Dominion Homes Reports Record Sales and Net Income for the First Quarter of 2004.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)--May 3, 2004 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:DHOM) reported net income for the first three months of 2004 increased to a first quarter record $5.0 million from $4.8 million for the three months ended March 31, 2003. 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 increased 5% to $0.62 for the first quarter of 2004 compared to $0.59 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 same period the previous year. For the three months ended March 31, 2004, the weighted average number of diluted shares outstanding was 8,127,383 shares, compared to 8,134,770 during the three months ended March 31, 2003. Revenues for the first quarter of 2004 increased 11.2% to $115.7 million, based on the delivery of 634 homes, compared to revenues for the first quarter of 2003 of $104.0 million, based on the delivery of 569 homes. This $11.7 million increase in revenues resulted from the Company's delivery of 65 more homes during the first quarter of 2004 than during the first quarter of 2003. The average price of the homes delivered during the first quarter of 2004 increased to $179,200 from $178,900 during the first quarter of 2003, principally due to price increases in the Company's entry-level en·try-lev·el adj. Appropriate for or accessible to one who is inexperienced in a field or new to a market: an entry-level job in advertising; an entry-level computer. series of homes. The increase in revenues resulted in a $3.3 million increase in gross profit. Selling, general and administrative expense for the first quarter of 2004 increased to $18.7 million from $15.4 million the previous year, primarily due to expenses to support the growth in our three markets during the balance of 2004 and into 2005. As reported on April 7, 2004, the Company sold a record 950 homes during the first three months of 2004, representing a sales value of $176.9 million, compared to a previous record 863 homes, representing a sales value of $152.0 million, during the first three months of 2003. The Company had a record first quarter sales 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. on March 31, 2004 of 1,335 contracts, with a value of $263.3 million, compared to a sales backlog on March 31, 2003 of 1,312 contracts, with a value of $244.9 million. "We are very excited about our first quarter results. We had the best sales quarter in our Company's history and set first quarter records for both net income and backlog," said 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 of Dominion Homes, Inc. "2004 will be a year of growth for the Company as we are expanding our operations in both Central Ohio and Louisville, Kentucky  “Louisville” redirects here. For other uses, see Louisville (disambiguation). and are opening our new market in Lexington, Kentucky Lexington, Kentucky, United States, known as the "Horse Capital of the World," is located in the heart of the Bluegrass region. It is the second-largest city in Kentucky, after Louisville, Kentucky,[1] and the 68th largest in the United States. . With this growth we expect our second half 2004 earnings to significantly exceed the earnings of the first half of the year." The Company will host a conference call on May 4, 2004, at 10:00 a.m. Eastern Time. Interested parties may listen in by accessing the Company's website at www.dominionhomes.com, selecting the Central Ohio location and then selecting "First Quarter Analyst's Webcast Conference Call." 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. There are currently over 50 Dominion Homes locations in Central Ohio and Louisville Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. and Lexington, 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 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, 2003. 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
March 31,
2004 2003
---------- ----------
Revenues $115,672 $103,985
Cost of real estate sold 87,424 79,046
---------- ----------
Gross profit 28,248 24,939
Selling, general and administrative 18,710 15,380
---------- ----------
Income from operations 9,538 9,559
Interest expense 1,613 1,628
---------- ----------
Income before income taxes 7,925 7,931
Provision for income taxes 2,887 3,093
---------- ----------
Net income $5,038 $4,838
========== ==========
Earnings per share
Basic $0.63 $0.61
========== ==========
Diluted $0.62 $0.59
========== ==========
Weighted average shares outstanding
Basic 7,961,212 7,976,522
========== ==========
Diluted 8,127,383 8,134,770
========== ==========
Consolidated Balance Sheets
March 31, December 31,
2004 2003
(unaudited)
-----------------------
Assets
Cash and cash equivalents $7,634 $5,025
Accounts receivable 5,314 2,533
Real estate inventories 382,859 326,809
Prepaid expenses and other 6,441 7,220
Deferred income taxes 5,814 5,781
Net property and equipment 8,677 8,774
---------- ------------
Total assets $416,739 $356,142
========== ============
Liabilities and Shareholders' Equity
Note payable, banks $172,977 $129,220
Term debt 9,266 10,958
Other liabilities 62,614 49,903
---------- ------------
Total liabilities 244,857 190,081
---------- ------------
Shareholders' equity 171,882 166,061
---------- ------------
Total liabilities and shareholders' equity $416,739 $356,142
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Land Inventory as of March 31, 2004
Unimproved
Land Total
Finished Lots Under Estimated Estimated
Land Inventory Lots Development Lots Lots
---------------------------- -------- ----------- ---------- ---------
Owned by the Company:
Ohio 1,275 1,258 7,201 9,734
Kentucky 189 531 2,101 2,821
Controlled by the Company:
Ohio 9,682 9,682
Kentucky 233 233
-------- ----------- ---------- ---------
1,464 1,789 19,217 22,470
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