First Quarter Financial Highlights:
* Net loss: $15.8 million * Basic and diluted EPS: loss of $0.38 * Revenues: $340.6 million - down 40.3% * Net new orders: 237 - down 41.0% * Backlog at March 31, 2007: $790.7 million * Net cash provided by operating activities: $102.4 million
BONITA SPRINGS, Fla., May 8, 2007 (PRIME NEWSWIRE) -- WCI Communities, Inc. (NYSE:WCI), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today reported its results for the first quarter of 2007. For the three months ended March 31, 2007, WCI reported a net loss of $15.8 million, compared with net income of $40.2 million in the first quarter of 2006, while diluted earnings per share (EPS) declined to a loss of $0.38 versus income of $0.89 in the same period a year ago. Revenues for the first quarter of 2007 were $340.6 million, compared with $570.7 million for the first quarter of 2006, a 40.3% decrease. The aggregate number of net unit orders for the quarter declined 41.0% to 237 while the aggregate net value of Traditional and Tower Homebuilding orders for the quarter fell 53.4% over the same period a year ago to $156.1 million.
"Lower margins in our Traditional and Tower Divisions as well as fewer home closings during the quarter resulted in a net loss for the first quarter," said Jerry Starkey, President and CEO of WCI Communities. "While cancellations of traditional home orders receded during the quarter to historical levels of around 20%, tower defaults in some buildings have been higher than our prior estimates. Because of this, we have increased our tower default reserve to cover an approximate 15% default rate for towers closing in 2007, even though our actual experience associated with 14 towers completed in 2006, including units closing in early 2007, resulted in a 6.1% default rate for sold units in those buildings. Due to the number of units in buildings now closing and market conditions, it is taking a longer period of time to close many of the tower units than it has historically, but based upon the contract holders' actions, statements and other factors, the revised default reserve represents our best estimate of the ultimate outcome at this time."
Starkey continued, "Our peak selling season in Florida this year was a disappointment, even though we did experience a sequential increase in new orders in the first quarter of 2007 compared to the fourth quarter of 2006, and saw significant improvement in our Traditional Homebuilding cancellation rates. Our Mid-Atlantic Division fared better than our other operations, experiencing substantially better net order comparisons and a cancellation percentage rate of around 10%.
"We continue to emphasize maximizing cash flow and reducing overhead and product costs. In the first quarter, we achieved a reduction in average home cost of about $6,300, thereby reaching a cumulative reduction of approximately $22,000 per home since the beginning of 2006. This is good progress towards our goal of saving $42,000 per home by the end of 2007. These average savings per house benefit our cost structure on homes to be built during 2007 and thereafter but do not benefit completed homes that are unsold or in backlog. We also continue to expect to realize approximately $1 billion of cash flow from operations, generated primarily from the collection of tower receivables. Proceeds from land and recreational amenity sales are expected to contribute to cash flow and make up any variance from our previous estimates of tower receivable collections and cash flow. While we did not have any land or recreational amenity sales in the first quarter, we closed the cash sale of a $47.5 million recreational facility in April of this year."
Traditional Homebuilding
First quarter 2007 revenues for Traditional Homebuilding, including lot sales, fell 25.4% to $214.2 million from $287.2 million for the first quarter of 2006. The company closed 306 homes compared with 492 for the same period a year ago. Florida revenues, excluding lots sales, totaled $137.2 million or 64.1% of total Traditional Homebuilding revenues versus $232.2 million or 82.8% for the first quarter of 2006. Revenues from WCI's Northeast Division accounted for 27.7% of Traditional Homebuilding revenues during the first quarter of 2007 versus 9.9% during the same period a year ago and the company's Mid-Atlantic Division accounted for 8.2% and 7.3% for the first quarters of 2007 and 2006, respectively. Gross margin as a percentage of revenue for Traditional Homebuilding decreased 620 basis points to 16.6% for the first quarter of 2007 from 22.8% a year ago, due to substantially lower margins achieved on the sale of finished spec inventory. These spec home closings accounted for 48% of the closings during the quarter and produced an average gross margin percentage of revenue of 9.3%, less than half the 19.9% gross margin percentage that was achieved on homes that were delivered out of the first quarter beginning backlog.
