AV Homes, Inc. Announces Second Quarter Results

AV Homes, Inc. Announces Second Quarter Results

SCOTTSDALE, Ariz., Aug. 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 second
quarter ended June 30, 2013.

The Company reported a net loss $4.7 million, or 36 cents per diluted share,
on revenues of $29.6 million for the three months ended June 30, 2013,
compared to a net loss of $11.3 million, or 91 cents per diluted share, on
revenues of $19.0 million for the three months ended June 30, 2012.

For the six-month period ended June 30, 2013, the company reported a net loss
of $9.4 million or 74 cents per diluted share, on revenues of $54.7 million,
compared to a net loss of $19.8 million or $1.58 per diluted share, on
revenues of $45.7 million for the six months ended June 30, 2012.

For the second quarter ended June 30, 2013, the Company closed on 82 homes, a
39% increase from the 59 homes closed during the second quarter of 2012.
During the six months ended June 30, 2013, the Company reported 163 home
closings, a 34% increase from the 122 homes closed during the first six months
of 2012. The dollar volume of the closings reported in the second quarter of
2013 increased 50% to $20.1 million, compared to a dollar volume of $13.4
million during the second quarter of 2012.For the six months ended June 30,
2013, the dollar volume of closings increased to $40.3 million, a 43% increase
as compared to the same period in 2012.

The number of housing contracts signed, net of cancellations, during the three
months ended June 30, 2013 increased 18% to 119 units, compared to 101 units
during the same period in 2012.The dollar value of the contracts signed
during the first quarter increased 18% to $29.1 million, compared to $24.6
million during the same period one year ago.For the six-month period ended
June 30, 2013 the Company reported 254 contracts, net of cancellations, a 23%
increase over the six months ended June 30, 2012.The dollar value of the
contracts signed during the first six months of 2013 increased 22% to $58.5
million as compared to $47.8 million in the same period of 2012.

The backlog of homes under contract but not yet closed at June 30, 2013
increased 51% to 276 units, representing a dollar volume of $63.2 million,
compared to 183 units with a dollar volume of $41.3 million at June 30, 2012.

The overall average unit price per closing rose 7% from $228,000 in the second
quarter of 2012 to $245,000 in the second quarter of 2013.For the six-month
period ended June 30, 2013, the average unit price per closing was $247,000, a
7% increase from $230,000 as reported for the same period one year ago.

During the three months ended June 30, 2013, the Company reported $6.6 million
in revenue from the sale of commercial, industrial and other lands, which
generated $2.2 million in net income to the Company compared to $3.0 million
in revenue and $1.6 million in net income during the second quarter of
2012.For the six month period ended June 30, 2013, the Company reported
revenue from the sale of commercial, industrial and other lands of $8.9
million, generating $3.6 million in net income.

President and Chief Executive Officer Roger A. Cregg said the Company
continues to show sequential and comparable period improvements as a result of
the strengthening housing market and reductions in operating costs."As
mentioned last quarter, we continue to focus on driving margin improvement
while growing our business.We are seeing increased activity in both of our
homebuilding segments and across both of our primary markets, Florida and
Arizona, in the form of traffic and new contracts," Cregg said."We are
benefitting from our inventory of lots and land in Central Florida and are
being opportunistic with our long term land positions there by moving up
development schedules to bring new stores to market sooner," Cregg added.

Mr. Cregg went on to discuss the new opportunities provided by its recent
equity infusion by an affiliate of TPG Capital."We are now in a position to
more quickly capitalize on new land opportunities including finished lot
positions in both of our current markets to accelerate our revenue growth
ahead of bringing our new raw land positions on line.In addition, it will
allow us to fill our pipeline with other potential land acquisitions including
our own previously undeveloped properties that will help increase sales
volumes and our return to profitability."

