<PAGE>
Filed by Schuler Homes, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed to be filed pursuant to Rule 14a-12
of the Securities Act of 1934
Subject: Schuler Homes, Inc.
Commission File No. 000-19891
SET FORTH BELOW IS THE
TEXT OF SLIDES USED DURING
PRESENTATIONS BY SCHULER HOMES, INC.
[SCHULER HOMES, INC. LOGO]
SCHULER HOMES
INVESTOR PRESENTATION
September 2000
<PAGE>
STRATEGIC RATIONALE
--------------------------------------------------------------------------------
- Creates "Top 15" builder in terms of revenue and closings
- Combined LTM revenues over $1.1 billion
- Combined LTM closings of 4,663
- Provides for significant expansion into the California market
- Leading market share positions in top Western US markets
- Doubles market capitalization and strengthens financial resources
- 40.2 million shares outstanding
- Immediately accretive to earnings (without synergies)
- Strong financial results for each company
- 3-year historical revenue growth of 58% on a combined basis
- Among the highest margins in the industry
- Backlog of $449 million, up 38% from 1999
- Strong land position positions company for future growth
- Over 27,000 lots controlled; 48% optioned
- Further enhances the depth and strength of management
DOUBLES SIZE OF COMPANY AND CREATES A WELL-DIVERSIFIED WESTERN US BUILDER
1
<PAGE>
MANAGEMENT TEAM
--------------------------------------------------------------------------------
DEEP AND EXPERIENCED MANAGEMENT TEAM
JAMES K. SCHULER
Co-Chairman, President,
Chief Executive Officer
EUGENE ROSENFELD
Co-Chairman
CRAIG MANCHESTER
Executive Vice President,
Chief Operating Officer
PAMELA JONES
Executive Vice President,
Chief Investment Officer
THOMAS CONNELLY
Senior Vice President,
Chief Financial Officer
DOUGLAS TONOKAWA
Vice President of Finance,
Chief Accounting Officer
2
<PAGE>
WESTERN PACIFIC'S STRONG GROWTH AND PROFITABILITY
--------------------------------------------------------------------------------
- Western Pacific's California markets are among the fastest growing in the US
- Western Pacific has a history of strong financial growth and high margins
- June 30, 2000 backlog of $217 million, up 68% from June 30, 1999 backlog
REVENUES
<TABLE>
<CAPTION>
Revenue ($ in millions)
<S> <C>
1998 $192.9
1999 $423.3
2000 $550.9
</TABLE>
CAGR = 69%
EBITDA*
<TABLE>
<CAPTION>
EBITDA ($ in millions)
<S> <C> <C>
1998 $24.5 12.7%
1999 $60.8 14.4%
2000 $82.9 15.0%
</TABLE>
CAGR = 84%
* EBITDA margin shown in italics
3
<PAGE>
WESTERN PACIFIC OVERVIEW
-------------------------------------------------------------------------------
- Western Pacific is the sixth largest homebuilder in California
- Wide variety of products with an average price of $338,000
- Well positioned for future growth with existing land position
OPERATING DATA BY REGION AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
Lots Under Control LTM Years of Supply (2)
------------------------------ -------------------
Owned Optioned # Total Closings (1) Owned Total
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SOUTHERN CALIFORNIA
Orange County/Inland Empire 519 666 1,185 272 1.9 4.4
Los Angeles/Ventura 698 1,383 2,081 307 2.3 6.8
San Diego 920 936 1,856 412 2.2 4.5
NORTHERN CALIFORNIA
Bay Area 770 339 1,109 179 4.3 6.2
North Bay/Sacramento 1,217 1,597 2,814 471 2.6 6.0
----- ----- ----- ----- ---- ----
Total Lot Inventory 4,124 4,921 9,045 1,641 2.5 5.5
------------------------------------------------------------------------------------------------
</TABLE>
(1) For 12 months ended 6/30/00.
(2) Lots/Closings. Management believes the years of supply to be lower
based on projected closings.
