> Net income applicable to Common shares</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>$&#9;1.97</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">$     0.07</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Diluted Earnings Per Share</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Net income (loss) from continuing operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;$&#9;0.77</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">$    (1.24)</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff"><DIR>





<FONT SIZE=2><P>   Correction of accounting error in prior period</DIR>


</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;&#9;<FONT FACE="Symbol">&#190;</FONT>


</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;&#9;.05</FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Discontinued operations</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>&#9;0.83</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">       1.26</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY"> Net income applicable to Common shares</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;<U>$&#9;1.60</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">$     0.07</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">Weighted average Common shares used to compute </P>


<P ALIGN="JUSTIFY">   earnings per share:</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Basic</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">10,149,000</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">10,644,666</U></FONT></TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P ALIGN="JUSTIFY">   Diluted</FONT></TD>


<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">12,907,309</U></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P ALIGN="JUSTIFY">10,644,666</U></FONT></TD>


</TR>


</TABLE>


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