Click here to close now.

SYS-CON MEDIA Authors: JP Morgenthal, AppDynamics Blog, John Wetherill, Harry Trott, Roger Strukhoff

News Feed Item

Brookfield Residential Reports 2014 First Quarter Net Income of $25 Million

CALGARY, ALBERTA -- (Marketwired) -- 05/01/14 -- Investors, analysts and other interested parties can access Brookfield Residential's first quarter 2014 interim report and corporate profile on our website at www.brookfieldrp.com.

The first quarter 2014 results conference call and webcast will be held on May 2, 2014 at 11 a.m. (EST). Dial 1.800.319.4610 toll free in North America or 1.604.638.5340 for overseas calls. The call will also be available via webcast live at www.brookfieldrp.com. The recorded conference call replay can be accessed until June 2, 2014 by dialing 1.800.319.6413 or 1.604.638.9010 and using code 1231#.

Financial results highlights for the three months ended March 31, 2014 as compared to the same period in 2013 included the following:


--  Net income increased to $25 million or $0.21 per diluted share
--  Total revenues grew 22% to $208 million
--  Homes delivered increased 18% to 346 units
--  Average home selling price increased 17% to $473,000
--  Backlog value increased 17% to $609 million
--  $33 million gain on sale of commercial assets

Brookfield Residential Properties Inc. (TSX: BRP)(NYSE: BRP) today announced its financial results for the three months ended March 31, 2014. The results are based on U.S. Generally Accepted Accounting Principles (U.S. GAAP).

Performance and Financial Highlights


                                               Three months ended March 31
                                              -----------------------------
(US$ millions, except per share amounts)                2014           2013
---------------------------------------------------------------------------
Total revenue                                          $ 208          $ 171
Income before income taxes                                35              7
Income tax expense                                        (8)            (3)
Net income attributable to Brookfield
 Residential                                              25              4
Basic income per share                                $ 0.21         $ 0.04
Diluted income per share                              $ 0.21         $ 0.04
---------------------------------------------------------------------------
Total assets                                          $3,229        $ 2,895
Total liabilities                                     $1,754        $ 1,567

--  Net income increased to $25 million, or $0.21 per diluted share, from $4
    million, or $0.04 per diluted share, in the first quarter of 2013
--  Revenue increased 22% to $208 million from the first quarter of 2013
--  Homebuilding deliveries increased to 346 units, up 18% from the first
    quarter of 2013
--  The average home selling price increased 17% to $473,000 in the first
    quarter, compared to $406,000 during the same period in 2013
--  As at March 31, 2014, backlog of housing units, including our share of
    unconsolidated entities, increased 3% to 1,249 units, while backlog
    value increased 17% to $626 million, compared to March 31, 2013
--  Active housing communities, including our share of unconsolidated
    entities, increased to 53, up from 37 in the first quarter of 2013 and
    47 at the end of 2013

Operational Highlights


                                                Three months ended March 31
                                              ------------------------------
(US$ millions, except unit activity and
 average selling price)                                  2014           2013
----------------------------------------------------------------------------

Land revenue                                   $           44 $           52
Lot closings (single family units)                        324            354
Average lot selling price (single family
 units)                                        $      127,000 $      146,000
Acre closings (multi-family, industrial and
 commercial)                                                4              -
Average per acre selling price (multi-family,
 industrial and commercial)                    $      836,000              -

Housing revenue                                $          164 $          119
Home closings for Brookfield Residential
 (units)                                                  346            294
Home closings for unconsolidated entities
 (units)                                                    4              2
Average home selling price for Brookfield
 Residential (per unit)                        $      473,000 $      406,000

Net new orders for Brookfield Residential
 (units)                                                  655            657
Net new orders for unconsolidated entities
 (units)                                                   29             18
Backlog for Brookfield Residential (units at
 end of period)                                         1,211          1,180
Backlog for unconsolidated entities (units at
 end of period)                                            38             33
Backlog value for Brookfield Residential       $          609 $          519
Backlog value for unconsolidated entities      $           17 $           16

Land revenue totalled $44 million for the three months ended March 31, 2014, a decrease of $8 million when compared to the same period in 2013. The decrease in land revenue for the three months ended March 31, 2014 was due to 30 fewer single-family lot sales, partially offset by an increase in multi-family, industrial and commercial acre sales and raw and partially finished acre sales. Our land revenue may vary significantly from period to period due to the nature and timing of land sales. Revenues are also affected by local product mix and market conditions, which have an impact on the selling price per lot.

