IMMEDIATE RELEASE
Wednesday, November 14, 2001
CALPROP REPORTS THIRD QUARTER RESULTS
Company Reports $927,000 in Losses in the Third Quarter
MARINA DEL REY, CA, November 14, 2001 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, today reported that it has incurred a net
loss for the three month period and a net profit for the nine month period ended
September 30, 2001.
"For the three month period and nine month periods ended September 30,
2001, Calprop recognized a net loss and net profit, respectively, as the
Northern and Southern California and Denver Metropolitan markets show signs of a
weakening in housing sales. We closed 46 units this quarter, leaving our total
units in backlog at 59 units, $20,400,000, down 59.8% from 147 units,
$50,720,000 a year ago," said Victor Zaccaglin, Calprop's chairman and chief
executive officer.
"We continue to build nine different projects including two apartment
projects in Milpitas and San Diego, California. Overall, we have seen a slow
down in sales of our units in all our markets except Montserrat Classics in
Murrieta, California, though sales are maintaining a moderate rate. Given the
present recessionary climate, our focus is on both reducing overhead and paying
down debt. We believe, in this way, we can position ourselves on a strong
footing from which to proceed in Spring 2002," Zaccaglin said.
For the third quarter, Calprop's revenues were $18.9 million, an increase
of $2,354,164 or 13.8% from $16.7 million of revenues in the third quarter a
year ago. Income from development operations was $173,438 for the third quarter,
down $1,585,584 or 90.1% compared to the income from operations of $1,760,022 in
the same quarter in the prior year. Net losses for the third quarter of 2001
were ($833,428) or ($0.08) per share on 10,285,284 weighted average shares and
common stock equivalents, compared to net income of $897,640, or $0.09 per share
on 10,477,972 weighted average shares and common stock equivalents, in the same
quarter a year ago. The variation is the result of the recognition of an
impairment of real estate under development in the amount of $2,018,088 to the
Creekside at Mockingbird Canyon project in Riverside County, California. This
impairment was incurred due to the slow pace of sales and the resultant increase
in carrying costs, most significantly, financing costs.
For the year-to-date period, revenues were $69.3 million, up 101.9% from
$34.3 million in 2000. Income from development operations was $4,599,433 for the
nine months ended September 30, 2001, up $2,349,108 or 104.4%, compared to
income from development operations of $2,250,325 the same period in the prior
year. The company reported net income of $2,234,824 or $0.22 per share on
10,441,222 weighted average shares and common stock equivalents, for the nine
months ended September 30, 2001, compared with $519,211 or $0.05 per share on
10,475,389 weighted average shares and common stock equivalents, in the same
period in 2000. The variation in results were driven by two events, the
recognition of an impairment of real estate under development in the amount of
$2,018,088 to the Creekside at Mockingbird Canyon project in Riverside County,
California and the increase in sales revenue.
Calprop Corporation, based in Marina Del Rey, California, builds quality
homes in some of the most desirable communities in both Northern and Southern
California as well as
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the Colorado Denver Metropolitan area. The company's common stock is traded on
the OTCBB under the symbol CLPO.
- tables follow -
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CALPROP CORPORATION
Balance Sheets
(Unaudited)
September 30,
2001 December 31,
(Unaudited) 2000
------------ ------------
Assets:
Real estate development 88,468,000 98,544,447
------------ ------------
Total investment in real estate 88,468,000 98,544,447
Other assets:
Cash and cash equivalents 4,216,860 2,394,310
Deferred tax asset 6,535,343 6,535,343
Other assets 899,013 863,412
------------ ------------
Total other assets 11,651,216 9,793,065
------------ ------------
Total assets 100,119,216 108,337,512
============ ============
Liabilities and Stockholders' Equity:
Trust deeds and notes payable 55,352,665 66,341,488
Related party notes 23,679,170 20,702,243
------------ ------------
Total trust deeds and notes payable 79,031,835 87,043,731
Accounts payable and accrued liabilities 6,838,181 9,316,681
Warranty reserves 624,330 546,984
------------ ------------
Total liabilities 86,494,346 96,907,396
Stockholders' equity:
Common stock, no par value
Authorized - 20,000,000 shares
Issued and outstanding - 10,267,635 and 10,290,535 shares,
respectively, at September 30, 2001 and December 31, 2000 10,267,635 10,290,535
Additional paid-in capital 25,844,571 25,849,961
Deferred compensation (105,525) (105,525)
Notes receivable from common stock sale (531,513) (519,733)
------------ ------------
Accumulated deficit (21,850,298) (24,085,122)
------------ ------------
Total stockholders' equity 13,624,870 11,430,116
------------ ------------
============ ============
Total liabilities and stockholders' equity 100,071,724 108,337,512
============ ============
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CALPROP CORPORATION
Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
2001 2000 2001 2000
------------ ----------- ----------- -----------
Development operations:
Real estate sales 18,880,000 16,525,836 69,309,686 34,323,298
Cost of real estate sales 16,688,474 14,765,814 62,692,165 32,072,973
------------ ----------- ----------- -----------
2,191,526 1,760,022 6,617,521 2,250,325
------------ ----------- ----------- -----------
Recognition of Impairment of real estate
under development (2,018,088) -- (2,018,088) --
------------ ----------- ----------- -----------
Income from development operations 173,438 1,760,022 4,599,433 2,250,325
Other income 73,412 112,339 144,031 187,212
------------ ----------- ----------- -----------
Other expenses:
General and administrative expenses 874,734 718,548 2,304,921 1,973,097
Interest expense -- (40,008) -- 13,518
------------ ----------- ----------- -----------
Total other expenses 874,734 678,540 2,304,921 1,986,615
------------ ----------- ----------- -----------
Minority interests -- 10,000 (1,825) (216,393)
Income (loss) before income tax expense (627,884) 1,183,821 2,440,368 667,315
Income tax expense 205,544 286,181 205,544 148,104
------------ ----------- ----------- -----------
Net income (loss) ($ 833,428) 897,640 2,234,824 519,211
============ =========== =========== ===========
Basic net income (loss) per share ($ 0.08) $ 0.09 $ 0.22 $ 0.05
============ =========== =========== ===========
Diluted net income (loss) per share ($ 0.08) $ 0.09 $ 0.21 $ 0.05
============ =========== =========== ===========
Weighted average number of common
shares and common stock equivalents
for dilutive net income 10,285,284 10,477,972 10,441,222 10,475,389
Units
single family 46 56 190 131
------------ ----------- ----------- -----------
total 46 56 190 131
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