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DELTONA COMPLETES DEBT RESTRUCTURING AND SECURES NEW FINANCING WHILE REPORTING A LOSS FOR 1991

 DELTONA COMPLETES DEBT RESTRUCTURING AND SECURES
 NEW FINANCING WHILE REPORTING A LOSS FOR 1991
 MIAMI, June 19 /PRNewswire/ -- The Deltona Corporation (NYSE: DLT) today announced that it completed the restructuring of its remaining bank debt. As part of the restructuring agreement, its principal lending banks released their lien on certain assets of the company, including a portion of the company's contracts receivable, enabling Deltona to complete a contracts receivable sales which yielded approximately $8 million in net proceeds to the company.
 The company also reported that with the completion of these transactions, Empire of Carolina, Inc. (AMEX EMP) completed the sale of its 39.2 percent stake in Deltona to Selex Sittard B.V., thus enabling Deltona to close a $3 million financing with Selex. As previously announced, the Selex transaction results in a change in control of Deltona's board, with the six directors formerly designated by Empire resigning their board seats. Deltona's six-man board is now comprised of Neil E. Bahr and Thomas B. McNeill (both independent, outside directors) and the four Selex designees: Anthony Gram, Marcellus H.B. Muyres, Cornelis van de Peppel and Cornelis L.J.J. Zwaans. Muyres has been appointed chairman of the board and chief executive officer of Deltona.
 Of the $11 million aggregate net proceeds from the new financings, $5.5 million has been used to meet the company's improvement escrow obligations under its consent order with the Division of Florida Land Sales, Condominiums and Mobile Homes and resolve the lawsuit which the Division had previously filed against the Miami-based developer in October 1991. In fact, Deltona not only funded the deficiency in its improvement escrow account, but also pre-funded the improvement escrow through August 1992. An additional $2 million of the proceeds has been used by the company to pay its delinquent 1990 and 1991 real estate taxes and $1 million has been used to acquire, from affiliates of Selex, certain commercial and multi-family properties at Deltona's St. Augustine Shores, Florida community. The balance of the proceeds is being used for working capital purposes, including debt repayment and advertising and promotion to rebuild Deltona's retail land sales business and facilitate the company's re-entry into the single-family home business.
 The company also reported a net loss of $26,629,000, or $4.70 per share, on revenues of $10,784,000 for 1991, compared to a net loss of $17,008,000, or $3.01 per share, on revenues of $29,033,000 for 1990.
 The continued economic recession and the increasing adverse effects of the recession on the Florida real estate industry not only resulted in the company's sales remaining at depressed levels throughout 1991, but caused greater cancellations, particularly in the second half of the year, than were anticipated. Such cancellations required the company to record an additional provision to its allowance for uncollectible contracts of approximately $12.2 million, impacting net income by approximately $8.9 million. By comparison, in 1990, the company recorded an additional provision to its allowance for uncollectible contracts of approximately $13 million, impacting net income that year by approximately $8.1 million. The company is making every effort to reduce its cancellations, but if the trend should continue, the company could be required to record additional provisions in the future.
 The results for 1991 also included a $7.1 million provision for debt restructuring, while 1990 results included a loss of approximately $600,000 from the sale of contracts receivable as well as charges of approximately $1 million related to the termination of some 230 employees and the company's retainer agreement with an investment banker.
 For the fourth quarter of 1991, Deltona reported a net loss of $6,934,000, or $1.22 per share, on revenues of $2,010,000, compared to a net loss of $5,693,000, or $1.01 per share, on revenues of $3,612,000 for the fourth quarter of 1990. Included in 1991 fourth quarter results was a $3.6 million provision for debt restructuring, while 1990 fourth quarter results included an addition to the allowance for uncollectible contracts of $5.5 million which impacted earnings by approximately $3.1 million.
 The company noted that while 1991 results were disappointing, they were not entirely unexpected given the state of the economy and its effects on Deltona's liquidity position. Now -- after reducing its debt by over $26 million, restructuring its remaining debt of approximately $25.3 million, securing $11 million of new financing through its receivable sale and the loan from Selex, and reaching compliance with its consent order obligations -- the company is cautiously optimistic about the future. Deltona expects to immediately resume development work and fulfill obligations to more than 1,500 customers in 1992. Additionally, the company will take steps to bolster its marketing organization and rebuild its retail land sales business, concentrating in the northeastern and midwestern regions of the United States. The company expects to re-enter the single-family home business in the immediate future, offering "affordable" two- and three-bedroom landscaped homes at prices ranging from $50,000 to $115,000 in its Marion Oaks community, with further expansion into other communities planned.
 Deltona is the developer of nine planned communities, extending from the Florida Panhandle to the state's Gulf Coast, and encompassing approximately 100,000 acres.
 THE DELTONA CORPORATION
 FINANCIAL HIGHLIGHTS Three Months Ended
 Dec. 27, 1991 Dec. 28, 1990
 Revenues $ 2,010,000 $ 3,612,000
 Loss from operations $ (6,934,000) $ (5,693,000)
 Net Loss $ (6,934,000) $ (5,693,000)
 Loss per share:
 From operations $ (1.22) $ (1.01)
 From reduction of
 income taxes -- --
 Net loss per share $ (1.22) $ (1.01)
 12 Months Ended
 Dec. 27, 1991 Dec. 28, 1990
 Revenues:
 Net land sales $ 1,154,000 $ 11,612,000
 House and
 apartment and sales 120,000 1,919,000
 Recognized improvement
 revenue/prior
 period sales -- 2,152,000
 Interest income 5,270,000 8,236,000
 Other revenues 4,240,000 5,114,000
 Total revenues $ 10,784,000 $ 29,033,000
 Costs and expenses:
 Cost of sales and
 improvements 2,599,000 6,976,000
 Provision for
 uncollectible contracts 8,900,000 8,094,000
 Provision for debt
 restructuring 7,100,000 --
 Selling, general and
 administrative and
 other expenses 11,918,000 23,574,000
 Interest expense 6,896,000 7,397,000
 Total cost and
 expenses 37,413,000 46,041,000
 Net loss $(26,629,000) $(17,008,000)
 Earnings (loss)
 per share:
 From operations $ (4.70) $ (3.01)
 From reduction of
 income taxes --- ---
 Net loss per share $ (4.70) $ (3.01)
 Number of common and
 common equivalent shares
 used to compute earnings
 (loss) per share 5,660,967 5,647,790
 Balance Sheet Data: Dec. 27, 1991 Dec. 28, 1990
 Total assets $ 65,243,000 $113,003,000
 Common stockholders'
 equity (deficiency) $(13,169,000) $ 13,460,000
 Per share $ (2.33) $ 2.38
 -0- 6/19/92
 /CONTACT: Michelle R. Garbis of the Deltona Corporation, 305-854-1111/
 (DLT EMP) CO: The Deltona Corporation; Selex Sittard B.V.;
 Empire of Carolina Inc. ST: Florida IN: CST SU: RCN ERN


JB-AW -- FL006 -- 2007 06/19/92 15:05 EDT
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Date:Jun 19, 1992
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