WCI Reports First Quarter 2008 Results



 First Quarter Financial Highlights:
 * Net loss: $84.1 million
 * Basic and diluted EPS: loss of $2.00
 * Revenues: $137.1 million -- down 59.5%
 * Gross new orders: 335 (up 6%); Net new orders: 183
   (down 22.8%)
 * Backlog at March 31, 2008: $202.8 million
 * Net cash provided by operating activities:
   $67.4 million

BONITA SPRINGS, Fla., May 7, 2008 (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 2008. For the three months ended March 31, 2008, WCI reported a net loss of $84.1 million, compared with a net loss of $15.8 million in the first quarter of 2007, while diluted earnings per share (EPS) declined to a loss of $2.00 versus a loss of $0.38 in the same period a year ago. Revenues for the first quarter of 2008 were $137.1 million, compared with $338.2 million for the first quarter of 2007, a 59.5% decrease. The aggregate number of gross new Traditional and Tower Homebuilding orders increased by 6% to 335; however, the aggregate number of net new orders for the quarter declined 22.8% to 183, as contract cancellations and defaults at closing continued at higher than long-term historical rates. The aggregate value of the net new orders for the quarter fell 49.8% over the same period a year ago to $78.3 million.

"We experienced a sequential lift in traffic and new orders during the first quarter in Florida reflecting seasonal patterns, but saw a dramatic drop in traffic and new orders in the Northeast and Mid-Atlantic," said Jerry Starkey, President and CEO. "In Florida we wrote 97 new orders for Tower units compared to only 11 during the same quarter last year, but in most instances the prices were significantly discounted. Even with the sequential increase, Traditional Homebuilding gross and net orders in Florida were down 5.6% and 21.0% year-over-year. Over ninety percent of our Florida Traditional Homebuilding new orders were spec sales, with very few purchasers paying the premium for "to-be-built" homes," Starkey continued. "Beyond the seasonal lift in Florida, there are no signs that demand has firmed -- many potential purchasers continue to sit on the sidelines afraid of falling prices and the direction of the economy. Our primary focus continues to be on reducing costs and generating cash to pay down debt."

Traditional Homebuilding

First quarter 2008 revenues for Traditional Homebuilding, including lot sales, fell 56.7% to $92.7 million from $214.2 million for the first quarter of 2007. The company closed 170 homes compared with 306 for the same period a year ago. Florida revenues totaled $73.9 million, or 79.7%, of total Traditional Homebuilding revenues during the first quarter of 2008 versus $137.3 million, or 64.1%, for the first quarter of 2007. Revenues from WCI's Northeast Division accounted for 13.0% of Traditional Homebuilding revenues during the first quarter of 2008 versus 27.7% during the same period a year ago and the company's Mid-Atlantic Division accounted for 7.7% and 8.2% for the first quarters of 2008 and 2007, respectively.

Gross margin as a percentage of revenue for Traditional Homebuilding decreased to 0.4% for the first quarter of 2008 from 16.6% a year ago. The year-over-year decrease was due to lower margins achieved on the sale of finished spec inventory and also due to $6.9 million of impairment charges during the first quarter of 2008, which were primarily related to backlog orders that cancelled and as a result were marked down to the values of comparable units as they were returned to inventory. Excluding the impact of the impairment charge, the gross margin was 7.8%. Spec home closings accounted for 82% of the closings during the quarter and produced an average gross margin percentage of revenue of 4.7%.

For the first quarter of 2008, the number of gross and net orders declined 22.7% and 41.4%, respectively. The value of Traditional Homebuilding gross orders declined 44.6% to $117.7 million while the value of net orders dropped 60.7% to $62.5 million. Cancellations during the quarter totaled 92 units, up from 60 units during the same period a year ago. The average price for Traditional Homebuilding gross orders for the first quarter of 2008 fell 28.3% to $501,000 compared with $699,000 for the first quarter of 2007, due to mix changes, lower prices, and a higher percentage of discounts during the quarter -- approximately 20% compared to approximately 12% on orders in the same period a year ago. The company's total Traditional Homebuilding spec inventory at the end of the quarter, completed and in-process and including models, was 460 versus 610 at the end of the fourth quarter of 2007.

