WCI still unlocking shareholder value...lol
WCI posts $84 million loss
Builder says demand for condos light, contract cancellations high
news-press.com
The loss for Bonita Springs-based builder WCI Communities Inc. grew to $84.1 million in the quarter ended March 31, even as a few "courageous" buyers took advantage of bargains, executives said Wednesday.
The loss equals $2 a share, compared to a loss of $15.8 million, or 38 cents a share, in the same period a year ago.
Shares of WCI fell more than 15 percent after the results were announced, closing Wednesday at $2.62, down 48 cents from Tuesday's close.
President and chief executive Jerry Starkey said demand for the company's luxury homes and condominium tower units remained light and cancellations on existing contracts remained high.
"It continues to be a tough market with no sign of firming demand," Starkey said "Some smart and courageous buyers are snapping up bargains, mostly in Florida."
Starkey said the company wrote 97 new orders for tower units in Florida, up from 11 a year ago, but those orders were hindered by 56 other contract defaults, for a net gain of 41 units.
The orders were "spread throughout the state," with orders in Southwest Florida coming at The Colony and in towers near Marco Island, Starkey said. Discounts averaged about 30 percent.
"Each tower in each location is a unique situation," Starkey said.
WCI lost more than $500 million in 2007 as it wiped hundreds of millions off its books to reflect the falling value of the company's land, unsold homes and condominiums due to the collapsed Florida real estate market.
"Liquidity continues to be tight and will be tight in the future," Starkey said.
Starkey repeated a point from earlier this year, saying the company will likely have to negotiate with the holders of $125 million in notes that could be due in August.
Starkey declined to say what incentives the company might offer to the bond holders in lieu of calling for the cash. |
