Exhibit 99.1
For Immediate Release For additional information contact:
Peter J. O'Hanlon or Jon M. Donnell
(614) 761-6000
Dominion Homes Reports Record
Net Income for the Third Quarter
And First Nine Months of 2002
DUBLIN, Ohio - October 29, 2002 - Dominion Homes (NASDAQ:DHOM) reported net
income for the three months ended September 30, 2002 increased 23% to a record
$7.2 million from $5.9 million for the three months ended September 30, 2001.
Fully diluted earnings per share was $0.89 for both third quarter 2002 and 2001,
due principally to the dilutive impact of the sale by the Company of 1,503,900
of its common shares during June and July of 2002. The weighted average number
of fully diluted shares outstanding during the three months ended September 30,
2002 increased 24% to 8,142,590 shares, compared to 6,585,335 shares during the
three months ended September 30, 2001.
Revenues for third quarter 2002 increased 15% to $139.4 million, from the
delivery of 724 homes, compared to revenues for third quarter 2001 of $121.1
million, from the delivery of 631 homes. The $18.3 million increase in revenues
was primarily due to the delivery of 93 more homes resulting from a higher
percentage of closings of smaller, affordable homes and improved building times.
As a result of the increase in home deliveries, the Company's gross profit for
third quarter 2002 increased 15% to $32.7 million from $28.3 million for third
quarter 2001. Increases in selling, general and administrative expenses are
mainly attributable to variable costs associated with delivering more homes.
Interest expense declined 36% or $1.1 million, due principally to the reduction
of debt that resulted from the sale of additional common shares.
Net income for the first nine months of 2002 increased 77% to a record $17.6
million from $9.9 million for the same period last year. Fully diluted earnings
per share increased to $2.46 per share for the first nine months of 2002,
compared to $1.51 per share for the same period the previous year. As a result
of the Company's sale of common shares in June and July 2002, the weighted
average number of fully diluted shares outstanding during the nine months ended
September 30, 2002 increased to 7,143,744 shares, compared to 6,568,799 shares
during the nine months ended September 30, 2001.
Revenues for the first nine months of 2002 increased 33% to $370.9 million, from
the delivery of 1,944 homes, compared to revenues of $279.1 million for the same
period the previous year, from the delivery of 1,444 homes. Gross profit for the
first nine months of 2002 increased 32% to $84.9 million from $64.1 million for
the same period the previous year.
As previously reported in the Company's press release dated October 15, 2002,
the Company sold a third quarter record 605 homes during the three months ended
September 30, 2002, representing a sales value of $109.6 million, compared to
484 homes, representing a sales value of $89.7 million, sold during third
quarter 2001. The Company sold 1,947 homes during the first nine months of 2002,
representing a sales value of $355.3 million, compared to 1,779 homes,
representing a sales value of $332.6 million during the first nine months of
2001.
The Company had a backlog of 1,035 contracts, with a sales value of $198.3
million, on September 30, 2002 compared to a backlog of 1,112 contracts, with a
sales value of $214.7 million, on September 30, 2001.
The Company sold 1,450,000 common shares on June 28, 2002 and an additional
53,900 shares on July 29, 2002 for a total of 1,503,900 shares, all at a public
offering price of $20 per share. After payment of expenses, the Company used the
combined net proceeds of approximately $27.4 million to reduce debt.
Shareholders' equity at September 30, 2002 was $125.9 million versus $81.6
million at December 31, 2001.
The Company's third quarter 2002 conference call to discuss earnings will take
place at 4:00 PM on Tuesday October 29, 2002. Interested parties may listen in
by accessing the Company's website at www.dominionhomes.com, selecting either
the Central Ohio or Louisville, Kentucky location and then selecting "Third
Quarter Analyst's Webcast Conference Call."
Dominion Homes offers three distinct series of homes, which are differentiated
by size, price, standard features and available options. The Company's "The Best
of Everything" philosophy focuses on providing its customers with unsurpassed
products, quality, and customer service. There are currently over 50 Dominion
Homes locations in Central Ohio and Louisville, Kentucky. Additional information
about the Company and its homes is located on its website.
Certain statements in this news release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially. Such risks, uncertainties and
other factors include, but are not limited to, weather conditions, changes in
general economic conditions, fluctuations in interest rates, increases in raw
materials and labor costs, levels of competition and other factors described in
the Company's Annual Report and Form 10-K for the year ended December 31, 2001
and our Registration Statement filed on May 31, 2002. All forward-looking
statements made in this press release are based on information presently
available to the management of the Company. The Company assumes no obligation to
update any forward-looking statements.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except share and per share amounts)
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenues $ 139,360 $ 121,053 $ 370,900 $ 279,064
Cost of real estate sold 106,654 92,712 285,961 214,925
---------- ---------- ---------- ----------
Gross profit 32,706 28,341 84,939 64,139
Selling, general and administrative 18,491 14,940 48,123 38,479
---------- ---------- ---------- ----------
Income from operations 14,215 13,401 36,816 25,660
Interest expense 1,912 2,970 6,777 8,266
---------- ---------- ---------- ----------
Income before income taxes 12,303 10,431 30,039 17,394
Provision for income taxes 5,076 4,550 12,446 7,476
---------- ---------- ---------- ----------
Net income $ 7,227 $ 5,881 $ 17,593 $ 9,918
========== ========== ========== ==========
Earnings per share
Basic $ .90 $ .93 $ 2.50 $ 1.56
========== ========== ========== ==========
Diluted $ .89 $ .89 $ 2.46 $ 1.51
========== ========== ========== ==========
Weighted average shares outstanding
Basic 8,025,071 6,349,924 7,026,853 6,352,357
========== ========== ========== ==========
Diluted 8,142,590 6,585,335 7,143,744 6,568,799
========== ========== ========== ==========
Consolidated Balance Sheet
September 30, December 31,
2002 2001
-------- --------
ASSETS
Cash and cash equivalents $ 4,243 $ 5,619
Accounts receivable, net 741 2,882
Real estate inventories 260,561 230,024
Prepaid expenses and other 3,630 3,963
Deferred income taxes 6,763 5,865
Net property and equipment 6,183 6,193
----------- -----------
Total assets $ 282,121 $ 254,546
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Note payable, banks $ 106,540 $ 131,511
Term debt 2,134 2,358
Other liabilities 47,549 39,110
----------- ----------
Total liabilities 156,223 172,979
Total shareholders' equity 125,898 81,567
----------- -----------
Total liabilities and shareholders' equity $ 282,121 $ 254,546
=========== ===========
Land Inventory as of September 30, 2002
Unimproved
Finished Lots Under Land Total
Land Inventory Lots Development Estimated Lots Estimated Lots
- ------------------------------------ ------------------ ------------------ ---------------------- ------------------
Owned by the Company:
Central Ohio 1,085 1,304 5,838 8,227
Louisville, Kentucky 176 182 393 751
Controlled by the Company:
Central Ohio - - 5,919 5,919
Louisville, Kentucky - - 267 267
------------------ ------------------ ---------------------- ------------------
1,261 1,486 12,417 15,164
------------------ ------------------ ---------------------- ------------------
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