1
Exhibit 99.2
[DEL WEBB LETTERHEAD]
Contact: Lynne Reaves (Media Inquiries)
(602) 808-8091
John Spencer (Investor Inquiries)
(602) 808-8008
AMENDED PRESS RELEASE
DEL WEBB REPORTS 5TH CONSECUTIVE RECORD YEAR OF EARNINGS
EARNINGS PER SHARE CLIMB 20 PERCENT; BACKLOG UP
FISCAL YEAR HIGHLIGHTS:
- - The company achieved all-time record earnings for the fifth consecutive
year. Net earnings for the fiscal year jumped 23 percent. Earnings per
diluted share reached $4.79, an increase of 20 percent from the $4.00 per
diluted share achieved last year, and were net of the costs amounting to 13
cents per share related to the pending merger with Pulte Homes, Inc. and a
separate major proxy contest last fall.
- - Fourth quarter earnings were $1.59 per diluted share diluted and were net of
7 cents per share of costs related to the pending merger. Pre-tax earnings
were 16 percent higher than last year's fourth quarter.
- - Homebuilding gross margins increased 140 basis points for the quarter and
160 basis points for the year from last year's level.
- - Leverage was reduced significantly to 60.7 percent at June 30, 2001,
compared to 67.6 percent in June 2000 and 72.0 percent at June 30, 1999.
- - Backlog of homes under contract but not yet delivered was up 2 percent at
June 30, 2001 compared to June 30, 2000. The aggregate contract of the
backlog amount increased 4 percent to $994 million, compared to $952
million.
PHOENIX, AZ (JULY 24, 2001) (WBB:NYSE) - Del Webb Corporation, expected to merge
with Pulte Homes Inc., on July 31, 2001, today reported net earnings of $91.2
million, or $4.79 per diluted share, for its fiscal year ended June 30, 2001.
This compares to earnings of $74.2 million, or $4.00 per diluted share, for the
prior year.
For the fourth quarter, net earnings were $31 million or $1.59 per diluted share
and were net of $2.2 million pre-tax or 7 cents per diluted share of
merger-related costs. Last year's fourth quarter earnings included a 22 cent per
share tax benefit. Pre-tax earnings for this year's fourth quarter were $6.67
million or 16 percent higher than last year's fourth quarter.
2
22222 DEL WEBB REPORTS 5TH CONSECUTIVE YEAR OF RECORD EARNINGS 22222
- --------------------------------------------------------------------------------
Results for the fiscal year include certain costs associated with the Pulte
Homes merger and a separate major proxy contest, which totaled 13 cents per
diluted share. Additionally, the company's performance was impacted favorably by
a 10 cents per diluted share tax benefit. Excluding these three factors, net
earnings per diluted share for the year would have been $4.82.
The company's backlog of homes under contract but not yet delivered was up 2
percent at June 30, 2001 to 3,682 units vs. 3,611 at June 30, 2000. The
aggregate contract amount increased 4 percent to $994 million, compared to $952
million; and the average contract sales amount per home increased 2 percent to
$270,000 from $264,000.
"Webb approaches this merger with Pulte Homes in extremely good condition," said
Del Webb President and Chief Executive Officer LeRoy Hanneman. "Our backlog is
up, earnings are strong, our leverage is declining and our leadership in the
active adult segment of the market is unquestioned."
The merger with Pulte Homes will be voted on at special Del Webb and Pulte
shareholders meetings on July 27, with the closing anticipated July 31, 2001.
Hanneman said this year's results demonstrated the company's uncompromising
execution of a new strategic focus. "We have met all of our financial objectives
in 2001," he said. "We set some very tough goals for ourselves this year in
terms of operating and net margins, earnings per share, leverage reduction and
return on invested capital. In each category we exceeded our internal targets."
"This has been an extraordinary year for Del Webb in many ways," said Hanneman.