Traditional Homebuilding backlog at March 31, 2008 was $165.9 million, down 73.7% from $631.3 million at the end of the first quarter of 2007. The average projected gross margin in backlog at the end of the quarter was approximately 14.0%.

Tower Homebuilding

For the three months ended March 31, 2008, revenues in Tower Homebuilding decreased 95.6% to $3.3 million from $74.0 million for the same period a year ago. A total of 56 Tower units were closed during the quarter from our inventory of completed and unsold units representing $50.5 million of revenue. In addition, $4.4 million of revenue resulted from backlog units still under construction using the percentage of completion method, and $3.8 million resulted from retained deposits from defaults. Lastly, 52 units previously accounted for under the percentage of completion method defaulted during the period resulting in revenue reversals of $55.4 million which offset the revenue amounts discussed above. Only one tower was under construction and recognizing revenue during the first quarter of 2008 compared to 11 towers under construction and recognizing revenue during the first quarter of 2007.

Tower Homebuilding gross margin as a percentage of revenue was negative for the quarter due to the impact of defaulted units, default reserve increases and other cost adjustments, compared to 1.1% for the three months ended March 31, 2007. Gross margin from spec closings during the quarter totaled $9.1 million, or 19.0%, which was offset by the impact of a reversal of $14.0 million of gross margin from defaulting units. 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 2008, $10.9 million of net unfavorable adjustments to estimates were made related to completed towers and towers under construction, which were recorded as additional costs of sales for the quarter. These adjustments consisted of a $2.3 million increase in the tower default reserve to absorb the effect of current period defaults in excess of those previously reserved for, and to account for higher expected defaults at One Bal Harbour -- Hotel and at The Watermark, and $8.6 million of other cost adjustments, about $6.3 million of which related to The Watermark tower project and the balance to other projects.

Tower Homebuilding gross and net orders for the first quarter of 2008 totaled 100 and 40 respectively, versus 12 and negative seven in the first quarter of 2007. Tower Homebuilding backlog at March 31, 2008 totaled $36.9 million, a 76.9% decrease from the $159.4 million backlog at March 31, 2007.

Real Estate Services

Revenues for the Real Estate Services Division for the first quarter of 2008 were $17.3 million, a 32.3% decrease from the $25.6 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 15.8% over the same period a year ago. Gross margin as a percentage of revenue for the period was 1.3% compared with 8.2% in the first quarter of 2007.

Other Income and Expense

Revenues for the Amenities Division for the first quarter 2008 were $22.6 million, which was equal to revenue for the same period a year ago. Gross margin as a percent of revenue increased to 12.4% for the first quarter of 2008 versus 5.3% in the first quarter of 2007.

Other income and expense in the first quarter included a $9.5 million non-cash mark-to-market charge on the interest rate swap agreement that the company entered into in December 2005 to hedge against interest rate fluctuations on its senior variable rate bank debt.

Selling, general, and administrative expenses including real estate taxes (SG&A) declined $7.4 million to $39.5 million for the first quarter, versus $46.9 million a year ago, due to cost reductions in salaries and benefits, as well as reductions in sales and marketing expenses. As a percentage of revenue, SG&A increased to 28.8%, up from 13.9% in the first quarter of the previous year largely due to lower revenues including the impact of revenue reversals from the 52 tower unit defaults discussed above, which lowered overall revenue by $55.4 million.

Interest incurred was $35.9 million for the first quarter of 2008 compared to $35.4 million in the first quarter of 2007, which was an increase of 1.4%. Although average loan balances were lower in the first quarter of 2008 and would have resulted in lower interest incurred, higher interest rates on variable rate bank debt more than offset the improvement from lower loan balances. Net interest expense of $30.5 million for the quarter was $14.1 million or 86.4% higher than the first quarter of 2007 primarily due to less interest capitalized as fewer projects are under development.

Income tax expense was $0.2 million for the first quarter of 2008 compared to a benefit of $10.5 million for the same period last year. The income tax benefit generated through the company's operating loss in the first quarter of 2008 would have been approximately $26.0 million; however, pursuant to FAS 109, the company was required to fully reserve against this benefit as all recognizable tax benefit under current tax law was recorded at December 31, 2007.