The Company will hold a conference call and webcast on Thursday, August 8,
2013 to discuss its second 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 August 8, 2013 at 11:30 am and can be accessed by
dialing (855) 859-2056 or for international callers by dialing (404) 537-3406;
the conference ID is 27926714. The replay will be available until August 15,
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 builds
communities that serve active adults 55+ and people of all ages.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, our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013 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)
                                                           
                                              June 30, 2013 December 31, 2012
Assets                                         (unaudited)   
Cash and cash equivalents                      $ 196,399     $ 79,815
Restricted cash                                4,725         4,682
Land and other inventories                     188,086       171,044
Receivables, net                               6,813         6,730
Income tax receivable                          1,293         1,293
Property and equipment, net                    36,059        36,661
Investments in and notes receivable from       1,237         1,220
unconsolidated entities
Prepaid expenses and other assets              10,405        10,777
Assets held for sale                           16,483        25,649
Total Assets                                   $ 461,500     $ 337,871
Liabilities and Equity                                      
Liabilities                                                 
Accounts payable                               $ 4,908       $ 4,656
Accrued and other liabilities                  14,150        12,978
Customer deposits and deferred revenues        3,653         1,985
Estimated development liability for sold land  32,945        32,974
Notes payable                                  105,402       105,402
Total Liabilities                              161,058       157,995
                                                           
Contingent convertible cumulative redeemable   93,206        —
preferred stock
                                                           
Equity                                                      
Common Stock, par value $1 per share                        
Authorized:50,000,000 shares                               
Issued:15,454,140 shares at June 30, 2013                  
12,938,157 shares at December 31, 2012         15,454        12,938
Additional paid-in capital, Common             296,233       262,363
Retained (deficit) earnings                    (115,537)     (106,110)
                                              196,150       169,191
Treasury stock: at cost, 110,874 shares at     (3,019)       (3,019)
June 30, 2013 andDecember 31, 2012
Total AV Homes stockholders' equity            193,131       166,172
Non-controlling interest                       14,105        13,704
Total Equity                                   207,236       179,876
Total Liabilities and Equity                   $ 461,500     $ 337,871


AV HOMES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the six and three months ended June 30, 2013 and 2012
(unaudited)
(Dollars in thousands except per share amounts)
                                                                
                                    Six Months           Three Months
                                    2013      2012       2013      2012
Revenues                                                         
Real estate revenues                                             
Homebuilding                         $ 45,253  $ 32,972   $ 22,705  $ 15,534
Commercial and industrial and other  8,882     12,057     6,577     2,999
land sales
Other real estate                    438       210        181       66
Total real estate revenues           54,573    45,239     29,463    18,599
Interest income                      34        63         25        32
Other                                68        374        68        335
Total revenues                       54,675    45,676     29,556    18,966
Expenses                                                         
Real estate expenses                                             
Homebuilding                         45,790    38,706     23,025    18,825
Commercial and industrial and other  5,257     7,344      4,392     1,377
land sales
Other real estate                    1,399     3,305      692       1,251
Total real estate expenses           52,446    49,355     28,109    21,453
Impairment charges                   45        3,580      45        3,428
General and administrative expenses  7,997     6,663      4,292     3,357
Interest expense                     3,536     4,353      1,763     2,116
Total expenses                       64,024    63,951     34,209    30,354
Loss from unconsolidated entities    (78)      (79)       (15)      (43)
Loss before income taxes             (9,427)   (18,354)   (4,668)   (11,431)
Income tax (expense) benefit         —         —          —         —
Net loss and comprehensive loss      (9,427)   (18,354)   (4,668)   (11,431)
Net income (loss) attributable to
non-controlling interests in         —         1,442      —         (86)
consolidated entities
Net loss and comprehensive loss
attributable to AV Homes             $ (9,427) $ (19,796) $ (4,668) $ (11,345)
stockholders
Basic and Diluted Loss Per Share     $ (0.74)  $ (1.58)   $ (0.36)  $ (0.91)
                                                                

RESULTS OF OPERATIONS

The following table provides a comparison of certain financial data related to
our operations for the six and three months ended June30, 2013 and 2012:

                                    Six Months           Three Months
                                    2013      2012       2013      2012
Operating income (loss):                                         
Active adult communities                                         
Revenues                                                         
Homebuilding                         $ 18,606  $ 16,340   $ 8,385   $ 8,307
Amenity                              3,556     3,556      1,771     1,784
Expenses                                                         
Homebuilding                         15,946    14,726     7,243     7,658
Homebuilding Selling, General and    4,542     6,601      2,413     3,070
Administrative
Amenity                              4,107     3,827      2,054     1,974
Segment operating loss               (2,433)   (5,258)    (1,554)   (2,611)
                                                                
Primary residential                                              
Revenues                                                         
Homebuilding                         21,672    11,861     11,739    4,828
Amenity                              1,419     1,215      810       615
Expenses                                                         
Homebuilding                         17,718    10,837     9,545     4,670
Homebuilding Selling, General and    2,135     2,280      1,066     1,533
Administrative
Amenity                              1,387     1,168      749       653
Segment operating income (loss)      1,851     (1,209)    1,189     (1,413)
                                                                
