<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________
Commission file number: 0-08305
THE WRITER CORPORATION
----------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0510478
-------- -----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.
6061 S. Willow Drive, #232, Englewood, Colorado 80111
- ----------------------------------------------- --------
(Address of principal executive offices) Zip Code
(303) 779-4100
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act during the
preceding 12 months (or for such shorter period that the registrant is required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]
The number of shares outstanding of the registrant's common stock as of May 5,
2000 was 7,462,480.
<PAGE> 2
THE WRITER CORPORATION
AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page
PART I. FINANCIAL INFORMATION Number
------
<S> <C> <C>
Item 1. Financial Statements
Consolidated Balance Sheets
March 31, 2000 and
December 31, 1999 (Unaudited) 3
Condensed Consolidated Statements
of Operations for the three months
ended March 31, 2000 and 1999 (Unaudited) 5
Condensed Consolidated Statements of Cash Flows
for the three months ended March 31, 2000 and
1999 (Unaudited) 6
Notes to Consolidated Financial Statements (Unaudited) 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures about Market Risk 14
PART II. OTHER INFORMATION 15
</TABLE>
2
<PAGE> 3
THE WRITER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
----------- -----------
<S> <C> <C>
ASSETS
Residential real estate held for sale, net:
Homes under construction $22,519,000 $23,349,000
Model homes and furnishings 5,704,000 4,760,000
Land and land development 16,808,000 17,859,000
Raw land 3,957,000 3,897,000
----------- -----------
Subtotal 48,988,000 49,865,000
Office property and equipment, less accumulated
depreciation of $856,000 and $653,000: 549,000 504,000
Other assets:
Cash and cash equivalents 3,186,000 4,996,000
Restricted cash 1,227,000 589,000
Accounts receivable 228,000 296,000
Deferred tax asset 1,324,000 1,410,000
Other 1,568,000 1,550,000
----------- -----------
Total $57,070,000 $59,210,000
=========== ===========
</TABLE>
(Continued)
See notes to consolidated financial statements
3
<PAGE> 4
THE WRITER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
----------- -----------
<S> <C> <C>
LIABILITIES
Notes payable $25,821,000 $27,495,000
Accounts payable and accrued expenses 7,030,000 8,179,000
Accrued interest 181,000 208,000
----------- -----------
Total 33,032,000 35,882,000
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; authorized,
10,000,000 shares; 7,462,480 and 7,432,600
shares issued and outstanding 746,000 746,000
Additional paid-in capital 12,454,000 12,454,000
Retained earnings 10,838,000 10,128,000
----------- -----------
Total Stockholders' Equity, net 24,038,000 23,328,000
----------- -----------
Total $57,070,000 $59,210,000
=========== ===========
</TABLE>
(Concluded)
See notes to consolidated financial statements.
4
<PAGE> 5
THE WRITER CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
2000 1999
------------ ------------
<S> <C> <C>
Residential operations:
Revenue $ 19,891,000 $ 12,213,000
Cost of sales (15,800,000) (9,952,000)
Expenses (3,041,000) (2,276,000)
------------ ------------
Income from residential operations 1,050,000 (15,000)
Interest and other income, net 95,000 30,000
------------ ------------
Net income before income taxes 1,145,000 15,000
Income tax expense (435,000) --
------------ ------------
Net income $ 710,000 $ 15,000
============ ============
Earnings per share:
Basic $ 0.10 $ 0.00
============ ============
Diluted $ 0.09 $ 0.00
============ ============
Weighted average number of shares outstanding:
Basic 7,462,000 7,433,000
============ ============
Diluted 7,747,000 7,825,000
============ ============
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
THE WRITER CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
2000 1999
------------ ------------
<S> <C> <C>
NET CASH USED IN OPERATING ACTIVITIES: $ (80,000) $ (3,124,000)
------------ ------------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchases of office property and equipment (56,000) (54,000)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable 11,018,000 9,655,000
Principal payments on notes payable (12,692,000) (6,853,000)
------------ ------------
Net cash provided in financing activities (1,674,000) 2,802,000
------------ ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,810,000) (376,000)
CASH AND CASH EQUIVALENTS, beginning of period 4,996,000 3,363,000
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 3,186,000 $ 2,987,000
============ ============
</TABLE>
See notes to consolidated financial statements.
