Brookfield Homes Corp., Fairfax, Va., (NYSE:BHS) on Monday after market close reported a $69 million loss (-$2.58 per share) for the fourth quarter of 2008 and a loss of $116 million for the year ($-4.33 per share). The loss included internal impairments of $60 million for the quarter and $115 million for the year and joint-venture impairments of $19 million and $38 million, respectively.

Shares of BHS closed up 16 cents at $2.65 Monday.

The operating loss for the quarter was $121.6 million, but the company managed to recover $42.3 million in previously paid income tax, which reduced the loss. In a statement, the company said, "2008 was another very challenging year for the North American homebuilding industry. Home foreclosures and lack of financing for homebuyers resulted in increased inventories and sharp declines in new home deliveries. Having said that, the company¹s assets are largely located in geographic areas with a constrained supply of lots and which have demonstrated strong economic characteristics over the long term."

Even with its high end product, however, Brookfield could not make the numbers work. Although its closings for the quarter were off only 15.4% to 230, its revenues were down 29.9% to $150 million. The company attributed the revenue drop, in part, to a decline in average selling price, which fell to $557,000 in the quarter from $641,000 at the same time last year. It also noted a change in product mix and increased incentives. And it sold 548 lots in this year's quarter versus 1,265 during the same period last year.

New orders, on the other hand, mostly held up in the quarter, falling to 98 this year from 104 last year. Backlog fell modestly as well, down to 134 in this years quarter from 155 in last year's.

SG&A rose to $21.9 million from $19.8 million on year-over-year basis for the quarter. The company said it generated $66 million in operating cash flow for the year. It listed no cash or cash equivalents on its balance sheet at Dec. 31.

The company in December announced a rights offering to common stockholders of up to 10,000,000 shares of 8% convertible preferred stock. Each whole right will entitle the holder to purchase one share of convertible preferred stock for $25.00. The company hopes to net $250 million from the offering, it said.

In January, it amended its unsecured revolving credit facility with a subsidiary of its major stockholder, Brookfield Asset Management Inc., providing for an increase in the aggregate principal amount not to exceed $350 million, extending the term to June 30, 2010 and amending the covenants on a temporary basis to June 30, 2009.

The company's count of owned, joint venture and optioned lots was 24,109 at year end compared to 25,371 at yearend, 2007. It said 3,000 of those lots are fully developed.

Brookfield said its goal for 2009 was the generation of $120 million in operating cash flow, which it said would be used to reduce debt.