"While remaining focused on a new strategic plan, Webb was drawn into and won a
high-profile proxy battle. Additionally, this year we agreed to a merger between
Del Webb and Pulte Homes which we believe will be very beneficial to
shareholders. Even with the distractions associated from these two major events,
Del Webb has posted outstanding results. I take great pride in our Del Webb team
which has executed creatively and prudently, and has been responsible for these
outstanding results."
REVENUES AND CLOSINGS
- ---------------------
Revenues for the fiscal year decreased 5 percent to $1.94 billion from $2.04
billion the previous year. The decrease resulted partly from the sell out of two
communities in California and Nevada that had made significant contributions.
The decrease also resulted from the decision to withdraw Webb's family home
business from Nevada and to focus its Phoenix-area family home business at
Anthem.
For the fourth quarter, revenues decreased 5 percent to $602 million, compared
to $635 million in the same period one year ago. Home closings for the fourth
quarter were down 13 percent to 2,132.
In the company's active adult division revenues were down 4.6 percent from
fiscal year 2000. This decrease was caused by a 15 percent drop in home closings
(5,100 compared with 6,017 in the previous year). The reduced closings were
offset, however, by the average closing price rising to $246,600 compared with
$223,200 the previous year.
3
33333 DEL WEBB REPORTS 5TH CONSECUTIVE YEAR OF RECORD EARNINGS 33333
- --------------------------------------------------------------------------------
The company's family and country club division reported a 6.5 percent decrease
in revenues during the year ($545.7 million vs. $583.7 million) and a 19 percent
decrease in home closings (1,938 vs. 2,402). Again, the results reflected Webb's
decision to close out its Coventry (family home) operations in Las Vegas and to
focus its Phoenix operations at Anthem.
Closing prices in the family and country club division increased by 14.6 percent
for the fiscal year, with the Arizona country club community jumping by 19.1
percent.
NEW ORDERS
- ----------
Net new orders for the fiscal year declined 6 percent company-wide to 7,109
units compared to 7,546 last year, reflecting the close out of two communities
and the Nevada Coventry business. In the fourth quarter, net new orders were off
10 percent (1,913 vs. 2,130). On a "same store" basis and excluding last year's
sale/leaseback of model homes and vacation units and adjusting for close out of
communities, total orders were down 2.6 percent for the quarter and were up 1.5
percent for the year.
Results from one of the company's newest communities in California helped
counterbalance the sellout of other developments, Hanneman said. "Our new Sun
City Lincoln Hills community near Sacramento recorded orders totaling a
remarkable 1,047 homes - our best ever results in northern California."
Hanneman said the company's Sun Cities in Arizona, Nevada and California
continued to perform at very strong levels in fiscal 2001. He pointed out that
Sun City Grand posted more than 1,000 new orders for the fourth straight year
and the "Sunflower" community in Tucson experienced its best year in history
with 249 orders.
Order rates improved on a year-to-year basis at the company's Spruce Creek
Communities in Florida and at Sun City Huntley outside of Chicago. Orders at Sun
City Texas were down slightly to 357. At Sun City Hilton Head orders declined
significantly from 364 to 273. In Hilton Head Hanneman said Webb is looking at a
number of ways to increase revenues and ROIC, including continuing to sell some
of its land holdings to other developers. Also under study, he said, are new
product offerings with broader price-points and market reach.
Anthem Arizona ended the year with a 1.3 percent increase in orders. Home prices
in that community jumped 19 percent in the country club community and 14 percent
in the family community. At Anthem Las Vegas orders were off by 3.7 percent in
the family and country club areas, but up 19.4 percent at Sun City Anthem. In
Las Vegas, Hanneman pointed out that the Anthem Country Club community also took
orders for 61 custom lots valued at a total of $18.3 million.
Hanneman underscored that Anthem Arizona had been voted the best master-planned
community in the United States by the National Association of Homebuilders and
the company is the developer of four of the 10 best-selling communities in the
nation.
