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WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): APRIL 27, 1998
DEL WEBB CORPORATION
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<S> <C> <C>
DELAWARE 86-0077724
(STATE OR OTHER JURISDICTION OF 1-4785 (IRS EMPLOYER
INCORPORATION) (COMMISSION FILE NUMBER) IDENTIFICATION NO.)
6001 NORTH 24TH STREET 85016
PHOENIX, ARIZONA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (602) 808-8000
NONE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
Exhibit 1.1 hereto is certain financial and operating data for Del Webb
Corporation at and for the three and nine month periods ended March 31, 1997 and
1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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<CAPTION>
Exhibits
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<C> <S>
1.1 Certain financial and operating data of Del Webb Corporation
at and for the three and nine months ended March 31, 1997
and 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DEL WEBB CORPORATION
By: /s/ ROBERTSON C. JONES
------------------------------------
Robertson C. Jones
Vice President and General Counsel
Date: April 27, 1998
EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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<C> <S>
1.1 Certain financial and operating data of Del Webb Corporation
at and for the three and nine months ended March 31, 1997
and 1998.
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EXHIBIT 1.1
DEL WEBB CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
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<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues.................................................... $254,714 $280,317 $781,692 $838,294
-------- -------- -------- --------
Costs and expenses:
Home construction, land and other......................... 194,644 213,373 596,625 644,212
Interest.................................................. 9,473 12,398 31,472 35,680
Selling, general and administrative....................... 38,847 39,584 114,672 117,204
-------- -------- -------- --------
242,964 265,355 742,769 797,096
-------- -------- -------- --------
Earnings before income taxes and extraordinary item..... 11,750 14,962 38,923 41,198
Income taxes................................................ 4,230 5,386 14,012 14,831
-------- -------- -------- --------
Earnings before extraordinary item...................... 7,520 9,576 24,911 26,367
Extraordinary item:
Loss from extinguishment of debt (net of tax)............. -- 1,285 -- 1,285
-------- -------- -------- --------
Net earnings............................................ $ 7,520 $ 8,291 $ 24,911 $ 25,082
======== ======== ======== ========
Weighted average shares outstanding......................... 17,890 17,630 17,740 17,584
======== ======== ======== ========
Weighted average shares outstanding -- assuming dilution.... 18,749 17,884 18,350 17,888
======== ======== ======== ========
Net earnings per share:
Earnings before extraordinary item........................ $ 0.42 $ 0.54 $ 1.40 $ 1.50
Extraordinary item........................................ -- 0.07 -- 0.07
-------- -------- -------- --------
$ 0.42 $ 0.47 $ 1.40 $ 1.43
======== ======== ======== ========
Net earnings per share -- assuming dilution:
Earnings before extraordinary item........................ $ 0.40 $ 0.54 $ 1.36 $ 1.47
Extraordinary item........................................ -- 0.07 -- 0.07
-------- -------- -------- --------
$ 0.40 $ 0.46 $ 1.36 $ 1.40
======== ======== ======== ========
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DEL WEBB CORPORATION AND SUBSIDIARIES
REVENUES AND COSTS AND EXPENSES DETAIL
(DOLLARS IN THOUSANDS)
(UNAUDITED)
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<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Homebuilding:
Communities............................................. $186,828 $220,728 $582,512 $633,713
Conventional............................................ 48,265 53,289 150,491 166,013
-------- -------- -------- --------
Total homebuilding.................................. 235,093 274,017 733,003 799,726
Land and facility sales................................... 17,213 3,827 41,344 30,061
Other..................................................... 2,408 2,473 7,345 8,507
-------- -------- -------- --------
$254,714 $280,317 $781,692 $838,294
======== ======== ======== ========
Costs and expenses:
Home construction and land:
Communities............................................. $137,585 $164,449 $436,638 $476,625
Conventional............................................ 39,901 45,694 125,802 140,441
-------- -------- -------- --------
Total homebuilding.................................. 177,486 210,413 562,440 617,066
Cost of land and facility sales........................... 16,252 2,690 32,040 24,751
Other cost of sales....................................... 906 540 2,145 2,395
-------- -------- -------- --------
Total home construction, land and other............. 194,644 213,373 596,625 644,212
Interest.................................................. 9,473 12,398 31,472 35,680
