Dominion Homes Reports Earnings for the Second 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) today announced results for its second quarter ended June June: see month. 30, 2005. Highlights included:
-- Revenues of $105.2 million for the quarter ended June 30,
2005, compared to $148.2 million for the quarter ended
June 30, 2004;
-- Net income of $2.5 million for the three months ended June 30,
2005, compared to $6.6 million for the three months ended
June 30, 2004;
-- Diluted earnings of $0.31 per share for the quarter ended
June 30, 2005, compared to $0.81 per diluted share for the
three months ended June 30, 2004;
-- Sales of 655 homes, with a sales value of $123.1 million, for
the quarter ended June 30, 2005, compared to sales of 510
homes, with a sales value of $98.9 million, for the three
months ended June 30, 2004;
-- Deliveries of 548 homes for the quarter ended June 30, 2005
compared to 778 homes delivered for the three months ended
June 30, 2004;
-- Backlog of 887 sales contracts, with a sales value of $177.1
million, at June 30, 2005, compared to a backlog of 1,067
sales contracts, with a sales value of $216.4 million, at
June 30, 2004;
-- Gross profit of 22.3% for the second quarter of 2005 compared
to 22.1% for the second quarter of 2004;
-- Selling, general and administrative expenses of $17.2 million
for the second quarter of 2005 compared to $20.1 million for
the second quarter of 2004; and
-- Active communities of 63 at June 30, 2005 compared to 56 at
June 30, 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 second quarter results were better than our original projections. We are pleased that our sales seem to have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. , and that we continue to strengthen our 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. . We remain 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, managing our developed lot inventory, and focusing on our customers' experience." The Company will host a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , August 5, 2005 at 10:00 a.m. Eastern Time. 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 and its homes is located on its website. Additional Financial Highlights Second Quarter of 2005 Revenues. Revenues for the second quarter of 2005 were $105.2 million from the delivery of 548 homes, compared to $148.2 million from the delivery of 778 homes during the same period the previous year. Second quarter 2005 revenues included fee revenues from the Company's mortgage financing services subsidiary of $1.3 million compared to $2.1 million for the second quarter of 2004. Also included in second quarter 2005 revenues are 20 model home sales, with a sales value of $3.2 million. These homes were subsequently leased back by the Company for use as sales models. The average delivery price of homes during the second quarter of 2005 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $189,600 compared to $187,700 for the second quarter of 2004. Net Income. The lower net income for the second quarter of 2005 is principally due to the delivery of 29.6% fewer homes compared to the second quarter of 2004. The Company delivered fewer homes during the second quarter of 2005 because of a lower number of sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. in backlog at the beginning of this quarter compared to the second quarter of 2004. Gross Profit. Gross profit for the second quarter of 2005 was $9.3 million lower than the same period a year ago, principally due to the delivery of fewer homes. Included in gross profit for the second quarter of 2005 and 2004 were $1.4 million and $349,000 of write-offs primarily related to deposits and due-diligence costs incurred for land that the Company decided not to purchase. In addition, $824,000 of gains from the sale of property was recorded in gross profit in the second quarter of 2005. Selling, General and Administrative Expense. For the second quarter of 2005 selling, general and administrative expense decreased to $17.2 million from $20.1 million for the second quarter of 2004, principally as a result of delivering fewer homes. Interest Expense and Provisions for Income Taxes. Interest expense incurred during the second quarter of 2005 increased to approximately $2.9 million from $2.2 million during the second quarter of 2004, primarily due to a higher average interest rate. The Company's effective tax rate for the second quarter of 2005 decreased to 22.7% from 36.7% in the second quarter of 2004 primarily due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax audit settlements that occurred during the second quarter of 2005. First Six Months of 2005 Revenues. Revenues for the first six months of 2005 decreased by $66.1 million to $197.8 million compared to revenues of $263.9 million during the same period a year ago. Home deliveries for the six months ended June 30, 2005 were 1,026 homes compared to 1,412 homes for the six months ended June 30, 2004. Included in