Housing revenue was $164 million for the three months ended March 31, 2014 compared to $119 million for the same period in 2013. The increase was the result of a 18% increase in home closings and a 17% increase in the average selling price when compared to the same period in 2013.

Income was generated from the sale of two commercial income producing properties that were sold during the three months ended March 31, 2014. The Canadian operating segment sold a 128,000 square foot commercial property at Seton in Calgary, Alberta for proceeds of $66 million and a gain of $32 million. The California operating segment sold a 22,700 square foot commercial property at Playa Vista in Los Angeles, California for proceeds of $17 million and a gain of $1 million. There were no such sales for the same period in 2013.

REGIONAL HIGHLIGHTS

In California, we successfully opened our first housing project in the mixed-use development of Playa Vista in Los Angeles, California. We also monetized the commercial retail asset during the quarter.

In Central and Eastern U.S., we received final approval to begin construction of our second master-planned community in Austin, Texas, called Addison. We also received preliminary approval for the first phase of Easton Park, our third master-planned community in the Austin market.

In Canada, we completed the sale of the Phase I retail project in our Seton mixed-use development in Calgary, Alberta, generating a gain of $32 million. We also opened the community, The Arbors in Aurora, which is located north of Toronto, Ontario achieving 100 signed sales contracts in the first month and a half of sales.

NORMAL COURSE ISSUER BID

Brookfield Residential announced today that the Toronto Stock Exchange (TSX) has approved our notice of intention to make a normal course issuer bid (NCIB) for a portion of our common shares. The NCIB will be made in accordance with the requirements of the TSX and the Company may begin to purchase Common Shares on May 5, 2014.

As of April 21, 2014, 119,032,693 Common Shares were outstanding and pursuant to the NCIB, Brookfield Residential will acquire up to a maximum of 2,000,000 common shares. This represents approximately 1.68% of the Company's issued and outstanding Common Shares as of April 21, 2014. Purchases of common shares pursuant to the NCIB may commence on May 5, 2014 and will end on May 4, 2015. Purchases under the NCIB will be made by Brookfield Residential through the facilities of the TSX, the New York Stock Exchange and other alternative Canadian and U.S. trading platforms and in accordance with applicable regulatory requirements. The price that the Company will pay for any Common Shares will be the market price of such Common Shares at the time of acquisition. In accordance with the rules of the TSX, the maximum daily purchase on the TSX under the NCIB will be 2,658 Common Shares, which is 25% of 10,632 (the average daily trading volume for Brookfield Residential's Common Shares on the TSX for the six months ended March 31, 2014), which limitation does not apply to purchases made pursuant to block purchase exemptions or to purchases that may be made by Brookfield Residential on the NYSE. Any Common Shares that are purchased under the NCIB will be cancelled upon their purchase by the Company.

Brookfield Residential will fund the purchases through available cash and we believe that these purchases are an appropriate use of cash and in the best interests of the Company and its shareholders. We believe that the market price of our Common Shares may not fully reflect the underlying value of our business and our future business prospects. We believe that, in such circumstances, the outstanding Common Shares represent an attractive investment for our company since a portion of our excess cash generated on an annual basis can be invested for an attractive risk adjusted return on capital through the issuer bid.

Brookfield Residential will enter into an automatic purchase plan on or about the week of May 20, 2014 in relation to the NCIB. The automatic purchase plan will allow for the purchase of Common Shares, subject to certain trading parameters, at times when Brookfield Residential ordinarily would not be active in the market due to its own internal trading black-out period, insider trading rules or otherwise. Outside of these periods, Common Shares may also be repurchased in accordance with management's discretion and in compliance with applicable law.

OUTLOOK

Our outlook for the balance of 2014 remains positive. We anticipate continued recovery in the U.S. market, albeit at a slower pace than 2013 and stable performance from our Canadian operations. We expect current margins from our U.S. operations will continue through 2014. Based on current market conditions, we anticipate that income before income taxes for 2014 will be measurably higher than in 2013.

Historically, there is variability in our results of operations from quarter to quarter, due to the seasonal nature of the homebuilding business and the timing of new community openings and closings. Typically, the highest rate of orders for new homes and lots occurs in the first nine months of the calendar year, with the majority of our profits occurring in the fourth quarter as we deliver on those orders. Many of our lot and acre closings are projected for the end of 2014 and are subject to the normal timing risk of approvals and the development and closing process. As a result, if they do not close in 2014, we would anticipate they will occur early in 2015. Additionally, as we report our overall results in U.S. dollars, we do encounter some variability in our results from our Canadian operations through the translation process and the movement in the relative currency rates over the comparative periods.

