WCI Reports First Quarter 2007 Results


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

Click here to join our email list: http://www.b2i.us/irpass.asp?BzID=631&to=ea&s=0

The WCI Communities, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3018

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
 ===========================================================


            

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