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SCHULER HOMES INC. REPORTS EARNINGS FOR FOURTH QUARTER 1992

 HONOLULU, Feb. 3 /PRNewswire/ -- Schuler Homes Inc. (NASDAQ: SHLR) today reported net income of $6.5 million for its fourth quarter ended Dec. 31, 1992, up 132.1 percent from $2.8 million in the fourth quarter of 1991. Net income per share was $0.33 in the fourth quarter of 1992 vs. $0.19 in the prior year's fourth quarter. Sales of residential real estate totaled $34.4 million during the quarter ended Dec. 31, 1992, up 140.6 percent from $14.3 million in the fourth quarter of 1991.
 For 1992, the company's net income increased to $15.1 million, representing an increase of 36.3 percent over net income of $11.1 million in 1991. Net income per share was $0.80 in 1992 compared to $0.75 in 1991. Weighted average common shares outstanding increased to 18,856,663 in 1992, from 14,804,808 in 1991. Sales of residential real estate for the year ended Dec. 31, 1992, totaled $78.7 million, up 37.5 percent from $57.3 million in 1991.
 The company's fourth quarter 1992 gross profit margin of 29.6 percent and 1992 annual gross profit margin of 29.7 percent were less than the 1991 fourth quarter gross profit margin of 32.2 percent and the 1991 annual gross profit margin of 31.6 percent primarily because the 1992 margins included closings of home sales in the Southpointe at Waiakoa (Maui) project where the company's lender participates in the project's profits.
 The 1992 fourth quarter and annual revenues and net income, when compared to the corresponding 1991 periods, principally reflect the increased closings of sales in 1992 over 1991. The company closed the sales of 240 units in the fourth quarter of 1992 for a total of 566 units during the year ended Dec. 31, 1992, compared to the closing of sales of 91 units in the fourth quarter of 1991 and 416 units for all of 1991.
 As anticipated, the company did not close the sale of any homes in its Puhi project (Kauai) during the fourth quarter of 1992. These closings were delayed because of the effects of Hurricane Iniki, the storm which devastated the island of Kauai on Sept. 11, 1992. Certain impacts of the storm include a delay in electrical hook-ups and a recent decision by insurance companies to stop issuing, or to severely restrict the issuance of, homeowner property and casualty insurance policies. Lenders that provide financing to home purchasers typically will not fund home loans until adequate homeowners insurance is in place. The company presently anticipates that initial closings of homes at the Puhi project will occur in the spring of 1993; however, no assurances can be given that the decreased availability of insurance and other effects of the storm will not delay the timing of home closings in the Puhi project or other projects, since the full impact to the company of Hurricane Iniki has not yet been ascertained.
 Backlog at Dec. 31, 1992, totaled 428 units (aggregate sales value: $70.9 million), more than double the backlog of 190 units (aggregate sales value: $26.1 million) as of Dec. 31, 1991. The company considers pending sales contracts for its homes and residential lots, which contracts are subject to certain contingencies prior to closing, as backlog.
 Schuler Homes' balance sheet remains strong at Dec. 31, 1992, with cash and cash equivalents of $6.3 million, notes payable to bank of $17.4 million, and stockholders' equity of $85.9 million.
 As the company enters 1993, James K. Schuler, president and chief executive officer of Schuler Homes Inc., said he anticipates Schuler Homes to initiate closings of home sales in two new large projects (Puhi on Kauai and Brewer/Iao on Maui) in addition to continued activity at its largest project to date, the Waikele, Oahu, project, and the completion of the closing of most of the remaining homes in the Southpointe, Maui, project.
 On Jan. 22, 1993, the company issued $50 million of 6.5 percent convertible subordinated debentures due 2003. On Feb. 1, 1993, the company used a portion of the net proceeds from this offering to consummate its purchase of the Makakilo parcel of land for the development of approximately 500 townhomes on Oahu, Hawaii. The company plans to use the remaining proceeds from this offering primarily for the purchase of its Salt Lake parcel of land for the development of approximately 580 townhomes on Oahu in early February 1993.
 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: (1) are at or below ceilings established under applicable governmental land use policies, or (2) 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
 (In thousands except per share amounts)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 (unaudited)(unaudited)(unaudited)
 1992 1991 1992 1991
 Sales of residential
 real estate $34,409 $14,301 $78,749 $57,253
 Cost of residential
 real estate sold 24,212 9,696 55,372 39,133
 Gross profit 10,197 4,605 23,377 18,120
 Income from
 unconsolidated
 joint ventures 320 5 905 75
 General and
 administrative expense (262) (113) (1,065) (404)
 Other income 257 50 879 86
 Income before provision
 for income taxes 10,512 4,547 24,096 17,877
 Provision for income
 taxes(a) 4,000 --- 7,386 ---
 Net income $6,512 $4,547 $16,710 $17,877
 Net income per share $0.33 --- --- ---
 Weighted average
 number of shares 19,979,808 --- --- ---
 Pro forma
 information:
 Income before
 income taxes --- $4,547 $24,096 $17,877
 Provision for
 income taxes(b) --- 1,730 8,992 6,798
 Pro forma
 net income --- $2,817 $15,104 $11,079
 Pro forma net
 income per share --- $0.19 $0.80 $0.75
 Pro forma weighted
 average number
 of shares --- 14,804,808 18,856,663 14,804,808
 (a) The provision for income taxes represents federal and state income taxes on the company's income subsequent to and including March 20, 1992, the date on which the company's S-Corporation election was terminated.
 (b) 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 during reporting periods including periods prior to March 20, 1992.
 SCHULER HOMES
 Unit Closings
 Year Ended Dec. 31,
 1992 1991
 Homes 518 415
 Lots 48 1
 Total 566 416
 Backlog:
 Dec. 31, 1992 Dec. 31, 1991
 Aggregate Aggregate
 Number Sales Value Number Sales Value
 Homes 403 $67,643,000 166 $22,756,000
 Lots 25 3,255,000 24 3,340,000
 Total 428 $70,898,000 190 $26,096,000
 -0- 2/3/93
 /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

JB-EH -- LA032 -- 2617 02/03/93 17:18 EST
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Date:Feb 3, 1993
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