================================================================================
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 DECEMBER 31, 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 Identification Number)
incorporation or organization)
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 January 31, 1997, the number of shares outstanding of the registrant's
common stock, par value $.01, was 2,784,395.
================================================================================
Total number of pages: 16
PAGE 1
<PAGE>
INTERNATIONAL AMERICAN HOMES, INC.
----------------------------------
AND SUBSIDIARIES
----------------
Index
-----
<TABLE>
<CAPTION>
Page
----
Part I. Financial Information:
Item 1. Consolidated Financial Statements
<S> <C>
Consolidated Balance Sheets (Unaudited) as of December 31, 1996 and March
31, 1996........................................................................3
Consolidated Statements of Income and Retained Earnings (Unaudited) for the
three months ended December 31, 1996 and 1995...................................5
Consolidated Statements of Income and Retained Earnings (Unaudited) for the
nine months ended December 31, 1996 and 1995....................................6
Consolidated Statements of Cash Flows (Unaudited) for the nine months ended
December 31, 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 6. Exhibits and Reports on Form 8-K...............................................15
Signatures.........................................................................................16
</TABLE>
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>
December 31, 1996 March 31, 1996
-------------------- ------------------
<S> <C> <C>
CASH AND SHORT-TERM INVESTMENTS $ 2,600 $ 1,764
($512 and $550 restricted)
RECEIVABLES 1,208 1,223
REAL ESTATE INVENTORY 22,775 21,860
COLLATERAL FOR BONDS PAYABLE 5,296 5,871
PROPERTY AND EQUIPMENT - less accumulated depreciation 108 172
of $296 and $223
OTHER ASSETS 869 637
TOTAL ASSETS $ 32,856 $ 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>
December 31, 1996 March 31, 1996
-------------------- ----------------
<S> <C> <C>
MORTGAGE NOTES AND LOANS PAYABLE
Construction and mortgage notes secured by real estate inventory $ 13,584 $ 13,785
Other notes payable -- 29
-------------------- ----------------
13,584 13,814
BONDS PAYABLE 5,119 5,660
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 6,654 5,362
CUSTOMER DEPOSITS 266 237
-------------------- ----------------
Total Liabilities 25,623 25,073
-------------------- ----------------
PREFERRED STOCK - $.01 par value, 4,000,000 shares
authorized, none issued -- --
COMMON STOCK - $.01 par value, 10,000,000 shares authorized,
2,954,343 and 2,894,343 shares issued 29 29
ADDITIONAL PAID-IN CAPITAL 2,378 2,348
RETAINED EARNINGS 4,828 4,079
TREASURY STOCK - 169,948 shares (2) (2)
-------------------- ----------------
Total Stockholders' Equity 7,233 6,454
TOTAL LIABILITIES AND $ 32,856 $ 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 December 31,
1996 1995
-------------- ---------------
<S> <C> <C>
REVENUES
Home sales $18,944 $13,719
Interest and other income 163 231
-------------- ---------------
19,107 13,950
-------------- ---------------
COSTS AND EXPENSES
Cost of home sales 16,394 11,827
Selling, general and administrative 2,049 1,593
Interest 147 210
Depreciation 27 21
-------------- ---------------
18,617 13,651
-------------- ---------------
INCOME BEFORE INCOME TAXES 490 299
PROVISION FOR INCOME TAXES 186 15
-------------- ---------------
NET INCOME 304 284
RETAINED EARNINGS, BEGINNING OF PERIOD 4,524 3,669
-------------- ---------------
RETAINED EARNINGS, END OF PERIOD $ 4,828 $ 3,953
============== ===============
PER SHARE DATA (Primary and Fully Diluted)
Net income $ .11 $ .10
============== ===============
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Primary and fully diluted 2,784,395 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>
Nine Months Ended December 31,
1996 1995
--------------- ---------------
<S> <C> <C>
REVENUES
Home sales $ 50,721 $42,988
Interest and other income 492 675
--------------- ---------------
51,213 43,663
--------------- ---------------
COSTS AND EXPENSES
Cost of home sales 43,837 37,220
Selling, general and administrative 5,648 4,927
Interest 444 602
Depreciation 73 47
--------------- ---------------
50,002 42,796
--------------- ---------------
INCOME BEFORE INCOME TAXES 1,211 867
PROVISION FOR INCOME TAXES 462 50
--------------- ---------------
NET INCOME 749 817
RETAINED EARNINGS, BEGINNING OF PERIOD 4,079 3,136
--------------- ---------------
RETAINED EARNINGS, END OF PERIOD $ 4,828 $ 3,953
=============== ===============
PER SHARE DATA (Primary and Fully Diluted)
Net income $.27 $.30
=============== ===============
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Primary and fully diluted 2,758,213 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>
Nine Months Ended December 31,
1996 1995
--------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 749 $ 817
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 73 47
Changes in operating assets and liabilities
Decrease (Increase) in restricted cash 38 (403)
Decrease (Increase) in receivables 15 (285)
Increase in real estate inventory (915) (2,493)
Decrease in collateral for bonds payable 575 815
Increase in accounts payable and accrued liabilities 1,292 11
Increase in customer deposits 29 26
Increase in other assets (232) (56)
--------------- ----------------
Net cash provided by operating activities 1,624 (1,521)
--------------- ----------------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Property and equipment, net (9) (64)
