Exhibit 99.1
Avatar Holdings Reports Third Quarter Results
CORAL GABLES, Fla., Nov. 5 /PRNewswire-FirstCall/ -- Avatar Holdings Inc.
(Nasdaq: AVTR) today reported net income of $22,361,000 ($2.55 per share,
diluted) on revenues of $240,832,000 for the nine months ended September 30,
2004, compared to net income of $10,779,000 ($1.25 per share, diluted) on
revenues of $165,094,000 for the nine months ended September 30, 2003.
For the three months ended September 30, 2004, Avatar reported net income of
$4,206,000 ($0.50 per share, diluted) on revenues of $74,271,000, compared to
net income of $9,034,000 ($1.03 per share, diluted) on revenues of $57,618,000
for the same period in 2003.
Income tax expense for the nine and three months ended September 30, 2004,
was $10,313,000 and $2,700,000, compared to tax benefits of $8,284,000 and
$9,315,000 for the comparable periods in 2003.
Net income for the nine and three months ended September 30, 2004, includes
income of $3,939,000 and $3,000 from discontinued operations, compared to losses
of $114,000 and $54,000 for the comparable periods in 2003.
Results for the nine months and three months ended September 30, 2004
include expenses of approximately $3,200,000 for damage caused by Hurricanes
Charley, Frances and Jeanne in Avatar's Central Florida communities in Polk and
Osceola Counties.
Avatar estimates that due to the hurricanes, closings in excess of 100 homes
scheduled for 2004 will be delayed until the first quarter of 2005 and
commencement of construction of in excess of 100 homes scheduled for 2004 will
be delayed until future periods.
PRIMARY AND ACTIVE ADULT HOMEBUILDING DATA
Nine Months Ended September 30
Closings 2004 2003 2002
Number of Units 1,039 790 685
Aggregate Dollar Volume $221,392,000 $147,916,000 $114,268,000
Average Price Per Unit $213,000 $187,000 $167,000
Contracts Signed, net of
cancellations
Number of Units 1,653 1,418 903
Aggregate Dollar Volume $400,650,000 $277,400,000 $163,551,000
Average Price Per Unit $242,000 $196,000 $181,000
Backlog
Number of Units 1,992 1,441 756
Aggregate Dollar Volume $471,024,000 $295,870,000 $157,013,000
Average Price Per Unit $236,000 $205,000 $208,000
The foregoing chart does not reflect sales at Ocean Palms, a 38-story,
240-unit high-rise condominium under construction in Hollywood, Florida, in
which Avatar owns a 50% equity interest.
At Solivita, Avatar's Central Florida active adult community, for the nine
months ended September 30, 2004, 575 units, totaling $121,062,000, were sold,
compared to 408 units, totaling $83,623,000, for the nine months ended September
30, 2003.
At Bellalago, for the nine months ended September 30, 2004, 267 units,
totaling $87,875,000, were sold, compared to 231 units, totaling $51,346,000,
for the nine months ended September 30, 2003.
At Cory Lake Isles in Tampa, Florida, where sales commenced in the third
quarter of 2003, 145 units, totaling $52,103,000, were sold for the nine months
ended September 30, 2004.
At Harbor Islands, the backlog at September 30, 2004 was 21 units, totaling
$37,826,000. Two units remain for sale, and it is anticipated that closings of
all units at Harbor Islands will be completed by mid-2005.
Since commencement of sales in 2003, through September 30, 2004, the Ocean
Palms joint venture has sold 225 of the 240 units at an aggregate sales volume
of $187,130,000. Results of operations include recognition under the percentage
completion method of accounting for Avatar's equity interest in Ocean Palms.
Avatar's proportionate share of pre-tax profits was $9,537,000 and $3,553,000
for the nine months and three months ended September 30, 2004, compared to
losses of $788,000 and $189,000 for the nine months and three months ended
September 30, 2003.
Avatar Holdings Inc. is primarily engaged in real estate operations in
Florida and Arizona. Its principal real estate operations are conducted at
Poinciana, Solivita and Bellalago in central Florida near Orlando, Harbor
Islands on Florida's east coast, Cory Lake Isles in Tampa, Florida, and at Rio
Rico, south of Tucson, Arizona. Avatar's common shares trade on The Nasdaq Stock
Market under the symbol AVTR.
Certain statements discussed herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors that could cause the actual results, performance or
achievements of results to differ materially from any future results,
performance or achievements expressed or implied by such forward- looking
statements. Such risks, uncertainties and other important factors include, among
others: the successful implementation of Avatar's business strategy; shifts in
demographic trends affecting demand for active adult communities and other real
estate development; the level of immigration and in-migration into areas in
which Avatar conducts real estate activities; international (in particular Latin
America), national and local economic conditions and events, including
employment levels, interest rates, consumer confidence, the availability of
mortgage financing and demand for new and existing housing; access to future
financing; geopolitical risks; competition; changes in, or the failure or
inability to comply with, government regulations; adverse weather conditions and
natural disasters; and other factors as are described in greater detail in
Avatar's filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended December 31, 2003.
SELECTED FINANCIAL DATA FOR THE NINE MONTHS AND THREE MONTHS
ENDED SEPTEMBER 30, 2004 AND 2003
(Unaudited - Dollars in thousands except per share data)
Nine Months Three Months
2004 2003 2004 2003
Revenues $240,832 $165,094 $74,271 $57,618
Equity earnings (loss) from
unconsolidated joint venture $9,537 ($788) $3,553 ($189)
Income (loss) from continuing
operations before income
taxes $28,735 $2,609 $6,903 ($227)
Income tax (expense) benefit ($10,313) $8,284 ($2,700) $9,315
Income from continuing
operations $18,422 $10,893 $4,203 $9,088
Net income (loss) from
discontinued operations $3,939 ($114) $3 ($54)
Net income $22,361 $10,779 $4,206 $9,034
Basic EPS:
Income from continuing
operations $2.14 $1.27 $0.51 $1.05
Income (loss) from
discontinued operations $0.46 ($0.01) $-- $--
Net income $2.60 $1.26 $0.51 $1.05
Diluted EPS:
Income from continuing
operations $2.10 $1.26 $0.50 $1.04
Income (loss) from
discontinued operations $0.45 ($0.01) $-- ($0.01)
Net income $2.55 $1.25 $0.50 $1.03
Selected Balance Sheet Data
September 30, 2004 December 31, 2003
Cash and cash equivalents $ 59,906 $ 24,600
Total assets $ 474,525 $ 362,719
Total stockholders' equity $ 239,297 $ 265,899
Book value per share $ 29.62 $ 28.32
Shares outstanding 8,079,140 9,389,772
SOURCE Avatar Holdings Inc.
-0- 11/05/2004
/CONTACT: Juanita I. Kerrigan of Avatar Holdings Inc., +1-305-442-7000/
/Web site: http://www.avatarhomes.com /
(AVTR)
CO: Avatar Holdings Inc.
ST: Florida
IN: CST RLT
SU: ERN