IMMEDIATE RELEASE
Monday, March 26, 2001
CALPROP REPORTS FOURTH QUARTER
AND YEAREND RESULTS
Calprop Reports $3.6 million net income in 2000
MARINA DEL REY, CA, March 26, 2001 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, in reporting financial results for the
three and twelve month periods ended December 31, 2000, today reported that it
has incurred net income from operations for both the three and twelve month
periods ended December 31, 2000.
"For both the three and twelve month periods ended December 31, 2000,
Calprop recognized income from operations. The Northern and Southern California
markets as well as the Denver Metro market continue to provide strong housing
sales, and as a result on March 18, 2001, our total units in backlog remain high
at 131 units, $47,117,000, up 3.0% from 166 units, $45,750,000, as of March 12,
2000. The three and twelve month results were anticipated and reflect a
breakthrough for Calprop and our shareholders ," said Victor Zaccaglin,
Calprop's chairman and chief executive officer.
For the fourth quarter, Calprop's revenues were $29.9 million, an increase
of $19.2 million or 179.5% from $10.7 million of revenues in the fourth quarter
a year ago. Income from development operations was $3,426,587 for the fourth
quarter, up $2,947,594 compared to $478,993 in the same quarter in the prior
year. The net income for the fourth quarter of 2000 was $3,108,729 or $0.30 per
share on 10,461,569 weighted average shares and common stock equivalents,
compared with a net loss of $(2,082,615), or $(0.20) per share on 10,289,271
weighted average shares and common stock equivalents, in the same quarter a year
ago. The improved results were due primarily to the combined effects of
increased sales revenue in 2000 and increasing our valuation allowance for
deferred tax assets which resulted in the recognition of $1,700,000 in deferred
tax expense in 1999.
For the year-to-date period, revenues were $64.2 million, up 22.1% from
$52.6 million in 1999. The income from development operations was $5,676,912 for
the twelve months ended December 31, 2000, up $5,839,699 compared to a loss of
$(162,787) for the same period in the prior year. The company reported a net
income of $3,627,940, or $0.35 per share on 10,461,569 weighted average shares
and common stock equivalents, for the twelve months ended December 31, 2000,
compared with net loss of $(752,582), or $(0.07) per share on 10,289,852
weighted average shares and common stock equivalents, in the same period in
1999. The increase in results were primarily driven by a increase in sales
revenue and the recognition of $2,519,521 in impairment of real estate assets in
the prior year.
"At year end 2000, we had a total of 360 single-family residences and 542
lots under development. This compares with 260 residences and 886 lots a year
earlier. Real estate under development was $98,544,447 as of December 31, 2000,
up $19,473,656 or 24.6% compared to $79,070,791 as of December 31, 1999. This
increase reflects the ongoing development of ten projects," Zaccaglin stated.
3
At December 31, 2000, shareholders' equity was $11,430,116 or $1.09 per
share on 10,461,569 weighted average shares and common stock equivalents
compared with $7,763,373, or $0.75 per share on 10,289,852 weighted average
shares and common stock equivalents in 1999. Cash balances of $2.4 million are
comparable with last year. Total trust deeds and notes payable was $87,043,731,
up $13,967,560 or 19.1% compared to $73,076,171 in 1999. The Company's
debt-to-equity ratio decreased to 5.8 to 1, down from 6.2 to 1 in the prior
year.
"Last year at this time I looked to 2000 to increase revenues and generate
income from operations and we did. I look to 2001 to do more of the same, while
acquiring additional projects in our current markets to bolster projected
earnings in 2002," Zaccaglin stated.
Calprop builds quality homes in some of the most desirable communities in
both California and Colorado. The Company's common stock is traded on the OTC
Bulletin Board under the symbol CLPO.
Contact: Mark F. Spiro, CFO
310.306.4314
mspiro@calprop.com
(Table Follows)
4
CALPROP CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------- -------------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
Development operations:
Real estate sales 29,915,317 10,703,402 64,238,615 52,598,849
Cost of real estate sales 26,488,730 10,224,409 58,561,703 50,242,115
------------ ------------ ------------ ------------
3,426,587 478,993 5,676,912 2,356,734
Recognition of impairment of real
estate under development -- -- -- (2,519,521)
------------ ------------ ------------ ------------
Income (loss) from development
operations 3,426,587 478,993 5,676,912 (162,787)
------------ ------------ ------------ ------------
Other income 43,431 27,447 230,643 107,610
Other expenses:
General and administrative
expenses 664,399 742,611 2,637,496 2,309,225
Interest expense (13,518) 12,780 -- 70,304
------------ ------------ ------------ ------------
Total other expenses 650,881 755,391 2,637,496 2,379,529
Minority interests -- 117,037 (216,393) 1,249
------------ ------------ ------------ ------------
Income (loss) before provision
(benefit) for income taxes 2,819,137 (365,988) 3,486,452 (2,435,955)
Provision (Benefit) for income
taxes (289,592) 1,716,627 (141,488) (1,683,373)
------------ ------------ ------------ ------------
Net income (loss) $ 3,108,729 ($ 2,082,615) $ 3,627,940 ($ 752,582)
Net income (loss) allocable to
common stock $ 3,108,729 ($ 2,082,615) $ 3,627,940 ($ 752,582)
Diluted income (loss) per share $ 0.30 ($ 0.20) $ 0.35 ($ 0.07)
Weighted average shares of common
stock 10,461,569 10,289,271 10,461,569 10,289,852
Units Sold:
Single-Family Homes 31 49 141 226
Townhomes 57 0 78 0
------------ ------------ ------------ ------------
Total 88 49 219 226
- more -
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CALPROP CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000 AND 1999
Assets
2000 1999
------------ ------------
REAL ESTATE UNDER DEVELOPMENT $ 98,544,447 $ 79,070,791
OTHER ASSETS:
Cash and cash equivalents 2,394,310 1,405,663
Deferred and other assets 6,535,343 6,500,000
Other assets 863,412 841,189
------------ ------------
Total other assets 9,793,065 8,746,852
------------ ------------
Total assets $108,337,512 $ 87,817,643
============ ============
Liabilities and Stockholders' Equity
------------ ------------
TRUST DEEDS AND NOTES PAYABLE $ 66,341,488 $ 48,216,139
RELATED PARTY NOTES 20,702,243 24,860,032
------------ ------------
Total trust deeds and notes payable 87,043,731 73,076,171
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 9,316,681 6,391,621
WARRANTY RESERVES 546,984 358,287
------------ ------------
Total liabilities 96,907,396 79,826,079
MINORITY INTEREST -- 228,191
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value; $1 stated value, 20,000,000 shares authorized;
10,290,535 and 10,293,735 shares issued and outstanding at
December 31, 2000 and 1999, respectively 10,290,535 10,293,735
Additional paid-in capital 25,849,961 25,849,961
Deferred Compensation -105,525 -170,327
Stock Purchase Loans -519,733 -496,934
------------ ------------
Accumulated deficit -24,085,122 -27,713,062
------------ ------------
Total Equity 11,430,116 7,763,373
------------ ------------
Total Stockholders' Equity and Liabilities $108,337,512 $ 87,817,643
============ ============