Dominion Homes Reports Earnings for the First Quarter of 2005.DUBLIN, Ohio Dublin is a city in Delaware, Franklin, and Union counties in the U.S. state of Ohio. The population was 31,392 at the 2000 census. In 2006, the population was estimated to be 36,565[1], and Dublin continues to be one of the fastest-growing suburbs of Columbus. -- Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. Homes, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DHOM) reported net income of $642,000, or $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the first three months of 2005 compared to $5.0 million, or $0.62 per diluted share, for the three months ended March 31, 2004. The lower net income for the first quarter of 2005 is principally due to the delivery of 25% fewer homes and a 3.3% decline in gross margin as compared to the first quarter of 2004. The average price of homes delivered increased 6.9% to $191,500 from $179,200, somewhat offsetting the effects of the delivery of fewer homes and the lower gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. during the period. The Company delivered fewer homes during the first quarter of 2005 because of the decline in home sales experienced during the second half of 2004, which resulted in a lower 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 homes to deliver during the first quarter of 2005. Revenues for the first quarter of 2005 were $92.6 million (including $1.1 million of other income), from the delivery of 478 homes, compared to $115.7 million (including $2.1 million of other income), from the delivery of 634 homes, for the first quarter of 2004. The decline in homes delivered also impacted the Company's gross profit, which declined to $19.6 million for the first quarter of 2005 from $28.2 million for the first quarter of 2004. The Company's gross profit margin for the first quarter of 2005 declined to 21.1% from 24.4% for the first quarter of 2004. This decline was due primarily to increases in the cost of constructing homes, higher lot costs and the expensing of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.0 million of deposits and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. costs incurred for land that the Company decided not to purchase. Selling, general and administrative expenses declined $2.7 million to $16.0 million for the first quarter of 2005 compared to $18.7 million for the first quarter of the previous year. This reduction was due to the Company's efforts to lower overhead expenses, reduced incentive compensation expense of approximately $0.8 million, primarily related to changes in the market value of the Company's common shares, and the decrease in selling, general and administrative expenses associated with selling fewer homes. Interest expense for the period increased to $2.6 million compared to $1.6 million for the same period the previous year, primarily due to the Company's greater investment in land and land development inventories and less interest capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. during the first quarter of 2005 than the first quarter of 2004. As reported on April 7, 2005, the Company sold 626 homes, with a sales value of $120.8 million, during the first quarter of 2005 compared to record sales of 950 homes, with a sales value of $176.9 million, during the first quarter of 2004. The number of active sales communities at March 31, 2005 increased to 62 from 56 at March 31, 2004. The Company's backlog at March 31, 2005 was 780 sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. , with a sales value of $157.8 million, compared to 1,335 sales contracts, with a sales value of $263.3 million, at March 31, 2004. Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. G. Borror, Chief Executive Officer, commented, "Our first quarter results were better than our original projections. We continue to expect that 2005 will be a profitable year, but that net income will be lower than in recent years. In the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. , we are focused on increasing our sales, delivering well-built well-built Adjective strong and well-proportioned well-built adj [person] → fornido well-built well adj [house] → homes, and reducing our excess developed lot supply. As we move through the year, we are analyzing our strategy with respect to geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. growth, product development, and asset management." The Company will host a conference call on May 5, 2005, at 10:00 a.m. Eastern Time to discuss its financial results for the first quarter of 2005. Interested parties may listen in by accessing the Company's website at www.dominionhomes.com, selecting "About Dominion Homes" and then selecting "Investor Relations Investor relations The process by which the corporation communicates with its investors. ." Dominion Homes offers a variety of homes, which are differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: by size, price, standard features and available options. The Company's "The Best of Everything" philosophy focuses on providing its customers with unsurpassed products, quality, and customer service. Additional information about the Company is located on its website. Certain statements in this news release are "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. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, weather conditions, changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors described in the Company's Annual Report on 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. for the year ended December December: see month. 31, 2004. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
FINANCIAL HIGHLIGHTS
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended
March 31,
2005 2004
----------- -----------
Revenues $ 92,643 $ 115,672
Cost of real estate sold 73,084 87,424
----------- -----------
Gross profit 19,559 28,248
Selling, general and administrative 16,048 18,710
----------- -----------
Income from operations 3,511 9,538
Interest expense 2,556 1,613
----------- -----------
Income before income taxes 955 7,925
Provision for income taxes 313 2,887
----------- -----------
Net income $ 642 $ 5,038
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Earnings per share
Basic $ 0.08 $ 0.63
=========== ===========
Diluted $ 0.08 $ 0.62
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Weighted average shares outstanding
Basic 8,044,986 7,961,212
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Diluted 8,207,768 8,127,383
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Consolidated Balance Sheets
(In thousands
March 31, December 31,
2005 2004
(unaudited)
----------- ------------
Assets
Cash and cash equivalents $ 10,788 $ 6,710
Accounts receivable 6,064 4,521
Real estate inventories 416,740 416,519
Prepaid expenses and other 8,068 6,503
Deferred income taxes 1,074 2,685
Net property and equipment 6,206 7,542
----------- ------------
Total assets $ 448,940 $ 444,480
=========== ============
Liabilities and Shareholders' Equity
Note payable, banks $ 196,836 $ 194,378
Term debt 8,834 5,819
Other liabilities 52,788 55,386
----------- ------------
Total liabilities 258,458 255,583
----------- ------------
Shareholders' equity 190,482 188,897
----------- ------------
Total liabilities and shareholders' equity $ 448,940 $ 444,480
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Estimated Land Inventory as of March 31, 2005
Unimproved
Finished Lots Under Land Total
Land Inventory Lots Development Estimated Lots Estimated Lots
------------------- -------- ----------- -------------- --------------
Owned by the
Company:
Central Ohio 1,614 1,717 8,880 12,211
Kentucky 526 584 1,202 2,312
Controlled by the
Company:
Central Ohio 5,151 5,151
Kentucky 208 208
Held for sale:
Central Ohio 124 124
Kentucky 91 91
--------------------------------------------------
Total Land
Inventory 2,140 2,301 15,656 20,097
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