FOR IMMEDIATE RELEASE (revised)
Tuesday, August 15, 2000
CALPROP REPORTS SECOND QUARTER RESULTS
Company Reports Profitable Second Quarter
MARINA DEL REY, CA, August 15, 2000 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, in reporting financial results for the
three and six month periods ended June 30, 2000, today reported that it has
earned a net profit from operations for the second quarter ended June 30, 2000.
"As a result of a strong California and Colorado economies and sound
projects, we achieved a net profit from operations. Additionally, our total
units in backlog has increased 85.3% at 182 units, $57,440,000, as compared with
134 units, $31,100,000 as of a year ago, reflecting a continuing strong demand
for our homes. Furthermore, we continue to experience substantial sales price
increases in our Parc Metropolitan project in the Silicon Valley," said Victor
Zaccaglin, Calprop's chairman and chief executive officer.
"The company is presently building in seven locations; three in southern
California, two in northern California and two in the Colorado Denver Metro
area. We are pleased with our commencing construction on the 181 unit luxury
apartment project in San Diego, California," Zaccaglin said.
For the second quarter, Calprop's revenues were $10.2 million, a decrease
of $8.2 million or 44.4% from $18.4 million of revenues in the second quarter a
year ago. Income from development operations was $813,142 for the second
quarter, up $301,933 or 59.1% compared to the prior year's quarter. Net income
for the second quarter of 2000 was $194,656, or $0.02 per share on 10,466,778
weighted average shares and common stock equivalents, compared with net income
of $74,834 or $0.01 per share on 10,602,242 weighted average shares and common
stock equivalents, in the same quarter a year ago.
For the year-to-date period, revenues were $17.8 million, down 32.0% from
$26.2 million in 1999. The company reported a net loss of $378,429 or ($0.04)
per share, for the six months ended June 30, 2000, a $781,456 decrease from the
net income of $403,027, or $0.04 per share, in 1999. The decrease in net income
is primarily the result of both warranty costs of the Cierra Del Lago project of
approximately $650,000 recognized in the first quarter of 2000 and a $260,196
increase in general and administrative expenses 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 the Colorado Denver Metropolitan area. The company's
common stock is traded on the OTCBB under the symbol CLPO. BB.
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CALPROP CORPORATION
Balance Sheets
(Unaudited)
June 30, December 31,
2000 1999
(Unaudited)
------------ ------------
Assets:
Real estate development 95,873,178 79,070,791
------------ ------------
Total investment in real estate 95,873,178 79,070,791
Other assets:
Cash and cash equivalents 966,611 1,405,663
Prepaid expenses 54,689 84,219
Deferred tax asset 6,500,000 6,500,000
Other assets 1,017,078 756,970
------------ ------------
Total other assets 8,537,378 8,746,852
------------ ------------
Total assets 104,411,556 87,817,643
============ ============
Liabilities and Stockholders' Equity:
Trust deeds and notes payable 66,599,892 48,216,139
Related party notes 22,355,692 24,860,032
------------ ------------
Total trust deeds and notes payable 88,955,584 73,076,171
Accounts payable and accrued liabilities 7,573,385 6,391,621
Warranty reserves 508,981 358,287
------------ ------------
Total liabilities 97,037,950 79,826,079
Minority interest -- 228,191
Stockholders' equity:
Common stock, no par value
Authorized - 20,000,000 shares
Issued and outstanding - 10,290,535 and
10,293,735 shares at June 30, 2000 and 10,290,535 10,293,735
December 31, 1999, respectively
Additional paid-in capital 25,849,961 25,849,961
Deferred compensation (167,127) (170,327)
Notes receivable from common stock sale (508,272) (496,934)
------------ ------------
Accumulated deficit (28,091,491) (27,713,062)
------------ ------------
Total stockholders' equity 7,373,606 7,763,373
============ ============
Total liabilities and stockholders' equity 104,411,556 87,817,643
============ ============
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CALPROP CORPORATION
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Development operations:
Real estate sales 10,214,099 18,381,700 17,797,462 26,164,559
Cost of real estate sales 9,400,957 17,870,491 17,307,159 24,916,897
------------ ------------ ------------ ------------
Income from development operations 813,142 511,209 490,303 1,247,662
Other income 36,822 30,536 74,873 55,739
------------ ------------ ------------ ------------
Other expenses:
General and administrative expenses 618,544 634,793 1,254,549 994,353
Interest expense 36,764 40,766 53,526 48,782
------------ ------------ ------------ ------------
Total other expenses 655,308 675,559 1,308,075 1,043,135
------------ ------------ ------------ ------------
Minority interests -- (208,648) (226,393) (142,761)
Income (loss) before benefit of income taxes 194,656 74,834 (516,506) 403,027
------------ ------------ ------------ ------------
Benefit for income taxes -- -- 138,077 --
------------ ------------ ------------ ------------
Net income (loss) 194,656 74,834 ($ 378,429) 403,027
============ ============ ============ ============
Basic and diluted net income (loss) per $ 0.02 $ 0.01 ($ 0.04) $ 0.04
============ ============ ============ ============
share
Weighted average number of common
shares and common stock equivalents
adjusted for stock dividends 10,466,778 10,602,242 10,291,673 10,592,513
Units
single family 42 80 75 113
------------ ------------ ------------ ------------
total 42 80 75 113
</TABLE>
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