4/22/2008 - Deer Valley moves into multi-family construction
Manufactured homebuilder Deer Valley Corp. has been awarded a $16.1 million construct to build more than 120 twin-townhome units for a 264-acre master-planned residential community in Ocean Springs, Miss.
Deer Valley (OTC BB: DVLY), a Tampa company that builds through its Deer Valley Homebuilders Inc. subsidiary in Guin and Sulligent, Ala., was awarded the contract by M&C Development LLC as part of a rental community that will be known as Orleans Place. The total contract is expected to reach as much as $25 million for Deer Valley.
Construction and delivery of the first homes in Phase I is expected to begin in the second quarter of 2008.
The work comes as Deer Valley continues to construct cottages for the Mississippi state government, work that has brought in some $25 million to the company so far.
"Deer Valley has focused its modular program on individual housing units which have sufficient unit-to-unit commonality to significantly benefit from the economies of the manufacturing process," said Joel Logan, president of Deer Valley Homebuilders, in a release. "The Orleans Place unit fit perfectly into that business model while extending our product line to include multi-family units."
Deer Valley had net income of $1.1 million, or 5 cents per share, in the fourth quarter reported last month. That was up 57 percent over the $700,000, or 3 cents per share, profit the company earned during the final quarter of 2006. Revenue rose from $16.7 million to $17.5 million, although year-over-year revenue was down 3.4 percent from $65.6 million in 2006 to $63.3 million in 2006.