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): November 16, 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
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(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 November 16, 1999, Calprop Corporation issued a press release
announcing its results of operations for the quarter ended September 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 November 16, 1999 issued by Calprop
Corporation
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)
November 16, 1999
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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.
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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 -
<PAGE>
CALPROP CORPORATION
Balance Sheets
(Unaudited)
September 30, December 31,
1999 1998
----------- -----------
Assets:
Real estate development 64,696,125 65,282,197
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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
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Total other assets 11,663,710 7,239,692
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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
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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
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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
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Total liabilities and stockholders' equity 76,359,835 72,521,889
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- more -
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<PAGE>
CALPROP CORPORATION
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
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
</TABLE>
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