Forestar Group Inc · NYSE:FOR
Forestar — Forestar Real Estate Group — Q1 2008 Earnings Presentation
16 slides from Forestar's earnings presentation, May 7, 2008
Slide 1: First Quarter 2008 Financial Results
First Quarter 2008 Financial Results May 7, 2008
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These statements reflect management's current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and unc
Slide 3: Maximize and Grow Long-Term Shareholder Value
Maximize and Grow Long-Term Shareholder Value Entitlement and Development of Real Estate Housing markets continue to be significantly challenged Realization of Value from Natural Resources Recent activity is encouraging Accelerated Growth through Strategic and Disciplined Investment in Real Estate C
Slide 4: First Quarter 2008 Results
First Quarter 2008 Results ($ in Millions, except per share data) 1st Qtr 2008 1st Qtr 2007 4th Qtr 2007 Net Income ($ 0.2) $ 0.6 $ 0.1 Earnings Per Share - Basic ($0.01) $0.02 $ - 1st Qtr. 2008 weighted average basic shares outstanding were 35.5 million 1st Qtr. 2008 financial results include $1.3
Slide 5: Segment Earnings
Segment Earnings ($ in Millions) 1st Qtr 2008 1st Qtr 2007 4th Qtr 2007 Real Estate $ 3.5 $ 3.7 ($ 0.2) Mineral Resources 6.5 3.4 3.7 Fiber Resources 2.8 0.3 3.8 Total $12.8 $7.4 $7.3 1st Qtr. 2008 fiber resources segment earnings include $1.4 million gain from partial termination of a timber lease
Slide 6: Pipeline Status & Key Performance Indicators
1st Qtr. 2008 Pipeline Status & Key Performance Indicators
Slide 7: Real Estate Pipeline
Real Estate Pipeline - 1st Qtr. 2008 Note: Estimated acres and lots may vary * Excludes Forestar's 58% ownership interest in the Ironstob venture which controls approx. 17,000 acres of undeveloped land Real Estate Undeveloped In Entitlement Process Entitled Developed & Under Development Total Acres*
Slide 8: Real Estate Segment KPI's
Real Estate Segment KPI's 1st Qtr 2008 1st Qtr 2007 4th Qtr 2007 Residential Lot Sales * Lots Sold 388 485 309 Average Price / Lot $46,200 $55,800 $45,900 Gross Profit / Lot $17,300 $19,800 $12,600 Commercial Tract Sales * Acres Sold 22 30 23 Average Price / Acre $84,700 $294,000 $390,600 Land Sales
Slide 9: Entitlement KPI's
Entitlement KPI's 1st Qtr 2008 1st Qtr 2007 4th Qtr 2007 Acres Moved Into Entitlement 2,880 1,500 2,400 Entitlements Total Acres Entitled 420 190 740 Residential Lots Entitled 120 110 290 Commercial Acres Entitled 260 - - Acres Moved Into Development - - 180 Note: Acres and lots are estimates and ma
Slide 10: Entitlement Activity - Q1 2008
Entitlement Activity - Q1 2008 Pickens School - Pickens Co. Entitlements received: 120 Residential lots 260 Commercial acres 420 Total acres Commercial zoned as "highway business" and includes: Office Retail Multi - Family Proposed Site Plan Site Location "Highway Business" zoning provides for flexi
Slide 11: Mineral Resources Segment KPI's
Mineral Resources Segment KPI's 1st Qtr. 2008 1st Qtr. 2007 4th Qtr. 2007 Minerals Net Acres Leased 5,293 1,990 549 Avg. Bonus / Acre $678 $290 $350 Active Wells 339 299 331 Natural Gas Production (Mcf) 255,900 273,300 296,200 Oil Production (Barrels) 19,400 25,000 21,400 Segment Revenues ($ in Mill
Slide 12: East Texas Mineral Resources
East Texas Mineral Resources Significant increase in leasing activity related to expansion of Cotton Valley and James Lime natural gas formations
Slide 13: Fiber Resources Segment KPI's
Fiber Resources Segment KPI's 1st Qtr. 2008 1st Qtr. 2007 4th Qtr. 2007 Fiber Sales Tons Sold 209,200 280,300 317,000 Average Price / Ton $10 $11 $11 Recreational Leases (acres) 284,500 283,500 287,200 Segment Revenues ($ in Millions) $2.5 $3.0 $3.6
Slide 14: Historical Segment Earnings
Historical Segment Earnings ($ in Millions) 1st Qtr 2007 2nd Qtr 2007 3rd Qtr 2007 4th Qtr 2007 Full Year 2007 Real Estate $ 3.7 $23.0 $13.0 ($0.2) $ 39.5 Mineral Resources 3.4 4.7 6.8 3.7 18.6 Fiber Resources 0.3 2.4 1.4 3.8 7.9 Total $7.4 $30.1 $21.2 $7.3 $66.0
Slide 15: Maximize and Grow Long-Term Shareholder Value
Maximize and Grow Long-Term Shareholder Value Entitlement and Development of Real Estate Entitle aggressively, exercise investment discipline in development Realization of Value from Natural Resources Increase acreage in play and ensuing royalties Accelerated Growth through Strategic and Disciplined
Slide 16: Forestar Real Estate Group
WS FORESTAR Real Estate Group
Forestar Real Estate Group — Q1 2008 Earnings Presentation on 6ix