bdc63
01-23-2007, 10:29 AM
CNBC has been talking about this story all morning. Thought some of you might find it interesting.
http://www.wcicommunities.com/investor.asp?pageID=investor&siteID=1000&vid=1000
WCI Communities Provides Preliminary Fourth Quarter Data
Bonita Springs, FL (January 23, 2007) – WCI Communities, Inc. (NYSE: WCI), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today provided an update on operations, including data on recently completed towers as well as preliminary sales figures and estimates of fourth quarter impairment and write-off charges.
"Results for the fourth quarter will be below prior expectations due to a higher level of defaults than expected in both our Traditional Homebuilding and Tower Homebuilding operations, longer tower construction cycles, and the recording of significant impairments and write-offs", said Jerry Starkey, President and CEO of WCI Communities. "The operating environment in Florida continued to be challenging during the fourth quarter and resulted in cancellations outnumbering new orders in that market. We continue to focus on reducing costs, maximizing cash flow, and positioning our company to withstand a prolonged downturn in housing demand."
During the fourth quarter, seven towers, consisting of 342 total units, were completed, including 306 units that were previously sold. To-date, the company has closed 246 of those units, and defaulted 18 units in the fourth quarter. The majority of the remaining 42 units in these buildings that are sold but have not yet closed are anticipated to close in the next several weeks. However, additional defaults are possible from these units as it typically takes 45 to 60 days after a tower is completed to gauge the actual number of defaults. The 42 units that have not yet closed are located in three buildings that were completed late in December - Mosaic in Miami Beach (21 units), Tuscany at Hammock Dunes in Palm Coast (15 units) and Costa Verano in Jacksonville Beach (6 units). Units that default prior to the company's reporting of earnings will be reflected in the fourth quarter financial statements as will an estimate of additional defaults from units remaining sold but not closed, which will be reflected in the company's reserves. The company's practice is to retain customer deposits up to the legal amount allowable on defaulted units.
http://www.wcicommunities.com/investor.asp?pageID=investor&siteID=1000&vid=1000
WCI Communities Provides Preliminary Fourth Quarter Data
Bonita Springs, FL (January 23, 2007) – WCI Communities, Inc. (NYSE: WCI), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today provided an update on operations, including data on recently completed towers as well as preliminary sales figures and estimates of fourth quarter impairment and write-off charges.
"Results for the fourth quarter will be below prior expectations due to a higher level of defaults than expected in both our Traditional Homebuilding and Tower Homebuilding operations, longer tower construction cycles, and the recording of significant impairments and write-offs", said Jerry Starkey, President and CEO of WCI Communities. "The operating environment in Florida continued to be challenging during the fourth quarter and resulted in cancellations outnumbering new orders in that market. We continue to focus on reducing costs, maximizing cash flow, and positioning our company to withstand a prolonged downturn in housing demand."
During the fourth quarter, seven towers, consisting of 342 total units, were completed, including 306 units that were previously sold. To-date, the company has closed 246 of those units, and defaulted 18 units in the fourth quarter. The majority of the remaining 42 units in these buildings that are sold but have not yet closed are anticipated to close in the next several weeks. However, additional defaults are possible from these units as it typically takes 45 to 60 days after a tower is completed to gauge the actual number of defaults. The 42 units that have not yet closed are located in three buildings that were completed late in December - Mosaic in Miami Beach (21 units), Tuscany at Hammock Dunes in Palm Coast (15 units) and Costa Verano in Jacksonville Beach (6 units). Units that default prior to the company's reporting of earnings will be reflected in the fourth quarter financial statements as will an estimate of additional defaults from units remaining sold but not closed, which will be reflected in the company's reserves. The company's practice is to retain customer deposits up to the legal amount allowable on defaulted units.