CORAL GABLES, Fla.,
Aug. 9, 2011 /PRNewswire/ -- Avatar
Holdings Inc. (NASDAQ: AVTR) today reported a net loss of
$16,526,000 ($1.33 per share, diluted) on revenues of
$28,366,000 for the three months
ended June 30, 2011, compared to a
net loss of $5,743,000 ($0.51 per share, diluted) on revenues of
$17,302,000 for the three months
ended June 30, 2010.
For the six months ended June 30,
2011, Avatar reported a net loss of $26,623,000 ($2.14
per share, diluted) on revenues of $40,578,000, compared to a net loss of
$15,879,000 ($1.41 per share, diluted) on revenues of
$26,925,000 for the six months ended
June 30, 2010.
During the three months ended June 30,
2011, we closed on 42 homes, a 37% decrease from the 67
units closed during the three months ended June 30, 2010. Dollar volume decreased by
27% to $9,293,000, compared to
$12,754,000 for three months ended
June 30, 2010.
During the six months ended June 30,
2011, we closed on 75 homes, a 21% decrease from the 95
units closed during the six months ended June 30, 2010. Dollar volume decreased by
7% to $16,889,000, compared to
$18,205,000 for six months ended
June 30, 2010.
The number of housing contracts signed, net of cancellations,
during the three months ended June 30,
2011 increased by 16% to 44, compared to 38 for the three
months ended June 30, 2010. The
dollar volume of contracts signed increased by 19% compared to the
three months ended June 30, 2010, to
$10,268,000 compared to $8,631,000.
The number of housing contracts signed, net of cancellations,
for the six months ended June 30,
2010 decreased by 3% to 95, compared to 98 for the six
months ended June 30, 2010. The
dollar volume of contracts signed increased by 8% compared to the
six months ended June 30, 2010, to
$22,389,000 compared to $20,785,000.
Sales backlog as of June 30, 2011
improved to 63 units compared to 28 units as of June 30, 2010.
During the six months ended June 30,
2011, we closed on the sale of commercial, industrial and
other land sales generating pre-tax profits of approximately
$6.8 million. Also during the six
months ended June 30, 2011, we
recorded impairment charges of approximately $14 million relating to homes completed or under
construction and land held for future development or sale.
We continue our ongoing efforts to improve our operating
efficiencies by identifying areas of our business where we can
reduce our expenses. As part of this process, we will examine our
assets to determine which assets fit within our primary business
strategy. As a result of staff reductions, we incurred severance
expense of approximately $1.7 million
for the six months ended June 30,
2011.
On June 15, 2011, we hired
Michael Jesberger as Executive Vice
President of Real Estate for Avatar Properties Inc. Mr. Jesberger
has a broad background in residential development and home building
with a particular expertise in land acquisition and development of
active adult master planned communities. He will take primary
responsibility for oversight of all our real property holdings to
help maximize their return potential.
Avatar Holdings Inc. is engaged in real estate operations in
Florida and Arizona. Avatar's principal operations are
conducted at Poinciana, Solivita and Bellalago in central
Florida near Orlando; at Seasons at Tradition in
Port St. Lucie, Florida; and at
the recently-acquired active adult community of CantaMia in
Goodyear, Arizona. Avatar's common
shares trade on NASDAQ under the symbol AVTR.
Certain statements discussed herein or made by the Company
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the
actual results, performance or achievements of results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such
risks, uncertainties and other important factors include the
stability of certain financial markets; disruption of the credit
markets and reduced availability and more stringent financing
requirements for commercial and residential mortgages of all types;
the number of investor and speculator resale homes for sale and
homes in foreclosure in our communities and in the geographic areas
in which we develop and sell homes; the increased level of
unemployment; the decline in net worth and/or of income of
potential buyers; the decline in consumer confidence; the failure
to successfully implement our business strategy (including our
intention to focus primarily on the development of active adult
communities in the future); shifts in demographic trends affecting
demand for active adult and primary housing; the level of
immigration and migration into the areas in which we conduct real
estate activities; our access to financing; construction defect and
home warranty claims; changes in, or the failure or inability to
comply with, government regulations; the failure to successfully
integrate acquisitions into our business, including our recent JEN
transaction; and other factors as are described in the Company's
filings with the Securities and Exchange Commission, including
under the caption "Risk Factors" included in its Annual Report on
Form 10-K for the year ended December 31,
2010. At least 80% of active adult homes are intended for
occupancy by at least one person 55 years or older. Readers
are cautioned not to place undue reliance on any forward-looking
statements contained herein or therein, which reflect management's
opinions only as of the date thereof.
SELECTED
FINANCIAL DATA FOR THE SIX AND THREE MONTHS ENDED
JUNE 30,
2011 AND 2010
(Unaudited –
Dollars in thousands except per share data)
|
|
|
Six
Months
|
|
Three
Months
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 40,578
|
|
$26,925
|
|
$28,366
|
|
$ 17,302
|
|
|
|
|
|
|
|
|
|
|
Income loss before income
taxes
|
($ 26,878)
|
|
($16,151)
|
|
($16,654)
|
|
($5,882)
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
$
0
|
|
$
0
|
|
$
0
|
|
$0
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
non-controlling Interests
|
($
255)
|
|
($ 272)
|
|
($ 128)
|
|
($ 139)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
Avatar
|
($ 26,623)
|
|
($15,879)
|
|
($16,526)
|
|
($5,743)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted EPS
|
($
2.14)
|
|
($ 1.41)
|
|
($ 1.33)
|
|
($0.51)
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet
Data
|
|
|
June 30,
2011
|
|
December 31,
2010
|
|
Cash and cash
equivalents
|
$ 146,036
|
|
$ 115,502
|
|
|
|
|
|
|
Total assets
|
$ 559,876
|
|
$ 545,451
|
|
|
|
|
|
|
Notes, mortgage notes and other
debt
|
$ 116,158
|
|
$ 77,057
|
|
|
|
|
|
|
Avatar's Stockholders'
equity
|
$ 404,025
|
|
$ 430,045
|
|
|
|
|
|
|
Avatar's Stockholders' equity
per share
|
$
31.81
|
|
$
33.34
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Avatar Holdings Inc.