BONITA SPRINGS — Homebuilder WCI Communities swung to profitability after it recently sold stock and debt for future development projects in Florida.
WCI reported net income was $8.9 million on revenues of $83.3 million in the quarter ending June 30. That compared with a net loss of $16.6 million on revenues of $48.5 million in the same quarter one year ago.
WCI netted $91 million from an initial public offering on the New York Stock Exchange last month (symbol: WCIC; recent price: $16). It also recently sold $200 million in debt to repay existing bondholders and to use for future development projects.
“The second quarter of 2013 positioned WCI Communities for a strong start as we returned to the public markets following our IPO last month,” says Keith Bass, WCI's president and CEO, in a statement. “These results demonstrate that we are well positioned to take advantage of the improving Florida housing market given our significant land position with its attractive cost basis in many of the state's key coastal markets.”
WCI says revenues from new homes jumped 170% to $53.8 million in the most recent quarter compared to the same three months in 2012. It sold 122 homes, up 144%, for an average selling price of $441,000, up 10.8%.
The outlook appears positive. WCI reported that the contract value of new orders is up 38% to $70.1 million and the average selling price rose 20.2% to $477,000.
WCI emerged from bankruptcy protection in 2009, paring down debt by selling assets outside of Florida. Bass, a former executive with Taylor Woodrow and Ryland Homes, was named CEO in December after he joined the company's board in 2012.