The last of the public homebuilders reported its 2010 financials Wednesday, and they looked like many of the others: Red.
Avatar Holdings Inc. (Nasdaq: AVTR) after market close reported a net loss for 2010 of $35.1 million, or ($3.07) per share, diluted, for the 2010 year ended December 31. The loss was wider than the $30 million ($3.11) per share lost in 2009, which was bolstered by a tax benefit of $32.9 million. The company has no analyst coverage, so there were no earnings expectations.
The company included only selected financial data in its earnings release.For the year, revenue was $59.1 million for 2010 compared to $73.5 million in 2009. Closings fell 20% to 184 homes; dollar volume fell 17% to $37.1 million.
New orders fell 16% from 2009 to 168. The dollar volume of contracts signed increased by 2% compared to the year ended December 31, 2009, to $35 million compared to $34.2 million in the prior year.
Data for the quarter was obtained from a 10-K filing with the Securities and Exchange Commission shortly after the earnings were released. The loss of the quarter was $9.7 million, or ($0.81) per share, up from a loss of $1.8 million in fourth quarter, 2009. Revenue rose to $22.6 million from $20.5 million in the 2009 quarter.
Backlog was up to 43 at yearend from 25 at December 31, 2009. The aggregate dollar volume of backlog was $11.4 million compared to $5.5 million at yearend 2009.
Avatar's ended the year with $115.5 million in cash, down from $217.1 million at yearend 2009. Total debt was $77 million, down from million a year earlier.
The biggest news from Avatar during the year was its October acquisition of a group of assets in Florida and Arizona from Jen Partners LLC for cash, stock and debt totaling $62 million plus an earn-out of up to $8 million in stock and the assumption of approximately $3.6 million in debt.
Among the assets was phase one at CantaMia, a 1,781-unit active adult community located in the Estrella Mountain Ranch Master Plan Community in Goodyear, Arizona. Phase 1 comprises 593 partially or fully developed lots,29 houses under construction, a recreation center scheduled to open during March 2011 and a fully finished sales center. The company has an option for phases 2 and 3 consisting of 1,138 undeveloped lots at a price of $9.6 million, of which $1 million was paid during December, 2010.
Also among the assets were 99 fully developed lots, 15 houses completed or under construction and options on another 16 developed lots. The deal also included Joseph Carl Homes, LLC (now known as Avatar Properties of Arizona,LLC) - a Phoenix-based private home builder and the developer of CantaMia.
In Florida, the company got Sharpe properties, 445 acres located in Orange County, Florida, comprised of 839 partially developed single-family and townhome lots, a multi-family tract, and a two-acre commercial site.
In the management commentary section of the 10K, the company states, "During 2010, our homebuilding results reflect the difficult conditions in our Florida and Arizona markets characterized by record levels of homes available for sale and diminished buyer confidence. The number of foreclosure sales as well as investor-owned units for sale; the number of foreclosures, pending foreclosures and mortgage defaults; the availability of significant discounts; the difficulty of potential purchasers in selling their existing homes at prices they are willing to accept; the significant amount of standing inventory and competition continue to adversely affect both the number of homes we are able to sell and the prices at which we are able to sell them."