Forestar Group (FOR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $9.66 million, or $ 0.23 a share in the quarter, against a net loss of $164.22 million, or $4.79 a share in the last year period.    

Revenue during the quarter surged 46.67 percent to $47.21 million from $32.18 million in the previous year period.

Total expenses were $5.53 million for the quarter, up 47.78 percent or $5.06 million from year-ago period. Operating margin for the quarter contracted 2119 basis points over the previous year period to 111.71 percent.

Operating income for the quarter was $52.74 million, compared with $42.77 million in the previous year period.      

Revenue from real estate activities during the quarter surged 62.02 percent or $17.34 million to $45.30 million. Revenue from sale of real estate was $45.30 million for the quarter, up 62.02 percent or $17.34 million.

"In one year, we have made significant progress transforming Forestar through the execution of our key initiatives to divest non-core assets, reduce outstanding debt, reduce SG&A costs and focus on maximizing shareholder value. Key highlights include selling $425 million in non-core assets, reducing outstanding debt by over $320 million, and reducing annual interest expense by approximately $23 million going forward. Once non-core asset sales are fully executed, projected annual SG&A costs are expected to decrease by over $50 million compared with 2015 actuals. In addition, we have transformed our capital structure by significantly reducing leverage, which has strengthened our balance sheet and created flexibility," said Phil Weber, chief executive officer of Forestar.