GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

FORESTAR RE GROUP Reports Operating Results (10-Q)

May 07, 2009 | About:

FORESTAR RE GROUP (FOR) filed Quarterly Report for the period ended 2009-03-31.

Forestar Group Inc. formerly known as Forestar Real Estate Group Inc. operates in two business segments: real estate and natural resources. The real estate segment owns directly or through ventures real estate. The natural resources segment manages acres of oil and gas mineral interests. In addition the company also sells wood fiber from its land primarily located in Georgia and leases land for recreational uses. FORESTAR RE GROUP has a market cap of $432.4 million; its shares were traded at around $12.06 with a P/E ratio of 36.5 and P/S ratio of 2.8.

Highlight of Business Operations:

In first quarter 2009, we have reclassified to assets held for sale about 171,000 acres of undeveloped land principally located in Alabama and Georgia with a carrying value of $51,390,000 and related timber with a carrying value of $24,749,000. These assets are being actively marketed.

Net loss was $(3,892,000) or $(0.11) per basic and diluted share, in first three months 2009, compared with $(238,000), or $(0.01) per basic and diluted share, in first three months 2008.

In first three months 2009, operating expenses principally consist of $2,826,000 in property taxes, $1,802,000 in employee compensation and benefits, $650,000 related to legal reserves for probable losses, $639,000 in professional services, $528,000 in depreciation expense and $191,000 related to marketing and advertising. In first three months 2008, operating expenses principally consist of $2,733,000 in property taxes, $1,967,000 in employee compensation and benefits, $944,000 in professional services, $459,000 in depreciation expense and $416,000 related to marketing and advertising.

In first three months 2009, we sold 2,192 acres of undeveloped land from our owned and consolidated ventures at an average price of $3,789 per acre, generating $8,304,000 in revenue. In first three months 2008, we sold 1,349 acres from our owned and consolidated ventures at an average price of $4,639 per acre, generating $6,257,000 in revenue.

In first three months 2009, operating expenses principally consist of $443,000 in employee compensation and benefits, $268,000 related to oil and gas production severance taxes, $188,000 in professional services and $66,000 in property taxes. Cost of sales represents our share of costs related to our non-operating working interests. In first three months 2008, operating expenses principally consist of $343,000 in professional services as we resourced our operations with a contract workforce while recruiting our mineral resources team.

Read the The complete ReportFOR is in the portfolios of John Keeley of Keeley Fund Management, Carl Icahn of Icahn Capital Management LP.

Rating: 1.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide