Avatar Holdings Inc. (AVTR, Financial) filed Quarterly Report for the period ended 2012-06-30.
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Revenues from active adult operations increased $2,623 or 15.2% and $624 or 6.6% for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011. Expenses from active adult operations increased $2,431 or 10.7% and $123 or 1.0%, respectively, for the six and three months ended June 30, 2012 compared to the same periods in 2011. The increase in revenues for the six and three months ended June 30, 2012 as compared to the same periods last year is primarily attributable to increased closings and a change in mix of homes closed, offset in part by reduced revenues from amenities in 2012 due to the outsourcing of our golf and food and beverage operations at Solivita. The increase in expenses for the six and three months ended June 30, 2012 is attributable to increased closings and a change in the mix of homes closed, specifically at CantaMia, offset in part by reduced expenses from amenities due to the outsourcing of operations at Solivita. During the six and three months ended June 30, 2012, we recorded impairment charges in our active adult operations of approximately $718 and $566 compared to approximately $990 and $700 for the six and three months ended June 30, 2011 from homes completed or under construction. The average sales price on closings from active adult homebuilding operations during the six and three months ended June 30, 2012 was $247 and $244, respectively, compared to $219 and $228, respectively, during the same period in 2011.
Revenues from primary residential operations increased $6,138 or 88.5% and $2,160 or 65.8% for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011. Expenses from primary residential operations increased $5,133 or 56.1% and $2,594 or 60.9% for the six and three months ended June 30, 2012 compared to the same period in 2011. The increase in revenues is primarily attributable to increased closings offset in part by a reduction in the average price per unit closed in the six and three months ended June 30, 2012 as compared to the same periods in 2011. The increase in expenses is attributable to increased closings and a change in mix of homes closed in the six and three months ended June 30, 2012 as compared to the six and three months ended June 30, 2011. During the six and three months ended June 30, 2012, we recorded impairment charges in our primary residential operations of approximately $15 and $15 compared to approximately $7 and $0 for the six and three months ended June 30, 2011 from homes completed or under construction. The average sales price on closings from primary residential homebuilding operations for the six and three months ended June 30, 2012 was $211 and $205 compared to $239 and $206 for the same periods in 2011.
Revenues from other operations decreased $492 or 70.1% and $325 or 83.1%, for the six and three months ended June 30, 2012 compared to the same periods in 2011. Expenses from other operations decreased $446 or 75.7%, and $273 or 85.0% for the six and three months ended June 30, 2012 compared to the same periods in 2011. The decrease in revenues and expenses are primarily attributable to the sale of our title operations in July of 2011 and reduced leasing activities in the first six months of 2012 as compared to the same period in 2011.
For the six months ended June 30, 2011, net cash used in operating activities amounted to $3,546, primarily as a result of proceeds of $3,248 from earnings and notes receivable from unconsolidated entities and $6,794 to fund operating losses. Net cash used in investing activities amounted to $35 from investments in property and equipment. Net cash provided by financing activities of $34,115 was attributable to proceeds of $100,000 from issuance of the 7.50% Notes partially offset by $4,627 for issuance costs related to the 7.50% Notes, repurchase of $59,402 principal amount of the 4.50% Notes and $1,856 used for the repayment of real estate borrowings.
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Highlight of Business Operations:
The number of net housing contracts signed during the six months ended June 30, 2012 compared to the same period in 2011 increased 118%. The dollar value of housing contracts signed increased 113%. Although the volume of housing contracts signed for the three months ended June 30, 2012 continue to reflect a weak market for new residences in the geographic areas where our communities are located, the increase in sales over the same period in 2011 indicates improved market conditions during the past twelve months. Our communities are located in areas of Florida and Arizona where there is an excess of units for sale, including foreclosures and houses being sold by lenders, and continued use of various sales incentives by residential builders in our markets, including AV Homes. During the six and three months ended June 30, 2012, cancellations of previously signed contracts totaled 61 and 26 compared to 19 and 10 during the six and three months ended June 30, 2011. As a percentage of the gross number of contracts signed, this represents 23% and 20% for the six and three months ended June 30, 2012, respectively. As a percentage of the gross number of contract signed, this represents 17% and 19% for the six and three months ended June 30, 2011, respectively.Revenues from active adult operations increased $2,623 or 15.2% and $624 or 6.6% for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011. Expenses from active adult operations increased $2,431 or 10.7% and $123 or 1.0%, respectively, for the six and three months ended June 30, 2012 compared to the same periods in 2011. The increase in revenues for the six and three months ended June 30, 2012 as compared to the same periods last year is primarily attributable to increased closings and a change in mix of homes closed, offset in part by reduced revenues from amenities in 2012 due to the outsourcing of our golf and food and beverage operations at Solivita. The increase in expenses for the six and three months ended June 30, 2012 is attributable to increased closings and a change in the mix of homes closed, specifically at CantaMia, offset in part by reduced expenses from amenities due to the outsourcing of operations at Solivita. During the six and three months ended June 30, 2012, we recorded impairment charges in our active adult operations of approximately $718 and $566 compared to approximately $990 and $700 for the six and three months ended June 30, 2011 from homes completed or under construction. The average sales price on closings from active adult homebuilding operations during the six and three months ended June 30, 2012 was $247 and $244, respectively, compared to $219 and $228, respectively, during the same period in 2011.
Revenues from primary residential operations increased $6,138 or 88.5% and $2,160 or 65.8% for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011. Expenses from primary residential operations increased $5,133 or 56.1% and $2,594 or 60.9% for the six and three months ended June 30, 2012 compared to the same period in 2011. The increase in revenues is primarily attributable to increased closings offset in part by a reduction in the average price per unit closed in the six and three months ended June 30, 2012 as compared to the same periods in 2011. The increase in expenses is attributable to increased closings and a change in mix of homes closed in the six and three months ended June 30, 2012 as compared to the six and three months ended June 30, 2011. During the six and three months ended June 30, 2012, we recorded impairment charges in our primary residential operations of approximately $15 and $15 compared to approximately $7 and $0 for the six and three months ended June 30, 2011 from homes completed or under construction. The average sales price on closings from primary residential homebuilding operations for the six and three months ended June 30, 2012 was $211 and $205 compared to $239 and $206 for the same periods in 2011.
Revenues from other operations decreased $492 or 70.1% and $325 or 83.1%, for the six and three months ended June 30, 2012 compared to the same periods in 2011. Expenses from other operations decreased $446 or 75.7%, and $273 or 85.0% for the six and three months ended June 30, 2012 compared to the same periods in 2011. The decrease in revenues and expenses are primarily attributable to the sale of our title operations in July of 2011 and reduced leasing activities in the first six months of 2012 as compared to the same period in 2011.
For the six months ended June 30, 2011, net cash used in operating activities amounted to $3,546, primarily as a result of proceeds of $3,248 from earnings and notes receivable from unconsolidated entities and $6,794 to fund operating losses. Net cash used in investing activities amounted to $35 from investments in property and equipment. Net cash provided by financing activities of $34,115 was attributable to proceeds of $100,000 from issuance of the 7.50% Notes partially offset by $4,627 for issuance costs related to the 7.50% Notes, repurchase of $59,402 principal amount of the 4.50% Notes and $1,856 used for the repayment of real estate borrowings.
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