Forestar Reports Fourth Quarter and Fiscal 2024 Results
Forestar Group reported strong financial results for Q4 and fiscal 2024. Q4 net income rose 13% to $81.6 million ($1.60 per share), while fiscal 2024 net income increased 22% to $203.4 million ($4.00 per share). Revenue grew 5% to $1.5 billion in fiscal 2024, with 15,068 lots sold. The company maintained a strong position with 95,100 owned and controlled lots, and improved return on equity to 13.8%. Book value per share increased 15% to $31.47. The company ended the year with total liquidity of $858.4 million and projects delivery of 16,000-16,500 lots generating $1.6-1.65 billion revenue in fiscal 2025.
Forestar Group ha riportato risultati finanziari solidi per il quarto trimestre e per l'anno fiscale 2024. Il reddito netto del Q4 è aumentato del 13% a $81.6 milioni ($1.60 per azione), mentre il reddito netto per l'anno fiscale 2024 è salito del 22% a $203.4 milioni ($4.00 per azione). I ricavi sono cresciuti del 5% a $1.5 miliardi nell'anno fiscale 2024, con 15.068 lotti venduti. L'azienda ha mantenuto una posizione forte con 95.100 lotti posseduti e controllati, e ha migliorato il rendimento del capitale proprio al 13.8%. Il valore contabile per azione è aumentato del 15% a $31.47. Alla fine dell'anno, l'azienda ha avuto una liquidità totale di $858.4 milioni e prevede di consegnare tra 16.000 e 16.500 lotti, generando ricavi tra $1.6-1.65 miliardi nell'anno fiscale 2025.
Forestar Group reportó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2024. La utilidad neta del cuarto trimestre aumentó un 13% a $81.6 millones ($1.60 por acción), mientras que la utilidad neta para el año fiscal 2024 creció un 22% a $203.4 millones ($4.00 por acción). Los ingresos crecieron un 5% a $1.5 mil millones en el año fiscal 2024, con 15,068 lotes vendidos. La compañía mantuvo una posición sólida con 95,100 lotes en propiedad y controlados, y mejoró el retorno sobre el capital propio al 13.8%. El valor contable por acción aumentó un 15% a $31.47. La empresa terminó el año con una liquidez total de $858.4 millones y proyecta la entrega de entre 16,000 y 16,500 lotes, generando ingresos de $1.6-1.65 mil millones en el año fiscal 2025.
Forestar Group은 4분기 및 2024 회계연도에 대한 강력한 재무 결과를 보고했습니다. 4분기 순이익은 13% 증가하여 8,160만 달러($1.60 per share)에 이르렀고, 2024 회계연도 순이익은 22% 증가하여 2억 3,040만 달러($4.00 per share)가 되었습니다. 2024 회계연도 매출은 5% 증가하여 15억 달러에 달하였으며, 15,068개의 부지가 판매되었습니다. 이 회사는 95,100개의 소유 및 관리 부지를 보유하고 있으며, 자본 수익률을 13.8%로 개선했습니다. 주당 장부 가치는 15% 증가하여 31.47달러가 되었습니다. 이 회사는 연말에 총 유동성을 8억 5,840만 달러로 마감했으며, 2025 회계연도에 16,000~16,500개의 부지를 배송하여 16억~16억 5,000만 달러의 매출을 가져올 것으로 예상하고 있습니다.
Forestar Group a rapporté des résultats financiers solides pour le quatrième trimestre et l'exercice 2024. Le résultat net du quatrième trimestre a augmenté de 13 % pour atteindre 81,6 millions de dollars (1,60 dollar par action), tandis que le résultat net de l'exercice 2024 a augmenté de 22 % pour atteindre 203,4 millions de dollars (4,00 dollars par action). Les revenus ont progressé de 5 % pour atteindre 1,5 milliard de dollars pour l'exercice 2024, avec 15 068 terrains vendus. L'entreprise a maintenu une position solide avec 95 100 terrains détenus et contrôlés, et a amélioré son retour sur fonds propres à 13,8 %. La valeur comptable par action a augmenté de 15 % pour atteindre 31,47 dollars. L'entreprise a terminé l'année avec une liquidité totale de 858,4 millions de dollars et prévoit de livrer entre 16 000 et 16 500 terrains, générant entre 1,6 et 1,65 milliard de dollars de revenus pour l'exercice 2025.
