Forestar Group Inc. (NYSE: FOR) today reported third quarter 2013 net income of approximately $11.8 million, or $0.33 per diluted share, compared with a third quarter 2012 net loss of approximately ($0.7) million, or ($0.02) per share outstanding. Third quarter 2013 results include a previously unrecognized tax benefit of approximately $6.3 million, or $0.17 per share, related to qualified timber gains. Third quarter 2012 results include a gain of approximately $10.2 million, or $0.19 per share, after-tax, from the sale of the Broadstone Memorial multifamily community in Houston. In addition, third quarter 2012 results include after-tax expenses of approximately ($5.0) million, or ($0.14) per share, after-tax, principally associated with acquisition of Credo Petroleum Corporation and extinguishment of debt related to amendment and extension of our term loan.
“During third quarter, we continued to see accelerating momentum in real estate sales as well as in oil and gas production. Residential lot demand continues to strengthen evidenced by higher lot sales and average per lot pricing compared with third quarter 2012. Third quarter residential lot sales were the highest since we became a public company in 2007. Multifamily market fundamentals remain favorable in our target markets as we continue to expand our pipeline of projects and sites. In addition, improving oil and gas segment results reflect higher levels of oil production, driven by increased investments in exploration and drilling activity in the Bakken/Three Forks formations in North Dakota and the Lansing-Kansas City formation in Kansas and Nebraska. Given our attractive pipeline of opportunities and our success to date, we look forward to additional oil and gas investments expected to grow production, reserves and earnings. Likewise, given the solid housing recovery, we anticipate continued investments in real estate,” said Jim DeCosmo, president and chief executive officer of Forestar Group.
Third Quarter 2013 Significant Highlights
- Sold 547 developed residential lots, up over 103% compared with third quarter 2012, with average lot margins up over 28% compared with third quarter 2012
- Oil production up over 170% compared with third quarter 2012, with 41 new wells drilled in third quarter 2013
Forestar manages its operations through three business segments: real estate, oil and gas and other natural resources.