This Day On The Street
Continue to site right-arrow
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!

Forestar Group Inc. Reports Full Year And Fourth Quarter 2013 Results

Stocks in this article: FOR

Forestar Group Inc. (NYSE: FOR) today reported full year 2013 net income of approximately $29.3 million, or $0.80 per diluted share, compared with full year 2012 net income of approximately $12.9 million, or $0.36 per diluted share outstanding. Full year 2013 results include a previously unrecognized tax benefit of approximately $6.3 million, or $0.17 per share, related to qualified timber gains. Full year 2012 results include after-tax expenses of approximately ($4.1) million, or ($0.12) per share, associated with acquisition of CREDO Petroleum Corporation, and an after-tax loss of ($2.9) million, or ($0.08) per share, associated with loss on extinguishment of debt related to amendment and extension of our term loan.

“During 2013, housing markets continued to strengthen, and we experienced the highest level of residential lot sales and margins since 2006. In addition, residential tract sales strengthened, reflecting robust builder demand for lot positions. Commercial tract sales also increased, commensurate with a broadening real estate recovery. Multifamily demand, which has led the way in this housing recovery, remained solid in our target markets.

“Oil and gas investments and production continued to increase in the Bakken/Three Forks formations in North Dakota and in the Lansing-Kansas City formation in Kansas and Nebraska. In addition, total proved reserves increased nearly 52% to 8.5 million BOE (barrel of oil equivalent) despite producing almost 1.1 million BOE during 2013, which represents a strong pipeline of future opportunities to accelerate oil and gas production and returns,” said Jim DeCosmo, president and chief executive officer of Forestar Group.

Full Year 2013 Significant Highlights (Includes Ventures)

Real Estate

  • Sold 1,883 developed residential lots, with margins up 28% compared with 2012
  • Sold over 6,810 acres of undeveloped land for $3,385 per acre
  • Sold 171 commercial acres for over $197,000 per acre
  • Sold 1,617 acres of residential tracts for nearly $14,200 per acre
  • Sold Promesa, a stabilized multifamily community for $41.0 million, generating earnings of $10.9 million

Oil and Gas

  • Oil production up nearly 88% compared with 2012, principally due to the acquisition of CREDO Petroleum and additional investments principally targeting the Bakken/Three Forks and Lansing-Kansas City formations
  • 83 new productive gross oil and gas wells; 18 wells waiting on completion and drilling at year-end
  • Leased nearly 9,200 net mineral acres to third parties principally in Texas for nearly $2.5 million

Other Natural Resources

  • Sold over 609,500 tons of fiber for $15.88 per ton

Fourth Quarter 2013 Significant Highlights (Includes Ventures)

The company reported fourth quarter 2013 net income of approximately $13.0 million, or $0.33 per diluted share, compared with fourth quarter 2012 net income of approximately $10.0 million, or $0.28 per diluted share outstanding. Fourth quarter 2012 results include after-tax expenses of approximately ($0.4) million, or ($0.01) per share, associated with the acquisition of CREDO Petroleum.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!


DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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