Forestar Group Inc. (FOR) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $43.74 million, or $ 1.03 a share in the quarter, against a net loss of $6.17 million, or $0.14 a share in the last year period.
Revenue during the quarter plunged 38.80 percent to $64.50 million from $105.39 million in the previous year period. Total expenses were 84.68 percent of quarterly revenues, down from 3.80 percent for the same period last year.
"2016 was a transformative year for Forestar. We made exceptional progress executing our key initiatives to divest non-core assets, reduce outstanding debt, reduce SG&A costs and focus on maximizing shareholder value from our core community development business. Key highlights included selling nearly $482 million in non-core assets, reducing outstanding debt by over $320 million since third quarter 2015, and reducing annual interest expense by approximately $23 million going forward. Forestar is actively selling or preparing to sell its nine remaining non-core assets in 2017, four of which are already under contract to be sold. Sales of these remaining non-core assets will generate additional cash and annual SG&A savings," said Phil Weber, Chief Executive Officer of Forestar.
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