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SCHULER HOMES INC. REPORTS EARNINGS FOR FIRST QUARTER 1993

 HONOLULU, April 29 /PRNewswire/ -- Schuler Homes Inc. (NASDAQ: SHLR) announced today that sales of residential real estate were $20.6 million for the quarter ended March 31, 1993, 47.0 percent higher than sales of $14.0 million during the first quarter last year. Net income was $4.0 million for the quarter ended March 31, 1993, 22.9 percent higher than net income of $3.3 million during the 1992 first quarter. Net income per share decreased from $0.21 to $0.19 (fully diluted). Weighted average common shares outstanding increased from 15,487,226 during the first quarter of 1992 to 21,716,714 (fully diluted) in the first quarter of 1993 because of the sale of common stock through an initial public offering in early 1992 and the issuance of $57.5 million in convertible subordinated debentures in early 1993.
 The growth in sales is attributable to the increased number of home sales closed and the rise in the related average home sales price. The company closed the sale of 109 homes at an average home sales price of $182,000 during the quarter ended March 31, 1993, compared to the closing of 81 sales at an average price of $142,000 during the quarter ended March 31, 1992. The company also closed the sale of nine lots during the first quarter of 1993, at an average sales price of $141,000, as compared to 20 lots at an average sales price of $131,000 during the first quarter of 1992.
 "While the first quarter did not include the closing of sales in the company's Puhi project on Kauai, we are pleased to announce that we have started closing sales and moving the first new homeowners into our Kauai project during April 1993," said James K. Schuler, president and chief executive officer of Schuler Homes Inc. The company's Puhi project had experienced delays caused by Hurricane Iniki, the storm which hit the island of Kauai on Sept. 11, 1992.
 Gross profit margins were 30.8 percent during the first quarter of 1993, compared to the 39.2 percent gross profit margins realized during the corresponding period of the prior year. The particularly high gross profit margins in the first quarter of 1992 were primarily the result of the closing of home sales in the final phase of Kihei Villages, the company's multiphase market rate project where sales prices had increased since the start of that project, while the company's land costs were fixed. First quarter 1993 profit margins were relatively consistent with fourth quarter 1992 gross profit margins of 29.6 percent primarily as a result of the similar project mix of sales closed during the quarters. The company's projects at Waikele on Oahu contributed the majority of closings of home sales in the first quarter of 1993 as well as the fourth quarter of 1992.
 Schuler Homes continues to expand its activities in the 577-acre Waikele master planned community. On April 20, 1993, the company purchased 45 additional acres of property at Waikele, comprising the company's Waikele phases 12 and 13. The company plans to develop 264 townhomes subject to governmental affordable housing requirements and 145 single-family homes in phases 12 and 13, respectively, with initial deliveries in both projects slated for 1995.
 Backlog at March 31, 1993 totaled 394 homes and lots (aggregate sales value: $62.9 million), more than double the backlog of 166 units (aggregate sales value: $22.5 million) at March 31, 1992.
 The company has experienced, and expects to continue to experience, significant variability in sales and net income. For example, the company's sales of residential real estate for the four quarters ended Dec. 31, 1992, ranged from approximately $14.0 million to $34.4 million and for the four quarters ended Dec. 31, 1991, ranged from approximately $1.0 million to $22.9 million. Over each of the four quarters ended Dec. 31, 1992, the company's net income ranged from approximately $2.4 million to $6.5 million, and for each of the four quarters ended Dec. 31, 1991, ranged from approximately $0.1 million to $4.1 million. Factors that contribute to variability of the company's results include: (1) the timing of home closings; (2) the company's ability to continue to acquire additional land on favorable terms for future developments; (3) the condition of Hawaii's real estate market and Hawaii's economy in general; (4) the cyclical nature of the homebuilding industry and changes in prevailing interest rates; (5) costs of material and labor; and (6) delays in construction schedules caused by timing of inspections and approval by regulatory agencies, the timing of utility hookups and adverse weather conditions. The company's historical financial performance is not necessarily a meaningful indicator of future results and, in general, the company's financial results will vary from development to development.
 Schuler Homes Inc. is one of the leading developers of affordably priced residential housing in Hawaii. The company's developments primarily consist of low-rise, multifamily homes, such as condominiums and townhomes and, to a lesser extent, single-family homes and residential lots. The company's affordable homes are generally priced at levels that either (i) are at or below ceilings established under applicable governmental land use policies, or (ii) represent the low to moderate end of the market for a home in a particular locality and are generally below those existing in that locale for comparable homes built by others.
 SCHULER HOMES INC.
 Consolidated Statements of Income
 Three Months Ended March 31,
 1993 1992
 (Unaudited)
 Sales of residential
 real estate $20,578,000 $13,997,000
 Cost of residential real
 estate sold 14,241,000 8,513,000
 Gross profit 6,337,000 5,484,000
 Income from unconsolidated
 joint ventures 258,000 37,000
 General and administrative
 expense (319,000) (252,000)
 Other income 152,000 (17,000)
 Income before provision for
 income taxes 6,428,000 5,252,000
 Provision for income taxes 2,426,000 390,000
 Net income $4,002,000 $4,862,000
 Net income per share:
 Primary(a) $0.20 ---
 Fully diluted(b) $0.19 ---
 Pro forma information:
 Income before income taxes --- $5,252,000
 Provision for income taxes(c) --- 1,996,000
 Pro forma net income --- $3,256,000
 Pro forma net income per share(d) --- $0.21
 (a) Computed using weighted average number of shares of 19,979,808.
 (b) Computed by adding interest charges applicable to convertible subordinated debentures (net of related income taxes) of $35,000 to net income and dividing by 21,716,714, which represents the weighted average number of shares assuming conversion of all convertible subordinated debentures. For the quarter ended June 30, 1993, the weighted average number of shares are expected to be 22,613,798, assuming conversion of all convertible subordinated debentures.
 (c) The pro forma provision for income taxes represents federal and state income taxes on the company's income as if the company had been taxed as a C Corporation until March 20, 1992, the date on which the company's S Corporation election was terminated.
 (d) Computed using pro forma weighted average number of shares of 15,487,226.
 SCHULER HOMES INC.
 Three Months Ended March 31,
 1993 1992
 Unit Closings:
 Homes 109 81
 Lots 9 20
 Total 118 101
 March 31, 1993 March 31, 1992
 Number Aggregate Number Aggregate
 Sales Value Sales Value
 Backlog:
 Homes 368 $59,378,000 154 $20,584,000
 Lots 26 3,489,000 12 1,956,000
 Total 394 $62,867,000 166 $22,540,000
 -0- 4/29/93
 /CONTACT: James K. Schuler, president and CEO, or Pamela S. Jones, senior VP-finance and CFO, of Schuler Homes, 808-521-5661/
 (SHLR)


CO: Schuler Homes Inc. ST: Hawaii IN: CST SU: ERN

LS-EH -- LA039 -- 2865 04/29/93 16:43 EDT
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Date:Apr 29, 1993
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