4
44444 DEL WEBB REPORTS 5TH CONSECUTIVE YEAR OF RECORD EARNINGS 44444
- --------------------------------------------------------------------------------
MARGINS
- -------
The company's total homebuilding gross margin percentage for the fiscal year was
24.4 percent, up 160 basis points from 22.8 percent last year. Gross margins
rose by 150 basis points in the company's active adult operations and 70 basis
points in its family and country club communities. Net margins saw a 30 percent
jump, increasing 100 basis points to 4.7 percent from 3.6 percent.
Selling, general and administrative expenses as a percentage of revenues,
exclusive of the Pulte merger and the proxy contest, were 13.1 percent compared
to 13.2 percent in the previous year. Inclusive of those costs, SG&A was at 13.3
for 2001.
Interest amortization as a percentage of revenues decreased slightly during the
year to 3.8 percent from 4.2 percent.
LEVERAGE
- --------
The company's debt-to-total capital continued to decline in the fourth quarter.
At June 30, 2001, debt-to-total capital was 60.7 percent compared to 67.6
percent, at June 30, 2000 and compared to 72.0 percent at June 30, 1999.
Reduction in the leverage was largely due to a lower level of investment in new
and existing communities in fiscal 2001.
Del Webb Corporation, based in Phoenix, is the nation's leading builder of
active adult communities for people age 55 and older. The company operates eight
active adult communities in markets including Phoenix and Tucson, Ariz.; Las
Vegas, Nev; Palm Desert, Lincoln, Calif.; Hilton Head, S.C.; Georgetown, Texas;
Ocala, Fla; and Chicago, Il. The company also builds family and country club
communities in Phoenix and Las Vegas.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES, AND ACTUAL RESULTS MAY DIFFER MATERIALLY. CERTAIN FORWARD-LOOKING
STATEMENTS ARE BASED ON ASSUMPTIONS THAT MAY NOT PROVE TO BE ACCURATE. RISKS AND
UNCERTAINTIES INCLUDE RISKS ASSOCIATED WITH: THE CYCLICAL NATURE OF REAL ESTATE
OPERATIONS; LAND ACQUISITION AND DEVELOPMENT, GOVERNMENT REGULATION, GROWTH
MANAGEMENT AND ENVIRONMENTAL CONSIDERATIONS; GEOGRAPHIC CONCENTRATION; FINANCING
AND LEVERAGE; INTEREST RATE FLUCTUATIONS; CONSTRUCTION LABOR AND MATERIALS
COSTS; FUTURE COMMUNITIES AND NEW GEOGRAPHIC MARKETS; LEGAL MATTERS; NATURAL
RISKS; AND OTHER MATTERS SET FORTH IN THE COMPANY'S FORM 10-K FOR THE YEAR ENDED
JUNE 30, 2000 AND SUBSEQUENT SEC FILINGS.
5
DEL WEBB CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY EARNINGS RELEASE INFORMATION
AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2001
(UNAUDITED)
Shareholders Equity at June 30, 2001 (dollars in thousands)
- -----------------------------------------------------------
Common stock, $.001 par value. Authorized 30,000,000 shares;
issued 18,927,199 shares $ 19
Additional paid-in capital 181,967
Retained earnings 407,420
----------
589,406
Less deferred compensation (7,745)
----------
Total shareholders' equity $ 581,661
==========
Real Estate Inventories at June 30, 2001 (dollars in thousands)
- ---------------------------------------------------------------
Home construction costs $ 268,562
Unamortized improvement and amenity costs 1,058,926
Unamortized capitalized interest 130,064
Land held for housing 195,372
Land held for future development or sale 105,773
----------
Total real estate inventories $1,758,697
==========
Notes Payable, Senior and Subordinated Debt at June 30, 2001 (dollars in thousands)
- -----------------------------------------------------------------------------------
9 3/4 % Senior Subordinated Debentures due 2003, net, unsecured $ 99,315
9 % Senior Subordinated Debentures due 2006, net, unsecured 98,723
9 3/4 % Senior Subordinated Debentures due 2008, net, unsecured 146,822
9 3/8 % Senior Subordinated Debentures due 2009, net, unsecured 196,346
10 1/4 % Senior Subordinated Debentures due 2010, net, unsecured 144,824
Notes payable to banks under a revolving credit facility and short-term lines
of credit, unsecured 175,000