For the first quarter of 2007, the number of gross and net orders declined 28.0% and 29.7%, respectively. The value of Traditional Homebuilding gross orders declined 32.7% to $212.4 million while the value of net orders dropped 40.1% to $158.9 million. Cancellations during the quarter totaled 60, down from 75 during the same period a year ago and 249 in the fourth quarter of 2006. The average price for Traditional Homebuilding net orders for the first quarter of 2007 fell 14.8% to $651,000 compared with $764,000 for the first quarter of 2006, due to mix changes and a higher percentage of discounts during the quarter -- approximately 15% compared to approximately 2% on orders in the same period a year ago. In total, 139 spec homes were sold during the quarter, with an average projected gross margin as a percent of revenues that was over 1,000 basis points below the average gross margin percentage of 17% to 18% projected for the 105 to-be-built orders for the quarter. The company's total spec inventory at the end of the quarter, completed and in-process and including models, was 576 versus 691 at the end of the fourth quarter of 2006.
Traditional Homebuilding backlog at March 31, 2007 was $631.3 million, down 46.5% over the first quarter 2006's $1.18 billion. The average projected gross margin in backlog at the end of the quarter was approximately 20%.
Tower Homebuilding
For the three months ended March 31, 2007, revenues in the Tower Homebuilding Division decreased 66.3% to $74.0 million from $219.4 million for the same period a year ago. Fewer sales in buildings under construction, higher defaults, and less progression of percentage of completion than expected from the 11 towers under construction during the first quarter of 2007 contributed to the decline in revenues. In comparison, there were 24 towers under construction and recognizing revenue during the first quarter of 2006. Tower Homebuilding gross margin as a percentage of revenue declined 2,370 basis points to 1.1% for the quarter from 24.8% for the three months ended March 31, 2006. During each quarter, the company reviews the revenue and cost estimates for each tower under construction and makes adjustments to reflect actual increases or decreases in current and expected future revenues and costs. For the first quarter of 2007, $19.6 million of unfavorable adjustments to estimates were made related to towers under construction, which were recorded as additional costs of Tower revenues for the quarter. These adjustments consisted of a $7.4 million increase in the tower default reserve to account for an estimated 15% default rate for future tower closings, a $4.9 million gross margin impact and a reduction of revenue of $21.6 million on 19 defaulted contracts for which revenue and gross margin was reversed this quarter, a $6.1 million adjustment for additional estimated interest and insurance costs anticipated associated with longer tower construction cycles, and $1.2 million of other adjustments. Absent these adjustments, Tower gross margin as a percent of revenue would have totaled 21.3%.
Tower Homebuilding net orders for the first quarter of 2007 totaled negative seven (comprised of 12 new contracts less 19 defaults) versus 55 in the first quarter of 2006. No new towers began converting to contract during either period. Tower Homebuilding backlog at March 31, 2007 totaled $159.4 million, a 77.5% decrease from the $708.2 million backlog at March 31, 2006. For the balance of the year, six towers, consisting of 977 units and with a projected sell-out value of approximately $1.04 billion, are expected to be completed. Those towers are over 88% sold.
During the quarter, the company completed and delivered three towers, which contained 481 residences, of which 411 were sold. Of the sold units, 272 have closed through April 30 and 19 have defaulted. The company has reserved for an estimated 62 additional defaults in these buildings. In addition, the company experienced another 5 defaults in other towers recently closed or under construction.
Real Estate Services
Revenues for the Real Estate Services Division for the first quarter of 2007 were $25.6 million, a 15.8% decrease from the $30.4 million recorded for the same period a year ago. The decline was primarily due to the continued slow market for new and resale homes during the quarter. Transactions for Prudential Florida WCI Realty declined 22.8% over the same period a year ago. Gross margin as a percentage of revenue for the period was 8.2% compared with 9.1% in the first quarter of 2006.
Other Items
Revenues for the Amenities Division for the first quarter 2007 were $25.1 million, a 5.3% decrease from the $26.5 million for the same period a year ago. Gross margin as a percent of revenue increased to 9.9% for the first quarter of 2007 versus 6.5% in the first quarter of 2006 despite a $414,000 asset impairment charge for the abandonment of plans to develop a marina in a joint venture.
Selling, general, and administrative expenses including real estate taxes (SG&A) declined $4.9 million to $46.9 million for the first quarter, versus $51.8 million a year ago, due primarily to careful cost controls offset in part by $3.3 million of professional fees paid related to the company's ongoing proxy contest and preparations for a possible sale of the Company. As a percentage of revenue, SG&A increased to 13.8%, up from 9.1% in the first quarter of the previous year largely due to lower revenues in 2007.
