Dominion Homes Reports Record Net Income for the Third Quarter And First Nine Months of 2002.Business Editors DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ohio--(BUSINESS WIRE)--Oct. 29, 2002 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 (Nasdaq:DHOM) reported net income for the three months ended September September: see month. 30, 2002 increased 23% to a record $7.2 million from $5.9 million for the three months ended September 30, 2001. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $0.89 for both third quarter 2002 and 2001, due principally to the dilutive impact of the sale by the Company of 1,503,900 of its common shares during June June: see month. and July July: see month. of 2002. The weighted average number of fully 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. shares outstanding during the three months ended September 30, 2002 increased 24% to 8,142,590 shares, compared to 6,585,335 shares during the three months ended September 30, 2001. Revenues for third quarter 2002 increased 15% to $139.4 million, from the delivery of 724 homes, compared to revenues for third quarter 2001 of $121.1 million, from the delivery of 631 homes. The $18.3 million increase in revenues was primarily due to the delivery of 93 more homes resulting from a higher percentage of closings of smaller, affordable homes and improved building times. As a result of the increase in home deliveries, the Company's gross profit for third quarter 2002 increased 15% to $32.7 million from $28.3 million for third quarter 2001. Increases in selling, general and administrative expenses are mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to variable costs associated with delivering more homes. Interest expense declined 36% or $1.1 million, due principally to the reduction of debt that resulted from the sale of additional common shares. Net income for the first nine months of 2002 increased 77% to a record $17.6 million from $9.9 million for the same period last year. Fully diluted earnings per share increased to $2.46 per share for the first nine months of 2002, compared to $1.51 per share for the same period the previous year. As a result of the Company's sale of common shares in June and July 2002, the weighted average number of fully diluted shares outstanding during the nine months ended September 30, 2002 increased to 7,143,744 shares, compared to 6,568,799 shares during the nine months ended September 30, 2001. Revenues for the first nine months of 2002 increased 33% to $370.9 million, from the delivery of 1,944 homes, compared to revenues of $279.1 million for the same period the previous year, from the delivery of 1,444 homes. Gross profit for the first nine months of 2002 increased 32% to $84.9 million from $64.1 million for the same period the previous year. As previously reported in the Company's press release dated October October: see month. 15, 2002, the Company sold a third quarter record 605 homes during the three months ended September 30, 2002, representing a sales value of $109.6 million, compared to 484 homes, representing a sales value of $89.7 million, sold during third quarter 2001. The Company sold 1,947 homes during the first nine months of 2002, representing a sales value of $355.3 million, compared to 1,779 homes, representing a sales value of $332.6 million during the first nine months of 2001. The Company had 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 1,035 contracts, with a sales value of $198.3 million, on September 30, 2002 compared to a backlog of 1,112 contracts, with a sales value of $214.7 million, on September 30, 2001. The Company sold 1,450,000 common shares on June 28, 2002 and an additional 53,900 shares on July 29, 2002 for a total of 1,503,900 shares, all at a public offering price of $20 per share. After payment of expenses, the Company used the combined net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $27.4 million to reduce debt. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at September 30, 2002 was $125.9 million versus $81.6 million at December December: see month. 31, 2001. The Company's third quarter 2002 conference call to discuss earnings will take place at 4:00 PM on Tuesday Tuesday: see week. October 29, 2002. Interested parties may listen in by accessing the Company's website at www.dominionhomes.com, selecting either the Central Ohio or Louisville, Kentucky  “Louisville” redirects here. For other uses, see Louisville (disambiguation). location and then selecting "Third Quarter Analyst's Webcast Conference Call." Dominion Homes offers three distinct series 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. There are currently over 50 Dominion Homes locations in Central Ohio and Louisville, Kentucky. Additional information about the Company and its homes 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 and 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 31, 2001 and our Registration Statement filed on May 31, 2002. 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 Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues $ 139,360 $ 121,053 $ 370,900 $ 279,064
Cost of real
estate sold 106,654 92,712 285,961 214,925
---------- ---------- ---------- ----------
Gross profit 32,706 28,341 84,939 64,139
Selling, general
and administrative 18,491 14,940 48,123 38,479
---------- ---------- ---------- ----------
Income from
operations 14,215 13,401 36,816 25,660
Interest expense 1,912 2,970 6,777 8,266
---------- ---------- ---------- ----------
Income before
income taxes 12,303 10,431 30,039 17,394
Provision for
income taxes 5,076 4,550 12,446 7,476
---------- ---------- ---------- ----------
Net income $ 7,227 $ 5,881 $ 17,593 $ 9,918
========== ========== ========== ==========
Earnings per share
Basic $ .90 $ .93 $ 2.50 $ 1.56
========== ========== ========== ==========
Diluted $ .89 $ .89 $ 2.46 $ 1.51
========== ========== ========== ==========
Weighted average
shares outstanding
Basic 8,025,071 6,349,924 7,026,853 6,352,357
========== ========== ========== ==========
Diluted 8,142,590 6,585,335 7,143,744 6,568,799
========== ========== ========== ==========
Consolidated Balance Sheet
September 30, December 31,
2002 2001
-------- --------
ASSETS
Cash and cash equivalents $ 4,243 $ 5,619
Accounts receivable, net 741 2,882
Real estate inventories 260,561 230,024
Prepaid expenses and other 3,630 3,963
Deferred income taxes 6,763 5,865
Net property and equipment 6,183 6,193
-------- --------
Total assets $282,121 $254,546
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Note payable, banks $106,540 $131,511
Term debt 2,134 2,358
Other liabilities 47,549 39,110
-------- --------
Total liabilities 156,223 172,979
Total shareholders' equity 125,898 81,567
-------- --------
Total liabilities
and shareholders' equity $282,121 $254,546
======== ========
Land Inventory as of September 30, 2002
Unimproved
Finished Lots Under Land Total
Land Inventory Lots Development Estimated Estimated
Lots Lots
-------------- -------- ---------- --------- ---------
Owned by the Company:
Central Ohio 1,085 1,304 5,838 8,227
Louisville, Kentucky 176 182 393 751
Controlled by the Company:
Central Ohio -- -- 5,919 5,919
Louisville, Kentucky -- -- 267 267
------ ------ ------ ------
1,261 1,486 12,417 15,164
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