================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] 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 0-13800
INTERNATIONAL AMERICAN HOMES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 22-2472608
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4640 FORBES BOULEVARD, LANHAM, MARYLAND 20706
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 306-5306
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)
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 of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes X No
----- -----
As of October 31, 1996, the number of shares outstanding of the registrant's
common stock, par value $.01, was 2,734,395.
================================================================================
Total number of pages: 16
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
----------------
INDEX
PAGE
----
Part I. Financial Information:
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets (Unaudited) as of September
30, 1996 and March 31, 1996......................................3
Consolidated Statements of Income and Retained Earnings
(Unaudited) for the three months ended September 30, 1996
and September 30, 1995...........................................5
Consolidated Statements of Income and Retained Earnings
(Unaudited) for the six months ended September 30, 1996
and September 30, 1995...........................................6
Consolidated Statements of Cash Flows (Unaudited) for the
six months ended September 30, 1996 and 1995.....................7
Notes to Consolidated Financial Statements (Unaudited)...........8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................11
Part II. Other Information:
Item 4. Submission of Matters to a Vote of Security holders.............15
Item 6. Exhibits and Reports on Form 8-K................................15
Signatures...................................................................16
Page 2
<PAGE>
Part I.Financial Information
ITEM 1
CONSOLIDATED FINANCIAL STATEMENTS
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, 1996 March 31, 1996
------------------ ---------------
<S> <C> <C>
CASH AND SHORT-TERM INVESTMENTS 1,393 $ 1,764
($567 and $550 restricted)
RECEIVABLES 1,351 1,223
REAL ESTATE INVENTORY 23,886 21,860
COLLATERAL FOR BONDS PAYABLE 5,450 5,871
PROPERTY AND EQUIPMENT - less accumulated 134 172
depreciation of $269 and $223
OTHER ASSETS 745 637
------------------ ---------------
TOTAL ASSETS $ 32,959 $ 31,527
================== ===============
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
Page 3
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, 1996 March 31, 1996
------------------ --------------
<S> <C> <C>
MORTGAGE NOTES AND LOANS PAYABLE
Construction and mortgage notes secured by real estate $ 13,707 $ 13,785
inventory
Other notes payable - 29
------------------ --------------
13,707 13,814
BONDS PAYABLE 5,268 5,660
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 6,737 5,362
CUSTOMER DEPOSITS 318 237
------------------ --------------
Total Liabilities 26,030 25,073
------------------ --------------
PREFERRED STOCK - $.01 par value, 4,000,000 shares - -
authorized, none issued
COMMON STOCK - $.01 par value, 10,000,000 shares
authorized, 2,904,343 and 2,894,343 shares issued
ADDITIONAL PAID-IN CAPITAL 2,378 2,348
RETAINED EARNINGS 4,524 4,079
TREASURY STOCK - 169,948 shares (2) (2)
------------------ --------------
Total Stockholders' Equity 6,929 6,454
------------------ --------------
TOTAL LIABILITIES AND $ 32,959 $ 31,527
STOCKHOLDERS' EQUITY
================== ==============
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
Page 4
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30,
--------------------------------
1996 1995
---------- ----------
<S> <C> <C>
REVENUES
Home sales $ 17,870 $ 14,658
Interest and other income 168 235
---------- ----------
18,038 14,893
---------- ----------
COSTS AND EXPENSES
Cost of home sales 15,451 12,776
Selling, general and administrative 1,957 1,670
Interest 152 190
Depreciation 24 16
---------- ----------
17,584 14,652
---------- ----------
INCOME BEFORE INCOME TAXES 454 241
PROVISION FOR INCOME TAXES 196 15
---------- ----------
NET INCOME 258 226
RETAINED EARNINGS, BEGINNING OF PERIOD 4,266 3,443
---------- ----------
RETAINED EARNINGS, END OF PERIOD $ 4,524 $ 3,669
========== ==========
PER SHARE DATA (Primary and Fully Diluted)
Net income $ .09 $ .08
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Primary and fully diluted 2,734,395 2,724,395
========== ==========
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
Page 5
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended September 30,
--------------------------------
1996 1995
---------- ----------
<S> <C> <C>
REVENUES
Home sales $ 31,777 $ 29,269
Interest and other income 329 444
---------- ----------
32,106 29,713
---------- ----------
COSTS AND EXPENSES
Cost of home sales 27,443 25,393
Selling, general and administrative 3,599 3,334
Interest 297 392
Depreciation 46 26
---------- ----------
31,385 29,145
---------- ----------
INCOME BEFORE INCOME TAXES 721 568
PROVISION FOR INCOME TAXES 276 35
---------- ----------
NET INCOME 445 533
RETAINED EARNINGS, BEGINNING OF PERIOD 4,079 3,136
---------- ----------
RETAINED EARNINGS, END OF PERIOD $ 4,524 $ 3,669
========== ==========
PER SHARE DATA (Primary and Fully Diluted)
Net income $ .16 $ .20
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Primary and fully diluted 2,734,395 2,724,395
========== ==========
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these statements.
