Exhibit 99.1
| For Immediate Release | For additional information contact: Peter J. O’Hanlon or Jon M. Donnell (614) 356-5000 |
Dominion Homes Reports Record
Net Income for the Third Quarter
And First Nine Months of 2003
DUBLIN, Ohio – October 27, 2003 – Dominion Homes (NASDAQ:DHOM) reported net income for the three months ended September 30, 2003 increased 26% to a record $9.1 million from $7.2 million for the three months ended September 30, 2002. Diluted earnings per share increased 27% to $1.13 for third quarter 2003 compared to $0.89 for third quarter 2002. The weighted average number of diluted shares outstanding during the three months ended September 30, 2003 decreased to 8,083,986 shares, compared to 8,142,590 shares during the three months ended September 30, 2002.
The increase in net income for the third quarter of 2003 is principally due to a 17% increase in the number of homes the Company delivered. Revenues for the third quarter of 2003 increased 10% to $153.2 million, from the delivery of 844 homes, compared to revenues for the third quarter of 2002 of $139.4 million, from the delivery of 724 homes. The Company’s gross profit for third quarter 2003 increased 12% to $36.7 million from $32.7 million for the third quarter of 2002. Selling, general and administrative expenses and interest expense both declined slightly as a percent of revenues.
Net income for the first nine months of 2003 increased 26% to a record $22.2 million from $17.6 million for the same period last year. Diluted earnings per share increased to $2.74 per share for the first nine months of 2003, compared to $2.46 per share for the same period the previous year. The weighted average number of diluted shares outstanding during the nine months ended September 30, 2003 increased to 8,095,492 shares, compared to 7,143,744 shares during the nine months ended September 30, 2002 due to the Company’s sale of common shares in June and July of 2002.
Revenues for the first nine months of 2003 increased 7% to $397.1 million, from the delivery of 2,177 homes, compared to revenues for the first nine months of 2002 of $370.9 million, from the delivery of 1,944 homes. Gross profit for the first nine months of 2003 increased 12% to $95.1 million from $84.9 million for the same period the previous year.
As reported on October 8, 2003, the Company sold a third quarter record 718 homes during the three months ended September 30, 2003, representing a sales value of $131.5 million, compared to 605 homes, representing a sales value of $109.6 million, sold during the third quarter of 2002. The Company sold 2,485 homes during the first nine months of 2003, representing a sales value of $444.6 million, compared to 1,947 homes, representing a sales value of $355.3 million during the first nine months of 2002.
The Company had a backlog of 1,326 contracts with a sales value of $251.2 million on September 30, 2003, compared to a backlog of 1,035 contracts with a sales value of $198.3 million on September 30, 2002.
The Company’s third quarter 2003 conference call to discuss earnings will take place at 2:00 p.m. Eastern Time on Monday October 27, 2003. Interested parties may listen in by accessing the Company’s website at www.dominionhomes.com, selecting either the Central Ohio or Louisville, Kentucky location and then selecting “Third Quarter Analyst’s Webcast Conference Call.”
Dominion Homes offers a variety 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 the Company 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 and Form 10-K for the year ended December 31, 2002. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. 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 | Nine Months Ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||
Revenues | $ | 153,188 | $ | 139,360 | $ | 397,147 | $ | 370,900 | ||||
Cost of real estate sold | 116,491 | 106,654 | 302,055 | 285,961 | ||||||||
Gross profit | 36,697 | 32,706 | 95,092 | 84,939 | ||||||||
Selling, general and administrative | 19,434 | 18,491 | 52,414 | 48,123 | ||||||||
Income from operations | 17,263 | 14,215 | 42,678 | 36,816 | ||||||||
Interest expense | 1,984 | 1,912 | 5,730 | 6,777 | ||||||||
Income before income taxes | 15,279 | 12,303 | 36,948 | 30,039 | ||||||||
Provision for income taxes | 6,142 | 5,076 | 14,758 | 12,446 | ||||||||
Net income | $ | 9,137 | $ | 7,227 | $ | 22,190 | $ | 17,593 | ||||
Earnings per share | ||||||||||||
Basic | $ | 1.16 | $ | .90 | $ | 2.80 | $ | 2.50 | ||||
Diluted | $ | 1.13 | $ | .89 | $ | 2.74 | $ | 2.46 | ||||
Weighted average shares outstanding | ||||||||||||
Basic | 7,905,076 | 8,025,071 | 7,927,934 | 7,026,853 | ||||||||
Diluted | 8,083,986 | 8,142,590 | 8,095,492 | 7,143,744 | ||||||||
Consolidated Balance Sheets
| September 30, | December 31, | |||||
| 2003 | 2002 | |||||
| ASSETS | ||||||
Cash and cash equivalents | $ | 4,270 | $ | 4,121 | ||
Accounts receivable | 4,149 | 2,997 | ||||
Real estate inventories | 303,118 | 262,855 | ||||
Prepaid expenses and other | 4,555 | 3,404 | ||||
Deferred income taxes | 6,377 | 6,901 | ||||
Net property and equipment | 11,692 | 7,459 | ||||
Total assets | $ | 334,161 | $ | 287,737 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Note payable, banks | $ | 125,020 | $ | 111,070 | ||
Term debt | 4,379 | 4,415 | ||||
Other liabilities | 49,729 | 39,271 | ||||
Total liabilities | 179,128 | 154,756 | ||||
Total shareholders’ equity | 155,033 | 132,981 | ||||
Total liabilities and shareholders’ equity | $ | 334,161 | $ | 287,737 | ||
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Land Inventory as of September 30, 2003
Land Inventory | Finished Lots | Lots Under Development | Unimproved Land Estimated Lots | Total Estimated Lots | ||||
Owned by the Company: | ||||||||
Central Ohio | 1,034 | 1,781 | 4,760 | 7,575 | ||||
Kentucky | 128 | 286 | 574 | 988 | ||||
Controlled by the Company: | ||||||||
Central Ohio | — | — | 5,193 | 5,193 | ||||
Kentucky | — | — | 2,039 | 2,039 | ||||
| 1,162 | 2,067 | 12,566 | 15,795 | |||||
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