Selling, general and administrative....................... 38,847 39,584 114,672 117,204
======== ======== ======== ========
$242,964 $265,355 $742,769 $797,096
======== ======== ======== ========
Homebuilding gross margin percentage:
Communities............................................... 26.4% 25.5% 25.0% 24.8%
Conventional.............................................. 17.3% 14.3% 16.4% 15.4%
-------- -------- -------- --------
Total homebuilding.................................. 24.5% 23.3% 23.3% 22.8%
======== ======== ======== ========
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DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA
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<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
MARCH 31, CHANGE MARCH 31, CHANGE
-------------- ----------------- -------------- -----------------
1998 1997 AMOUNT PERCENT 1998 1997 AMOUNT PERCENT
----- ----- ------ ------- ----- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING DATA:
Number of net new orders:
Sun Cities Phoenix(1)................ 393 372 21 5.6% 927 994 (67) (6.7)%
Sun Cities Las Vegas(2).............. 308 272 36 13.2% 826 751 75 10.0%
Sun City Palm Desert................. 162 118 44 37.3% 315 183 132 72.1%
Sun City Roseville................... 196 153 43 28.1% 509 347 162 46.7%
Sun City Hilton Head................. 103 92 11 12.0% 273 228 45 19.7%
Sun City Georgetown.................. 118 132 (14) (10.6)% 311 325 (14) (4.3)%
Florida communities(3)............... 122 N/A 122 N/A 122 N/A 122 N/A
Other communities*................... 99 N/A 99 N/A 172 N/A 172 N/A
Coventry Homes....................... 432 335 97 29.0% 983 849 134 15.8%
----- ----- ----- ------- ----- ----- ----- -------
Total current communities.......... 1,933 1,474 459 31.1% 4,438 3,677 761 20.7%
Completed operations:
Sun City Tucson...................... N/A 20 (20) (100.0)% N/A 58 (58) 100.0)%
Terravita............................ 1 89 (88) (98.9)% N/A 192 (192) 100.0)%
Coventry Homes -- So. California..... N/A 55 (55) (100.0)% N/A 152 (152) 100.0)%
----- ----- ----- ------- ----- ----- ----- -------
Total.............................. 1,934 1,638 296 18.1% 4,438 4,079 359 8.8%
===== ===== ===== ======= ===== ===== ===== =======
Number of home closings:
Sun Cities Phoenix(1)................ 292 271 21 7.7% 913 769 144 18.7%
Sun Cities Las Vegas(2).............. 241 277 (36) (13.0)% 772 808 (36) (4.5)%
Sun City Palm Desert................. 84 69 15 21.7% 202 162 40 24.7%
Sun City Roseville................... 147 118 29 24.6% 420 446 (26) (5.8)%
Sun City Hilton Head................. 90 105 (15) (14.3)% 270 290 (20) (6.9)%
Sun City Georgetown.................. 75 151 (76) (50.3)% 298 438 (140) (32.0)%
Florida communities(3)............... 71 N/A 71 N/A 71 N/A 71 N/A
Other communities*................... 5 N/A 5 N/A 5 N/A 5 N/A
Coventry Homes....................... 259 277 (18) (6.5)% 825 914 (89) (9.7)%
----- ----- ----- ------- ----- ----- ----- -------
Total current communities.......... 1,264 1,268 (4) (0.3)% 3,776 3,827 (51) (1.3)%
Completed operations:
Sun City Tucson...................... N/A 23 (23) (100.0)% N/A 102 (102) 100.0)%
Terravita............................ 6 120 (114) (95.0)% 118 307 (189) (61.6)%
Coventry Homes -- So. California..... N/A 56 (56) (100.0)% 20 126 (106) (84.1)%
----- ----- ----- ------- ----- ----- ----- -------
Total.............................. 1,270 1,467 (197) (13.4)% 3,914 4,362 (448) (10.3)%
===== ===== ===== ======= ===== ===== ===== =======
BACKLOG DATA:
Homes under contract at March 31:
Sun Cities Phoenix(1)................ 706 778 (72) (9.3)%
Sun Cities Las Vegas(2).............. 587 585 2 0.3%
Sun City Palm Desert................. 239 133 106 79.7%
Sun City Roseville................... 369 278 91 32.7%
Sun City Hilton Head................. 162 131 31 23.7%
Sun City Georgetown.................. 215 265 (50) (18.9)%
Florida communities(3)............... 256 N/A 256 N/A
Other communities*................... 167 N/A 167 N/A
Coventry Homes....................... 616 507 109 21.5%
----- ----- ----- ------
Total current communities.......... 3,317 2,677 640 23.9%
Completed operations:
Sun City Tucson...................... N/A 1 (1) (100.0)%
Terravita............................ 2 189 (187) (98.9)%
Coventry Homes -- So. California..... N/A 49 (49) (100.0)%
----- ----- ----- ------
Total.............................. 3,319 2,916 403 13.8%
===== ===== ===== ======
Aggregate contract sales amount
(dollars in millions)................ $ 663 $ 566 $ 97 17.1%
===== ===== ===== ======
Average contract sales amount per home
(dollars in thousands)............... $ 200 $ 194 $ 6 3.1%
===== ===== ===== ======
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DEL WEBB CORPORATION AND SUBSIDIARIES
CERTAIN CONSOLIDATED FINANCIAL AND OPERATING DATA (CONTINUED)
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<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
MARCH 31, CHANGE MARCH 31, CHANGE
------------------- ----------------- ------------------- ------------------
1998 1997 AMOUNT PERCENT 1998 1997 AMOUNT PERCENT
-------- -------- ------- ------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AVERAGE REVENUE PER HOME CLOSING:
