Group TECHNICAL OLYMPIC management informs the investment community that NYSE listed US affiliate Technical Olympic USA Inc. (TOUSA) announced today its Q1 2007 financial results and also informed about the developments regarding Transeastern JV.
TOUSA's consolidated revenues from the construction and sale of homes as well as the sale of land amounted to $ 600.2 million compared to $ 629.5 million in Q1 of 2006, a 5% decrease. Consolidated home deliveries slightly dropped to 1,831 down by 2% from the 1,874 delivered in Q1 of 2006.
It is worth noting that the decrease in revenues in the Q1 of 2007 is mainly due to the sluggish home market in the United States, which has reached its 10-year low levels, as is already mentioned in our previous releases.
Gross profit amounted to $ 81.5 million compared to $ 150.4 million in Q1 of 2006, while home sales gross profit margin, excluding impairment and related charges decreased in the Q1 of 2007 to 20.5% from 26.0% in the Q1 of 2006
EBITDA for Q1 of 2007 was $57.6million compared to $114.5 million in Q1 of 2006. Finally the company reported Net loss of $ 66.0 million in Q1 of 2007 compared to net profit of $ 55.0 million in the respective last year's quarter. It is worth noting that excluding the impact of inventory impairments, deposit write-offs and abandonment costs, and estimated loss contingency, the company would report net profit of $21.7 million in Q1 of 2007.
More specifically, the company's results for the first quarter of 2007 include a $78.9 million estimated pre-tax loss contingency relating to the potential restructuring of the Transeastern JV pursuant to a proposed settlement. Also adversely impacting net income is $42.0 million of pre-tax charges resulting from the write-down of assets including, inventory impairments and write-off of deposits and abandonment costs.
For the period from January 1st 2007 to March 31st 2007, the company reported consolidated net sales orders of 1,801 decreased by 17% when compared to 2,157 in the first quarter of 2006.
The Company's consolidated homes in backlog decreased 27% to 4,061 as of 31/3/2007 from 5,555 as of 31/3/2006.
In reference to the current year, TOUSA management does not expect any significant changes in the market conditions where supply exceeds demand and also emphasizes the serious efforts undertaken for the gradual restructuring and we quote: TOUSA continues to navigate these difficult market conditions with an emphasis on strengthening the balance sheet and enhancing our liquidity. As a result, we have already reduced our consolidated controlled homesite position by approximately 16% and reduced our unsold inventory of homes by 21% from December 31, 2006 compared to 31/3/2007. And conclude with the following and we quote: Currently it is difficult to gauge the timing of a potential housing recovery, as conditions continue to vary greatly. This leads us to believe that we have not reached the point of stabilization as we had previously anticipated and that the difficult conditions could persist for the foreseeable future.