4
<PAGE>
LEADING, TOP TIER BUILDER
--------------------------------------------------------------------------------
THE COMBINED COMPANY CLEARLY RANKS AMONGST THE TOP TIER
REGIONAL AND NATIONAL BUILDERS
<TABLE>
<CAPTION>
RANK COMPANY LTM CLOSINGS LTM REVENUE (1) RANK COMPANY EQUITY MARKET CAP (2)
($000s) ($000s)
------------------------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C>
1 Kaufman & Broad 22,611 $3,855 1 Centex Corporation $1,867
2 Lennar Corporation(3) 21,658 4,638 2 Lennar Corporation 1,747
3 Pulte Corporation 19,455 3,750 3 Pulte Corporation 1,365
4 Centex Corporation 19,378 3,819 4 D. R. Horton, Inc. 1,279
5 D. R. Horton, Inc. 19,290 3,474 5 Toll Brothers 1,138
6 The Ryland Group, Inc. 10,431 2,015 6 Kaufman & Broad 1,009
7 NVR Inc. 9,499 2,072 7 NVR Inc. 697
8 Del Webb Corp. 8,419 2,040 8 MDC Holdings 526
9 Beazer Homes USA, Inc. 7,770 1,455 9 Standard Pacific Corp. 475
10 MDC Holdings 7,322 1,607 10 Del Webb Corp. 422
11 PRO FORMA COMBINED 4,663 1,149 11 PRO FORMA COMBINED 357
12 Hovnanian Enterprises 4,097 1,015 12 The Ryland Group, Inc. 330
13 M/ I Schottenstein
Homes, Inc. 4,034 883 13 Beazer Homes USA, Inc. 213
14 Toll Brothers 3,681 1,574 14 Crossmann Communities 201
15 Standard Pacific Corp. 3,378 1,191 15 SCHULER HOMES 178
16 Hovnanian Enterprises 169
NA SCHULER HOMES 3,022 $613 17 Engle Homes, Inc. 169
NA WESTERN PACIFIC 1,641 536 18 M/I Schottenstein Homes, Inc. 159
</TABLE>
(1) Homebuilding revenue as of 6/30/00
(2) As of September 11, 2000
(3) Pro forma for US Home transaction
Source: Company reports
5
<PAGE>
LEADING BUILDER IN ATTRACTIVE MARKETS
--------------------------------------------------------------------------------
LEADING POSITIONS IN TOP WESTERN US HOMEBUILDING MARKETS
[MAP]
<TABLE>
<CAPTION>
PRO FORMA
LTM CLOSINGS % TOTAL
6/30/00
------------ ------------
<S> <C> <C>
Colorado
Consolidated 1,565 33.6%
Unconsolidated 96 2.1
------------ ------------
Total Colorado 1,661 35.6%
Hawaii
Consolidated 325 7.0%
Unconsolidated 33 0.7
------------ ------------
Total Hawaii 358 7.7%
Northern California 974 20.9%
Southern California 1,071 23.0
------------ ------------
Total California 2,045 43.9%
Oregon 299 6.4%
Washington 300 6.4%
Arizona -- --
---------------------------------------------------------
TOTAL 4,663 100.0%
=========================================================
</TABLE>
Source: Company reports
6
<PAGE>
STRATEGICALLY POSITIONED IN FAST GROWING MARKETS
--------------------------------------------------------------------------------
LEADING CALIFORNIA BUILDER - THE COMBINED COMPANY IS AMONG THE LARGEST
CALIFORNIA BUILDERS WITH A DIVERSIFIED POSITION THROUGHOUT THE STATE
[MAP OF CALIFORNIA]
<TABLE>
<CAPTION>
BAY AREA
<S> <C>
Shlr Closings: 210
WP Closings: 179
----------------------
Total: 389
<CAPTION>
NORTH BAY/
SACRAMENTO
<S> <C>
Shlr Closings: 114
WP Closings: 471
----------------------
Total: 585
<CAPTION>
ORANGE CO./INLAND
EMPIRE
<S> <C>
Shlr Closings: 20
WP Closings: 272
----------------------
Total: 292
<CAPTION>
L. A./VENTURA COUNTIES
<S> <C>
Shlr Closings: 39
WP Closings: 307
----------------------
Total: 346
<CAPTION>
SAN DIEGO
<S> <C>
Shlr Closings: 21
WP Closings: 412
----------------------
Total: 433
</TABLE>
LTM closings as of 6/30/00
<TABLE>
<CAPTION>
RANKING
ECONOMIC INDICATORS WITHIN US
---------------------------------------- ---------
<S> <C> <C>
1995-2025 Population Growth 17.7 1
(million people)
Number of non-Farm Employment 14.4 1
(June 2000, million people)
Gross State Product 963 1
(1996, in $billions)
1999 Single Family Permits 103 1
(1000 units)
Personal income (1998, $billions) 898 1
</TABLE>
