Newmark parent considers Ch. 11 bankruptcy
The parent of Newmark Homes, reported a loss of $617 million, or $10.43 a share, in the third quarter, up substantially from its year-earlier loss of $80 million, or $1.34 a share. The Hollywood, Fla.-based TOUSA said in a statement that based on its most recent earnings, "the company believes there is substantial doubt about its ability to continue as a going concern." The company went on to say that it is considering all available in- and out-of-court restructuring and reorganization alternatives including Chapter 11.

Newmark parent considers Ch. 11 bankruptcy
Austin Business Journal

TOUSA Inc. (NYSE:TOA), the parent of Newmark Homes, reported a loss of $617 million, or $10.43 a share, in the third quarter, up substantially from its year-earlier loss of $80 million, or $1.34 a share.

The Hollywood, Fla.-based TOUSA said in a statement that based on its most recent earnings, "the company believes there is substantial doubt about its ability to continue as a going concern." The company went on to say that it is considering all available in- and out-of-court restructuring and reorganization alternatives including Chapter 11.

Newmark is one of several homebuilders under TOUSA operating throughout Florida, the Mid-Atlantic, Texas and the West. According to the company's Web site. Newmark has homes in 22 different communities across the Austin area ranging in price from $130,000 to $466,000. Newmark is also building homes in San Antonio, Dallas, Houston and Nashville.

TOUSA said homebuilding revenue fell 15 percent to $492.9 million from $576.8 million because of a decrease in revenue from home sales, down to $449.6 million in the recent quarter from $563 million in the year-ago quarter. This was partially offset by an increase in revenue from land sales to $43.3 million from $13.8 million.

The average price of homes delivered decreased to $308,000 from $318,000 a year ago.

The company also reported that the New York Stock Exchange may institute delisting procedures against TOUSA if its stock trades at an "abnormally low" price. Its shares have been halted and have traded as low as 35 cents.

In December 1999, the predecessor to TOUSA Inc. acquired 80 percent of Newmark's stock. That same group acquired 100 percent of Engle Holding Corp. in 2000 and in 2002 Engle and Newmark merged to form TOUSA Inc.

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