EX. 99.1
NEWS RELEASE
CONTACTS: Joseph A. Santangelo - Chief Financial Officer
Orleans Homebuilders, Inc. (215) 245-7500
(www.orleanshomes.com)
----------------------
FOR IMMEDIATE RELEASE:
ORLEANS HOMEBUILDERS
REPORTS RESULTS FOR FIRST QUARTER FISCAL 2006
AND REAFFIRMS GUIDANCE FOR FISCAL YEAR 2006
BENSALEM, PENNSYLVANIA, OCTOBER 26, 2005:
Orleans Homebuilders, Inc. (ASE:OHB) is a residential homebuilder with
operations in Southeastern Pennsylvania; Central and Southern New Jersey; Orange
County, New York; Charlotte, Greensboro and Raleigh, North Carolina; Richmond
and Tidewater Virginia; Orlando, Palm Coast and Palm Bay, Florida; and Chicago,
Illinois.
Financial Highlights for the First Quarter Ended September 30, 2005:
o Residential property revenue increased 14% to $157,963,000
(424 homes) compared with $138,312,000 (405 homes) for the
prior year period.
o New orders increased 53% to $261,349,000 (589 homes) compared
with $170,797,000 (466 homes) for the prior year period.
o The backlog at September 30, 2005 increased 11% to
$656,623,000 (1,571 homes) compared with $594,097,000 (1,643
homes) at September 30, 2004.
o Net income decreased 5% to $7,778,000 ($.41 per diluted share)
compared to $8,202,000 ($.44 per diluted share) for the prior
year period.
o EBITDA (1) decreased less than 1% to $15,931,000 compared with
$15,961,000 for the prior year period.
o The Company currently controls approximately 18,000 building
lots, a 13% increase compared to the approximately 15,900 lots
controlled at September 30, 2004.
Fiscal Year 2006 Guidance:
o The Company reaffirms its fiscal year ending June 30, 2006
guidance for Diluted Earnings per Share of $3.38 to $3.43. In
addition, the Company reaffirms its fiscal year ending June
30, 2006 guidance with respect to revenue of $990 million to
$1.02 billion.
"We are extremely pleased with our new orders of $261 million for the
quarter, which represents a 53% increase over last year. This has helped produce
a $657 million backlog which we believe will enable us to achieve our revenue
and earnings guidance for fiscal 2006. We are well positioned for continued new
order, revenue and earnings growth," commented Jeffery Orleans, Chairman and
CEO.
Orleans Homebuilders will hold its quarterly conference call to discuss fiscal
year results on Thursday, October 27, 2005, at 10:00 a.m. Eastern Time. This
call is being web cast by CCBN and can be accessed at Orleans Homebuilders' web
site at www.orleanshomes.com by clicking on the heading "Investor Relations".
The webcast is also being distributed over CCBN's Investor Distribution Network
to both institutional and individual investors. Individual investors can listen
to the call through CCBN's individual investor center at www.earnings.com or by
visiting any of the investor sites in CCBN's Individual Investor Network.
Institutional investors can access the call via CCBN's password-protected event
management site, StreetEvents (www.streetevents.com).
A replay of the conference call will be available later in the day on October
27th on the Company's website at www.orleanshomes.com. A copy of this press
release, including the Company's results of operations for the three months
ended September 30, 2005 to be discussed during the conference call, is
available at the Company's website, www.orleanshomes.com, under the heading
"Investor Relations".
About Orleans Homebuilders, Inc.
Orleans Homebuilders, Inc. develops, builds and markets high-quality
single-family homes, townhouses and condominiums. The Company serves a broad
customer base including luxury, move-up, empty nester, active adult, and
first-time homebuyers. The Company currently operates in the following thirteen
distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey;
Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater
Virginia; Orlando, Palm Coast and Palm Bay, Florida; Orange County, New York;
and Chicago, Illinois. The Company's Charlotte, North Carolina operations also
include adjacent counties in South Carolina. To learn more about Orleans
Homebuilders, please visit www.orleanshomes.com.
(1)Reconciliation of EBITDA to net income
- --------------------------------------------------------------
THREE MONTHS THREE MONTHS
ENDED 9/30/05 ENDED 9/30/04
- --------------------------------------------------------------
EBITDA $15,931,000 $15,961,000
- --------------------------------------------------------------
Income tax expense 5,622,000 5,275,000
- --------------------------------------------------------------
Interest 2,219,000 2,134,000
- --------------------------------------------------------------
Depreciation 312,000 350,000
- --------------------------------------------------------------
Net income $7,778,000 $8,202,000
- --------------------------------------------------------------
(1) Pursuant to the requirements of Regulation G, we have provided a
reconciliation of EBITDA, a non-GAAP financial measure, to the most
directly comparable GAAP financial measure. EBITDA represents net earnings
before interest expense, previously capitalized interest amortized to
residential properties cost of sales, income taxes, depreciation,
amortization, and extraordinary items. For purposes of Regulation G, a
non-GAAP financial measure is a numerical measure of a registrant's
historical or future financial performance, financial position or cash
flows that excluded amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP in the
statement of operations, balance sheet, or statement of cash flows of the
issuer; or includes amounts, that are excluded from the most directly
comparable measure so calculated and presented. In this regard, GAAP refers
to generally accepted accounting principles in the United States of
America. The Company believes EBITDA provides a meaningful measure of
operating performance.
