-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ug1XuyvzQn5kOmZFzTZhCUo5jDXvmhfotat+6JRDxc2CeCo5MQrkJspVem8Tx9A3 O0Kpo/Ja55/qgOEjajAQBw== 0000783603-03-000028.txt : 20030807 0000783603-03-000028.hdr.sgml : 20030807 20030807155121 ACCESSION NUMBER: 0000783603-03-000028 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030807 ITEM INFORMATION: FILED AS OF DATE: 20030807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN SAFETY INSURANCE GROUP LTD CENTRAL INDEX KEY: 0000783603 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14795 FILM NUMBER: 03828482 BUSINESS ADDRESS: STREET 1: 1845 THE EXCHANGE CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 4412955688 MAIL ADDRESS: STREET 1: 1845 THE EXCHANGE CITY: ATLANTA STATE: GA ZIP: 30339 8-K 1 form8k.htm 8-7-03 8-k

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES
EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 7, 2003

AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
(Exact name of Registrant as specified in its charter)


     Bermuda                                             1-14795                        Not Applicable    
(State or Other Jurisdiction                     (Commission                        (IRS Employer
of Incorporation)                                File Number)                       Identification No.)


                                                           44 Church Street
                                                            P.O. Box HM2064
                                                       Hamilton HM HX, Bermuda 

                                               (Address of Principal Executive Offices)


Registrant's telephone number, including area code:          (441) 295-5688

__________________________________________________
(Former Name or Former Address, if Changed Since Last Report)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

99.1 Press Release of American Safety Insurance Group, Ltd. issued May 7, 2003.

99.2 Press Release of American Safety Insurance Holdings, Ltd. issued August 5, 2003.

Item 12. Results of Operations and Financial Condition.

The Registrant issued a press release reporting its financial results for the first quarter ended March 31, 2003. A copy of the press release is hereby attached as Exhibit 99.1 and incorporated herein by reference.

The Registrant issued a press release reporting its financial results for the second quarter ended June 30, 2003. A copy of the press release is hereby attached as Exhibit 99.2 and incorporated herein by reference.

The information set forth under this Item 12 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

-2-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                                            AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
                                                              (Registrant)


Dated:        August 7, 2003                By:   /s/ Stephen R. Crim              
                                                      Stephen R. Crim
                                                      President and Chief Executive Officer

-3-

EXHIBIT INDEX

99.1 Press Release of American Safety Insurance Group, Ltd. issued May 7, 2003

99.2 Press Release of American Safety Insurance Holdings, Ltd. issued August 5, 2003.

EX-99.1 2 exhibit99a.htm PRESS RELEASE 1 8-k

American Safety Insurance Group, Ltd. Reports

First Quarter 2003 Results

Hamilton, Bermuda, May 7, 2003 -- American Safety Insurance Group, Ltd. (NYSE: ASI) today announced results for the first quarter ended March 31, 2003.

Net premiums earned for the first quarter of 2003 increased 53% to $21.3 million over the same quarter of 2002. This increase is attributable to increases in the Company’s core environmental, excess and surplus, and program business net premiums earned. Total revenues for the first quarter of 2003 decreased 18% to $28.3 million compared to the same quarter of 2002 as a result of lower real estate revenues from the development of the Harbour Village Golf & Yacht Club in Ponce Inlet, Florida. Real estate revenues decreased to $5.4 million in the first quarter of 2003 as compared to $19.0 million during the first quarter of 2002 as a result of fewer condominium unit closings at Harbour Village. Net profit for the first quarter of 2003 was $1.2 million or $0.25 per diluted share, as compared with net profit of $2.0 million or $0.42 per diluted share for the first quarter of 2002. The decrease was attributable to a net loss of $457,000 from real estate operations due to a reduced number of condominium unit closings at Harbour Village.

