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AV Homes, Inc. Announces First Quarter Results

Stocks in this article: 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, 2012 and in our other filings with the Securities and Exchange Commission, which filings are available on  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.

Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
  March 31, December 31,
  2013 2012
Assets (unaudited)  
Cash and cash equivalents  $ 71,087  $ 79,815
Restricted cash 4,727 4,682
Land and other inventories 180,826 171,044
Receivables, net 6,362 6,730
Income tax receivable 1,293 1,293
Property and equipment, net 36,395 36,661
Investments in and notes receivable from unconsolidated entities 1,240 1,220
Prepaid expenses and other assets 10,156 10,777
Assets held for sale 20,191 25,649
Total Assets  $ 332,277  $ 337,871
Liabilities and Equity    
Accounts payable  $ 4,719  $ 4,656
Accrued and other liabilities 11,576 12,978
Customer deposits and deferred revenues 2,156 1,985
Estimated development liability for sold land 32,955 32,974
Notes Payable 105,402 105,402
Total Liabilities 156,808 157,995
Common Stock, par value $1 per share    
Authorized: 50,000,000 shares    
Issued:  12,898,251 shares at March 31, 2013    
12,938,157 shares at December 31, 2012 12,898 12,938
Additional paid-in capital 262,651 262,363
Retained (deficit) earnings (110,869) (106,110)
  164,680 169,191
Treasury stock: at cost, 110,874 shares at March 31, 2013 and December 31, 2012 (3,019) (3,019)
Total AV Homes stockholders' equity 161,661 166,172
Non-controlling interest 13,808 13,704
Total Equity 175,469 179,876
Total Liabilities and Equity  $ 332,277  $ 337,871
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2013 and 2012
(Dollars in thousands except per-share amounts)
  Three Months
  2013 2012
Real estate revenues    
Homebuilding  $ 22,548  $ 17,438
Commercial and industrial and other land sales 2,305 9,058
Other real estate 257 144
Total real estate revenues 25,110 26,640
Interest income 9 31
Other -- 39
Total revenues 25,119 26,710
Real estate expenses    
Homebuilding 22,765 19,881
Commercial and industrial and other land sales 865 5,967
Other real estate 707 2,054
Total real estate expenses 24,337 27,902
Impairment charges -- 152
General and administrative expenses 3,705 3,306
Interest expense 1,773 2,237
Total expenses 29,815 33,597
Loss from unconsolidated entities  (63)  (36)
Loss before income taxes  (4,759)  (6,923)
Income tax (expense) benefit  --   -- 
Net loss and comprehensive loss  (4,759)  (6,923)
Net loss attributable to non-controlling interests in consolidated entities  --   (1,528)
Net loss and comprehensive loss attributable to AV Homes stockholders  $ (4,759)  $ (8,451)
Basic and Diluted Loss Per Share  $ (0.38)  $ (0.68)

The following table provides a comparison of certain financial data related to our operations for the three months ended March 31, 2013 and 2012:

  Three Months
  2013 2012
Operating income (loss):    
Active adult communities    
Revenues (1) $ 12,006   $ 9,805
Expenses (2) 12,885 12,452
Segment operating loss (879) (2,647)
Primary residential    
Revenues (3) 10,542 7,633
Expenses 9,880 7,429
Segment operating income (loss) 662 204
Commercial and industrial and other land sales    
Revenues 2,305 9,058
Expenses 865 5,967
Segment operating income 1,440 3,091
Other operations    
Revenues 257 144
Expenses 68 94
Segment operating income 189 50
Operating income 1,412 698
Unallocated income (expenses):    
Interest income 9 31
Equity loss from unconsolidated entities (63) (36)
Net (gain)/loss attributable to non-controlling interests -- (1,528)
General and administrative expenses (3,705) (3,306)
Interest expense (1,773) (2,237)
Other real estate expenses (639) (2,073)
Loss before income taxes (4,759) (8,451)
Income tax benefit -- --
Net loss attributable to AV Homes  $ (4,759)  $ (8,451)

(1)  Includes homebuilding revenues of $10,222 and amenity revenues of $1,784 for the three months ended March 31, 2013.

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