Engle Homes reports fiscal 1995 and fourth quarter earnings.

BOCA RATON, Fla.--(BUSINESS WIRE)--Dec. 1, 1995--Engle Homes, Inc. (NASDAQ:ENGL) today reported consolidated audited financial results for the Fiscal year and fourth quarter ending Oct. 31, 1995.

For the three months ended Oct. 31, 1995 total revenues increased 14 percent to $69.5 million, compared to total revenues of $60.9 million for the comparable 1994 fourth quarter. Net income for the fourth quarter increased 24 percent to $2.1 million or 30 cents per share (26 cents fully diluted), compared to net income of $1.7 million or 25 cents per share (21 cents fully diluted).

For Fiscal 1995, total revenues increased to $239.8 million compared to total revenues of $220.9 million for Fiscal 1994. Net income for fiscal 1995 decreased to $5.9 million or 85 cents per share (74 cents fully diluted) compared to $8.9 million or $1.33 per share ($1.11 fully diluted) in Fiscal 1994. Earnings for Fiscal 1994 included a non-cash $1.3 million gain or 20 cents (15 cents fully diluted) from the cumulative effect of change in accounting for income taxes.

Alec Engelstein, Chairman and Chief Executive Officer, commenting on the reported results, said, "The decline in earnings were primarily a result of a lower percentage of home sales revenues from our South Florida Division where we historically have higher gross margins. We experienced unusually heavy rain during the fiscal third and fourth quarters in South Florida, which delayed deliveries of homes. In addition, the Denver divisions' operating results were lower than expected primarily due to lower margins caused by increased competition."

"However, as we previously reported, the Company reported a record backlog at Oct. 31, 1995 of $161.9 million, which included significant increases in South Florida as well as all other divisions except Denver," Engelstein added.

The Company also updated the current land sale contract activity at Pembroke Falls, its master planned Community in Southwest Broward, Florida. At Dec. 1, 1995, approximately $36.4 million in land contracts had been written, of which $16.6 million closed in Fiscal 1995. All of the remaining $19.8 million in contracts are binding contracts, of which approximately $18.0 million in contracts are expected to close during Fiscal 1996.

Engelstein concluded, "We are confident that with such a strong backlog and pending land sales revenues from Pembroke Falls, Engle Homes is positioned for a record performance in Fiscal 1996."

Engle Homes, Inc. is engaged principally in the design, construction, marketing and sale of single-family homes, townhomes, patio homes and condominiums in Florida; Denver, Colorado; Dallas, Texas; Raleigh, North Carolina; Virginia, and Maryland. In addition, the Company's subsidiaries include a mortgage company and a title company. -0-

                 ENGLE HOMES INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
                 In Thousands, Except Share Data

                           Three Months Ended      Years Ended
                                 Oct. 31,            Oct. 31,
                               (Unaudited)         (Unaudited)
                             1995      1994      1995      1994
REVENUES:
 Sales of homes            $57,863   $59,403   $216,059  $215,716
 Sales of land              10,737     1,069     20,964     2,931
 Rent and other                381       514      1,573     1,358
 Financial service income      531       (40)     1,158       898
                            ------    ------    -------   -------
                            69,512    60,946    239,754   220,903

COSTS AND EXPENSES
 Cost of sales - home
  Land and construction
   costs                    50,531    51,213    187,281   185,847
 Cost of sales - land
  Land and improvements      8,927       992     17,332     2,577
 Selling, marketing, general
  and administrative         5,761     5,231     22,073    17,898
 Depreciation and
  amortization                 878       795      3,532     2,402
                            ------    ------    -------   -------
                            66,097    58,231    230,218   208,725

INCOME BEFORE TAX            3,415     2,715      9,536    12,179

 Provision for income taxes  1,298     1,043      3,624     4,604

INCOME BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING FOR INCOME
TAXES                        2,117     1,672      5,912     7,575

Cumulative effect of change
in accounting for income
taxes                            0         0          0     1,332

NET INCOME                 $ 2,117   $ 1,672   $  5,912   $ 8,907

Net Income per share
before cumulative effect
of change in accounting
for income taxes
 Primary                                                  $  1.13
 Fully diluted                                            $  0.96

Income per share from
cumulative effect of change
in accounting for income
taxes
 Primary                                                  $  0.20
 Fully diluted                                            $  0.15

Net income per share
 Primary                   $  0.30   $  0.25   $   0.85   $  1.33
 Fully diluted             $  0.26   $  0.21   $   0.74   $  1.11

Shares used in earnings
per share calculations:
 Primary                 7,022,057  6,679,200  6,989,180  6,673,693
 Fully diluted           9,164,914  8,822,057  9,132,037  8,816,550

CONTACT: Engle Homes

David Shapiro, 407/391-4012