EX-99 2 0002.txt PRESS RELEASE 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 - 5 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 ============ ============