SCOTTSDALE, Ariz., May 8, 2013 (GLOBE NEWSWIRE) -- AV Homes, Inc. (Nasdaq:AVHI) a developer and builder of active adult and conventional home communities in Arizona and Florida, today announced results for its first quarter ended March 31, 2013.
The Company reported a net loss $4.8 million, or 38 cents per diluted share, on revenues of $25.1 million for the three months ended March 31, 2013, compared to a net loss of $8.5 million, or 68 cents per diluted share, on revenues of $26.7 million for the three months ended March 31, 2012.
During the three months ended March 31, 2013, the Company closed on 81 homes, a 29% increase from the 63 homes closed during the first three months of 2012. The dollar volume of these closings increased 37% to $20.2 million, compared to a dollar volume of $14.7 million during the same period in 2012.
The number of housing contracts signed, net of cancellations, during the three months ended March 31, 2013 increased 27% to 135 units, compared to 106 units during the same period in 2012. The dollar value of the contracts signed during the first quarter increased 27% to $29.4 million, compared to $23.2 million during the same period one year ago. The backlog of homes under contract but not yet closed at March 31, 2013 increased 70% to 239 units, representing a dollar volume of $53.2 million, compared to 141 units with a dollar volume of $30.1 million at March 31, 2012.
The overall average unit price per closing rose 7% from $233,000 in the first quarter of 2012 to $249,000 in the first quarter of 2013. The average sales price of new contracts decreased slightly from $219,000 to $218,000 due primarily to a mix of lower priced homes sold in the Company's active adult division.
During the three months ended March 31, 2013, the Company reported $2.3 million in revenue from the sale of commercial, industrial and other lands, which generated $1.4 million in net income to the Company compared to $9.1 million in revenue and $3.1 million in net income during the first quarter of 2012.
President and Chief Executive Officer Roger A. Cregg said the Company's dual initiatives of growing revenue and lowering costs through operational efficiency are improving bottom line performance. "We continue to focus on improving our building processes to drive margin improvement and better align our product offerings with our customers' expectations. During the quarter, this process contributed to an increase in our contribution margin (excluding impairments) from 13% to 16% on a year-over-year basis," Cregg said. "We are also benefitting from the strengthening homebuilding economy, especially in Central Florida where we have a significant inventory of lots and land. We are now deploying some of these assets into our Joseph Carl Homes division to serve first-time and move-up home buyers. The Orlando market is experiencing a decline in community inventories and we are well positioned to take advantage of this trend," Cregg added.
The Company will hold a conference call and webcast on Thursday, May 9, 2013 to discuss its first quarter financial results. The conference call will begin at 8:30 a.m. EDT. The conference call can be accessed live over the telephone by dialing (877) 643-7158 or for international callers by dialing (914) 495-8565. Please dial-in 10 minutes before the start of the call. A replay will be available on May 9, 2013 at 5:00 p.m. EDT and can be accessed by dialing (855) 859-2056 or for international callers by dialing (404) 537-3406; the conference ID is 59358300. The replay will be available until May 16, 2013. In order to access the live webcast, please go to the Investors section of AV Homes' website at www.avhomesinc.com and click on the webcast link that will be made available. A replay will be available shortly after the original webcast.
AV Homes, Inc. is engaged in homebuilding, community development and land sales in Florida and Arizona. Its principal operations are conducted near Orlando, Florida and in the Phoenix, Arizona markets. The company serves active adults 55+ with its Vitalia brand and also builds communities for people of all ages under its Joseph Carl Homes brand. AV Homes common shares trade on NASDAQ under the symbol AVHI.
