investor relations
10/18/2007 - Mississippi state officials extend contract with Deer Valley
Manufactured home builder Deer Valley Corp. will receive an additional $7.2 million from the Mississippi state government to build another 150 two-bedroom cottages in designated staging areas in the state's Gulf Coast region that was ravaged by hurricanes over the past few years.
The overall investment Mississippi has made in Deer Valley (OTC BB: DVLY) will now top $14.7 million.
"The production of the Mississippi cottages has given us some interesting challenges, but the addition of these units to our production schedule has made a positive contribution to our maintaining a near optimum backlog during an otherwise challenging period for home builders," said Joe Logan, president of the company's operating subsidiary Deer Valley Homebuilders Inc., in a release. "These contracts have given us a great opportunity to showcase our modular production capability while we continue to support our dealers with uninterrupted deliveries of our proprietary product line."
Deer Valley Homebuilders opened a $5 million line of credit with Fifth Third Bank (NASDAQ: FITB) in August to provide a standby source of working capital to help the company fulfill its original contract with Mississippi through its Guin, Ala., location.
Deer Valley reported second quarter earnings of $388,054, or 2 cents a share, on revenue of $15.9 million in August. That was up over the $1.2 million loss ($1.22 a share) the company suffered in the second quarter of 2006 on revenue of $19 million.
Although based in Tampa, Deer Valley operates primarily through its Deer Valley Homebuilders subsidiary in Alabama.