Printer Friendly

CALPROP REPORTS SECOND QUARTER RESULTS

 CALPROP REPORTS SECOND QUARTER RESULTS
 LOS ANGELES, Aug. 5 /PRNewswire/ -- Calprop (AMEX: CPP), a


California home builder, today reported revenues for the second quarter of 1992 of $6.2 million, compared with $9.2 million in the second quarter of 1991. Sales of 28 units (21 single-family homes, 7 townhomes) compared with sales of 35 units (27 single-family homes and 8 paired homes) in the 1991 quarter. The company recognized a net loss of $5.3 million, or $1.13 per share for the second quarter due primarily to a non-cash charge of $5 million for the write down of properties. This compares to a net loss of $851,929, or 18 cents per share, in the same quarter a year ago.
 Victor Zaccaglin, chairman and chief executive officer, said, "While revenues are down from a year ago, due primarily to the continuing recession in California real estate, it should be noted that on an operating basis we continue to make progress. During the quarter, gross profits on development operations were $236,432. This compares with a loss of $53,811 in the second quarter of 1991. In addition, operating expenses decreased $200,000 from the same quarter a year ago.
 "However, on July 23, 1992, Bank of America notified us that it would not renew a $14 million loan. As a result, we took a second quarter non-cash write-off of $5 million to reserve for loss on the potential foreclosure of the properties securing the loan. As of June 30, 1992, these properties included 10 completed homes and 666 fully entitled lots. Although Calprop did not miss a single payment, the value of the properties fell below Bank of America's loan to value requirements. It should be noted that we are current on our loan payments with other lenders.
 "As with all California home builders, we were affected by the stalled economy in the second quarter. In light of this environment, we are focusing on maintaining our long-term viability by protecting our capital position. We have responded this past year by continuing to lower our operating expenses and completing the process of repositioning our products. Combined with the continued downward trend of home mortgage interest rates we anticipate a steady sales pace for the balance of 1992."
 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.
 CALPROP CORP. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited)
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Development operations
 Real estate
 sales $6,249,259 $9,238,130 $11,724,014 $12,142,174
 Cost of real
 estate sales 6,012,827 9,291,941 11,364,839 12,023,466
 Gross profit 236,432 (53,811) 359,175 118,708
 Write down of
 inventories to
 net realizable
 value (5,000,000) (500,000) (5,000,000) (500,000)
 Income (loss) from
 development
 operations (4,763,568) (553,811) (4,640,825) (381,292)
 Other income 19,465 26,255 48,635 63,930
 Other expenses:
 General and
 administrative
 expenses 534,628 730,874 1,133,042 1,637,832
 Interest expense
 on general
 obligations 22,249 32,319 41,643 45,787
 Total 556,877 763,193 1,174,685 1,683,619
 Income (loss) before
 benefit (provision)
 for income taxes (5,300,980) (1,290,749) (5,766,875) (2,000,981)
 Benefit (provision)
 for income taxes --- 438,820 --- 680,298
 Net income
 (loss) ($5,300,980) ($851,929)($5,766,875)($1,320,683)
 Net income (loss)
 per share ($1.13) ($.18) ($1.23) ($0.28)
 Weighted average
 common shares and
 common stock
 equivalents,
 restated 4,671,000 4,653,000 4,662,000 4,655,000
 Units sold:
 Single-family homes 21 27 32 38
 Townhomes 7 --- 9 ---
 Paired homes --- 8 1 9
 Lots --- --- 37 ---
 Total 28 35 79 47
 -0- 8/5/92
 /CONTACT: Stuart Eigler, VP, secretary and treasurer of Calprop, 310-306-4314; or Nick Farina of FRB Chicago, 312-266-7800, or Lise Needham of FRB San Francisco, 415-986-1591, both for Calprop/
 (CPP) CO: Calprop ST: California IN: CST SU: ERN


EH-JL -- LA013 -- 7056 08/05/92 11:23 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:Aug 5, 1992
Words:710
Previous Article:PNM DECLARES REGULAR PREFERRED STOCK DIVIDENDS
Next Article:HEALTH-CHEM REPORTS RESULTS; BOARD APPROVES REPURCHASE OF DEBENTURES
Topics:


Related Articles
CALPROP PRESIDENT, COO RESIGNS, CHAIRMAN TO FILL HIS ROLE
CALPROP REPORTS FOURTH QUARTER AND YEAR-END RESULTS
CALPROP REPORTS HIGHER SALES IN FIRST QUARTER; MANAGEMENT SEES FIRMING IN CALIFORNIA HOUSING MARKET
CALPROP REPORTS IMPROVED THIRD QUARTER RESULTS, ANNOUNCES KAUFMAN AND BROAD EXERCISED OPTION ON 49 LOTS IN OCTOBER
CALPROP REPORTS FIRST QUARTER RESULTS
CALPROP ANNOUNCES COMPLETION OF FORECLOSURE PROCEEDINGS
CALPROP REPORTS SECOND QUARTER RESULTS: SHAREHOLDER RIGHTS OFFERING TO RAISE ADDITIONAL CAPITAL
CALPROP EXTENDS SHAREHOLDER RIGHTS OFFERING TO SEPTEMBER 15; PLAN TO RAISE MORE THAN $4 MILLION IN ADDITIONAL CAPITAL
FIRST INTERSTATE AGREES IN PRINCIPLE TO EXTEND LOAN AGREEMENTS WITH CALPROP

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters