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Contact: John Spencer
(602) 808-8008(o)
Don Mickus
(602) 808-8004(o)
FOR IMMEDIATE RELEASE
DEL WEBB ANNOUNCES SECOND QUARTER
INCREASES IN ORDERS, CLOSINGS
Phoenix, AZ (Jan. 11, 1997) (WBB:NYSE/PSE) -- Del Webb Corporation
announced today that net new orders for its second quarter ended December 31,
1996 increased 5.8%, to 1,310 net new orders, compared with 1,238 net new
orders for the comparable quarter in the prior year. The increase in net new
orders for the second quarter was due primarily to the 40.9% increase in net
new orders at the Sun Cities Phoenix, which was a result of new order activity
associated with the opening of Sun City Grand in October 1996.
Home closings for the second quarter totaled 1,513, a 25.4% increase
from 1,207 closings for the comparable quarter in the prior year. Consistent
with the Company's experience in the quarter ended September 30, 1996, there
was an increase in closings at newer communities in the second quarter which,
as is common with newer communities, is expected to result in a decrease in the
average revenue and gross margin per home closing. As a result, the increase in
home closings in the second quarter is not expected to result in an increase in
earnings over the comparable period in the prior year.
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For the six months ended December 31, 1996, net new orders increased to
2,441, up 1.6% from 2,402 net new orders for the comparable period in the prior
year. Home closings increased 26.4% for the six month period, to 2,895 closings
from 2,290 closings for the comparable period in the prior year. Backlog at
December 31, 1996 totaled 2,745 homes under contract, a decrease of 8.3% from a
backlog of 2,992 at December 31, 1995.
Del Webb Corporation, based in Phoenix, is one of the nation's leading
builders of active adult communities for people 55 and older, with Sun Cities
near Phoenix and Tucson, Arizona; Las Vegas, Nevada; Palm Desert and Roseville,
California; Hilton Head, South Carolina; and Georgetown, Texas. It also builds
homes at Terravita, a recreation-oriented community for people of all ages in
Scottsdale, Arizona; and builds conventional housing in Phoenix, Tucson and
north-central Arizona; Las Vegas, Nevada; and southern California.
The statements in this release relating to the financial results for
the quarter ended December 31, 1996 are forward-looking statements and actual
results may differ from those projected or implied.
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DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
Three Months Ended Six Months Ended
December 31, Change December 31, Change
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1996 1995 Amount Percent 1996 1995 Amount Percent
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OPERATING DATA:
Number of net new orders:
Sun Cities Phoenix (1) 348 247 101 40.9% 622 404 218 54.0%
Sun City Tucson 14 30 (16) (53.3%) 38 71 (33) (46.5%)
Sun Cities Las Vegas (2) 270 283 (13) (4.6%) 479 510 (31) (6.1%)
Sun City Palm Desert 51 37 14 37.8% 65 67 (2) (3.0%)
Sun City Roseville 96 102 (6) (5.9%) 194 252 (58) (23.0%)
Sun City Hilton Head 60 89 (29) (32.6%) 136 149 (13) (8.7%)
Sun City Georgetown 92 44 48 109.1% 193 175 18 10.3%
Terravita 75 91 (16) (17.6%) 103 147 (44) (29.9%)
Coventry Homes 304 315 (11) (3.5%) 611 627 (16) (2.5%)
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Total 1,310 1,238 72 5.8% 2,441 2,402 39 1.6%
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Number of home closings:
Sun Cities Phoenix (1) 266 208 58 27.9% 498 404 94 23.3%
Sun City Tucson 24 69 (45) (65.2%) 79 135 (56) (41.5%)
Sun Cities Las Vegas (2) 278 172 106 61.6% 531 369 162 43.9%
Sun City Palm Desert 50 50 - - 93 93 - -
Sun City Roseville 155 167 (12) (7.2%) 328 311 17 5.5%
Sun City Hilton Head 110 87 23 26.4% 185 109 76 69.7%
Sun City Georgetown 144 N/A 144 N/A 287 N/A 287 N/A
Terravita 103 122 (19) (15.6%) 187 231 (44) (19.0%)
Coventry Homes 383 332 51 15.4% 707 638 69 10.8%
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Total 1,513 1,207 306 25.4% 2,895 2,290 605 26.4%
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BACKLOG DATA:
Homes under contract at December 31:
Sun Cities Phoenix (1) 677 502 175 34.9%
Sun City Tucson 4 85 (81) (95.3%)
Sun Cities Las Vegas (2) 590 543 47 8.7%
Sun City Palm Desert 84 121 (37) (30.6%)
Sun City Roseville 243 512 (269) (52.5%)
Sun City Hilton Head 144 189 (45) (23.8%)
Sun City Georgetown 284 297 (13) (4.4%)
Terravita 220 214 6 2.8%
Coventry Homes 499 529 (30) (5.7%)
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Total 2,745 2,992 (247) (8.3%)
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Aggregate contract sales amount
(dollars in millions) $ 537 $ 569 $ (32) (5.6%)
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Average contract sales amount per
home (dollars in thousands) $ 196 $ 190 $ 6 3.2%
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(1) Includes Sun City West and Sun City Grand.
(2) Includes Sun City Summerlin and Sun City MacDonald Ranch.