Real estate and other notes, primarily secured 38,568
----------
Total notes payable, senior and subordinated debt $ 899,598
==========
Interest for the Three Months Ended June 30, 2001 (dollars in thousands)
- ------------------------------------------------------------------------
Unamortized capitalized interest included in real estate
inventories at beginning of period $ 129,243
Interest incurred and capitalized 23,408
Amortization of capitalized interest in costs and expenses (22,587)
----------
Unamortized capitalized interest included in real estate
inventories at end of period $ 130,064
==========
6
DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
THREE MONTHS ENDED
JUNE 30, CHANGE
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATING DATA:
- ---------------
Number of net new orders:
Active adult communities:
Sun City Grand 306 246 60 24.4%
Sun Cities Las Vegas 224 352 (128) (36.4%)
Sun City Palm Desert 165 140 25 17.9%
Sun Cities Northern California 314 279 35 12.5%
Sun City Hilton Head 77 92 (15) (16.3%)
Sun City Texas 95 126 (31) (24.6%)
Sun City at Huntley 118 111 7 6.3%
Florida communities 118 106 12 11.3%
Other communities 73 52 21 40.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Total active adult communities 1,490 1,504 (14) (0.9%)
- ------------------------------------------------------------------------------------------------------------------------------------
Family and country club communities:
Arizona country club communities 101 128 (27) (21.1%)
Nevada country club community 95 73 22 30.1%
Arizona family communities 227 364 (137) (37.6%)
Nevada family communities 0 61 (61) (100.0%)
- ------------------------------------------------------------------------------------------------------------------------------------
Total family and country club communities 423 626 (203) (32.4%)
- ------------------------------------------------------------------------------------------------------------------------------------
Total 1,913 2,130 (217) (10.2%)
====================================================================================================================================
FISCAL YEAR ENDED
JUNE 30, CHANGE
- ------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ------------------------------------------------------------------------------------------------------------------
OPERATING DATA:
- ---------------
Number of net new orders:
Active adult communities:
Sun City Grand 1,032 1,222 (190) (15.5%)
Sun Cities Las Vegas 1,133 1,229 (96) (7.8%)
Sun City Palm Desert 583 462 121 26.2%
Sun Cities Northern California 1,047 759 288 37.9%
Sun City Hilton Head 273 364 (91) (25.0%)
Sun City Texas 357 368 (11) (3.0%)
Sun City at Huntley 400 375 25 6.7%
Florida communities 358 352 6 1.7%
Other communities 250 346 (96) (27.7%)
- ------------------------------------------------------------------------------------------------------------------
Total active adult communities 5,433 5,477 (44) (0.8%)
- ------------------------------------------------------------------------------------------------------------------
Family and country club communities:
Arizona country club communities 314 361 (47) (13.0%)
Nevada country club community 285 296 (11) (3.7%)
Arizona family communities 963 1,127 (164) (14.6%)
Nevada family communities 114 285 (171) (60.0%)
- ------------------------------------------------------------------------------------------------------------------
Total family and country club communities 1,676 2,069 (393) (19.0%)
- ------------------------------------------------------------------------------------------------------------------
Total 7,109 7,546 (437) (5.8%)
==================================================================================================================
Included in net new orders for the fiscal year ended June 30, 2000 were models
and vacation getaway homes sold with long-term leasebacks. Sun City Grand had
162 such net new orders. The Sun Cities Las Vegas had 33 and the Nevada country
club community had 13.
