SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 17, 2005
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Orleans Homebuilders, Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-6830 59-0874323
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
One Greenwood Square, Suite 101
3333 Street Road, Bensalem, PA 19020
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (215) 245-7500
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 17, 2005, Orleans Homebuilders, Inc. issued a press
release announcing its financial results for the twelve and three months ended
June 30, 2005. A copy of the press release is attached hereto as Exhibit 99.1.
Use of Non-GAAP Financial Information
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To supplement the Company's consolidated financial statements presented in
accordance with generally accepted accounting principles ("GAAP"), the Company
uses the non-GAAP measure of EBIDTA for the twelve and three months ended June
30, 2005 and June 30, 2004. EBITDA represents net earnings before interest
expense, previously capitalized interest amortized to residential properties
cost of sales, income taxes, depreciation, amortization, and extraordinary
items.
The Company's management reviews this non-GAAP measure internally to
evaluate the Company's performance and manage its operations. In addition, since
the Company has historically provided non-GAAP results and guidance to the
investment community, the Company believes that the inclusion of EBITDA provides
consistent and comparable measures to help investors understand the Company's
current and future operating results. The non-GAAP measure included in the press
release attached hereto as Exhibit 99.1 has been reconciled to the comparable
GAAP measure as required under SEC rules regarding the use of non-GAAP financial
measures. The Company urges investors to carefully review the GAAP financial
information included as part of the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and quarterly earnings releases.
The information in this Report, including the Exhibit attached hereto, shall not
be deemed to be "filed" for the purposes of Section 18 of the Securities
Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the
liabilities of that section, nor shall it be incorporated by reference into a
filing under the Securities Act of 1933 or the Exchange Act, except as shall be
expressly set forth by a specific reference in such a subsequent filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
The following exhibit is furnished with this Current Report on Form 8-K:
Exhibit
No. Description
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99.1 Press release of Orleans Homebuilders, Inc. dated
August 17, 2005.
ORLEANS HOMEBUILDERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
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Earned revenues
Residential properties $ 396,294 $ 206,318 $ 911,004 $ 540,745
Land sales and other income 2,784 1,844 8,226 6,513
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399,078 208,162 919,230 547,258
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Costs and expenses
Residential properties 314,938 160,048 727,006 416,967
Land sales and other expense 1,807 1,400 5,438 4,869
Selling, general and administrative 35,552 21,721 95,701 62,364
Interest, net 38 (149) 102 336
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352,335 183,020 828,247 484,536
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Income from operations before income taxes 46,743 25,142 90,983 62,722
Income tax expense 18,164 9,865 35,399 24,643
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Net income $ 28,579 $ 15,277 $ 55,584 $ 38,079
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Net income 28,579 15,277 55,584 38,079
Preferred dividends - - - 104
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Net income available for common shareholders $ 28,579 $ 15,277 $ 55,584 $ 37,975
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Earnings per share:
Basic $ 1.54 $ 0.87 $ 3.09 $ 2.57
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Diluted $ 1.51 $ 0.82 $ 2.96 $ 2.20
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Weighted average number of shares:
Basic 18,519 17,523 17,978 14,784
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Diluted 18,894 18,755 18,809 17,336
