Forestar Group Inc. (NYSE: FOR) on Friday reported net income for its first quarter of fiscal 2020 ended Dec. 31, 2019 increased 412% to $16.9 million, or $0.35 per diluted share, compared to $3.3 million, or $0.08 per diluted share in the same quarter of fiscal 2019.
Revenues for the first quarter of fiscal 2020 increased 542% to $247.2 million from $38.5 million in the same quarter of fiscal 2019. Residential lots sold in the quarter increased 368% to 2,422 lots compared to 518 lots in the same quarter of fiscal 2019.
The company’s lot position at December 31, 2019 consisted of 44,500 lots, of which 32,200 were owned and 12,300 were controlled through purchase contracts. Of the company’s owned lot position, 25,600 lots, or 80%, were under contract to sell or subject to a right of first offer to D.R. Horton, Inc. at December 31, 2019.
The company ended the first quarter with $373.3 million of unrestricted cash, $351.3 million of available borrowing capacity on its unsecured revolving credit facility and a net debt to total capital ratio of 9.7%.
Donald J. Tomnitz, chairman of the board, said, “Forestar is a highly differentiated, national residential lot manufacturer operating in over 50 markets across the United States. Our team delivered a solid first quarter and made significant progress toward executing on our plans for fiscal 2020. Our strategic relationship with D.R. Horton, the nation’s largest home builder, continues to support the rapid expansion of our operating platform and de-risks our significant growth expectations. Forestar’s returns-focused business model is centered on our high turnover, lower risk lot manufacturing strategy, and we are well-positioned to consolidate market share in the under-served lot development market that lacks well-capitalized and national participants. We are excited about the opportunities ahead and continue to expect to deliver 10,000 lots during fiscal 2020 and 12,000 lots in fiscal 2021.”
