Monday, November 12, 2007 - 2:40 PM EST
Avatar profits dwindle in 3Q
Originally posted by: Orlando Business Journal
Avatar Holdings Inc. reported a drastic decline in earnings with profits down almost 90 percent during the third quarter.
The Coral Gables-based real estate company posted net income of $3 million, or 35 cents per diluted share, on revenues of $57.5 million for the quarter ending Sept. 30. By comparison, Avatar recorded profits of $22.9 million, or $2.21 per diluted share, on revenues of $158.3 million in the third quarter 2006.
Avatar is the development company behind the Poinciana, Solivita and Bellalago residential communities in Osceola County.
For the first three quarters of 2007, Avatar reports net income of $19.5 million, or $1.98 per diluted share, on revenues of $231.2 million. That’s a decrease of 74 percent from net income of $74.7 million, or $7.22 per diluted share, on revenues of $484.2 for the same period in 2006.
During the third quarter, Avatar closed on 151 homes, a 68 percent decrease from the 477 homes closed during the same period in 2006. Dollar volume for the quarter decreased by 72 percent to $40.3 million compared to $145.8 million in 2006.
For the first three quarters of 2007, Avatar closed on 603 homes, a 58 percent decrease from the 1,449 homes closed during the first nine months of 2006. Dollar volume decreased by 55 percent to $190 million compared to $419 million for the same time period in 2006.
Avatar officials say the company’s markets have seen significant deterioration because of tightening of mortgage underwriting standards, the availability of significant discounts and incentives and the difficulty of potential purchasers in selling their existing homes at prices they are willing to accept. The company expects the market to remain down for the remainder of 2007 and for 2008. However, officials expect the company will be profitable for 2007.
In addition to its Central Florida holdings, Avatar operates Cory Lake Isles in Tampa and at Rio Rico, south of Tucson, Ariz.
Filed under: Blogroll, News, Osceola County, Polk County
Gee for once I don’t feel bad that some one is losing money. They are greedy people. Let them make more roads etc in and out of Poinciana before they put up more house. You know none of these folks live in Poinciana. Some one is getting paid off for the stupid things Avatar continues to do. Repeat after me: They are as smart as a box of rocks
@ Crystal - I’m not that familiar with the Poinciana real estate scene. What makes Avatar a box of rocks?
i bought in village 7 and am the furthest away from anything… in poinciana or any kind of civilisation. i absolutely love living there and i have optimistic hopes for the future of poinciana (it realy is the end of the world at the moment) so i find it strange that some people are so negative about avatar, who at the end of the day are building the area out of nothing and are giving lots of people jobs in the area. the service they have provided me is “a+” without fail. so even if you are unhappy with the corporation, i dread the effects corporate losses will have on my neighbours who work for avatar and the effects it will have on their children who go to school with mine
@ Allan: Why would Avatar keep building houses and not roads? Also did any one down here ever hear of saving a little bit of land? Why does every square inch of Poinciana need to have some type of builing structure on it? In repley to my rock comment, can you tell me how smart a box of rocks really are?
ras tintin, we are thinking of building on our lot in Village 7. Is it really still out in the middle of nowhere? We haven’t been down to look at the property in several years. But now that water and sewer is available….. Or should we be looking elsewhere?