Page 6
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended September 30,
--------------------------------
1996 1995
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 445 $ 533
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 46 26
Changes in operating assets and liabilities
Increase in restricted cash (17) (127)
Increase in receivables
Decrease (Increase) in real estate inventory (2,026) 778
Decrease in collateral for bonds payable 421 341
Increase (Decrease) in accounts payable and
accrued liabilities 1,375 (351)
Increase in customer deposits 81 47
Increase in other assets (108) --
---------- ----------
---
Net cash provided by operating activities 89 1,009
---------- ----------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Property and equipment, net (8) (12)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from mortgage notes and loans payable 14,637 15,338
Payments of mortgage notes and loans payable (14,744) (16,357)
Repayments of bonds payable - finance subsidiaries (392) (331)
Proceeds from stock options exercised 30 --
---------- ----------
Net cash used in financing activities (469) (1,350)
---------- ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (388) (353)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,214 1,481
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 826 $ 1,128
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ 986 $ 1,131
========== ==========
Income taxes $ 130 $ 44
========== ==========
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these statements.
Page 7
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
International American Homes, Inc. (the "Company") was incorporated
under the laws of the State of Delaware on April 27, 1983. The
Company, through its subsidiaries, designs, builds, and sells
single-family homes and townhomes and develops building lots. The
Company currently conducts its building activities in Metropolitan
Washington, D.C. and Florida.
The interim consolidated financial statements have been prepared
without audit and pursuant to the rules and regulations of the
Securities and Exchange Commission. In the opinion of management,
all adjustments for interim periods presented have been made (which
include only normal recurring accruals and deferrals) for a fair
presentation of consolidated financial position, results of
operations, and cash flows. The consolidated financial statements
and condensed notes should be read in conjunction with the
Consolidated Financial Statements and Notes thereto included in the
Company's latest Annual Report on Form 10-K. Results for interim
periods are not necessarily indicative of the results which might be
expected for a full year.
On April 16, 1990, the Company and certain of its wholly-owned
subsidiaries filed voluntary petitions for relief under Chapter 11,
Title 11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of New Jersey (the "Bankruptcy
Court"). On August 12, 1992, the Bankruptcy Court entered an order
confirming the Company's Plan of Reorganization (the "Plan" or "Plan
of Reorganization").
NOTE 2 - CASH AND CASH EQUIVALENTS
For purposes of the statements of cash flows, the Company generally
considers all highly liquid instruments purchased with an original
maturity of three months or less to be cash equivalents.
NOTE 3 - REAL ESTATE INVENTORY
Real estate inventory consists of the following ( in thousands):
<TABLE>
<CAPTION>
September 30, 1996 March 31, 1996
------------------ ------------------
<S> <C> <C>
Accumulated costs of construction completed and in progress $11,217 $9,595
Land and land development costs 11,987 11,504
Land options and deposits 682 761
------------------ ------------------
$23,886 $21,860
================== ==================
</TABLE>
From time to time as part of the normal operations of the business,
subsidiaries of the Company have bought lots or land which another
subsidiary of the Company was obligated to buy from a third
party seller or which the other subsidiary of the Company owned.
Such transactions were at prices approximating fair market value and
were not significant.
Page 8
<PAGE>
NOTE 4 - CONDENSED FINANCIAL STATEMENTS OF CONSOLIDATED FINANCE
SUBSIDIARIES
The Company's wholly-owned finance subsidiaries were established to
sell collateralized mortgage obligations through participation in
various multi-builder bond programs. In these sales, which last
occurred in 1987, the Company originated and pooled mortgage loans
which were then pledged as collateral for bonds payable. The
interest rates on the mortgage loans that comprise the collateral for
bonds payable roughly equate with the interest rates on the related
bonds payable.
