AV Homes Sees Q2 Revenues of $19M vs $28.4M Year Ago

AV Homes, Inc.

today announced preliminary results for its second quarter ended June 30, 2012. The Company reports strong traffic and sales in its active adult and family communities for the second quarter of 2012. During the three months ended June 30, 2012, the number of housing contracts signed, net of cancellations, was 101 units, representing a 129.5% increase from the 44 units signed during the same period in 2011. The dollar value of the contracts signed during the second quarter of 2012 was approximately $24.6 million, compared to $10.3 million during the same period one year ago. During the second quarter of 2012, the company closed on 59 homes compared to 42 homes during the same period one year ago. The revenues associated with these closings during the second quarter of 2012 were approximately $13.4 million, compared to revenues of $9.3 million during the same period in 2011. The backlog of homes under contract but not yet closed at June 30, 2012 was approximately 183 units representing a dollar volume of approximately $41.3 million, compared to 63 units with a dollar volume of $16.9 million at June 30, 2011. The June 30, 2012 backlog is a 190.5% increase in units over the prior year period and a 144.4% increase in dollar volume over the prior year period. The Company anticipates that it will report a pre-tax net loss of between $11.0 million and $11.5 million, on revenues of approximately $19.0 million for the three months ended June 30, 2012, compared to a net loss of $16.5 million on revenues of $28.4 million for the three months ended June 30, 2011. Included in the estimated net loss for the second quarter of 2012 is approximately $3 million of impairment charges related to the projected sale of a non-core asset. This asset is being sold at a below market price to Osceola County in exchange for valuable rights as part of an agreement to accelerate the construction of the Poinciana Parkway. Additional factors to the results for the second quarter of 2012 include a delay in closings from the Company's homebuilding operations in Arizona and Florida, the majority of which are expected to close in the third and fourth quarter of this calendar year. Included in the net loss for the three months ended June 30, 2011 was $6.8 million of profit on $15.1 million of revenues from commercial and industrial and other land sales.