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GAIN OF NEARLY $4 MILLION LEADS TO THIRD QUARTER PROFIT FOR DELTONA; FURTHER EQUITY INCREASE EXPECTED IN FOURTH QUARTER

GAIN OF NEARLY $4 MILLION LEADS TO THIRD QUARTER PROFIT FOR DELTONA;
 FURTHER EQUITY INCREASE EXPECTED IN FOURTH QUARTER
 MIAMI, Nov. 5 /PRNewswire/ -- The Deltona Corporation (NYSE: DLT) today reported net income for the third quarter 1992 of $2,641,000, or $.47 per share, on revenues of $3,274,000, vs. a loss for the prior year's third quarter of $11,910,000, or $2.10 per share, on revenues of $2,203,000. This substantial improvement is primarily due to a $3,983,000 extraordinary gain from the adjustment to the allowance for Marco permit costs as a result of the recent settlement of certain class action litigation, as well as a $400,000 gain from the reduction of debt and a $448,000 gain on the sale of a fixed asset. Third quarter results for 1991 included approximately $8,900,000 related to a $12,200,000 addition to the allowance for uncollectible contracts. Exclusive of the extraordinary gain, Deltona reported a loss from operations for the 1992 third quarter of $1,342,000, compared to 1991's third quarter operating loss of $11,910,000.
 For the first nine months of 1992, Deltona reported a net income of $156,000, or $.03 per share, on revenues of $8,815,000, compared to the prior year's net loss of $19,695,000, or $3.48 per share, on revenues of $8,938,000. Included in the 1992 results were the above mentioned gains of $848,000 and the extraordinary gain of $3,983,000, while the nine month results for 1991 included a $3,500,000 provision for debt restructuring, as well as approximately $8,900,000 related to the previously mentioned addition to the allowance for uncollectible contracts. The loss from operations for the first nine months of 1992 was $3,827,000, vs. $19,695,000 for the comparable year ago period.
 Deltona's board of directors also announced that it had approved a transaction which calls for an affiliate of Selex, the holder of 39.2 percent of Deltona's outstanding stock, to acquire approximately $21,500,000 of the company's bank debt for $8 million in cash. The company's remaining bank debt of approximately $3 million would be restructured to be repaid within three years of closing.
 Simultaneously, Deltona would sell certain assets, including a portion of the company's contracts receivable, to the Selex affiliate, so as to satisfy the debt acquired by the affiliate and provide the company with approximately $2 million needed for the balance of the year to enable it to be in a better position to carry out its marketing program. Separately, Deltona would enter into a loan agreement with another Selex affiliate that would ease the company's future financing needs by providing it with a line of credit of approximately $1,500,000. Upon completion of these transactions, Deltona would report an increase in stockholders' equity estimated to be approximately $12,500,000.
 Since June 28, 1991, Deltona's debt restructuring efforts have resulted in the company slashing its bank debt, including interest and fees, by half. The transactions in process would substantially improve the company's balance sheet, leaving the Miami-based developer with only some $10,100,000 in mortgages and similar debt vs. $48,400,000 at the end of June 1991.
 The transactions are interdependent and contingent, among other things, upon approval of the banks' credit committees, as well as the approval of the state of Florida, Division of Florida Land Sales, Condominiums and Mobile Homes. Additionally, the transactions between Deltona and the Selex affiliates are subject to certain possible post- closing adjustments. While closing is expected to occur by mid- November, there can be no assurance that the transactions will be successfully or timely concluded.
 Deltona is the developer of nine planned communities, extending from the Florida Panhandle through the state's gulf coast and encompassing approximately 100,000 acres.
 THE DELTONA CORPORATION
 FINANCIAL HIGHLIGHTS
 Three Months Ended
 Sept. 25, 1992 Sept. 27, 1991
 Revenues $ 3,274,000 $ 2,203,000
 Net profit (loss) $ 2,641,000 $(11,910,000)
 Loss from operations $ (1,342,000) $(11,910,000)
 Extraordinary item: Gain on
 litigation related to the
 allowance for Marco
 permit costs $ 3,983,000 $ ---
 Profit (loss) per share:
 From operations $ (.23) $ (2.10)
 From reduction of income taxes --- ---
 From extraordinary gain .70 ---
 Net profit (loss) per share $ .47 $ (2.10)
 Nine Months Ended
 Sept. 25, 1992 Sept. 27, 1991
 Revenues:
 Net land sales $ 1,595,000 $ 898,000
 House and apartment sales --- 101,000
 Recognized improvement revenue/
 prior period sales 501,000 ---
 Interest income 2,817,000 4,355,000
 Gain from reduction of debt 400,000 ---
 Other revenues 3,502,000 3,584,000
 Total revenues $ 8,815,000 $ 8,938,000
 Costs and expenses:
 Cost of sales and improvements 2,247,000 2,018,000
 Provision for uncollectible contracts --- 8,900,000
 Provision for debt restructuring --- 3,500,000
 Selling, general and
 administrative and
 other expenses 7,601,000 8,793,000
 Interest expense 2,794,000 5,422,000
 Total costs and expenses 12,642,000 28,633,000
 Loss from operations
 before income taxes (3,827,000) (19,695,000)
 Provision (benefit) for income taxes --- ---
 Loss from operations before
 extraordinary items (3,827,000) (19,695,000)
 Extraordinary items:
 Gain on litigation related to the
 allowance for Marco permit costs 3,983,000 ---
 Reduction of taxes arising from
 carryforward of prior
 years' losses --- ---
 Net income (loss) $ 156,000 $(19,695,000)
 Earnings (loss) per share:
 From operations $ (.67) $ (3.48)
 From reduction of income taxes --- ---
 From extraordinary gain .70 ---
 Net (income) loss per share $ .03 $ (3.48)
 Number of common and common
 equivalent shares used to compute
 earnings (loss) per share 5,660,967 5,660,967
 Balance Sheet Data: Sept. 25, 1992 Dec. 27, 1991
 Total assets $ 48,723,000 $ 65,243,000
 Common stockholders' equity
 (deficiency) $(13,013,000) $(13,169,000)
 Per share $ (2.30) $ (2.33)
 -0- 11/5/92
 /CONTACT: Michelle R. Garbis of The Deltona Corporation, 305-854-1111/
 (DLT) CO: The Deltona Corporation ST: Florida IN: CST SU: ERN


AW-JB -- FL014 -- 7959 11/05/92 17:16 EST
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Date:Nov 5, 1992
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