Back to GetFilings.com



SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
(Mark One)
 
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended September 30, 2002
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from              to             
 
0-23270
Commission File Number
 
 
Dominion Homes, Inc.
(Exact name of registrant as specified in its charter)
 
Ohio
  
31-1393233
(State or other jurisdiction of
  
(I.R.S. Employer
incorporation or organization)
  
Identification No.)
 
5501 Frantz Road, Dublin, Ohio
(Address of principal executive offices)
 
43017-0766
(Zip Code)
 
(614) 761-6000
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
 
1.
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  ¨
 
Number of common shares outstanding as of November 12, 2002: 8,202,691
 

 
PART I – FINANCIAL INFORMATION
 
Item 1.    Financial Statements
 
Dominion Homes, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
 
    
September 30, 2002 (unaudited)
     
December 31, 2001
  
Assets
                  
Cash and cash equivalents
   
$
4,243
 
   
$
5,619
 
Accounts receivable, net:
                  
Trade
   
 
391
 
   
 
18
 
Due from financial institutions for residential closings
   
 
350
 
   
 
2,864
 
Real estate inventories:
                  
Land and land development costs
   
 
156,356
 
   
 
134,293
 
Homes under construction
   
 
101,136
 
   
 
91,734
 
Other
   
 
3,069
 
   
 
3,997
 
    
  
Total real estate inventories
   
 
260,561
 
   
 
230,024
 
    
  
Prepaid expenses and other
   
 
3,630
 
   
 
3,963
 
Deferred income taxes
   
 
6,763
 
   
 
5,865
 
Property and equipment, at cost
   
 
13,414
 
   
 
12,422
 
Less accumulated depreciation
   
 
(7,231
)
   
 
(6,229
)
    
  
Net property and equipment
   
 
6,183
 
   
 
6,193
 
    
  
Total assets
   
$
282,121
 
   
$
254,546
 
    
  
Liabilities and Shareholders' Equity
                  
Accounts payable, trade
   
$
12,422
 
   
$
9,483
 
Deposits on homes under contract
   
 
2,463
 
   
 
2,684
 
Accrued liabilities
   
 
32,664
 
   
 
26,943
 
Note payable, banks
   
 
106,540
 
   
 
131,511
 
Term debt
   
 
2,134
 
   
 
2,358
 
    
  
Total liabilities
   
 
156,223
 
   
 
172,979
 
    
  
Commitments and contingencies
                  
Shareholders’ equity
                  
Common shares, without stated value, 12,000,000 shares authorized, 8,203,211 shares issued and 8,132,691 shares outstanding on September 30, 2002 and 6,433,057 shares issued and 6,408,057 shares outstanding on December 31, 2001
   
 
60,744
 
   
 
31,850
 
Deferred compensation
   
 
(881
)
   
 
(332
)
Retained earnings
   
 
69,544
 
   
 
51,951
 
Accumulated other comprehensive loss
   
 
(2,489
)
   
 
(1,730
)
Treasury stock, at cost (70,520 shares at September 30, 2002 and 25,000 shares at December 31, 2001)
   
 
(1,020
)
   
 
(172
)
    
  
Total shareholders’ equity
   
 
125,898
 
   
 
81,567
 
    
  
Total liabilities and shareholders’ equity
   
$
282,121
 
   
$
254,546
 
    
  
 
The accompanying notes are an integral part of the consolidated financial statements.

2

 
Dominion Homes, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
 
    
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
    
2002
   
2001
   
2002
   
2001
Revenues
   
$
139,360
   
$
121,053
   
$
370,900
   
$
279,064
Cost of real estate sold
   
 
106,654
   
 
92,712
   
 
285,961
   
 
214,925
    
  
  
  
Gross profit
   
 
32,706
   
 
28,341
   
 
84,939
   
 
64,139
Selling, general and administrative
   
 
18,491
   
 
14,940
   
 
48,123
   
 
38,479
    
  
  
