Schuler Homes’
profits jump 134%

Mainland expansion lifts
revenues while the isles' flat
market shows signs of life

By Russ Lynch
Star-Bulletin

Strong sales on the mainland resulted in a 134 percent increase in second-quarter net income at Honolulu-based Schuler Homes Inc.

The company today reported a profit of $6.7 million, or 34 cents a share, for the three months through June 30, up from $2.9 million, or 14 cents a share, in the year-earlier quarter.

The earnings beat Wall Street analysts' expectations but Schuler's stock nevertheless closed down 12 cents to $7.12 today on the Nasdaq.

Residential real estate sales of $131.6 million in the latest quarter were up 95.3 percent from $67.4 million in the 1998 quarter, the company said.

The company's Hawaii business was basically flat, with 93 homes delivered to buyers in the latest quarter compared with 94 in the 1998 period.

But Hawaii is looking up, the company noted, with a backlog of 87 homes sold but not completed as of June 30, a 14.5 percent percent increase from 76 at the same time last year.

Still, the average price of the Hawaii homes yet to be delivered fell 8.2 percent to $274,500, from $298,880 a year ago.

Schuler also delivered four homes in the latest quarter through joint ventures with other companies, compared to seven in the year-earlier period, and had four undelivered through joint ventures at the end of June at an average price of $108,000, compared with a backlog of six joint-venture homes at the same time last year, at an average of $126,333.

Schuler's strongest business in the latest quarter was in Colorado, where it delivered 360 homes, a 48.1 percent increase from the 243 delivered in the year-earlier quarter.

The company ended June with a Colorado backlog of 566 homes sold but not yet delivered, at an average price of $179,611.

At the same time last year, Schuler had a Colorado backlog of 436 homes at an average price of $162,096.

The company also had increased sales in Northern California, Oregon and Washington.