This news release, the conference call and the webcast contain "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of AV Homes, Inc. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release, the conference call and the webcast. Although our management believes these expectations, estimates, or projections to be reasonable as of the date of this news release, the conference call and the webcast, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies which could cause our actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause our actual results or performance to differ materially from our forward-looking statements include those set forth in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2012 and in our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. AV Homes disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.
| AV HOMES, INC. AND SUBSIDIARIES | ||
| Consolidated Balance Sheets | ||
| (Dollars in thousands, except per share amounts) | ||
| March 31, | December 31, | |
| 2013 | 2012 | |
| Assets | (unaudited) | |
| Cash and cash equivalents | $ 71,087 | $ 79,815 |
| Restricted cash | 4,727 | 4,682 |
| Land and other inventories | 180,826 | 171,044 |
| Receivables, net | 6,362 | 6,730 |
| Income tax receivable | 1,293 | 1,293 |
| Property and equipment, net | 36,395 | 36,661 |
| Investments in and notes receivable from unconsolidated entities | 1,240 | 1,220 |
| Prepaid expenses and other assets | 10,156 | 10,777 |
| Assets held for sale | 20,191 | 25,649 |
| Total Assets | $ 332,277 | $ 337,871 |
| Liabilities and Equity | ||
| Liabilities | ||
| Accounts payable | $ 4,719 | $ 4,656 |
| Accrued and other liabilities | 11,576 | 12,978 |
| Customer deposits and deferred revenues | 2,156 | 1,985 |
| Estimated development liability for sold land | 32,955 | 32,974 |
| Notes Payable | 105,402 | 105,402 |
| Total Liabilities | 156,808 | 157,995 |
| Equity | ||
| Common Stock, par value $1 per share | ||
| Authorized: 50,000,000 shares | ||
| Issued: 12,898,251 shares at March 31, 2013 | ||
| 12,938,157 shares at December 31, 2012 | 12,898 | 12,938 |
| Additional paid-in capital | 262,651 | 262,363 |
| Retained (deficit) earnings | (110,869) | (106,110) |
| 164,680 | 169,191 | |
| Treasury stock: at cost, 110,874 shares at March 31, 2013 and December 31, 2012 | (3,019) | (3,019) |
| Total AV Homes stockholders' equity | 161,661 | 166,172 |
| Non-controlling interest | 13,808 | 13,704 |
| Total Equity | 175,469 | 179,876 |
| Total Liabilities and Equity | $ 332,277 | $ 337,871 |
| AV HOMES, INC. AND SUBSIDIARIES | ||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | ||
| For the three months ended March 31, 2013 and 2012 | ||
| (unaudited) | ||
| (Dollars in thousands except per-share amounts) | ||
| Three Months | ||
| 2013 | 2012 | |
| Revenues | ||
| Real estate revenues | ||
| Homebuilding | $ 22,548 | $ 17,438 |
| Commercial and industrial and other land sales | 2,305 | 9,058 |
| Other real estate | 257 | 144 |
| Total real estate revenues | 25,110 | 26,640 |
| Interest income | 9 | 31 |
| Other | -- | 39 |
| Total revenues | 25,119 | 26,710 |
| Expenses | ||
| Real estate expenses | ||
| Homebuilding | 22,765 | 19,881 |
| Commercial and industrial and other land sales | 865 | 5,967 |
| Other real estate | 707 | 2,054 |
| Total real estate expenses | 24,337 | 27,902 |
| Impairment charges | -- | 152 |
| General and administrative expenses | 3,705 | 3,306 |
| Interest expense | 1,773 | 2,237 |
| Total expenses | 29,815 | 33,597 |
| Loss from unconsolidated entities | (63) | (36) |
| Loss before income taxes | (4,759) | (6,923) |
| Income tax (expense) benefit | -- | -- |
| Net loss and comprehensive loss | (4,759) | (6,923) |
