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Tarragon Corporation Affirms 2004 Guidance And Releases 2005 Earnings Forecast
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Wed Jan 05 07:35:28 2005 EST
NEW YORK, Jan 05, 2005 /PRNewswire-FirstCall via COMTEX/ --
Tarragon Corporation
(Nasdaq: TARR), a leading homebuilder specializing in the development and
marketing of high-density residential communities and a real estate investor
with a portfolio of approximately 14,000 apartments, today reaffirmed its
previous guidance for 2004, forecasting net income of $42 to $46 million, or
approximately $2.40 to $2.60 per share, versus net income for fiscal 2003 of
$31.2 million or $1.80 per share in each case on a fully diluted basis.
Tarragon Corporation simultaneously announced its 2005 earnings guidance.
Net income for fiscal 2005 is expected to be $75 to $80 million, or
approximately $3.85 to $4.10 per share, fully diluted, based on projected
total consolidated revenue of $475 to $525 million. Most of the growth in
earnings and revenue is from closings that are included in the $400 million
Homebuilding Division contract backlog. Homebuilding Division pretax net
income is expected to range from $110 to $115 million. Homebuilding Division
sales revenue, including revenue from unconsolidated joint ventures, is
projected to be $700 to $750 million with a gross margin over 24 percent.
Investment Division growth in 2005 will come from the completion and
lease-up of the 860 rental apartments currently under development, as well as
opportunistic acquisitions of existing communities such as the 510 apartment
portfolio in Manchester/West Haven, Connecticut, currently under purchase
contract. Moreover, based on higher occupancy and rent levels, especially in
Florida, Tarragon anticipates Investment Division net operating income,
including net operating income from unconsolidated joint ventures, of $65 to
$70 million, a 5 percent improvement over 2004.
Tarragon Chairman and Chief Executive Officer, William S. Friedman,
commented, "2004 was a banner year for the Homebuilding Division and 2005
should be even better. Our investments over the past 12 to 36 months, in both
product and people, are now bearing fruit. We look forward to continuing to
find and develop new projects as we realize revenues from our growing number
of active, for-sale communities." |
