Third Quarter 2017 Highlights - as compared to the prior year third quarter (unless otherwise noted)

• Total revenue increased slightly to $205.7 million
• Homebuilding revenue was $201.7 million, comparable to prior year third quarter
• Homes delivered decreased 4.3% to 608 units
• Average selling price for homes delivered increased 4.4% to $332,000 per home

SCOTTSDALE, Ariz., Oct. 26, 2017 (GLOBE NEWSWIRE) --  AV Homes, Inc. (Nasdaq:AVHI), a developer and builder of residential communities in Florida, the Carolinas and Arizona, today announced results for its third quarter ended September 30, 2017.  Total revenue for the third quarter of 2017 increased slightly to $205.7 million, from $205.4 million in the third quarter of 2016.  Net loss and diluted loss per share was $1.5 million and $0.07 per share, respectively, which included a pre-tax charge of $6.9 million ($4.2 million after-tax, or $0.19 per share) related to redemption costs for the remainder of the Company’s 8.50% Senior Notes that were refinanced with new 6.625% Senior Notes.  Net income and diluted income per share for the third quarter 2016 was $11.9 million and $0.49 per share, respectively, and included only a nominal income tax provision due to the reversal of the valuation allowance of the deferred tax assets in 2016. 

Roger A. Cregg, President and Chief Executive Officer, commented, “We continue to remain on target to achieve our full year 2017 performance targets, as evidenced by the reaffirmation of our guidance again this quarter, despite the interruption by hurricane Irma in our Florida markets.”  Mr. Cregg continued, “We remain focused on sourcing new land opportunities for communities to provide future growth and performance in the operations.  Over the last three quarters, we approved, or have under contract, more than 3,000 lots, as we picked up the pace of activity in all of our current markets.  Overall, our outlook continues to remains positive, supported by a favorable macroeconomic and housing environment.”

Homebuilding revenue remained comparable to the prior year third quarter with the 4.4% increase in the average selling price offsetting a 4.3% decrease in units primarily due to lower community counts in Florida and Arizona.  During the third quarter of 2017, the Company delivered 608 homes, compared to 635 homes delivered during the third quarter of 2016, and the average unit price per closing improved to approximately $332,000 from approximately $318,000 in the third quarter of 2016 due to price increases and improvements in the mix of homes sold.

Homebuilding gross margin was 16.4% in the third quarter of 2017 compared to 18.8% in the third quarter of 2016 with comparable margins year over year in the Arizona market being more than offset by gross margin declines in the Florida and Carolina markets.  Homebuilding gross margin is inclusive of the impact associated with the expensing of previously capitalized interest of 2.6% and 2.7% in the 2017 and 2016 periods, respectively.
           
Total SG&A expense as a percent of homebuilding revenue was 13.4% in the third quarter of 2017 compared to 12.6% in the third quarter of 2016.  Homebuilding SG&A expense as a percentage of homebuilding revenue was 11.1% in the third quarter of 2017 compared to 10.8% in the third quarter of 2016.  Corporate general and administrative expenses as a percentage of homebuilding revenue were 2.3% in the third quarter of 2017 compared to 1.8% in the same period a year ago. 

The number of new housing contracts signed, net of cancellations, during the three months ended September 30, 2017 was 551 units, compared to 572 units during the same period in 2016.  The average sales price on contracts signed in the third quarter of 2017 increased 1.9% to approximately $330,000 from approximately $324,000 in the third quarter of 2016.  The aggregate dollar value of the contracts signed during the third quarter was $182.0 million, compared to $185.4 million during the same period one year ago.  The backlog value of homes under contract but not yet closed as of September 30, 2017 decreased 4.0% to $333.2 million on 1,013 units, compared to $347.1 million on 1,081 units as of September 30, 2016.

