Brookfield Homes Corporation, Fairfax, Va. (NYSE:BHS) on Thursday reported a loss of $1 million (-$0.22 per share) for the third quarter ended Sept. 30, compared to a net loss of $26 million (-$0.95 per share) for the same period in 2008. The loss included $11 million in impairments and other write-downs, down from $41 million in the same quarter last year.
Revenue totaled $99 million, down from $110 million for the same period in 2008, including $10 million from land sales. Closings inched upward to 192 from 184, but average selling price declined 19% from Sept. 2008 levels to $468,000.
Net new orders rose 28% to 208 units. Community count at quarter's end was 29, down from 33 for the third quarter of 2008. Homes in backlog rose to 326 from 266 at the end of last year's third quarter.
Brookfield added a total of 2,714 lots through the first nine months of the year and ended the period with 26,823 lots, roughly 16,000 owned by the company or by joint ventures. It said it plans to entitle 1,500 lots in 2009 and 2010.
In its earnings commentary, Brookfield said, "Selling communities have seen an increase in traffic as homebuyers take advantage of improved affordability, with continued low interest rates, declining home prices and government stimulus programs. The North American homebuilding industry continues to face a number of challenges with home foreclosures and tight credit standards continuing to have an effect on inventory and new home sale rates and prices. However, homebuyer confidence has improved as they appear to recognize that home prices have begun to stabilize."
The company said it was is on target to generate approximately $90 million of operating cash flow in 2009, which it plans to use to reduce debt. During the first nine months of the year, it generated $69 million of operating cash flow was used to reduce overall borrowings, which brought the company's debt-to-capital ratio down to 46%.
Brookfield earlier this year made a $250 million rights offering to its common shareholders of up to 10 million shares of 8% convertible preferred stock.