The Company’s net earnings are detailed as follows (in thousands):

                                                     Quarter Ended                 Quarter Ended
                                                    March 31, 2003                 March 31, 2002

              Insurance Operations                      $  1,623                       $   604
              Real Estate Operations                        (457)                        1,463
              Other                                           54                           (22)
              Net Earnings                              $  1,220                       $ 2,045

The Company’s book value per share at March 31, 2003 increased 3% to $13.51 from $13.18 at December 31, 2002. This increase in per share book value is primarily attributable to the Company’s profit for the quarter. Commenting on the results, Stephen R. Crim, President and Chief Executive Officer of American Safety Insurance Group, Ltd., said, “We are extremely pleased with the continued growth and profitability from our core insurance business lines. Gross written premiums were $45 million for the first quarter of 2003, which is a 17% increase over the same quarter of 2002. This growth was fueled by premium and rate increases in our core environmental and excess and surplus lines of business. The loss ratio for the first quarter of 2003 was 57% as compared to 65% for the same period in 2002. The continued favorable pricing and profitability trends also resulted in a significant improvement in net earnings from our insurance operations, which increased by 169% over the first quarter of 2002. We expect insurance rates in our core lines of business to increase during 2003, which should result in sustained underwriting profits for the balance of the year. At Harbour Village, we began closing units in Phase 2 in April, and expect the project to return to profitability during the second quarter of 2003.”

The Company previously reported that one of its former reinsurers, Berkley Insurance Company, has disputed its obligations under several reinsurance treaties. In April 2002, the Company demanded arbitration against the reinsurer to collect the amounts owed. The arbitration panel has scheduled a hearing later this month.

A conference call to discuss first quarter of 2003 results is scheduled for Thursday, May 8, at 11:00 a.m. (Eastern Time), which will be broadcast through the Investor Broadcast Network’s Vcall website at http://www.vcall.com or the Company’s website at http://www.americansafetyinsurance.com. A replay will be available on the Company’s website. American Safety Insurance Group, Ltd. is a specialty insurance holding company, which, through its subsidiaries, develops, underwrites, manages and markets primary casualty insurance and reinsurance programs in the alternative insurance market for environmental risks and other specialty risks. The Company is also the owner/developer of the Harbour Village Golf & Yacht Club, a residential condominium, marina, par 3 golf course and beach club development in Ponce Inlet, Florida. Additional information about American Safety can be found at “http://www.americansafetyinsurance.com”.

This press release contains forward-looking statements, including the Company’s outlook for 2003. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, including future insurance claims and losses, and the Company’s expectations with respect to the outcome of the Principal Management acquisition rescission litigation, the arbitration of the Berkley reinsurance recoverables dispute, and the future profitability and the value of the Harbour Village real estate development project. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors, including competitive conditions in the insurance industry, levels of new and renewal insurance business, unpredictable developments in loss trends, adequacy and changes in loss reserves, timing or collectibility of reinsurance recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, potential adverse decisions in court and arbitration proceedings, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village project, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, zoning, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips, and changes in local and national levels of general business activity and economic conditions. For additional factors, which could influence the results of the Company’s operating and financial performance, see the Company’s filings with the Securities and Exchange Commission.

                                                                                    Contact:  Fred J. Pinckney
                                                                            Investor Relations/General Counsel
                                                                                                (770) 916-1908

-2-


                              AMERICAN SAFETY INSURANCE GROUP, LTD. AND SUBSIDIARIES
                                         Financial and Operating Highlights

                                                                           Three Months Ended
                                                                               March 31,

                                                                    2003                       2002

INCOME STATEMENT DATA:

Revenues:
  Direct and assumed premiums earned                        $  40,471,438                 $  34,093,798

  Ceded premiums earned                                       (19,179,918)                  (20,216,831)
     Net premiums earned                                       21,291,520                    13,876,967

  Net investment income                                         1,114,415                       975,557
  Management fees from related party                              277,903                       417,427
  Net realized gains                                              150,715                        82,247
  Real estate income                                            5,429,847                    19,038,740

