Avatar Holdings Inc. (Nasdaq: AVTR) after market close Monday reported a netloss of $10.1 million (-$0.90 per share, diluted) for its first quarterended March 31, a wider loss than the $8.6 million loss the companysustained in the 2009 first quarter.
Still, the company beat the expectations of the sole analyst who covers thecompany, who was expecting a loss of $1.56 per share. Avatar shares fell1.6% to $20.77 in after-market trading after closing up 8.3% at $21.12during the regular session Monday.
Revenues fell considerably for the quarter, down by 37.2% to $9.6 million,partly due to a one-time gain of $1.8 million from the sale of land in the2009 quarter. Closings were down 17.6% to 28, with dollar volume off 29.7%to $5.4 million.
New orders were up 5.3% to 60 for the quarter as new-order dollar volumeincreased 17.6% to $12.1 million compared to the comparable quarter in 2009. Avatar did not report a cancellation rate.
Avatar, typically circumspect in its earnings releases, did not reportmargin, cost or other operating data. It said it ended the quarter with $213.2 million in cash and listed $119.3 million in debt on its balance sheet at quarter's end.
However, in a 10-Q filing with the Securities and Exchange Commission, the company included an executive summary that stated, in part, "During the three months ended March 31, 2010, our home building results reflect the difficult conditions in our Florida and Arizona markets characterized by record levels of homes available for sale and diminished buyer confidence...Our communities continuy to experience low traffic, significant discounts, low margins and continued high delinquencies on homeowner association and club membership dues...We believe that housing market conditions will continue to be difficult during 2010."
Also in the 10Q, the company reported that the average price on sales closed from primary residential home building operations were down 8% to $197,000 and the margin on closings fell to -5% from 8% during the 2009 quarter. New order pricing was flat. In its active adult operations, the average closing price was down 26% to $190,000 and new order prices were up 12% year-over-year to $211,000. The margin, however, on active adult was squeezed to 4% from 19% at the same time last year.