Brookfield Homes Corporation (NYSE: BHS)
Investors, analysts and other interested parties can access
Brookfield Homes Corporation's Supplemental Information Package on
the company's website under the Investor Relations/Financial
Reports section at www.brookfieldhomes.com. Brookfield Homes
Corporation's second quarter investor conference call can be
accessed by teleconference on Friday, July 30, 2010 at 12:00 noon
(Eastern Time) at 1-800-319-4610, toll free in North America or
1-604-638-5340. The archived teleconference may be accessed by
dialing 1-800-319-6413 (Pincode: 2818), toll free in North America
through August 30, 2010. Alternatively, the conference call can be
accessed by Webcast on the company's website at
www.brookfieldhomes.com.
Brookfield Homes Corporation ("Brookfield Homes") (NYSE: BHS)
today announced net new orders and financial results for the
quarter ended June 30, 2010:
Three Months Ended Six Months Ended
June 30 June 30
--------------------------------------------
Unit Activity 2010 2009 2010 2009
----------------------------------------------------------------------------
Home closings 210 169 291 243
Net new home orders 127 266 285 419
Active selling communities (end
of period) 22 30 22 30
Backlog of homes (units at end
of period) 181 310 181 310
Average home selling price $ 449,000 $ 486,000 $ 472,000 $ 485,000
Lot sales to homebuilders 17 22 88 179
----------------------------------------------------------------------------
(i) Unit information includes unconsolidated entities
-- Home closings increased by 24%, during the three months ended June 30,
2010 in comparison to the same period in 2009. The overall average
selling price decreased by 8% due to product mix, particularly the
significant decrease in the number of higher priced homes closed in
Northern California. However, the average selling price of homes
delivered increased in each region.
-- Net new orders for the six months ended June 30, 2010 decreased by 134
units, down 32% when compared to the six months ended June 30, 2009.
This percentage decline is in line with the 27% decline in active
selling communities as at June 30, 2010 compared to June 30, 2009.
Three Months Ended Six Months Ended
Results of Operations June 30 June 30
------------------------------------
(Millions, except per share
amounts) 2010 2009 2010 2009
-----------------------------------------------------------------------
Housing revenue $ 94 $ 82 $ 136 $ 117
Total revenue 95 95 141 132
Impairments and write-offs - 4 - 20
Gross margin 17 5 24 5
Net income/(loss) attributable to
Brookfield Homes Corporation 3 - - (10)
Loss per share - diluted(i) $(0.08) $(0.12) $(0.35) $(0.51)
-----------------------------------------------------------------------
(i) Diluted loss per share is after preferred dividends
-- Housing revenue for the three months ended June 30, 2010 totaled $94
million, an increase of 15% when compared to the three months ended June
30, 2009. For the six months ended June 30, 2010, housing revenue
increased 16% when compared to the six months ended June 30, 2009.
-- The company did not record any impairments during the three months ended
June 30, 2010, compared to $4 million for the same period in 2009.
-- Net income attributable to Brookfield Homes for the three months ended
June 30, 2010 was $3 million or a loss of $0.08 per share, compared to
nil or a loss of $0.12 per share for the three months ended June 30,
2009.
Operating Highlights and Recent Developments
-- For the three months ended June 30, 2010, the company continued with its
goal to entitle a total of 1,500 lots in 2009 and 2010 having entitled
1,061 lots in 2009 and 376 lots during the first half of 2010.
-- Brookfield Homes currently sells from 22 active communities compared to
30 at June 30, 2009.
-- At June 30, 2010, the company owned or controlled 26,169 lots, an
increase of 1,924 lots from December 31, 2009.
-- A summary of lots owned or controlled under option, by region, follows:
Housing &Land Entities Total Total
-------------------------------- Lots 6/ Lots 12/
(Lots) Owned(i) Options Owned Options 30/2010 31/2009
----------------------------------------------------------------------------
Northern California 3,233 5,044 - - 8,277 6,951
Southland/Los Angeles 962 320 404 1,987 3,673 3,262
San Diego/Riverside 8,696 200 52 - 8,948 8,853
Washington D.C. Area 2,752 1,066 1,199 - 5,017 4,916
Corporate and Other 196 - 58 - 254 263
----------------------------------------------------------------------------
Total June 30, 2010 15,839 6,630 1,713 1,987 26,169
----------------------------------------------------------------------------
Entitled Lots June 30,
2010 11,289 1,266 1,659 623 14,837
Unentitled Lots June 30,
2010 4,550 5,364 54 1,364 11,332
----------------------------------------------------------------------------
15,839 6,630 1,713 1,987 26,169
----------------------------------------------------------------------------
Total December 31, 2009 14,233 6,279 1,746 1,987 24,245
----------------------------------------------------------------------------
(i) Includes consolidated options
(ii) For financial and other related lot information, please refer to the
Supplemental Information for the Six Months Ended June 30, 2010, posted on
www.brookfieldhomes.com/financial_reports_presentations.html.
