Brookfield Homes Delivered 10% Growth in Earnings Per Share and Over $100 Million in Cash Flow in 2002.Business Editors DEL MAR Del Mar is the name of several places in the United States of America:
Investors, analysts and other interested parties can access Brookfield Brookfield. 1 Village (1990 pop. 18,876), Cook co., NE Ill., a residential suburb of Chicago; inc. 1893. The noted Chicago Zoological Park (Brookfield Zoo) is there. 2 City (1990 pop. 35,184), Waukesha co., SE Wis. Homes' Supplemental Information Package on Brookfield Homes' website under the Investor Relations/Financial Reports section at www.brookfieldhomes.com. Brookfield Homes' year end investor conference call can be accessed by teleconference on February February: see month. 14, 2003 at 12:00 noon (Eastern Time) at 416-695-9753 or 1-888-789-0089. The archived teleconference may be accessed by dialing 416-695-5286 or 1-800-758-7977 with access code 4032 through February 28, 2003. Alternatively, the conference call can be accessed by Webcast on the Brookfield Homes' website at www.brookfieldhomes.com. Brookfield Homes Corporation (NYSE NYSE See: New York Stock Exchange :BHS BHS beta-hemolytic streptococci. ) today announced strong financial results for the fourth quarter and year ended December December: see month. 31, 2002.
Results of Operations Three Months Ended Years Ended
Dec. 31 Dec. 31
(Millions, except per ------------------ ------------------
share amounts) 2002 2001 2002 2001
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Total Revenue $ 321 $ 323 $ 842 $ 799
Gross margin 65 58 177 166
Operating income 32 28 81 72
Net income 16 16 43 40
Earnings per share 0.52 0.48 1.35 1.23
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Financial Highlights On January January: see month. 7, 2003, Brookfield Homes began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol BHS following its spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from Brookfield Properties Brookfield Properties Corporation TSX: BPO NYSE: BPO is a Toronto-based North American commercial real estate company. Brookfield Asset Management owns 50% of its outstanding common shares. Corporation. For the year ended 2002, Brookfield Homes: -- Achieved net income of $43.3 million, a 9% increase over 2001, and earnings per share of $1.35, a 10% increase over the previous year. -- Generated $140 million of operating cash flow, which improved the company's net debt to total capitalization ratio from 62% in 2001 to 50% at December 31, 2002. -- Earned a 15% return on opening stockholders' equity. -- Initiated a semi-annual dividend payment of $0.08 per share, payable for the first time on June 30, 2003 to shareholders of record on June 16, 2003. In addition, the Board of Directors approved a share repurchase program which allows the company to repurchase up to $40 million of Brookfield Homes' outstanding common shares. "Our strong financial and operating performance this year reinforces our strategy of proactive asset management in high growth markets to meet the needs of our customers for move-up and luxury homes," commented Ian Cockwell, Brookfield Homes' President and Chief Executive Officer. 2002 Operating Highlights The residential market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Brookfield Homes benefited from the low interest rate environment during 2002. Homeowners took the opportunity to trade-up, and luxury homebuyers pursued the lifestyle advantages of master-planned communities. Within this strong market, Brookfield delivered 1,554 new homes and started the 2003 year with a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of 467 orders for new homes, which represents 30% of the company's planned home closings for 2003. During 2002, Brookfield Homes made significant progress in its existing developments and communities. -- San Diego/Riverside - Commenced grading on four new projects in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. County, a market in which Brookfield Homes owns approximately 3,183 lots. The company expects to deliver its first homes in these communities to homebuyers in 2004. In addition, Brookfield Homes commenced grading and model construction on Phase 1 at the Morningstar development in Riverside, which is scheduled to deliver over 190 homes in 2003. -- Southland/Los Angeles - Delivered 527 homes and successfully acquired control of over 480 lots, replenishing the company's lot inventories in this supply-constrained market. -- San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay - Proceeded with the development of a further 448 lots within the Windemere Windemere is the name of several places:
advanced entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. on optioned properties. -- Northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. - Acquired or optioned a total of 864 lots adjacent to the Braemar