Sun Cities Phoenix(1).................. $158,500 $163,700 $(5,200) (3.2%) $157,800 $161,900 $ (4,100) (2.5%)
Sun Cities Las Vegas(2)................ 200,300 184,100 16,200 8.8% 198,600 179,500 19,100 10.6%
Sun City Palm Desert................... 228,000 232,600 (4,600) (2.0%) 228,500 225,600 2,900 1.3%
Sun City Roseville..................... 224,500 221,700 2,800 1.3% 214,700 210,600 4,100 1.9%
Sun City Hilton Head................... 173,100 174,500 (1,400) (0.8%) 169,300 165,900 3,400 2.0%
Sun City Georgetown.................... 195,800 176,500 19,300 10.9% 198,700 180,300 18,400 10.2%
Florida communities(3)................. 97,900 N/A N/A N/A 97,900 N/A N/A N/A
Other communities*..................... 130,000 N/A N/A N/A 130,000 N/A N/A N/A
Coventry Homes......................... 186,400 149,200 37,200 24.9% 177,900 151,000 26,900 17.8%
Weighted average current communities... 184,200 176,600 7,600 4.3% 183,500 173,800 9,700 5.6%
Completed operations:
Sun City Tucson........................ N/A 164,200 N/A N/A N/A 167,100 N/A N/A
Terravita.............................. 379,300 286,800 92,500 32.3% 307,000 291,800 15,200 5.2%
Coventry Homes -- So. California....... N/A 213,400 N/A N/A 186,600 222,000 (35,400) (15.9%)
Total weighted average............... 185,100 186,800 (1,700) (0.9%) 187,300 183,300 4,000 2.2%
======== ======== ======= ====== ======== ======== ======== ======
OPERATING STATISTICS:
Costs and expenses as a percentage of
revenues:
Home construction, land and other...... 76.4% 76.1% 0.3% 0.4% 76.3% 76.8% (0.5%) (0.7%)
Interest............................... 3.7% 4.4% (0.7%) (15.9%) 4.0% 4.3% (0.3%) (7.0%)
Selling, general and administrative.... 15.3% 14.1% 1.2% 8.5% 14.7% 14.0% 0.7% 5.0%
Ratio of home closings to homes under
contract in backlog at beginning of
period................................. 51.8% 53.4% (1.6%) (3.0%) 151.1% 136.4% 14.7% 10.8%
======== ======== ======= ====== ======== ======== ======== ======
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(1) Includes Sun City West and Sun City Grand.
(2) Includes Sun City Summerlin and Sun City MacDonald Ranch.
(3) Represents two operating age-restricted communities acquired in January
1998. Included in this acquisition was a beginning backlog of 205 homes.
* Represents three smaller-scale communities in Arizona and California.
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DEL WEBB CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY EARNINGS RELEASE INFORMATION
AS OF AND FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 1998
(UNAUDITED)
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SHAREHOLDERS EQUITY AT MARCH 31, 1998 (DOLLARS IN THOUSANDS)
Common stock, $.001 par value. Authorized 30,000,000 shares;
issued 18,035,966 shares at March 31, 1998................ $ 18
Additional paid-in capital................................ 165,156
Retained earnings......................................... 168,173
----------
333,347
Less cost of common stock in treasury, no shares at March
31, 1998................................................ --
Less deferred compensation................................ (5,713)
----------
Total shareholders' equity.............................. $ 327,634
==========
REAL ESTATE INVENTORIES AT MARCH 31, 1998 (DOLLARS IN
THOUSANDS)
Home construction costs..................................... $ 199,515
Unamortized improvement and amenity costs................... 574,560
Unamortized capitalized interest............................ 57,785
Land held for housing....................................... 245,556
Land and facilities held for future development or sale..... 29,861
----------
Total real estate inventories........................... $1,107,277
==========
NOTES PAYABLE, SENIOR AND SUBORDINATED DEBT AT MARCH 31,
1998 (DOLLARS IN THOUSANDS)
9 3/4% Senior Subordinated Debentures due 2003, net......... $ 97,978
9% Senior Subordinated Debentures due 2006, net............. 97,834
9 3/4% Senior Subordinated Debentures due 2008, net......... 145,249
Notes payable to banks under a revolving credit facility and
short-term lines of credit................................ 311,000
Real estate and other notes................................. 84,656
----------
Total notes payable, senior and subordinated debt......... $ 736,717
==========
</TABLE>
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<CAPTION>
THREE NINE
MONTHS MONTHS
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<S> <C> <C>
INTEREST FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 1998
(DOLLARS IN THOUSANDS)
Unamortized capitalized interest included in real estate
inventories at beginning of period........................ $50,125 $46,121
Interest incurred and capitalized........................... 17,133 43,136
Amortization of capitalized interest in costs and
expenses.................................................. (9,473) (31,472)
------- -------
Unamortized capitalized interest included in real estate
inventories at end of period.............................. $57,785 $57,785
======= =======
</TABLE>
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