  Other income                                                     14,394                       116,933
     Total revenues                                          $ 28,278,794                  $ 34,507,871

Expenses:                                                                                   $ 8,969,141
  Losses and loss adjustment expenses                        $ 12,094,062
  Acquisition expenses                                          4,156,986                     2,376,027
  Payroll and related expenses                                  2,221,912                     2,101,748
  Real estate expenses                                          6,161,641                    16,695,328
  Other expenses                                                2,345,756                     1,135,589

  Expense due to rescission                                        83,559                       210,748
     Total expenses                                            27,063,916                    31,488,581
     Earnings before income taxes                               1,214,878                     3,019,290
Income taxes (benefit)                                             (5,475)                      973,759
  Net earnings (benefit)                                     $  1,220,353                   $ 2,045,531

Net earnings (loss) per share:
  Basic                                                       $      0.26                    $     0.43
                                                              ===========                    ==========
  Diluted                                                     $      0.25                    $     0.42
                                                              ===========                    ==========

Average number of shares outstanding:
  Basic                                                         4,739,888                     4,704,505
                                                              ===========                    ==========
  Diluted                                                       4,796,772                     4,863,370
                                                              ===========                    ==========

GAAP combined ratio                                                 85.4%                          86.5%
                                                              ===========                    ==========

                                                             March 31, 2003             December 31, 2002
BALANCE SHEET DATA
Total investments excluding real estate                     $ 121,097,234                 $ 104,416,529
Total assets                                                  403,361,450                   365,407,338
Unpaid losses and loss adjustment expenses                    175,759,657                   160,628,579
Total liabilities                                             339,340,487                   302,955,489
Total shareholders' equity                                     64,020,963                    62,451,849

Book value per share                                         $      13.51                 $       13.18
                                                              ===========                    ==========

-3-


                                                                            Harbour Village Development Status
                                                                          (000)s except references to Condo Units

                                                                 Phase 1                               Phase 2                 Phase 3
                                                                       Townhouses                 The            The
                                                  Marina           Oak                           Links          Links        Fisherman's        Total
                                                  Condos         Hammock       Riverwalk         North          South          Harbour         Condos        Boat Slips          Total

                  3/31/2003

Planned Number of Condo Units and Boat Slips                                                                                  (Note 3)
                                                 248            18             28              188            188                             670             142              812
Condo Units and Boat Slips under Contract        248            15             26              173            144                             606             142              748
Value of Pre-sale Contracts (Note 1)          62,892         6,696         10,085           43,548         39,018                         162,239          13,073          175,312
Number of Closed Units                           248             9             15                -              -                -            272             128              400
Number of Buildings                                8             4              6                4              4                1             27               -               27
Number of Buildings Complete by Task
  Building Foundation                              8             4              6                4              4                -
  Vertical Building Completed                      8             4              6                4              1                -
  Interior Finish Completed                        8             4              5                2              -                -
  Certificate of Occupancy Received                8             4              5                -              -                -

             Actual 3/31/2003 YTD

Units Closed                                       -             6              4                -                                             10               7               17

Revenue Recognized                               194         2,713          1,662                -                                          4,569             796            5,365
Other Revenue                                                                                                                                                                   65

  Total Revenue                                                                                                                                                              5,430

Gross Profit (Loss) Recognized                     7           (18)           (55)               -                                            (66)            359              293

Other Expense (Income) Items (Note 2)                                                                                                                                        1,025
Pre-Tax Profit (Loss)                                                                                                                                                         (732)

       Outlook For 2nd Quarter of 2003

Units Closed                                       -             4              4               55                                              63              5               68

Revenue Recognized                               157         1,661          1,592           12,873                                          16,283            621           16,904
Other Revenue                                                                                                                                                                   60

  Total Revenue                                                                                                                                                             16,964

Gross Profit Recognized                           19             -              -            1,538                                           1,557            264            1,821

Other Expense (Income) Items                                                                                                                                                 1,247
Pre-Tax Profit                                                                                                                                                                 574

Note 1 - No assurance can be given that purchasers under binding pre-sale contracts with deposits will close each contemplated transaction .