7
DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
THREE MONTHS ENDED
JUNE 30, CHANGE
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ------------------------------------------------------------------------------------------------------------------------------------
Number of home closings:
Active adult communities:
Sun City Grand 294 315 (21) (6.7%)
Sun Cities Las Vegas 335 391 (56) (14.3%)
Sun City Palm Desert 142 133 9 6.8%
Sun Cities Northern California 252 217 35 16.1%
Sun City Hilton Head 81 126 (45) (35.7%)
Sun City Texas 120 119 1 0.8%
Sun City at Huntley 133 201 (68) (33.8%)
Florida communities 98 83 15 18.1%
Other communities 63 128 (65) (50.8%)
- ------------------------------------------------------------------------------------------------------------------------------------
Total active adult communities 1,518 1,713 (195) (11.4%)
- ------------------------------------------------------------------------------------------------------------------------------------
Family and country club communities:
Arizona country club communities 112 132 (20) (15.2%)
Nevada country club community 98 97 1 1.0%
Arizona family communities 336 409 (73) (17.8%)
Nevada family communities 68 87 (19) (21.8%)
- ------------------------------------------------------------------------------------------------------------------------------------
Total family and country club communities 614 725 (111) (15.3%)
- ------------------------------------------------------------------------------------------------------------------------------------
Total 2,132 2,438 (306) (12.6%)
====================================================================================================================================
FISCAL YEAR ENDED
JUNE 30, CHANGE
- ------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ------------------------------------------------------------------------------------------------------------------
Number of home closings:
Active adult communities:
Sun City Grand 1,087 1,395 (308) (22.1%)
Sun Cities Las Vegas 1,222 1,231 (9) (0.7%)
Sun City Palm Desert 513 500 13 2.6%
Sun Cities Northern California 825 771 54 7.0%
Sun City Hilton Head 273 420 (147) (35.0%)
Sun City Texas 301 308 (7) (2.3%)
Sun City at Huntley 339 735 (396) (53.9%)
Florida communities 290 276 14 5.1%
Other communities 250 381 (131) (34.4%)
- ------------------------------------------------------------------------------------------------------------------
Total active adult communities 5,100 6,017 (917) (15.2%)
- ------------------------------------------------------------------------------------------------------------------
Family and country club communities:
Arizona country club communities 371 371 0 0.0%
Nevada country club community 272 268 4 1.5%
Arizona family communities 1,066 1,344 (278) (20.7%)
Nevada family communities 229 419 (190) (45.3%)
- ------------------------------------------------------------------------------------------------------------------
Total family and country club communities 1,938 2,402 (464) (19.3%)
- ------------------------------------------------------------------------------------------------------------------
Total 7,038 8,419 (1,381) (16.4%)
==================================================================================================================
Included in home closings for the three months and fiscal year ended June 30,
2000 were models and vacation getaway homes sold with long-term leasebacks.
Profits on the closings of these units were deferred and are being amortized as
reductions of selling, general and administrative expenses over the leaseback
periods, offsetting substantially all of the related rent expense. Sun City
Grand had 2 such home closings for the three months and 162 for the fiscal year.
The Sun Cities Las Vegas had 1 and 33 for the three months and fiscal year,
respectively. The Nevada country club community 13 for the fiscal year.