Source: US Census Bureau
7
<PAGE>
GEOGRAPHIC DIVERSIFICATION
--------------------------------------------------------------------------------
GEOGRAPHIC DIVERSIFICATION IN ATTRACTIVE GROWTH MARKETS
SCHULER STAND-ALONE
-----------------------------
REVENUE LTM AS OF 6/30/00
$613 MM
[PIE CHART]
<TABLE>
<S> <C>
Colorado 49%
California 16%
Hawaii 14%
Washington 13%
Oregon 8%
</TABLE>
ASSETS AS OF 6/30/00
$518 MM
[PIE CHART]
<TABLE>
<S> <C>
Hawaii 32%
Colorado 28%
California 18%
Washington 13%
Oregon 6%
Arizona 3%
</TABLE>
PRO FORMA
-----------------------------
REVENUE LTM AS OF 6/30/00
$1,149 MM
[PIE CHART]
<TABLE>
<S> <C>
Colorado 26%
North Bay 14%
San Diego 13%
Bay Area 11%
L.A. 11%
Hawaii 8%
Washington 7%
Orange County 6%
Oregon 4%
</TABLE>
ASSETS AS OF 6/30/00
$964 MM
[PIE CHART]
<TABLE>
<S> <C>
Hawaii 18%
Colorado 15%
San Diego 13%
North Bay 12%
L. A. 12%
Orange County 9%
Bay Area 9%
Washington 7%
Oregon 4%
Arizona 1%
</TABLE>
Source: Company reports
8
<PAGE>
SUMMARY MARKET OVERVIEW
--------------------------------------------------------------------------------
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA
-----------------------
($ MILLIONS) SHLR WP TOTAL COLORADO HAWAII WASHINGTON OREGON ARIZONA TOTAL
----------------------------------------------------------------------------------------------------------
Market Rank NM #6 #6 #3 #2 #3 #3 NM
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM Revenues $99 $536 $635 $298 $88 $81 $47 $0 $1,149
LTM Unit Closings 404 1,641 2,045 1,661 358 300 299 0 4,663
----------------------------------------------------------------------------------------------------------
Lots Owned 1,165 4,124 5,289 4,943 2,432 818 425 240 14,147
Lots Optioned 4,553 4,921 9,474 1,692 91 393 109 1,386 13,145
----- ----- ------ ----- ----- ----- --- ----- ------
Total Lots Controlled 5,718 9,045 14,763 6,635 2,523 1,211 534 1,626 27,292
----------------------------------------------------------------------------------------------------------
Backlog (units) 158 642 800 551 99 119 73 0 1,642
Backlog (aggregate sales $47 $217 $264 $114 $25 $35 $10 $0 $449
value, $ millions) (1)
----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Numbers may not add to the total due to rounding.
9
<PAGE>
SUMMARY MARKET OVERVIEW
-------------------------------------------------------------------------------
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA
-------------------------
($ MILLIONS) SHLR WP TOTAL COLORADO HAWAII WASHINGTON OREGON ARIZONA TOTAL
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Active Subdivisions 8 27 35 14 14 10 11 0 84
Subdivisions Owned 10 52 62 22 14 14 11 2 125
Subdivisions Optioned (1) 12 33 45 4 2 4 2 5 62
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Subdivisions 22 85 107 26 16 18 13 7 187
----------------------------------------------------------------------------------------------------------------
Total Inventories $78 $405 $483 $129 $149 $62 $29 $13 $864
----------------------------------------------------------------------------------------------------------------
MARKET STATISTICS
Total 1999 Permits (2) 102.8 38.4 3.4 28.1 16.6 53.2
('000)
Annual Population Growth 1.5% 1.1% 1.4% 1.2% 1.1% 1.4% 0.8%
(1995-2025)
1999 Homeownership rates 55.7% 68.1% 56.6% 64.8% 64.3% 66.3% 66.8%
</TABLE>
(1) In addition, the Company has lots optioned on the subdivisions owned
(2) Single unit homes
Source: US Census Bureau
10
<PAGE>
ORGANIZATIONAL STRUCTURE
--------------------------------------------------------------------------------
DEEP AND EXPERIENCED MANAGEMENT TEAM WITH STRONG LOCAL KNOWLEDGE
SCHULER HOMES, INC.