Cash Flow/Financial Position/Balance Sheet

For the three months ended March 31, 2008, net cash generated from operating and investing activities totaled $66.4 million compared with $94.6 million in the same period a year ago.

The company amended its senior secured tower construction facility (the "Tower Loan") on March 17, 2008. The amendments provide for consistencies with the governing provisions of, as well as cross collateralization on a subordinate basis with the Term Loan and Revolving Credit Facility. In addition, the amendment also restricts the company from requesting future advances from the Tower Loan, which is consistent with the Company's de-leveraging strategy and the upcoming maturity of the facility in December 2008.

The ratio of net debt to net capitalization increased to 83.3% compared with 65.5% at March 31, 2007 and increased from 80.5% at December 31, 2007. As of March 31, 2008, excluding $53.4 million in letters of credit, we had approximately $192.4 million available commitments under our senior secured credit facility which was further limited by borrowing base availability which was an estimated $115.0 million at March 31, 2008, plus $48.5 million of cash and cash equivalents. Due to our strategy of selling unsold completed inventory, the impact of impairments to our inventory, and the impact of significant reductions in inventory additions, our borrowing capacity may be limited by the availability determined through our borrowing base as calculated under the loan agreement, which is currently less than the available loan commitments. In addition, our lenders are currently obtaining appraisals on our properties in the borrowing base, and should the appraisals reflect values less than expected, our borrowing base capacity would be further limited, potentially resulting in the loss of additional borrowing capacity and/or mandatory prepayment obligations.

Other Items

During the first quarter we commenced closings at The Watermark in North Bergen, NJ which is comprised of 206 condominium homes. Thirty three units have closed and the remaining backlog is comprised of 126 units. During the quarter, we entered into an agreement with the State of New Jersey Department of Community Affairs that requires us to offer rescission rights to 16 individual purchasers if certain conditions are not met, and additionally to other contract purchasers if the company is not ready, willing and able to close title to the condominium residences by May 26, 2008, through no fault of the contract purchaser. Of the 16 individual purchasers, one purchaser has expressed intent to close and deposits in the aggregate amount of approximately $2.9 million have been or will be refunded to the remaining fifteen purchasers. These units are not included in the 126 unit backlog. As of May 6, 2008, the company does not have certificates of occupancy for 43 of the 126 units in backlog. In the event that some or all of the certificates of occupancy are not received before May 26, 2008 in order to schedule the units for closings, then the company may be required to offer rescission and a refund of deposits to some or all of these purchasers. Although no assurances can be made, the Company believes that it will obtain certificates of occupancy for a portion or all of these 43 units in advance of May 26, 2008. The aggregate contracted values are approximately $48.7 million and the aggregate deposits are approximately $9.7 million associated with these 43 units.

Conference Call

WCI will conduct a conference call today at 1:00 PM ET 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 (877) 454-8253 and asking for the WCI Communities conference call, reference code 46005393. 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 (800) 642-1687 and entering conference code 46005393. 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 15,000 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.primenewswire.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 as a going concern 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; the negative impact if certain Watermark purchasers elect to rescind their contracts to the extent they are entitled to any rescission rights; 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.


                              WCI Communities, Inc.
                      Condensed Consolidated Balance Sheets
                             (Dollars in thousands)

                                             March 31,     December 31,
                                               2008            2007
                                             ----------     ----------
 Assets

 Cash and cash equivalents                   $   48,518     $  188,821
 Contracts receivable                           203,053        358,327
 Real estate inventories                      1,839,469      1,848,309
 Property and equipment                         232,027        236,429
 Other assets                                   257,602        259,345
                                             ----------     ----------
 Total assets                                $2,580,669     $2,891,231
                                             ==========     ==========

 Liabilities and Shareholders' Equity

 Accounts payable, accruals and other
  liabilities                                $  519,874     $  547,597
                                             ----------     ----------
 Debt obligations:
   Senior revolving credit facility             457,650        545,975
   Senior term note                             243,750        262,500
   Mortgages and notes payable                  207,790        300,125
   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                   1,724,190      1,923,600
                                             ----------     ----------
 Total shareholders' equity                     336,605        420,034
                                             ----------     ----------
 Total liabilities and shareholders'
  equity                                     $2,580,669     $2,891,231
                                             ==========     ==========

