AV Homes, Inc. Announces First Quarter Results

AV Homes, Inc. Announces First Quarter Results

SCOTTSDALE, Ariz., May 8, 2013 (GLOBE NEWSWIRE) -- AV Homes, Inc.
(Nasdaq:AVHI) a developer and builder of active adult and conventional home
communities in Arizona and Florida, today announced results for its first
quarter ended March 31, 2013.

The Company reported a net loss $4.8 million, or 38 cents per diluted share,
on revenues of $25.1 million for the three months ended March 31, 2013,
compared to a net loss of $8.5 million, or 68 cents per diluted share, on
revenues of $26.7 million for the three months ended March 31, 2012.

During the three months ended March 31, 2013, the Company closed on 81 homes,
a 29% increase from the 63 homes closed during the first three months of 2012.
The dollar volume of these closings increased 37% to $20.2 million, compared
to a dollar volume of $14.7 million during the same period in 2012.

The number of housing contracts signed, net of cancellations, during the three
months ended March 31, 2013 increased 27% to 135 units, compared to 106 units
during the same period in 2012. The dollar value of the contracts signed
during the first quarter increased 27% to $29.4 million, compared to $23.2
million during the same period one year ago. The backlog of homes under
contract but not yet closed at March 31, 2013 increased 70% to 239 units,
representing a dollar volume of $53.2 million, compared to 141 units with a
dollar volume of $30.1 million at March 31, 2012.

The overall average unit price per closing rose 7% from $233,000 in the first
quarter of 2012 to $249,000 in the first quarter of 2013. The average sales
price of new contracts decreased slightly from $219,000 to $218,000 due
primarily to a mix of lower priced homes sold in the Company's active adult
division.

During the three months ended March 31, 2013, the Company reported $2.3
million in revenue from the sale of commercial, industrial and other lands,
which generated $1.4 million in net income to the Company compared to $9.1
million in revenue and $3.1 million in net income during the first quarter of
2012.

President and Chief Executive Officer Roger A. Cregg said the Company's dual
initiatives of growing revenue and lowering costs through operational
efficiency are improving bottom line performance. "We continue to focus on
improving our building processes to drive margin improvement and better align
our product offerings with our customers' expectations. During the quarter,
this process contributed to an increase in our contribution margin (excluding
impairments) from 13% to 16% on a year-over-year basis," Cregg said. "We are
also benefitting from the strengthening homebuilding economy, especially in
Central Florida where we have a significant inventory of lots and land.We are
now deploying some of these assets into our Joseph Carl Homes division to
serve first-time and move-up home buyers.The Orlando market is experiencing a
decline in community inventories and we are well positioned to take advantage
of this trend," Cregg added.

The Company will hold a conference call and webcast on Thursday, May 9, 2013
to discuss its first quarter financial results.The conference call will begin
at 8:30 a.m. EDT. The conference call can be accessed live over the telephone
by dialing (877) 643-7158 or for international callers by dialing (914)
495-8565. Please dial-in 10 minutes before the start of the call. A replay
will be available on May 9, 2013 at 5:00 p.m. EDT and can be accessed by
dialing (855) 859-2056 or for international callers by dialing (404) 537-3406;
the conference ID is 59358300. The replay will be available until May 16,
2013. In order to access the live webcast, please go to the Investors section
of AV Homes' website at www.avhomesinc.com and click on the webcast link that
will be made available. A replay will be available shortly after the original
webcast.

AV Homes, Inc. is engaged in homebuilding, community development and land
sales in Florida and Arizona. Its principal operations are conducted near
Orlando, Florida and in the Phoenix, Arizona markets.The company serves
active adults 55+ with its Vitalia brand and also builds communities for
people of all ages under its Joseph Carl Homes brand.AV Homes common shares
trade on NASDAQ under the symbol AVHI.

