Coral Gables, Fla.-based Avatar Holdings Inc. (Nasdaq: AVTR) late Monday reported a net loss of $21,710,000 ($2.54 per diluted share) for the three months ended September 30, 2008, including an impairment charge on its Poinciana Parkway development south of Orlando of $16.8 million.
For the first nine months of the year, Avatar reported a net loss of $28,806,000 ($3.37 per share, diluted).
Revenues decreased 61% to $22.4 million. For the first nine months of the year, the company's revenues are down 66% to $77.8 million.
During the quarter, Avatar closed on 66 homes, a 56% decrease from third quarter 2007. Dollar volume decreased by 55% to $18,190,000. New orders, net of cancellations, decreased 65% to 27. Dollar volume of contracts signed declined by 60% compared to the three months ended September 30, 2007, to $6,899,000. It did not report a cancellation rate.
In its earnings release, the company said, "Our sales results continue to reflect the weak market for new single- family and multi-family residences in our markets. We do not anticipate a meaningful improvement in our markets in the near term."
At September 30, Avatar had cash and cash equivalents of $156,992,000 and total borrowings of $114,911,000, which included $114,800,000 of 4.50% Convertible Senior Notes due 2024. During October, the company purchased $35,920,000 principal amount of its 4.50% Notes, at a price of approximately $28,112,000, including accrued interest. At October 31, 2008, Avatar had total borrowings of $78,991,000, including $78,880,000 of 4.50% Notes and cash and cash equivalents of approximately $125,000,000.