Forestar Group berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024. Der Nettogewinn im vierten Quartal stieg um 13% auf 81,6 Millionen Dollar (1,60 Dollar pro Aktie), während der Nettogewinn für das Geschäftsjahr 2024 um 22% auf 203,4 Millionen Dollar (4,00 Dollar pro Aktie) zunahm. Der Umsatz wuchs im Geschäftsjahr 2024 um 5% auf 1,5 Milliarden Dollar, wobei 15.068 Parzellen verkauft wurden. Das Unternehmen hielt eine starke Position mit 95.100 im Eigentum und kontrollierte Parzellen und verbesserte die Eigenkapitalrendite auf 13,8%. Der Buchwert pro Aktie stieg um 15% auf 31,47 Dollar. Das Unternehmen schloss das Jahr mit einer Gesamtliquidität von 858,4 Millionen Dollar ab und prognostiziert die Lieferung von 16.000 bis 16.500 Parzellen, die Einnahmen von 1,6 bis 1,65 Milliarden Dollar im Geschäftsjahr 2025 generieren werden.
- Net income increased 22% to $203.4 million in fiscal 2024
- Revenue grew 5% to $1.5 billion
- Lots sold increased 7% to 15,068
- Return on equity improved to 13.8%
- Strong liquidity position of $858.4 million
- Book value per share increased 15% to $31.47
- Pre-tax profit margin of 17.9%
- Debt level at $706.4 million
- Dilution from issuance of 546,174 new shares
Insights
Forestar delivered an impressive Q4 FY2024 performance with significant growth metrics:
Key operational strengths include increased lot sales (
The company's strategic positioning in the lot development space is particularly noteworthy given current market conditions. With 21,000 lots under contract representing
Fiscal 2024 Fourth Quarter Highlights
All comparisons are year-over-year
-
Net income increased
13% to or$81.6 million per diluted share$1.60 -
Pre-tax income increased
14% to , with a pre-tax profit margin of$108.5 million 19.7% -
Revenues of
on 5,374 lots sold$551.4 million
Fiscal 2024 Highlights
All comparisons are year-over-year
-
Net income increased
22% to or$203.4 million per diluted share$4.00 -
Pre-tax income increased
22% to , with a pre-tax profit margin of$270.1 million 17.9% -
Revenues increased
5% to on 15,068 lots sold$1.5 billion - Owned and controlled 95,100 lots at September 30, 2024
-
Return on equity improved 60 basis points to
13.8% -
Book value per share increased
15% to$31.47
Financial Results
Net income for the fourth quarter of fiscal 2024 increased
Net income for the fiscal year ended September 30, 2024 increased
The Company’s return on equity was
Operational Results
Lots sold during the fourth quarter increased
Lots sold during fiscal 2024 increased
The Company’s lot position at September 30, 2024 was 95,100 lots, of which 57,800 were owned and 37,300 were controlled through land and lot purchase contracts. Lots owned at September 30, 2024 included 6,300 that were fully developed. Of the Company’s owned lot position at September 30, 2024, 21,000 lots, or
Capital Structure, Leverage and Liquidity
During fiscal 2024, the Company issued 546,174 shares of common stock under its at-the-market equity offering program for proceeds of
Forestar ended the fiscal year with
Outlook
Donald J. Tomnitz, Chairman of the Board, said, “The Forestar team finished the year with a strong fourth quarter, demonstrating the resiliency of the new home market and builder demand despite elevated mortgage interest rates. We delivered over 15,000 finished lots in fiscal 2024, and our revenues exceeded the high end of our most recent guidance range.
Over the last five years, Forestar invested approximately
As we look forward to fiscal 2025, we currently expect to deliver between 16,000 and 16,500 lots, generating
Tomnitz concluded, “Forestar is uniquely positioned to take advantage of the shortage of finished lots in the homebuilding industry. Our strong balance sheet and ample liquidity give us the flexibility to adapt to changing market conditions and to invest in land development opportunities that position the Company for growth in fiscal 2025 and beyond. We expect to continue aggregating significant market share over the next few years and will maintain our disciplined approach to investing capital to enhance the long-term value of Forestar.”
