Shea Homes' Q1 net loss grows to US$8.29M from US$3.47M a year ago as house revenue dips 5% to US$71.2M; home closings fall 5% to 182, average selling price of US$391,000 unchanged

Cindy Allen

WALNUT, California , May 26, 2011 (Business Wire) – hea Homes, one of America’s largest private homebuilders today reported results for its first quarter ended March 31, 2011.

Highlights and achievements include the following:

2011 First Quarter Highlights and Comparisons to 2010 First Quarter

Consolidated homes closed were 182 compared to 191 in 2010, a 5% decrease.
House revenues were $71.2 million compared to $74.6 million in 2010, a 5% decrease.
Average selling price of homes closed was $391,000, no change from 2010.
House gross margins were 18.1% compared to 14.2% in 2010, a 27% increase.
Inventory impairment charges were $0.6 million compared to none in 2010.
SG&A expense as a percentage of revenue was 22.2% compared to 21.4% in 2010, a 4% increase.
Net loss attributable to Shea Homes was $8.29 million compared to $3.47 million in 2010, a 139% increase.
Cash was $136.2 million compared to $113.4 million in 2010, a 20% increase.
Consolidated home sales orders were 346 compared to 378 in 2010, an 8% decrease.
Cancellation rate was 19.2% compared to 17.6% in 2010, a 9% increase.
Units in backlog at 3/31/11 were 572 compared to 771 at 3/31/10, a 26% decrease and primarily attributable to higher home sales orders and backlog in 2010 resulting from the federal homebuyer tax credit.
Backlog sales value was $244.4 million at 3/31/11 compared to $330.9 million at 3/31/10, a 26% decrease.
Backlog average selling price was $427,000 at 3/31/11 compared to $429,000 at 3/31/10.

Bert Selva, President and CEO, stated, "Despite one of the most severe downturns in the housing industry, we increased cash 20% and increased house gross margins 27%, year over year."

For the full report, please visit the Shea Homes website at http://www.sheahomes.com/investor/.

About Shea Homes

Shea Homes is one of the largest private homebuilders in the nation. Since its founding in 1968, Shea Homes has closed in excess of 86,000 homes. Shea Homes’ product strategy is to build homes that demonstrate quality craftsmanship and design that best fit varied lifestyles and budgets. Over the past several years, Shea Homes has been recognized as a leader in customer satisfaction with a reputation for quality, design and service. For more about Shea Homes and its communities, visit www.sheahomes.com.

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