Brookfield Homes Net Income Increases 105% in 4th Qtr
02/18/2004
Up 116.2% (141% annualized) since we recommended the company
ten months ago, Brookfield Homes announced their 4th quarter
results today. Among the highlights, net income increased
105% and cash flow increased 70%. An excerpt from company's
press release follows:
Del Mar, California, February 18, 2004 –
(BHS: NYSE) Brookfield Homes Corporation today announced strong
financial results for the year ended December 31, 2003:
- Revenue increased 21% to $1,023 million
compared to $842 million for the same period in 2002.
- Net income totaled $88 million, an increase
of $45 million from the same period in 2002. The 2003 results
included $39 million generated from bulk land sales in California.
Earnings per share was $2.75 (including $1.20 from bulk
land sales) compared to $1.35 in 2002.
- Cash flow before financing activities
increased to $214 million, compared to $126 million in 2002,
improving the net debt to total capitalization ratio to
32% compared to 53% at the end of 2002.
“Our strong financial performance reflects
our business strategy of selective project acquisitions and
proactive asset management. In addition, we strengthened our
balance sheet, taking advantage of the strong market conditions
in California to sell over 4,700 surplus lots,” commented
Ian Cockwell, Brookfield Homes’ President and Chief Executive
Officer.
Outlook
“The current low interest rate environment
has continued to drive demand for move-up and luxury housing,
our market niche. Assuming these strong market dynamics continue,
and with our significant land holdings and a strong development
pipeline, we are well positioned and remain on track to deliver
1,750 homes in 2004 and 2,000 homes in 2005. Our earnings
guidance for 2004 is currently $2.85 per share, which excludes
any gains on bulk land sales. Looking ahead, our goal remains
the same - to add value to our shareholders through proactive
asset management, and expand into adjacent markets for future
growth,” concluded Cockwell.
Brookfield Homes Corporation
Brookfield Homes Corporation is a residential
homebuilder and land developer, building homes and developing
land in master-planned communities and infill locations. We
design, construct and market single-family and multi-family
homes primarily to move-up and luxury homebuyers. We also
develop land for our own communities and sell lots to other
homebuilders. Our portfolio includes over 21,000 lots owned
and controlled in the San Francisco Bay Area; Southland /
Los Angeles; San Diego / Riverside; Sacramento; and Northern
Virginia markets. For more information, visit the Brookfield
Homes website at www.brookfieldhomes.com.
Contact:
Brookfield Homes Corporation
Linda Northwood, 858-481-2567
lnorthwood@brookfieldhomes.com
Note: Certain statements in this press release
that are not historical facts, including information concerning
possible or assumed future results of operations of the company,
expected home closings and deliveries (and the timing thereof),
targeted 2004 earnings guidance, the company’s future outlook
and growth plans, and those statements preceded by, followed
by, or that include the words “planned”, “should”, “goals”,
“expected”, “targeted,” “scheduled” or similar expressions,
constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Undue
reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties
and other factors, which may cause the actual results to differ
materially from the anticipated future results expressed or
implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those set forward
in the forward-looking statements include, but are not limited
to: changes in general economic, real estate and other conditions;
mortgage rate changes; availability of suitable undeveloped
land at acceptable prices; adverse legislation or regulation;
ability to obtain necessary permits and approvals for the
development of our land; availability of labor or materials
or increases in their costs; ability to develop and market
our master-planned communities successfully; confidence levels
of consumers; ability to raise capital on favorable terms;
adverse weather conditions and natural disasters; relations
with the residents of our communities; risks associated with
increased insurance costs or unavailability of adequate coverage
and ability to obtain surety bonds; competitive conditions
in the homebuilding industry, including product and pricing
pressures; and additional risks and uncertainties referred
to in our Form 10-K and other SEC filings, many of which are
beyond our control. We undertake no obligation to publicly
update any forward-looking statements, whether as a result
of new information, future events or otherwise.
Source: Brookfield Homes Corporation
|