Conference Call and Webcast Details
The Company will host a conference call today (Tuesday, October 29) at 11:00 a.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 749922, and the call will also be webcast from the Company’s website at investor.forestar.com.
About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 59 markets and 24 states. Based in
Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include we currently expect to deliver between 16,000 and 16,500 lots, generating
Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: 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 customers; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; the impact of significant inflation, higher interest rates or deflation; supply shortages and other risks of acquiring land, construction materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic; the impacts of weather conditions and natural disasters; health and safety incidents relating to our operations; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; the impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies; our ability to achieve our strategic initiatives; continuing liabilities related to assets that have been sold; the cost and availability of property suitable for residential lot development; general economic, market or business conditions where our real estate activities are concentrated; our dependence on relationships with national, regional and local homebuilders; competitive conditions in our industry; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; our ability to succeed in new markets; the conditions of the capital markets and our ability to raise capital to fund expected growth; our ability to manage and service our debt and comply with our debt covenants, restrictions and limitations; the volatility of the market price and trading volume of our common stock; our ability to hire and retain key personnel; and the strength of our information technology systems and the risk of cybersecurity breaches and our ability to satisfy privacy and data protection laws and regulations. Additional information about issues that could lead to material changes in performance is contained in Forestar’s annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are or will be filed with the Securities and Exchange Commission.
FORESTAR GROUP INC. Consolidated Balance Sheets (Unaudited) |
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|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In millions, except share data) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
481.2 |
|
$ |
616.0 |
||
Real estate |
|
2,266.2 |
|
|
|
1,790.3 |
|
Investment in unconsolidated ventures |
|
0.3 |
|
|
|
0.5 |
|
Property and equipment, net |
|
7.1 |
|
|
|
5.9 |
|
Other assets |
|
85.3 |
|
|
|
58.0 |
|
Total assets |
$ |
2,840.1 |
|
|
$ |
2,470.7 |
|
LIABILITIES |
|
|
|
||||
Accounts payable |
$ |
85.9 |
|
|
$ |
68.4 |
|
Accrued development costs |
|
144.6 |
|
|
|
104.1 |
|
Earnest money on sales contracts |
|
172.3 |
|
|
|
121.4 |
|
Deferred tax liability, net |
|
67.5 |
|
|
|
50.7 |
|
Accrued expenses and other liabilities |
|
68.3 |
|
|
|
61.2 |
|
Debt |
|
706.4 |
|
|
|
695.0 |
|
Total liabilities |
|
1,245.0 |
|
|
|
1,100.8 |
|
EQUITY |
|
|
|
||||
Common stock, par value 50,653,637 and 49,903,713 shares issued and outstanding at September 30, 2024 and 2023, respectively |
|
50.7 |
|
|
|
49.9 |
|
Additional paid-in capital |
|
665.2 |
|
|
|
644.2 |
|
Retained earnings |
|
878.2 |
|
|
|
674.8 |
|
Stockholders' equity |
|
1,594.1 |
|
|
|
1,368.9 |
|
Noncontrolling interests |
|
1.0 |
|
|
|
1.0 |
|
Total equity |
|
1,595.1 |
|
|
|
1,369.9 |
|
Total liabilities and equity |
$ |
2,840.1 |
|
|
$ |
2,470.7 |
|
FORESTAR GROUP INC. Consolidated Statements of Operations (Unaudited) |
