Printer Friendly

THE PRESLEY COMPANIES REPORTS FIRST QUARTER RESULTS, SIGNING OF BANK AGREEMENT

 NEWPORT BEACH, Calif., May 12 -- The Presley Companies (NYSE: PDC) today reported a net loss for the first quarter ended March 31, 1993, of ($3,253,000), or ($0.18) per share, on sales of $46,385,000, compared with net income of $357,000, or $0.02 per share, on sales of $33,950,000 for the comparable period a year ago. Home sales for the quarter ended March 31, 1993, were $44,742,000, compared with $32,686,000 for the quarter ended March 31, 1992.
 The net loss for the quarter was primarily attributed to declining margins in the company's major projects as well as a decrease in the amount of interest which is capitalized because a major portion of the company's land development has been substantially completed or is awaiting further development activity and therefore does not qualify for interest capitalization. This results in a larger portion of total interest incurred being expensed currently. Management believes that these factors may continue to affect operating results in the future.
 For the company and its unconsolidated joint venture, closings in the first quarter of this year were up 49 percent, to 270, from 181 a year ago. Net new home orders for the quarter ended March 31, 1993, rose 17 percent, to 395 units, from 337 a year ago. For the first quarter of 1993, new orders were up 68 percent, from 235 in the fourth quarter of 1992. The backlog of homes sold, but not closed, as of March 31, 1993, was 363, up 3 percent from 351 units a year earlier, and up 53 percent from 238 units at Dec. 31, 1992.
 Management believes that the increase in new orders and closings in the first quarter of 1993 compared with the same period a year ago is attributable in large part to reduced sales prices, increased buyer incentives and lower interest rates.
 The company previously announced that it had executed a commitment letter under which its banks had agreed to an amendment of its revolving line of credit to extend the maturity of the Revolving Facility for two years and to revise and restructure the Revolving Facility in various other respects. Effective on May 11, 1993 the loan agreement was signed extending the loan through May 11, 1995, and warrants were issued to the lenders to purchase up to 10 percent of the company's common stock at $5.00 per share under certain circumstances consistent with the terms and conditions previously announced. Also, with the signing of the new agreement, Foothill Capital Corp. has acquired the interests of First Interstate Bank and California Federal Bank in the Company's Revolving Facility.
 The Presley Companies is one of California's oldest and largest homebuilders. It has operations in California, Arizona and New Mexico, with 39 sales locations, including 28 in its master-planned communities and 11 at its other projects.
 THE PRESLEY COMPANIES
 Condensed Consolidated Balance Sheets
 (In thousands)
 March 31, Dec. 31,
 1993 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $5,858 $15,405
 Real estate inventories 470,319 476,218
 Investments in and advances to
 unconsolidated joint venture 13,731 13,640
 Other assets 25,124 18,489
 Total $515,032 $523,752
 Liabilities and Stockholders' Equity
 Accounts payable and accrued expenses $20,600 $20,005
 Due to joint venture partner --- 9,405
 Notes payable 349,988 345,743
 Deferred income taxes 2,118 3,041
 Stockholders' equity 142,326 145,558
 Total $515,032 $523,752
 THE PRESLEY COMPANIES
 Consolidated Statements of Operations
 (In thousands, except per common share amounts)
 (Unaudited)
 Three Months Ended
 March 31,
 1993 1992(a)
 Sales
 Homes $44,742 $32,686
 Lots, land and other 1,643 1,264
 Total 46,385 33,950
 Cost of sales
 Homes 39,451 25,778
 Lots, land and other 1,614 1,223
 Total 41,065 27,001
 Gross profit 5,320 6,949
 Equity in earnings
 of unconsolidated
 joint ventures 159 283
 Other expenses (income)
 Sales and marketing 3,745 3,128
 General and
 administrative 3,165 2,865
 Other (income)
 expense, net (252) (1,069)
 Interest incurred 7,124 9,073
 Interest capitalized (4,127) (7,847)
 Total 9,655 6,150
 Income (loss) before
 minority partners'
 interest in consolidated
 income (4,176) 1,082
 Minority partners'
 interest in consolidated
 income --- (485)
 Income (loss) before
 income taxes (4,176) 597
 Credit (provision)
 for income taxes 923 (240)
 Net income (loss) ($3,253) $357
 Net income (loss)
 per common share ($0.18) $0.02
 Number of common shares
 outstanding 18,500 18,500
 (a) Effective in the first quarter of 1993, the company reclassified buyer incentives, which had previously been included in "other expenses -- sales and marketing," as a reduction of sales revenue. Such reclassification, in the amount of $1,495,000, has been made to present comparable financial information for the three months ended March 31, 1992. The reclassification had no effect on previously reported net income (loss) and related per share amounts.
 Unit Data (Including Unconsolidated Joint Venture)
 Net new homes orders 395 337
 Homes closed 270 181
 Backlog -- end of period 363 351
 -0- 5/12/93
 /CONTACT: Dave Siegel or Craig Manchester of The Presley Companies, 714-640-6400/
 (PDC)


CO: The Presley Companies ST: California IN: CST SU: ERN

BP-LS -- LA008 -- 7839 05/12/93 19:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 12, 1993
Words:886
Previous Article:IMF APPROVES CREDITS FOR KYRGYZSTAN
Next Article:DIMPLES ANNOUNCES CORPORATE UPDATE
Topics:


Related Articles
THE PRESLEY COMPANIES REPORTS THIRD QUARTER AND NINE MONTH RESULTS
THE PRESLEY COMPANIES REPORTS FOURTH QUARTER AND YEAR-END RESULTS
THE PRESLEY COMPANIES REPORTS SECOND QUARTER RESULTS
THE PRESLEY COMPANIES REPORTS FOURTH QUARTER AND YEAR-END RESULTS
THE PRESLEY COMPANIES REPORTS THIRD QUARTER RESULTS; RESTRUCTURE DISCUSSIONS
THE PRESLEY COMPANIES REPORTS FIRST QUARTER RESULTS
THE PRESLEY COMPANIES HIGH YIELD DEBT OFFERING CLOSED TODAY; COMPANY COMPLETES ITS CAPITAL RESTRUCTURING
WILLIAMS INDUSTRIES, INC. RELEASES FIRST QUARTER RESULTS
The Presley Companies Announces Second Quarter Results; Impairment Loss of $74,000,000

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