WCI Communities Retains Financial Advisor
biz.yahoo.com
Monday February 12, 9:00 am ET
BONITA SPRINGS, Fla., Feb. 12, 2007 (PRIME NEWSWIRE) -- WCI Communities, Inc. (NYSE:WCI - News), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today announced that it has retained Goldman Sachs & Co. to assist the Board and senior management in a thorough review of the Company's business plans, capital structure, and growth prospects, with the objective of enhancing the company's value for all of its shareholders.
``Our Board of Directors is committed to maximizing value for all WCI shareholders,'' said Don E. Ackerman, Chairman of the Board. ``Consistent with that commitment, we have asked our financial advisors to help us identify financial, strategic, and operational alternatives through a systematic and comprehensive review process. The Board will evaluate the options that result from this process and determine whether to pursue any of those options based on their potential to deliver shareholder value.''
Jerry Starkey, President and CEO commented, ``During 2007, we expect our company to generate about $1 billion of free cash flow, in large part from the collection of our tower receivables, which will enable us to dramatically reduce our debt. We also are exploring the disposition of certain assets, which would further increase liquidity and reduce leverage. Once our receivables are collected and our debt is reduced, we believe our ability to enhance shareholder value through a variety of strategic alternatives, including additional stock repurchases and potentially the sale of our company, will be greatly improved.''
Starkey continued, ``We hope that over the months required to implement the above measures that overall demand for housing in our markets and across the country will begin to firm and display signs of improvement. Our finished lot and tower site inventory positions us well when the demand does materialize. In the meantime, we will continue implementing our strategic plan to maximize cash flow, reduce overhead expenses, lower direct construction costs and operate more efficiently through this period of lower consumer demand. The strength of the national economy and the powerful boomer demographics of WCI's typical consumer point to an eventual rebound in demand and excellent long term prospects for the business, notwithstanding today's cyclical trough.'' |