revenues for the first six months of 2005 was $2.3 million of fee revenues from the Company's mortgage financing services subsidiary compared to $4.1 million for the first six months of 2004. Also included in revenues for the first six months of 2005 were 20 model home sales with a sales value of $3.2 million. Net Income. Net income for the first six months of 2005 was $3.2 million, or $0.39 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, compared to $11.7 million, or $1.43 per diluted share, for the same period in 2004. Gross Profit. Gross profit for the first six months of 2005 was $18.0 million lower than the gross profit reported for the first six months of 2004. The Company's 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. was 21.7% for the first six months of 2005 compared to 23.1% for the first six months of 2004. This decrease in gross profit margin was primarily due to an increase in the cost of constructing our homes and higher lot costs. Included in gross profit for the first six months of 2005 and 2004, respectively, were $2.4 million and $230,000 of write-offs primarily related to deposits and due-diligence costs incurred for land that the Company decided not to purchase. In addition, $824,000 of gains from the sale of property was recorded in gross profit in the first six months of 2005. Selling, General and Administrative Expense. Selling, general and administrative expense for the first six months of 2005 decreased by $5.5 million to $33.3 million from $38.8 million for the first six months of 2004. Interest Expense and Provisions for Income Taxes. Interest expense incurred during the first six months of 2005 increased to approximately $5.5 million from $3.8 million during the first six months of 2004, primarily due to a higher average interest rate and higher average borrowings. The Company's effective tax rate for the first six months of 2005 decreased to 25.0% from 36.6% in the first six months of 2004 primarily due to favorable tax audit settlements that occurred during the first six months of 2005. Sales. The Company sold 1,281 homes, with a sales value of $243.9 million, during the first six months of 2005 compared to 1,460 homes, with a sales value of $275.8 million, during the first six months of 2004. Backlog. The average price of homes in backlog on June 30, 2005 was $199,700 compared to $202,800 on June 30, 2004. 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
(Unaudited)
(In thousands, except share and per share amounts)
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
---------------------------------------------
Revenues $ 105,207 $ 148,181 $ 197,850 $ 263,853
Cost of real estate sold 81,776 115,425 154,860 202,849
---------- ---------- ---------- ----------
Gross profit 23,431 32,756 42,990 61,004
Selling, general and
administrative 17,244 20,087 33,292 38,797
---------- ---------- ---------- ----------
Income from operations 6,187 12,669 9,698 22,207
Interest expense 2,927 2,178 5,483 3,791
---------- ---------- ---------- ----------
Income before
income taxes 3,260 10,491 4,215 18,416
Provision for income
taxes 741 3,852 1,054 6,739
---------- ---------- ---------- ----------
Net income $ 2,519 $ 6,639 $ 3,161 $ 11,677
========== ========== ========== ==========
Earnings per share
Basic $ 0.31 $ 0.83 $ 0.39 $ 1.47
========== ========== ========== ==========
Diluted $ 0.31 $ 0.81 $ 0.39 $ 1.43
========== ========== ========== ==========
Weighted average shares
outstanding
Basic 8,054,648 7,973,456 8,049,844 7,967,334
========== ========== ========== ==========
Diluted 8,203,815 8,198,251 8,206,933 8,160,487
========== ========== ========== ==========
Consolidated Balance Sheets
June 30, December 31,
2005 2004
(Unaudited)
----------- ------------
ASSETS
Cash and cash equivalents $ 7,497 $ 6,710
Accounts receivable 5,419 4,521
Real estate inventories 426,439 416,519
Prepaid expenses and other 8,062 6,503
Deferred income taxes 1,534 2,685
Net property and equipment 6,451 7,542
-------- --------
Total assets $455,402 $444,480
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Note payable, banks $206,389 $194,378
Term debt 8,709 5,819
Other liabilities 47,714 55,386
-------- --------
Total liabilities 262,812 255,583
Total shareholders' equity 192,590 188,897
-------- --------
Total liabilities and shareholders'
equity $455,402 $444,480
======== ========
Lot Inventory as of June 30, 2005
Unimproved
Land Total
Finished Lots Under Estimated Estimated
Land Inventory Lots Development Lots Lots
---------------------------- -------- ----------- ---------- ---------
Owned by the Company:
Central Ohio 1,602 1,513 9,039 12,154
Kentucky 463 514 1,089 2,066
Controlled by the Company:
Central Ohio - - 4,098 4,098
Kentucky - - 208 208
Held for sale:
Central Ohio - - 964 964
Kentucky - - 204 204
-----------------------------------------
Total Land Inventory 2,065 2,027 15,602 19,694
======== =========== ========== =========
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