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CALPROP REPORTS SECOND QUARTER RESULTS: SHAREHOLDER RIGHTS OFFERING TO RAISE ADDITIONAL CAPITAL

 LOS ANGELES, Aug. 4 /PRNewswire/ -- Calprop Corp. (AMEX: CPP), a California home builder, today reported financial results for the three and six months ended June 30, 1993. "The California real estate market continues depressed. And it is still uncertain when we shall see improvement. Nevertheless, Calprop continues to position itself to successfully meet changing market demands while safe guarding our financial strength," said Victor Zaccaglin, chairman and chief executive officer. "While lower selling prices and unit sales contributed to lower revenues, our conservative approach to the write down of properties to net realizable value contributed to an increase in gross profit during the quarter just ended by lowering our cost of goods sold. In addition, to ensure Calprop has the financial flexibility to pursue opportunities as they develop, we are undertaking a shareholder rights offering to further strengthen our capital position," he continued.
 For the second quarter, revenues were $5.7 million compared with $6.2 million in the same quarter a year ago. Unit sales for the quarter included 11 single-family homes, 3 townhomes and 32 lots. This compares with unit sales of 21 single-family homes, 7 townhomes and no lots in the second quarter of 1992. Gross profit from real estate operations increased to $322,065, up from $236,462 in the quarter a year ago.
 Calprop recognized a net loss of $260,590, or six cents per share, for the quarter compared with a net loss of $5.3 million, or $1.13 per share, in the second quarter of 1992. The net loss in the second quarter of last year included a $5.0 million non-cash charge for a write down of properties to net realizable value.
 For the six months, revenues were $13.7 million, up from $11.7 million. The increase was due primarily to lot sales during the first quarter of 1993. A net loss of $2.4 million, or 51 cents per share, was reported, compared with a net loss of $5.8 million, or $1.24 per share in the same period a year ago.
 As recently announced, in order to provide additional liquidity Calprop is undertaking an offering of preferred stock to existing shareholders. Each Calprop shareholder of record on July 15, 1993, will receive one Right for each share owned on that date. Each Right entitles the shareholder to purchase one share of preferred stock for $1.28 per share. The preferred stock will accrue dividends of 13 cents per year, yielding approximately 10.2 percent. However, under Calprop's current loan agreements the company will not be able to pay out dividends in cash, and it is uncertain when cash payments of dividends can begin. Alternatively, each share of preferred stock will be convertible into 1.28 shares of common stock, effectively valuing the common stock at $1.00 per share.
 Two principal shareholders have committed to purchase their pro rata portion, approximately $2.8 million, which will provide sufficient capital to complete Calprop's current projects, which in turn should provide sufficient cash flow to start new projects in 1994.
 Shareholders of record should have received a registration statement for the offering and a subscription form directly. Shareholders in street name are advised to contact their brokers to ensure they receive the offering documents. Subscription forms must be returned to the company by 5 p.m. California time, Aug. 27.
 At June 30, 1993, shareholders' equity was $11.8 million, or $2.51 per share.
 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- 8/4/93
 /CONTACT: Stuart Eigler of Calprop, 310-306-4314; or Lise Needham or Stephanie Meyer of the Financial Relations Board, 415-986-1591, for Calprop/
 (CPP)


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

TM -- SF007 -- 9445 08/04/93 14:30 EDT
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Date:Aug 4, 1993
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