Cash Flow/Financial Position/Balance Sheet
For the three months ended March 31, 2007, net cash generated from operating activities totaled $102.4 million compared with cash used of $144.1 million in the same period a year ago. Cash flow benefited from the 254 tower unit closings and significantly lower land purchases and land development expenditures, which together totaled $38.8 million versus $85.9 million in the year ago period. The company continues to expect a significant net inflow of cash in 2007 from the expected closing of an additional six towers during the year, which is expected to be the primary driver behind the company's expected reduction of its net debt from approximately $1.9 billion at March 31, 2007 to approximately $1.0 billion by the end of the year.
The Company amended its senior unsecured revolving credit facility (the "SURCA") and its senior unsecured term loan facility (the "Term Loan") on April 5, 2007, with an effective date of March 31, 2007. The amendments provide temporary reductions of the fixed charges coverage ratios and an increase to the allowed unsold home inventory level in exchange for a reduction in overall credit capacity and a reduced maximum leverage limitation, which are consistent with the Company's de-leveraging strategy, and increased pricing during the modification period. The Company also agreed to provide certain lien rights to its lenders if it violates the amended covenants and, at that same time, is unable to meet a minimum liquidity test. Total liquidity, measured as the sum of cash plus available capacity under the unsecured revolving facility, totaled approximately $462.8 million at March 31, 2007. In addition, letters of credit of $40.3 million were outstanding as of March 31, 2007. The maximum amount now available to borrow under the company's senior unsecured revolving credit facility is $850 million with a further reduction to $800 million on October 1, 2007. The SURCA matures in June 2010 and the Term Loan matures in December 2010.
The ratio of net debt to net capitalization increased to 65.5% compared with 58.0% at March 31, 2006 but decreased from 66.3% at December 31, 2006. The company continues to expect its net debt to net capitalization rate to approximate 50% by the end of 2007 due to the expected cash inflows from the realization of tower receivables as well as land sales and recreational amenity sales.
Conference Call
WCI will conduct a conference call today at 10:00 AM EST in conjunction with this release. The call will be broadcast live at http://www.wcicommunities.com in the Investor Relations area or can be accessed by telephone at (480) 629-9041 and asking for the WCI Communities conference call, reference code 11089451. A replay will be available after the call for at least the next 3 months on the company's website and for 36 hours by dialing (303) 590-3000 and entering conference code 11089451. A slide presentation will accompany the call and can be accessed on the company's website in the Investor Relations section.
About WCI
WCI Communities, Inc., named America's Best Builder in 2004 by the National Association of Home Builders and Builder Magazine, has been creating amenity-rich, master-planned lifestyle communities since 1946. Florida-based WCI caters to primary, retirement, and second-home buyers in Florida, New York, New Jersey, Connecticut, Maryland and Virginia. The company offers traditional and tower home choices with prices from the high-$100,000s to more than $10 million and features a wide array of recreational amenities in its communities. In addition to homebuilding, WCI generates revenues from its Prudential Florida WCI Realty Division, and title businesses, and its recreational amenities, as well as through land sales and joint ventures. The company currently owns and controls developable land on which the company plans to build over 19,500 traditional and tower homes.
For more information about WCI and its residential communities visit www.wcicommunities.com
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Forward-Looking Statement
Certain information included herein and in other company reports, Securities and Exchange Commission filings, statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about the company's anticipated operating results, financial resources, ability to acquire land, ability to sell homes and properties, ability to deliver homes from backlog, and ability to secure materials and subcontractors. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other company reports, filings, statements and presentations. These risks and uncertainties include WCI's ability to compete in real estate markets where we conduct business; the availability and cost of land in desirable areas in its geographic markets and elsewhere and our ability to expand successfully into those areas; WCI's ability to obtain necessary permits and approvals for the development of its lands; the availability of capital to WCI and our ability to effect growth strategies successfully; WCI's ability to pay principal and interest on its current and future debts; WCI's ability to comply with outstanding debt agreements/covenants; S&P and/or Moody's downgrades; WCI's ability to maintain or increase historical revenues and profit margins; availability of labor and materials and material increases in labor and material costs; increases in interest rates and availability of mortgage financing; the level of consumer confidence; increased customer cancellations or defaults; adverse legislation or regulations; unanticipated litigation or legal proceedings; changes in accounting rules, including changes in percentage of completion accounting; natural disasters; availability and cost of insurance and surety bonds, lack of visibility in the marketplace and inability to gauge timing of market turnarounds; or deterioration and changes in general economic, real estate and business conditions. If one or more of the assumptions underlying our forward-looking statements proves incorrect, then the company's actual results, performance or achievements could differ materially from those expressed in, or implied by the forward-looking statements contained in this report. Therefore, we caution you not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This statement is provided as permitted by the Private Securities Litigation Reform Act of 1995.
WCI Communities, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
March 31, December 31,
2007 2006
----------- -------------
Assets
Cash and cash equivalents $ 35,977 $ 41,876
Contracts receivable 1,070,548 1,269,549
Real estate inventories 1,961,547 1,955,793
Property and equipment 270,815 274,720
Other assets 282,364 289,921
----------- ------------
Total assets $3,621,251 $3,831,859
=========== ============
Liabilities and Shareholders' Equity
Accounts payable, accruals and other
liabilities $ 761,591 $ 862,353
----------- ------------
Debt obligations:
Senior unsecured credit facility 423,200 503,846
Senior unsecured term note 300,000 300,000
Mortgages and notes payable 347,419 363,261
Senior subordinated notes 525,000 525,000
Junior subordinated notes 165,000 165,000
Contingent convertible senior
subordinated notes 125,000 125,000
----------- ------------
Total debt obligations 1,885,619 1,982,107
----------- ------------
Total shareholders' equity 974,041 987,399
----------- -------------
Total liabilities and shareholders'
equity $3,621,251 $3,831,859
=========== ============
Other Balance Sheet Data
Debt $1,885,619 $1,982,107
Shareholders' equity 974,041 987,399
----------- ------------
Capitalization $2,859,660 $2,969,506
=========== ============
Ratio of debt to capitalization 65.9% 66.7%
Debt, net of cash and cash
equivalents $1,849,642 $1,940,231
Shareholders' equity 974,041 987,399
----------- ------------
Capitalization, net of cash and
cash equivalents $2,823,683 $2,927,630
=========== ============
Ratio of net debt to net
capitalization 65.5% 66.3%
Shareholders' equity per share $ 23.19 $ 23.57
WCI Communities, Inc.
Selected Revenues and Earnings Information
(Dollars in thousands, except per share data)
For the three months ended
March 31,
-----------------------------
2007 2006
----------- -----------
REVENUES
Homebuilding:
Homes $ 214,073 $ 280,262
Lots 136 6,914
----------- ----------
Total traditional 214,209 287,176
Towers 73,985 219,395
----------- ----------
Total homebuilding 288,194 506,571
Real estate services 25,621 30,437
Amenity membership and operations 25,051 26,539
Land sales -- 5,152
Other 1,767 2,047
----------- ----------
Total revenues 340,633 570,746
----------- ----------
GROSS MARGIN
Homebuilding:
Homes 35,536 63,150
Lots (12) 2,193
----------- ----------
Total traditional 35,524 65,343
Towers 836 54,510
----------- ----------
Total homebuilding 36,360 119,853
Real estate services 2,102 2,776
Amenity membership and operations 2,470 1,730
Land sales (69) 3,505
Other 72 114
----------- ----------
Total gross margin 40,935 127,978
----------- ----------
OTHER INCOME AND EXPENSES
Equity in (earnings) losses from
joint ventures (786) 200
Other income (488) (1,455)
Hurricane recoveries (1,513) --
Selling, general and
administrative, including real
estate taxes, net 46,904 51,771
Depreciation and amortization 5,655 6,235
Interest expense, net 16,364 3,205
Expenses related to early
repayment of debt -- 455
----------- ----------
(Loss) income before minority
interests and income taxes (25,201) 67,567
Minority interests 593 1,341
Income tax (benefit) expense (9,983) 25,984
----------- ----------
Net (loss) income $ (15,811) $ 40,242
=========== ==========
(LOSS) EARNINGS PER SHARE
Basic $ (0.38) $ 0.91
Diluted $ (0.38) $ 0.89
WEIGHTED AVERAGE NUMBER OF SHARES
Basic 41,920 44,129
Diluted 41,920 45,165
OPERATING DATA
Interest incurred, excluding
