8/14/2007 - Deer Valley's second quarter better
Factory home sales may be down compared to last year, yet Deer Valley Corp. still found a way to make a profit.
The Tampa-based builder reported second-quarter earnings of $388,054, or 2 cents a share, on revenue of $15.9 million. That's significantly better than the $1.2 million ($1.22 a share) loss Deer Valley (OTC BB: DVLY) posted in the second quarter of 2006 on revenue of nearly $19 million.
Although not included in its current quarterly report, Deer Valley officials said last July they sold 250,000 shares of Series E Convertible Preferred Stock to a single institutional shareholder of the company for $562,500, or $2.25 per share.
Last week, its Deer Valley Homebuilders subsidiary entered into a revolving bridge loan and security agreement with Fifth Third Bank (NASDAQ: FITB) for a $5 million line of credit, according to Securities and Exchange Commission filings. The line of credit is being used as a standby source of working capital to help the company fulfill contracts with the Mississippi state government to build housing in the state.
Deer Valley picked up that contract through its plant in Guin, Ala., which will produce 50 two-bedroom and 100 three-bedroom cottages as part of a program designed to test and evaluate future disaster housing units, company officials said. The value of the pilot contracts is said to be $7.5 million, and all units should be delivered by the end of the third quarter to staging areas near the Gulf of Mexico coast in Mississippi.
Although based in Tampa, Deer Valley operates primarily through its Deer Valley Homebuilders subsidiary in Alabama.