 Other Balance Sheet Data
 Debt                                        $1,724,190     $1,923,600
 Shareholders' equity                           336,605        420,034
                                             ----------     ----------
 Capitalization                              $2,060,795     $2,343,634
                                             ==========     ==========
 Ratio of debt to capitalization                   83.7%          82.1%

 Debt, net of cash and cash equivalents      $1,675,672     $1,734,779
 Shareholders' equity                           336,605        420,034
                                             ----------     ----------
 Capitalization, net of cash and cash
  equivalents                                $2,012,277     $2,154,813
                                             ==========     ==========
 Ratio of net debt to net capitalization           83.3%          80.5%

 Shareholders' equity per share              $     7.98     $     9.97


                              WCI Communities, Inc.
                    Selected Revenues and Earnings Information
                  (Dollars in thousands, except per share data)

                                             For the three months ended
                                                       March 31,
                                             -------------------------
                                                2008            2007
                                             ----------     ----------
 REVENUES
   Homebuilding:
     Homes                                   $   91,098     $  214,073
     Lots                                         1,621            136
                                             ----------     ----------
   Total traditional                             92,719        214,209
     Towers                                       3,262         73,985
                                             ----------     ----------
   Total homebuilding                            95,981        288,194

   Real estate services                          17,341         25,621
   Amenity membership and operations             22,563         22,585
   Land sales                                        --             --
   Other                                          1,166          1,767
                                             ----------     ----------
     Total revenues                             137,051        338,167
                                             ----------     ----------
 GROSS MARGIN

   Homebuilding:
     Homes                                         (332)        35,536
     Lots                                           736            (12)
                                             ----------     ----------
   Total traditional                                404         35,524
     Towers                                      (4,695)           836
                                             ----------     ----------
   Total homebuilding                            (4,291)        36,360

   Real estate services                             228          2,102
   Amenity membership and operations              2,790          1,189
   Land sales                                      (101)           (69)
   Other                                            266             72
                                             ----------     ----------
     Total gross margin                          (1,108)        39,654
                                             ----------     ----------

 OTHER INCOME AND EXPENSES
   Equity in losses (earnings) from joint
    ventures                                         54           (786)
   Other income                                  (2,005)          (488)
   Market valuation on interest rate swap         9,505             --
   Hurricane recoveries                              --         (1,513)
   Selling, general and administrative,
    including real estate taxes, net             39,504         46,904
   Depreciation and amortization                  4,955          5,655
   Interest expense, net                         30,495         16,364
                                             ----------     ----------
   Loss from continuing operations before
    minority interests and income taxes         (83,616)       (26,482)
   Minority interests                              (245)          (593)
   Income tax expense (benefit)                     238        (10,471)
                                             ----------     ----------
   Loss from continuing operations              (84,099)       (16,604)
   Income from discontinued operations,
    net of tax                                       --            793
                                             ----------     ----------
       Net loss                              $  (84,099)    $  (15,811)
                                             ==========     ==========
 (LOSS) EARNINGS PER SHARE:
    Basic:
      From continuing operations             $    (2.00)    $    (0.40)
      From discontinued operations                   --           0.02
                                             ----------     ----------
                                             $    (2.00)    $    (0.38)
                                             ==========     ==========
    Diluted:
      From continuing operations             $    (2.00)    $    (0.40)
      From discontinued operations                   --           0.02
                                             ----------     ----------
                                             $    (2.00)    $    (0.38)
                                             ==========     ==========
 WEIGHTED AVERAGE NUMBER OF SHARES
    Basic                                        42,148         41,920
    Diluted                                      42,148         41,920

 OPERATING DATA
    Interest incurred                        $   35,891     $   35,389
    Interest included in cost of sales       $    5,829     $   13,775


                              WCI Communities, Inc.
                          Homebuilding Operational Data
                             (Dollars in thousands)

                                            For the three months ended
                                                     March 31,
                                             -------------------------
                                                2008           2007
                                             ----------     ----------

