Forestar Group Inc. (NYSE: FOR), a residential lot developer, on Tuesday reported select preliminary results for its second quarter and six months ended March 31, 2020.
Revenues for the second quarter of fiscal 2020 increased 144% to $159.1 million from $65.3 million in the same quarter of fiscal 2019. Residential lots sold in the quarter increased 256% to 1,951 lots compared to 548 lots in the same quarter of fiscal 2019.
Revenues for the six months ended March 31, 2020 increased 292% to $406.4 million from $103.8 million in the same period of fiscal 2019. Residential lots sold in the first six months of fiscal 2020 increased 310% to 4,373 lots compared to 1,066 lots sold in the same period of fiscal 2019.
The company ended the second quarter with $438.2 million of unrestricted cash and $349.0 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $787.2 million. Debt at March 31, 2020 totaled $640.1 million, with no senior note maturities until fiscal 2024.
Regarding the impact of COVID-19, the company stated, “Economic fundamentals remained solid in the housing and residential lot development markets throughout most of the second quarter of fiscal 2020. During the latter part of March and into April, the impacts of the COVID-19 pandemic (COVID-19) and the related widespread reductions in economic activity began to adversely affect the company’s business operations and the demand for its residential lots. The company has been informed by D.R. Horton and other home builders that they are slowing their purchases of lots to adjust to lower levels of home sales orders, compared to the period leading up to the pandemic.”
