J. M. Peters Reports Net Income of $3.8 Million in 3rd Quarter

J. M. Peters Co., citing sharply reduced income taxes, a surge in sales and higher operating margins, reported net income of $3.8 million for the third quarter of its 1988 fiscal year, more than four times the $803,000 reported a year earlier.

The Newport Beach home builder’s revenue for the three months ended Nov. 30 rose 62.5% to $64.5 million from $39.7 million.

For the first nine months of the fiscal year, Peters reported net income of $6.3 million, more than double the $2.8 million posted for the same period a year earlier. Revenue of $139 million for the period was up 3.7% from 1987.

The company said it closed the sale of 253 homes in the third quarter, a 52% increase from 166 closings reported a year earlier. Peters, which specializes in so-called move-up homes in the $250,000 to $350,000 price range, said it closed 563 sales in the first nine months, up 9.3% from 515 homes sold in the same period a year earlier.

The company said it was able to increase its selling prices “due to demand,” which boosted the average price of homes it sold in the third quarter to $243,000 from $230,000 a year earlier.

Founded by builder J. M. Peters, the company was acquired by a unit of Dallas-based Southmark Corp. in 1985 and went public in 1987 with an offering of 1.75 million shares. Southmark continues to own 87.3% of the company.

--JOHN O’DELL