James K. Schuler, Co-Chairman, President, Chief Executive Officer
Eugene Rosenfeld, Co-Chairman
Craig Manchester, Executive Vice President, Chief Operating Officer
Pamela Jones, Executive Vice President, Chief Investment Officer
Thomas Connelly, Senior Vice President, Chief Financial Officer
Douglas Tonokawa, Vice President of Finance, Chief Accounting Officer
SAN DIEGO
Lance Waite
PRESIDENT
ORANGE COUNTY
Chris Chambers
PRESIDENT
LA/INLAND EMPIRE
John Stanek
PRESIDENT
BAY AREA/VENTURA
Ed Galigher
PRESIDENT
NORTH BAY/SACRAMENTO
Mark Downie
PRESIDENT
WESTERN PACIFIC
NO. CALIF.
Michael McKissick
PRESIDENT
SO. CALIF./ARIZONA
Thomas Rielly
PRESIDENT
COLORADO
David Oyler
PRESIDENT
HAWAII
Michael Jones
PRESIDENT
WASHINGTON/OREGON
Matt Farris
PRESIDENT
SCHULER HOMES
11
<PAGE>
TRANSACTION OVERVIEW
--------------------------------------------------------------------------------
- Structure - Stock for stock merger of equals, fixed exchange ratio
- Consideration
- Western Pacific shareholders will receive approximately 20.1 million
shares of Class B stock having 0.5 votes per share but otherwise having
rights equivalent to existing stock (Class A) and will convert to Class
A upon Sale/Transfer
- Schuler has approximately 20.1 million shares of common stock currently
outstanding (pre-announcement)
- Accounting Treatment - Purchase accounting with Schuler as the accounting
acquiror
- Board Representation - Nine-member board
- Class A shareholders to elect majority of board
- Controlling shareholders committed to support transaction
- The Company will change its fiscal year end to March 31
- Closing expected in December, 2000 or early 2001
12
<PAGE>
STRONG PRO FORMA FINANCIAL PERFORMANCE
--------------------------------------------------------------------------------
PRO FORMA, ONE OF THE FASTEST GROWING AND LARGEST BUILDERS IN THE US
($ MILLIONS)
- Combined backlog of $449 million represents a 38% increase over
comparable 1999
PRO FORMA HOMEBUILDING REVENUE (1)
3-YR CAGR=58%
<TABLE>
<CAPTION>
1997 1998 1999 LTM
<S> <C> <C> <C> <C>
SCHULER $230 $283 $507 $613
WESTERN PACIFIC $193 $423 $551 $536
COMBINED $423 $706 $1,058 $1,149
</TABLE>
PRO FORMA CLOSINGS (1)
3-YR CAGR=35%
<TABLE>
<CAPTION>
1997 1998 1999 LTM
<S> <C> <C> <C> <C>
SCHULER 1,427 1,827 2,643 3,022
WESTERN PACIFIC 970 1,660 1,693 1,641
COMBINED 2,397 3,487 4,336 4,663
</TABLE>
(1) Schuler's financials based on 12 months ending 12/31. Western Pacific's
financials based on 12 months ending 3/31; numbers may not add up due to
rounding
13
<PAGE>
STRONG PRO FORMA FINANCIAL PERFORMANCE (CONT.)
