BONITA SPRINGS, Fla., March 4, 2008 (PRIME NEWSWIRE) -- WCI Communities, Inc. (NYSE:WCI), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today announced that it has scheduled its fourth quarter earnings release and conference call for March 17, 2008. The company expects to issue the earnings press release before the market opens and Management will host a conference call on that same day commencing at 10 a.m. EDT. The company also provided a partial update of certain business operations and expected financial performance for the fourth quarter of 2007.
"WCI generated approximately $160 to $170 million of cash flow from operating and investing activities in the fourth quarter and $220 to $230 million for the full year. Our earnings for the quarter and full year will reflect the very poor operating conditions that persist in our markets and will also include significant write downs," said Jerry Starkey, President and CEO of WCI Communities. Although our results disclosed herein are still subject to change, the company expects to record a pre-tax loss for the fourth quarter of 2007 in the range of $410 to $460 million. This loss includes impairment charges of approximately $335 to $350 million in the fourth quarter, composed of impairments to our land and finished inventory of unsold traditional and tower homes, amenities and other assets, abandoned option deposits and related costs, and goodwill write downs. During the fourth quarter, we also concluded that due to the uncertainty in the market regarding defaults and future absorption, one of our Florida towers, Oceanside, no longer qualified for percent of completion accounting, and we therefore fully reserved all of the income recognized on that tower from commencement of construction through the third quarter of 2007 in the amount of $38 million.
The Company expects to file its 10-K no later than March 17, 2008; however, due to the unexpected length of time needed to complete a detailed impairment analysis for each community and to complete its provision for income taxes including a tax asset allowance, we may not file by that date.
The call can be accessed via the company's website at www.wcicommunities.com in the Investor Relations section or by dialing (877) 454-8253 and asking for the WCI Communities conference call referencing conference code 37790680. The call will be available for replay on the company's website for a period of time after the call.
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 18,500 traditional and tower homes.
For more information about WCI and its residential communities visit www.wcicommunities.com
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Forward-looking statements:
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; WCI's ability to pay principal and interest on its current and future debts; WCI's ability to amend its bank agreements and obtain waivers as needed from time to time to obtain covenant relief and to avoid bank defaults during the market downturn; WCI's ability to maintain or increase historical revenues and profit margins; WCI's ability to collect contract receivables from buyers purchasing homes as investments; the availability and cost of land in desirable areas in its geographic markets 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; availability of labor and materials and material increases in insurance, labor and material costs; increases in interest rates and availability of mortgage financing; the ability of prospective residential buyers to obtain mortgage financing due to tightening credit markets, appraisal problems or other factors; increases in construction and homeowner insurance and availability of insurance, the continuing negative buyer sentiment and erosion of consumer confidence; the negative impact of claims for contract rescission or increasing cancellation rates by contract purchasers; adverse legislation or regulations; adverse legal proceedings; the ability to retain employees; changes in generally accepted accounting principles; natural disasters; adverse weather conditions; and changes in general economic, real estate and business conditions and other factors over which the company has little or no control. 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.