Outlook
Brookfield Homes was encouraged by the improvement in first
quarter sales and closings. However, since then, selling
communities have seen a drop in the number of visits from potential
homebuyers, which we believe is a result of expired government
stimulus programs, together with continued uncertain economic
conditions, which have negatively impacted homebuyer
confidence.
On the other hand, the company's strong financial position and
the decreasing supply of finished lots in our markets, places
Brookfield Homes in a solid position as the markets improve.
The company's goals for 2010 remain:
-- Continue to monetize the company's inventory, targeting $90 million of
net cash from operating activities. Net cash flow from operating
activities for the six months ended June 30, 2010 was $42 million.
-- Increase lots controlled in certain strategic market areas. During the
six months ended June 30, 2010, the company increased the lots
controlled by 1,924 lots, principally in Northern California and the
Southland/Los Angeles area.
-- Continue to improve overall gross margins as capital is invested in new
homebuilding communities. Housing gross margins for the six months ended
June 30, 2010 were 17% compared to 9% for the six months ended June 30,
2009.
-- Continue to meet the challenges presented in the market and position
Brookfield Homes to return to profitability. For the three months ended
June 20, 2010, net income was $3 million.
Brookfield Homes Corporation
Brookfield Homes Corporation is a land developer and
homebuilder. We entitle and develop land for our own communities
and sell lots to third parties. We also design, construct and
market single-family and multi-family homes primarily to move-up
homebuyers. Our portfolio includes over 26,000 lots owned and
controlled in the Northern California; Southland / Los Angeles; San
Diego / Riverside; and Washington D.C. Area markets.
Note: Certain statements in this press release that are not
historical facts, including information concerning possible or
assumed future results of operations of the company, the company's
2010 outlook, the company's 2010 goals, value creation, targeted
2010 operating cash flow, the entitlement and monetization of lots
(and the timing thereof), the company's future outlook and growth
plans including acquisitions and lots controlled, and those
statements preceded by, followed by, or that include the words
"believe", "planned", "anticipate", "should", "goals", "expected",
"potential," "estimate," "targeted," "scheduled" or similar
expressions, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Undue reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties and
other factors, which may cause the actual results to differ
materially from the anticipated future results expressed or implied
by such forward-looking statements. Factors that could cause actual
results to differ materially from those set forward in the
forward-looking statements include, but are not limited to: changes
in general economic, real estate and other conditions; mortgage
rate changes; availability of suitable undeveloped land at
acceptable prices; adverse legislation or regulation; ability to
obtain necessary permits and approvals for the development of our
land; availability of labor or materials or increases in their
costs; ability to develop and market our master-planned communities
successfully; confidence levels of consumers; ability to raise
capital on favorable terms; adverse weather conditions and natural
disasters; relations with the residents of our communities; risks
associated with increased insurance costs or unavailability of
adequate coverage and ability to obtain surety bonds; competitive
conditions in the homebuilding industry, including product and
pricing pressures; and additional risks and uncertainties referred
to in our Form 10-K and other SEC filings, many of which are beyond
our control. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Brookfield Homes Corporation
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30 June 30
--------------------------------------------
(thousands, except per share
amounts) (unaudited) 2010 2009 2010 2009
----------------------------------------------------------------------------
Revenue
Housing $ 94,231 $ 82,051 $ 135,996 $ 117,412
Land 1,680 13,050 5,346 14,868
----------------------------------------------------------------------------
Total revenue 95,911 95,101 141,342 132,280
Direct cost of sales
Housing (77,204) (75,250) (113,023) (106,890)
Land (1,267) (10,570) (4,154) (12,222)
Impairment of housing and land
inventory and write-off of
option deposits - (4,258) - (8,158)
----------------------------------------------------------------------------
17,440 5,023 24,165 5,010
Selling, general and
administrative expense (13,632) (13,545) (26,133) (25,274)
(Loss) / equity in earnings from
unconsolidated entities (743) (231) (57) 2,128
Impairment of investments in
unconsolidated entities - - - (11,618)
Other income 1,787 8,505 1,568 10,950
