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DEL WEBB CORP. ANNOUNCES FIRST QUARTER EARNINGS

 PHOENIX, Oct. 22 /PRNewswire/ -- Del Webb Corp. (NYSE: WBB) today reported earnings from continuing operations of $1.8 million, or 12 cents per share, for its first quarter ended Sept. 30, 1993, compared to $3.3 million, or 20 cents per share, in the first quarter of 1992. Revenues in the first quarter increased to $87.5 million from $65.9 million in the year-earlier quarter. As anticipated and reported in August, first quarter operating earnings were depressed by higher lumber costs on new homes delivered during the period. Revenues rose on a substantial increase in new home closings.
 Del Webb's net earnings for the first quarter totaled $1.8 million, or 12 cents per share, compared to $23.3 million, or $1.45 per share a year earlier. Earnings for the first quarter ended Sept. 30, 1992, included a non-cash $20 million gain from the implementation of a new accounting standard for income taxes.
 Strong revenue growth in the first quarter reflected rising new home deliveries in each of Del Webb's Sun City active adult communities including Sun City Palm Springs, which had not begun closing homes a year ago. Company-wide, Del Webb delivered 595 new homes during the first quarter, up 24 percent from 480 in the quarter a year earlier.
 Chairman and Chief Executive Officer Phil Dion said lumber prices rose sharply in the first half of 1993, depressing profit margins on the company's backlog of undelivered homes. Since then, the company has increased prices to reflect higher lumber costs and adjusted its sales and marketing practices to shorten the contract period for its new homes.
 "Recognizing the pressure erratic lumber prices would have on our first quarter operating margins, we've taken steps to mitigate the impact of potentially volatile construction costs on future operating results," Dion said. "If strong sales continue, we believe our actions should enable us to match or possibly exceed last year's earnings from continuing operations in this fiscal year."
 As reported earlier this month, Del Webb's net new orders in the first quarter declined 2 percent, due entirely to a drop in new orders at Sun City Palm Springs. Despite the effects of the weak Southern California economy, strong order rates in the company's Arizona and Nevada housing operations boosted its total backlog to 1,868 units at Sept. 30, 1993, up 20 percent from a year ago. New orders at each of the company's other Sun City communities, and from its conventional home builder, Coventry Homes, rose significantly.
 During the first quarter, the company also repurchased 996,700 shares of its stock at an average cost of $12.78 per share.
 Del Webb Corp. is the nation's leading developer of active adult communities with operations in the Phoenix, Tucson, Ariz., Las Vegas, and Palm Springs, Calif., metropolitan areas.
 DEL WEBB CORP. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Unaudited)
 (In Thousands Except Share Data)
 Three Months Ended
 Sept. 30,
 1993 1992
 Revenues $87,534 $65,919
 Cost of sales 69,819 50,259
 Gross margin 17,715 15,660
 Selling, general and
 administrative expenses 14,894 10,843
 Operating earnings 2,821 4,817
 Income tax expense 987 1,542
 Earnings from continuing
 operations 1,834 3,275
 Cumulative effect of
 accounting change --- 20,000
 Net earnings $1,834 $23,275
 Earnings Per Share
 Information
 Weighted average common
 shares outstanding 15,364,363 15,997,096
 Net earnings
 per common share:
 Continuing operations $0.12 $0.20
 Cumulative effect of
 accounting change --- $1.25
 Net earnings per common share $0.12 $1.45
 Cash dividends per common share $0.05 $0.05
 DEL WEBB CORP. AND SUBSIDIARIES
 Selected Operating Data
 Three Months
 Ended Sept. 30, Change
 1993 1992 Amount Percent
 Operating Data:
 Number of net new
 orders:
 Sun City West 248 200 48 24.0 pct
 Sun City Tucson 78 54 24 44.4 pct
 Sun City Las Vegas 207 181 26 14.4 pct
 Sun City Palm Springs 56 257 (201) (78.2 pct)
 Total active adult
 communities 589 692 (103) (14.9 pct)
 Coventry Homes 174 84 90 107.1 pct
 Total net new orders 763 776 (13) (1.7 pct)
 Number of home closings:
 Sun City West 250 176 74 42.0 pct
 Sun City Tucson 63 41 22 53.7 pct
 Sun City Las Vegas 150 145 5 3.4 pct
 Sun City Palm Springs 35 N/A 35 (a)
 Total active adult
 communities 498 362 136 37.6 pct
 Coventry Homes 97 118 (21) (17.8 pct)
 Total home closings 595 480 115 24.0 pct
 At Sept. 30, Change
 1993 1992 Amount Percent
 Backlog Data:
 Homes under contract (backlog):
 Sun City West 663 508 155 30.5 pct
 Sun City Tucson 283 239 44 18.4 pct
 Sun City Las Vegas 488 376 112 29.8 pct
 Sun City Palm Springs 146 257 (111) (43.2 pct)
 Total active adult
 communities 1,580 1,380 200 14.5 pct
 Coventry Homes 288 179 109 60.9 pct
 Total backlog 1,868 1,559 309 19.8 pct
 Aggregate contract sales
 amount (dollars in millions) $292 $243 $49 20.2 pct
 Average contract sales amount
 per home (in thousands) $156 $156 --- ---
 (a) Not a meaningful percentage.
 DEL WEBB CORPORATION AND SUBSIDIARIES
 Selected Operating Data, Continued
 Three Months Ended June 30,
 Amount Change
 1993 1992 Amount Percent
 Average Revenue Per
 Home Closing:
 Sun City West $133,700 $133,700 --- ---
 Sun City Tucson $157,100 $160,800 (3,700) (2.3 pct)
 Sun City Las Vegas $144,100 $146,500 (2,400) (1.6 pct)
 Sun City Palm Springs $185,100 N/A 185,100 (a)
 Active adult
 communities weighted
 average $143,400 $141,900 1,500 1.1 pct
 Coventry Homes $121,600 $97,600 24,000 24.6 pct
 Total weighted average $139,900 $131,000 8,900 6.8 pct
 Operating Statistics
 and Averages:
 Gross margin as a
 percentage of revenues 20.2 pct 23.8 pct (3.6 pct) (15.1 pct)
 Selling, general and
 administrative expenses
 as a percentage
 of revenues 17.0 pct 16.4 pct 0.6 pct 3.7 pct
 Operating earnings as a
 percentage of revenues 3.2 pct 7.3 pct (4.1 pct) (56.2 pct)
 Average gross margin
 from home closings
 -- per home (dollars
 in thousands) $28.1 $31.3 ($3.2) (10.2 pct)
 Ratio of home closings
 to homes under contract
 in backlog at beginning
 of period 35.0 pct 38.0 pct (3.0 pct) (7.9 pct)
 (a) Not a meaningful percentage.
 -0- 10/22/93
 /CONTACT: Ken Plonski of Del Webb, 602-808-8171 or (home) 602-972-1210/


CO: Del Webb Corp. ST: Arizona IN: CST SU: ERN

MF-LS -- SD001 -- 5569 10/22/93 08:02 EDT
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