Commercial and industrial and other                              
land sales
Revenues                             8,882     12,057     6,577     2,999
Expenses                             5,257     7,344      4,392     1,377
Segment operating income             3,625     4,713      2,185     1,622
                                                                
Other operations                                                 
Revenues                             438       210        181       66
Expenses                             184       143        115       48
Segment operating income             254       67         66        18
                                                                
Operating income (loss)              3,297     (1,687)    1,886     (2,384)
                                                                
Unallocated income (expenses):                                   
Interest income                      34        63         25        32
Equity loss from unconsolidated      —         (79)       (15)      (43)
entities
Net (gain)/loss attributable to      (78)      (1,442)    —         86
non-controlling interests
Corporate general and administrative (7,997)   (6,663)    (4,292)   (3,357)
expenses
Interest expense                     (3,536)   (4,353)    (1,763)   (2,116)
Other real estate expenses, net      (1,147)   (2,788)    (509)     (716)
Impairment of land developed or held —         (2,847)    —         (2,847)
for future development
Loss before income taxes             (9,427)   (19,796)   (4,668)   (11,345)
Income tax benefit                   —         —          —         —
Net loss attributable to AV Homes    $ (9,427) $ (19,796) $ (4,668) $ (11,345)
                                                                

Data from closings for the active adult and primary residential homebuilding
segments for the six and three months ended June30, 2013 and 2012 is
summarized as follows:

                                                       Average
For the six months ended June 30,   Number of          Price Per
                                    Units     Revenues Unit
2013                                                 
Active adult communities            73        $ 18,606 $ 255
Primary residential                 90        21,672   $ 241
Total                               163       $ 40,278 $ 247
2012                                                 
Active adult communities            66        $ 16,290 $ 247
Primary residential                 56        11,823   $ 211
Total                               122       $ 28,113 $ 230
                                                    
                                                       Average
For the three months ended June 30, Number of          Price Per
                                    Units     Revenues Unit
2013                                                 
Active adult communities            34        $ 8,385  $ 247
Primary residential                 48        11,739   $ 245
Total                               82        $ 20,124 $ 245
2012                                                 
Active adult communities            34        $ 8,307  $ 244
Primary residential                 25        5,126    $ 205
Total                               59        $ 13,433 $ 228
                                                    

Data from contracts signed for the active adult and primary residential
homebuilding segments for the six and three months ended June30, 2013 and
2012 is summarized as follows:

                   Gross                      Contracts
For the six months Number                     Signed,                Average
ended June 30,     of Contracts               Net of        Dollar   Price Per
                   Signed       Cancellations Cancellations Value    Unit
2013                                                             
Active adult       199          (25)          174           $ 39,531 $ 227
communities
Primary            124          (44)          80            19,001   $ 238
residential
Total              323          (69)          254           $ 58,532 $ 230
                                                                
2012                                                             
Active adult       121          (37)          84            $ 20,907 $ 249
communities
Primary            147          (24)          123           26,892   $ 219
residential
Total              268          (61)          207           $ 47,799 $ 231
                                                                
For the three
months ended June                                                
30,
2013                                                             
Active adult       102          (12)          90            $ 20,493 $ 228
communities
Primary            52           (23)          29            8,648    $ 298
residential
Total              154          (35)          119           $ 29,141 $ 245
                                                                
2012                                                             
Active adult       55           (13)          42            $ 10,371 $ 247
communities
Primary            72           (13)          59            14,224   $ 241
residential
Total              127          (26)          101           $ 24,595 $ 244
                                                                

Backlog for the active adult and primary residential homebuilding segments as
of June 30, 2013 and 2012 is summarized as follows:

                                            Average
As of June 30,           Number of Dollar   Price
                         Units    Volume   Per Unit
2013                                      
Active adult communities 164       $ 38,404 $ 234
Primary residential      112       24,765   $ 221
Total                    276       $ 63,169 $ 229
2012                                      
Active adult communities 63        $ 16,336 $ 259
Primary residential      120       24,918   $ 208
Total                    183       $ 41,254 $ 225

CONTACT: Media Contact: Dave M. Gomez
         d.gomez@avhomesinc.com
         480.214.7000

AV Homes, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.