Home Builder Stock Review
Top Performing Home Builder Stocks Ending 5/23/2003.
Beverly Hills, CA May 27, 2003 (MarketWire) The Home Builder Stock Review issues the Top Performing Stock list, for the week ending 5/23/2003. During the Year to Date period, the Top 10 Performing Stocks in the Home Building sector gained 52% vs. a gain of 3% for Dow Jones Industrial Average.
NAME SYMBOL EXCHANGE CLOSE %GAIN
1. Ryland Homes (RYL) NYSE. $60.43 up 81%
2. Technical Olympic (TOUS) NASDAQ. $25.97 up 68%.
3 Hovanian (HOV) NYSE, $49.55 up 56%.
4. Elegant Concrete (ELGC) OTC, $3.50 up 54%.
5. AMREP (AXR) NYSE, $11.59 up 49%.
6. Centex (CNT) NYSE. $74.79 up 49%.
7. D.R. Horton (DHI) NYSE. $25.70 up 49%.
8. MDC Homes (MDC) NYSE. $48.22 up 39%.
9. Standard Pacific (SPF) NYSE. $33.85 up 37%.
10. William Lyon Homes (WLS) NYSE. $29.78 up 36%.
A detailed 10 page version of this list with graphs and our “featured home building” stock for the 2nd quarter can be found at:
Top Performing Home Builder Stocks Ending 5/23/2003
1. Ryland Homes (RYL) NYSE. $60 up 81%. The Ryland Group, Inc. is a national homebuilder and mortgage-related financial services firm operating in the United States. The Company's homebuilding segment specializes in the sale and construction of single-family attached and detached housing. It builds homes primarily for first-time buyers, as well as for move-up buyers. As of December 31, 2002, Ryland homes were available in 306 communities in 25 markets across the United States. The Company's financial services segment provides loan origination, title, escrow and insurance brokerage services for its homebuilding customers and maintains a portfolio of mortgage-backed securities and notes receivable.
For the first quarter of 2003 Homebuilding revenues rose $115.3 million to $641.2 million for the first quarter of 2003, compared to the same period in the prior year. Given its results for the first quarter of 2003, the Company anticipates earnings for the fiscal year ending December 31, 2003, will exceed $7.50 per share. Website:
2. Technical Olympic (TOUS) NASDAQ. $25 up 68%. TOUSA is a leading homebuilder in the United States, operating in 14 metropolitan markets located in four major geographic regions: Florida, Texas, the West and the Mid-Atlantic. TOUSA designs, builds and markets high- quality detached single-family residences, town homes and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home ("empty-nesters"). It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. The company is estimating earnings per share in the range of $2.75 to $2.90 (assuming 28.2 million diluted shares).
They expect the planned opening of new communities to generate increased sales and higher backlog during the second half of the year. This provides then with greater visibility into 2004 as the year progresses. Their current earnings per share estimate for 2004 is in the range of $4.00 to $4.60 (assuming 28.5 million diluted shares). The target for 2004 is based on current estimates of future home deliveries, average selling prices and the opening of new communities. The targets are subject to economic fluctuations in the current environment. Website: http://www.tousa.com
3. Hovanian (HOV) NYSE. $49 up 56%. Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovanian, Chairman, is headquartered in Red Bank, New Jersey. The Company is one of the nation's largest homebuilders with operations in California, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian, Washington Homes, Goodman Homes, Matzel & Mumford, Diamond Homes, Westminster Homes, Fortis Homes, Forecast Homes, Parkside Homes, Brighton Homes, Parkwood Builders and Summit Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes.
