FORT LAUDERDALE, FL-The locally based homebuilder has issued preliminary results for the opening quarter of this year. Based on the "level of operating activity" plus increased expenses, "the company expects it will incur a loss for the first quarter of 2006," according to the statement. More complete financial results for the quarter will be released later this month.
News of the company's continuing slide caused shares of LEV stock on the NYSE to fall to a 52-week low of $17.83 a share at the open of trading on May 1. By mid-morning, however, the share price had moved up to $19.50 a share. This is in sharp contrast to the 52-week high of $33.20 a share, which occurred on July 25, 2005.
According to the statement, first-quarter revenue for the homebuilding division was $118.3 million on delivery of 439 homes. Revenue for the land division in the same timeframe was $7.3 million from the sale of 56 acres with finished lots. This compares with the divisions' combined revenues of $124.5 million for fourth-quarter 2005, and that represented a drop of 31% from fourth-quarter 2004.
In addition to the disappointing level of activity in the homebuilding and land divisions, the statement also cites "an increase in total consolidated selling, general and administrative expenses" for first quarter. The margin on homes delivered during the quarter was $18.4% and the margin on the sale of land was 31%.
In a succession of 2005 conference calls, Alan B. Levan, chairman and CEO, characterized that year as a "year of transition." Saying the company was developing a national platform, during the fourth-quarter call, he described the platform as "capable of delivering homes three to four times current levels in the next five years." A call to Levitt was not returned by deadline.
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