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, our dependence on
certain key employees and weather conditions. Additional information concerning
factors the Company believes could cause its actual results to differ materially
from expected results is contained in the Company's Annual Reports on Form 10-K
and Quarterly Reports on Form 10-Q filed with the SEC.
ORLEANS HOMEBUILDERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
SEPTEMBER 30,
2005 2004
---------- ----------
Earned revenues
Residential properties $ 157,963 $ 138,312
Land sales and other income 1,678 1,850
---------- ----------
159,641 140,162
Costs and expenses
Residential properties 123,285 109,591
Land sales and other expense 1,609 985
Selling, general and administrative 21,347 16,095
Interest, net -- 14
---------- ----------
146,241 126,685
---------- ----------
Income from operations before income taxes 13,400 13,477
Income tax expense 5,622 5,275
---------- ----------
Net income $ 7,778 $ 8,202
========== ==========
Earnings per share:
Basic $ 0.42 $ 0.47
========== ==========
Diluted $ 0.41 $ 0.44
========== ==========
Weighted average number of shares:
Basic 18,546 17,523
========== ==========
Diluted 18,893 18,755
========== ==========
ORLEANS HOMEBUILDERS, INC
SUMMARY OF DELIVERIES AND NEW ORDERS BY REGION
(DOLLARS IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED
SEPTEMBER 30,
2005 2004
---------- ----------
DELIVERIES
Northern Region (NJ, PA) (1)
Homes 137 155
Dollars $ 59,053 $ 67,283
Average Sales Price $ 431 $ 434
Southern region (NC, SC, VA)
Homes 156 116
Dollars $ 59,800 $ 40,448
Average Sales Price $ 383 $ 349
Florida region (FL)
Homes 79 89
Dollars $ 17,879 $ 14,403
Average Sales Price $ 226 $ 162
Midwestern region (IL) (2)
Homes 52 45
Dollars $ 21,231 $ 16,178
Average Sales Price $ 408 $ 360
Total
Homes 424 405
Dollars $ 157,963 $ 138,312
Average Sales Price $ 373 $ 342
NEW ORDERS
Northern Region (NJ, PA) (1)
Homes 176 164
Dollars $ 92,164 $ 77,437
Average Sales Price $ 524 $ 472
Southern region (NC, SC, VA)
Homes 258 130
Dollars $ 113,660 $ 47,428
Average Sales Price $ 441 $ 365
Florida region (FL)
Homes 100 106
Dollars $ 32,039 $ 21,729
Average Sales Price $ 320 $ 205
Midwestern region (IL) (2)
Homes 55 66
Dollars $ 23,486 $ 24,203
Average Sales Price $ 427 $ 367
Total
Homes 589 466
Dollars $ 261,349 $ 170,797
Average Sales Price $ 444 $ 367
(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.
(2) Information on residential revenue earned and new orders includes the
acquired operations of Realen Homes' Midwestern region from July 28, 2004, the
acquisition date.
ORLEANS HOMEBUILDERS, INC
SUMMARY OF BACKLOG BY REGION
(DOLLARS IN THOUSANDS)
(UNAUDITED)
AT SEPTEMBER 30, AT SEPTEMBER 30,
2005 2004
---------------- ----------------
BACKLOG
Northern Region (NJ, PA)
Homes $ 574 $ 669
Dollars $ 283,632 $ 292,973
Average Sales Price $ 494 $ 438
Southern region (NC, SC, VA)
Homes 475 351
Dollars $ 212,151 $ 135,247
Average Sales Price $ 447 $ 385
Florida region (FL)
Homes 380 336
Dollars $ 100,362 $ 60,174
Average Sales Price $ 264 $ 179
Midwestern region (IL)
Homes 142 287
Dollars $ 60,478 $ 105,703
Average Sales Price $ 426 $ 368
Total
Homes 1,571 1,643
Dollars $ 656,623 $ 594,097
Average Sales Price $ 418 $ 362
ORLEANS HOMEBUILDERS, INC
SELECTED BALANCE SHEET DATA
(IN THOUSANDS)
(UNAUDITED)
SEPTEMBER 30, SEPTEMBER 30,
2005 2004
------------- -------------
Cash and cash equivalents $ 30,150 $ 62,576
Restricted cash - due from title company 5,940 28,785
Residential properties 228,084 190,855
Land and improvements 434,552 398,290
Inventory not owned 126,478 88,252
Land deposits and costs of future developments 27,959 27,408
Total assets 922,960 861,540
Obligations related to inventory not owned 115,539 79,585
Mortgage obligations secured by real estate 455,649 399,030
Notes payable and amounts due to related parties -- --
Other notes payable 9,273 9,400
Shareholders' equity 239,527 231,956
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