WCI Communities, Bonita Springs, Fla. (NYSE:WCIC) on Wednesday reported a net profit of $6.7 million, or $0.25 per diluted share for the first quarter ended March 31, up 17.5% from $5.7 million in the same period last year.
Revenue totaled $138.3 million for the quarter, up $40.6 million, or 41.6%, compared to first quarter, 2015. Home building revenues grew 63.9%. SG&A improved by 350 basis points compared to the prior year quarter.
Adjusted gross margin from homes delivered (non-GAAP) was 27.7% for the quarter, down 230 basis points from the prior year quarter. The company attributed the decline to "shifting land mix as the percentage of deliveries from communities owned as of September 2009 declined from 71% in the prior year quarter to 45% in the current quarter."
New orders declined 1.9% to 310. The average selling price was $496,000, up 11.2% increase from the first quarter of 2015. The value of new orders was $153.8 million, up 9.2% from the prior year quarter.
As of March 31, 2016, backlog value was $316.0 million, up $33.6 million, or 11.9%, from the prior year. The average selling price of backlog units was $506,000, an increase of 2% from the prior year.
"While demand trends appeared to generally moderate across Florida this quarter when compared to the prior year, we believe the Florida housing market remains healthy," said Keith Bass, WCI president and CEO. "Additionally, we remain optimistic in our long-term view of the Florida housing market given the state's positive demographic, economic and real estate fundamentals."
WCI 1st QTR At a Glance:
- Deliveries of 254, up 84.1%.
- Homebuilding revenues of $109.8 million, up 63.9%.
- Selling, general and administrative ("SG&A") expenses as a percent of home building revenues improved by 350 basis points.
- Adjusted EBITDA of $15.2 million, up 52.0%.
- Income from operations before income taxes of $10.6 million, up 53.6%.
- Net income attributable to common shareholders of $6.7 million, up 17.5%.
- Earnings per diluted share of $0.25, up 19.0%.
- Net debt to net capitalization of 23.0%.
- Average selling price per new order of $496,000, up 11.2%.
- Contract value of new orders of $153.8 million, up 9.2%.
- New orders of 310, down 1.9%.
- Backlog units totaling 625, up 9.6%.
- Backlog contract value of $316.0 million, up 11.9%.
- Adjusted gross margin from homes delivered of 27.7%.
- Land portfolio totals 14,400 owned or controlled home sites, up 13.4%.