DELTONA REPORTS THIRD QUARTER LOSS
DELTONA REPORTS THIRD QUARTER LOSS MIAMI, Nov. 8 /PRNewswire/ -- The Deltona Corporation (NYSE: DLT)
today reported a net loss of $11,910,000, or $2.10 per share, on revenues of $2,152,000 for the third quarter of 1991, compared to a net loss of $4,889,000, or $.86 per share, on revenues of $5,720,000 for the third quarter of 1990.
The continued economic recession and the increasing adverse effects of such recession on the Florida real estate industry have not only resulted in Deltona's sales remaining at depressed levels, but have caused greater cancellations in 1991, particularly in the second half of the year, than were anticipated. Such cancellations required Deltona to record an additional provision to its allowance for uncollectible contracts of approximately $12.2 million, impacting third quarter net income by approximately $8.9 million. By comparison, during the 1990 third quarter, the company recorded an additional provision to its allowance for uncollectible contracts of approximately $5.5 million, impacting net income by $3.5 million. While the company is making every effort to reduce its cancellations, should this trend continue, the company could be required to record additional provisions in the future. For the first nine months of 1991, Deltona reported a net loss of $19,695,000, or $3.48 per share, on revenues of $8,774,000, compared to the prior year's net loss of $11,315,000, or $2.00 per share, on revenues of $25,421,000. The nine month results for 1991 include a $3.5 million provision for debt restructuring, while the comparable period results for 1990 included a loss of approximately $600,000 resulting from the sale of contracts receivable, as well as charges of approximately $1,000,000 related to the termination of some 230 employees and the termination of the company's retainer agreement with an investment banker. The nine month results for both years reflect the company's cancellation and delinquency experience, with the above mentioned $12.2 million additional provision to the allowance for uncollectible contracts impacting net income by approximately $8.9 million in 1991, and the prior year's $7.5 million additional provision impacting net income for the first nine months of 1990 by approximately $5.1 million. The company recently announced that it had reduced its outstanding bank and related debt by approximately $26 million through the conveyance of certain real estate assets. In addition, it reached an agreement in principle, restructuring the remaining bank debt (estimated to be approximately $26.5 million, subject to adjustment for debt reduction credits) to be repaid over a period of approximately six years, with specified interim benchmarks to be achieved. The restructuring terms also provide for a five year interest deferral and a release of lien on certain assets of the company, including a portion of Deltona's contracts receivable, to enable Deltona to secure much-needed financing. The company noted that a recently filed lawsuit against the company by the Division of Florida Land Sales, Condominiums and Mobile Homes of the Florida Department of Business Regulation may jeopardize the conclusion of its new bank loan agreement and its ability to obtain new financing to meet its customer obligations and rebuild its community land sales business, even though the company intends to continue negotiating with the division to obtain a resolution of the lawsuit. 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. DELTONA CORPORATION FINANCIAL HIGHLIGHTS Three Months Ended Sept. 27, 1991 Sept. 28, 1990 Revenues $ 2,152,000 $ 5,720,000 Net loss $(11,910,000) $ (4,889,000) Loss from operations $(11,910,000) $ (4,889,000) Extraordinary item $ -- $ -- Loss per share: From operations $ (2.10) $ (.86) From reduction of income taxes -- -- Net loss per share $ (2.10) (.86) Nine Months Ended Sept. 27, 1991 Sept. 28, 1990 Revenues: Net land sales $ 734,000 $ 10,866,000 House and apartment sales 101,000 1,689,000 Recognized improvement revenue/ prior period sales -- 2,451,000 Interest income 4,355,000 6,440,000 Other revenues 3,584,000 3,975,000 Total revenues $ 8,774,000 $ 25,421,000 Costs and expenses: Cost of sales and improvements 1,854,000 6,197,000 Provision for uncollectible contracts 8,900,000 5,049,000 Provision for debt restructuring 3,500,000 -- Selling, general and administrative and other expenses 8,748,000 19,873,000 Interest expense 5,422,000 5,527,000 Total cost and expenses 28,424,000 36,646,000 Loss from operations before income taxes (19,650,000) (11,225,000) Provision (benefit) for income taxes 45,000 90,000 Loss from operations before extraordinary item (19,695,000) (11,315,000) Extraordinary item: Reduction of taxes arising from carryforward of prior years' losses -- -- Net loss $(19,695,000) $(11,315,000) Earnings (loss) per share: From operations $ (3.48) $ (2.00) From reduction of income taxes -- -- Net loss per share $ (3.48) $ (2.00) Number of common and common equivalent shares used to compute earnings (loss) per share 5,660,967 5,643,398 Balance Sheet Data: Sept. 27, 1991 Dec. 28, 1990 Total assets $ 69,747,000 $113,003,000 Common stockholders' equity (deficiency) $ (6,234,000) $ 13,460,000 Per share $ (1.10) $ 2.38 -0- 11/8/91 /CONTACT: Michelle R. Garbis of The Deltona Corporation, 305-854-1111/ (DLT) CO: Deltona Corporation ST: Florida IN: CST SU: ERN MR-SS -- FL008 -- 2740 11/08/91 17:00 EST
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|Date:||Nov 8, 1991|
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