6
<PAGE> 7
THE WRITER CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. Accounting Policies:
The consolidated balance sheet as of March 31, 2000 and the related condensed
consolidated statements of operations and cash flows for the three month period
ended March 31, 2000 and 1999 are unaudited, but in management's opinion,
include all adjustments necessary for a fair presentation of such financial
statements. Such adjustments consisted only of normal recurring items. Interim
results are not necessarily indicative of results for a full year.
The consolidated financial statements include the accounts of The Writer
Corporation and its wholly owned subsidiaries (the Company). All significant
inter-company transactions and balances have been eliminated in consolidation.
The financial statements should be read in conjunction with the audited
Consolidated Financial Statements included in the annual report on Form 10-K for
the year ended December 31, 1999. Except as described herein, the accounting
policies utilized in the preparation of these financial statements are the same
as those set forth in the Company's annual financial statements except as
modified for interim accounting treatment.
Adoption of SFAS 130 and SFAS 131 had no effect on the Company's financial
statements. The Company has no derivative instruments and does not engage in
hedging activities, therefore, the adoption of SFAS 133 will not impact its
financial statements.
Certain items in 1999 have been reclassified to conform with the 2000
presentation.
7
<PAGE> 8
Earnings per share
The following table reconciles income and the number of shares outstanding used
in the calculation of basic and diluted earnings per share.
<TABLE>
<CAPTION>
Income Shares Per Share
--------- --------- ---------
<S> <C> <C> <C>
For the Three Months Ended March 31, 2000:
Net Income $ 710,000 7,462,000 $0.10
Effect of options 0 149,000
Effect of convertible debt 8,000 136,000
--------- ---------
Net income per share - assuming dilution $ 718,000 7,747,000 $0.09
========= ========= =====
For the Three Months Ended March 31, 1999:
Net Income $ 15,000 7,433,000 $0.00
Effect of options 0 92,000
Effect of convertible debt 16,000 300,000
--------- ---------
Net income per share - assuming dilution $ 31,000 7,825,000 $0.00
========= ========= =====
</TABLE>
8
<PAGE> 9
THE WRITER CORPORATION
AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS FORWARD-LOOKING STATEMENTS (DENOTED
WITH AN ASTERISK (*) AT THE END OF SUCH STATEMENT) THAT INVOLVE RISKS AND
UNCERTAINTIES. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED
IN THESE FORWARD-LOOKING STATEMENTS AS A RESULT OF CERTAIN FACTORS, INCLUDING
THOSE SET FORTH IN "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS" BELOW.
Forward Looking Statement
In connection with, and because we desire to take advantage of, the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, we
caution readers regarding certain forward looking statements contained in the
following discussion and elsewhere in this report and in any other statements
made by or on our behalf whether or not in future filings with the Securities
and Exchange Commission. Forward looking statements are statements not based on
historical information and which relate to the future operations, strategies,
financial results, or other developments. In particular, statements using verbs
such as, "expected", "anticipate", "believe", or words of similar import
generally involve forward looking statements. Without limiting the foregoing,
forward looking statements include statements which represent our beliefs
concerning future, or projected levels of sales of our homes, investments in
land or other assets, projected absorption rates, or our ability to attract
needed financing, or the continued earnings or profitability of our activities.
Forward looking statements are necessarily based upon estimates and assumptions
that are inherently subject to significant business, economic, and competitive
uncertainties and contingencies, many of which are beyond our control and many
of which, with respect to future business decisions, are subject to change.
These uncertainties and contingencies can affect actual results and could cause
actual results to differ materially from those expressed in any forward looking
statements made by or on behalf of us. Whether or not actual results differ
materially from forward looking statements may depend on numerous foreseeable
and unforeseeable events or developments, some of which may be national in
scope, such as general economic conditions and interest rates; some of which may
be related to the homebuilding industry generally, such as price, competition,
regulatory developments and industry consolidation; and others of which may
relate to the us specifically, such as credit availability and the liquidity
necessary to provide equity into land acquisition and development transactions
and other factors.
Financial Condition
At March 31, 2000 we had a backlog of 108 homes under contract. This backlog
represents $27,861,000 of potential revenue. At December 31, 1999 we had a
backlog of 107 homes representing $24,326,000 in potential revenue. This
increase in potential revenue of 15% or $3,535,000 above the December 1999
level, reflects sales of a new product line that has an average sales price of
approximately $375,000.
9
<PAGE> 10
Our inventory of homes under construction decreased $830,000 or 4% during the
three months ending March 2000. This decrease is due in part to the above,
mentioned start up of our new product line.
