CORAL GABLES, Fla.,
May 10, 2011 /PRNewswire/ -- Avatar
Holdings Inc. (NASDAQ-AVTR) today reported a net loss of
$10,097,000 ($0.81 per share, diluted) on revenues of
$12,212,000 for the quarter ended
March 31, 2011, compared to a net
loss of $10,136,000 ($0.90 per share, diluted) on revenues of
$9,623,000 for the quarter ended
March 31, 2010.
During the quarter, we closed on 33 homes, an 18% increase from
the 28 units closed during the first quarter of 2010. Dollar
volume increased by 39% to $7,596,000, compared to $5,451,000 for the first quarter of 2010.
The increase in expenses for the first quarter of 2011, compared
to 2010, is attributable to costs associated with higher volume of
house closings, advertising and marketing expenses, initial
expenditures incurred with the launch of our Younger Next Year
lifestyle programs at our active adult communities of Solivita in
Central Florida and CantaMia in
Arizona, overhead attributable to
the recently acquired Arizona
operations, and interest expense.
The dollar volume of housing contracts signed, net of
cancellations, during the first quarter of 2011 were comparable to
the first quarter of 2010, or $12,121,000 compared to $12,154,000. The number of contracts
signed, net of cancellations, decreased by 15%, or 51 compared to
60 for the first quarter of 2010 and sales backlog improved 7% to
61 units in 2011 from 57 units in the first quarter of 2010.
"Although we are not pleased with our first quarter results we
had many accomplishments during the quarter, including the
introduction of the Younger Next Year brand at Solivita and
CantaMia, the grand opening of the Village Center at CantaMia; and
the completion of the sale of $100
million in convertible notes. Additionally, as part of our
strategy to monetize non-core assets, in April 2011 we closed the $7.9 million sale of Turtle Creek in Central Florida at a profit which will be
recognized in the second quarter," stated Jon M. Donnell President and Chief Executive
Officer.
On April 1, 2011 holders of
$41,637,000 of Avatar's 4.50%
Convertible Senior Notes exercised their right to require the
company to repurchase the notes and Avatar effected payment
thereof.
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. Factors
that might cause actual results to differ include, but are not
limited to, 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 THREE MONTHS ENDED MARCH 31, 2011 AND
2010
(Unaudited –
Dollars in thousands except per share data)
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2011
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2010
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Revenues
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$ 12,212
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$ 9,623
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Income (loss) before income
taxes
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($ 10,224)
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($ 10,269)
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Income tax benefit
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$
0
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$
0
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Net loss attributable to
non-controlling Interest
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($
127)
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($
133)
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Net loss attributable to
Avatar
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($ 10,097)
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($ 10,136)
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Basic and diluted EPS
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($
0.81)
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($
0.90)
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Selected Balance Sheet
Data
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March 31,
2011
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December 31,
2010
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Cash and cash
equivalents
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$ 184,599
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$ 115,502
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Total assets
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$ 619,015
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$ 545,451
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Notes, mortgage notes and other
debt
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$ 159,414
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$ 77,057
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Avatar's Stockholders'
equity
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$ 420,607
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$ 430,045
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Avatar's Stockholders' equity
per share
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$
32.60
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$
33.34
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SOURCE Avatar Holdings Inc.