4/13/2007 - Modular home builder temporarily cuts production
Deer Valley Corp. said it has implemented a plan to curtail production of manufactured homes by about 20 percent during the first two quarters of 2007.
The company was responding to an anticipated 40-year low in industry shipment rates in the first half of the year, according to a release.
However, the company said it is now getting a surge in requests for proposals for multiple unit purchases of new modular homes, and it anticipates submitting bids in response to several of those RFPs. Most of those homes are slated to be delivered to the Gulf Coast reconstruction area in the third quarter of the year, Charles Masters, chief executive, said in the release.
In its annual report filed April 11 with the Securities and Exchange Commission, Deer Valley reported a net loss of $6.5 million, or $1.59 a share, on revenue of $65.5 million, for the year ended Dec. 31. The net loss included $9.3 million in dividends to preferred stockholders and a non-cash write-off of the "beneficial conversion feature" related to the sale of preferred shares early in 2006.
For the fourth quarter net income was $815,968 on revenue of $16.6 million, according to the release. The company did not provide per-share earnings for the quarter.
The impact of the beneficial conversation features on the company's financial statements ceased in the third quarter, the release said, and "we believe the positive fourth quarter earnings better communicate the true financial health of the company," the release said.
Deer Valley (OTCBB: DVLY), based in Tampa, is a manufactured home builder with operations in Guin and Sulligent, Ala.