Orleans Homebuilders Reports Record
$2.20 Earnings Per Share for Fiscal Year 2004
Updates Guidance for Fiscal Year 2005
BENSALEM, Pa., Aug 17, 2004 /PRNewswire-FirstCall via COMTEX/ -- Orleans
Homebuilders, Inc. (OHB)
is a residential homebuilder with operations in Southeastern Pennsylvania;
Central and Southern New Jersey; Charlotte, Greensboro and Raleigh, North
Carolina; Richmond and Tidewater, Virginia; and Orlando, Florida. In July
2004, the Company entered the Chicago, Illinois market with its acquisition
of Realen Homes. On August 9, 2004 the Company entered into a letter of
intent to acquire Peachtree Residential Properties, Inc. with operations in
Atlanta, Georgia and Charlotte, North Carolina. Including Peachtree
Residential Properties, Inc., fiscal year 2005 residential property revenues
are expected to be in excess of $900,000,000.
Financial Highlights for the Quarter Ended June 30, 2004:
-- Fiscal year 2004 fourth quarter earnings of $.82 per
diluted share
increased 21% compared with $.68 per
diluted share for the prior year
period.
-- The backlog at June 30, 2004 increased 37% to $390,827,000
(1,119
homes) compared with $285,767,000 (752
homes) at June 30, 2003.
-- Fiscal year 2004 fourth quarter new orders increased 20%
to
$160,435,000 (490 homes) compared with
$133,895,000 (379 homes) for
the prior year period.
-- Fiscal year 2004 fourth quarter residential property
revenue increased
55% to $206,318,000 (621 homes) compared
with $133,351,000 (405 homes)
for the prior year period.
-- Fiscal year 2004 fourth quarter EBITDA(1) increased 35% to
$28,201,000
compared with $20,879,000 for the prior
year period.
-- The Company currently controls approximately 14,700
building lots,
including lots acquired in the acquisition
of Realen Homes.
Financial Highlights for the Fiscal Year Ended June 30, 2004:
-- Fiscal year 2004 record earnings of $2.20 per diluted
share increased
33% compared with $1.65 per diluted share
for the prior fiscal year.
-- Fiscal year 2004 record new orders increased 31% to
$604,143,000
(1,822 homes) compared with $462,273,000
(1,348 homes) for the prior
fiscal year.
-- After tax returns on beginning equity and beginning
capital, including
redeemable common stock, are 42.1% and
19.9%, respectively.
-- Completion of an offering of 2,000,000 newly issued shares
of common
stock resulting in approximately
$46,000,000 in net proceeds.
-- Fiscal year 2004 record residential property revenue
increased 41% to
$540,745,000 (1,753 homes) compared with
$382,570,000 (1,243 homes)
for the prior fiscal year.
-- Fiscal year 2004 EBITDA(1) increased 33% to $71,749,000
compared with
$53,809,000 for the prior fiscal year.
Fiscal Year 2005 Guidance:
-- Primarily as a result of the July 2004 acquisition of
Realen Homes,
the Company raises its fiscal year ending
June 30, 2005 guidance to
$2.87 to $2.92 per diluted share from its
previous estimate of $2.38
to $2.43.
Additional recognition:
-- For the second consecutive year Orleans Homebuilders was
ranked by
Forbes Magazine as one of America's Ten
Best Small Companies.
-- For the second consecutive year Orleans Homebuilders was
listed by
Fortune Magazine as one of Fortune's 100
Fastest Growing Companies.
-- For the third consecutive year Masterpiece Homes won the
J.D. Power &
Associates award for Highest Owner
Satisfaction Among new Home
Builders in the Orlando Area.
"We are pleased with our new orders,
revenue and earnings growth for fiscal year 2004. Moreover, we are pleased
with our execution and successful expansion into new markets and our ability
to continue to obtain additional desirable building lots in all of our
markets," commented Jeffrey Orleans, Chairman and CEO. "We believe our
acquisition strategies, our land entitlement and development expertise and
our diversified product offerings will continue to increase our revenue and
earnings growth resulting in increased value for our shareholders."
Orleans Homebuilders will hold its quarterly
conference call to discuss fourth quarter and fiscal year results on
Wednesday, August 18, 2004, at 10:30 a.m. Eastern Time. This call is being
web cast by CCBN and can be accessed at Orleans Homebuilders' web site at
http://www.orleanshomes.com under
"Investor Relations." The web cast 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
http://www.fulldisclosure.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 (http://www.streetevents.com).
A replay of the conference call will be available later that day on the
Company's website at
http://www.orleanshomes.com. A copy of this press release, including the
Company's results of operations for the three months and fiscal year ended
June 30, 2004 to be discussed during the conference call, is available at
the Company's website,
http://www.orleanshomes.com, under "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 first-time, luxury, move-up,
empty nester and active adult homebuyers. The Company currently operates in
the following ten distinct markets: Southeastern Pennsylvania; Central and
Southern New Jersey; Charlotte, Raleigh and Greensboro, North Carolina;
Richmond and Tidewater, Virginia; Orlando, Florida; 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 http://www.orleanshomes.com.
Reconciliation of EBITDA to net income (1):
Three Months Three Months Fiscal Year Fiscal year
Ended 6/30/04 Ended 6/30/03 Ended 6/30/04 Ended 6/30/03
EBITDA $28,201,000 $20,879,000 $71,749,000 $53,809,000
Income tax expense (9,865,000) (7,318,000) (24,643,000) (17,758,000)
Interest (2,870,000) (2,190,000) (8,354,000) (8,305,000)
Depreciation (189,000) (149,000) (673,000) (449,000)
Net income $15,277,000 $11,222,000 $38,079,000 $27,297,000
(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.
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.
Orleans Homebuilders, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended For the Year Ended
June 30, June 30,
2004 2003 2004 2003
Earned revenues
Residential properties $206,318 $133,351 $540,745 $382,570
Land sales and other income 1,844 2,475 6,513 5,915
208,162 135,826 547,258 388,485
Costs and expenses
Residential properties 159,732 100,973 416,967 294,066
Land sales and other expense 1,400 1,837 4,869 4,311
Selling, general and
administrative 21,721 14,476 62,364 44,821
Interest, net 167 - 336 232
183,020 117,286 484,536 343,430
Income from operations before
income taxes 25,142 18,540 62,722 45,055
Income tax expense 9,865 7,318 24,643 17,758
Net income $15,277 $11,222 $38,079 $27,297
Net income 15,277 11,222 38,079 27,297
Preferred dividends - 52 104 210
Net income available for common
shareholders $15,277 $11,170 $37,975 $27,087
Earnings per share:
Basic $0.87 $0.87 $2.57 $2.18
Diluted $0.82 $0.68 $2.20 $1.65
Weighted average number of
shares:
Basic 17,523 12,794 14,784 12,441
Diluted 18,755 16,646 17,336 16,652
Supplemental information:
Reconciliation of EBITDA to net
income (1):
EBITDA $28,201 $20,879 $71,749 $53,809
Income tax expense (9,865) (7,318) (24,643) (17,758)
Interest (2,870) (2,190) (8,354) (8,305)
Depreciation and amortization (189) (149) (673) (449)
Net income $15,277 $11,222 $38,079 $27,297
(1) EBITDA is a non-GAAP financial measure representing net earnings
before interest expense, previously capitalized interest
amortized to residential properties cost of sales, income taxes,
depreciation, amortization and extraordinary items.
Orleans Homebuilders, Inc.
Summary of Deliveries, New Orders and Backlog by Region
(Dollars in thousands)
(Unaudited)
Three Months Ended For the Year Ended
June 30, June 30,
2004 2003 2004 2003
DELIVERIES
Northern Region (NJ, PA)
Homes 219 229 669 766
Dollars $99,271 $82,267 $274,606 $247,035
Average Sales Price $453 $359 $410 $323
Southern region (NC, SC, VA)
Homes 275 176 651 477
Dollars $87,971 $51,084 $204,798 $135,535
Average Sales Price $320 $290 $315 $284
Florida region (FL) (1)
Homes 127 - 433 -
Dollars $19,076 $- $61,341 $-
Average Sales Price $150 $- $142 $-
Total
Homes 621 405 1,753 1,243
Dollars $206,318 $133,351 $540,745 $382,570
Average Sales Price $332 $329 $308 $308
NEW ORDERS
Northern Region (NJ, PA)
Homes 182 216 670 761
Dollars $76,288 $84,991 $294,384 $286,345
Average Sales Price $419 $393 $439 $376
Southern region (NC, SC, VA)
Homes 181 163 698 587
Dollars $61,713 $48,904 $237,232 $175,928
Average Sales Price $341 $300 $340 $300
Florida region (FL) (1)
Homes 127 - 454 -
Dollars $22,434 $- $72,527 $-
Average Sales Price $177 $- $160 $-
Total
Homes 490 379 1,822 1,348
Dollars $160,435 $133,895 $604,143 $462,273
Average Sales Price $327 $353 $332 $343
(1) Information on deliveries and new orders is for the period beginning
July 28, 2003, the date the Company entered this market through its
acquisition of Masterpiece Homes, through June 30, 2004.
At June 30, At June 30,
BACKLOG 2004 2003
Northern Region (NJ, PA)
Homes 463 462
Dollars $209,712 $189,934
Average Sales Price $453 $411
Southern region (NC, SC, VA)
Homes 337 290
Dollars $128,267 $95,833
Average Sales Price $381 $330
Florida region (FL) (1)
Homes 319 -
Dollars $52,848 $-
Average Sales Price $166 $-
Total
Homes 1,119 752
Dollars $390,827 $285,767
Average Sales Price $349 $380
(1) Information on deliveries and new orders is for the period beginning
July 28, 2003, the date the Company entered this market through its
acquisition of Masterpiece Homes, through June 30, 2004.
Orleans Homebuilders, Inc
Selected Balance Sheet Data
(in thousands)
(Unaudited)
June 30, June 30,
2004 2003
Residential properties $140,401 $109,895
Land and improvements 161,265 100,791
Inventory not owned 88,995 18,443
Land deposits and costs of future
developments 23,356 19,978
Total assets 486,202 290,709
Obligations related to inventory not owned 81,992 17,643
Mortgage obligations secured by real estate 128,773 106,707
Notes payable 2,879 2,500
Shareholders' equity 174,905 89,539
SOURCE Orleans Homebuilders, Inc.
Joseph A. Santangelo, Chief Financial Officer, Orleans
Homebuilders, Inc., +1-215-245-7500
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