Brookfield Homes Reports First Quarter Earnings and Current 2005 Sales in Hand Over 75%.DEL MAR Del Mar is the name of several places in the United States of America:
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' first quarter investor conference call can be accessed by teleconference on May 3, 2005 at 11:00 am (Eastern Time) at 1-800-251-4491, toll free in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The archived teleconference may be accessed by dialing 1-800-807-5315, toll free in North America through May 17, 2005. Alternatively, the conference call can be accessed by Webcast on 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 first quarter ended March 31, 2005: - Revenue increased 6% to $152 million compared to $143 million for the same period in 2004. The 2005 increase in revenue is primarily due to an increase in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of our homes to $645,000. - Net income for the quarter totaled $19 million or $0.60 per share, an increase of $9 million or $0.29 per share from the same period in 2004. The 2005 results include net income after tax of $3 million from the bulk sale of 41 lots in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Also contributing to the increase in net income are improvements in the housing gross margin to 29% from 22% for the same period in 2004. - First Quarter 2005 Financial Highlights
Results of Operations Three Months Ended March 31
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(Millions, except per share amounts) 2005 2004
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Total revenue $ 152 $ 143
Gross margin 48 33
Contribution from bulk land sales to net
income 3 -
Net income 19 10
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Earnings per share - diluted
- Excluding bulk land sales $ 0.51 $ 0.31
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- Bulk land sales 0.09 -
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$ 0.60 $ 0.31
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Operating Highlights - As a result of strong market conditions and growth in the number of available active selling communities, the company has in 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. to date over 75% of its planned home closings for 2005. - Brookfield Homes' lots owned or controlled total 29,748, an increase of 6% from inventory levels at the end of 2004. Direct ownership of 12,718 lots, provides strong visibility on our future cash flows. The company also controls under option a further 17,030 lots with the objective of adding value through land entitlements.
- A summary of our land holdings, by region, follows:
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San Francisco Southland/ San Diego/
Bay Area Los Angeles Riverside
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Lot supply
Owned 1,368 614 6,435
Optioned 2,625 2,596 2,322
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Total 3,993 3,210 8,757
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Geographic diversification
Of lots 13% 11% 30%
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Washington
Sacramento D.C. Area Total
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Lot supply
Owned 310 3,991 12,718
Optioned 4,210 5,277 17,030
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Total 4,520 9,268 29,748
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Geographic diversification
Of lots 15% 31% 100%
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Other Developments - 2005 Earnings Guidance - As a result of continued strong markets and the recent bulk land sale, the company expects earnings per share to grow to $5.35 in 2005 from $4.64 in 2004, and its previous guidance of $5.25. This estimate does not include any possible gains from bulk land sales for the remainder of 2005. - Bulk Land Sale - The company closed a bulk land sale of 41 lots in California in the first quarter of 2005, which contributed a net after tax gain of $3 million. - Regular Dividend - On May 2, 2005, the board of directors approved an increase in its semi-annual dividend to $0.16 per share. The increased dividend is payable on June June: see month. 30, 2005 to shareholders of record on June 15, 2005. Outlook "Demand for luxury and move-up housing remained strong in our markets, driven by the continued low interest rate environment and constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. supply of homes. We currently have closed or in backlog over 75% of our planned 2005 home closings and we are on-track to reach over 90% of 2005 planned home closings by the end of the second quarter. The 13,000 owned lots provide strong visibility on our future cash flows. As well, we control 17,000 optioned lots, from which we continue to create value for shareholders as we process this inventory into lots available for homebuilding," concluded Ian Cockwell, Brookfield Homes' President and Chief Executive Officer. 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 entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: and develop land for our own communities and sell lots to other homebuilders. Our portfolio includes 30,000 lots owned and controlled in the 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 ; 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 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. / Riverside Riverside. 1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. ; Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. ; and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C. Area markets. 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, expected home closings and deliveries (and the timing thereof), targeted 2005 earnings guidance, the company's future outlook and growth plans, and those statements preceded by, followed by, or that include the words "planned", "should", "goals", "expected", "potential," "estimate," "targeted," "scheduled" 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. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the anticipated future results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include, but are not limited to: changes in general economic, real estate and other conditions; mortgage rate changes; availability of suitable undeveloped land at acceptable prices; adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labor or materials or increases in their costs; ability to develop and market our master-planned communities successfully; confidence levels of consumers; ability to raise capital on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of adequate coverage and
ability to obtain surety bonds surety bondAn 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. ; competitive conditions in the homebuilding industry, including product and pricing pressures; and additional risks and uncertainties referred to in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other SEC filings, many of which are beyond our control. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Brookfield Homes Corporation
Consolidated Statements of Income
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(unaudited)
Three Months Ended March 31
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(thousands, except per share amounts) 2005 2004
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Revenue
Housing $ 143,083 $ 138,958
Land and other revenues 9,072 4,231
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Total revenue 152,155 143,189
Direct cost of sales (103,978) (110,051)
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48,177 33,138
Equity in earnings from housing and land
joint ventures 7,312 851
Selling, general and administrative
expense (21,224) (16,171)
Minority interest (3,209) (2,146)
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Net income before taxes 31,056 15,672
Income tax expense (12,112) (5,955)
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Net income $ 18,944 $ 9,717
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Weighted average shares outstanding
Basic 30,865 30,881
Diluted 31,517 31,423
Earnings per share
Basic $0.61 $0.31
Diluted $0.60 $0.31
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Brookfield Homes Corporation
Condensed Balance Sheets
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(unaudited)
(thousands) March 31, 2005 Dec. 31, 2004
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Assets
Housing and land inventory $ 787,775 $ 679,930
Investments in housing and land joint
ventures 49,647 59,810
Consolidated land inventory not owned 42,131 47,240
Receivables and other assets 29,799 73,986
Cash and cash equivalents 124,666 186,731
Deferred income taxes 34,516 33,924
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$ 1,068,534 $ 1,081,621
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Liabilities and Stockholders' Equity
Project specific and other financings $ 529,898 $ 512,098
Accounts payable and other liabilities 209,128 256,985
Minority interest 65,404 66,422
Stockholders' equity 264,104 246,116
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$ 1,068,534 $ 1,081,621
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Brookfield Homes Corporation (NYSE:BHS) |
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