AV Homes

2017 Performance Final Grade: 59.05/100
2016 Final Grade: 82.4/100
C-/A

22.86/40

Change YoY
Net debt-to-capital 25.6% -300bps
Pretax home building income
(in millions)
$53.8 -5.6%
Total SG&A/Total revenue 12.6% --
Total SG&A
(in millions)
$106.4 6.2%
Return on invested capital -2.7% -2,450bps
Return on equity -5% -4,410bps
Total shareholder return 4.4% --
EPS $-0.98 -114.9%

11.43/20

Change YoY
Community count 61 +3
Share of lots optioned to total controlled -- --

13.33/20

Change YoY
Home building gross margins 17.2% -120bps
Sales per month to break even
(per community)
2.17 --
Revenue per employee
(in millions)
$2.3 -2.1%
Change YoY
Closings 2,491 1.1%
Sales velocity
(per community per month)
3.3 -1.9%
Unit backlog 724 3%


Total revenue (in millions):$843
HB revenue (in millions): $821
Debt per share: $20.99
Equity per basic share: $19.20
HB pretax margin: 6.5%
Backlog value (in millions): $236.8
Inventory (in millions):$603.9
Lot supply (in years): 6.5

AV Homes (Nasdaq: AVHI) was hampered by a charge to deferred tax assets as a result of the Tax Cuts and Jobs Act, and it took the hit against 2017 earnings, which produced a loss for the year. The firm’s revenue, however, was up, driven by volume increases due to a greater number of communities with deliveries because of organic and acquisition-related growth, and higher average selling prices because of price increases and improvements in the mix of homes sold.