The backlog at the end of fourth quarter was almost $4.5 billion, down 25% compared with just north of $6 billion for the parallel 2005 time frame. Signed contracts plunged 55% to $709.6 million in the most recent quarter, compared with nearly $1.6 billion in the same quarter a year ago.

Furthermore, the quarterly contract total was negatively impacted by higher-than-normal cancellations. Cancellations represented 37% of contracts signed in this fourth quarter, compared with 18% of those signed in this year's third quarter. Nearly 25% of the cancelled contracts in fourth quarter occurred in two markets: Orlando and Northern California.

In light of these slides, the company has reduced its land position by approximately 6,500 lots. It ended the quarter with approximately 74,000 lots, down 19% from the approximately 91,200 lots it owned in mid-year.