Earnings per share increased to $0.08 Homebuilding revenue increased 72% to $45.2 million Home closings increased 68% to 171
SCOTTSDALE, Ariz., March 13, 2014 (GLOBE NEWSWIRE) -- AV Homes, Inc. (Nasdaq:AVHI) ("AV Homes" or the "Company"), a developer and builder of active adult and conventional home communities in Arizona, Florida and North Carolina, today announced results for its fourth quarter and full year ended December 31, 2013. AV Homes reported fourth quarter net income of $1.8 million, or $0.08 per share, compared to a net loss of ($58.9) million, or ($4.67) per share in the fourth quarter of 2012, which included a non-cash impairment charge of ($51.7) million. Total revenue for the fourth quarter of 2013 increased 63% to $54.0 million from $33.2 million in the fourth quarter of 2012.
Roger A. Cregg, President and Chief Executive Officer, commented, "2013 was a very good year for AV Homes, with homebuilding revenue growing by 65% and net new orders increasing 18%, homes delivered up by 57%, improving gross margin by 550 basis points, and significantly improving our SG&A leverage, each improving over 2012 performance. While the improving housing market contributed to these results, they also reflect our strategic efforts to improve our operational performance and expand our presence in our core markets." Mr. Cregg continued, "We are entering 2014 with newly acquired land positions for deliveries in the year, a strong balance sheet ending 2013 with $145 million in cash and a low debt-to-total capital ratio. We remain optimistic about our business and continue to focus on improving our profitability."The increase in total revenue for the fourth quarter of 2013 compared to the prior year period included a 72% increase in total homebuilding-related revenue to $45.2 million, and a $0.9 million increase in land sales to $6.7 million. The increase in homebuilding revenue was driven by strong volume increases and improved selling prices. During the fourth quarter of 2013, the Company closed on 171 homes, a 68% increase from the 102 homes closed during the fourth quarter of 2012, and the average unit price per closing rose 6.0% to $249,000 from $235,000 in the fourth quarter of 2012.