8
DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
AT JUNE 30, CHANGE
- ------------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ------------------------------------------------------------------------------------------------------------------------------
BACKLOG DATA:
- -------------
Homes under contract:
Active adult communities:
Sun City Grand 506 561 (55) (9.8%)
Sun Cities Las Vegas 454 543 (89) (16.4%)
Sun City Palm Desert 316 246 70 28.5%
Sun Cities Northern California 618 396 222 56.1%
Sun City Hilton Head 138 138 0 0.0%
Sun City Texas 274 218 56 25.7%
Sun City at Huntley 206 145 61 42.1%
Florida communities 277 209 68 32.5%
Other communities 133 133 0 0.0%
- ------------------------------------------------------------------------------------------------------------------------------
Total active adult communities 2,922 2,589 333 12.9%
- ------------------------------------------------------------------------------------------------------------------------------
Family and country club communities:
Arizona country club communities 177 234 (57) (24.4%)
Nevada country club community 176 163 13 8.0%
Arizona family communities 407 510 (103) (20.2%)
Nevada family communities 0 115 (115) (100.0%)
- ------------------------------------------------------------------------------------------------------------------------------
Total family and country club communities 760 1,022 (262) (25.6%)
- ------------------------------------------------------------------------------------------------------------------------------
Total 3,682 3,611 71 2.0%
==============================================================================================================================
Aggregate contract sales amount
(dollars in millions) $ 994 $ 952 $ 42 4.4%
==============================================================================================================================
Average contract sales amount per
home (dollars in thousands) $ 270 $ 264 $ 6 2.3%
==============================================================================================================================
9
DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
THREE MONTHS ENDED
JUNE 30, CHANGE
- ----------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ----------------------------------------------------------------------------------------------------------------------------
AVERAGE REVENUE PER HOME CLOSING:
- ---------------------------------
Active adult communities:
Sun City Grand $ 207,100 $ 193,900 $ 13,200 6.8%
Sun Cities Las Vegas 288,000 236,300 51,700 21.9%
Sun City Palm Desert 294,900 284,800 10,100 3.5%
Sun Cities Northern California 317,800 293,900 23,900 8.1%
Sun City Hilton Head 256,200 237,000 19,200 8.1%
Sun City Texas 238,200 237,700 500 0.2%
Sun City at Huntley 253,600 249,900 3,700 1.5%
Florida communities 160,000 143,200 16,800 11.7%
Other communities 149,500 182,000 (32,500) (17.9%)
Average active adult communities 255,300 234,700 20,600 8.8%
Family and country club communities:
Arizona country club communities 333,700 318,100 15,600 4.9%
Nevada country club community 491,700 450,800 40,900 9.1%
Arizona family communities 225,100 222,900 2,200 1.0%
Nevada family communities 240,000 158,700 81,300 51.2%
Average family and country club communities 289,100 263,000 26,100 9.9%
Total average 265,000 243,100 21,900 9.0%
============================================================================================================================
FISCAL YEAR ENDED
JUNE 30, CHANGE
- -----------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- -----------------------------------------------------------------------------------------------------------------------
AVERAGE REVENUE PER HOME CLOSING:
- ---------------------------------
Active adult communities:
Sun City Grand $ 211,100 $ 181,600 $ 29,500 16.2%
Sun Cities Las Vegas 247,400 230,300 17,100 7.4%
Sun City Palm Desert 305,500 277,900 27,600 9.9%
Sun Cities Northern California 308,200 281,700 26,500 9.4%
Sun City Hilton Head 249,000 210,800 38,200 18.1%
Sun City Texas 242,500 233,700 8,800 3.8%
Sun City at Huntley 252,400 235,500 16,900 7.2%
Florida communities 155,500 139,800 15,700 11.2%
Other communities 174,000 204,700 (30,700) (15.0%)
Average active adult communities 246,600 223,200 23,400 10.5%
Family and country club communities:
Arizona country club communities 343,600 288,500 55,100 19.1%
Nevada country club community 447,200 438,600 8,600 2.0%
Arizona family communities 230,300 215,100 15,200 7.1%
Nevada family communities 223,000 182,400 40,600 22.3%
Average family and country club communities 281,600 245,700 35,900 14.6%
Total average 256,300 229,600 26,700 11.6%
========================================================================================================================
Average revenue per home closing for the models and vacation getaway homes with
long-term leasebacks at Sun City Grand was $119,000 and $100,300 for the three
months and fiscal year respectively ended June 30, 2000. At the Sun Cities Las
Vegas, the average revenue for these home closings was $405,000 for the three
months and $266,500 for the fiscal year. At the Nevada country club community,
the average revenue for these home closings was $492,100 for the fiscal year.