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|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In millions, except per share amounts) |
||||||||||||||
Revenues |
$ |
551.4 |
|
|
$ |
549.7 |
|
|
$ |
1,509.4 |
|
|
$ |
1,436.9 |
|
Cost of sales |
|
419.5 |
|
|
|
434.1 |
|
|
|
1,150.1 |
|
|
|
1,132.8 |
|
Selling, general and administrative expense |
|
32.0 |
|
|
|
26.4 |
|
|
|
118.5 |
|
|
|
97.7 |
|
Gain on sale of assets |
|
(4.5 |
) |
|
|
— |
|
|
|
(9.5 |
) |
|
|
(1.6 |
) |
Interest and other income |
|
(4.1 |
) |
|
|
(6.2 |
) |
|
|
(19.8 |
) |
|
|
(13.6 |
) |
Income before income taxes |
|
108.5 |
|
|
|
95.4 |
|
|
|
270.1 |
|
|
|
221.6 |
|
Income tax expense |
|
26.9 |
|
|
|
23.0 |
|
|
|
66.7 |
|
|
|
54.7 |
|
Net income |
$ |
81.6 |
|
|
$ |
72.4 |
|
|
$ |
203.4 |
|
|
$ |
166.9 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share |
$ |
1.61 |
|
|
$ |
1.45 |
|
|
$ |
4.03 |
|
|
$ |
3.34 |
|
Weighted average number of common shares |
|
50.7 |
|
|
|
50.1 |
|
|
|
50.4 |
|
|
|
50.0 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share |
$ |
1.60 |
|
|
$ |
1.44 |
|
|
$ |
4.00 |
|
|
$ |
3.33 |
|
Adjusted weighted average number of common shares |
|
51.0 |
|
|
|
50.4 |
|
|
|
50.8 |
|
|
|
50.1 |
|
FORESTAR GROUP INC. Revenues, Residential Lots Sold and Lot Position |
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REVENUES |
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|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In millions) |
||||||||||||||
Residential lot sales: |
|
|
|
|
|
|
|
||||||||
Development projects |
$ |
496.4 |
|
$ |
485.4 |
|
|
$ |
1,418.5 |
|
$ |
1,275.7 |
|||
Lot banking projects |
|
26.8 |
|
|
|
— |
|
|
|
37.9 |
|
|
|
— |
|
Decrease (increase) in contract liabilities |
|
0.3 |
|
|
|
(4.1 |
) |
|
|
2.9 |
|
|
|
— |
|
|
|
523.5 |
|
|
|
481.3 |
|
|
|
1,459.3 |
|
|
|
1,275.7 |
|
Deferred development projects |
|
4.5 |
|
|
|
4.3 |
|
|
|
8.1 |
|
|
|
29.0 |
|
|
|
528.0 |
|
|
|
485.6 |
|
|
|
1,467.4 |
|
|
|
1,304.7 |
|
Tract sales and other |
|
23.4 |
|
|
|
64.1 |
|
|
|
42.0 |
|
|
|
132.2 |
|
Total revenues |
$ |
551.4 |
|
|
$ |
549.7 |
|
|
$ |
1,509.4 |
|
|
$ |
1,436.9 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
RESIDENTIAL LOTS SOLD |
||||||||||||||
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Development projects |
|
5,176 |
|
|
|
4,986 |
|
|
|
14,769 |
|
|
|
14,040 |
|
Lot banking projects |
|
198 |
|
|
|
— |
|
|
|
299 |
|
|
|
— |
|
|
|
5,374 |
|
|
|
4,986 |
|
|
|
15,068 |
|
|
|
14,040 |
|
|
|
|
|
|
|
|
|
||||||||
Average sales price per lot (1) |
$ |
97,300 |
|
|
$ |
97,400 |
|
|
$ |
96,600 |
|
|
$ |
90,900 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
LOT POSITION |
||||||||||
|
|
|
|
|
September 30, |
||||||||||
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
||||
Lots owned |
|
|
57,800 |
|
|
|
52,400 |
|
|||||||
Lots controlled under land and lot purchase contracts |
|
|
37,300 |
|
|
|
26,800 |
|
|||||||
Total lots owned and controlled |
|
|
95,100 |
|
|
|
79,200 |
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Owned lots under contract to sell to D.R. Horton |
|
|
20,500 |
|
|
|
14,400 |
|
|||||||
Owned lots under contract to customers other than D.R. Horton |
|
|
500 |
|
|
|
600 |
|
|||||||
Total owned lots under contract |
|
|
21,000 |
|
|
|
15,000 |
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements |
|
|
17,200 |
|
|
|
17,000 |
|
|||||||
Owned lots fully developed |
|
|
6,300 |
|
|
|
6,400 |
|
_____________ |
|
(1) |
Excludes any impact from change in contract liabilities. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029990372/en/
Katie Smith, 817-769-1860
Vice President of Finance & Investor Relations
InvestorRelations@forestar.com
Source: Forestar Group Inc.
FAQ
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