warehouse credit facility $ 35,389 $ 25,430
Interest included in cost of
sales $ 13,775 $ 15,954
WCI Communities, Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
For the three months ended
March 31,
-------------------------------
2007 2006
---------- ------------
Cash flows from operating
activities:
Net (loss) income $(15,811) $ 40,242
Asset impairment losses and land
acquisition termination costs 1,059 --
Increase in real estate
inventories (2,647) (84,576)
Decrease (Increase) in contracts
receivable 199,001 (120,866)
Decrease in customer deposits (56,084) (8,861)
Decrease in restricted cash 15,930 40,852
Decrease in accounts payable and
other liabilities (40,379) (25,515)
All other 1,349 14,673
--------- ---------
Net cash provided by (used in)
operating activities 102,418 (144,051)
--------- ---------
Cash flows from investing
activities:
Additions to property and
equipment, net (7,749) (17,171)
Other (37) (12,438)
--------- ---------
Net cash used in investing
activities (7,786) (29,609)
--------- ---------
Cash flows from financing
activities:
Net (repayments) borrowings under
debt obligations (96,880) 187,351
All other (3,651) (25,918)
--------- ---------
Net cash (used in) provided by
financing activities (100,531) 161,433
--------- ---------
Net decrease in cash and cash
equivalents $ (5,899) $(12,227)
========= =========
SUPPLEMENTAL INFORMATION
Reconciliation of cash flows
from operating activities to
EBITDA (1)
Net cash provided by (used in)
operating activities 102,418 $(144,051)
Interest expense, net 16,364 3,205
Interest included in cost of
sales 13,775 15,954
Expenses related to early
repayment of debt -- 455
Income tax (benefit) expense (9,983) 25,984
Depreciation and amortization 5,655 6,235
Increase in real estate
inventories 2,647 84,576
(Decrease) increase in
contracts receivable (199,001) 120,866
Decrease in customer deposits 56,084 8,861
Decrease in restricted cash (15,930) (40,852)
Decrease in accounts payable
and other liabilities 40,379 25,515
All other (1,349) (14,673)
-------- ---------
Total EBITDA $ 11,059 $ 92,075
======== =========
(1) Earnings before interest, taxes, depreciation and amortization
(EBITDA) is not a generally accepted accounting principle (GAAP)
financial statement measurement. EBITDA should not be considered
an alternative to cash flows from operations determined in
accordance with GAAP as a measure of liquidity. The Company's
management believes that EBITDA is an indication of the Company's
ability to generate funds from operations that are available to
pay principal and interest on debt obligations and to meet other
cash needs. A reconciliation of cash from operating activities to
EBITDA, the most directly comparable GAAP measure, is provided
above.
WCI Communities, Inc.
Homebuilding Operational Data
(Dollars in thousands)
For the three months ended
March 31,
---------------------
2007 2006
--------- ---------
Combined Traditional and Tower Homebuilding
Homes Closed (Units)* 560 601
Net New Orders (Units) 237 402
Net Contract Values of New Orders $156,102 $334,764
Average Selling Price Per New Order, Net $ 659 $ 833
Average Selling Price Per New Order, Gross $ 740 $ 808
Traditional Homebuilding $ 699 $ 748
Tower Homebuilding $ 1,802 $ 1,266
Traditional Homebuilding
Homes Closed (Units)
Florida 183 427
Northeast U.S. 110 51
Mid-Atlantic U.S. 13 14
--------- ---------
Total 306 492
--------- ---------
Revenues, excluding lot revenues
Florida $ 137,214 $ 232,190
