FORT LAUDERDALE, FL-After delaying its earnings report twice, locally based Levitt Corp. reported precipitous slides in both revenue and net income for fourth-quarter 2005, a mere 1% increase in full-year revenue and a 4% decrease in full-year net income. The delays in reporting were attributed to a required restatement of financials for Bluegreen Corp. of which Levitt has 30% ownership.
A 41% decline in home deliveries in fourth-quarter 2005 was the principal culprit of revenue declines for the quarter, chairman and CEO Alan B. Levan said during a conference call. The company delivered 401 homes during the most recent quarter, compared with 675 during the same quarter a year ago. As a result, fourth-quarter 2005 revenues were $124.5 million, down 30% from $177 million in the same quarter the year before, and net income was $8.3 million, down 51% from $17 million in the final quarter of 2004.
During full-year 2005, the company delivered 1,789 homes, down 16% from the previous year. Yet, total revenue for the year was $561.9 million, 1% above $554.5 million for 2004. Net income in 2005 was $54.9 million, a 4% drop from $57.4 million the year before.
On the plus side, new orders for 490 homes were placed during the fourth quarter of 2005, a 56% increase compared with the same quarter of 2004. And the aggregate value of the fourth-quarter '05 new orders represents $165.1 million, a 116% increase compared with $76.6 million in the previous fourth quarter.
As he has in past earnings calls this year, Levan continued to describe 2005 as a "year of transition," as Levitt develops a national platform. During this conference call, he characterized that platform as "capable of delivering homes three to four times current levels in the next five years."
The company is increasing its emphasis on the active adult market segment. "We believe our active adult communities position the company favorably in a rising interest-rate environment," Levan said, "as many of our active adult customers have a higher level of liquidity and are less dependent on mortgage financing." He called aging baby boomers "the single largest market opportunity for homebuilders."
At the close of trading on March 23, the day of the conference call, LEV stock traded at $21.03 a share on the NYSE, down 4% for the day. Over the past 52 weeks, share prices have ranged from $18.86 a share to $33.20 a share.
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