NEWS RELEASE
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Exhibit 99.1
Contacts: Joseph A. Santangelo - Chief Financial Officer
Orleans Homebuilders, Inc. (215) 245-7500
(www.orleanshomes.com)
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For Immediate Release:
Orleans Homebuilders Announces 56% Increase in Record Backlog Dollars,
18% Increase in EPS and New Orders
For the First Quarter of Fiscal Year 2004
and Increases its Guidance for Fiscal Year 2004
Bensalem, Pennsylvania, November 14, 2003:
Orleans Homebuilders, Inc. (ASE:OHB) is a residential homebuilder with
operations in Pennsylvania, New Jersey, Virginia, North Carolina, South Carolina
and Florida. In July 2003, the Company entered the Florida market through its
acquisition of Masterpiece Homes, an established homebuilder located in Orange
City, Florida.
Financial Highlights for the Quarter Ended September 30, 2003:
o First quarter fiscal year 2004 earnings of $.45 per share
diluted increased 18% compared with $.38 per share diluted for
the prior year comparable quarter.
o First quarter fiscal year 2004 new orders increased 18% to
$131,042,000 (401 homes) compared with $110,923,000 (339
homes) for the prior year comparable quarter.
o The backlog at September 30, 2003 increased 56% to
$360,088,000 (1,116 homes) compared with $230,957,000 (690
homes) at September 30, 2002.
o First quarter fiscal year 2004 residential property revenue
increased 14% to $98,383,000 (335 homes) compared with
$86,030,000 (296 homes) for the prior year comparable quarter.
o The Company currently controls approximately 10,900 building
lots.
Additional recognition:
o For the second consecutive year Orleans Homebuilders was
ranked by Forbes Magazine as one of America's Ten Best Small
Companies.
o For the second consecutive year Orleans Homebuilders was
listed by Fortune Magazine as one of Fortune's 100 Fastest
Growing Companies.
o For the third consecutive year Masterpiece Homes was ranked by
J.D. Powers and Associates as the overall best in customer
service in the Orlando, Florida market.
"We are pleased with the revenue growth in the first quarter of fiscal
year 2004, despite increasingly restrictive governmental regulations and
construction delays experienced due to the remarkably rainy Spring and Summer
seasons in the regions in which we operate. We are also pleased with our overall
continued strong performance, our ability to obtain additional desirable
building lots and our ability to successfully expand into new markets with a
variety of products and a wide range of price points," commented Jeffrey
Orleans, Chairman and CEO. "As we look forward our focus will be on continued
growth and the resulting value we are creating for our shareholders."
The Company is increasing its guidance for earnings per share on a
diluted basis to a range of $2.05 to $2.10 for its fiscal year ended June 30,
2004. Additionally, at this time, the Company anticipates earnings per share on
a diluted basis of $2.25 to $2.30 for the twelve months ended December 31, 2004.
Certain information included herein and in other Company statements, reports and
SEC filings is forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to, statements
concerning anticipated earnings per share, operating results, financial
resources, pace of sales, growth and expansion. Such forward-looking information
involves important risks and uncertainties that could significantly affect
actual results and cause them to differ materially from expectations expressed
herein and in other Company statements, reports and SEC filings. For example,
there can be no assurance that the current sales pace can continue in the
absence of an improvement in the current general economic environment. These
risks and uncertainties include local, regional and national economic
conditions, the effects of governmental regulation, the competitive environment
in which the Company operates, fluctuations in interest rates, changes in home
prices, the availability and cost of land for future growth, the availability of
capital, the availability and cost of labor and materials, and weather
conditions.
Results of Operations
(In thousands, except per share amounts)
Three Months Ended
September 30,
2003 2002
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Earned revenues $100,435 $87,118
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Income from operations before income taxes $ 12,393 $10,215
Income tax expense 4,875 3,881
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Net income 7,518 6,334
Preferred dividends 53 53
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Net income available for common shareholders $ 7,465 $ 6,281
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Basic earnings per share $ 0.58 $ 0.52
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Diluted earnings per share $ 0.45 $ 0.38
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