UPCOMING INVESTOR EVENTS


--  Wells Fargo 2014 Industrial and Construction Conference in New York on
    May 7th
--  JP Morgan Homebuilding & Building Products Conference in New York on May
    14th & 15th
--  Credit Suisse 2014 Regional Real Estate & Building Products Conferences
    in New York on May 15th
--  Brookfield Residential Investor Day scheduled in Playa Vista, California
    on November 19th

ADDITIONAL INFORMATION

The attached condensed consolidated financial statements are based primarily on information extracted from our financial statements for the three months ended March 31, 2014. The financial statements were prepared using the standards and interpretations currently issued under U.S. GAAP.

The interim report and the Company's corporate profile for the quarter ended March 31, 2014 contain further information on our strategy, operations, financial results and outlook. Shareholders are encouraged to read these documents, which are available on our website at www.brookfieldrp.com.

Brookfield Residential Properties Inc. is a leading North American land developer and homebuilder with operations in eleven major markets. We entitle and develop land to create master-planned communities and build and sell lots to third-party builders, as well as to our own homebuilding division. We also participate in selected, strategic real estate opportunities, including infill projects, mixed-use developments, infrastructure projects, and joint ventures. Brookfield Residential is listed on the NYSE and TSX under the symbol BRP. For more information, visit www.brookfieldrp.com.

Please note that Brookfield Residential's unaudited interim reports and audited annual report are filed on EDGAR and SEDAR and can also be found in the investor section of our website at www.brookfieldrp.com (the contents of which are not incorporated in this press release). Hard copies of the interim and annual reports can be obtained free of charge upon request.

Note: This news release contains "forward-looking statements" within the meaning of Canadian securities laws and United States federal securities laws. Certain statements in this news release that are not historical facts, including information concerning possible or assumed future results of operations of the company, guidance for 2014, anticipated improvements in the United States markets and the pace and impact thereof, continued stability in the Canadian markets, long-term market fundamentals (including tightened supply, increased demand, and increasing land values), the company's 2014 outlook, expected lot, home, and parcel closings and the timing thereof, the timing and number of new community openings, the number of communities in active selling phases, improvements in margins from our U.S. operations, increases to the underlying value of our land assets, profitability of our U.S. operations as compared to our Canadian operations, performance of our shares, and the rationale and impact of a normal course issuer bid, and those statements preceded by, followed by, or that include the words "believe," "projected," "planned," "anticipate," "should," "goals," "future," "expected," "potential," "estimate," "targeted," "scheduled" or similar expressions, constitute "forward-looking statements." Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the anticipated future results expressed or implied by such forward-looking statements.

Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include, but are not limited to: changes in general economic, real estate and other conditions; changes in interest rates; mortgage rate changes; availability of suitable undeveloped land at acceptable prices; adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labour or materials or increases in their costs; ability to develop and market our master-planned communities successfully; laws and regulations related to property development and to the environment that could lead to additional costs and delays; confidence levels of consumers; ability to raise capital on favourable terms; our debt and leverage; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability of adequate coverage and ability to obtain surety bonds; competitive conditions in the homebuilding industry, including product and pricing pressures; ability to retain our executive officers; relationships with our affiliates; any increase in unemployment or underemployment; decline of the market value of our land and housing inventories; significant inflation or deflation; inability to raise capital on favorable terms or at all; failure in our financial and commercial controls; changes to foreign currency exchange rates; difficultly enforcing civil liabilities in the United States against us and our directors and officers; higher cancellation rates of existing agreements of sale; major health and safety incident relating to our business; utility and resource shortages or rate fluctuations; and additional risks and uncertainties referred to in our filings with the securities regulators in Canada and the United States, many of which are beyond our control. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports should be consulted.


