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DELTONA REPORTS THIRD QUARTER LOSS

                  DELTONA REPORTS THIRD QUARTER LOSS
    MIAMI, Nov. 8 /PRNewswire/ -- The Deltona Corporation (NYSE: DLT)


today reported a net loss of $11,910,000, or $2.10 per share, on revenues of $2,152,000 for the third quarter of 1991, compared to a net loss of $4,889,000, or $.86 per share, on revenues of $5,720,000 for the third quarter of 1990.
    The continued economic recession and the increasing adverse effects of such recession on the Florida real estate industry have not only resulted in Deltona's sales remaining at depressed levels, but have caused greater cancellations in 1991, particularly in the second half of the year, than were anticipated.  Such cancellations required Deltona to record an additional provision to its allowance for uncollectible contracts of approximately $12.2 million, impacting third quarter net income by approximately $8.9 million.  By comparison, during the 1990 third quarter, the company recorded an additional provision to its allowance for uncollectible contracts of approximately $5.5 million, impacting net income by $3.5 million.  While the company is making every effort to reduce its cancellations, should this trend continue, the company could be required to record additional provisions in the future.
    For the first nine months of 1991, Deltona reported a net loss of $19,695,000, or $3.48 per share, on revenues of $8,774,000, compared to the prior year's net loss of $11,315,000, or $2.00 per share, on revenues of $25,421,000.  The nine month results for 1991 include a $3.5 million provision for debt restructuring, while the comparable period results for 1990 included a loss of approximately $600,000 resulting from the sale of contracts receivable, as well as charges of approximately $1,000,000 related to the termination of some 230 employees and the termination of the company's retainer agreement with an investment banker.  The nine month results for both years reflect the company's cancellation and delinquency experience, with the above mentioned $12.2 million additional provision to the allowance for uncollectible contracts impacting net income by approximately $8.9 million in 1991, and the prior year's $7.5 million additional provision impacting net income for the first nine months of 1990 by approximately $5.1 million.
    The company recently announced that it had reduced its outstanding bank and related debt by approximately $26 million through the conveyance of certain real estate assets.  In addition, it reached an agreement in principle, restructuring the remaining bank debt (estimated to be approximately $26.5 million, subject to adjustment for debt reduction credits) to be repaid over a period of approximately six years, with specified interim benchmarks to be achieved.  The restructuring terms also provide for a five year interest deferral and a release of lien on certain assets of the company, including a portion of Deltona's contracts receivable, to enable Deltona to secure much-needed financing.
    The company noted that a recently filed lawsuit against the company by the Division of Florida Land Sales, Condominiums and Mobile Homes of the Florida Department of Business Regulation may jeopardize the conclusion of its new bank loan agreement and its ability to obtain new financing to meet its customer obligations and rebuild its community land sales business, even though the company intends to continue negotiating with the division to obtain a resolution of the lawsuit.
    Deltona is the developer of nine planned communities, extending from the Florida Panhandle to the State's Gulf Coast, and encompassing approximately 100,000 acres.
                          DELTONA CORPORATION
                         FINANCIAL HIGHLIGHTS
                                            Three Months Ended
                                      Sept. 27, 1991  Sept. 28, 1990
    Revenues                            $  2,152,000   $  5,720,000
    Net loss                            $(11,910,000)  $ (4,889,000)
    Loss from operations                $(11,910,000)  $ (4,889,000)
    Extraordinary item                 $          --  $          --
     Loss per share:
      From operations                   $      (2.10)  $       (.86)
      From reduction of income taxes              --             --
      Net loss per share                $      (2.10)          (.86)
                                             Nine Months Ended
                                      Sept. 27, 1991   Sept. 28, 1990
    Revenues:
     Net land sales                     $    734,000   $ 10,866,000
     House and apartment sales               101,000      1,689,000
     Recognized improvement revenue/
      prior period sales                         --       2,451,000
     Interest income                       4,355,000      6,440,000
     Other revenues                        3,584,000      3,975,000
       Total revenues                  $   8,774,000   $ 25,421,000
    Costs and expenses:
     Cost of sales and improvements        1,854,000      6,197,000
     Provision for uncollectible contracts 8,900,000      5,049,000
     Provision for debt restructuring      3,500,000             --
     Selling, general and administrative
      and other expenses                   8,748,000     19,873,000
     Interest expense                      5,422,000      5,527,000
      Total cost and expenses             28,424,000     36,646,000
    Loss from operations
     before income taxes                 (19,650,000)   (11,225,000)
    Provision (benefit) for income taxes      45,000         90,000
    Loss from operations before
     extraordinary item                  (19,695,000)   (11,315,000)
    Extraordinary item:
     Reduction of taxes arising from
      carryforward of prior years' losses         --            --
    Net loss                            $(19,695,000)  $(11,315,000)
    Earnings (loss) per share:
      From operations                   $      (3.48)  $      (2.00)
      From reduction of income taxes              --             --
      Net loss per share                $      (3.48)  $      (2.00)
    Number of common and common
     equivalent shares used to
     compute earnings (loss) per share     5,660,967      5,643,398
    Balance Sheet Data:                Sept. 27, 1991  Dec. 28, 1990
     Total assets                       $ 69,747,000   $113,003,000
     Common stockholders' equity
      (deficiency)                      $ (6,234,000)  $ 13,460,000
     Per share                          $      (1.10)  $       2.38
    -0-                       11/8/91
    /CONTACT:  Michelle R. Garbis of The Deltona Corporation, 305-854-1111/
    (DLT) CO:  Deltona Corporation ST:  Florida IN:  CST SU:  ERN MR-SS -- FL008 -- 2740 11/08/91 17:00 EST
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Date:Nov 8, 1991
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