In a preliminary earnings release for the three-month period ending Sept. 30, Dublin, Ohio-based Dominion Homes reported more sliding numbers, the latest in an ongoing series of financial hardships for the company, which has had falling revenues since 2005, the industry's best-ever year. The company did not disclose profit and loss numbers in its 8-K filing with the Securities and Exchange Commission.
Throughout the company's 46 active communities in the Ohio and Kentucky markets, Dominion reported only 153 sales at a value of $29.6 million, during the third quarter. Sales numbers released are down 27% from the same period last year.
The company delivered 197 homes during the quarter, representing a 41% drop over the number of deliveries during the same period a year ago. The backlog as of Sept. 30 was 275 sales contracts with a sales value of $57.8 million, compared to 419 sales contracts with a sales value of $84.6 million. For the same period, the average sales price of homes in backlog was approximately $210,300 compared to $202,000, reflecting a sales mix more weighted toward homes that are more expensive.
On the last day of the quarter, the company announced yet another renegotiation of its debt after disclosing that it had tripped covenants on one of its credit agreement covenants related to its profitability and net worth.
In an SEC filing on Sept. 29, Dominion said the lenders, including Silver Oak Capital, had agreed to increase the amount they lend the company under a loan secured by mortgages on land it owns. "Certain unwaived events of default have occurred and are continuing to occur under the credit agreement," the company said in the statement.
Full earnings results are expected to be released later this month.