Calprop Reports Fourth-Quarter and Year-End Results; Calprop Incurs a $1.6 Million Loss in 1997.MARINA Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness DEL REY Del Rey may refer to:
"The company incurred a $1.6 million loss in 1997," said Victor Zaccaglin, chairman and chief executive officer of Calprop. "The company purchased two new developments during 1997, Parkland Hills, an 84-lot development in Sonoma Sonoma may refer to
"Additionally, Calprop has entered into escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. to acquire three projects in the Denver area of Colorado: Saddlerock, a 94-lot development, in Aurora Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. , Colo.; Templeton Heights, a 117-lot development, in Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo.; and Hunters Chase, a 170-lot development, in Thornton, Colo. "The company is also in escrow, as previously reported, to acquire 410 lots in Milpitas, Calif. All four of these developments are scheduled to commence in 1998. I look to 1998 as a year to increase revenues to a level adequate to enhance the company's continued growth and potential profitability," Zaccaglin noted. For the fourth quarter, revenues were $3.6 million, compared with $6.7 million in the fourth quarter a year ago. Net losses were $284,991, or 3 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net losses of $2,597,236, or 28 cents per share, in the same quarter a year ago. For the year, revenues were $22.9 million, up 67.0 percent from $13.7 million in 1996, reflecting an increase in the number of units sold in 1997. The company reported a net loss of $1,620,211, or 18 cents per share in the year ended Dec. 31, 1997, compared with a net loss of $9,200,342, or $1.28 per share in the year ended Dec. 31, 1996. This reduction in losses is primarily the result of the recognition of $6,093,475 of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. in real estate held for development and land held for investment in 1996, coupled with increased sales revenue during 1997. "At year end 1997, we had a total of 160 single-family residences and 317 lots under development. This compares with 87 residences and 266 lots a year earlier. The total value on the balance sheet of real estate under development increased to $26.3 million, an increase of 20.9 percent as compared to the $21.9 million reported a year earlier," Zaccaglin stated. "This increase reflects the positive impact of the purchase of two new developments in 1997 and the negative impact of the recognition of asset impairment during 1996." At Dec. 31, 1997, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $2.8 million, or 30 cents per share, compared with $4.4 million, or 47 cents per share, in 1996. Cash balances of $1.1 million are comparable with last year. Trust deeds A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. and notes payable of $19.4 million increased 10.8 percent from $17.5 million in 1996. The company's debt-to-equity ratio debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. increased to 4.46x, up from 4.02x in the prior year. "Though the company was not profitable in 1997, we increased our sales revenue by 67 percent; acquired two new developments; entered escrow to acquire another four projects, three of which are in Colorado, a new geographic location. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. from a year ago is up 107 percent from $14,309,000 on March 15, 1997, to $29,674,000 this year. "We continue to improve our efficiency as our general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. reflect a 61.5 percent decrease from the prior year. We remain committed to providing our shareholders with both stable growth and profitability in 1998," Zaccaglin concluded. Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, (soon to be in Colorado). The company's common stock is traded on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol CLPO. -0-
CALPROP CORP.
Statements of Operations
(Unaudited)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Development operations:
Real estate sales 3,563,375 6,696,250 22,908,649 13,717,126
Cost of real
estate sales 3,574,413 6,901,995 22,853,947 14,150,124
(11,038) (205,745) 54,702 (432,998)
Recognition of
impairment of real
estate under
development and
land held for
investment - (1,766,627) - (6,093,475)
Income (loss) from
development
operations (11,038) (1,972,372) 54,702 (6,526,473)
Other income 29,326 141,382 91,738 181,788
Other expenses:
General and
administrative
expenses 418,214 472,792 1,444,096 2,332,444
Interest expense 88,997 217,854 339,766 217,854
Investment property
holding costs - 75,600 185,838 305,359
Total other expenses 507,211 766,246 1,969,700 2,855,657
Minority interests (18,075) - (17,192) -
(Loss) income before
benefit for income
taxes $(470,848) $(2,597,236) $(1,806,068) $(9,200,342)
Benefit for
income taxes (185,857) - (185,857) -
Net Loss $(284,991) $(2,597,236) $(1,620,211) $(9,200,342)
Net loss allocable
to common stock (a) $(284,991) $(2,597,256) $(1,620,211) $(9,402,589)
Net loss per
share (a) (3 cents) (28 cents) (18 cents) $(1.28)
Weighted average
shares of common
stock 9,298,477 9,224,585 9,242,386 7,346,772
Units Sold:
Single-Family Homes 18 21 71 40
Townhomes 0 9 31 26
Total 18 30 102 66
(a) Includes $202,247 preferred dividend for the 12-month period ended
Dec. 31, 1996.
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CALPROP CORP.
Consolidated Balance Sheets
Dec. 31, 1997 and 1996
1997 1996
Assets:
Real estate under development $26,325,978 $21,908,164
Investment in land 2,975,982 4,037,187
Total investment in real estate 29,301,960 25,945,351
Other assets:
Cash and cash equivalents 1,100,028 1,224,780
Prepaid expenses 23,149 29,587
Deferred and other assets 531,665 333,660
Total other assets 1,654,842 1,588,027
$30,956,802 $27,533,378
Liabilities and Stockholders' Equity:
Trust deeds and notes payable $ 6,713,809 $ 5,011,866
Related party notes 12,718,829 12,528,550
Total trust deeds and
notes payable 19,432,638 17,540,416
Community facilities district
special tax bonds 2,336,544 2,336,544
Accounts payable and
accrued liabilities 3,954,885 3,025,783
Warranty reserves 288,278 261,401
Accrued dividends payable
on preferred stock - -
Total liabilities 26,012,345 23,164,144
Minority interest 2,187,847 10,000
Stockholders' equity:
Common stock, no par value;
20 million shares authorized;
9,304,785 and 9,224,585
shares issued and outstanding
at Dec. 31, 1997 and 1996,
respectively 9,304,785 9,224,585
Additional paid-in capital 25,886,906 25,911,579
Deferred compensation (106,595) (68,655)
Accumulated deficit (32,328,486) (30,708,275)
Total Equity 2,756,610 4,359,234
$30,956,802 $27,533,378
CONTACT: Calprop Corp., Marina del Rey Mark F. Spiro, 310/306-4314 |
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