  
Income from operations
   
 
14,215
   
 
13,401
   
 
36,816
   
 
25,660
Interest expense
   
 
1,912
   
 
2,970
   
 
6,777
   
 
8,266
    
  
  
  
Income before income taxes
   
 
12,303
   
 
10,431
   
 
30,039
   
 
17,394
Provision for income taxes
   
 
5,076
   
 
4,550
   
 
12,446
   
 
7,476
    
  
  
  
Net income
   
$
7,227
   
$
5,881
   
$
17,593
   
$
9,918
    
  
  
  
Earnings per share
                            
Basic
   
$
.90
   
$
.93
   
$
2.50
   
$
1.56
    
  
  
  
Diluted
   
$
.89
   
$
.89
   
$
2.46
   
$
1.51
    
  
  
  
Weighted average shares outstanding
                            
Basic
   
 
8,025,071
   
 
6,349,924
   
 
7,026,853
   
 
6,352,357
    
  
  
  
Diluted
   
 
8,142,590
   
 
6,585,335
   
 
7,143,744
   
 
6,568,799
    
  
  
  
 
The accompanying notes are an integral part of the consolidated financial statements.

3

 
Dominion Homes, Inc.
Consolidated Statement of Changes in Shareholders’ Equity
(In thousands)
(Unaudited)
 
         
Deferred Compensation
            
Accumulated Other Comprehensive Loss
                
    
Common Shares
   
Liability
     
Trust Shares
     
Retained Earnings
        
Treasury Stock
     
Total
  
Balance, December 31, 2001
   
$
31,850
   
$
834
 
   
$
(1,166
)
   
$
51,951
     
$
(1,730
)
   
$
(172
)
   
$
81,567
 
Net income
   
 
—  
   
 
—  
 
   
 
—  
 
   
 
17,593
     
 
—  
 
   
 
—  
 
   
 
17,593
 
Unrealized hedging loss, net of deferred taxes of $525
   
 
—  
   
 
—  
 
   
 
—  
 
   
 
—  
     
 
(759
)
   
 
—  
 
   
 
(759
)
                                                        
Comprehensive income
   
 
—  
   
 
—  
 
   
 
—  
 
   
 
—  
     
 
—  
 
   
 
—  
 
   
 
16,834
 
                                                        
Shares awarded and redeemed
   
 
1,543
   
 
(576
)
   
 
—  
 
   
 
—  
     
 
—  
 
   
 
(848
)
   
 
119
 
Issuance of common shares
   
 
27,351
   
 
—  
 
   
 
—  
 
   
 
—  
     
 
—  
 
   
 
—  
 
   
 
27,351
 
Shares distributed from trust for deferred compensation
   
 
—  
   
 
(95
)
   
 
95
 
   
 
—  
     
 
—  
 
   
 
—  
 
   
 
—  
 
Deferred compensation
   
 
—  
   
 
187
 
   
 
(160
)
   
 
—  
     
 
—  
 
   
 
—  
 
   
 
27
 
    
  
  
  
    
  
  
Balance September 30, 2002
   
$
60,744
   
$
350
 
   
$
(1,231
)
   
$
69,544
     
$
(2,489
)
   
$
(1,020
)
   
$
125,898
 
    
  
  
  
    
  
  
 
The accompanying notes are an integral part of the consolidated financial statements.

4

 
Dominion Homes, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
    
Nine Months Ended September 30,
  
    
2002
     
2001
  
Cash flows from operating activities
                  
Net income
   
$
17,593
 
   
$
9,918
 
Adjustments to reconcile net income to cash used in operating activities:
                  
Depreciation and amortization
   
 
1,372
 
   
 
1,647
 
Issuance of common shares for compensation
   
 
30
 
   
 
—  
 
Reserve for real estate inventories
   
 
1,547
 
   
 
—  
 
Deferred income taxes
   
 
(373
)
   
 
(79
)
Changes in assets and liabilities:
                  
Accounts receivable
   
 
2,141
 
   
 
420
 
Real estate inventories
   
 
(31,153
)
   
 
(36,959
)
Prepaid expenses and other