 Combined Traditional and Tower Homebuilding

   Homes Closed (Units)*                            309            560

   Gross New Orders (Units)                         335            316
   Gross Contract Values of New Orders       $  204,782     $  233,989

   Net New Orders (Units)                           183            237
   Net Contract Values of New Orders         $   78,318     $  156,102

   Average Selling Price Per New Order,
    Gross                                    $      611     $      740

 Traditional Homebuilding
   Homes Closed (Units)
     Florida                                        140            183
     Northeast U.S.                                  25            110
     Mid-Atlantic U.S.                                5             13
                                             ----------     ----------
       Total                                        170            306
                                             ----------     ----------
   Revenues, excluding lot revenues
     Florida                                 $   72,243     $  137,214
     Northeast U.S.                              11,862         59,269
     Mid-Atlantic U.S.                            6,993         17,590
                                             ----------     ----------
       Total                                 $   91,098     $  214,073
                                             ----------     ----------

   Average Selling Price Per Home Closed
     Florida                                 $      516     $      750
     Northeast U.S.                                 474            539
     Mid-Atlantic U.S.                            1,399          1,353
                                             ----------     ----------
       Total                                 $      536     $      700
                                             ----------     ----------
   Gross New Orders (Units)
     Florida                                        203            215
     Northeast U.S.                                  25             60
     Mid-Atlantic U.S.                                7             29
                                             ----------     ----------
       Total                                        235            304
                                             ----------     ----------

   Cancellations (Units)
     Florida                                        (71)           (48)
     Northeast U.S.                                 (20)            (9)
     Mid-Atlantic U.S.                               (1)            (3)
                                             ----------     ----------
       Total                                        (92)           (60)
                                             ----------     ----------
   Net New Orders (Units)
     Florida                                        132            167
     Northeast U.S.                                   5             51
     Mid-Atlantic U.S.                                6             26
                                             ----------     ----------
       Total                                        143            244
                                             ----------     ----------

   Gross Contract Values of New Orders
     Florida                                 $   95,096     $  143,068
     Northeast U.S.                              13,417         35,792
     Mid-Atlantic U.S.                            9,204         33,506
                                             ----------     ----------
       Total                                 $  117,717     $  212,366
                                             ----------     ----------
   Contract Values of Cancellations
     Florida                                 $  (43,650)    $  (43,865)
     Northeast U.S.                             (10,742)        (5,046)
     Mid-Atlantic U.S.                             (830)        (4,523)
                                             ----------     ----------
       Total                                 $  (55,222)    $  (53,434)
                                             ----------     ----------
   Net Contract Values of New Orders
     Florida                                 $   51,446     $   99,203
     Northeast U.S.                               2,675         30,746
     Mid-Atlantic U.S.                            8,374         28,983
                                             ----------     ----------
       Total                                 $   62,495     $  158,932
                                             ----------     ----------
   Gross Average Selling Price Per New Order
     Florida                                 $      468     $      665
     Northeast U.S.                                 537            597
     Mid-Atlantic U.S.                            1,315          1,155
                                             ----------     ----------
       Total                                 $      501     $      699
                                             ----------     ----------
 Tower Homebuilding
   Homes Closed (Units)
     Florida                                        130            254
     Northeast U.S                                    9             --
                                             ----------     ----------
       Total                                        139            254
                                             ----------     ----------
   Revenues
     Florida                                 $      950     $   55,434
     Northeast U.S.                               2,312         18,551
                                             ----------     ----------
       Total                                 $    3,262     $   73,985
                                             ----------     ----------
   Gross New Orders (Units)
     Florida                                         97             11
     Northeast U.S.                                   3              1
                                             ----------     ----------
       Total                                        100             12
                                             ----------     ----------
   Cancellations/Defaults (Units)
     Florida                                        (56)           (17)
     Northeast U.S.                                  (4)            (2)
                                             ----------     ----------
       Total                                        (60)           (19)
                                             ----------     ----------
   Net New Orders (Units)
     Florida                                         41             (6)
     Northeast U.S.                                  (1)            (1)
                                             ----------     ----------
       Total                                         40             (7)
                                             ----------     ----------
   Gross Contract Values of New Orders
     Florida                                 $   83,556     $   20,510
     Northeast U.S.                               3,509          1,113
                                             ----------     ----------
       Total                                 $   87,065     $   21,623
                                             ----------     ----------
   Contract Values of Cancellations/Defaults
     Florida                                 $  (67,767)    $  (22,846)
     Northeast U.S.                              (3,475)        (1,607)
                                             ----------     ----------
       Total                                 $  (71,242)    $  (24,453)
                                             ----------     ----------
   Net Contract Values of New Orders
     Florida                                 $   15,789     $   (2,336)
     Northeast U.S.                                  34           (494)
                                             ----------     ----------
       Total                                 $   15,823     $   (2,830)
                                             ----------     ----------
   Gross Average Selling Price Per New Order
     Florida                                 $      861     $    1,865
     Northeast U.S.                               1,170          1,113
                                             ----------     ----------
       Total                                 $      871     $    1,802
                                             ----------     ----------

