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THE PRESLEY COMPANIES REPORTS THIRD QUARTER AND NINE MONTH RESULTS

THE PRESLEY COMPANIES REPORTS THIRD QUARTER AND NINE MONTH RESULTS
    NEWPORT BEACH, Calif., Nov. 5 /PRNewswire/ -- The Presley Companies (NYSE: PDC) today announced third quarter results.  Net income for the quarter ended Sept. 30, 1991 was $1,134,000, or $.09 per share, up slightly from $1,086,000, or $.09 per share, for the comparable prior year period.  Revenues for the current quarter were $31,445,000, a decline from $55,998,000 for the comparable prior year period.
    For the first nine months of 1991, net income was $2,511,000, or $.20 per share, down from $15,830,000, or $1.27 per share, for the first nine months of 1990.  Revenues for the first nine months of 1991 totaled $102,166,000 compared to $232,920,000 for the comparable period in 1990.
    Wade H. Cable, president and chief executive officer of The Presley Companies, said that the company's revenues and gross profits were impacted by the reduced number of closings for the current quarter, during which the company closed 201 homes (including unconsolidated joint ventures) compared to 355 homes closed for the third quarter of 1990.  Reduced gross profits were offset by increases in income from unconsolidated joint ventures combined with reduced interest and other expense.  The decline in revenues for the nine months ended Sept. 30, 1991, compared to the same period for 1990, is a result of the decline in the number of closings to 556 homes (including unconsolidated joint ventures) for the current nine-month period compared to 1,490 homes for the same nine-month period in 1990.
    Cable added that the company had 266 net new home orders (including unconsolidated joint ventures) for the current quarter, which is 15 percent ahead of the 232 new home orders for the third quarter of last year, and it was the third consecutive quarterly increase in net new home orders experienced by the company.  The company's backlog of homes sold (including unconsolidated joint ventures) was 346 at Sept. 30, 1991, an increase of 30 percent from the 266 home backlog that existed at Sept. 30, 1990.
    In October, 1991, The Presley Companies's completed the initial public offering of 7,000,000 shares of common stock at $10.00 per share.  Net proceeds to the company from the offering were approximately $63,000,000 after expenses.  Of these proceeds, $55,000,000 was used for repayment of debt and the balance was used for the payment of pre-offering dividend.  As a result of this offering the company has 18,500,000 shares of common stock outstanding.
    Further, upon the consummation of the offering, the company's status as an S corporation was terminated.  Accordingly, the company has been subject to Federal and state income taxes since that date and as described in its prospectus relating to the initial public offering, the company is required to provide for a deferred tax liability of approximately $7,700,000 (attributable to periods prior to the offering) in its statement of income for the fourth quarter of 1991.
    Presley, one of California's oldest and largest homebuilders, is primarily engaged in the development of large-scale master-planned communities and other homebuilding projects.  Presley also has limited operations in Arizona, New Mexico and Illinois.
    -0-                     11/5/91
    /CONTACT:  Wade H. Cable, president and CEO of The Presley Companies, 714-640-6400/
    (PDC) CO:  The Presley Companies ST:  California IN:  CST SU:  ERN EH-SE -- LA030 -- 1469 11/05/91 18:50 EST
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Publication:PR Newswire
Date:Nov 5, 1991
Words:576
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