The Company will hold a conference call and webcast on Friday, October 27, 2017 to discuss its third quarter financial results.  The conference call will begin at 8:30 a.m. EDT.  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 October 27, 2017 beginning at 11:30 a.m. EDT and can be accessed by dialing (855) 859-2056 or for international callers by dialing (404) 537-3406; the conference ID is 98676473. The telephonic replay will be available until November 3, 2017. The webcast, which can be accessed by going to the Investor Relations section of AV Homes’ website at www.avhomesinc.com, is accompanied by an Investor Presentation.  A replay of the original webcast will be available shortly after the call.

AV Homes, Inc. is engaged in homebuilding and community development in Florida, the Carolinas and Arizona. Its principal operations are conducted in the greater Orlando, Jacksonville, Phoenix, Charlotte and Raleigh markets. The Company builds communities that serve both active adults (55 years and older) as well as people of all ages. AV Homes common shares trade on NASDAQ under the symbol AVHI. For more information, visit www.avhomesinc.com. 

This news release, the conference call, webcast and other related items contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward looking statements, which include references to our outlook for 2017, involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements 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, among others: the cyclical nature of the homebuilding industry and its dependence on broader economic conditions; availability and suitability of undeveloped land and improved lots; our ability to develop communities within expected timeframes; increases in interest rates and availability of mortgage financing; the prices and supply of building materials; the availability and skill of subcontractors; competition for home buyers, properties, financing, raw materials and skilled labor; our ability to access sufficient capital; our ability to generate sufficient cash to service our indebtedness; terms of our financing documents that may restrict our operations and corporate actions; fluctuations in interest rates; our current level of indebtedness and potential need for additional financing; our ability to purchase outstanding notes upon certain fundamental changes; our ability to obtain letters of credit and surety bonds; cancellations of home sale orders; the geographic concentration of our operations; inflation affecting homebuilding costs or deflation affecting declines in spending and borrowing levels; our ability to successfully integrate acquired businesses and recognize anticipated benefits; elimination or reduction of tax benefits associated with home ownership; warranty and construction defect claims; health and safety incidents in homebuilding activities; the seasonal nature of our business; impacts of weather conditions and natural disasters; resource shortages and rate fluctuations; value and costs related to our land and lot inventory; overall market supply and demand for new homes; our ability to recover our costs in the event of reduced home sales; conflicts of interest involving our largest stockholder; contractual restrictions under a stockholders agreement with our largest stockholder; dependence on our senior management; effect of our expansion efforts on our cash flows and profitability; effects of government regulation of development and homebuilding projects; development liabilities that may impose payment obligations on us; our ability to utilize our deferred income tax asset; impact of environmental changes and governmental actions in response to environmental changes; dependence on digital technologies and related cyber risks; future sales or dilution of our equity; impairment of intangible assets; and other factors described in our most recent Annual Report on Form 10-K for and our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release, the conference call, the Investor Presentation and the webcast. 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.

Investor Contact:       

Mike Burnett
EVP, Chief Financial Officer
480-214-7408
m.burnett@avhomesinc.com  

The following table provides a comparison of certain financial data related to our operations for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Data from closings for the Florida, Carolinas and Arizona segments for the three and nine months ended September 30, 2017 and 2016 is summarized as follows (dollars in thousands):

Data from contracts signed for the Florida, Carolinas and Arizona segments for the three and nine months ended September 30, 2017 and 2016 is summarized as follows (dollars in thousands):

Backlog for the Florida, Carolinas and Arizona segments as of September 30, 2017 and 2016 is summarized as follows (dollars in thousands): 

AV HOMES, INC. AND SUBSIDIARIES
Unaudited Supplemental Information
(in thousands)

The following table represents interest incurred, interest capitalized, and interest expense for the three and nine months ended September 30, 2017 and 2016:

The following table represents depreciation and amortization expense and the amortization of previously capitalized interest for the three and nine months ended September 30, 2017 and 2016:

⁽¹⁾ Depreciation and amortization does not include the amortization of debt issuance costs, which is recorded in interest expense.

The following table represents a reconciliation of the net income (loss) and weighted average shares outstanding for the calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2017 and 2016:

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.