Forestar Group Inc., Arlington, Texas (NYSE: FOR) after market close Thursday reported net income attributable to Forestar for the third quarter of fiscal 2019 was $6.9 million, or $0.16 per diluted share. Wall Street was looking for a gain of $0.06.
Revenues for the third quarter of fiscal 2019 increased 274% to $88.2 million from $23.6 million in the same quarter of fiscal 2018. Residential lots sold in the quarter increased 290% to 1,158 lots compared to 297 lots in the same quarter of fiscal 2018.
For the nine months ended June 30, 2019, net income attributable to Forestar increased to $20.3 million, or $0.48 per diluted share, compared to a net loss of $3.6 million, or $0.09 per diluted share, in the same period of fiscal 2018. Revenues for the first nine months of fiscal 2019 increased 149% to $192.0 million from $77.0 million in the same period of fiscal 2018. Residential lots sold in the first nine months of fiscal 2019 increased 160% to 2,224 lots compared to 856 lots sold in the same period of fiscal 2018.
The company's lot position at June 30, 2019 consisted of 37,400 lots, of which 28,800 were owned and 8,600 were controlled through purchase contracts. Of the total lot position, 24,100 lots were under contract to sell or subject to a right of first offer to D.R. Horton, Inc.
During the quarter, the company issued $350 million principal amount of 8.0% senior unsecured notes. The notes are due April 15, 2024, with interest payable semi-annually. The company ended the third quarter with $223.0 million of unrestricted cash and a net debt to total capital ratio of 25.3%.
Donald J. Tomnitz, chairman of the board, said, “Forestar is a high-growth company with a low-risk, returns-focused lot manufacturing business model. Our strategic relationship with D.R. Horton, Inc., the nation's largest home builder, is continuing to support the rapid expansion of our operating platform. We are on track to deliver 4,000 lots during fiscal 2019, with annual growth of over 200%. Forestar is now in 50 markets and 20 states, an increase of 30 markets and 9 states from just a year ago, and we are making great progress building out our operational teams across our growing footprint. With approximately 37,400 lots owned and controlled at June 30, 2019, we are well positioned for extraordinary growth in the coming years."