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 third quarter ended September 30,
2012.
The Company reported a net loss of $11.6 million, or $0.92 per
diluted share, on revenues of $28.7 million for the three months
ended September 30, 2012, compared to a net loss of $121.6 million,
or $9.76 per diluted share, on revenues of $14.7 million for the
three months ended September 30, 2011. The 2012 loss included $3.8
million in impairments taken during the third quarter of 2012, and
the 2011 loss reflected $112.4 million in impairments taken during
the same period in 2011.
For the nine-month period ended September 30, 2012, the Company
reported a net loss of $31.4 million, or $2.50 per diluted share,
on revenues of $74.3 million, compared to a net loss of $148.2
million or $11.91 per diluted share, on revenues of $55.3 million
for the same period ended September 30, 2011. The 2012 loss
included $7.4 million in impairment expense and the 2011 loss
included $126.5 million in impairments.
For the third quarter ended September 30, 2012, the Company
closed on 82 homes, a 91% increase over the 43 homes closed during
the third quarter of 2011. For the nine-month period the Company
reported 204 closings, a 73% increase over the 118 closings
reported for the same period ended September 30, 2011. The dollar
volume of the closings reported in the third quarter of 2012
increased to $17.4 million, compared to a dollar volume of $10.3
million during the same period in 2011. During the third quarter of
2012, the overall average unit price per closing was $212,000,
compared to $239,000 in the third quarter of 2011. The
decrease was primarily attributable to a much higher number of
lower priced homes closing in the Company's Joseph Carl Homes
division which serves people of all ages.
The number of housing contracts signed, net of cancellations,
during the three months ended September 30, 2012 increased by 29%
to 99 units, compared to 77 units during the same period in
2011. The dollar value of the contracts signed during the
third quarter increased 45% to $24.6 million, compared to $17.0
million during the same period one year ago. For the
nine-month period the Company reported 306 contracts, net of
cancellations, with a dollar value of $72.4 million, compared to
172 contracts with a value of $39.4 million for the same period
ended September 30, 2011, reflecting increases of 78% in contracts
and 84% in dollar value. The average unit price of new
contracts during the third quarter of 2012 increased to $249,000
from $221,000 in the third quarter of 2011.
The backlog of homes under contract but not yet closed at
September 30, 2012 more than doubled to 200 units representing a
dollar volume of $48.5 million, compared to 97 units with a dollar
value of $23.7 million at September 30, 2011.
During the third quarter the Company reported $8.7 million in
revenue from the sale of commercial, industrial and other lands
which generated $448,000 in net income to the Company, compared to
$220,000 in land sales resulting in a $1.8 million loss during the
third quarter of 2011. Through the first nine months of 2012
the Company has reported $20.8 million in land sales resulting in
net income of $5.2 million.
Chief Executive Officer Allen J. Anderson said the Company
continues to make important progress in both its operational
efficiency and in the implementation of its strategic plan, which
is focused on providing housing solutions to the Baby Boom
population, an industry segment that is expected to see significant
growth during the next decade. "Operationally we just
completed the rollout of a new fully integrated CRM, MIS and
financial reporting system that has been in development for more
than a year. This business tool will enhance our productivity
Company-wide and bring important improvements to every aspect of
our business," Anderson said.
The Company also announced the promotion of three
executives. Tina Johnston, Sam Colgan, and Ken Plonski have
all been promoted to Senior Vice Presidents of AV Homes,
Inc. "Our management team has accomplished a great deal over
the past several months. The contributions of these
individuals have been key to that success," Anderson said.
During the quarter the Company continued to position itself for
the recovering housing market. This included preparations for the
launch later this year of its newest active adult community,
Vitalia at Tradition in Port St. Lucie, Florida and the
introduction of 12 new model homes at its Solivita active adult
community near Orlando. The new models were well received with
nearly 3,000 people visiting during the opening
weekend. "These new floor plans and the launch of Vitalia at
Traditions have been timed to take advantage of an improving market
and the primary selling season in Florida," Anderson said. In
addition, the Company closed on a 6.8-acre parcel of land in
Scottsdale, Arizona, where it plans a higher density urban project
targeted to the age 55+ demographic.
In the third quarter the Company also completed the negotiation
of a four party Development Agreement that should result in the
Poinciana Parkway project being funded, constructed, operated and
maintained by Osceola County, Polk County and the Osceola
Expressway Authority. Pending the successful completion of a
funding agreement, construction could begin in early to
mid-2013.
The Company will hold a conference call and webcast on Friday,
November 9, 2012 to discuss its third quarter results. The
conference call will begin at 10:00 a.m. EST. 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 November 9, 2012 at 5:00 p.m. and can be accessed by
dialing (855) 859-2056 or for international callers by dialing
(404) 537-3406; the conference ID is 68130978. The replay will be
available through November 16, 2012. 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 at its active adult communities of Solivita near Orlando,
Florida and CantaMia near Phoenix, Arizona. The Company also
builds conventional communities for people of all ages in the
Orlando and Phoenix areas 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, 2011 and in our other filings with the
Securities and Exchange Commission, which filings are available on
www.sec.gov. At least 80% of active adult homes are intended for
occupancy by at least one person 55 years or older. 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.
CONTACT: Ken Plonski
480-214-7408
k.plonski@avhomesinc.com
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