BENSALEM, Pa., May 14 /PRNewswire-FirstCall/ -- Orleans Homebuilders, Inc. is a residential homebuilder with operations in Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina.
This press release reflects a reclassification to information contained in our May 12, 2008 press release, which was furnished to the Securities and Exchange Commission as an exhibit to a report on Form 8-K filed on that date. The Condensed Consolidated Income Statements for the three and nine months ended March 31, 2008 have been revised to reflect a reclassification of tax expense between continuing operations and discontinued operations in the amount of $8,554,000. As previously reported, the Company recorded a valuation allowance of $43,544,000 against its net deferred tax assets in the quarter ended March 31, 2008. This amount has not changed; however, as a result of recording the valuation allowance for the quarter ended March 31, 2008, the total tax provision recognized by the Company was allocated between continuing and discontinued operations resulting in an additional charge to income tax expense of $8,554,000 related to discontinued operations and a corresponding reduction to the income tax expense from continuing operations of an equal amount, thereby reducing the income tax charge to continuing operations from $35,541,000 to $26,987,000. Accordingly, there has been no change to net loss or adjusted net loss from continuing operations reported in our May 12, 2008 press release.
The Form 10-Q filed on May 12, 2008 already reflects this reclassification.
The following table shows the changes to the financial information in the previously issued May 12, 2008 press release:
Three Months Ended Nine Months Ended
March 31, March 31,
2008 2008 2008 2008
May 12 Revised May 12 Revised
Selected Financial Information Release Release Release Release
-----------------------------------------
(dollars in thousands)
Income tax expense - continuing
operations $35,541 $26,987 $11,012 $2,458
Income tax (benefit) expense -
discontinued operations $(50) $8,504 $(8,554) $-
Loss from continuing operations $(55,665) $(47,111) $(96,035) $(87,481)
Loss from discontinued
operations, net of taxes (80) (8,634) (13,150) (21,704)
-----------------------------------------
Net loss $(55,745) $(55,745) $(109,185) $(109,185)
=========================================
Basic / diluted loss per share
Continuing operations $(3.01) $(2.54) $(5.19) $(4.73)
Discontinued operations - (0.47) (0.71) (1.17)
-----------------------------------------
Net loss $(3.01) $(3.01) $(5.90) $(5.90)
=========================================
About Orleans Homebuilders, Inc.
Orleans Homebuilders, Inc. develops, builds and markets high-quality single-family homes, townhouses and condominiums. The Company serves a broad customer base including luxury, move-up, empty nester, active adult and first- time homebuyers. The Company currently operates in the following eleven distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. To learn more about Orleans Homebuilders, please visit http://www.orleanshomes.com/.
Orleans Homebuilders, Inc. and Subsidiaries
Condensed Consolidated Statements of
Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2008 2007 2008 2007
-------- -------- -------- --------
Earned revenues
Residential properties $109,018 $128,886 $372,865 $443,830
Land sales and other income 4,276 17,108 18,248 24,394
-------- -------- -------- --------
113,294 145,994 391,113 468,224
-------- -------- -------- --------
Costs and expenses
Residential properties 110,908 149,123 361,286 415,763
Land sales and other expense 3,201 17,134 52,678 22,250
Selling, general and
administrative 19,309 33,360 62,172 88,802
Impairment of goodwill - 16,334 - 16,334
Interest, net - - - -
-------- -------- -------- --------
133,418 215,951 476,136 543,149
-------- -------- -------- --------
Loss from continuing
operations before income taxes (20,124) (69,957) (85,023) (74,925)
Income tax expense (benefit) 26,987 (27,263) 2,458 (29,244)
-------- -------- -------- --------
Loss from continuing operations (47,111) (42,694) (87,481) (45,681)
Loss from discontinued -------- -------- -------- --------
operations, net of taxes (8,634) (9,201) (21,704) (9,839)
-------- -------- -------- --------
Net loss $(55,745) $(51,895) $(109,185) $(55,520)
======== ======== ======== ========
Basic / diluted loss per share
Continuing operations $(2.54) $(2.31) $(4.73) $(2.48)
Discontinued operations $(0.47) $(0.50) $(1.17) $(0.53)
-------- -------- -------- --------
Net loss $(3.01) $(2.81) $(5.90) $(3.01)
Basic / diluted weighted
average shares outstanding 18,520 18,491 18,508 18,443
-------- -------- -------- --------
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