Brookfield Homes (NYSE:BHS), Fairfax, Va., on Monday morning reported a net loss or $10 million ($-0.39 per share) for the first quarter ended March 31, 2009, compared to a net loss of $12 million (-$0.47) per share for the same period in 2008. The loss included impairments on housing and land inventory of $4 million and $12 million on investments in housing and land joint ventures for the first quarter of 2009, compared to impairment charges for the first quarter of 2008 on housing and land inventory of $6 million.
Revenues fell 46.4% to $37 million as closings dropped 38.3% to 74 and the average selling price declined 15.4% to $483,000.
Net new orders were down 33.8% from last year's first quarter to 153 units, but the sales pace represented an increase from net new orders of 98 units in the fourth quarter of 2008. The company attributed the rise from fourth quarter to "increased seasonal traffic." Brookfield closed 74 homes in its own communities, down from 120 for last year's first quarter, as it cut its community count from 34 to 30. Backlog was 213, down from 266 at the same time last year. Brookfield said its inventory contained 477 completed homes at the end of the quarter.
At March 31, 2009, the company owned or controlled 25,586 lots, 12,829 owned, 1,732 through joint ventures and 11,025 optioned, a net increase of 1,477 lots during the quarter. It acquired 1,800 foreclosed lots in the San Diego/Riverside area during the quarter, which it financed with a $25 million unsecured revolving credit facility from its Brookfield Asset Management, Inc.
The company's gross margin on housing was 10%, 3% lower than fourth quarter, 2008. Cash flow from operations was $25 million, and $27 million in project-specific debt was repaid.
The company listed no cash or cash-equivalent on its balance sheet.It successfully sold 10,000,000 shares of 8% convertible preferred stock in April, generating gross proceeds of $250 million, which Brookfield said would be used for general corporate purposes, including repayment on the credit facility of an affiliate of its largest stockholder, Brookfield Asset Management Inc., which now holds 81.6% of Brookfield common shares.
The company said it was targeting approximately $120 million of operating cash flow in 2009 which it intends to use to continue to reduce debt.