10
DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
THREE MONTHS ENDED
JUNE 30, CHANGE
- -------------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- -------------------------------------------------------------------------------------------------------------------------------
OPERATING STATISTICS:
- ---------------------
Costs and expenses as a percentage of revenues:
Home construction, land and other 75.3% 76.8% (1.5%) (2.0%)
Selling, general and administrative 13.0% 12.5% 0.5% 4.0%
Interest 3.8% 4.1% (0.3%) (7.3%)
Ratio of home closings to homes under
contract in backlog at beginning of period 54.7% 62.2% (7.5%) (12.1%)
===============================================================================================================================
FISCAL YEAR ENDED
JUNE 30, CHANGE
- ----------------------------------------------------------------------------------------------------------------------------
2001 2000 AMOUNT PERCENT
- ----------------------------------------------------------------------------------------------------------------------------
OPERATING STATISTICS:
- ---------------------
Costs and expenses as a percentage of revenues:
Home construction, land and other 75.7% 77.2% (1.5%) (1.9%)
Selling, general and administrative 13.3% 13.2% 0.1% 0.8%
Interest 3.8% 4.2% (0.4%) (9.5%)
Ratio of home closings to homes under
contract in backlog at beginning of period 194.9% 187.8% 7.1% 3.8%
============================================================================================================================
NOTES:
- ------
New orders are net of cancellations. The Company recognizes revenue at the close
of escrow.
The Sun Cities Las Vegas include Sun City Summerlin (which is built out), Sun
City MacDonald Ranch and Sun City Anthem.
The Sun Cities Northern California include Sun City Roseville (which is built
out) and Sun City Lincoln Hills.
Other active adult communities represent two smaller-scale communities in
Arizona and California.
Home closings began at Anthem Country Club (an Arizona country club community
near Phoenix) in September 1999.
A substantial majority of the backlog at June 30, 2001 is currently anticipated
to result in revenues in the next 12 months. However, a majority of the backlog
is contingent primarily upon the availability of financing for the customer and,
in certain cases, sale of the customer's existing residence. Also, as a
practical matter, the Company's ability to obtain damages for breach of contract
by a potential home buyer is limited to retaining all or a portion of the
deposit received. In the fiscal year ended June 30, 2001 and 2000, cancellations
of home sales orders as a percentage of new home sales orders written during the
period were 14.4 percent and 14.0 percent, respectively.
11
DEL WEBB CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In Thousands Except Per Share Data)
(Unaudited)
THREE MONTHS ENDED FISCAL YEAR ENDED
JUNE 30, JUNE 30,
- -----------------------------------------------------------------------------------------------------------------------------------
2001 2000 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
Revenues $ 602,289 $ 635,029 $ 1,936,117 $ 2,040,003
- -----------------------------------------------------------------------------------------------------------------------------------
Costs and expenses:
Home construction, land and other 453,238 487,473 1,465,381 1,575,043
Selling, general and administrative 78,079 79,553 258,007 269,704
Interest 22,587 26,275 73,386 85,623
- -----------------------------------------------------------------------------------------------------------------------------------
553,904 593,301 1,796,774 1,930,370
- -----------------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes 48,385 41,728 139,343 109,633
Income taxes 17,419 11,022 48,164 35,468
- -----------------------------------------------------------------------------------------------------------------------------------
Net earnings $ 30,966 $ 30,706 $ 91,179 $ 74,165
===================================================================================================================================
Weighted average shares outstanding - basic 18,706 18,343 18,542 18,289
===================================================================================================================================
Weighted average shares outstanding -
assuming dilution 19,457 18,412 19,051 18,550
===================================================================================================================================
Net earnings per share - basic $ 1.66 $ 1.67 $ 4.92 $ 4.06
===================================================================================================================================
Net earnings per share - assuming dilution $ 1.59 $ 1.67 $ 4.79 $ 4.00
===================================================================================================================================
12
DEL WEBB CORPORATION AND SUBSIDIARIES
REVENUES AND COSTS AND EXPENSES DETAIL
(Dollars In Thousands)
(Unaudited)
THREE MONTHS ENDED
JUNE 30,
- --------------------------------------------------------------------------------------------------
2001 2000
- --------------------------------------------------------------------------------------------------
Revenues:
