Mixed news from big LV homebuilder

Monday, Oct. 25, 1999 | 12:20 p.m.

Del Webb Corp. of Phoenix, operator of two Sun City communities in Las Vegas, recorded a 64 percent increase in quarterly earnings, but warned that new orders are beginning to slow down.

The company reported net income of $13.8 million, or 74 cents per share, for the quarter ending Sept. 30, up from net income of $8.4 million, or 45 cents per share, in the year-ago quarter. Revenues rose 54 percent to $413.3 million.

Del Webb said the higher earnings were driven by a 32 percent increase in home closings during the quarter, and noted that its backlog of homes -- homes under contract, but not yet delivered -- has reached a record $1.04 billion.

However, the company's net new orders declined 5.5 percent for the quarter, to 1,692 units. Del Webb said the year-ago quarter was driven in part by sales from the newly-opened Anthem Las Vegas, making it difficult for the company to compare it to this year's performance. In addition, the company noted that the sell-out of Sun City Summerlin makes it difficult to assess its sales trends in Las Vegas.

"Las Vegas has proven its vitality as a retirement destination and our active adult operations in Nevada remain strong," said Del Webb Chief Financial Officer John Spencer.

The company also noted it is currently selling off "non-strategic land holdings" in Las Vegas and Phoenix in an effort to improve cash flow and efficiency.

Del Webb operates 12 adult retirement communities in Arizona, Nevada, California, Florida, Texas, South Carolina and Illinois.