Free Motion for Summary Judgment - District Court of Arizona - Arizona

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22 2 2 Case 2:04-cv-00384-ROSM2 2D¢cument413-2O_2 Filed 12/18/2006 2 P age·1 0f2 2 2 2

A - ‘ THE HANCOCK ACQUISITION n _
We have entered into a definitive agreement to acquire substantially all of the homébuilding and related assets of i
Hancock Communities, subject to customary closing conditions, for approximately $70,million in cash, plus the assumption of
trade payables, accrued liabilities, customer deposits and a note, currently estimated to be $12 million in the aggregate.
K i Hancock’s Business
` Hancock designs, manufactures and markets a wide range of high-quality homes in the Phoenix, Arizona area with a
focus on serving the entty—level and rnove—up single-family housing market, and is currently developing afordable age-restricted
. i adult communities. · .
Although Hancock Communities was formed in 1997, Greg Hancock, its founder, has been active in the Phoenix,
Arizona homebuilding market since the 1970’s, both in owning his own companies and in working for other homebuilders,
including a publicly-held homebuilder. Porthe twelve months ended December 31, 2000, Hancock had revenues and EBITDA of ·
` $183.7 million and $16.9 million, respectively. For the three months ended March 3], 2001, Hancock had revenues and EBITDA
ol`$l8.5 million and $1.2 million, rezqnectivelyr i
i Hancocl<’s home closings grew rapidly from 153 homes in l997 to 1,354 homes in 1999. ln 2000, home closings totaled
. 1,143 homes. For the quaner ending March 31, 2001 home closings were 69 compared to 248 for the period ending March 31, _
2000. Hancock°s 1999 closings reflected rapid sales in the initial phases at certain of its subdimisions, particularly l` or its entry-
level homes, which depleted lot inventories available for sale in 2000 and the beginning of 2001. At March 31, 2001, Hancock
. had 4,647 lots on which homes could be built under its control for development as compared to 1,049 lots at March 31, 2000.
Hancock’s homes are low- to medium-priced, with base prices ranging from $70,000 to $400,000.
_ The tables below contain operating and financial data for I-Iancock’s homehuilding activities for the year ended · · ·
December 31, 2000 and the three month period ended March 31, 2001.
Year Ended Three Months Ended ‘
December 31, 2000 March 31, 200]
. (dollars in thousands)
HOME SALES REVENUE
' Total ‘
Dollars .... .. .................................... $ 183,651 $ 18,480
Homes closed ............................... 1,143 . 69
Average sales price ............... $ 160.7 $ 267.8
Move-up _
Dollars ......................................... , S 100,417 $ 14,894
Homes closed ........... .. .................. 328 46
· Average sales price" ...................... S 306.1 $ 323.8
Entry-level ·
Dollars ............................. - ............ S 83,234 S 3,586 _
Homes closed ............................... 815 23
Average sales price .... , ................. l S 102.1 $ 155.9
E': Mg Documents i=993¥.N·! v6 — Offering Memumndixmdoc A - -
Case 2:04-cv—00384-ROS Qggtltnefbgg-§qALFiIed 12/18/2006 P&IQ9QE°R_049397

Case 2:04-cv-00384-ROS

Document 413-20

Filed 12/18/2006

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Case 2:04-cv-00384-ROS

Document 413-20

Filed 12/18/2006

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