This news release, the conference call and the webcast contain
"forward-looking statements" within the meaning of the U.S. federal securities
laws, which statements may include information regarding the plans,
intentions, expectations, future financial performance, or future operating
performance of AV Homes, Inc. Forward-looking statements are based on the
expectations, estimates, or projections of management as of the date of this
news release, the conference call and the webcast. Although our management
believes these expectations, estimates, or projections to be reasonable as of
the date of this news release, the conference call and the webcast,
forward-looking statements are inherently subject to significant business
risks, economic and competitive uncertainties, or other contingencies which
could cause our actual results or performance to differ materially from what
may be expressed or implied in the forward-looking statements. Important
factors that could cause our actual results or performance to differ
materially from our forward-looking statements include those set forth in the
"Risk Factors" section of our Annual Report on Form 10-K for the year ended
December 31, 2012 and in our other filings with the Securities and Exchange
Commission, which filings are available on www.sec.gov. AV Homes disclaims
any intention or obligation to update or revise any forward-looking statements
to reflect subsequent events and circumstances, except to the extent required
by applicable law.

AV HOMES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
                                                                
                                                     March 31,   December 31,
                                                     2013        2012
Assets                                                (unaudited) 
Cash and cash equivalents                             $71,087   $79,815
Restricted cash                                       4,727       4,682
Land and other inventories                            180,826     171,044
Receivables, net                                      6,362       6,730
Income tax receivable                                 1,293       1,293
Property and equipment, net                           36,395      36,661
Investments in and notes receivable from              1,240       1,220
unconsolidated entities
Prepaid expenses and other assets                     10,156      10,777
Assets held for sale                                  20,191      25,649
Total Assets                                          $332,277  $337,871
                                                                
Liabilities and Equity                                           
                                                                
Liabilities                                                      
Accounts payable                                      $4,719    $4,656
Accrued and other liabilities                         11,576      12,978
Customer deposits and deferred revenues               2,156       1,985
Estimated development liability for sold land         32,955      32,974
Notes Payable                                         105,402     105,402
Total Liabilities                                     156,808     157,995
                                                                
Equity                                                           
Common Stock, par value $1 per share                             
Authorized:50,000,000 shares                                    
Issued: 12,898,251 shares at March 31, 2013                     
12,938,157 shares at December 31, 2012                12,898      12,938
Additional paid-in capital                            262,651     262,363
Retained (deficit) earnings                           (110,869)   (106,110)
                                                     164,680     169,191
                                                                
Treasury stock: at cost, 110,874 shares at March 31,  (3,019)     (3,019)
2013 andDecember 31, 2012
Total AV Homes stockholders' equity                   161,661     166,172
Non-controlling interest                              13,808      13,704
Total Equity                                          175,469     179,876
                                                                
Total Liabilities and Equity                          $332,277  $337,871
                                                                

AV HOMES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2013 and 2012
(unaudited)
(Dollars in thousands except per-share amounts)
                                                                  
                                                        Three Months
                                                        2013       2012
Revenues                                                           
Real estate revenues                                               
Homebuilding                                             $22,548  $17,438
Commercial and industrial and other land sales           2,305      9,058
Other real estate                                        257        144
Total real estate revenues                               25,110     26,640
Interest income                                          9          31
Other                                                    --         39
Total revenues                                           25,119     26,710
                                                                  
Expenses                                                           
Real estate expenses                                               
Homebuilding                                             22,765     19,881
Commercial and industrial and other land sales           865        5,967
Other real estate                                        707        2,054
Total real estate expenses                               24,337     27,902
Impairment charges                                       --         152
General and administrative expenses                      3,705      3,306
Interest expense                                         1,773      2,237
Total expenses                                           29,815     33,597
                                                                  
Loss from unconsolidated entities                        (63)      (36)
                                                                  
Loss before income taxes                                 (4,759)   (6,923)
Income tax (expense) benefit                             --       --
                                                                  
Net loss and comprehensive loss                          (4,759)   (6,923)
                                                                  