--------------------------------------------------------------------------------
PRO FORMA, THE COMPANY EXPECTS TO MAINTAIN SOME OF THE HIGHEST MARGINS IN THE
INDUSTRY
($ MILLIONS)
- Combined LTM EBITDA margin of 14.6%
PRE-TAX EARNINGS (1)
3-YR CAGR=107%
<TABLE>
<CAPTION>
1997 1998 1999 LTM
<S> <C> <C> <C> <C>
SCHULER $10 $21 $42 $57
WESTERN PACIFIC $8 $21 $43 $41
COMBINED $18 $41 $85 $98
</TABLE>
PRO FORMA HOMEBUILDING EBITDA (1)
3-YR CAGR=78%
<TABLE>
<CAPTION>
1997 1998 1999 LTM
<S> <C> <C> <C> <C>
SCHULER $24 $38 $69 $89
WESTERN PACIFIC $25 $61 $83 $79
COMBINED $48 $98 $152 $168
</TABLE>
(1) Schuler's financials based on 12 months ending 12/31 and Western Pacific's
financials based on 12 months ending 3/31; numbers may not add up due to
rounding
14
<PAGE>
BALANCE SHEET DATA - AS OF JUNE 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
($ Millions) Schuler Homes Western Pacific
<S> <C> <C>
Cash and Equivalents $6.5 $11.4
Inventories 459.1 411.5
HOMEBUILDING DEBT:
Bank Debt 70.0 104.9
Senior notes 98.8 35.0
Other Debt 10.6 131.0
Convertible Debt 57.5 0.0
------ ------
Total Homebuilding Debt $236.9 $270.9
Minority Interest 2.2 11.8
Equity 221.8 118.4
------ ------
Total Capitalization $460.9 $401.1
====== ======
</TABLE>
15
<PAGE>
FINANCIAL IMPACT / STRATEGY
-------------------------------------------------------------------------------
- Doubles equity market capitalization
- Accretive to earnings
- Maintain the Company's credit discipline
- Reduce investment in long-term Hawaii land position
-Write-down of approximately $22 million, after tax in Q3 2000
THE COMPANY'S STRONG FINANCIAL POSITION PROVIDES OPPORTUNITIES
TO REDUCE COST OF CAPITAL
16
<PAGE>
OPERATIONAL STRATEGY / CULTURAL FIT
-------------------------------------------------------------------------------
- Continue to grow within existing markets and leverage existing brands and
local operations and expertise
- Retain experienced management team
- Integrate operations and corporate functions to maximize synergies
- Schuler and Western Pacific have proven acquisition integration
experience
- Continue conservative land acquisition policies
- Corporate approval of all land acquisitions
- Maximize return on investment
- Minimize risk profile of projects
- Decentralized operations with corporate controls
- Pursue opportunities to increase financial services penetration
17
<PAGE>
STRATEGIC RATIONALE
--------------------------------------------------------------------------------
- Creates "Top 15" builder in terms of revenue and closings
- Combined LTM revenues over $1.1 billion
- Combined LTM closings of 4,663
- Provides for significant expansion into the California market
- Leading market share positions in top Western US markets
- Doubles market capitalization and strengthens financial resources
- 40.2 million shares outstanding
- Immediately accretive to earnings (without synergies)
- Strong financial results for each company
- 3-year historical revenue growth of 58% on a combined basis
- Among the highest margins in the industry
- Backlog of $449 million, up 38% from 1999
- Strong land position positions company for future growth
- Over 27,000 lots controlled; 48% optioned
- Further enhances the depth and strength of management.
DOUBLES SIZE OF COMPANY AND CREATES A WELL-DIVERSIFIED WESTERN US BUILDER
18
<PAGE>
FORWARD LOOKING STATEMENTS
--------------------------------------------------------------------------------
Certain statements in this presentation may be "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995. Such statements
involve risks, uncertainties and other factors that may cause actual results to
differ materially from those which are anticipated. Such factors include, but
are not limited to, changes in general economic conditions, the market for homes
generally and in areas where the company has developments, the availability and
cost of land suitable for residential development, materials prices, labor
costs, interest rates, consumer confidence, competition, environmental factors
and government regulations affecting the Company's operations. See the Company's
Annual Report on Form 10-K for the year ended December 31, 1999 for further
discussion of these and other risks and uncertainties applicable to the
Company's business.
In connection with their proposed merger, Schuler Homes and Western Pacific will
file a Registration Statement with the Securities and Exchange Commission, and a
Joint Proxy Statement/Prospectus will be included in that Registration
Statement. Other materials relating to the merger also will be filed with the
Securities and Exchange Commission. INVESTORS ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS, REGISTRATION STATEMENT AND OTHER RELEVANT DOCUMENTS TO BE
FILED WITH THE SEC, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Materials filed with the SEC will be available electronically, without
charge, at an internet site maintained by the SEC. The address of that site
is http://www.sec.gov. In addition, the Joint Proxy Statement/Prospectus
filed with the SEC by Schuler Homes will be mailed to their shareholders and
may be obtained without charge upon request to Schuler Homes, Inc., attention
Pamela S. Jones, (808) 521-5661.
19