Northeast U.S. 59,269 27,749
Mid-Atlantic U.S. 17,590 20,323
--------- ---------
Total $ 214,073 $ 280,262
--------- ---------
Average Selling Price Per Home Closed
Florida $ 750 $ 544
Northeast U.S. 539 544
Mid-Atlantic U.S. 1,353 1,452
--------- ---------
Total $ 700 $ 570
--------- ---------
Gross New Orders (Units)
Florida 215 307
Northeast U.S. 60 98
Mid-Atlantic U.S. 29 17
--------- ---------
Total 304 422
--------- ---------
Cancellations (Units)
Florida (48) (55)
Northeast U.S. (9) (9)
Mid-Atlantic U.S. (3) (11)
--------- ---------
Total (60) (75)
--------- ---------
Net New Orders (Units)
Florida 167 252
Northeast U.S. 51 89
Mid-Atlantic U.S. 26 6
--------- ---------
Total 244 347
--------- ---------
Gross Contract Values of New Orders
Florida $ 143,068 $ 241,118
Northeast U.S. 35,792 49,558
Mid-Atlantic U.S. 33,506 24,946
--------- ---------
Total $ 212,366 $ 315,622
--------- ---------
Contract Values of Cancellations
Florida $ (43,865) $ (32,875)
Northeast U.S. (5,046) (4,569)
Mid-Atlantic U.S. (4,523) (13,068)
--------- ---------
Total $ (53,434) $ (50,512)
--------- ---------
Net Contract Values of New Orders
Florida $ 99,203 $ 208,243
Northeast U.S. 30,746 44,989
Mid-Atlantic U.S. 28,983 11,878
--------- ---------
Total $158,932 $ 265,110
--------- ---------
Gross Average Selling Price Per New
Order
Florida $ 665 $ 785
Northeast U.S. 597 506
Mid-Atlantic U.S. 1,155 1,467
--------- ---------
Total $ 699 $ 748
--------- ---------
Tower Homebuilding
Homes Closed (Units)
Florida 254 109
--------- ---------
Total 254 109
--------- ---------
Revenues
Florida $ 55,434 $ 212,508
Northeast U.S. 18,551 6,887
--------- ---------
Total $ 73,985 $ 219,395
--------- ---------
Gross New Orders (Units)
Florida 11 49
Northeast U.S. 1 6
--------- ---------
Total 12 55
--------- ---------
Defaults (Units)
Florida (17) --
Northeast U.S. (2) --
--------- ---------
Total (19) --
--------- ---------
Net New Orders (Units)
Florida (6) 49
Northeast U.S. (1) 6
--------- ---------
Total (7) 55
--------- ---------
Gross Contract Values of New Orders
Florida $ 20,510 $ 61,585
Northeast U.S. 1,113 8,069
--------- ---------
Total $ 21,623 $ 69,654
--------- ---------
Contract Values of Defaults
Florida $ (22,846) $ --
Northeast U.S. (1,607) --
--------- ---------
Total $ (24,453) $ --
--------- ---------
Net Contract Values of New Orders
Florida $ (2,336) $ 61,585
Northeast U.S. (494) 8,069
--------- ---------
Total $ (2,830) $ 69,654
--------- ---------
Gross Average Selling Price Per New
Order
Florida $ 1,865 $ 1,257
Northeast U.S. 1,113 1,345
--------- ---------
Total $ 1,802 $ 1,266
--------- ---------
Towers under construction recognizing
revenue during the period 11 24
March 31,
----------------------
2007 2006
----------------------
Combined Traditional and Tower
Homebuilding
Aggregate Backlog Contract Values,
Traditional and Tower
Homebuilding $ 790,685 $ 1,884,300
Traditional Homebuilding
Backlog (Units) 808 1,552
Backlog Contract Values $ 631,265 $ 1,176,104
Tower Homebuilding
Cumulative Units in Backlog 1,036 1,816
Cumulative Contract Values $1,255,648 $ 1,958,414
Less: Cumulative Revenues
Recognized (1,096,228) (1,250,218)
---------- -----------
Backlog Contract
Values $ 159,420 $ 708,196
========== ===========
* The Company uses the percentage of completion method to
recognize revenue on sold tower units. Accordingly, the
closing of tower homes corresponds with the collection of
contracts receivable.
