Slide 1: Third Quarter 2015 Financial Results
Third Quarter 2015 Financial Results November 4, 2015 Exhibit 99.2
Slide 2: Notice to Investors
Notice to Investors This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,”
Slide 3: Tremendous Changes Underway at Forestar
Initiatives Reducing Costs Across the Entire Organization • Taking actions to eliminate over $13 million of G&A and segment operating expenses in 2016 vs 2015, an estimated 22% cost reduction • Additional cost reductions to be identified across organization Reviewing Entire Portfolio of Assets • Cor
Slide 4: Third Quarter 2015 Results Impacted By Deferred Tax Asset Valuation Allowance and Impairment Charges
Third Quarter 2015 Results Impacted By Deferred Tax Asset Valuation Allowance and Impairment Charges Principally Related To Non-Core Oil and Gas Assets 4 ($ in Millions, except per share data) Q3 2015 Q3 2014 Net Income (Loss) - As Reported ($164.2) $5.2 Net Income (Loss) Per Share - As Reported ($4
Slide 5: Segment Results Adversely Impacted By Impairment Charges Related to Non-Core Oil & Gas Assets
Segment Results Adversely Impacted By Impairment Charges Related to Non-Core Oil & Gas Assets 5 ($ in Millions, except per share data) Q3 2015 As Reported Q3 2015 Excluding Special Items* Q3 2014 As Reported Segment Earnings (Loss) Real Estate $5.2 $5.2 $16.0 Oil and Gas (86.2) (5.0) 6.0 Other Natur
Slide 6: Stable Market Demand in Texas with Construction and Inspection Delays Impacting Lot Sales Timing
Stable Market Demand in Texas with Construction and Inspection Delays Impacting Lot Sales Timing 6 Texas New Home Inventory Below Equilibrium 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5,000 10,000 15,000 20,000 25,000 30,000 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15
Slide 7: Pipeline of Well Located Class A Multifamily Communities
Pipeline of Well Located Class A Multifamily Communities Multifamily Development Projects – Q3 2015 ($ in millions) Project Market FOR Ownership Units % Complete Projected Total Development Cost* Projected Total FOR Contribution* Co m pl et e Eleven Austin 100% 257 100% $40 $25 Midtown Dallas 100% 3
Slide 8: For questions, please contact:
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group Inc 6300 Bee Cave Road Building Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestargroup.com FORESTAR
Slide 9: Third Quarter 2015: Segment KPI's, Earnings Reconciliations
Third Quarter 2015 - Segment KPI's - Earnings Reconciliations - Reconciliation of Non-GAAP Financial Measures FORESTAR
Slide 10: Third Quarter 2014 Non-Cash Gains and Lot Closing Delays Impact Year-Over-Year Real Estate Results
Third Quarter 2014 Non-Cash Gains and Lot Closing Delays Impact Year-Over-Year Real Estate Results ($7.2) ($2.5) $16.0 $1.6 $1.0 $0.2 ($2.2) ($1.7) $5.2 $0 $10 $20 Q3 2014 Multifamily and Income Producing Properties Residential & Commercial Tract Sales Undeveloped Land Sales Gains* Lot Sales Operati
Slide 11: Real Estate Segment KPI's
Real Estate Segment KPI’s Q3 2015 Q3 2014 YTD Q3 2015 YTD Q3 2014 Residential Lot Sales Lots Sold 301 323 1,109 1,834 Average Price / Lot* $76,600 $73,700 $75,000 $54,400 Gross Profit / Lot* $30,600 $34,900 $34,200 $22,800 Commercial Tract Sales Acres Sold 3 4 56 7 Average Price / Acre $28,000 $589,
Slide 12: Harvesting Value From Timberland
Harvesting Value From Timberland Segment Earnings (Loss) Reconciliation Q3 2014 vs. Q3 2015 ($ in millions) $0.7 ($0.5) ($0.2) ($0.2) $0.1 ($0.1) ($0.5) $0.0 $0.5 $1.0 Q3 2014 Operating Costs Fiber Earnings Gain on Timber Lease Termination Water Earnings Q3 2015 Se gm en t E ar ni ng s (L os s) Q3 2
Slide 13: Other Natural Resources Segment KPI's
Other Natural Resources Segment KPI’s Q3 2015 Q3 2014 YTD Q3 2015 YTD Q3 2014 Fiber Sales Pulpwood Tons Sold 45,600 71,500 109,100 157,900 Average Pulpwood Price / Ton $9.89 $11.18 $9.41 $11.00 Sawtimber Tons Sold 14,400 21,500 53,800 100,000 Average Sawtimber Price / Ton $20.41 $21.31 $21.22 $22.38
Slide 14: Continued Declining Oil Price Negatively Impact Oil & Gas Results
Continued Declining Oil Price Negatively Impact Oil & Gas Results $6.0 $1.2 $4.2 ($5.5) ($1.5) ($5.0) ($13.4) ($10) ($5) $0 $5 $10 $15 $20 Q3 2014 Exploratroy Dry Hole Costs Working Interest Volume Operating Expenses Working Interest Cost of Sales Working Interest Pricing Gain on Sale Legacy Mineral
Slide 15: Oil and Gas Segment KPI's
Oil and Gas Segment KPI’s Q3 2015 ** Q3 2014 YTD Q3 2015 ** YTD Q3 2014 Fee Leasing Activity Net Fee Acres Leased 1,720 744 3,343 3,865 Average Bonus / Acre $291 $205 $298 $320 Total Oil and Gas Interests * Oil Produced (Barrels) 278,900 250,500 810,800 632,800 Average Price / Barrel $40.66 $86.13 $
Slide 16: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) Forestar’s Segment EBITDA is a non-GAAP financial measure within the meaning of Regulation G of the Securities and Exchange Commission. Non-GAAP financial measures are not in accordance with, or an alternative to, U.S. Generally Accepted Acco
Slide 17: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) 17 In our third quarter and first nine months 2015 earnings release and conference call presentation materials furnished to the Securities and Exchange Commission on Form 8-K on November 4, 2015, we used certain non-GAAP financial measures. T
Slide 18: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) 18 In our third quarter and first nine months 2015 earnings release and conference call presentation materials furnished to the Securities and Exchange Commission on Form 8-K on November 4, 2015, we used certain non-GAAP financial measures. T
Slide 19: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) 19 In our third quarter and first nine months 2015 earnings release and conference call presentation materials furnished to the Securities and Exchange Commission on Form 8-K on November 4, 2015, we used certain non-GAAP financial measures. T
Slide 20: For questions, please contact:
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group Inc 6300 Bee Cave Road Building Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestargroup.com FORESTAR