This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AV Homes, Inc. Announces Fourth Quarter And 2012 Year-End Results

Stocks in this article: AVHI

The AV Homes, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15975

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. 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, 2012 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.

AV HOMES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except per share amounts)
Unaudited
 
  December 31 2012 December 31 2011
Assets    
Cash and cash equivalents $79,815 $124,316
Restricted cash 4,682 7,872
Land and other inventories 171,044 180,067
Receivables, net 6,730 7,729
Income tax receivable 1,293 1,293
Property and equipment, net 36,661 37,976
Poinciana Parkway -- 8,437
Investments in and notes receivable from unconsolidated entities 1,220 845
Prepaid expenses and other assets 10,777 10,443
Assets held for sale 25,649 30,078
Total Assets $337,871 $409,056
     
Liabilities and Equity    
     
Liabilities    
Accounts payable $4,656 $3,357
Accrued and other liabilities 12,978 9,996
Customer deposits and deferred revenues 1,985 1,611
Earn-out liability -- --
Estimated development liability for sold land 32,974 34,044
Notes Payable 105,402 105,402
Total Liabilities 157,995 154,410
     
Equity    
Common Stock, par value $1 per share    
Authorized: 50,000,000 shares    
Issued: 12,938,157 shares at December 31, 2012    
        14,194,776 shares at December 31, 2011 12,938 14,195
Additional paid-in capital 262,363 282,953
Retained earnings (106,110) 2,973
  169,191 300,121
     
Treasury stock: at cost, 110,874 shares at December 31, 2012 and 1,252,274 at December 31, 2011 (3,019) (45,924)
Total AV Homes stockholders' equity 166,172 254,197
Non-controlling interest 13,704 449
Total Equity 179,876 254,646
     
Total Liabilities and Equity $337,871 $409,056
 
 
AV HOMES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per-share amounts)
Unaudited
 
  For the year ended December 31
  2012 2011 2010
Revenues      
Real estate revenues $106,161 87,583 $57,259
Interest income 127 309 580
Other 1,199 1,090 1,299
Total revenues 107,487 88,982 59,138
       
Expenses      
Real estate expenses 111,121 101,500 68,220
Impairment charges 59,043 129,947 660
General and administrative expenses 16,148 17,502 20,508
Change in fair value of contingent consideration -- (4,388) --
Loss on extinguishment of debt 1,144 211 --
Interest expense 7,973 9,516 5,531
Total expenses 195,429 254,288 94,919
       
Income (Loss) from unconsolidated entities, net 259 (398) (276)
       
Loss before income taxes (87,683) (165,704) (36,057)
Income tax (expense) benefit -- (473) 375
       
Net loss and comprehensive loss (87,683) (166,177) (35,682)
       
Net (income) loss and comprehensive (income) loss attributable to non-controlling interests in consolidated entities (2,552) 296 574
       
Net loss and comprehensive loss attributable to AV Homes stockholders $(90,235) (165,881) $(35,108)
       
Basic and Diluted Loss Per Share $(7.19) (13.33) $(3.07)
 
 
AV HOMES, INC. AND SUBSIDIARIES
(in thousands, except per share amounts)
 
The following table provides a comparison of certain financial data related to our operations:
 
  For the year ended December 31
  2012 2011 2010
Operating income (loss):      
Active adult communities      
Revenues (1) $43,032 $39,934 $36,949
Expenses (2) 51,951 52,122 41,992
Net operating loss (8,919) (12,188) (5,043)
       
Primary residential      
Revenues (3) 35,936 15,272 14,209
Expenses (4) 35,945 22,799 20,493
Net operating loss (9) (7,527) (6,284)
       
Commercial and industrial and other land sales      
Revenues 26,595 31,731 4,712
Expenses 18,581 28,099 995
Net operating income (loss) 8,014 3,632 3,717
       
Other operations      
Revenues 598 932 1,485
Expenses (33) 773 1,098
Net operating income 631 159 387
       
Operating loss (283) (15,924) (7,223)
       
Unallocated income (expenses):      
Interest income 127 309 580
Gain (loss) on repurchase of 4.50% Notes (1,144) (211) --
Equity loss from unconsolidated entities 259 (398) (276)
General and administrative expenses (16,148) (17,502) (20,508)
Change in fair value of contingent consideration -- 4,388 --
Interest expense (7,973) (9,516) (5,531)
Other real estate expenses, net (5,113) (1,654) (3,099)
Impairment of the Poinciana Parkway (7,659) -- --
Impairment of goodwill -- (17,215) --
Impairment of land developed or held for future development (49,749) (107,981) --
Income (loss) from operations (87,683) (165,704) (36,057)
Income tax benefit (expense) -- (473) 375
Net loss attributable to non-controlling interests (2,552) 296 574
Net loss attributable to AV Homes $(90,235) $(165,881) $(35,108)
 
(1) Includes homebuilding revenues of $36,012, amenity revenues of $7,014, and other revenues of $6 
(2) Includes impairment charges for inventory of approximately $1,620, $1,060 and $408 for 2012, 2011 and 2010, respectively.
(3) Includes homebuilding revenues of $33,460, amenity revenue of $2,447, and other revenues of $29
(4) Includes impairment charges of approximately $15, $467 and $252 for 2012, 2011 and 2010, respectively. 