Note 2 - Other includes net brokerage commissions, advertising, promotion, and other general and administrative costs. These items are not allocated to specific buildings.

Note 3 - As a result of the settlement of material zoning litigation brought by the Town of Ponce Inlet, Florida, the Company, among other matters, will reduce the Fisherman’s Harbour building to a 2 story commercial center, rather than a mixed use building with 70 units.

The projected results contained above for unit closings, revenue, gross profit, fixed costs and pre-tax profit are forward looking statements. With respect to the Company’s development of the Harbour Village property, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips and changes in local and national levels of general business activity and economic conditions.

EX-99.2 3 exhibit99b.htm PRESS RELEASE 2 8-k

American Safety Insurance Holdings, Ltd. Reports

Increase in Net Earnings for Second Quarter

Hamilton, Bermuda, August 5, 2003 -- American Safety Insurance Holdings, Ltd. (NYSE: ASI) today reported second quarter ended June 30, 2003 net earnings increased 106% to $3.8 million, or $0.79 per diluted share, as compared to $1.9 million, or $0.38 per diluted share in the second quarter of 2002. Second quarter net earnings are detailed as follows (in thousands):

                                                     Quarter Ended                 Quarter Ended
                                                     June 30, 2003                 June 30, 2002

              Insurance Operations                        $1,602                        $  994
              Real Estate Operations                         283                         1,419
              Other,    including   realized
              gains and (losses)                           1,929                          (560)
              Net Earnings                                $3,814                        $1,853

The increase in net earnings was attributable to strong underwriting performance and net realized gains from the sale of investments of $2 million in the second quarter of 2003. The net earnings for the second quarter of 2002 included net realized investment losses of $477,000. Net premiums earned for the second quarter of 2003 increased 56% to $23 million from the same quarter of 2002. This increase is attributable to a 77% increase in the Company's core environmental, excess and surplus, and program business net premiums earned. Total revenues for the second quarter of 2003 increased 48% to $44.2 million as compared to the same quarter of 2002 as a result of increased net earned premiums, investment income, real estate income, and realized gains from the sale of investments. Net cash flow generated from operations increased to $23 million for the second quarter of 2003 from $5.1 million in the same quarter of 2002.

The Company's book value per share at June 30, 2003 increased 8% to $14.25 from $13.18 at December 31, 2002. This increase in per share book value is primarily attributable to the Company's profit and changes in unrealized gains on investments during the six months ended June 30, 2003.

Net earnings for the first six months of 2003 were $5.0 million, or $1.05 per diluted share, an increase of 29% as compared to $3.9 million, or $0.80 per diluted share for the same period of 2002. Six month net earnings are detailed as follows (in thousands):

                                                  Six Months Ended            Six Months Ended
                                                   June 30, 2003                June 30, 2002

              Insurance Operations                     $3,225                        $1,599
              Real Estate Operations                     (174)                        2,882
              Other, including realized
              gains and (losses)                        1,983                          (582)
              Net Earnings                             $5,034                        $3,899

The increase in net earnings was attributable to strong underwriting performance and net realized gains from the sale of investments of $2.1 million for the six months ended June 30, 2003. The net earnings for the first six months of 2002 included net realized investment losses of $393,000. Net premiums earned for the six months ended June 30, 2003 increased 55% to $44 million from the same period of 2002. This increase was attributable to an 81% increase in net premiums earned in the Company’s core lines of business. Total revenues for the six months ended June 30, 2003 increased 12% to $72.5 million as compared to the same period of 2002 as a result of increased net premiums earned, investment income, and realized gains from the sale of investments. Net cash flow from operations increased to $32 million for the six months ended June 30, 2003 from $6.2 million in the same period of 2002.

