SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8 - K
Current Report
Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 18, 1999
CALPROP CORPORATION
(Exact name of registrant as specified in its charter)
California 1-6844 95-4044835
- ------------------------------- ------------------------ ------------------
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
13160 Mindanao Way, Suite 180, Marina Del Rey, California 90292
--------------------------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (310) 306-4314
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
<PAGE>
ITEM 5. OTHER EVENTS.
On August 18, 1999, Calprop Corporation issued a press release announcing
its results of operations for the quarter ended June 30, 1999 and discussing
certain other matters. The press release is filed as an exhibit hereto.
ITEM 7. EXHIBITS.
The following exhibits are filed with this current report on Form 8 - K:
Exhibit No. Description
----------- -----------
99 Press Release dated August 18, 1999 issued by Calprop
Corporation
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CALPROP CORPORATION
By: /s/ Mark F. Spiro.
----------------------------------------
Mark F. Spiro
Vice President/Secretary/Treasurer
(Chief Financial and Accounting Officer)
August 18, 1999
2
FOR RELEASE
Wednesday, August 18, 1999
CALPROP REPORTS SECOND QUARTER RESULTS
Company Reports Profitable Second Quarter
MARINA DEL REY, CA, August 18, 1999 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, in reporting financial results for the
three and six month periods ended June 30, 1999, today reported that it has
earned a net profit from operations for the second quarter ended June 30, 1999.
"As a result of a strong California economy and sound projects, we
achieved a net profit from operations for the fifth consecutive quarter.
Additionally, our total units in backlog remains strong at 134 units,
$31,100,000, from 151 units, $31,700,000, a year ago, reflecting a continuing
strong demand for our homes," said Victor Zaccaglin, Calprop's chairman and
chief executive officer.
"The company is presently building in seven locations; two in southern
California, three in northern California and two in the Colorado Denver Metro
area. In implementing our strategy of diversifying laterally within the housing
industry, we plan on commencing construction on two apartment projects within
the next 120 days. We continue to pursue additional for sale housing projects
and are in escrow to acquire 46 lots in Aurora, Colorado and 105 lots in
Murrieta, California," Zaccaglin said.
For the second quarter, Calprop's revenues were $18.4 million, an increase
of $10.7 million or 140.8% from $7.6 million of revenues in the second quarter a
year ago. Income from development operations was $511,209 for the second
quarter, down $188,783 or 27.0% compared to the prior year quarter. Net income
for the second quarter of 1999 was $74,834, or $0.01 per share on 10,602,242
weighted average shares and common stock equivalents, compared with net income
of $105,667 or $0.01 per share on 10,483,423 weighted average shares and common
stock equivalents, in the same quarter a year ago. The results were primarily
driven by an increase in marketing expenses as typical start up costs for five
projects reduced earnings as did additional costs on a completed project in
Southern California.
For the year-to-date period, revenues were $26.2 million, up 150.7% from
$10.4 million in 1998. The company reported net income of $403,027 or $0.04 per
share, for the six months ended June 30, 1999, a $791,523 increase from the net
loss of $388,496, or ($0.04) per share, in 1998. The increase in net income is
primarily the result of an increase in the revenue from the same period a year
ago.
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 Colorado. The company's common stock is traded on the
OTCBB under the symbol CLPO.
- tables follow -
3
<PAGE>
CALPROP CORPORATION
Balance Sheets
(Unaudited)
June 30, December 31,
1999 1998
(Unaudited)
----------- -----------
Assets:
Real estate development 68,484,512 65,282,197
----------- -----------
Total investment in real estate 68,484,512 65,282,197
Other assets:
Cash and cash equivalents 3,064,329 1,590,403
Prepaid expenses 61,980 88,775
Deferred tax asset 4,800,000 4,800,000
Other assets 776,033 760,514
----------- -----------
Total other assets 8,702,342 7,239,692
----------- -----------
Total assets 77,186,854 72,521,889
=========== ===========
Liabilities and Stockholders' Equity:
Trust deeds and notes payable 42,085,265 37,524,507
Related party notes 20,052,034 20,870,286
----------- -----------
Total trust deeds and notes payable 62,137,299 58,394,793
Accounts payable and accrued liabilities 5,653,968 5,056,010
Warranty reserves 355,509 284,624
----------- -----------
Total liabilities 68,146,776 63,735,427
Minority interest 184,180 326,941
Stockholders' equity:
Common stock, no par value
Authorized - 20,000,000 shares
Issued and outstanding - 10,279,935 and
10,284,135 shares at June 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 (485,472) (474,134)
----------- -----------
Accumulated deficit (26,557,453) (26,960,480)
----------- -----------
Total stockholders' equity 8,855,898 8,459,521
=========== ===========
Total liabilities and stockholders' equity 77,186,854 72,521,889
=========== ===========
- more -
4
<PAGE>
CALPROP CORPORATION
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Development operations:
Real estate sales 18,381,700 7,632,478 26,164,559 10,438,264
Cost of real estate sales 17,870,491 6,932,486 24,916,897 9,820,775
----------- ----------- ----------- -----------
Income from development operations 511,209 699,992 1,247,662 617,489
Other income 30,536 11,370 55,739 47,351
----------- ----------- ----------- -----------
Other expenses:
General and administrative expenses 634,793 446,521 994,353 832,497
Interest expense 40,766 37,486 48,782 106,053
----------- ----------- ----------- -----------
Total other expenses 675,559 484,007 1,043,135 938,550
----------- ----------- ----------- -----------
Minority interests (208,648) 121,688 (142,761) 114,786
Income loss before benefit of income
taxes 74,834 105,667 403,027 (388,496)
----------- ----------- ----------- -----------
Net income (loss) 74,834 105,667 403,027 (388,496)
=========== =========== =========== ===========
Basic and diluted net income (loss)
per share $ 0.01 $ 0.01 $ 0.04 ($0.04)
=========== =========== =========== ===========
Weighted average number of common
shares and common stock equivalents
adjusted for stock dividends 10,602,242 10,438,423 10,592,513 9,846,674
Units
single family 80 35 113 52
----------- ----------- ----------- -----------
total 80 35 113 52
</TABLE>
# # #
5