2006/2007 Tower Profile (as of 3/31/07)
# of
Units Projected
in Sell-out % % Average
Bldg Value Sold Complete Deposit
---------------------------------------------------------------------
Closed to Date
Anchorage at
Jupiter Yacht
Club 34 $32M 100% 100% 20%
Commodore at
Jupiter Yacht
Club 22 $21M 100% 100% 20%
San Andres at
Lost Key 45 $28M 100% 100% 18%
Serano at
Hammock Bay 116 $68M 100% 100% 20%
Navona at The
Colony 100 $61M 100% 100% 20%
Santo Amaro at
Lost Key 45 $27M 96% 100% 18%
LaSalbadora at
Lost Key 45 $26M 82% 100% 17%
One Singer
Island 15 $48M 80% 100% 20%
Casa at
Castella (The
Colony) 24 $24M 38% 100% 16%
Mansion at
Castella (The
Colony) 24 $25M 63% 100% 15%
Villa at
Castella (The
Colony) 24 $27M 42% 100% 17%
Costa Verano at
Jacksonville
Beach 100 $94M 95% 100% 20%
Tuscany at
Hammock Dunes 64 $82M 88% 100% 20%
Mosaic at Miami
Beach 91 $124M 97% 100% 20%
Resort at Singer
Island Condo 66 $106M 95% 100% 20%
Resort at Singer
Island Condo/
Hotel* 229 $152M 100% 100% 20%
Lesina at
Hammock Bay 116 $130M 56% 100% 19%
The Galia at
Lost Key Marina 70 $50M 56% 100% 19%
---------------------------------------------------------------------
Totals 1,230 $1,125M 87% 100% 18%
=====================================================================
Under Construction
Le Jardin at
Hammock Dunes 26 $67M 73% 87% 18%
San Anton at
Lost Key 54 $38M 72% 97% 19%
Castillo at
Westshore 80 $81M 90% 95% 18%
One Bal Harbour
Condo 185 $377M 100% 95% 19%
One Bal Harbour
Condo/Hotel* 115 $111M 100% 96% 20%
The Watermark 206 $233M 85% 73% 20%
Florencia at
The Colony 116 $123M 79% 90% 19%
Oceanside B 186 $238M 63% 67% 18%
---------------------------------------------------------------------
Totals 968 $1,268M 84% 88% 19%
=====================================================================
Initial Tower Expected
Contract Construction Tower
HUD Conversion Start Closing
Bldg @ Date Date Date(t)
----------------------------------------------------------------
Closed to Date
Anchorage at
Jupiter Yacht
Club No 2Q 2004 2Q 2004 Jan-06
Commodore at
Jupiter Yacht
Club No 2Q 2004 2Q 2004 Jan-06
San Andres at
Lost Key No 4Q 2004 4Q 2004 Feb-06
Serano at
Hammock Bay No 4Q 2004 3Q 2004 Apr-06
Navona at The
Colony Yes 2Q 2004 2Q 2004 May-06
Santo Amaro at
Lost Key No 4Q 2004 4Q 2004 Jun-06
LaSalbadora at
Lost Key No 4Q 2004 4Q 2004 Aug-06
One Singer
Island No 2Q 2004 3Q 2004 Nov-06
Casa at
Castella (The
Colony) Yes 3Q 2004 1Q 2005 Nov-06
Mansion at
Castella (The
Colony) Yes 1Q 2005 1Q 2005 Nov-06
Villa at
Castella (The
Colony) Yes 2Q 2005 1Q 2005 Nov-06
Costa Verano at
Jacksonville
Beach No 4Q 2004 3Q 2004 Dec-06
Tuscany at
Hammock Dunes No 4Q 2004 2Q 2005 Dec-06
Mosaic at Miami
Beach No 3Q 2004 4Q 2004 Dec-06
Resort at Singer
Island Condo Yes 3Q 2004 3Q 2004 Mar-07
Resort at Singer
Island Condo/
Hotel* Yes 3Q 2004 3Q 2004 Mar-07
Lesina at
Hammock Bay Yes 2Q 2005 3Q 2005 Mar-07
The Galia at
Lost Key Marina No 4Q 2005 4Q 2005 Mar-07
--------------------------------------------------------------
Totals
==============================================================
Under Construction
Le Jardin at
Hammock Dunes No 4Q 2005 4Q 2005 May - Jun 07
San Anton at
Lost Key No 2Q 2005 3Q 2005 May - Jun 07
Castillo at
Westshore Yes 3Q 2005 4Q 2005 Jun - Jul 07
One Bal Harbour
Condo Yes 4Q 2003 2Q 2004 Aug - Sept 07
One Bal Harbour
Condo/Hotel* Yes 4Q 2004 2Q 2004 Aug - Sept 07
The Watermark Yes 2Q 2005 3Q 2005 Sept- Oct 07
Florencia at
The Colony Yes 3Q 2005 3Q 2005 Oct - Nov 07
Oceanside B Yes 3Q 2005 4Q 2005 Feb - Mar 08
---------------------------------------------------------------------
Totals
=====================================================================
* Does not count as a separate tower
@ In the event of a default in a HUD building, the company may retain
no more than 15% of the total purchase price of the unit. Any
additional deposit must be returned to the buyer. NJ limits
deposit retention to 10% of total sales price plus options and
upgrades costs, not to exceed a total of 15%.