For the second quarter, net new home orders were up 16.0%, to 3,389 homes, when compared with the second quarter of fiscal 2002. Contract backlog at April 30, 2003 increased 17.8%, to 5,300 homes when compared to 4,501 homes at the end of April 30, 2002. The number of active selling communities company-wide on April 30, 2003 increased 19.0% to 244 communities from 205 communities at the end of April 2002. Website: http://www.khov.com/
4. Elegant Concrete (ELGC) OTC. $3.50 up 54%. Elegant Concrete Inc. provides a niche service to both the commercial and residential decorative concrete market. The Company offers many decorative concrete techniques, such as stamping, stenciling, engraving or application of acid stains. In these applications a permanent pattern is engraved or stamped into new or existing concrete. The classical rich beauty of cobblestone, marble, curved brick or tile can now be achieved with new or existing concrete for a lower cost of brick or other hard surface products. Elegant Concrete Inc. has an aggressive growth plan which includes the opening of additional corporate locations, as well as the franchising of their unique system and planned expansion to the overseas marketplace.
Elegant began operations in the New York City metropolitan region during 2002, and plans to expand regionally throughout the country and abroad. Elegant is headquartered in Rockland County, NY with offices in Nassau County, Long Island, Minneapolis, Minnesota and St. Louis, Missouri. Elegant Concrete Inc. has an aggressive growth plan which includes the opening of additional corporate locations, as well as the franchising of the Company's unique system and planned expansion to the overseas marketplace.
5. AMREP Corp (AXR) NYSE. $11.50 up 49%. AMREP Corporation is engaged primarily in two unrelated businesses, each operated by a group of wholly owned subsidiaries: the Real Estate business operated by AMREP Southwest Inc.; and the Fulfillment Services and Magazine Distribution businesses operated by Kable News Company, Inc. and Kable Distribution Services, Inc., respectively (collectively, Kable). The Company owns approximately 21,600 acres in Rio Rancho, of which approximately 6,300 acres are in contiguous blocks that have been developed or are suitable for development, and approximately 2,200 acres are in areas with a high concentration of ownership suitable for special assessment districts or city redevelopment areas which may allow for future development under the auspices of local governments. Through Kable, the Company performs fulfillment and related services for publishers and other customers and distributes periodicals nationally and in Canada and, to a small degree, in other foreign countries.
For the nine months ended 1/31/03, revenues fell 17% to $53.2 million. Net income totaled $4.7 million, up from $2.0 million. Revenues reflect the absence of two large land sales in Colorado and California. Net income reflects improved operating margins due to a decrease in commissions and selling costs. Website: None.
6. Centex (CTX) NYSE. $74 up 49%. Centex Corporation is a Fortune 300 company traded on the New York Stock Exchange and the London Stock Exchange under the symbol "CTX". Since becoming publicly held in 1969, Centex has never reported a quarterly or annual loss or a major write-off. The company has more than 16,000 employees located in more than 1,500 offices and construction job sites across the nation and in the U.K. Centex consistently ranks among "America's Most Admired Companies" in its industry, according to FORTUNE magazine.
For the nine months ended 12/31/02, revenues rose 13% to $6.23 billion.
Net income rose 36% to $359.2 million. Revenues reflect increased conventional home sale closings and higher average sales prices. Net income also reflects improved margins, lower raw material costs, and process improvements. Centex management said the company is raising earnings guidance for fiscal 2004 to $9.50 to $10.50 per diluted share. These estimates include the impact of Centex beginning to expense stock options, which is expected to be $.15 to $.20 per share in fiscal 2004.
7. DR Horton (DHI) NYSE. $25 up 40%. D. R. Horton Inc. is a national builder that is engaged primarily in the construction and sale of single-family housing in the metropolitan areas of the mid-Atlantic, midwest, southeast, southwest and west regions of the United States. The Company designs, builds and sells single-family houses on lots it developed and on finished lots which it purchases ready for home construction. Periodically, D.R. Horton sells lots it has developed. The Company also provides title agency and mortgage brokerage services to its homebuyers. It does not retain or service the mortgages that it originates, but rather sells the mortgages and related servicing rights to investors.
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale of high quality homes designed principally for the entry-level and first time move-up markets. D.R. Horton currently builds and sells homes under the D.R. Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald, Melody, Milburn, Schuler, SGS Communities, Stafford, Torrey, Trimark, and Western Pacific names in 20 states and 44 markets, with a geographic presence in the Midwest, Mid-Atlantic, Southeast, Southwest and Western regions of the United States. The Company also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries. For the six months ended 3/31/03, revenues rose 32% to $3.65 billion. Net income rose 48% to $239.7 million. Results reflect strong housing demand and higher fair value of interest rate swap agreements. Website: http://www.drhorton.com/
8. MDC Homes (MDC) NYSE. $48 up 39%. MDC is one of the largest homebuilders in the United States. The Company also provides mortgage financing, primarily for MDC's homebuyers, through its wholly owned subsidiary, HomeAmerican Mortgage Corporation. MDC is a major regional homebuilder with a significant presence in some of the country's best housing markets. The Company is the largest homebuilder in Colorado; among the top five homebuilders in Northern Virginia, Phoenix, Tucson and Las Vegas; among the top ten homebuilders in suburban Maryland, Northern California, Southern California and Salt Lake City; and has recently entered the Dallas/Fort Worth, Houston and Philadelphia/Delaware Valley markets.
Operating profits from the Company's homebuilding operations for the first quarter of 2003 increased to $64.5 million, compared with $57.8 million for the same period in 2002. The 2003 increase primarily resulted from a 25% increase in homes closed. These increased home closings, partially offset by a $2,300 decrease in average selling prices, contributed to record first quarter home sales revenues of $554 million, 24% higher than revenues of $445 million in the 2002 first quarter. Website: http://www.richmondamerican.com/
9. Standard Pacific (SPF) NYSE. $34 up 37%. Standard Pacific Corp. is a geographically diversified builder of single-family homes. The Company constructs homes within a wide range of prices and sizes targeting a broad range of homebuyers. Standard Pacific has operations in major metropolitan areas in California, Texas, Arizona, Colorado, Florida and the Carolinas and has built homes for more than 53,000 families during its history. In addition to its core homebuilding operations, the Company provides mortgage financing and title services to its homebuyers through its subsidiaries and joint ventures: Family Lending Services, SPH Mortgage, WRT Financial, Westfield Home Mortgage, Universal Land Title of South Florida and SPH Title, Inc. Earlier this year, Standard Pacific, one of the nation's oldest and largest homebuilders, was included in Forbes' Platinum 400 list of America's Best Big Companies for the third year in a row.
For the three months ended 03/03, revenues increased 40% to $404 million. Net income rose 39% to $24.8 million. Revenues reflect an increase in the Company's homebuilding and financial services subsidiary. Standard Pacific Corp., boosted its full-year share earnings guidance to between $4.65 and $4.75, compared with $3.67 a year earlier. It said it also sees second-quarter net of 90-95 cents a share, based on the delivery of 1,750 new homes and home-building revenues approaching $450 million. Http://www.standardpacifichomes.com/
10. Will Lyon Homes (WLS) NYSE. $29 up 36%. William Lyon Homes is primarily engaged in the design, construction and sale of single-family detached and attached homes in California, Arizona and Nevada. The Company conducts its homebuilding operations through five geographic divisions (Southern California, San Diego, Northern California, Arizona and Nevada), including both wholly owned projects and projects being developed in unconsolidated joint ventures. For the fiscal year ended December 29, 2002 (fiscal 2002), approximately 75% of the Company's home closings were derived from its California operations. In fiscal 2002, the Company and its unconsolidated joint ventures delivered 2,522 homes. The Company designs, constructs and sells a wide range of homes designed to meet the specific needs of each of its markets, although it primarily emphasizes sales to the entry-level and move-up home buyer markets.
For the three months ended 3/31/03, net sales fell 21% to $72.5 million. Net income rose 57% to $4.9 million. Revenues reflect a decrease in the number of wholly-owned units closed. Website: http://www.lyonhomes.com/
About The Home Builder Stock Review:
Top Performing Home Builder Stocks is a service of the Industry Stock Review and the Internet PR Group. Each month the Home Builder Stock Review issues the Top Performing Home Builder stock list, with percentages gained year to date and a brief corporate description.
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