The 2003 net income includes an $8.6-million tax benefit resulting from a tax credit of $8.6 million as the result of eliminating certain income tax reserves, a tax credit of $4 million as a result of reducing the valuation allowance for deferred income taxes and income tax expenses of $4.1 million.

Last year, pre-tax income from operations was $9.9 million, compared with $5.6 million the year before. Net income per diluted share was $2.11 last year, up from 64 cents in 2002. In addition, the company had total assets of $362.7 million last year, down slightly from nearly $386.1 million the year before.

Avatar Holdings is a publicly traded, diversified real estate company with real estate operations mainly in Florida and Arizona. The company is involved in development, commercial and industrial properties, property management, home building, cable television and other operations, including the development of Harbor Islands in Hollywood, FL, and the joint venture development with the Plaza Group for the $200-million condominium project Ocean Palms on Hollywood Beach.