(from www.sec.gov)
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Washington Homes Inc. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 175,025 | (4.6) |
| Net Income | 3,747 | (25.7) |
Description:
Washington Homes designs, builds and sells detached houses, town houses and condominium units. It is a major producer of moderately priced homes in the Washington area, as well as in Pittsburgh. Its Westminster Homes building division sells homes in Charlotte, Raleigh and Greensboro, N.C., and Nashville. The company also has a mortgage financing subsidiary, Homebuyer's Mortgage, and a title services subsidiary, New Homebuyer's Title, and a homeowners' insurance subsidiary, New Homebuyer's Insurance.
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Washington Homes continues on the diversification campaign it began three years ago when it acquired Westminster Homes, trying to further reduce its reliance on sales in the sluggish but highly competitive Washington area. Local sales account now account for 62 percent of the company's deliveries and the company ultimately hopes to reduce that percentage to 50 percent.
In addition to geographic diversification, Washington Homes has entered into a number of joint ventures to create subsidiaries related to the home-buying process. Its title company handled 588 closings in the Washington area last year. The insurance subsidiary was created this past year.
Washington Homes also opened its first centralized design center where home buyers can select interior fixtures and appliances—hoping to increase sales of the more profitable options while reducing the company's costs of a centralized selection center.
Washington Homes President and Chief Executive Geaton A. DeCesaris Jr. acknowledged in the company's annual report that earnings were disappointing for the fiscal year, ended July 31. Earnings dropped by 26 percent, to $3.7 million, from $5 million, and new orders were flat. Revenue also was down by 5 percent, to $175 million, from $183.5 million. The company said earnings were lower than expected because it took longer to get models built in the new markets the company was entering, resulting in fewer sales and higher operating losses.
The financial picture has improved for the first six months of this fiscal year, with earnings up 45 percent, to $1.6 million, from $1.1 million. Revenue was up 31 percent, to $95.3 million, from $72.7 million a year ago.
