Fueled by growth in its core Florida markets throughout 2015, including the fourth quarter, WCI reported growth across the board this morning.
Keith Bass, WCI's president and CEO, commented in an earnings release, "2015 was another very successful year for WCI, as we achieved significant growth in revenues, profitability, new orders, deliveries and community count." Mr. Bass added, "The Florida markets in which we operate continue to demonstrate strong demographic and economic drivers that should fuel future growth. We believe that we are well positioned to execute our growth strategy into 2016 given our product offerings and targeted customer segments."
Here are some highlights from the fourth quarter:
- New orders of 222, up 29.8%
- Contract value of new orders of $108.0 million, up 47.5%
- Average selling price per new order of $486,000, up 13.6%
- Deliveries of 299, up 25.6%
- Backlog units totaling 569, up 45.2%
- Backlog contract value of $271.2 million, up 32.1%
- Net income attributable to common shareholders of $9.7 million
- Earnings per diluted share of $0.37 per diluted share
J.P. Morgan's Michael Rehaut predicted a slightly negative investor reaction to the quarterly results because orders came in below their expectations. Here's more from the analyst:
"Downside to our estimate was driven by slightly lower gross margins of 24.7% versus our 25.0% estimate, which drove $0.01/share of downside, and a higher tax rate, which drove $0.02/share of downside. This was mostly offset by lower than expected SG&A of 12.1% versus our 12.7% estimate, which drove $0.02/share of upside. Lastly, orders rose 30%, below our 55% estimate and in contrast with the last three quarters’ order growth of 54-61%, as average community count rose 36%, roughly in-line with our 37% estimate, while absorption fell 4%, below our +13% estimate."