Printer Friendly

THE PRESLEY COMPANIES REPORTS FIRST QUARTER PROFIT VS. YEAR-AGO LOSS; SIGNIFICANT INCREASES IN NEW ORDERS, BACKLOGS AND CLOSINGS

THE PRESLEY COMPANIES REPORTS FIRST QUARTER PROFIT VS. YEAR-AGO LOSS;
 SIGNIFICANT INCREASES IN NEW ORDERS, BACKLOGS AND CLOSINGS
 NEWPORT BEACH, Calif., May 6 /PRNewswire/ -- The Presley Companies (NYSE: PDC) today reported net income for the first quarter ended March 31, 1992, of $357,000, or $0.02 per share on sales of $25,486,000, compared with a loss of ($703,000), or ($0.06) per share, on sales of $26,287,000 a year ago, when the company was not publicly held.
 The Company reported that closings of new homes in the first quarter rose more than 21 percent to 181, from 149 a year ago, while new home orders rose nearly 57 percent to 337 from 215 in the first quarter of 1991. This represents the largest number of new orders in two years. The Presley Companies backlog of homes sold, but not closed in the first quarter, also showed significant improvement, up 48 percent from a year earlier, to 351 units.
 Wade H. Cable, President and Chief Executive Officer, said, "I am pleased with the initial results of 1992, as the Company has shown substantive improvement on a year-to-year basis. We are also pleased that the controls we implemented last year and our operational strategies have been successful at producing the type of results we had hoped for."
 In 1991, responding to a soft housing market, Presley lowered its headcount in the first quarter and reduced its development activities in the second quarter. "Those strategies, as well as the cost savings measures implemented and the repositioning and downsizing of product, are in great measure responsible for our improvement," Mr. Cable said. He pointed out that general and administrative expenses were reduced to $2.5 million in the first quarter, from $3.0 million a year ago," as a direct result of our cost control program."
 Mr. Cable said that "Clearly, the economic recovery is under way. It is not a strong recovery, but it is a recovery. We see consumer confidence improving and believe interest rates will remain at relatively low levels. Specific to our industry, we did see a drop in new housing starts for the industry in March. However, the fact is that during the first quarter of this year, housing starts were up 43 percent from a year ago.
 With regard to building value in this economic environment, Mr. Cable said, "Our strategy, which involves reducing cost whenever possible, and changing our product mix to present a broader array of affordable homes during this economic cycle, places Presley in a strong position at this point in the recovery cycle. We believe the Company is well-positioned in terms of geographic and product diversity, as well as access to capital markets."
 He pointed out that access to capital is one of the most pressing problems facing homebuilders today and that The Presley Companies, "as one of the nation's largest public homebuilders, has a great many more options than do most of its competitors, who do not have access to the public capital markets."
 The Presley Companies is one of California's oldest and largest homebuilders. It has operations in California, Arizona and New Mexico, with 41 sales locations, including 26 in its master-planned communities and 15 at its other projects.
 THE PRESLEY COMPANIES
 Condensed Consolidated Statement of Income
 (Unaudited; in thousands except common share amounts)
 Three months ended
 March 31,
 1992 1991
 Sales
 Homes $25,486 $26,287
 Lots, land and other 1,265 1,835
 Total 26,751 28,122
 Cost of sales
 Homes 22,961 23,359
 Lots, land and other 1,150 1,743
 Total 24,111 25,102
 Gross profit 2,640 3,020
 Equity in earnings of unconsolidated
 joint ventures 632 137
 Other expenses (income) -- net (2,675) (4,458)
 Income before income taxes 597 (1,301)
 Income taxes including pro forma
 amounts 240 (598)
 Net income $357 ($703)
 Net income per common share $0.02 ($0.06)
 Average common shares outstanding 18,500,000 12,410,000
 Unit data (including unconsolidated
 joint ventures)
 Homes closed 181 149
 Net new home orders 337 215
 Backlog -- end of period 351 237
 THE PRESLEY COMPANIES
 Condensed Consolidated Balance Sheet
 (Unaudited; in thousands)
 March 31, Dec. 31,
 1992 1991
 Assets
 Cash and cash equivalents $9,961 $19,678
 Real estate inventories 437,023 420,777
 Investment in unconsolidated
 joint ventures 37,156 37,457
 Other assets 34,318 35,276
 Total $518,458 $513,188
 Liabilities and stockholders' equity
 Accounts payable and accrued expenses $23,994 $22,001
 Notes payable 328,676 324,612
 Income taxes payable --- 2,390
 Deferred income taxes 9,446 8,219
 Shareholders' equity 156,342 155,966
 Total $518,458 $513,188
 NOTE TO FINANCIAL SUMMARY: The Presley Companies filed a Registration Statement on Form S-1 with the Securities and Exchange Commission for the sale of 7,000,000 shares of common stock at $10 per share, which became effective on Oct. 9, 1991, and was completed on Oct. 19, 1991. As a result of this offering, the Company has 18,500,000 shares of common stock outstanding. The Company had historically elected to be taxed as an S corporation for income tax purposes. As an S corporation, the Company was not subject to federal and certain state income taxes. Upon consummation of this transaction in October 1991, the Company became subject to federal and state income taxes. The supplemental pro forma income taxes provided for in the statements of income for the three months ended March 31, 1991, represent the estimated income taxes that would have been reported had the Company filed federal and state income tax returns as a regular corporation for this period.
 -0- 5/6/92
 /CONTACT: Steven D. Stern of Stern and Company, 310-471-5123, for The Presley Companies/
 (PDC) CO: The Presley Companies ST: California IN: CST SU: ERN


JL-KJ -- LA028 -- 7356 05/06/92 18:57 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 6, 1992
Words:983
Previous Article:CALLOWAY'S NURSERY ANNOUNCES RESULTS FOR QUARTER ENDED MARCH 31,
Next Article:POOL ENERGY SERVICES EARNINGS
Topics:


Related Articles
CENTEX REPORTS RECORD QUARTERLY RESULTS; CITES GAINS IN HOME BUILDING AND MORTGAGE BANKING
THE PRESLEY COMPANIES REPORTS THIRD-QUARTER RESULTS
THE PRESLEY COMPANIES REPORTS SECOND QUARTER RESULTS; LOAN EXTENSIONS; SALE OF GOLF COURSE
THE PRESLEY COMPANIES REPORTS FOURTH-QUARTER AND YEAR-END RESULTS; UPDATE ON POSSIBLE RESTRUCTURE AND QUASI-REORGANIZATION
THE PRESLEY COMPANIES REPORTS SECOND QUARTER NET INCOME; REVERSES YEAR AGO LOSS
THE PRESLEY COMPANIES REPORTS THIRD QUARTER NET INCOME; ACQUISITION OF JOINT VENTURE PARTNERSHIP INTEREST
THE PRESLEY COMPANIES REPORTS FOURTH QUARTER AND YEAR END NET INCOME
THE PRESLEY COMPANIES REPORTS THIRD QUARTER RESULTS
THE PRESLEY COMPANIES REPORTS FIRST QUARTER RESULTS
The Presley Companies Reports First Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters