Housing Bubble
Orleans Homebuilders announces income increase
February 14, 2003
Orleans Homebuilders, Inc. (AMEX:OHB) , a residential home builder with operations in New Jersey, North Carolina, Pennsylvania, South Carolina and Virginia, today reported a 53.1% increase in net income available for common shareholders for the first six months of fiscal 2003 compared with the prior year comparable period. Net income available for common shareholders was $11,882,000 ($.98 and $.72 basic and diluted earnings per share, respectively) for the six months ended December 31, 2002, as compared to $7,762,000 ($.67 and $.49 basic and diluted earnings per share, respectively) for the six months ended December 31, 2001. The Company's backlog at December 31, 2002 of $231,831,000 (650 homes) increased 25.8% compared to $184,296,000 (632 homes) at December 31, 2001.
Revenues increased by $5,352,000, or 3.2%, to $174,568,000 for the six months ended December 31, 2002 compared to revenues of $169,216,000 for the six months ended December 31, 2001. A total of 580 homes were delivered during the six months ended December 31, 2002, compared to 632 homes during the prior fiscal year comparable period. The increase in revenue earned is due to an increase in northern region revenue earned, partially offset by a decrease in southern region residential revenue earned, compared with the prior six months ended December 31, 2001. The decrease in southern region residential revenue earned is due to a shift in homebuyer patterns to more pre-construction sales rather than pre-built specification home sales. Fewer homes have been delivered in the first six months of fiscal 2003 when compared with the same period in fiscal 2002 as pre-construction new orders take longer to fulfill than new orders for pre-built specification homes. The overall increase in revenues for the first six months of fiscal 2003, as compared to the first six months of fiscal 2002, is primarily attributable to a change in the Company's product offerings, to more single family homes, as well as an increase in unit sales prices due to favorable economic conditions in the homebuilding industry. Overall, unit sales prices have increased at a majority of communities open during the first six months of fiscal 2003 when compared with the same communities and units offered for sale in first six months of fiscal 2002.
New orders for the six months ended December 31, 2002 increased by $47,040,000, or 31.2%, to $197,995,000, on 583 orders, compared to $150,955,000, on 574 orders for the six months ended December 31, 2001. The average price per new order increased to approximately $340,000 per home for first six months of fiscal year 2003 compared to approximately $263,000 per home for the prior fiscal year comparable period. The increase dollar value of new orders for the first six months of fiscal year 2003 was due to favorable economic conditions in the homebuilding industry, most notably, favorable financing conditions and a change in the Company's product offerings, to more single family homes, as well as an increase in unit sales prices. The Company is well positioned as it currently controls approximately 8,500 building lots.
Source Orleans Homebuilders, Inc