Net loss attributable to non-controlling interests in    --       (1,528)
consolidated entities
                                                                  
Net loss and comprehensive loss attributable to AV Homes $(4,759) $(8,451)
stockholders
                                                                  
Basic and Diluted Loss Per Share                         $(0.38)  $(0.68)
                                                                  

The following table provides a comparison of certain financial data related to
our operations for the three months ended March 31, 2013 and 2012:

                                                        Three Months
                                                        2013       2012
Operating income (loss):                                           
Active adult communities                                           
Revenues (1)                                             $ 12,006   $ 9,805
Expenses (2)                                             12,885     12,452
Segment operating loss                                   (879)      (2,647)
                                                                  
Primary residential                                                
Revenues (3)                                             10,542     7,633
Expenses                                                 9,880      7,429
Segment operating income (loss)                          662        204
                                                                  
Commercial and industrial and other land sales                     
Revenues                                                 2,305      9,058
Expenses                                                 865        5,967
Segment operating income                                 1,440      3,091
                                                                  
Other operations                                                   
Revenues                                                 257        144
Expenses                                                 68         94
Segment operating income                                 189        50
                                                                  
Operating income                                         1,412      698
                                                                  
Unallocated income (expenses):                                     
Interest income                                          9          31
Equity loss from unconsolidated entities                 (63)       (36)
Net (gain)/loss attributable to non-controlling          --         (1,528)
interests
General and administrative expenses                      (3,705)    (3,306)
Interest expense                                         (1,773)    (2,237)
Other real estate expenses                               (639)      (2,073)
Loss before income taxes                                 (4,759)    (8,451)
Income tax benefit                                       --         --
Net loss attributable to AV Homes                        $(4,759) $ (8,451)
                                                                  

(1)Includes homebuilding revenues of $10,222 and amenity revenues of $1,784
for the three months ended March 31, 2013.

(2)Includes impairment charges for inventory of approximately $0 and $152
for the three months ended March 31, 2013 and 2012, respectively.

(3) Includes homebuilding revenues of $9,933 and amenity revenues of $609 for
the three months ended March 31, 2013.

Data from closings for the active adult and primary residential homebuilding
segments for the three months ended March 31, 2013 and 2012 is summarized as
follows:

                                     Number of           Average
For the three months ended March 31, Units     Revenues  Price Per
                                                         Unit
                                                      
2013                                                   
Active adult communities             39        $10,222 $262
Primary residential                  42        9,933     $237
Total                                81        $20,155 $249
                                                      
2012                                                   
Active adult communities             32        $7,984  $250
Primary residential                  31        6,698     $216
Total                                63        $14,682 $233

Data from contracts signed for the active adult and primary residential
homebuilding segments for the three months ended March 31, 2013 and 2012 is
summarized as follows:

                  Gross Number              Contracts             Average
                                              Signed,
                  of Contracts              Net of        Dollar   Price Per
For the three
months ended March Signed       Cancellations Cancellations Value    Unit
31,
                                                                
2013                                                             
Active adult       97           (13)          84            $19,038 $227
communities
Primary            72           (21)          51            10,353   $203
residential
Total              169          (34)          135           $29,391 $218
                                                                
2012                                                             
Active adult       66           (24)          42            $10,536 $251
communities
Primary            75           (11)          64            12,668   $198
residential
Total              141          (35)          106           $23,204 $219

Backlog for the active adult and primary residential homebuilding segments as
of March 31, 2013 and 2012 is summarized as follows:

                        Number of Dollar   Average Price
As of March 31,          Units     Volume   Per Unit
                                         
2013                                      
Active adult communities 108       $25,440 $236
Primary residential      131       27,713   $212
Total                    239       $53,153 $222
                                         
2012                                      
Active adult communities 55        $14,243 $259
Primary residential      86        15,819   $184
Total                    141       $30,062 $213

CONTACT: Media Contact: Ken Plonski
         480-214-7408
         k.plonski@avhomesinc.com

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