AV Homes (AVHI) has reported 115.53 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $11.90 million, or $0.49 a share in the quarter, compared with $5.52 million, or $0.25 a share for the same period last year.
Revenue during the quarter surged 33.54 percent to $205.43 million from $153.83 million in the previous year period.
Cost of revenue surged 35.68 percent or $43.99 million during the quarter to $167.31 million. Gross margin for the quarter contracted 128 basis points over the previous year period to 18.56 percent.
Total expenses were $192.79 million for the quarter, up 31.60 percent or $46.29 million from year-ago period. Operating margin for the quarter expanded 139 basis points over the previous year period to 6.15 percent.
Operating income for the quarter was $12.64 million, compared with $7.32 million in the previous year period.
Revenue from real estate activities during the quarter surged 33.54 percent or $51.60 million to $205.43 million.
"We had another very good quarter highlighted by strong increases in revenue and a 116% increase in net income," said Roger A. Cregg, president and chief executive officer. "Homes delivered in the third quarter increased 23% over the prior year period and revenue improved by 34%. Our gross margins improved 80 basis points sequentially compared to the second quarter, and we improved our overhead leverage by 270 basis points compared to the third quarter of last year. With our year to date results and a backlog sales value for the quarter of $347 million, we are confident in achieving our improved 2016 financial outlook."
Real estate inventory stood at $630.91 million as on Sep. 30, 2016. Net receivables were at $8.25 million as on Sep. 30, 2016, up 7.65 percent or $0.59 million from year-ago. Accounts payable declined 3.83 percent or $1.47 million to $37.06 million on Sep. 30, 2016.
Total assets grew 10.40 percent or $78.66 million to $834.80 million on Sep. 30, 2016. On the other hand, total liabilities were at $401.19 million as on Sep. 30, 2016, down 14.84 percent or $69.89 million from year-ago.
Return on assets moved up 54 basis points to 1.51 percent in the quarter. At the same time, return on equity moved up 81 basis points to 2.74 percent in the quarter.
Debt comes downTotal debt was at $290.26 million as on Sep. 30, 2016, down 18.63 percent or $66.46 million from year-ago. Shareholders equity stood at $433.62 million as on Sep. 30, 2016, up 52.11 percent or $148.55 million from year-ago. As a result, debt to equity ratio went down 58 basis points to 0.67 percent in the quarter.
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