| Net loss attributable to non-controlling interests in consolidated entities | -- | (1,528) |
| Net loss and comprehensive loss attributable to AV Homes stockholders | $ (4,759) | $ (8,451) |
| Basic and Diluted Loss Per Share | $ (0.38) | $ (0.68) |
The following table provides a comparison of certain financial data related to our operations for the three months ended March 31, 2013 and 2012:
| Three Months | ||
| 2013 | 2012 | |
| Operating income (loss): | ||
| Active adult communities | ||
| Revenues (1) | $ 12,006 | $ 9,805 |
| Expenses (2) | 12,885 | 12,452 |
| Segment operating loss | (879) | (2,647) |
| Primary residential | ||
| Revenues (3) | 10,542 | 7,633 |
| Expenses | 9,880 | 7,429 |
| Segment operating income (loss) | 662 | 204 |
| Commercial and industrial and other land sales | ||
| Revenues | 2,305 | 9,058 |
| Expenses | 865 | 5,967 |
| Segment operating income | 1,440 | 3,091 |
| Other operations | ||
| Revenues | 257 | 144 |
| Expenses | 68 | 94 |
| Segment operating income | 189 | 50 |
| Operating income | 1,412 | 698 |
| Unallocated income (expenses): | ||
| Interest income | 9 | 31 |
| Equity loss from unconsolidated entities | (63) | (36) |
| Net (gain)/loss attributable to non-controlling interests | -- | (1,528) |
| General and administrative expenses | (3,705) | (3,306) |
| Interest expense | (1,773) | (2,237) |
| Other real estate expenses | (639) | (2,073) |
| Loss before income taxes | (4,759) | (8,451) |
| Income tax benefit | -- | -- |
| Net loss attributable to AV Homes | $ (4,759) | $ (8,451) |
(1) Includes homebuilding revenues of $10,222 and amenity revenues of $1,784 for the three months ended March 31, 2013.
(2) Includes impairment charges for inventory of approximately $0 and $152 for the three months ended March 31, 2013 and 2012, respectively.
(3) Includes homebuilding revenues of $9,933 and amenity revenues of $609 for the three months ended March 31, 2013.
Data from closings for the active adult and primary residential homebuilding segments for the three months ended March 31, 2013 and 2012 is summarized as follows:
| For the three months ended March 31, |
Number of Units |
Revenues |
Average Price Per Unit |
| 2013 | |||
| Active adult communities | 39 | $ 10,222 | $ 262 |
| Primary residential | 42 | 9,933 | $ 237 |
| Total | 81 | $ 20,155 | $ 249 |
| 2012 | |||
| Active adult communities | 32 | $ 7,984 | $ 250 |
| Primary residential | 31 | 6,698 | $ 216 |
| Total | 63 | $ 14,682 | $ 233 |
Data from contracts signed for the active adult and primary residential homebuilding segments for the three months ended March 31, 2013 and 2012 is summarized as follows:
| Gross Number | Contracts Signed, | Average | |||
| of Contracts | Net of | Dollar | Price Per | ||
| For the three months ended March 31, | Signed | Cancellations | Cancellations | Value | Unit |
| 2013 | |||||
| Active adult communities | 97 | (13) | 84 | $ 19,038 | $ 227 |
| Primary residential | 72 | (21) | 51 | 10,353 | $ 203 |
| Total | 169 | (34) | 135 | $ 29,391 | $ 218 |
| 2012 | |||||
| Active adult communities | 66 | (24) | 42 | $ 10,536 | $ 251 |
| Primary residential | 75 | (11) | 64 | 12,668 | $ 198 |
| Total | 141 | (35) | 106 | $ 23,204 | $ 219 |
Backlog for the active adult and primary residential homebuilding segments as of March 31, 2013 and 2012 is summarized as follows:
| Number of | Dollar | Average Price | |
| As of March 31, | Units | Volume | Per Unit |
| 2013 | |||
| Active adult communities | 108 | $ 25,440 | $ 236 |
| Primary residential | 131 | 27,713 | $ 212 |
| Total | 239 | $ 53,153 | $ 222 |
| 2012 | |||
| Active adult communities | 55 | $ 14,243 | $ 259 |
| Primary residential | 86 | 15,819 | $ 184 |
| Total | 141 | $ 30,062 | $ 213 |