(t) Expected closing date based on current construction schedule.
Summary of Land Controlled
March 31, 2007
Remaining Units in Value in Spec
Planned Backlog as Backlog as Units
Region Units of 3/31/07 of 3/31/07 in WIP
--------------------------------------------------------------------
Traditional
Homebuilding
(Including Lots)
Florida
Miami /
Ft. Lauderdale 1,391 303 $ 265.7 47
Naples /
Ft. Myers 4,594 113 66.5 96
Palm Beach /
Indian River 191 14 13.3 3
Palm Coast /
Jacksonville 24 - - 5
Perdido Key 94 - - 11
Tampa / Sarasota 4,410 162 135.9 19
Mid-Atlantic 405 43 58.9 3
Northeast 2,151 173 91.0 12
--------------------------------------------------------------------
Traditional
Homebuilding
Total 13,260 808 631.3 196
Tower Homebuilding
Florida
Miami /
Ft. Lauderdale 1,152 422 71.1 68
Naples /
Ft. Myers 1,178 135 10.8 24
Palm Beach /
Indian River 516 133 -- --
Palm Coast /
Jacksonville 295 34 25.9 7
Perdido Key 1,536 64 0.8 15
Tampa / Sarasota 869 72 3.7 8
Mid-Atlantic 284 -- -- --
Northeast 480 176 47.2 30
--------------------------------------------------------------------
Tower Homebuilding
Total 6,310 1,036 159.4 152
Total
Homebuilding
Florida
Miami /
Ft. Lauderdale 2,543 725 336.8 115
Naples /
Ft. Myers 5,772 248 77.2 120
Palm Beach /
Indian River 707 147 13.3 3
Palm Coast /
Jacksonville 319 34 25.9 12
Perdido Key 1,630 64 0.8 26
Tampa / Sarasota 5,279 234 139.6 27
Mid-Atlantic 689 43 58.9 3
Northeast 2,631 349 138.2 42
--------------------------------------------------------------------
Total
Homebuilding
Total 19,570 1,844 $ 790.7 348
====================================================================
Finished
Spec and Total
Model Units %
Region Units Remaining Owned
--------------------------------------------------------------------
Traditional
Homebuilding
(Including Lots)
Florida
Miami /
Ft. Lauderdale 76 1,023 100%
Naples /
Ft. Myers 97 4,330 100%
Palm Beach /
Indian River 19 166 100%
Palm Coast /
Jacksonville 19 14 100%
Perdido Key 1 82 100%
Tampa / Sarasota 129 4,170 53%
Mid-Atlantic 25 241 100%
Northeast 14 1,951 77%
-----------------------------------------------------------------
Traditional
Homebuilding
Total 380 11,977 80%
Tower Homebuilding
Florida
Miami /
Ft. Lauderdale 4 662 85%
Naples /
Ft. Myers 89 1,019 100%
Palm Beach /
Indian River 9 321 55%
Palm Coast /
Jacksonville 15 254 100%
Perdido Key 41 1,457 100%
Tampa / Sarasota - 789 82%
Mid-Atlantic - 284 100%
Northeast - 274 43%
-----------------------------------------------------------------
Tower
Homebuilding
Total 158 5,060 87%
Total Homebuilding
Florida
Miami /
Ft. Lauderdale 80 1,685 93%
Naples /
Ft. Myers 186 5,349 100%
Palm Beach /
Indian River 28 487 67%
Palm Coast /
Jacksonville 34 268 100%
Perdido Key 42 1,539 100%
Tampa / Sarasota 129 4,959 57%
Mid-Atlantic 25 525 100%
Northeast 14 2,225 71%
-----------------------------------------------------------------
Total
Homebuilding
Total 538 17,037 82%
=================================================================
Remaining Planned Units
March 31, 2007
Total
Owned Optioned Controlled
-----------------------------------------
Traditional
Homebuilding 10,671 2,589 13,260
Tower
Homebuilding 5,474 836 6,310
-----------------------------------------------------------
Total
Homebuilding 16,145 3,425 19,570
===========================================================