IMMEDIATE RELEASE
Wednesday, November 14, 2002
CALPROP REPORTS THIRD QUARTER RESULTS
Company Reports $4,709,052 in Losses in the Third Quarter
MARINA DEL REY, CA, November 14, 2002 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, today reported that it has incurred net
losses for the three month period and for the nine month period ended September
30, 2002.
"For the three month period and nine month period ended September 30,
2002, Calprop recognized net losses, respectively, as the Northern California
and Denver Metropolitan markets show signs of a weakening in housing sales. We
closed 64 units this quarter, leaving our total units in backlog at 11 units,
$4,275,000, down 79.0% from 59 units, $20,400,000 a year ago," said Victor
Zaccaglin, Calprop's chairman and chief executive officer.
"We are presently building four different projects. Overall, we have
seen a slow down in sales of our units in all our Northern California and Denver
Metropolitan markets though Southern California remains steady. Given the
present recessionary climate in two of our three markets, our focus remains to
reduce overhead and debt. We believe, in this way, we can position ourselves to
acquire those new projects we have in escrow in the Spring 2003," Zaccaglin
said.
For the third quarter, Calprop's revenues were $21.7 million, an
increase of $2,878,306 or 15.2% from $18.9 million of revenues in the third
quarter a year ago. Loss from development operations was ($947,806) for the
third quarter, down $3,139,332 or 331.2% compared to the income from operations
of $2,191,526 in the same quarter in the prior year. Net loss for the third
quarter of 2002 was ($4,709,052) or ($0.46) per share on 10,254,005 weighted
average shares and common stock equivalents, compared to a net loss of
($833,428) or ($0.08) per share on 10,285,284 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 $1,231,948 to the Saddlerock project in Aurora, Colorado and
$1,407,520 to Highridge Court in Thornton, Colorado. These impairments were
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 $86.0 million, up 24.1% from
$69.3 million in 2001. Loss from development operations was ($4,571,718) for the
nine months ended September 30, 2002, down $9,171,151 or 200.6%, compared to
income from development operations of $4,599,433 the same period in the prior
year. The company reported a net loss of ($6,201,449) or ($0.61) per share on
10,254,005 weighted average shares and common stock equivalents, for the nine
months ended September 30, 2002, compared with income of $2,234,824 or $0.21 per
share on 10,441,222 weighted average shares and common stock equivalents, in the
same period in 2001. The variation in results was driven mainly by the
recognition of an impairment of real estate under development in the amount of
$4,471,693 as previously described.
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 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, December 31,
2002 2001
(Unaudited)
----------------- -----------------
Assets:
Real estate development 24,970,213 88,789,252
Rental property( net of accumulated depreciation of $48,750) 10,721,144 --
----------------- -----------------
Total investment in real estate 35,691,357 88,789,252
Other assets:
Cash and cash equivalents 5,140,620 2,079,471
Deferred tax asset 6,535,343 6,535,343
Other assets 803,995 774,882
Receivable from affiliates 5,476 788,752
----------------- -----------------
Total other assets 12,485,434 10,178,448
----------------- -----------------
Total assets 48,176,791 98,967,700
================= =================
Liabilities and Stockholders' Equity:
Trust deeds and notes payable 20,289,651 51,990,779
Related party notes 15,637,634 26,219,560
------------------ -----------------
Total trust deeds and notes payable 35,927,285 78,210,339
Accounts payable and accrued liabilities 2,931,684 5,334,450
Warranty reserves 751,804 670,115
------------------ -----------------
Total liabilities 39,610,773 84,214,904
Stockholders' equity:
Common stock, no par value
Authorized - 20,000,000 shares
Issued and outstanding - 10,254,005
at September 30, 2002 and December 31, 2001 10,254,005 10,254,005
Additional paid-in capital 25,845,986 25,845,986
Deferred compensation (51,000) (51,000)
Notes receivable from common stock sale (522,508) (537,179)
Accumulated deficit (26,960,465) (20,759,016)
------------------ -----------------
Total stockholders' equity 8,566,018 14,752,796
------------------ -----------------
------------------ -----------------
Total liabilities and stockholders' equity 48,176,791 98,967,700
================== =================
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CALPROP CORPORATION
Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ -------------------------------
-------------------------------
2002 2001 2002 2001
-------------- ------------- --------------- --------------
Development operations:
Real estate sales 21,678,306 18,880,000 86,028,975 69,309,686
Cost of real estate sales 22,626,112 16,688,474 86,129,000 62,692,165
-------------- ------------- --------------- --------------
(Loss) income from development operation before
recognition of impairment of real estate (947,806) 2,191,526 (100,025) 6,617,521
-------------- ------------- --------------- --------------
Recognition of impairment of real estate
under development (2,639,468) (2,018,088) (4,471,693) (2,018,088)
-------------- ------------- --------------- --------------
(Loss) income from development operations (3,587,274) 173,438 (4,571,718) 4,599,433
Income from investment in real estate venture -- -- 109,253 --
Other income
Rental 43,771 -- 43,771 --
Interest and miscellaneous 63,004 73,412 315,303 144,031
Management fee 10,931 -- 218,113 --
----------------------------------------------------------------
Total other income 117,706 73,412 577,187 144,031
----------------------------------------------------------------
Other expenses:
Rental operating 220,500 -- 220,500 --
General and administrative 775,484 874,734 1,851,936 2,304,921
Depreciation 47,532 -- 47,532 --
Interest 195,968 -- 195,968 --
----------------------------------------------------------------
Total other expenses 1,239,484 874,734 2,315,936 2,304,921
----------------------------------------------------------------
Minority interests -- -- 235 (1,825)
Income (loss) before income tax expense (4,709,052) -627,884 (6,201,449) 2,440,368
Income tax expense -- 205,544 -- 205,544
-------------- ------------- --------------- --------------
Net income (loss) ($4,709,052) ($833,428) ($6,201,449) $2,234,824
============== ============= =============== ==============
Basic net income (loss) per share ($0.46) ($0.08) ($0.61) $0.22
======= ======= ======= =====
Diluted net income (loss) per share ($0.46) ($0.08) ($0.61) $0.21
======= ======= ======= =====
Weighted average number of common
shares and common stock equivalents
for dilutive net income 10,254,005 10,285,284 10,254,005 10,441,222
Units
single family 64 46 233 190
-- -- --- ---
total 64 46 233 190
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