Printer Friendly

DEL WEBB REPORTS INCREASES IN HOME ORDERS, CLOSINGS AND BACKLOG

 PHOENIX, Jan. 4 /PRNewswire/ -- Continued strong performances from its Arizona and Nevada operations boosted Del Webb Corp.'s (NYSE: WBB) net new orders by 52 percent for its second quarter ended Dec. 31, 1993. Home closings increased 23 percent while its backlog increased 30 percent to a record contract amount of $310 million.
 Company-wide, Del Webb wrote 856 net new orders during its second quarter compared to 565 during the same period one year ago. Orders nearly doubled at Coventry Homes while substantial increases also occurred at Sun City West near Phoenix and Sun City Las Vegas. Terravita, Del Webb's newest planned community in North Scottsdale, Ariz., reported 92 sales since its opening on Nov. 26. For the six- month period, net new orders were up 21 percent to 1,619 compared to 1,341 last year.
 Chairman and Chief Executive Officer Phil Dion attributed the company's performance to a strong Southwestern housing economy and strategic positioning. "We are operating in some very healthy markets where we are well positioned," Dion said. "The strategy behind Coventry's acquisition has unfolded as we had anticipated, and we are capitalizing on their industry knowledge to expand into Tucson and potentially Las Vegas," he added. "At Terravita, we managed to entitle and open the project in less than 12 months. We're very encouraged by the initial success of Terravita, which, at this early stage, has capitalized on pent-up market demand," he said.
 Sun City West and Sun City Las Vegas contributed substantially to the 23 percent increase in closings company-wide. For the quarter ended Dec. 31, Webb closed 802 homes compared to 650 during the same period one year ago. For the six-month period, closings were up 24 percent to 1,397 vs. 1,130 one year ago.
 Terravita, which will celebrate its official grand opening in February, will not deliver its first homes until the summer of 1994.
 Webb's backlog of undelivered homes under contract rose by 448 units in the second quarter, up 30 percent from the year earlier period.
 "Our strategy on opening new communities has positioned the company for future growth," Dion said. "The recent approvals for Sun City Roseville in Northern California and our 5,100-acre project near Hilton Head, S.C., while subject to additional reviews, bring continued opportunities for growth in new regions of the country."
 Dion added that the volatility and present upward trend in lumber prices has continued to create pressures on the company's gross margins which will impact second quarter earnings. "We have taken actions to address this situation and believe that our year-end earnings from continuing operations will equal or slightly exceed those of last year," Dion said.
 Del Webb Corp. is the nation's leading developer of active adult communities with operations in the Phoenix, Tucson, Ariz., Las Vegas, and Palm Springs, Calif., metropolitan areas.
 DEL WEBB CORP. AND SUBSIDIARIES
 Selected Operating Data
 Three Months Ended
 Dec. 31,
 Amount Change
 1993 1992 Amount Percent
 Operating Data:
 Number of net new orders:
 Sun City West 264 215 49 22.8%
 Sun City Tucson 80 82 (2) (2.4%)
 Sun City Las Vegas 198 138 60 43.5%
 Sun City Palm Springs 65 50 15 30.0%
 Terravita 92 N/A 92 (a)
 Coventry Homes 157 80 77 96.3%
 Total net new orders 856 565 291 51.5%
 Number of home closings:
 Sun City West 321 223 98 43.9%
 Sun City Tuscon 92 72 20 27.8%
 Sun City Las Vegas 206 131 75 57.3%
 Sun City Palm Springs 78 110 (32) (29.1%)
 Terravita N/A N/A N/A N/A
 Coventry Homes 105 114 (9) (7.9%)
 Total home closings 802 650 152 23.4%
 Six Months Ended
 Dec. 31,
 Amount Change
 1993 1992 Amount Percent
 Operating Data:
 Number of net new orders:
 Sun City West 512 415 97 23.4%
 Sun City Tucson 158 136 22 16.2%
 Sun City Las Vegas 405 319 86 27.0%
 Sun City Palm Springs 121 307 (186) (60.6%)
 Terravita 92 N/A 92 (a)
 Coventry Homes 331 164 167 101.8%
 Total net new orders 1,619 1,341 278 20.7%
 Number of home closings:
 Sun City West 571 399 172 43.1%
 Sun City Tuscon 155 113 42 37.2%
 Sun City Las Vegas 356 276 80 29.0%
 Sun City Palm Springs 113 110 3 2.7%
 Terravita N/A N/A N/A N/A
 Coventry Homes 202 232 (30) (12.9%)
 Total home closings 1,397 1,130 267 23.6%
 At Dec. 31,
 Amount Change
 1993 1992 Amount Percent
 Backlog Data:
 Homes under contract
 (backlog):
 Sun City West 606 500 106 21.2%
 Sun City Tucson 271 249 22 8.8%
 Sun City Las Vegas 480 383 97 25.3%
 Sun City Palm Springs 133 197 (64) (32.5%)
 Terravita 92 N/A 92 (a)
 Coventry Homes 340 145 195 134.5%
 Total backlog 1,922 1,474 448 30.4%
 Aggregate contract sales amount
 (dollars in millions) $310 $231 $79 34.2%
 Average contract sales
 amount per home (dollars
 in thousands) $161 $157 $4 2.5%
 (a) Not a meaningful percentage.
 -0- 1/4/94
 /CONTACT: Ken Plonski, 602-808-8171 (office) or 602-972-1210 (home)/
 (WBB)


CO: Del Webb Corp. ST: Arizona IN: SU:

JM-LS -- SD001 -- 8753 01/04/94 08:31 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 4, 1994
Words:888
Previous Article:EPS, BUYPASS, MAC AND NYCE SETTLE NETWORK ACCESS DISPUTE
Next Article:CARR GOTTSTEIN ANNOUNCES EXPANSION INTO JUNEAU
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters