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) : April 19, 2000
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 April 19, 2000, Calprop Corporation issued a press release announcing
its results of operations for the quarter and the year ended December 31, 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 April 19, 2000 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)
April 19, 2000
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IMMEDIATE RELEASE
Wednesday, April 19, 2000
CALPROP REPORTS FOURTH QUARTER
AND YEAREND RESULTS
Calprop Reports $700K loss in 1999
MARINA DEL REY, CA, April 19, 2000 -- Calprop Corporation (OTCBB:CLPO), a
California and Colorado home builder, in reporting financial results for the
three and twelve month periods ended December 31, 1999, today reported that it
has incurred a net loss from operations for both the three and twelve month
periods ended December 31, 1999.
"For both the three and twelve month periods ended December 31, 1999,
Calprop recognized a loss from operations. The Northern and Southern California
markets as well as the Denver Metro market continue to provide robust housing
sales, and as a result on March 12, 2000, our total units in backlog remain high
at 166 units, $45,750,000, up 37.9% from 140 units, $33,180,000 as of March 15,
1999. Despite this increase in backlog and the ongoing development of ten
projects, the weaker than anticipated results in the three months ended December
31, 1999, was the impetus to record a deferred tax expense of $1,700,000," said
Victor Zaccaglin, Calprop's chairman and chief executive officer.
For the fourth quarter, Calprop's revenues were $10.7 million, an increase
of $0.1 million or .8% from $10.6 million of revenues in the fourth quarter a
year ago. Income from development operations was $478,993 for the fourth
quarter, down $408,358 compared to $887,351 in the same quarter in the prior
year. The net loss for the fourth quarter of 1999 was $(2,082,615) or $(0.20)
per share on 10,289,271 weighted average shares and common stock equivalents,
compared with net income of $2,859,850, or $0.27 per share on 10,465,459
weighted average shares and common stock equivalents, in the same quarter a year
ago. The diminished results were primarily driven by recording $1,700,000 in
deferred tax expense.
For the year-to-date period, revenues were $52.6 million, up 59.0% from
$33.1 million in 1998. The loss from development operations was $(162,787) for
the twelve months ended December 31, 1999, down $2,790,311 compared to
$2,627,524 for the same period in the prior year. The company reported a net
loss of $(752,582), or $(0.07) per share on 10,289,852 weighted average shares
and common stock equivalents, for the twelve months ended December 31, 1999,
compared with net income of $5,368,006, or $0.52 per share on 10,281,295
weighted average shares and common stock equivalents, in the same period in
1998. The reduction in results were primarily driven by a decrease in
contribution margin to 4.48% down from 7.94% during the same period in the prior
year and the recognition of $2,519,521 in impairment of real estate assets.
"At year end 1999, we had a total of 260 single-family residences and 886
lots under development. This compares with 196 residences and 918 lots a year
earlier. Real estate under development was $79,070,791 as of December 31, 1999,
up $13,788,594 or 21.1% compared to $65,282,197 as December 31, 1998. This
increase reflects the ongoing development of ten projects, two of which were
acquired this year," Zaccaglin stated.
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<PAGE>
At December 31, 1999, shareholders' equity was $7,763,373, or $0.75 per
share on 10,289,852 weighted average shares and common stock equivalents
compared with $8,459,521, or $0.82 per share on 10,281,295 weighted average
shares and common stock equivalents in 1998. Cash balances of $1.4 million are
comparable with last year. Total trust deeds and notes payable was $73,076,171,
up $14,681,378 or 25.1% compared to $58,394,793 in 1998. The Company's
debt-to-equity ratio increased to 6.2 to 1, up from 4.3 to 1 in the prior year.
"The Company began development on three new developments during 1999,
McGuire Luxury Apartments, a 181 unit luxury apartment in San Diego, California,
Parc West Apartments, a 68 unit affordable apartment in Milpitas, California and
Montserrat Classics, a 105 lot development in Murrieta, California. All of the
company's eleven projects are presently under development except for the Parc
West Apartments, which is in design at this time. I look to 2000 as a year to
both increase revenues and to generate income from operations," 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.
(Table Follows)
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<PAGE>
CALPROP CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------- --------------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Development operations:
Real estate sales 10,703,402 10,612,910 52,598,849 33,071,722
Cost of real estate sales 10,224,409 9,725,559 50,242,115 30,444,198
------------ ------------ ------------ ------------
478,993 887,351 2,356,734 2,627,524
Recognition of impairment of real estate
under development -- -- (2,519,521) --
------------ ------------ ------------ ------------
Income (loss) from development operations 478,993 887,351 (162,787) 2,627,524
------------ ------------ ------------ ------------
Other income 27,447 27,873 107,610 87,405
Other expenses:
General and administrative expenses 742,611 467,111 2,309,225 1,752,909
Interest expense 12,780 5,768 70,304 135,081
Investment property holding costs -- -- -- --
------------ ------------ ------------ ------------
Total other expenses 755,391 472,879 2,379,529 1,887,990
Minority interests 117,037 26,195 1,249 232,633
------------ ------------ ------------ ------------
Income (loss) before benefit for income taxes (365,988) 416,150 (2,435,955) 594,306
Benefit for income taxes 1,716,627 (2,443,700) (1,683,373) (4,773,700)
------------ ------------ ------------ ------------
Net income (loss) ($2,082,615) $2,859,850 ($752,582) $5,368,006
Net income (loss) allocable to common stock ($2,082,615) $2,859,850 ($752,582) $5,368,006
Diluted income (loss) per share ($0.20) 0 ($0.07) $0.52
Weighted average shares of common stock 10,289,271 10,465,459 10,289,852 10,281,295
Units Sold:
Single-Family Homes 49 50 226 162
Townhomes 0 0 0 0
------------ ------------ ------------ ------------
Total 49 50 226 162
</TABLE>
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<PAGE>
CALPROP CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
Assets
1999 1998
-------------------------
<S> <C> <C>
REAL ESTATE UNDER DEVELOPMENT $79,070,791 $65,282,197
OTHER ASSETS:
Cash and cash equivalents 1,405,663 1,590,403
Deferred and other assets 6,500,000 4,800,000
Other assets 841,189 849,289
-------------------------
Total other assets 8,746,852 7,239,692
-------------------------
Total assets $87,717,643 $72,521,889
=========================
Liabilities and Stockholders' Equity
1999 1998
-------------------------
TRUST DEEDS AND NOTES PAYABLE $48,216,139 $37,524,507
RELATED PARTY NOTES 24,860,032 20,870,286
-------------------------
Total trust deeds and notes payable 73,076,171 58,394,793
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 6,391,621 5,056,010
WARRANTY RESERVES 358,287 284,624
-------------------------
Total liabilities 79,826,079 63,735,427
MINORITY INTEREST 228,191 326,941
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value; $1 stated value, 20,000,000 shares authorized;
authorized, 10,293,735 and 10,284,135 shares issued and
outstanding at December 31, 1999 and 1998, respectively 10,293,735 10,284,135
Additional paid-in capital 25,849,961 25,851,130
Deferred Compensation -170,327 -241,130
Stock Purchase Loans -496,934 -474,134
-------------------------
Accumulated deficit -27,713,062 -26,960,480
-------------------------
Total Equity 7,763,373 8,459,521
-------------------------
Total Stockholders' Equity and Liabilities $87,817,643 $72,521,889
=========================
</TABLE>
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