Data from closings for the active adult and primary residential homebuilding segments for the years ended December 31, 2012, 2011 and 2010 is summarized as follows:

Years ended December 31, Number of Units Revenues Average Price Per Unit
       
2012      
Active adult communities 148 $36,012 $243
Primary residential 158 33,460 $212
Total 306 $69,472 $227
       
2011      
Active adult communities 121 $28,537 $236
Primary residential 53 12,808 $242
Total 174 $41,345 $238
       
2010      
Active adult communities 131 $25,527 $195
Primary residential 53 11,582 $219
Total 184 $37,109 $202

Data from contracts signed for the active adult and primary residential homebuilding segments for the years ended December 31, 2012, 2011 and 2010 is summarized as follows:

Years ended December 31, Gross Number of Contracts Signed Cancellations Contracts Signed, Net of Cancellations Dollar Value Average Price Per Unit
           
2012          
Active adult communities 221 (55) 166 $40,522 $244
Primary residential 275 (48) 227 50,481 $222
Total 496 (103) 393 $91,003 $232
           
2011          
Active adult communities 178 (40) 138 $32,935 $239
Primary residential 109 (18) 91 18,541 $204
Total 287 (58) 229 $51,476 $225
           
2010          
Active adult communities 148 (24) 124 $24,427 $197
Primary residential 52 (8) 44 10,616 $241
Total 200 (32) 168 $35,043 $209

Backlog, for the active adult and primary residential homebuilding segments as of December 31, 2012, 2011 and 2010 is summarized as follows:

As of December 31, Number of Units Dollar Volume Average Price Per Unit
       
2012      
Active adult communities 63 $16,158 $256
Primary residential 122 26,906 $221
Total 185 $43,064 $233
       
2011      
Active adult communities 45 $11,691 $260
Primary residential 53 9,849 $186
Total 98 $21,540 $220
       
2010      
Active adult communities 28 $7,294 $261
Primary residential 15 4,115 $274
Total 43 $11,409 $265
 
 
AV HOMES, INC. AND SUBSIDIARIES
Summarized quarterly financial data
(in thousands, except per share amounts)
Unaudited
 
  2012 Quarter
  First Second Third Fourth
Net revenues $26,710 $18,966 $28,652 $33,159
Expenses 33,597 30,354 40,164 91,314
Equity earnings (losses) from unconsolidated entities (36) (43) (38) 376
         
Loss before income taxes (6,923) (11,431) (11,550) (57,779)
Less: Net loss attributable to non-controlling interests 1,528 (86) 33 1,077
         
Net loss attributable to AV Homes $(8,451) $(11,345) $(11,583) $(58,856)
Loss per share:        
Basic and Diluted $(0.68) $(0.91) $(0.92) $(4.67)
   
  2011 Quarter
  First Second Third Fourth
Net revenues $12,212 $28,366 $14,703 $33,701
Expenses 22,308 45,163 135,705 51,112
Equity earnings (losses) from unconsolidated entities (128) 143 (341) (72)
         
Loss before income taxes (10,224) (16,654) (121,343) (17,483)
Less: Net loss attributable to non-controlling interests 127 128 132 (91)
Income tax expense -- -- (350) (123)
         
Net loss attributable to AV Homes $(10,097) $(16,526) $(121,561) $(17,697)
Loss per share:        
Basic and Diluted $(0.81) $(1.33) $(9.76) $(1.42)
 
1. Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with the per share amounts for the year.
2. During the first quarter of 2012, our impairment evaluation resulted in total impairment charges of $3,428 which included $581 in impairment charges for homes completed or under construction and $2,847 in impairment charges for land developed and/or held for future development. 
3. During the second quarter of 2012, our impairment evaluation resulted in total impairment charges of $152 which related to impairment charges for homes completed or under construction.
4. During the third quarter of 2012, our impairment evaluation resulted in total impairment charges of $3,784, which included $807 in impairment charges for homes completed or under construction and $2,977 in impairment charges for land developed and/or held for future development.
5. During the fourth quarter of 2012, our impairment evaluation resulted in total impairment charges of $51,679, which included $95 in impairment charges for homes completed or under construction, $43,925 in impairment charges for land developed and/or held for future development, and $7,659 in impairment charges related to the Poinciana Parkway. 
CONTACT: Ken Plonski, 480-214-7408
         k.plonski@avhomesinc.com

AV Homes, Inc. Logo

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs