11/8/2010 - Deer Valley Corp files 10-Q for 3rd Quarter 2010
On Friday, November 5, 2010, Deer Valley Corporation ("Deer Valley" or the "Company") (OTC.BB:DVLY - News), filed a Form 10Q for the quarter ending September 30, 2010 reporting net earnings for the 3rd quarter 2010 of $676,968, an improvement over both the 2nd quarter 2010 earnings of $603,054 and the 3rd quarter 2009 loss of $125,853. The improvement in earnings as compared to the 2nd quarter 2010 has been achieved despite the reduction in revenues that was forecasted in the Company's August 11, 2010 press release.
Deer Valley's CFO Steve Lawler commented, "The earnings increase is attributable to a combination of factors. During the 3rd quarter of 2010, our product margins have improved to 23.2% of net revenues. The increase in product margins is attributable to a modest decrease in raw material costs, an overall easing of commodity pressures and an increase in our average wholesale price per unit. The reduced level of warranty service claims has led to a $65,000 reduction in our accrued Warranty Provision, during the third quarter. Finally, the third quarter 2010 income included derivative income of $42,723 that primarily resulted from the relative stability of the Company's share price during the quarter. Future variations in income related to derivative income will be largely mitigated by the Company's recently announced repurchase of a majority of the Company's outstanding warrants."
The Company's CEO, Charles G. Masters, added, "The national economic weakness continues to be concentrated in the housing sector. We believe that Deer Valley's ability to sustain positive earnings in this environment is a testimony to our innovative products; the dedication of our staff to cost control; the effectiveness of our dealer base in presenting our products; and the ability of our dealers to assist potential home buyers in locating lenders that are committed to providing mortgage loans to the affordable home market." Mr. Masters added, "We must again caution investors that the two toughest quarters of the homebuilders' year are still ahead and economic predictability remains extremely limited."
Forward-Looking-Statement: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties. Such forward-looking statements are not guarantees of performance, and Deer Valley's results could differ materially from those contained in such statements. You can generally identify forward-looking statements through words and phrases such as "forecast," "seeking," "pursuing," "anticipate," "believe," "estimate," "expect," "intend," "plan," "budget," "project," "may be," "may continue," "may likely result," and similar expressions. Such forward-looking statements speak only as of the date of this release, and Deer Valley undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.
About Deer Valley
Deer Valley is a growth-oriented manufactured home builder with headquarters in Tampa, Florida and operations in Guin, Alabama. The Company is dedicated to offering high quality homes that are delivered with a sense of warmth, friendliness, and personal pride. The Company also owns one idle plant in Sulligent, Alabama.
The corporate offices of Deer Valley Corporation are located at 3111 W. Dr. MLK Blvd., Tampa, Florida 33607.
Additional information can be found at: http://www.deervalleycorp.com.