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CALPROP REPORTS FOURTH QUARTER AND YEAR-END RESULTS; DEBT RESTRUCTURING STRENGTHENS BALANCE SHEET

 LOS ANGELES, March 29 /PRNewswire/ -- Calprop Corp. (AMEX: CPP), a California home builder, today reported a loss for the fourth quarter and year ended Dec. 31, 1992. Victor Zaccaglin, chairman and chief executive officer, said, "The prolonged recession in California, coupled with the credit crunch, continued to have a severe effect on all home builders in California. Calprop was no exception. During the year, we continued to cut operating expenses and to reposition our products to more effectively address the changing market demands. Despite these efforts, home sales and margins declined. While 1992 was a very difficult year, we took several steps to strengthen our financial position including the sale of finished lots and the restructuring of our debt load. As a result, we believe Calprop is in a stronger position going forward that at any time in the last two years."
 For the year, revenues were $34.1 million, up 30 percent from $26.3 million in 1991 reflecting the significant increase in lot sales associated with debt restructuring. In addition, 1992 benefitted from a $17.4-million extraordinary gain from the extinguishment of debt recognized in the fourth quarter. This gain was offset by declining margins on completed homes, a loss on lot sales and an $8.6-million charge for the write down of properties to net realizable value. As a result, Calprop reported a full year net loss of $5.4 million, or $1.15 per share, compared with a loss of $12.2 million, or $2.63 per share in 1991.
 For the fourth quarter, revenues were $18.7 million compared with $6.6 in the fourth quarter a year ago, as the bulk of lot sales were completed during this quarter. Net earnings were $813,000, or 17 cents per share, compared with a net loss of $9.5 million, or $2.04 per share, in the same quarter a year ago.
 Zaccaglin noted, "During the year, we sold 176 lots for a total of $14.6 million, compared to total lot sales of seven for $126,000 in 1991. Sales of completed homes generated $19.6 million in revenue, 84 units, compared with $26.2 million, 97 units, in the prior year."
 In 1992, debt restructuring and related land sales had a significant effect on both financial performance and the year-end balance sheet:
 The primary lender on the company's Northern California projects extended financing for one year through August 1993. A new loan was made for the construction of the first phase of the company's Glendale project in Los Angeles county, consisting of 19 units. The remaining $24.6-million land loan on the project was satisfied in full by selling 90 lots to another developer for $9.9 million as the bank forgave the remaining $14.7 million.
 In July, Bank of America informed the company that it would not renew $11.7 million in loans on five projects in southern California. Although Calprop had missed no payments, the value of the properties securing the loan had fallen below the bank's loan to value requirements. The debt was restructured as follows: the bank foreclosed on three projects with a combined value of $9.0 million, forgave $2.7 million in debt, and returned two projects to Calprop, 31 mapped lots in Mockingbird Canyon and 517 mapped lots in Victorville.
 The total effect of the above debt transactions was a $3.6 million reduction in debt, a $25 million charge to cost of sale, a $6 million charge to writedown properties and a $17 million extraordinary gain on extinguishment of debt.
 Zaccaglin commented, "With the debt restructuring we have consolidated our efforts to focus on the projects with the highest potential. At year end 1992, we had 4 projects under active development compared with 6 at the end of 1991. In particular, our Northern California projects continue to experience a relatively steady sales rate.
 "In addition, the carrying cost of units and lots under development has dropped considerably, placing us in a better position to realize profitable sales in the future. At year end 1992, we had a total of 156 single-family residences and 866 lots under development. This compares with 244 residences and 1,155 lots a year earlier. The total value on the balance sheet of real estate under development dropped significantly to $39.8 million, less than half the $85.8 million reported a year earlier reflecting the sale of homes and lots during the year, the debt restructuring and the write down of properties to net realizable value."
 At Dec. 31, 1992, shareholders' equity was $14.2 million, or $ 3.03 per share, compared with $19.4 million, or $ 4.18 per share at the end of 1991. Cash balances of $900,000 are even with last year. Trust deeds and notes payable dropped by more than 60 percent to $28.4 million at Dec. 31, 1992, down from $73.0 million at the end of 1991. As a result, the company's debt-to-equity ratio improved significantly to 1.85x, down from 3.75x in the prior year.
 Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California. The company's common stock is traded on the American Stock Exchange under the symbol CPP.
 -0- 3/29/93
 /CONTACT: Stuart Eigler, vice president of Finance of Calprop, 310-306-4314; or Lise Needham, 415-986-1591, or Nick Farina, 312-266-7800, both of the Financial Relations Board, for Calprop/
 (CPP)


CO: Calprop Corp. ST: California IN: CST SU: ERN

SG -- SF005 -- 0597 03/29/93 14:16 EST
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