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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (50792)	5/8/2006 7:48:05 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 116555

Dominion Homes Reports Financial Results for the First Quarter of 2006 Monday May 8, 6:58 pm ET DUBLIN, Ohio--(BUSINESS WIRE)--May 8, 2006--Dominion Homes, Inc. (NASDAQ:DHOM - News) today announced financial results for the three months ended March 31, 2006. Highlights for the first quarter of 2006 compared to the first quarter of 2005 included: * A net loss of $3.9 million, or $0.49 per diluted share, versus net income of $642,000, or $0.08 per diluted share; * Revenues of $61.8 million, from the delivery of 315 homes, versus revenues of $92.6 million, from the delivery of 478 homes; * Sales of 475 homes, with a sales value of $89.3 million, versus sales of 626 homes, with a sales value of $120.8 million; * A backlog of 590 sales contracts, with an aggregate sales value of $118.2 million, versus a backlog of 780 sales contracts, with an aggregate sales value of $157.8 million; * The sale of a majority interest in Centennial Home Mortgage, LLC, to Wells Fargo Bank N.A., that resulted in a $1.8 million pretax gain ($1.1 million aftertax gain) to the Company during the first quarter of 2006. The net loss for the first quarter of 2006 is principally due to the delivery of fewer homes than was expected and a decline in the gross profit margin due to competitive pricing pressure. Home sales generally remained slow in the Company's markets. Douglas G. Borror, Chief Executive Officer, commented, "Based on the level of sales we are currently experiencing, we do not expect that 2006 will be a profitable year. However, we are undertaking several initiatives to reduce the expected loss and position the Company for future success. We've made significant progress on our product initiatives including active adult, multi-family, and first time/move up buyer series. We remain focused on reducing overhead expenses, managing land development and acquisition costs, improving sales, and operating our business and inventories at a level consistent with reduced sales levels." My comment: If they didn't see this slowdown coming then they gotta be hittin the crack pipe after hours at DHOM.