Braemar is a village in Deeside, Aberdeenshire, Scotland. master-planned community and commenced home deliveries at the newest phase of this project. Outlook "Targeting to deliver 2,000 homes annually within two years in our supply-constrained markets, Brookfield Homes is well positioned to generate significant value for our shareholders, with high quality land holdings and a strong development pipeline. We believe that the positive growth dynamics in our markets, combined with the low interest rate environment will continue to drive demand for move-up and luxury homes. With local market expertise and financial strength to invest in new markets as opportunities arise, we are confident we can continue to deliver strong bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. growth and enhance value for our shareholders," concluded Cockwell. Brookfield Homes Corporation Brookfield Homes Corporation is a residential homebuilder and land developer, building homes and developing land in master-planned communities and infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. locations. We design, construct and market single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. and multi-family homes primarily to move-up and luxury homebuyers. We also develop land for our own communities and sell lots to other homebuilders. Our portfolio includes over 22,000 lots owned and controlled in strong markets in the San Francisco Bay Area; Southland south·land or South·land n. A region in the south of a country or an area. south  land·er n.Noun 1. / Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. ; San Diego / Riverside; and Northern Virginia. For more information, visit the Brookfield Homes website at www.brookfieldhomes.com. Note: Certain statements in this press release that are not historical facts, including information concerning possible or assumed future results of operations of the company, the company's future outlook, projected future home deliveries, and those statements preceded by, followed by, or that include the words "scheduled," "believe," "expect," "estimate," "target," "project," "plan," "intend" and "future," or similar expressions, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The forward-looking statements reflect the company's judgment and the company believes them to be reasonable. Nevertheless, any or all of the forward-looking statements included in this press release may turn out to be inaccurate due to known or unknown risks and uncertainties. As a result, actual results may differ materially from the results discussed in and anticipated by the forward-looking statements. Many important factors could affect the company's future results and could cause those results to differ materially from those expressed in the forward-looking statements contained herein. Such factors include, but are not limited to: general economic conditions, local real estate conditions; mortgage rates; availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay ; availability of suitable undeveloped land at acceptable prices; governmental regulation and environmental matters; availability of labor or materials and their costs; competitive conditions within the industry; consumer confidence; availability and cost of adequate insurance coverage; the company's ability to obtain surety bonds surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. ; the company's ability to develop and market its communities successfully; and other risks detailed in the company's filings with the Securities and Exchange Commission, including the company's Registration Statement on Form 10. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Brookfield Homes Corporation
Condensed Statements of Net Income
Three Months Ended Years Ended
Dec. 31 Dec. 31
(thousands, except per ------------------- --------------------
share amounts) 2002 2001 2002 2001
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Revenue
Housing $ 290,685 $ 284,587 $ 784,807 $ 728,848
Other revenues 29,564 38,842 56,860 70,357
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Total revenues 320,249 323,429 841,667 799,205
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Gross margin 64,103 57,670 176,851 165,698
Selling, general and
administrative expenses (20,413) (15,485) (60,822) (55,771)
Interest expense (12,040) (13,472) (35,316) (37,694)
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Operating income 31,650 28,713 80,713 72,233
Minority interest (4,041) (2,795) (8,566) (6,259)
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Net income before taxes 27,609 25,918 72,147 65,974
Income tax expense (11,042) (10,242) (28,858) (26,388)
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Net income $ 16,567 $ 15,676 $ 43,289 $ 39,586
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Weighted average shares
outstanding, basic and
diluted 31,600 32,420 32,044 32,048
Earnings per share, basic
and diluted $ 0.52 $ 0.48 $ 1.35 $ 1.23
Supplemental information
EBIT(1) $ 43,690 $ 42,185 $ 116,029 $ 109,927
Interest incurred 8,499 6,428 25,820 34,244
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(1) EBIT is defined as net income before interest expense, income
taxes and minority interest.
Brookfield Homes Corporation
Condensed Balance Sheets
Years Ended Dec. 31
-------------------
(thousands) 2002 2001
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Assets
Housing and land inventory $ 616,425 $ 633,400
Investments in housing and land joint ventures 80,959 94,188
Receivables and other assets 74,534 65,688
Cash and cash equivalents 35,903 756
Deferred tax asset 36,115 57,168
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$ 843,936 $ 851,200
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Liabilities and Stockholders' Equity
Project specific financings $ 288,040 $ 284,185
Accounts payable and other liabilities 112,086 50,071
Subordinated debt 98,300 214,935
Minority interest 24,772 15,029
Stockholders' equity 320,738 286,980
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$ 843,936 $ 851,200
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