Exhibit 99.1
For Immediate Release | | For additional information contact: |
| | | Peter J. O’Hanlon or Jon M. Donnell |
| | | (614) 761-6000 |
Dominion Homes Reports Record
Net Income for the Second Quarter of 2003 and Year to Date
DUBLIN, Ohio – July 24, 2003 – Dominion Homes (NASDAQ:DHOM) reported net income for the three months ended June 30, 2003 increased 31% to $8.2 million from $6.3 million for the three months ended June 30, 2002. Diluted earnings per share increased to $1.02 per share for second quarter 2003 compared to $0.94 per share for the same period the previous year. Second quarter 2003 earnings per share reflect the larger number of weighted average diluted shares for the three months ended on June 30, 2003, which increased 21% to 8,073,706 shares from 6,695,781 shares for the same period in 2002.
Revenues for the second quarter of 2003 increased by 5% to $140.0 million from the delivery of 764 homes, compared to revenues for second quarter 2002 of $133.2 from the delivery of 702 homes. Gross profit for the second quarter of 2003 increased 14% to $33.5 million from $29.3 million for the second quarter of 2002. The improvement in gross profit was partially offset by a $1.8 million increase in selling, general and administrative expense over second quarter 2002 due primarily to the increased number of closings.
Net income for the first six months of 2003 increased 26% to $13.1 million from $10.4 million for the same period the previous year. Diluted earnings per share increased to $1.61 per share for the first six months of 2003 compared to $1.56 per share for the same period the previous year. Weighted average diluted shares for the six months ended June 30, 2003 increased 22% to 8,104,219 shares from 6,638,189 shares for the same period in 2002.
Revenues for the first six months of 2003 increased 5% to $244.0 million from the delivery of 1,333 homes compared to revenues for the same period the previous year of $231.5 million from the delivery of 1,220 homes. Gross profit for the first six months of 2003 increased by 12% to $58.4 million from $52.2 million the previous year. A $3.3 million increase in selling, general and administrative expense during the first six months of 2003 was partially offset by a decrease in interest expense of $1.1 million.
As previously reported on July 9, 2003, the Company sold a record 904 homes during the three months ended June 30, 2003, representing a sales value of $161.0 million, compared to 625 homes, representing a sales value of $112.2 million, during the three months ended June 30, 2002. The Company sold a record 1,767 homes during the first six months of 2003, representing a sales value of $313.1 million, compared to 1,342 homes, representing a sales value of $245.7 million, for the first six months of 2002. The Company had a record backlog of 1,452 contracts, with a sales value of $269.5 million, on June 30, 2003 compared to a backlog of 1,154 contracts, with a sales value of $223.7 million, on June 30, 2002.
The Company’s weighted average number of shares outstanding on June 30, 2003 increased compared to June 30, 2002 principally due to the Company’s sale of 1,503,900 of its shares during June and July of 2002, offset by the subsequent repurchase by the Company of 147,500 shares during February 2003. The repurchase of the 147,500 shares was made pursuant to a plan authorized February 10, 2003 by the Company’s Board of directors allowing the Company to repurchase up to 250,000 of its shares through December 31, 2003. On May 6, 2003 the Company’s Board of Directors increased the number of shares that could be repurchased during 2003 to 397,500 shares.
The Company will host a conference call on July 25, 2003 at 11:00 a.m. Eastern Time. Interested parties may listen by accessing the Company’s website atwww.dominionhomes.com.
Dominion Homes offers three distinct series of homes which are differentiated by size, price, standard features and available options. The Company’s “The Best of Everything” philosophy focuses on providing its customers with unsurpassed products, quality, and customer service. There are currently over 50 Dominion Homes locations in Central Ohio and Louisville, Kentucky. Additional information about Dominion Homes and its homes is located on its website.
Certain statements in this news release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, weather conditions, changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except share and per share amounts)
Consolidated Statements of Operations
| | | Three Months Ended
June 30,
| | Six Months Ended
June 30,
|
| | | 2003
| | 2002
| | 2003
| | 2002
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Revenues | | $ | 139,974 | | $ | 133,162 | | $ | 243,959 | | $ | 231,540 |
Cost of real estate sold | | | 106,518 | | | 103,865 | | | 185,564 | | | 179,307 |
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Gross profit | | | 33,456 | | | 29,297 | | | 58,395 | | | 52,233 |
Selling, general and administrative | | | 17,600 | | | 15,790 | | | 32,980 | | | 29,632 |
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Income from operations | | | 15,856 | | | 13,507 | | | 25,415 | | | 22,601 |
Interest expense | | | 2,118 | | | 2,766 | | | 3,746 | | | 4,865 |
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Income before income taxes | | | 13,738 | | | 10,741 | | | 21,669 | | | 17,736 |
Provision for income taxes | | | 5,523 | | | 4,446 | | | 8,616 | | | 7,370 |
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Net income | | $ | 8,215 | | $ | 6,295 | | $ | 13,053 | | $ | 10,366 |
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Earnings per share | | | | | | | | | | | | |
Basic | | $ | 1.04 | | $ | 0.96 | | $ | 1.64 | | $ | 1.59 |
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Diluted | | $ | 1.02 | | $ | 0.94 | | $ | 1.61 | | $ | 1.56 |
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Weighted average shares outstanding | | | | | | | | | | | | |
Basic | | | 7,902,988 | | | 6,572,576 | | | 7,939,552 | | | 6,519,471 |
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Diluted | | | 8,073,706 | | | 6,695,781 | | | 8,104,219 | | | 6,638,189 |
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Consolidated Balance Sheet
| | | June 30 2003
| | December 31 2002
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ASSETS | | | | | | |
Cash and cash equivalents | | $ | 3,433 | | $ | 4,121 |
Accounts receivable | | | 4,237 | | | 2,997 |
Real estate inventories | | | 282,657 | | | 262,855 |
Prepaid expenses and other | | | 4,461 | | | 3,404 |
Deferred income taxes | | | 6,782 | | | 6,901 |
Net property and equipment | | | 10,640 | | | 7,459 |
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Total assets | | $ | 312,210 | | $ | 287,737 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
Note payable, banks | | $ | 118,036 | | $ | 111,070 |
Term debt | | | 4,994 | | | 4,415 |
Other liabilities | | | 44,122 | | | 39,271 |
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Total liabilities | | | 167,152 | | | 154,756 |
Total shareholders’ equity | | | 145,058 | | | 132,981 |
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Total liabilities and shareholders’ equity | | $ | 312,210 | | $ | 287,737 |
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Lot Inventory as of June 30, 2003
Land Inventory
| | Finished
Lots
| | Lots Under
Development
| | Unimproved Land
Estimated Lots
| | Total
Estimated Lots
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Owned by the Company: | | | | | | | | |
Central Ohio | | 1,081 | | 1,649 | | 4,699 | | 7,429 |
Louisville, Kentucky | | 192 | | 48 | | 810 | | 1,050 |
Controlled by the Company: | | | | | | | | |
Central Ohio | | — | | — | | 5,663 | | 5,663 |
Louisville, Kentucky | | — | | — | | 1,561 | | 1,561 |
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| | | 1,273 | | 1,697 | | 12,733 | | 15,703 |
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