Condensed financial information is as follows (in thousands):
Condensed Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, 1996 March 31, 1996
------------------ ------------------
<S> <C> <C>
Assets:
Collateral for bonds payable $ 5,450 $ 5,871
Other assets 9 30
------------------ ------------------
$ 5,459 $ 5,901
================== ==================
Liabilities and Equity:
Bonds payable $ 5,268 $ 5,660
Equity and intercompany advances 191 241
------------------ ------------------
$ 5,459 $ 5,901
================== ==================
</TABLE>
Condensed Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended September 30,
----------------------------------------
1996 1995
------------------ ------------------
<S> <C> <C>
Revenues $ 271 $ 362
================== ==================
Income before income taxes $ 8 $ 12
================== ==================
<CAPTION>
Three Months Ended September 30,
----------------------------------------
1996 1995
------------------ ------------------
<S> <C> <C>
Revenues $134 $ 180
================== ==================
Income before income taxes $ 3 $ 6
================== ==================
</TABLE>
Page 9
<PAGE>
NOTE 5 - COMMITMENTS AND CONTINGENCIES
At September 30, 1996, the Company had commitments to purchase 723
finished building lots at a total purchase price of approximately
$27,998,000 over a four-year period. Substantial deposits will be
forfeited if the Company is unable to satisfy these commitments.
The Plan of Reorganization provides for distributions to creditors
equal to 50 percent of future cash flows (as defined in the Plan), if
any, for the periods ending June 30, 1993 through June 30, 1998. The
Company has calculated the cash flow (as defined in the Plan) for the
period ended June 30, 1996 and has determined that there was no
excess cash flow (as defined in the Plan) for that period and
accordingly no distribution to creditors was required. During the
year ended March 31, 1993, the Company estimated the initial
liability for these potential distributions in the amount of
$1,322,000 and such amount is included in Accounts Payable and
Accrued Liabilities on the accompanying consolidated balance sheets.
The Company is involved from time to time in litigation arising in
the ordinary course of business, none of which is expected to have a
material adverse effect on the Company's financial position or the
results of operations.
Page 10
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company, through its subsidiaries, obtains financing from
commercial banks for a portion of the cost of acquiring finished
building lots and for most of the costs of the construction of homes.
This financing is generally available for homes that are subject to a
contract of sale and also for a limited number of homes in advance of
sale. The Company's loan commitments as well as current banking
regulations limit the portion of each home that can be financed to
approximately 75% of its value. Since the Company uses its own
capital resources to fund those costs that cannot be financed, the
Company's future growth will be limited by the amount of such
resources. As a result of the use of these financing arrangements,
the Company is currently, and expects to continue to be, highly
leveraged.
The Company's subsidiaries currently have financing agreements in the
aggregate amount of $33,219,000 with commercial banks located in the
areas in which the subsidiaries operate. The terms of these
financing agreements vary, are each for one year or more from their
date of origination (with expiration dates ranging from November 1996
to October 1998) , are generally guaranteed by the Company, and are
all secured by the related real estate inventory. The Company's
Chairman and President has agreed to personally guarantee certain of
these obligations up to an aggregate maximum amount of $14,469,000 .
At September 30, 1996, the outstanding principal amount of loans
guaranteed by the Company's Chairman and President was $4,155,000.
The Company generally acquires finished building lots under contracts
which spread the time for acquisition of such lots over a period of
time that roughly coincides with the estimated time required for the
sale of the homes on those lots. At September 30, 1996, the Company
had commitments to purchase 723 finished building lots at a total
purchase price of approximately $27,998,000 over a four-year period.
These commitments assure a continuing supply of finished building
lots in the future. Substantial deposits will be forfeited if the
Company is unable to satisfy these commitments.
During the year ended March 31, 1996, the Company purchased a parcel
of land in Greater Tampa, Florida containing approximately 360
developed and undeveloped lots. At September 30, 1996, the Company
had substantially developed 109 of those undeveloped lots into
finished building lots. The Company obtained financing from a
commercial bank to fund a portion of the cost of acquiring and
developing the land.
The Company's short-term liquidity and its ability to operate over
the short term are reasonably assured by the financing agreements in
place, by the Company's backlog of sales contracts, and by the
commitments to acquire finished building lots. The Company's long-
term liquidity is not affected by any material capital expenditures
but would be impacted by the inability to renew certain of the
financing agreements when they mature. The strength of the housing
markets in the areas where the Company operates and the ability of
the Company to maintain a continuing supply of finished building lots
will also affect the Company's long-term liquidity. Management
believes that the Company currently has adequate financing and
liquidity to meet its financial obligations and will be able to fund
the acquisition and construction of inventory to support modest
growth. However, there is no assurance that such financing will be
available to the Company in the future. In addition, homebuilding is
a cyclical industry with economic conditions having a substantial
impact on operating performance.