--------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from mortgage notes and loans payable 28,765 25,582
Payments of mortgage notes and loans payable (28,995) (23,976)
Repayments of bonds payable - finance subsidiaries (541) (792)
Proceeds from stock options exercised 30 ----
--------------- ----------------
Net cash (used) provided in financing activities (741) 814
--------------- ----------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 874 (771)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,214 1,481
--------------- ----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,088 $ 710
=============== ================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $1,494 $1,679
=============== ================
Income taxes $ 230 $ 64
=============== ================
</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>
December 31, 1996 March 31, 1996
-------------------- --------------------
<S> <C> <C>
Accumulated costs of construction completed and in progress $10,423 $9,595
Land and land development costs 11,652 11,504
Land options and deposits 700 761
-------------------- --------------------
$22,775 $21,860
==================== ====================
</TABLE>
From time to time as part of the normal operations of the business, the
subsidiaries of the Company have bought lots or land which the other 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>
December 31, 1996 March 31, 1996
----------------------- -----------------------
<S> <C> <C>
Assets:
Collateral for bonds payable $ 5,296 $ 5,871
Other assets 8 30
----------------------- -----------------------
$5,304 $ 5,901
======================= =======================
Liabilities and Equity:
Bonds payable $ 5,119 $ 5,660
Equity and intercompany advances 185 241
----------------------- -----------------------
$ 5,304 $ 5,901
======================= =======================
</TABLE>
Condensed Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended December 31,
1996 1995
----------------------- -------------------------
<S> <C> <C>
Revenues $ 402 $ 548
======================= =========================
Income before income taxes $ 10 $ 16
======================= =========================
<CAPTION>
Three Months Ended December 31,
1996 1995
----------------------- -------------------------
<S> <C> <C>
Revenues $ 131 $ 186
======================= =========================
Income before income taxes $ 2 $ 4
======================= =========================
</TABLE>
PAGE 9
<PAGE>
NOTE 5 - COMMITMENTS AND CONTINGENCIES
At December 31, 1996, the Company had commitments to purchase 724 finished
building lots at a total purchase price of approximately $27,878,000 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 $38,069,000 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 April 1997 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 $13,969,000 . At December 31, 1996, the
outstanding principal amount of loans guaranteed by the Company's Chairman and
President was $4,114,000.
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 December 31, 1996, the Company had commitments to purchase 724 finished
building lots at a total purchase price of approximately $27,878,000 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 December 31, 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 continued 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 any money to any
other party except in the ordinary course of business. These restrictions are
effective until
PAGE 11
<PAGE>
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.
The housing market in Metropolitan Washington has become increasingly
competitive. The rate of absorption in substantially all areas within the market
has decreased while the number of projects have increased. An overall reduction
in gross margins and increased selling expenses has resulted in an operating
loss in the Metropolitan Washington subsidiary. The Company has made changes in
key management and in the way certain operations were conducted. Although
management believes that such changes will have a positive effect on operations
in the future, there can be no assurance that these changes will have the
desired effect or how long adverse market conditions will continue in
Metropolitan Washington.
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 December 31, Nine Months Ended
December 31, December 31,
------------------------------- -------------------------------
1996 1995 1996 1995
---------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Homes delivered
Units 119 93 336 284
Home sales revenue $18,944 $13,719 $50,721 $42,988
Average sales price $159.2 $147.5 $151.0 $ 151.4
Homes sold
Units 94 85 302 266
Sales value $12,883 $12,504 $44,623 $40,042
Average sales price $137.1 $147.1 $147.8 $ 150.5
<CAPTION>
December 31,
-------------------------------
Backlog 1996 1995
------------ ------------
<S> <C> <C>
Units 108 103
Sales value $19,187 $18,079
Average sales price $177.7 $ 175.5
</TABLE>
The increase in home sales revenue for the three and nine months ended December
31, 1996 compared to the three and nine months ended December 31, 1995 results
from an increase in the number of homes delivered. The increase in the average
sales price of homes delivered for the three months ended December 31, 1996 is
primarily
PAGE 12
<PAGE>
attributable to higher average sales prices. The decrease in the average sales
price of homes delivered for the nine months ended December 31, 1996 is
attributable to a lower average sales price during the first six months of the
period in Metropolitan Washington, D.C. where the sales mix reflected increased
sales of a lower priced townhome product, substantially offset by higher average
sales prices of single family homes.
