Forest City Enterprises Inc. (FCE-A), Tuesday reported its second-quarter financial results, reporting a loss that narrowed from the corresponding quarter last year, primarily helped by an increase in EBDT - earnings before depreciation, amortization and deferred taxes. Quarterly revenues, however, dropped from the corresponding quarter last year.
Forest City Enterprises' second-quarter loss attributable to the company narrowed to $1.8 million or $0.01 per share, from a loss of $8.4 million or $0.08 per share in the same quarter a year ago.
Earnings from continuing operations for the second quarter was $1.964 million or $0.01 per share, compared to loss from continuing operations of $8.779 million or $0.08 per share in the same quarter last year.
Revenues for the second quarter , however, dropped to $316.7 million from $327.6 million in the quarter a year ago, below the Street's view of $349.90 million. Three analysts had a revenue estimate of $349.90 million for the quarter.
Second-quarter EBDT increased 8.1% to $95.5 million from EBDT of $88.3 million in the same quarter a year ago, however, decreased 22.0% to $0.64 from $0.82 on a per share basis. EBDT for the second quarter was positively impacted by an increase in pre-tax EBDT in the Commercial and Residential Segment, Land Segment.
For the six-months period, net loss also narrowed to $32.5 million or $0.26 per share from $48.8 million or $0.47 per share in the same period a year ago.
Revenues for the period declined to $316.7 million from $327.6 million in the same period last year.
Looking forward to the second half of the year, the company expects no meaningful improvement in market conditions in the near or mid-term.
Charles Ratner, president and chief executive officer, Forest City Enterprises said "We believe the five strategies we have put in place are continuing to strengthen our balance sheet and income statement, which, in turn, gives us the opportunity to take advantage of dislocations created by current market conditions. We also continue to nurture key opportunities in our pipeline in order to be prepared to activate and leverage these projects when economic and financial-market conditions improve."
FCE-A closed Tuesday's trading at $9.14, up $0.22 or 2.47%, on a volume of 1.524 million shares on the NYSE.
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