Model homes and furnishings increased by $944,000 or 20% during the three months
ending March 2000. During the quarter we opened three new townhome models at
Saddlebrook in Stetson Creek and one detached single family model in Fossil Lake
Ranch opened April 15, 2000. In our Denver Division, two detached single family
models opened at Talavera in Sunrise Ridge, a project in Arvada, Colorado. At
Tallyn's Reach in Aurora, Colorado, three detached single family models are
under construction which are expected to open in July 2000.*
Our investment in land and land development decreased $1,051,000 or 6% during
the three months ending March 2000. Development continues at Settler's Village,
Northpark, Sunrise Ridge and Canterbury Park at Castle Pines North in the Denver
Division. In the Northern Division, development continues at Saddlebrook
townhomes and on 35 single family detached lots both at Stetson Creek in Ft.
Collins, Colorado. We have begun development on 147 single family attached lots
at the Highlands Ranch Golf Course. These expenditures less the cost of lots
transferred to production account for the net decrease.
Our raw land account holds one parcel of approximately 106 acres of ground in
Ft. Collins, Colorado. We have platted the site into 470 single family lots and
are finalizing development agreements. We are also finalizing the planning and
engineering process for the product lines to be marketed at this traditional
neighborhood development.
Our office property and equipment account increased $45,000 or 9% during the
three months ending March 2000. The increase is primarily due to the set up of
new sales offices at Talavera, Saddlebrook and Fossil Lake Ranch.
Cash balances have decreased by $1,810,000 or 36% during the three months ending
March 2000. The decrease reflects the pay down of debt in the amount of
$1,674,000, our efforts to accelerate payments to subcontractors and vendors,
and the need to provide equity contribution in recent acquisitions of land. Our
restricted cash account has increased $638,000 or 108% during the three months
ending March 2000. The increase is attributable to the timing of release
payments associated with higher levels of closings versus advances on these same
acquisition and development loans.
Accounts receivable balances have decreased by $68,000 or 23% during the three
months ending March 2000. The decrease is due to a reduction in deposits that
secure the performance of development work.
Our notes payable balance decreased by $1,674,000 or 6% during the three months
ending March 2000, which reflects the wind down of Settler's Village, Lowry,
Northpark and the payoff of convertible debt to related parties.
Accounts payable, accrued expenses and accrued interest have decreased by
$1,176,000 or 14% during the three months ending March 2000, again reflecting
the wind down of older projects.
10
<PAGE> 11
Liquidity and Capital Resources
During the first three months of 2000 we used $80,000 of cash in operating
activities. We also used cash to decrease our debt by $1,674,000.
With the sustained and improved operating performance that we have shown, our
relationships with our lenders have continued to solidify. This has provided us
with more financing opportunities to leverage our cash and has provided greater
opportunities to negotiate more favorable rates and terms. We have also
attracted lenders who will provide working capital facilities to supplement our
liquidity and capital resources generated by operations.
The credit facilities have available commitment of $5,924,000 at March 31, 2000,
with $2,447,000 outstanding at that time. In April we used another $2,500,000 to
purchase a parcel of land (see further discussion below at Recent Acquisitions)
bringing the total outstanding to $4,947,000. These funds may not provide all of
the necessary equity, which traditional lending relationships will require for
leveraged financing of acquisition and development costs of projects. Therefore,
we expect to continue to re-employ our working capital generated from operations
to support growth and or debt retirement.*
We have offered profit or revenue participation to land sellers as part of the
acquisition price negotiation. Because of strong buyer demand for improved and
undeveloped land, many sellers in our market area are demanding profit
participation and requesting more stringent purchase terms, which include cash
at closing, closings prior to full entitlement, specific performance contracts
and shorter due diligence periods. We weigh all of these risk factors against
perceived opportunity as new projects are analyzed. Notwithstanding these
factors, land acquisition costs and risk continue to increase because of demand
generated by competing builders.
Recent Acquisitions
We have executed sales contracts for all of our homes in our Northpark,
Settler'sVillage, Summerhill, Greenbrook and Park Square communities. The
remaining contracts will close in the second quarter of 2000. We have been
actively seeking replacement opportunities and to that end have recently
completed ten land acquisitions.
In December 1998, the Company purchased a 140 unit single family parcel in
Arvada, Colorado. The sites were zoned and platted. We recently completed a
re-platting of a portion for our townhome product. Financing was provided by a
$1,500,000 unsecured line of credit. In April 1999, $500,000 of the line was
repaid and the same lender provided a $3,650,000 development facility. In
October 1999, the balance of the unsecured line of credit was repaid.
