(Source: MARKETWIRE)Resource America, Inc. (NASDAQ: REXI) (the "Company") reported adjusted (loss) income from continuing operations, a non-GAAP measure, as follows: a loss of $37,000, or $0.00 per common share-diluted, and income of $604,000, or $0.03 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to income of $1.6 million, or $0.08 per common share-diluted, and $10.8 million, or $0.58 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2008, respectively. A reconciliation of the Company's reported GAAP loss from continuing operations to adjusted (loss) income from continuing operations is included as Schedule I to this release.

Jonathan Cohen, CEO and President commented, "Our financial results reflect our continued commitment to ramping professional and marketing costs to take advantage of the opportunity in distressed loans and real estate. Nonetheless, this quarter shows what we think will be the start on the road back to true profitability. We are excited about the continued fundraising, lower debt levels and superb positioning of our leasing and distressed real estate platforms."

The Company reported a net loss of $204,000, or $0.01 per common share-diluted, and $15.1 million, or $0.85 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to a net loss of $8.0 million, or $0.46 per common share-diluted, and $17.0 million, or $0.97 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2008, respectively. The loss recorded for the nine months ended June 30, 2009 was primarily the result of non-cash charges, net of tax, of $15.5 million, including a $7.2 million loss related to the Company's decision to sell its interest in Apidos CDO VI recorded during the second fiscal quarter ended March 31, 2009.

The Company also reported:

-- Capital Fundraising.

     --  The Company has raised a total of $146.0 million of investment         funds during fiscal 2009 for funds sponsored and managed by         Resource Real Estate Holdings, Inc. ("Resource Real Estate")         and LEAF Financial Corp. ("LEAF"); and     --  Resource Real Estate filed a $750.0 million registration         statement with the Securities and Exchange Commission on July         7, 2009 for Resource Real Estate Opportunity REIT, Inc. of         which Resource Real Estate will be the external manager. 

-- Debt Reduction. As of June 30, 2009, the Company reduced its consolidated borrowings outstanding by $392.9 million, or 68%, to $181.6 million from $574.5 million at June 30, 2008. Borrowings at June 30, 2009 include a $130.6 million non-recourse revolving credit facility at LEAF and $51.0 million of other debt, which includes $13.6 million of mortgage debt secured by the underlying properties.

-- Adjusted Revenues and Adjusted Operating (Loss) Income - Non-GAAP Measures. For the third fiscal quarter and nine months ended June 30, 2009, the Company reported adjusted revenues of $22.4 million and $81.8 million, respectively, as compared to $39.1 million and $141.4 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. For the third fiscal quarter and nine months ended June 30, 2009, the Company reported an adjusted operating loss of $336,000 and adjusted operating income of $7.4 million, respectively, as compared to adjusted operating income of $8.8 million and $52.5 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. Adjusted revenues and adjusted operating (loss) income include $(263,000) and $(226,000) of pre-tax fair value adjustments on investments reported under the equity method of accounting for the third fiscal quarter and nine months ended June 30, 2009, respectively, as compared to adjustments of $9.7 million and $17.5 million for the third fiscal quarter and nine months ended June 30, 2008, respectively. A reconciliation of the Company's total GAAP revenue and GAAP operating (loss) income to adjusted revenue and adjusted operating (loss) income is included as Schedule II to this release.

Assets Under Management

Assets under management decreased $4.5 billion, or 24%, to $14.3 billion at June 30, 2009 from $18.8 billion at June 30, 2008.

The following table details the Company's assets under management by operating segment:

                                                       At June 30,                                              ------------------------------                                                  2009            2008                                              --------------  -------------- Financial fund management                    $ 11.2 billion  $ 15.4 billion Real estate                                     1.7 billion     1.8 billion Commercial finance                              1.4 billion     1.6 billion                                              --------------  --------------                                              $ 14.3 billion  $ 18.8 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, 2008.

Book Value

As of June 30, 2009, the Company's book value per common share was $7.32 per share. Total stockholders' equity was $131.4 million as of June 30, 2009 as compared to $156.6 million as of June 30, 2008. Total common shares outstanding were 17,950,360 as of June 30, 2009 as compared to 17,575,599 as of June 30, 2008.

Highlights for the Third Fiscal Quarter Ended June 30, 2009 and Recent Developments

 --  The Company has reduced its total borrowings to $181.6 million at June     30, 2009, a decrease of $372.4 million from September 30, 2008.  This     reduction largely reflects the sale of all or part of its interests in     Apidos CDO VI and LEAF Commercial Finance Fund ("LCFF"), two investment     vehicles we sponsored and previously consolidated.  These sales eliminated     the senior notes of Apidos CDO VI ($213.3 million net outstanding at     September 30, 2008) and LCFF debt ($143.8 million at September 30, 2008).     Additionally, the Company reduced its outstanding borrowings on its     corporate revolving lines of credit by $16.1 million. --  The Company has reduced its recourse corporate borrowings to $34.5     million at June 30, 2009. --  Resource Real Estate continued fundraising for Resource Real Estate     Investors 7, L.P. ("RREI 7"), a $40.0 million offering that is investing in     multifamily real estate assets.  Through August 4, 2009, Resource Real     Estate has raised $29.4 million through RREI 7 and anticipates closing this     fund in August 2009. --  Resource Real Estate continued fundraising for Resource Real Estate     Opportunity Fund, L.P. ("RREI Opp Fund"), a $40.0 million offering that     will invest in discounted real estate.  Through August 4, 2009, Resource     Real Estate has raised $14.7 million through RREI Opp Fund and anticipates     closing this fund in December 2009. --  A joint venture with an institutional partner to acquire distressed     real estate assets has acquired its fifth asset during the third fiscal     quarter ended June 30, 2009, for which the institutional partner has     invested $3.2 million. --  Resource Real Estate filed a $750.0 million registration statement     with the Securities and Exchange Commission on July 7, 2009 for Resource     Real Estate Opportunity REIT, Inc. --  Resource Real Estate increased the apartment and condominium units it     manages or whose management it supervises to 16,580 at June 30, 2009 from     15,758 at June 30, 2008.  This includes a portfolio of 50 multifamily     properties representing 12,134 apartment units managed by Resource Real     Estate Management, Inc. ("Resource Residential"), the Company's property     management subsidiary. --  LEAF continued fundraising for LEAF 4, a $200.0 million public     offering for an equipment leasing partnership.  Through August 4, 2009,     LEAF has raised $87.9 million through LEAF 4 and anticipates closing this     fund in August 2010. --  The Company's Board of Directors authorized the payment of a cash     dividend paid on June 30, 2009 in the amount of $0.03 per share on the     Company's common stock to all holders of record at the close of business on     May 29, 2009. --  Resource Capital Corp. ("RCC") (NYSE: RSO), a real estate investment     trust for which the Company is the external manager and a shareholder, paid     a cash dividend of $0.30 per common share for its second quarter ended June     30, 2009. --  The Company generated $34.5 million of cash from operating activities     from continuing operations as adjusted for the nine months ended June 30,     2009.  A reconciliation of net cash (used in) provided by operating     activities of continuing operations to net cash provided by operating     activities of continuing operations as adjusted, a non-GAAP measure, is     included as Schedule III to this release.      

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originates, service and manage investment opportunities for its own account and for outside investors in the commercial finance, real estate and financial fund management 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. 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.

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 consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, and reconciliations of GAAP loss from continuing operations to adjusted (loss) income from continuing operations, GAAP revenue to adjusted revenue and GAAP operating (loss) income to adjusted operating (loss) income and net cash (used in) provided by operating activities of continuing operations to net cash provided by operating activities of continuing operations as adjusted.