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Jun 30, 2020
Forestar Q3 2020 Earnings Report
Reported earnings of $0.21 per diluted share for the third quarter of fiscal year 2020.
Key Takeaways
Forestar Group Inc. reported a strong third quarter with a 102% increase in revenues to $177.9 million and a 46% increase in net income to $10.1 million, driven by a 75% increase in residential lots sold.
Net income attributable to Forestar increased 46% to $10.1 million, or $0.21 per diluted share.
Revenues increased 102% to $177.9 million.
Residential lots sold increased 75% to 2,023 lots.
The company ended the quarter with $355.6 million of unrestricted cash and $704.0 million in total liquidity.
Forestar
Forestar
Forward Guidance
Forestar is well positioned to consolidate market share and operate effectively due to its low net leverage, strong liquidity, low overhead model, and strategic relationship with D.R. Horton. However, the company remains cautious about the potential impact of COVID-19 on its operations and the overall economy.
Positive Outlook
- Forestar remains uniquely positioned to consolidate market share.
- Forestar is well positioned to effectively operate during changing economic conditions.
- Low net leverage.
- Strong liquidity position.
- Strategic relationship with D.R. Horton.
Challenges Ahead
- The impact of C-19 on the economy and our business.
- The effect of D.R. Horton's controlling level of ownership on us and the holders of our securities.
- Our ability to realize the potential benefits of the strategic relationship with D.R. Horton.
- The effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our vendors and customers.
- Demand for new housing, which can be affected by a number of factors including the availability of mortgage credit, job growth and fluctuations in interest rates.