Construction financing for the single family detached models and the first phase
of construction has been provided by the same lender and construction has
commenced. Construction financing for the townhouse models and the first phase
of construction was provided by the same lender in February 2000.
In January 1999, we purchased a 102 unit single family attached parcel in Ft.
Collins, Colorado. This is a continuation of our Stetson Creek project.
Financing was provided through an existing $15,000,000 acquisition, development
and construction facility. Platting was completed in May 1999 and development,
sales and construction are in progress.
11
<PAGE> 12
In July 1999, we closed on our purchase of 106 acres in Ft. Collins, which is in
the final stage of being entitled under the Ft. Collins City Plan. The site is
planned for approximately 470 single family units with three single family
detached products and two attached products. Financing was provided from working
capital and the use of an unsecured working capital line. We are in the process
of finalizing the acquisition, development and construction financing to repay
the working capital line.
In December 1999, we closed on our purchase of two luxury attached lifestyle
communities in Highlands Ranch, Colorado planed for 81 and 66 units. We have
secured acquisition, development and construction financing through one of our
existing lending relationships.
We have executed a contract for a 39 acre parcel in Castle Rock, Colorado. The
parcel is zoned for approximately 180 units, but must be platted through the
city of Castle Rock. We are planning the area for both single family attached
and detached. The contract calls for a three phase take down beginning at final
plat, and annually thereafter.
In July 1999, we executed a purchase agreement to acquire 86 finished single
family sites in south Aurora, Colorado. The sites are part of a 2,400 lot master
planned community currently under development. The lots will be acquired over a
two year period, on a quarterly basis, beginning in December 1999.*
In June 1999, we contracted to purchase approximately 63 acres consisting of
three parcels of partially developed land located in the City of Westminster,
Colorado. During April 2000 we closed the purchase of phase one using our lines
of credit. An acquisition and development loan is in process for this 45 lot
site. At the same time we contracted for a fourth parcel containing
approximately ten acres which is zoned for attached single family.
In August 1999, we acquired 35 platted single family lots in Ft. Collins,
Colorado. This is a continuation of our Stetson Creek project. Acquisition
financing was provided by the seller. Development and construction financing
will be through an existing $25,000,000 loan facility.
In August 1999, we executed a purchase agreement to acquire 22 developed single
family lots in Ft. Collins, Colorado. The lots will be acquired over the next
year,* and are currently being developed by the seller.
In October 1999, we executed an agreement which secures the right to acquire 14
acres in Loveland, Colorado. Under the agreement, we will be responsible to plat
the site so that no less than 126 townhomes can be built. No closing is
anticipated until the final plat is approved. We are currently in a due
diligence period, and have begun the entitlement process, but no assurance can
be provided that this transaction will close.
Both executed and potential acquisitions will require equity investments, which
our management expects to obtain from working capital generation and through
additional borrowing from our working capital facilities. The balance will be
financed through traditional lending relationships.*
Results of Operations
During the three months ending March 2000, we closed 83 units versus 59 for same
period in 1999.
12
<PAGE> 13
The average sales price was $238,494 for the first three months of 2000 compared
to $191,934 for the same period in 1999. The mix of products sold during the two
time periods is illustrated below.
<TABLE>
<CAPTION>
Closings Townhomes Single Family Total
- -------- --------- ------------- -----
<S> <C> <C> <C>
3 month period ended Mar. 31, 2000 59 24 83
3 month period ended Mar. 31, 1999 41 18 59
</TABLE>
Revenue for the three month period ended March 31, 2000 was $19,891,000, as
compared to $12,213,000 for the same period in 1999. The increase of $7,678,000
or 63% is the result of additional unit closings and higher average unit prices.
Gross profit related to home sales increased by $1,913,000 or 90% from
$2,151,000 to $4,082,000 for the first three months of 1999 and 2000. During the
three months ended March 31, 2000 and 1999 revenue from lots and tap sales was
$96,000 and $889,000 contributing $9,000 and $110,000 of gross profit
respectively. As a percentage of sales, our gross profit was 20.6% in the first
three months of 2000 as compared to 18.5% for the same period in 1999.
Operating expenses increased $765,000 or 34% for the three month period ended
March 31, 2000 as compared to the same period a year ago. The increases is due
to an increase in interest expense, net of capitalization, of $186,000 from
$6,000 to $192,000, an increase in sales marketing expense of $191,000 from
$1,313,000 to $1,504,000 and an increase in general and administrative expense
of $388,000 from $957,000 to $1,345,000. As a percentage of sales, interest
expense net of capitalization remains at less than 1%, sales and marketing has
decreased 3.2% from 10.8% to 7.6% and general and administrative expense has
decreased 1.0% from 7.8% to 6.7%.
