Item 1. Financial Statements
<TABLE>
<CAPTION>
CROSSMANN COMMUNITIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<S> <C> <C>
September 30, 1997 December 31, 1996
-------------------- ------------------
(unaudited)
--------------------
ASSETS
Cash and cash equivalents $ 148,985 $ 100,000
Retainages 624,485 1,151,700
Real estate inventories 157,024,965 113,202,107
Furniture and equipment, net 3,202,929 2,919,333
Investments in joint ventures 5,135,146 3,404,742
Goodwill, net 3,468,824 2,737,328
Other assets 6,421,148 4,821,259
-------------------- ------------------
Total assets $ 176,026,482 $ 128,336,469
==================== ==================
Liabilities and shareholders' equity
Accounts payable $ 19,689,178 $ 14,110,634
Accrued expenses and other liabilities 7,659,849 5,250,256
Notes payable 46,502,395 49,326,220
-------------------- ------------------
Total liabilities 73,851,422 68,687,110
Commitments and contingencies
Shareholders' equity:
Common shares 55,076,994 24,400,903
Retained earnings 47,098,066 35,248,456
-------------------- ------------------
Total shareholders' equity 102,175,060 59,649,359
-------------------- ------------------
Total liabilities and shareholders' equity $ 176,026,482 $ 128,336,469
==================== ==================
<FN>
See accompanying notes.
</TABLE>
<TABLE>
<CAPTION>
CROSSMANN COMMUNITIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30,
NINE MONTHS ENDED SEPTEMBER 30,
<S> <C> <C> <C> <C>
1997 1996 1997 1996
------------ ------------ ------------- -------------
Sales of residential real estate $89,969,648 $66,955,250 $206,329,777 $149,764,371
Cost of residential real estate sold 71,387,248 52,648,888 164,025,835 118,494,310
------------ ------------ ------------- -------------
Gross profit 18,582,400 14,306,362 42,303,942 31,270,061
Selling, general and
administrative 8,663,860 6,130,357 22,605,602 16,477,807
------------ ------------ ------------- -------------
Income from operations 9,918,540 8,176,005 19,698,340 14,792,254
Other income, net 319,816 162,686 870,116 587,123
Interest expense (144,688) (286,869) (733,938) (667,140)
------------ ------------ ------------- -------------
175,128 (124,183) 136,178 (80,017)
------------ ------------ ------------- -------------
Income before income taxes 10,093,668 8,051,822 19,834,518 14,712,237
Income taxes 4,037,468 3,196,125 7,984,938 5,862,975
------------ ------------ ------------- -------------
Net income $ 6,056,200 $ 4,855,697 $ 11,849,580 $ 8,849,262
============ ============ ============= =============
Weighted average number of
common shares outstanding 9,537,205 9,158,562 9,310,878 9,147,006
============ ============ ============= =============
Net income per common share $ .64 $ .53 $ 1.27 $ .97
- ------------------------------------ ============ ============ ============= =============
<FN>
See accompanying notes.
</TABLE>
<TABLE>
<CAPTION>
CROSSMANN COMMUNITIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<S> <C> <C>
Nine Months Nine Months
Ended September 30, Ended September 30,
--------------------- ---------------------
1997 1996
--------------------- ---------------------
Operating activities:
Net Income $ 11,849,580 $ 8,849,262
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation 459,214 381,472
Amortization (326,017) 125,528
Gain on sale of equipment (2,651) (4,385)
Cash provided (used) by changes in:
Retainages 531,715 (364,909)
Amounts due from related parties (13,363) (517,509)
Real estate inventories (35,395,493) (43,991,267)
Other assets (1,503,699) (1,450,271)
Accounts payable 4,318,271 6,206,228
Amounts due to related parties -0- 339,749
Accrued expenses and other liabilities 1,972,721 3,448,106
--------------------- ---------------------
Net cash flows from operating activities (18,109,722) (26,977,996)
Investing activities:
Purchases of furniture and equipment (691,423) (1,940,500)
Proceeds from disposition of furniture and equipment 2,651 7,600
Investments in joint ventures (1,730,404) (413,822)
Business Acquisitions 623,825 -0-
Net cash used by investing activities (1,795,351) (2,346,722)
Financing activities:
Proceeds from bank borrowing 108,835,644 74,896,000
Principal payments on bank borrowing (118,235,000) (50,204,000)
Payments on notes and long-term debt (456,011) (472,321)
Proceeds from sale of common shares 29,809,425 31,000
--------------------- ---------------------
Net cash provided by financing activities 19,954,058 24,250,679
--------------------- ---------------------
Net decrease in cash and cash equivalents 48,985 (5,074,039)
Cash and cash equivalents at beginning of period 100,000 5,232,950
--------------------- ---------------------
Cash and cash equivalents at end of period $ 148,985 $ 158,911
- ---------------------------------------------------- ===================== =====================
<FN>
See accompanying notes.
</TABLE>
SIGNATURES
Pursuant to the requirements of Sections 13 or 15(d) of the Securities
and Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
CROSSMANN COMMUNITIES, INC.
/s/Jennifer A. Holihen
Jennifer A. Holihen
Director, Chief Financial Officer;
Treasurer; Secretary;
(Principal Financial and Accounting Officer)
Dated: November 26, 1997