----------------------------------------------------------------------------
Income / (loss) before income
taxes 4,852 (248) (457) (18,804)
Income tax (expense) / recovery (1,795) (115) (77) 6,204
----------------------------------------------------------------------------
Net income / (loss) $ 3,057 $ (363) $ (534) $ (12,600)
Less net (income) / loss
attributable to noncontrolling
interest & other interests in
consolidated subsidiaries (130) 550 658 2,478
----------------------------------------------------------------------------
Net income / (loss) attributable
to Brookfield Homes Corporation $ 2,927 $ 187 $ 124 $ (10,122)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Loss per share
Basic and diluted $ (0.08) $ (0.12) $ (0.35) $ (0.51)
Weighted average common shares
outstanding
Basic and diluted 28,621 26,769 28,513 26,769
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brookfield Homes Corporation
Condensed Consolidated Balance Sheets
As at
--------------------------
June 30, December 31,
(thousands, except per share amounts) (unaudited) 2010 2009
----------------------------------------------------------------------------
Assets
Housing and land inventory $ 845,087 $ 835,263
Investments in unconsolidated entities 101,758 92,477
Receivables and other assets 18,578 61,744
Restricted cash 7,485 7,485
Deferred income taxes 37,232 40,112
----------------------------------------------------------------------------
$ 1,010,140 $ 1,037,081
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Project specific and other financings $ 353,282 $ 381,567
Accounts payable and other liabilities 128,165 122,190
--------------------------
Total liabilities 481,447 503,757
Other interests in consolidated subsidiaries 42,638 47,011
Total equity 486,055 486,313
----------------------------------------------------------------------------
$ 1,010,140 $ 1,037,081
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Debt to equity capitalization 40% 42%
Book value per share, as converted and diluted $ 7.44 $ 7.58
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brookfield Homes Corporation
Consolidated Statements of Cash Flow
Three Months Ended Six Months Ended
June 30 June 30
--------------------------------------------
(thousands) (unaudited) 2010 2009 2010 2009
----------------------------------------------------------------------------
Cash flows from / (used in)
operating activities
Net income / (loss) $ 3,057 $ (363) $ (534) $ (12,600)
Adjustments to reconcile net
income / (loss) to net cash
from operating activities:
Distributed / (undistributed)
income fromunconsolidated
entities 745 129 52 (2,221)
Deferred income taxes 1,795 (77) 2,800 (6,396)
Impairment of housing and land
inventory and write-off of
option deposits - 4,258 - 8,158
Impairment of investments in
unconsolidated entities - - - 11,618
Stock option compensation
costs 315 201 428 392
Other charges in operating
assets and liabilities:
Decrease in receivables and
other assets 8,031 505 43,166 63,298
(Increase) / decrease in
housing and land inventory (3,225) 11,431 (11,763) 32
Increase / (decrease) in
accounts payable and other
liabilities 10,408 (99) 8,301 (21,620)
--------------------------------------------
Net cash provided by operating
activities 21,126 15,985 42,530 40,661
--------------------------------------------
Cash flows from / (used in)
investing activities
Net investments in
unconsolidated entities (8,441) (236) (12,574) (1,155)
--------------------------------------------
Net cash used in investing
activities (8,441) (236) (12,574) (1,155)
--------------------------------------------
Cash flows (used in) / from
financing activities
Net repayments under project
specific and other financings (12,164) (261,876) (28,285) (285,908)
Net contributions from
noncontrolling interest and
other interests in consolidated
subsidiaries (563) 403 (1,764) 678
Preferred stock issuance, net of
issuance costs - 249,688 - 249,688
Preferred stock dividends paid
in cash - (3,500) - (3,500)
Exercise of stock options 42 - 93 -
--------------------------------------------
Net cash used in financing
activities (12,685) (15,285) (29,956) (39,042)
--------------------------------------------
Increase in cash and cash
equivalents - 464 - 464
Cash and cash equivalents at
beginning of period - - - -
--------------------------------------------
Cash and cash equivalents at end
of period $ - $ 464 $ - $ 464
----------------------------------------------------------------------------
Supplemental cash flow
information
Interest paid $ 7,438 $ 8,995 $ 15,740 $ 18,984
Income taxes recovered 3,320 1,883 42,766 60,700
----------------------------------------------------------------------------
Contacts: Brookfield Homes Corporation Linda Northwood Director,
Investor Relations 858-481-2567 lnorthwood@brookfieldhomes.com
Brookfield Homes (NYSE:BHS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Brookfield Homes (NYSE:BHS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