Interest and other income, net increased $65,000 or 217% for the three month
period ended March 31, 2000 over the same period a year ago. The increase is
primarily made up of three items; interest income of $34,000, $27,000 in gains
on sales of model home furnishings and $18,000 of income from our mortgage
subsidiary WRT Financial, Limited Partnership.
We have recorded $710,000 in net income for the first quarter of 2000 an
increase of $695,000 over the first quarter of 1999.
Plan of Merger with Standard Pacific Corp.
We have been working over the last several months to finalize our merger into
TWC Corp., a wholly owned subsidiary of Standard Pacific Corp. We executed a
definitive merger agreement on Friday, April 14, 2000. The transaction will not
be finalized until additional requirements are met. We expect the merger to be
completed during the second or third quarter of this year.*
Under the terms of the proposed acquisition, our stockholders will
receive, at their election, a combination of cash and/or Standard Pacific common
stock valued at $3.35 per share of our common stock. Not more that 60% and not
less that 50% of the aggregate consideration will be paid in shares of Standard
Pacific common stock. Standard Pacific's shares will be valued based on their
average trading price for a 20 day period prior to consummation of the merger,
provided that in no event will the shares be valued at less than $11.00 per
share or more than $13.50 per share. In the event the option to elect cash is
oversubscribed, our directors, officers and 10% shareholders have
13
<PAGE> 14
agreed to accept shares of Standard Pacific common stock. See the Agreement and
Plan of Merger in our Form 8-K dated April 14, 2000, which is hereby
incorporated by reference.
Consummation of the transaction is subject to customary conditions,
including registration with the Securities and Exchange Commission and approval
of Writer's stockholders.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The primary market risk facing the Company is interest rate risk on debt
obligations.* We enter into debt obligations primarily to finance the
development and acquisition of land, and to support our homebuilding and general
corporate operations. All of our debt has variable interest rates, which exposes
us to interest rate risk. Our business strategy has been to accept the interest
rate risk associated with variable rate debt which allows us to participate in
the increased earnings and cash flows associated with decreases in interest
rates.
Under our current policies, we do not use interest rate derivative instruments
to manage our exposure to interest rate changes.
At March 31, 2000, we had variable rate debt outstanding of approximately
$26,000,000. The annual increase (decrease) in cash requirements for interest at
this level of borrowing, should the market rates increase or (decrease) by 10%
compared to the interest rates in effect at March 31, 2000, would be
approximately $260,000 or ($260,000) respectively.
14
<PAGE> 15
THE WRITER CORPORATION
AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(b) There were no reports on Form 8-K filed for the three months ended
March 31, 2000.
15
<PAGE> 16
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 thereunto duly authorized.
THE WRITER CORPORATION
(Registrant)
Date: May 11, 2000 /s/ Daniel J. Nickless
----------------------------------
By: Daniel J. Nickless
President, Chief Operating
and Chief Financial Officer
16
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,413,000<F1>
<SECURITIES> 0
<RECEIVABLES> 228,000
<ALLOWANCES> 0
<INVENTORY> 48,988,000<F2>
<CURRENT-ASSETS> 0
<PP&E> 1,405,000
<DEPRECIATION> 856,000
<TOTAL-ASSETS> 57,070,000<F3>
<CURRENT-LIABILITIES> 7,211,000
<BONDS> 25,821,000
0
0
<COMMON> 746,000
<OTHER-SE> 23,292,000
<TOTAL-LIABILITY-AND-EQUITY> 57,070,000
<SALES> 19,891,000
<TOTAL-REVENUES> 19,891,000
<CGS> 15,800,000
<TOTAL-COSTS> 15,800,000
<OTHER-EXPENSES> 2,946,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,145,000
<INCOME-TAX> 435,000
<INCOME-CONTINUING> 710,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 710,000
<EPS-BASIC> .10
<EPS-DILUTED> .09
<FN>
<F1>CASH INCLUDES $1,227,000 RESTRICTED CASH
<F2>INVENTORY INCLUDES HOMES UNDER CONSTRUCTION $22,519,000, MODEL HOMES AND
FURNISHINGS $15,404,000 LAND DEVELOPMENT $16,808,000, UNPLATTED LAND
$3,957,000
<F3>TOTAL ASSETS INCLUDES OTHER ASSETS OF $2,892,000
</FN>
</TABLE>
