On the top line, revenues fell 22.9% year/year to $456.7 million, which, on the other hand, easily fell short of expectations.
Moving a little further down the income statement, the company's homebuilding gross margin percentage, after cost of sales interest expense and land charges, improved notably year/year, rising to 15.4% in the quarter compared with 12.8% in the prior year's third quarter.
Another bright spot in the quarter was higher contracts per community, which rose for the 13th consecutive quarter. More specifically, contracts per community, including unconsolidated joint ventures, increased 9.8% to 10.1 contracts per community in the quarter versus 9.2 contracts per community, including unconsolidated joint ventures, in last year's third quarter.
Separately, as of July 31, 2018, consolidated lots controlled rose 20% year/year from 25,834 lots at July 31, 2017. Sequentially, lots rose by 17% to 30,974 from 26,537 lots at April 30, 2018.
By the end of the quarter, the company's community count, including unconsolidated joint ventures, was 143 communities, which was a 14.4% year-over-year decrease from 167 communities at July 31, 2017.
Looking ahead, one area the company is focusing on is seeing further growth in its overall land position, which should help lead to increases in its community count.
On a net basis, the Street is clearly pleased with overall results, which is reflected in its stock this morning, which is up 6% in early trade.