IMMEDIATE RELEASE
Tuesday, November 14, 2000
CALPROP REPORTS THIRD QUARTER RESULTS
Company Reports $898,000 in Profits in the Third Quarter
and Internet Web Broadcast of Third Quarter Results
MARINA DEL REY, CA, November 14, 2000 -- 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, 2000.
"For both the three and nine month periods ended September 30, 2000,
Calprop recognized a profit as the Northern and Southern California and Denver
Metropolitan markets continue to provide strong housing sales. We closed 56
units this quarter, leaving our total units in backlog at 147 units,
$50,720,000, up 117.7% from 98 units, $23,330,000 a year ago," said Victor
Zaccaglin, Calprop's chairman and chief executive officer.
"We are presently building in ten different projects including two
apartment projects in Milpitas and San Diego, California. Our Parc Metropolitan
project in Milpitas, California began closing units this quarter which are
generating considerable profits. In conjunction with this profitability, we
continue to experience strong upward pressure on the sales pricing of these
homes. Our main goal for 2001 is to maintain our present size while reducing the
cost of equity and mezzanine capital to enhance our 2002 profitability,"
Zaccaglin said.
For the third quarter, Calprop's revenues were $16.5 million, an increase
of $794,948 or 5.1% from $15.7 million of revenues in the third quarter a year
ago. Income from development operations was $1,760,022 for the third quarter, up
$3,649,844 or 193.2% compared to the losses from operations of $1,889,442 in the
same quarter in the prior year. Net income for the third quarter of 2000 was
$897,640 or $0.09 per share on 10,477,972 weighted average shares and common
stock equivalents, compared to $927,006, or $0.09 per share on 10,716,872
weighted average shares and common stock equivalents, in the same quarter a year
ago. The variation in results were driven by two events in the third quarter of
1999, 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
and the recognition of $3,400,000 in benefit for income taxes.
For the year-to-date period, revenues were $34.3 million, down 18.1% from
$41.9 million in 1999. Income from development operations was $2,250,325 for the
nine months ended September 30, 2000, up $2,892,105 or 450.6% compared to losses
from development operations of $641,780 the same period in the prior year. The
company reported net income of $519,211 or $0.05 per share on 10,475,389
weighted average shares and common stock equivalents, for the nine months ended
September 30, 2000, compared with $1,330,033, or $0.13 per share on 10,637,075
weighted average shares and common stock equivalents, in the same period in
1999. The variation in results were driven by two events in the third quarter of
1999, 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 and the company recognized
$3,400,000 in benefit for income taxes.
<PAGE>
A Internet interview will be taped and replayed daily at 3:00 PM Pacific
time during the week of November 17th through the 24th. Shareholders and other
interested parties are invited to listen to the broadcast on Tribe
Communication, Inc.'s site, at http://www.epowow.com. To hear the interview,
click on the LISTEN UP button on the site during the hours of the re-broadcast.
Listeners must have WinAmp Player installed in order to listen to the
broadcast. WinAmp Player is available free of charge at:
http://www.winamp.com/getwinamp.
Should you wish to submit a question to be considered for discussion on
the program, submit your question to either of the email addresses listed below.
For more information on Calprop Corporation please visit their web site at
www.calprop.com.
CONTACT:
Calprop Corporation
Mark F. Spiro, 310.306.4314 (CFO and Secretary/Treasurer)
[email protected]
www.calprop.com
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.OB.
- tables follow -
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<PAGE>
CALPROP CORPORATION
Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1998
(Unaudited)
Assets: ------------- ------------
<S> <C> <C>
Real estate development 104,798,403 79,070,791
------------- ------------
Total investment in real estate 104,798,403 79,070,791
Other assets:
Cash and cash equivalents 2,040,252 1,405,663
Prepaid expenses 90,231 84,219
Deferred tax asset 6,233,074 6,500,000
Other assets 802,480 756,970
------------- ------------
Total other assets 9,166,037 8,746,852
------------- ------------
Total assets 113,964,440 87,817,643
============= ============
Liabilities and Stockholders' Equity:
Trust deeds and notes payable 73,982,281 48,216,139
Related party notes 22,694,288 24,860,032
------------- ------------
Total trust deeds and notes payable 96,676,569 73,076,171
Accounts payable and accrued liabilities 8,548,829 6,391,621
Warranty reserves 473,526 358,287
------------- ------------
Total liabilities 105,698,924 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 September 30, 2000 and
December 31, 1999, respectively 10,290,535 10,293,735
Additional paid-in capital 25,849,961 25,849,961
Deferred compensation (167,127) (170,327)
Notes receivable from common stock sale (514,002) (496,934)
Accumulated deficit (27,193,851) (27,713,062)
------------- ------------
Total stockholders' equity 8,265,516 7,763,373
------------- ------------
Total liabilities and stockholders' equity 113,964,440 87,817,643
============= ============
</TABLE>
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<PAGE>
CALPROP CORPORATION
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Development operations:
Real estate sales 16,525,836 15,730,888 34,323,298 41,895,447
Cost of real estate sales 14,765,814 15,100,809 32,072,973 40,017,706
---------- ---------- ---------- ----------
Recognition of impairment of real estate under -- (2,519,521) -- (2,519,521)
Development ---------- ---------- ---------- ----------
Income (Loss) from development operations 1,760,022 (1,889,442) 2,250,325 (641,780)
Other income 112,339 24,424 187,212 80,163
Other expenses:
General and administrative expenses 718,548 572,261 1,973,097 1,566,614
Interest expense (40,008) 8,742 13,518 57,524
---------- ---------- ---------- ----------
Total other expenses 678,540 581,003 1,986,615 1,624,138
Minority interests 10,000 26,973 (216,393) (115,788)
Income (loss) before provision (benefit) for
income taxes 1,183,821 (2,472,994) 667,315 (2,069,967)
Provision (Benefit) for income taxes 286,181 (3,400,000) 148,104 (3,400,000)
---------- ---------- ---------- ----------
Net income 897,640 927,006 519,211 1,330,033
---------- ---------- ---------- ----------
Basic and diluted net income per share $0.09 $0.09 $0.05 $0.13
========== ========== ========== ==========
Weighted average number of common
shares and common stock equivalents
adjusted for stock dividends 10,477,972 10,716,872 10,475,389 10,637,075
Units
single family 35 67 110 180
townhomes 21 0 21 0
-- -- -- --
total 56 67 131 180
</TABLE>
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