Although the number of homes sold during the three and nine months ended
December 31, 1996 increased, the average sales price of the homes sold during
the period was lower when compared to the prior comparable periods. The
increase in the number of homes sold and the lower average sales price is due to
a greater proportion of homes sold being from Greater Tampa where prices are
generally lower than in Metropolitan Washington, D.C..
The backlog at December 31, 1996 and 1995 includes $3,253,000 and $6,142,000 of
contingent contracts.
THREE MONTHS ENDED DECEMBER 31, 1996 COMPARED TO THREE MONTHS ENDED DECEMBER 31,
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 December 31,
---------------------------------------------------------------
1996 1995
---------------------------- ----------------------------
Dollars % Dollars %
------------ ---------- ------------ ---------
<S> <C> <C> <C> <C>
Home sales revenues $18,944 100.0 $13,719 100.0
Cost of home sales 16,394 86.5 11,827 86.2
Gross profit 2,550 13.5 1,892 13.8
Selling, general and administrative expenses 2,049 10.8 1,593 11.6
Income before income taxes 490 2.6 299 2.1
</TABLE>
Gross profit increased for the three months ended December 31, 1996 compared to
the three months ended December 31, 1995, and gross profit as a percentage of
home sales revenue decreased. The increase in gross profit is due to the
increase in home sales revenue partially offset by the decrease in the gross
profit percentage.
Selling, general and administrative expenses for the three months ended December
31, 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
revenues and higher total selling and marketing expenses. The percentage
decrease in selling, general and administrative expenses is due to general and
administrative expenses being absorbed over a larger number of units delivered
partially offset by the higher per unit selling and marketing expenses.
The change in pre-tax profit for the three months ended December 31, 1996
compared to the three months ended December 31, 1995 reflects the changes in
gross profit and in selling, general and administrative expenses described
above.
Interest and other income includes $131,000 and $186,000 and interest expense
includes $129,000 and $182,000 for the three months December 31, 1996 and
December 31, 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>
NINE MONTHS ENDED DECEMBER 31, 1996 COMPARED TO NINE MONTHS ENDED
DECEMBER 31, 1995
The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).
<TABLE>
<CAPTION>
Nine Months Ended December 31,
---------------------------------------------------------------
1996 1995
---------------------------- ----------------------------
Dollars % Dollars %
------------ ---------- ------------ ---------
<S> <C> <C> <C> <C>
Home sales revenues $50,721 100.0 $42,988 100.0
Cost of home sales 43,837 86.4 37,220 86.6
Gross profit 6,884 13.6 5,768 13.4
Selling, general and administrative expenses 5,648 11.1 4,927 11.5
Income before income taxes 1,211 2.4 867 2.0
</TABLE>
Gross profit increased for the nine months ended December 31, 1996 compared to
the nine months ended December 31, 1995, and gross profit as a percentage of
home sales revenues increased. The increase in gross profit is due to the
increase in home sales revenue and a slightly higher gross profit percentage.
Selling, general and administrative expenses for the nine months ended December
31, 1996 increased when compared with the prior comparable period but decreased
nominally as a percentage of the related home sales revenue. The increase in
selling, general and administrative expense is due to the increase in home sales
revenue and higher total selling and marketing expenses. The percentage decrease
in selling, general and administrative expenses is due to general and
administrative expenses being absorbed over a larger number of units delivered
partially offset by the higher per unit selling and marketing expenses.
The change in pre-tax profit for the nine months ended December 31, 1996
compared to the nine months ended December 31, 1995 reflects the changes in
gross profit and in selling, general and administrative expenses described
above.
Interest and other income includes $ 402,000 and $ 548,000 and interest expense
includes $ 392,000 and $522,000 for the nine months ended December 31, 1996 and
for the nine months ended December 31, 1995 respectively, generated from
wholly-owned finance subsidiaries established to sell collateralized mortage
obligations through participation in various multi-builder bond programs.
PAGE 14
<PAGE>
ITEM 6
------
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) 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: February 14, 1997 By: /S/ ROBERT J. SUAREZ
--------------------
Robert J. Suarez
President
Date: February 14, 1997 By: /S/ ROBERT I. ANTLE
--------------------
Robert I. Antle
Executive Vice President, Treasurer, and
Chief Financial Officer
PAGE 16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 2600
<SECURITIES> 0
<RECEIVABLES> 1208
<ALLOWANCES> 0
<INVENTORY> 22775
<CURRENT-ASSETS> 0<F1>
<PP&E> 404
<DEPRECIATION> 296
<TOTAL-ASSETS> 32856
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 18703
0
0
<COMMON> 29
<OTHER-SE> 7204
<TOTAL-LIABILITY-AND-EQUITY> 32856
<SALES> 18944
<TOTAL-REVENUES> 19107
<CGS> 16394
<TOTAL-COSTS> 18617
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 490
<INCOME-TAX> 186
<INCOME-CONTINUING> 304
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 304
<EPS-PRIMARY> .11
<EPS-DILUTED> .11
<FN>
<F1>the Company does not present a classified balance sheet
</FN>
</TABLE>