   Towers under construction recognizing
    revenue during the quarter                        1             11

                                                     March 31,
                                             -------------------------
                                                2008           2007
                                             ----------     ----------
 Combined Traditional and Tower Homebuilding
   Aggregate Backlog Contract Values,
    Traditional and Tower Homebuilding       $  202,762     $  790,685

 Traditional Homebuilding
   Backlog (Units)                                  290            808
   Backlog Contract Values                   $  165,871     $  631,265

 Tower Homebuilding
   Cumulative Units in Backlog                      353          1,036
   Cumulative Contract Values                $  375,290     $1,255,648
   Less: Cumulative Revenues Recognized        (338,399)    (1,096,228)
                                             ----------     ----------
   Backlog Contract Values                   $   36,891     $  159,420
                                             ==========     ==========

   * 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.

 
                              WCI Communities, Inc.
                 Condensed Consolidated Statements of Cash Flows
                             (Dollars in thousands)


                                            For the three months ended
                                                     March 31,
                                             -------------------------
                                                2008           2007
                                             ----------     ----------
 Cash flows from operating activities:
   Net loss                                  $  (84,099)    $  (15,811)
   Asset impairment losses and land
    acquisition termination costs                 6,769          1,059
   Decrease (Increase) in real estate
    inventories                                   1,400         (2,647)
   Decrease in contracts receivable             155,274        199,001
   Decrease in customer deposits                (34,159)       (56,084)
   (Increase) Decrease in restricted cash        (1,861)        15,930
   Decrease in accounts payable and other
    liabilities                                  (1,740)       (40,379)
   All other                                     25,846          1,349
                                             ----------     ----------
 Net cash provided by operating activities       67,430        102,418
                                             ----------     ----------
 Cash flows from investing activities:
   Additions to property and equipment, net      (1,024)        (7,749)
   Other                                            (50)           (37)
                                             ----------     ----------
 Net cash used in investing activities           (1,074)        (7,786)
                                             ----------     ----------

 Cash flows from financing activities:
   Net repayments under debt obligations       (199,424)       (96,880)
   All other                                     (7,235)        (3,651)
                                             ----------     ----------
 Net cash used in financing activities         (206,659)      (100,531)
                                             ----------     ----------
 Net decrease in cash and cash equivalents   $ (140,303)    $   (5,899)
                                             ==========     ==========


                              WCI Communities, Inc.
                         Reconciliation of Gross Margin
                             (Dollars in thousands)

                                            For the three months ended
                                                     March 31,
                                             -------------------------
                                                2008           2007
                                             ----------     ----------
 Traditional Homebuilding
   Revenue                                   $   92,719     $  214,209
                                             ----------     ----------
   Gross margin                                     404         35,524
   Add back impairment & other write-offs         6,866            557
                                             ----------     ----------
   Gross margin excluding impairment         $    7,270     $   36,081
                                             ----------     ----------

   Gross margin % as reported                       0.4%          16.6%
   Gross margin % excluding impairment
    & other write-offs                              7.8%          16.8%