Commenting on the results, Stephen R. Crim, President and Chief Executive Officer of American Safety Insurance Holdings, Ltd., said, “Solid execution in our core insurance business lines contributed to the Company’s strong cash flow and insurance earnings, as well as book value growth. Pricing and profitability trends continue to be favorable in our targeted markets. Looking ahead, we believe the insurance marketplace is attractive for specialty niche insurers like American Safety Insurance. The recent strengthening of our capital base from an $8 million trust preferred offering has supported the continued growth of our insurance business, and we expect that our underwriting profits will continue for the balance of the year.” A conference call to discuss second quarter of 2003 results is scheduled for Wednesday, August 6, at 11:00 a.m. (Eastern Time), which will be broadcast through the Investor Broadcast Network’s Vcall website at http://www.vcall.com or the Company’s website at http://www.americansafetyinsurance.com. A replay will be available on the Company’s website. American Safety Insurance Holdings, Ltd. is a specialty insurance holding company which, through its subsidiaries, provides innovative insurance solutions in the alternative insurance market for environmental remediation, contracting and other specialty risks. Additional information about American Safety Insurance can be found at “http://www.americansafetyinsurance.com”

This press release contains forward-looking statements, including the Company’s outlook for 2003. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, including future insurance claims and losses, and the Company’s expectations with respect to the outcome of the Principal Management acquisition rescission litigation, and the future profitability and the value of the Harbour Village real estate development project. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors, including competitive conditions in the insurance industry, levels of new and renewal insurance business, unpredictable developments in loss trends, adequacy and changes in loss reserves, timing or collectibility of reinsurance recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, potential adverse decisions in court and arbitration proceedings, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village project, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, zoning, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips, and changes in local and national levels of general business activity and economic conditions. For additional factors, which could influence the results of the Company’s operating and financial performance, see the Company’s filings with the Securities and Exchange Commission.

Contacts:
American Safety Insurance Holdings, Ltd                           Cameron Associates
Fred J. Pinckney                                                  Kevin McGrath
Investor Relations/General Counsel                                (212) 245 4577
(770) 916-1908

-2-

                                       AMERICAN SAFETY INSURANCE HOLDINGS, LTD. AND SUBSIDIARIES
                                                   Financial and Operating Highlights

                                                                 Three Months Ended                        Six Months Ended                                               Six Months Ended
                                                                      June 30,                                 June 30,                                                       June 31,
                                                              2003                 2002                2003                2002
INCOME STATEMENT DATA:
Revenues:
  Direct and assumed premiums earned                     $  41,582,706          $  33,130,159     $  82,054,144       $  67,223,957

  Ceded premiums earned                                    (18,836,567)           (18,559,548)      (38,016,485)        (38,776,379)
     Net premiums earned                                    22,746,139             14,570,611        44,037,659          28,447,578

  Net investment income                                      1,144,822          $     899,318     $   2,259,237       $   1,874,875
  Management fees from related party                           244,249                 75,754           522,152             493,181
  Net realized gains (losses)                                2,888,968               (547,949)        3,039,683            (465,702)
  Real estate income                                        17,167,373             14,896,921        22,597,220          33,935,661

  Other income                                                  16,879                 74,217            31,273             191,150
     Total revenues                                       $ 44,208,430           $ 29,968,872     $  72,487,224       $  64,476,743

Expenses:
  Losses and loss adjustment expenses                     $ 13,883,281            $ 8,561,371     $  25,977,343       $  17,530,512
  Acquisition expenses                                       4,278,628              2,308,560         8,435,614           4,684,587
  Payroll and related expenses                               2,099,339              2,202,352         4,321,251           4,304,100
  Real estate expenses                                      16,714,993             12,459,152        22,876,634          29,154,480
  Other expenses                                             1,754,587              1,559,663         4,100,343           2,695,252

