net soars 63%
Higher revenues fromBy Russ Lynch
the Hawaii market and
strong mainland growth
boosted profit margins
Booming business on the mainland as well as improved revenues in Hawaii boosted Schuler Homes Inc.'s second-quarter profit 63 percent to $10.9 million from $6.7 million a year earlier, the company said today.
Earnings were equal to 51 cents a share in the latest period, up 50 percent from 34 cents in the 1999 quarter, and second-quarter revenues of $173.2 million were up 31.6 percent from $131.6 million.
The company's stock, traded on the Nasdaq market, rose 50 cents to close at $6.87 today.
Housing markets were strong in the company's mainland areas, particularly in Colorado, Northern California and Washington state, the company said. Prices were higher in those markets, the company said.
Revenues and operating results in Hawaii also were higher than last year, said James K. Schuler, chairman, chief executive officer and president.
However, the company did not disclose separate revenue figures for Hawaii.
Schuler Homes closed sales of 812 homes and lots in the latest quarter, an increase of 15 percent from 706 in the year-earlier period. In Hawaii, the company completed sales of 93 units, a 4.1 percent decrease from 97 in the year-earlier quarter, but Schuler said revenues and operating profits in the Hawaii business were higher than in a year earlier.
At the end of June, the company had a backlog of 1,000 homes and lots sold but not yet delivered, an increase of 2.1 percent from 979 units in mid-1999. The backlog sales value was $231.4 million, up 18.5 percent from a year-earlier $195.2 million.
The Hawaii backlog at the end of June was 73 units, down 27 percent from 100 units a year earlier and worth $22 million, down 8 percent from $23.9 million.
The company said the upward trend in mortgage interest rates could make it more difficult to get higher prices for properties and could result in lower profit margins through the rest of 2000 than were achieved in the second quarter, which ended June 30.