                      Summary of Land Controlled
                            March 31, 2008

                                Remaining Units in   Value in    Spec
                                 Planned  Backlog as Backlog as  Units
            Region                Units   of 3/31/08 of 3/31/08 in WIP
 Traditional Homebuilding
  (Including Lots)
   Florida
     Miami / Ft. Lauderdale        1,009        52    $ 36.5         7
     Naples / Ft. Myers            4,542        80      37.4        39
     Palm Beach / Indian River       162         3       5.7         2
     Palm Coast / Jacksonville        22         4       2.1         2
     Perdido Key                      83        --        --        --
     Tampa / Sarasota              2,718        57      30.6         2
   Mid-Atlantic                      360         9      12.2         1
   Northeast                       1,481        88      44.3         5
 ---------------------------------------------------------------------
   Traditional Homebuilding
    Total                         10,377       293     168.7        58

 Tower Homebuilding
   Florida
     Miami / Ft. Lauderdale          778       152      12.0        77
     Naples / Ft. Myers              839        24      14.5        --
     Palm Beach / Indian River       187         1      (0.0)       --
     Palm Coast / Jacksonville       281         2        --        --
     Perdido Key                   1,499         4       1.6        --
     Tampa / Sarasota                663         3       2.2        --
   Mid-Atlantic                      284        --        --        --
   Northeast                         471       167       6.6        30
 ---------------------------------------------------------------------
 Tower Homebuilding Total          5,002       353      36.9       107

 Total Homebuilding
   Florida
     Miami / Ft. Lauderdale        1,787       204      48.5        84
     Naples / Ft. Myers            5,381       104      51.9        39
     Palm Beach / Indian River       349         4       5.7         2
     Palm Coast / Jacksonville       303         6       2.1         2
     Perdido Key                   1,582         4       1.6        --
     Tampa / Sarasota              3,381        60      32.8         2
   Mid-Atlantic                      644         9      12.2         1
   Northeast                       1,952       255      50.9        35
 ---------------------------------------------------------------------
 Total Homebuilding Total         15,379       646     205.6       165
 =====================================================================


                                           Finished
                                           Spec and    Total
                                             Model     Units       %
            Region                           Units   Remaining   Owned
 Traditional Homebuilding  (Including Lots)
   Florida
     Miami / Ft. Lauderdale                    157       793       100%
     Naples / Ft. Myers                         41     4,382       100%
     Palm Beach / Indian River                  11       146       100%
     Palm Coast / Jacksonville                  16        --       100%
     Perdido Key                                12        71       100%
     Tampa / Sarasota                          112     2,547        71%
   Mid-Atlantic                                 22       328        86%
   Northeast                                    31     1,357       100%
 ---------------------------------------------------------------------
 Traditional Homebuilding Total                402     9,624        92%

 Tower Homebuilding
   Florida
     Miami / Ft. Lauderdale                     52       497       100%
     Naples / Ft. Myers                        118       697       100%
     Palm Beach / Indian River                  40       146       100%
     Palm Coast / Jacksonville                  21       258       100%
     Perdido Key                                79     1,416       100%
     Tampa / Sarasota                           31       629       100%
   Mid-Atlantic                                 --       284       100%
   Northeast                                    --       274        42%
 ---------------------------------------------------------------------
 Tower Homebuilding Total                      341     4,201        95%

 Total Homebuilding
   Florida
     Miami / Ft. Lauderdale                    209     1,290       100%
     Naples / Ft. Myers                        159     5,079       100%
     Palm Beach / Indian River                  51       292       100%
     Palm Coast / Jacksonville                  37       258       100%
     Perdido Key                                91     1,487       100%
     Tampa / Sarasota                          143     3,176        76%
   Mid-Atlantic                                 22       612        92%
   Northeast                                    31     1,631        86%
 ---------------------------------------------------------------------
 Total Homebuilding Total                      743    13,825        93%
 =====================================================================

           Remaining Planned Units
              March 31, 2008
                                                       Total
                                  Owned    Optioned Controlled
 Traditional Homebuilding          9,529       848    10,377
 Tower Homebuilding                4,728       274     5,002
 -----------------------------------------------------------
 Total Homebuilding               14,257     1,122    15,379
 ===========================================================

            

Coordonnées