Homebuilding:
Active adult communities $ 387,510 $ 401,183
Family and country club communities 177,509 190,688
- --------------------------------------------------------------------------------------------------
565,019 591,871
Models/vacation getaway homes with
long-term leaseback -- 833
- --------------------------------------------------------------------------------------------------
Total homebuilding 565,019 592,704
Land and facility sales 28,021 26,548
Other 9,249 15,777
- --------------------------------------------------------------------------------------------------
$ 602,289 $ 635,029
==================================================================================================
Costs and expenses:
Home construction and land:
Active adult communities $ 285,470 $ 304,460
Family and country club communities 141,043 150,485
- --------------------------------------------------------------------------------------------------
426,513 454,945
Models/vacation getaway homes with
long-term leaseback -- 833
- --------------------------------------------------------------------------------------------------
Total homebuilding 426,513 455,778
Cost of land and facility sales 20,085 18,815
Other cost of sales 6,640 12,880
- --------------------------------------------------------------------------------------------------
Total home construction, land and other 453,238 487,473
Selling, general and administrative 78,079 79,553
Interest 22,587 26,275
- --------------------------------------------------------------------------------------------------
$ 553,904 $ 593,301
==================================================================================================
Margin percentages:
Homebuilding gross margin:
Active adult communities 26.3% 24.1%
Family and country club communities 20.5% 21.1%
- --------------------------------------------------------------------------------------------------
24.5% 23.1%
Models/vacation getaway homes with
long-term leaseback -- --
- --------------------------------------------------------------------------------------------------
Total homebuilding gross margin 24.5% 23.1%
Gross margin on land and facility sales 28.3% 29.1%
Gross margin on other revenues 28.2% 18.4%
- --------------------------------------------------------------------------------------------------
Total gross margin 24.7% 23.2%
Selling, general and administrative 13.0% 12.5%
- --------------------------------------------------------------------------------------------------
Earnings before interest and taxes 11.8% 10.7%
Interest 3.8% 4.1%
- --------------------------------------------------------------------------------------------------
Earnings before taxes 8.0% 6.6%
Income taxes 2.9% 1.7%
- --------------------------------------------------------------------------------------------------
Net earnings 5.1% 4.8%
==================================================================================================
FISCAL YEAR ENDED
JUNE 30,
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2001 2000
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Revenues:
Homebuilding:
Active adult communities $ 1,257,888 $ 1,318,092
Family and country club communities 545,710 583,744
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1,803,598 1,901,836
Models/vacation getaway homes with
long-term leaseback -- 31,435
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Total homebuilding 1,803,598 1,933,271
Land and facility sales 102,197 76,237
Other 30,322 30,495
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$ 1,936,117 $ 2,040,003
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Costs and expenses:
Home construction and land:
Active adult communities $ 933,338 $ 997,487
Family and country club communities 429,484 463,454
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1,362,822 1,460,941
Models/vacation getaway homes with
long-term leaseback -- 31,435
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Total homebuilding 1,362,822 1,492,376
Cost of land and facility sales 78,020 59,765
Other cost of sales 24,539 22,902
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Total home construction, land and other 1,465,381 1,575,043
Selling, general and administrative 258,007 269,704
Interest 73,386 85,623
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$ 1,796,774 $ 1,930,370
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Margin percentages:
Homebuilding gross margin:
Active adult communities 25.8% 24.3%
Family and country club communities 21.3% 20.6%
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24.4% 23.2%
Models/vacation getaway homes with
long-term leaseback -- --
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Total homebuilding gross margin 24.4% 22.8%
Gross margin on land and facility sales 23.7% 21.6%
Gross margin on other revenues 19.1% 24.9%
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Total gross margin 24.3% 22.8%
Selling, general and administrative 13.3% 13.2%
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Earnings before interest and taxes 11.0% 9.6%
Interest 3.8% 4.2%
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Earnings before taxes 7.2% 5.4%
Income taxes 2.5% 1.7%
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Net earnings 4.7% 3.6%
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