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Schuler Homes’
profits jump 32.9%

The firm also changes its
fiscal year and says its
merger with Western Pacific
should close in April

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By Russ Lynch
Star-Bulletin

Schuler Homes Inc., a Honolulu-headquartered residential real estate developer with extensive operations on the mainland, today reported a profit of $10.1 million for the quarter ended Dec. 31, up 32.9 percent from a profit of $7.6 million in the year-earlier quarter. The company earned 46 cents a share in the latest period, up 24.3 percent from 37 cents a share in the 1999 quarter.

Schuler recently changed its fiscal year to end March 31, from its usual Dec. 31, in step with its pending merger with California-based Western Pacific Housing Corp., which will double Schuler's size. The change made the latest quarter the third period of the new fiscal year instead of the fourth.

Revenues in the latest period were $153.5 million, up 1.7 percent from $150.9 million in the year-earlier quarter.

Schuler closed 631 home sales in the latest quarter, down 14.4 percent from 737 in the year-earlier quarter. Hawaii sales, included those from joint ventures, totaled 95 in the latest quarter, equal to 95 in the year-earlier period.

The biggest number of sales was in Colorado, 268 in the 2000 quarter, down 32.5 percent from 397 in the 1999 period.

Schuler ended December with a backlog of homes and lots ordered but not yet delivered of 982 properties worth $239.8 million, up from a year-earlier backlog of 974, worth $208.7 million.

All of the company's numbers will change radically when the deal with privately held Western Pacific is wrapped up, which is now expected to happen in April.

Schuler included some pro forma numbers in its latest report, showing what the October-December quarter would have looked like if Western Pacific's results were included. They showed combined revenues of $353.6 million and a profit of $20.6 million, or 49 cents a share, in the latest quarter.

"The combination with Western Pacific will effectively double the size and equity-market capitalization of the company," said James K. Schuler, president, chief executive officer and board chairman of Schuler Homes. He said it will be a major step toward getting a higher profile in the investment community and providing shareholders with greater liquidity in their stock.

"This merger of equals creates a well-diversified homebuilder operating in some of the strongest markets in the nation, a management team with significant local expertise and a solid history of growth and high profitability," Schuler said.