  Expense due to rescission                                     60,953                142,844           144,512             353,592
     Total expenses                                         38,791,781             27,233,942        65,855,697          58,722,523
     Earnings before income taxes                            5,416,649              2,734,930         6,631,527           5,754,220
Income taxes                                                 1,602,733                881,534         1,597,258           1,855,293
  Net earnings                                            $  3,813,916       $      1,853,396     $   5,034,269       $   3,898,927
====================================================== ==================== =================== =================== ====================

Net earnings per share:
  Basic                                                  $          0.80          $     0.39    $           1.06    $           0.83
====================================================== ==================== =================== =================== ====================
  Diluted                                                $          0.79          $     0.38    $           1.05    $           0.80
====================================================== ==================== =================== =================== ====================
Average number of shares outstanding:
  Basic                                                      4,739,888              4,743,803         4,739,888           4,724,263
====================================================== ==================== =================== =================== ====================
  Diluted                                                    4,814,216              4,882,899         4,802,124           4,875,679
====================================================== ==================== =================== =================== ====================

GAAP combined ratio                                              86.6%                   82.5%               86.0%              84.5%
====================================================== ==================== =================== =================== ====================

BALANCE SHEET DATA                                                                                June 30, 2003      December 31, 2002

Total investments including
  receivables for securities                                                                      $ 132,341,596      $ 104,416,529
  sold (excluding real estate)
Total assets                                                                                        416,010,268        365,407,338
Unpaid losses and loss adjustment expenses                                                          185,982,249        160,628,579
Total liabilities                                                                                   348,456,125        302,955,489
Total shareholders' equity                                                                           67,554,143         62,451,849

Book value per share                                                                                   $  14.25       $      13.18


                                                                           Harbour Village Development Status
                                                                         (000)s except references to Condo Units
                                                                                       (Unaudited)

                                                                               Phase 1                                Phase 2
                                                           -------------------------------------------------------------------------------
                                                                                     Townhouses                  The            The
                                                                          ---------------------------------
                                                               Marina            Oak                            Links          Links           Total
                         6/30/2003                             Condos          Hammock        Riverwalk         North          South          Condos        Boat Slips         Total
- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Planned Number of Condo Units and Boat Slips                     248            18              28              188            188             670             142             812
Condo Units and Boat Slips under Contract                        248            15              26              173            156             618             142             760
Value of Pre-sale Contracts (Note 1)                          62,892         6,696          10,081           43,525         42,984         166,178          13,089         179,267
Number of Buildings                                                8             4               6                4              4              26

Number of Buildings Complete by Task
  Building Foundation                                              8             4               6                4              4
  Vertical Building Completed                                      8             4               6                4              2
  Interior Finish Completed                                        8             4               5                2              -
  Certificate of Occupancy Received                                8             4               5                2              -

              Outlook For 3rd Quarter of 2003
- ------------------------------------------------------------
Units Closed                                                       -             1               3               56                             60               3               63

Revenue Recognized                                                31           555           1,361           13,418                         15,365             328           15,693
Other Revenue                                                                                                                                                                   100

  Total Revenue                                                                                                                                                              15,793

Gross Profit Recognized                                            3             1              27             1,811                         1,842             139            1,981

Other Expense (Income) Items                                                                                                                                                  1,507
Pre-Tax Profit                                                                                                                                                                  474

                    2nd Quarter Actual
- ------------------------------------------------------------
Units Closed                                                       -             4               4                59             -              67                5              72

Revenue Recognized                                                71         1,736           1,439            13,182             -          16,428              563          16,991
Other Revenue                                                                                                                                                                   176

  Total Revenue                                                                                                                                                              17,167

Gross Profit Recognized                                          (27)         (131)            (24)            1,625             -           1,443              261           1,704

Other Expense (Income) Items                                                                                                                                                  1,252
Pre-Tax Profit                                                                                                                                                                  452