                   Brookfield Residential Properties Inc.
              Condensed Consolidated Statements of Operations
                                 (Unaudited)
                                              Three Months ended March 31
                                            -------------------------------
(US$ thousands, except per share amounts)              2014            2013
---------------------------------------------------------------------------
Revenue
Land                                         $       44,705  $       51,713
Housing                                             163,674         119,309
---------------------------------------------------------------------------
                                                    208,379         171,022
Direct Cost of Sales
Land                                                (24,087)        (23,239)
Housing                                            (125,405)        (96,704)
---------------------------------------------------------------------------
                                                     58,887          51,079
Gain on commercial assets held for sale              32,927               -
Selling, general and administrative expense         (44,837)        (36,252)
Interest expense                                    (16,104)        (10,506)
Equity in earnings from unconsolidated
 entities                                             2,651           1,794
Other income                                          2,322           1,852
Depreciation                                         (1,149)           (999)
---------------------------------------------------------------------------
Income Before Income Taxes                           34,697           6,968
Current income tax (expense) / recovery                 (36)             60
Deferred income tax expense                          (8,065)         (2,632)
---------------------------------------------------------------------------
Net Income                                           26,596           4,396
Net income attributable to non-controlling
 interests and other interests in
 consolidated subsidiaries                           (1,747)           (120)
---------------------------------------------------------------------------
Net Income Attributable Brookfield
 Residential                                 $       24,849  $        4,276
---------------------------------------------------------------------------
Other Comprehensive Income
Unrealized foreign exchange loss on the
 translation of the net investment in
 Canadian subsidiaries                              (29,446)        (19,186)
---------------------------------------------------------------------------
Comprehensive Loss Attributable to
 Brookfield Residential                      $       (4,597) $      (14,910)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Common Shareholders Earnings Per Share
Basic                                        $         0.21  $         0.04
Diluted                                      $         0.21  $         0.04
Weighted Average Common Shares Outstanding
 (in thousands)
Basic                                               117,031         116,316
Diluted                                             118,273         117,269

                   Brookfield Residential Properties Inc.
              Condensed Consolidated Balance Sheets (Unaudited)




(US$ thousands)                                       As at
                                    ----------------------------------------
                                          March 31, 2014   December 31, 2013
----------------------------------------------------------------------------


Assets
Land and housing inventory           $         2,452,698 $         2,399,242
Investments in unconsolidated
 entities                                        222,734             206,198
Commercial assets held for sale                        -              47,733
Receivables and other assets                     297,548             341,090
Restricted cash                                    6,704               8,169
Cash and cash equivalents                        237,581             319,735
Deferred income tax assets                        12,012              21,594
----------------------------------------------------------------------------
                                     $         3,229,277 $         3,343,761
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Notes payable                        $         1,100,000 $         1,100,000
Bank indebtedness and other
 financings                                      267,400             348,853
----------------------------------------------------------------------------
Total financings                               1,367,400           1,448,853
Accounts payable and other
 liabilities                                     386,968             418,410
----------------------------------------------------------------------------
Total liabilities                              1,754,368           1,867,263
Other interests in consolidated
 subsidiaries                                     38,512              36,641
Total equity                                   1,436,397           1,439,857
----------------------------------------------------------------------------
                                     $         3,229,277 $         3,343,761
----------------------------------------------------------------------------
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity...
As enterprises look to take advantage of the cloud, they need to understand the importance of safeguarding their confidential and sensitive data in cloud environments. Enterprises must protect their data from (i) system administrators who don't need to see the data in the clear and (ii) adversaries who become system administrators from stolen credentials. In short, enterprises must take control of their data: The best way to do this is by using advanced encryption, centralized key management and...
What are the benefits of using an enterprise-grade orchestration platform? In their session at 15th Cloud Expo, Nate Gordon, Director of Technology at Appcore, and Kedar Poduri, Senior Director of Product Management at Citrix Systems, took a closer look at the architectural design factors needed to support diverse workloads and how to run these workloads efficiently as a service provider. They also discussed how to deploy private cloud environments in 15 minutes or less.
In his session at DevOps Summit, Andrei Yurkevich, CTO at Altoros, provided an overview of all the benefits and opportunities, as well as drawbacks of deploying Cloud Foundry PaaS with Juju and compared it to BOSH. Discover the features that overlap, and understand what Juju Charm is, what it is not, where you use one or the other or where you use both BOSH and Juju Charms together. Andrei Yurkevich is Cloud Foundry protagonist and CTO at Altoros. Under his supervision, the Altoros engineering ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device exp...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Containers Expo Blog covers the world of containers, as this lightweight alternative to virtual machines enables developers to work with identical dev environments and stacks. Containers Expo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Bookmark Containers Expo Blog ▸ Here Follow new article posts on Twitter at @ContainersExpo
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...