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Forestar Group Inc (FOR+0.04%). has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $250.4 million from $305.9 million in the same quarter the previous year. This decrease is attributed to builders moderating their pace of new home starts to match market conditions.
Cost of sales for the quarter was $195.4 million, compared to $233.0 million in the same quarter of the previous year. The decrease in cost is due to a reduction in the number of lots sold.
The company reported a net income of $16.5 million for the quarter, down from $38.2 million in the previous year. The decline is attributed to reduced lot sales and increased selling, general, and administrative expenses.
Selling, general, and administrative expenses increased to $36.0 million from $28.0 million, primarily due to an increase in employee compensation and related costs.
Net cash used in operating activities was $450.0 million, primarily due to an increase in real estate and decreases in accounts payable and other liabilities.
Forestar had a working capital of $132.0 million in cash and cash equivalents as of December 31, 2024, and $512.5 million of available borrowing capacity on its revolving credit facility.
The filing also details various financial agreements, including an amendment to the senior unsecured revolving credit facility to increase its capacity and extend its maturity date.
Forestar continues to focus on developing lots for homes at affordable price points and managing lot sales pace and pricing to optimize returns.
The company is involved in a legal proceeding with the Maryland Department of Environment regarding stormwater compliance issues, which it is seeking to resolve through discussions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Forestar Group Inc quarterly 10-Q report dated January 23, 2025. To report an error, please email earnings@qz.com.