J.M. Peters Posts Record Profit, With 4-Fold Jump From Fiscal ’87

J.M. Peters Co., a Newport Beach home builder, Tuesday reported record earnings of $21.4 million for the fiscal year ended Feb. 29, up more than fourfold from earnings of $5.2 million last year.

Fourth-quarter earnings totaled $15.1 million, up more than sixfold from the $2.4 million that Peters reported last year.

Revenues for the year were $284 million, up 31% from $217 million last year.

Fourth-quarter revenues were $145 million, up 75% from $83 million last year.

Peters said continuing strong demand for more expensive homes and decreased marketing costs boosted earnings and sales.

“With demand increasing, our need to put out big marketing campaigns for our projects is a lot less,” said Brian K. Theriot, the company’s director of investor relations.

The company said gross profit margins on home sales increased from 17.7% in 1986 to 20.2% in 1987, adding that it expected home sales to continue strong in Southern California this year.

While the company opposes pending slow-growth initiatives in several counties, including Orange, the initiatives, if passed, “could increase our margins,” Theriot said, possibly by driving home prices up.

MDC Holdings Inc., a Denver home builder, said in February that it had agreed to buy the 87.3% of Peters stock that is not traded publicly for $100 million in mortgage notes from Southmark Corp. of Dallas.

The deal closes March 31. MDC already owns Richmond American Homes, a major builder in Southern California.

No management changes are planned, Theriot said.