IMMEDIATE RELEASE Tuesday, November 16, 1999 CALPROP REPORTS THIRD QUARTER RESULTS Company Reports $927,000 in Profits in the Third Quarter MARINA DEL REY, CA, November 16, 1999 -- Calprop Corporation (OTCBB:CLPO), a California and Colorado home builder, today reported that it has earned a net profit for both the three and nine month periods ended September 30, 1999. "For both the three and nine month periods ended September 30, 1999, Calprop recognized a profit for the sixth quarter in succession as the Northern and Southern California and Denver Metropolitan markets continue to provide strong housing sales. Though we closed 67 units this quarter, our total units in backlog remain high at 98 units, $23,330,000, down 21.8% from 138 units, $29,835,000 a year ago," said Victor Zaccaglin, Calprop's chairman and chief executive officer. "We are presently building in ten different projects which does not include two apartment projects in Milpitas and San Diego, California, that we plan on starting construction later this year. We just acquired a 105 lot subdivision in Murrietta, California in which we intend to build our highly successful Montserrat product. All this construction has led to the determination of the Company's ability to earn $20,500,000 in aggregate taxable income in future years and is the impetus for recognizing the $3,400,000 in benefit for income taxes this quarter," Zaccaglin said. For the third quarter, Calprop's revenues were $15.7 million, an increase of $3.7 million or 30.9% from $12.0 million of revenues in the third quarter a year ago. Losses from development operations were $1,889,442 for the third quarter, down $3,012,126 or 268.3% compared to the income from operations of $1,122,684 in the same quarter in the prior year. Net income for the third quarter of 1999 was $927,006 or $0.09 per share on 10,716,872 weighted average shares and common stock equivalents, compared to $2,896,652, or $0.27 per share on 10,607,036 weighted average shares and common stock equivalents, in the same quarter a year ago. The variation in results were primarily driven by the recognition of an impairment of real estate under development in the amount of $2,519,521 to the Summertree Park project in Sacramento, California. Additionally, the company recognized $3,400,000 in benefit for income taxes. For the year-to-date period, revenues were $41.9 million, up 86.5% from $22.5 million in 1998. Losses from development operations was $641,780 for the nine months ended September 30, 1999, down $2,381,953 or 136.9% compared to income from development operations of $1,740,173 the same period in the prior year. The company reported net income of $1,330,033 or $0.13 per share on 10,637,075 weighted average shares and common stock equivalents, for the nine months ended September 30, 1999, compared with $2,508,156, or $0.24 per share on 10,310,044 weighted average shares and common stock equivalents, in the same period in 1998. The reduction in results was primarily driven by the recognition of an impairment of real estate under development in the amount of $2,519,521 to the Summertree Park project in Sacramento, California. Additionally, the company recognized $3,400,000 in benefit for income taxes. 3 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 in the Denver corridor in Colorado. The company's common stock is traded on the OTCBB under the symbol CLPO. - tables follow - CALPROP CORPORATION Balance Sheets (Unaudited) September 30, December 31, 1999 1998 ----------- ----------- Assets: Real estate development 64,696,125 65,282,197 ----------- ----------- Total investment in real estate 64,696,125 65,282,197 Other assets: Cash and cash equivalents 1,251,653 1,590,403 Prepaid expenses 98,974 88,775 Deferred tax asset 8,200,000 4,800,000 Other assets 2,113,083 760,514 ----------- ----------- Total other assets 11,663,710 7,239,692 ----------- ----------- Total assets 76,359,835 72,521,889 =========== =========== ----------- ----------- Liabilities and Stockholders' Equity: Trust deeds and notes payable 40,718,116 37,524,507 Related party notes 19,927,920 20,870,286 ----------- ----------- Total trust deeds and notes payable 60,646,036 58,394,793 Accounts payable and accrued liabilities 5,464,437 5,056,010 Warranty reserves 353,673 284,624 ----------- ----------- Total liabilities 66,464,146 63,735,427 Minority interest 118,516 326,941 Stockholders' equity: Common stock, no par value Authorized - 20,000,000 shares Issued and outstanding - 10,279,935 and 10,284,135 shares at September 30, 1999 and December 31, 1998, respectively 10,279,935 10,284,135 Additional paid-in capital 25,850,818 25,851,130 Deferred compensation (231,930) (241,130) Notes receivable from common stock sale (491,203) (474,134) Accumulated deficit (25,630,447) (26,960,480) ----------- ----------- Total stockholders' equity 9,777,173 8,459,521 ----------- ----------- Total liabilities and stockholders' equity 76,359,835 72,521,889 =========== =========== - more - 4 CALPROP CORPORATION Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- Development operations: Real estate sales 15,730,888 12,020,548 41,895,447 22,458,812 Cost of real estate sales 15,100,809 10,897,864 40,017,706 20,718,639 ----------- ----------- ----------- ----------- 630,079 1,122,684 1,877,741 1,740,173 Recognition of impairment of real estate under Development (2,519,521) -- (2,519,521) -- ----------- ----------- ----------- ----------- (Loss) income from development operations (1,889,442) 1,122,684 (641,780) 1,740,173 Other income 24,424 12,181 80,163 59,532 Other expenses: General and administrative expenses 572,261 453,301 1,566,614 1,285,798 Interest expense 8,742 23,260 57,524 129,313 ----------- ----------- ----------- ----------- Total other expenses 581,003 476,561 1,624,138 1,415,111 Minority interests 26,973 91,652 (115,788) 206,438 (Loss) income before benefit for income taxes (2,472,994) 566,652 (2,069,967) 178,156 Benefit for income taxes (3,400,000) (2,330,000) (3,400,000) (2,330,000) ----------- ----------- ----------- ----------- Net income 927,006 2,896,652 1,330,033 2,508,156 ----------- ----------- ----------- ----------- Basic and diluted net income per share $0.09 $0.27 $0.13 $0.24 ===== ===== ===== ===== Weighted average number of common shares and common stock equivalents adjusted for stock dividends 10,716,872 10,607,036 10,637,075 10,310,044 Units single family 67 60 180 112 townhomes 0 0 0 0 - - - - total 67 60 180 112 # # # 5