The Plan does not permit the subsidiaries of the Company to pay any
dividends to the parent company. The Plan further prohibits the
Company and its subsidiaries from acquiring debt securities from or
loaning or advancing
Page 11
<PAGE>
any money to any other party except in the ordinary course of
business. These restrictions are effective until August 12, 1998
and by their nature require the Company's subsidiaries to be
self-sufficient. From time to time, a subsidiary of the Company
makes a purchase of land or finished building lots from or on
behalf of another subsidiary and later resells that land or finished
building lots to the latter on terms that will assure that the
accommodation purchaser recovers its costs. While such
transactions can affect temporarily the cash flow of each of the
participating subsidiaries, they do not impact the overall cash flow
of the Company. The Plan further provides for the payment of
distributions to the creditors equal to 50 percent of cash flows (as
defined in the Plan), if any, generated by the Company's subsidiaries
for the periods ending June 30, 1993 through June 30, 1998. Any such
payment of 50 percent of the cash flow would be funded from the cash
flow generated. Despite these requirements and restrictions,
management believes that the Company and each of its subsidiaries
currently have adequate liquidity to meet their financial
obligations. However, there is no assurance that these requirements
and restrictions will not have an impact on the future liquidity of
the Company or its subsidiaries.
RESULTS OF OPERATIONS
The following table sets forth certain information with respect to
homes delivered and homes sold during the periods presented, as well
as homes sold under contract but not delivered ("Backlog") at the
dates shown (dollars in thousands).
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Homes delivered
Units 119 94 217 191
Home sales revenue $ 17,870 $ 14,658 $ 31,777 $ 29,269
Average sales price $ 150.2 $ 155.9 $ 146.4 $ 153.2
Homes sold
Units 81 103 208 181
Sales value $ 12,287 $16,614 $ 31,740 $ 27,538
Average sales price $ 151.7 $ 161.3 $ 152.6 $ 152.1
<CAPTION>
September 30,
----------------------------------
Backlog 1996 1995
---------- ----------
Units 133 111
Sales value $ 25,192 $ 19,294
Average sales price $ 189.4 $ 173.8
</TABLE>
The increase in home sales revenues for the three and six months
ended September 30, 1996 compared to the three and six months ended
September 30, 1995 results from an increase in the number of homes
delivered. The decrease in the average sales price of homes
delivered is attributable to a greater proportion of homes delivered
being from Greater Tampa, where prices are generally lower than in
Metropolitan Washington, D.C. and increased sales of a lower priced
townhome product in Metropolitan Washington, D.C.
The number of homes sold during the three months ended September 30,
1996 and the average sales price of the homes sold during that period
were both lower when compared with the prior comparable period. The
decrease in the number of homes sold is due to a decrease in the
number of homes sold in Metropolitan Washington, D.C.
Page 12
<PAGE>
The decrease in the average sales price of the homes sold is
attributable to a larger proportion of sales in Greater Tampa,
where prices are generally lower than in Metropolitan Washington, D.C.
The number of homes sold during the six months ended September 30,
1996 and the average sales price of the homes sold during that period
were both higher when compared with the prior comparable period due
to the increase in the number of homes sold in the first three months
of the fiscal year.
The Backlog at September 30, 1996 and 1995 includes $6,803,000 and
$3,845,000 of contingent contracts, respectively.
THREE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1995
The following table sets forth, for the periods indicated, certain
information regarding the Company's operations (dollars in
thousands).
<TABLE>
<CAPTION>
Three Months Ended September 30,
------------------------------------------------------------------------------
1996 1995
-------------------------------- --------------------------------
Dollars % Dollars %
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Home sales revenues $ 17,870 100.0 $ 14,658 100.0
Cost of home sales 15,451 86.5 12,776 87.2
Gross profit 2,419 13.5 1,882 12.8
Selling, general and administrative 1,957 11.0 1,670 11.4
expenses
Income before income taxes 454 2.5 241 1.6
</TABLE>
Gross profit increased for the three months ended September 30, 1996
compared to the three months ended September 30, 1995, and gross
profit as a percentage of home sales revenue increased from 12.8% to
13.5%. The increase in gross profits is due to the increase in home
sales revenue, while the increase in gross profit as a percentage of
home sales revenue is due primarily to direct cost savings which have
resulted in improved margins.