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ORLEANS HOMEBUILDERS, INC
SUMMARY OF DELIVERIES AND NEW ORDERS BY REGION
(DOLLARS IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
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DELIVERIES
Northern Region (NJ, PA) (1)
Homes 371 219 852 669
Dollars $ 170,443 $ 99,271 $ 384,645 $ 274,606
Average Sales Price $ 459 $ 453 $ 451 $ 410
Southern region (NC, SC, VA) (2)
Homes 375 275 827 651
Dollars $ 142,424 $ 87,971 $ 304,132 $ 204,798
Average Sales Price $ 380 $ 320 $ 368 $ 315
Florida region (FL) (3)
Homes 146 127 456 433
Dollars $ 29,217 $ 19,076 $ 82,269 $ 61,341
Average Sales Price $ 200 $ 150 $ 180 $ 142
Midwestern region (IL) (4)
Homes 139 - 372 -
Dollars $ 54,210 $ - $ 139,958 $ -
Average Sales Price $ 390 $ - 376 $ -
Total
Homes 1,031 621 2,507 1,753
Dollars $ 396,294 $ 206,318 $ 911,004 $ 540,745
Average Sales Price $ 384 $ 332 $ 363 $ 308
NEW ORDERS
Northern Region (NJ, PA) (1)
Homes 201 182 727 670
Dollars $ 95,370 $ 76,288 $ 352,347 $ 294,384
Average Sales Price $ 474 $ 419 $ 485 $ 439
Southern region (NC, SC, VA) (2)
Homes 271 181 788 698
Dollars $ 107,796 $ 61,713 $ 306,280 $ 237,232
Average Sales Price $ 398 $ 341 $ 389 $ 340
Florida region (FL) (3)
Homes 176 127 496 454
Dollars $ 44,824 $ 22,434 $ 115,623 $ 72,527
Average Sales Price $ 255 $ 177 $ 233 $ 160
Midwestern region (IL) (4)
Homes 76 - 245 -
Dollars $ 36,100 $ - $ 100,503 $ -
Average Sales Price $ 475 $ - $ 410 $ -
Total
Homes 724 490 2,256 1,822
Dollars $ 284,090 $ 160,435 $ 874,753 $ 604,143
Average Sales Price $ 392 $ 327 $ 388 $ 332
(1) Information on residential revenue earned and new orders includes the
acquired operations of Realen Homes' Southeastern Pennsylvania region from July
28, 2004, the acquisition date, through June 30, 2005.
(2) Information on residential revenue earned and new orders includes the
acquired activity from Peachtree Residential Properties for the period beginning
December 23, 2004, the date the company acquired the assets, through June 30,
2005.
(3) Information on residential revenue earned and new orders includes the
acquired operations of Masterpiece Homes from July 28, 2003, the acquisition
date.
(4) Information on residential revenue earned and new orders includes the
acquired operations of Realen Homes' Midwestern region from July 28, 2004, the
acquisition date, through June 30, 2005.
ORLEANS HOMEBUILDERS, INC
SUMMARY OF BACKLOG BY REGION
(DOLLARS IN THOUSANDS)
(UNAUDITED)
AT JUNE 30, AT JUNE 30,
BACKLOG 2005 2004
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Northern Region (NJ, PA)
Homes 535 463
Dollars $ 250,521 $ 209,712
Average Sales Price $ 468 $ 453
Southern region (NC, SC, VA)
Homes 373 337
Dollars $ 158,291 $ 128,267
Average Sales Price $ 424 $ 381
Florida region (FL)
Homes 359 319
Dollars $ 86,202 $ 52,848
Average Sales Price $ 240 $ 166
Midwestern region (IL)
Homes 139 -
Dollars $ 58,223 $ -
Average Sales Price $ 419 $ -
Total
Homes 1,406 1,119
Dollars $ 553,237 $ 390,827
Average Sales Price $ 393 $ 349
ORLEANS HOMEBUILDERS, INC
SELECTED BALANCE SHEET DATA
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, JUNE 30,
2005 2004
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Cash and cash equivalents $ 62,576 $ 32,962
Restricted cash - due from title company 28,785 -
Residential properties 190,855 140,401
Land and improvements 398,290 161,265
Inventory not owned 88,252 88,995
Land deposits and costs of future developments 27,408 23,356
Total assets 861,540 486,602
Obligations related to inventory not owned 79,585 81,992
Mortgage obligations secured by real estate 399,030 128,773
Notes payable and amounts due to related parties - 2,879
Other notes payable 9,400 1,139
Shareholders' equity 231,956 174,905
# # #
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ORLEANS HOMEBUILDERS, INC.
Dated: August 18, 2005 By: Joseph A. Santangelo
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Joseph A. Santangelo
Chief Financial Officer
EXHIBIT INDEX
The following exhibit is furnished as part of this Current Report on Form 8-K:
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Exhibit
No. Item
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99.1* Press release of Orleans Homebuilders, Inc. dated August 17, 2005.
* Filed electronically herewith.