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SCHULER HOMES INC. REPORTS EARNINGS FOR THIRD QUARTER 1992 AND RECEIVES $36.3 MILLION IN NEW LOAN COMMITMENTS

 SCHULER HOMES INC. REPORTS EARNINGS FOR THIRD QUARTER 1992
 AND RECEIVES $36.3 MILLION IN NEW LOAN COMMITMENTS
 HONOLULU, Oct. 8 /PRNewswire/ -- Schuler Homes Inc. (NASDAQ: SHLR) today reported net income of $2.9 million for its third quarter ended Sept. 30, 1992, compared to $4.0 million in the third quarter of 1991. Net income per share was $.15 vs. $.27 in the prior year's period. Revenues for the third quarter of 1992 were $16.3 million and were $22.9 million during the third quarter of 1991.
 In the first nine months of 1992, the company's earnings were $8.6 million, slightly higher than earnings of $8.3 million for the first nine months of 1991. Net income per share was $.47 for this period in 1992, compared to $.56 for the year-earlier period because of an increase in the weighted average number of shares outstanding. Revenues totaled $44.3 million for the nine months ended Sept. 30, 1992, and $43.0 million for the same period in the prior year.
 The difference in the company's financial results between the third quarters of 1992 and 1991 reflected the closing of fewer units (119) in the quarter ended Sept. 30, 1992, as compared to unit closings (183) in the same period of 1991. A portion of the anticipated third quarter 1992 closings of sales was delayed due to the effects of Hurricane Iniki, the storm which devastated the island of Kauai on Sept. 11, 1992. One of the most significant storm effects on the company's third quarter of 1992 results was a delay in electrical hook-ups necessary to close the sale of a number of homes in the company's Maui and Oahu projects since electrical crews from these islands were helping to restore power to the island of Kauai. Most of Kauai currently is without electricity and the Kauai Electric Co. estimates that it will take six months to restore power to the entire island. Because of this delay in restoring power, and other effects of the storm, the company presently anticipates the initial delivery of homes, and corresponding closings and receipt of anticipated revenue, in its Puhi project (Kauai) to be delayed from late 1992 into 1993. However, no assurances can be given at this time as to the precise timing of home closings, since the full impact to the company of Hurricane Iniki has not yet been ascertained.
 The company's 27.0 percent gross profit margin in 1992's third quarter was less than the 28.4 percent gross profit margin in the third quarter of 1991, since the 1992 third quarter included closings of home sales in the Southpointe at Waiakoa (Maui) project where the company's lender participates in the project's profits. However, as expected, the 1992 third quarter gross profit margin was higher than that realized in the second quarter of 1992, since projects other than Southpointe comprised a greater percentage of closings in the third quarter of 1992 as compared to the second quarter of 1992.
 Schuler Homes Inc. also announced that the company has received new loan commitments totalling $36.3 million.
 First Hawaiian Bank approved a $10.0 million revolving unsecured line of credit plus a $20.0 million secured revolving development line of credit. The $30.0 million in lines of credit will bear interest at First Hawaiian Bank's prime rate, or if Schuler Homes' net worth is less than $70 million, prime plus 1/2 percent. (The company's net worth was $79.3 million at Sept. 30, 1992). The revolving lines of credit mature one year from the date of closing, which is currently anticipated to occur on or before Oct. 31, 1992. First Hawaiian Bank also approved a nine month $6.3 million secured construction loan for Phase III of the Southpointe at Waiakoa development at an interest rate of prime plus 1 percent. These new loan commitments remain subject to final loan documentation.
 "First Hawaiian Bank has continued to indicate their willingness to provide financing for our projects," said James K. Schuler, chairman, president and chief executive officer of Schuler Homes Inc. "We enjoy a 22-year relationship with First Hawaiian Bank and appreciate their commitment to Schuler Homes."
 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
 (In thousands except per share amounts)
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Sales of residential
 real estate $16,266 $22,939 $44,340 $42,952
 Cost of residential
 real estate sold 11,879 16,415 31,160 29,437
 Gross profit 4,387 6,524 13,180 13,515
 Equity in income of
 unconsolidated
 joint venture 215 24 585 70
 General and
 administrative expense (293) (101) (803) (291)
 Other income 289 22 622 36
 Income before provision
 for income taxes 4,598 6,469 13,584 13,330
 Provision for income
 taxes 1,681 --- 3,386 ---
 Net income $2,917 $6,469 $10,198 $13,330
 Net income per share $0.15
 Weighted average
 number of shares 19,979,808
 Pro forma
 information:
 Income before
 income taxes $6,469 $13,584 $13,330
 Provision for
 income taxes 2,460 4,992 5,068
 Pro forma
 net income $4,009 $8,592 $8,262
 Pro forma net
 income per share $0.27 $0.47 $0.56
 Pro forma weighted
 average number
 of shares 14,804,808 18,482,281 14,804,808
 -0- 10/8/92
 /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-KJ -- LA013 -- 8027 10/08/92 16:02 EDT
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Date:Oct 8, 1992
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