Selling, general and administrative expenses for the three months
ended September 30, 1996 increased when compared with the prior
comparable period but decreased as a percentage of the related home
sales revenue. The increase in selling, general and administrative
expenses is due to the increase in home sales revenue. The
percentage decrease in selling, general and administrative expenses
is due to fixed expenses being absorbed over a larger number of units
delivered.
The change in pre-tax profit for the three months ended September 30,
1996 compared to the three months ended September 30, 1995 reflects
the changes in gross profit and in selling, general and
administrative expenses described above.
Interest and other income includes $134,000 and $180,000 and interest
expense includes $131,000 and $174,000 for the three months September
30, 1996 and September 30, 1995, respectively, from wholly-owned
finance subsidiaries established in prior years to sell
collateralized mortgage obligations through participation in various
multi-builder bond programs.
Page 13
<PAGE>
SIX MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO SIX MONTHS ENDED
SEPTEMBER 30, 1995
The following table sets forth, for the periods indicated, certain
information regarding the Company's operations (dollars in
thousands).
<TABLE>
<CAPTION>
Six Months Ended September 30,
-----------------------------------------------------------------------------
1996 1995
------------------------------ -------------------------------
Dollars % Dollars %
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Home sales revenues $ 31,777 100.0 $ 29,269 100.0
Cost of home sales 27,443 86.4 25,393 86.8
Gross profit 4,334 13.6 3,876 13.2
Selling, general and administrative
expenses 3,599 11.3 3,334 11.4
Income before income taxes 721 2.3 568 1.9
</TABLE>
Gross profit increased for the six months ended September 30, 1996
compared to the six months ended September 30, 1995, and gross profit
as a percentage of home sales revenue increased from 13.2% to 13.6% .
The increase in gross profit is due to the increase in home sales
revenue , while the increase in gross profit as a percentage of home
sales revenue is due primarily to direct cost savings which have
resulted in improved margins.
Selling, general and administrative expenses for the six months ended
September 30, 1996 increased when compared with the prior comparable
period but were relatively unchanged when compared as a percentage of
the related home sale revenue. The increase in selling, general and
administrative expenses is due to the increase in sales and is also
due to an increase in the fixed components of selling, general, and
administrative expenses.
The change in pre-tax profit for the six months ended September 30,
1996 compared to the six months ended September 30, 1995 reflects the
changes in gross profit and in selling, general and administrative
expenses described above.
Interest and other income includes $271,000 and $362,000 and interest
expense includes $263,000 and $347,000 for the six months ended
September 30, 1996 and for the six months ended September 30, 1995
respectively, from wholly-owned finance subsidiaries established to
sell collateralized mortage obligations through participation in
various multi-builder bond programs.
Page 14
<PAGE>
Part II. Other Information
ITEM 4
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Stockholders was held on September 12, 1996.
The following matters were considered and acted upon, with the
results indicated below:
The stockholders elected one member of the Board of Directors, to
serve until August 27, 1998 or until his successor is elected and has
qualified. The name of the director , the votes cast for his
election and the number of votes withheld were as follows:
Name Votes For Votes Withheld
- ------------- ----------- ----------------
James G. Farr 1,737,975 35,458
The other eight Directors who continue to serve on the Board of
Directors are: Robert J. Suarez, William D. Aiken, Kenneth W.
Carlson, Dionel Cotanda, Robert E. Everett, Brian Gibney, Jeffrey D.
Prol and Peter A. Davis.
In addition, the stockholders voted to approve the appointment of
Arthur Andersen LLP as the auditors of the financial statements of
the Company for fiscal year 1997. The votes for and against the
proposal, and the number of abstentions were as follows:
For Against Abstain
----------- --------- ---------
1,714,542 17,214 41,677
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
(a)Exhibits
None
(a)Reports on Form 8-K
None
Page 15
<PAGE>
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.
INTERNATIONAL AMERICAN HOMES, INC.
Date: November 14, 1996 By: /S/ ROBERT J. SUAREZ
--------------------
Robert J. Suarez
President
Date: November 14, 1996 By: /S/ ROBERT I. ANTLE
-------------------
Robert I. Antle
Executive Vice President, Treasurer, and
Chief Financial Officer
Page 16
