WCI Communities Reports Results of First Quarter 2008

May 7, 2008 – Palm Coast, FL – Hammock Dunes tower condominium developer, WCI Communities released first quarter financial results today. The first quarter loss was $84.1 million compared to a loss of $15.8 million for the first quarter of 2007.The company reported 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.

 

"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," President and Chief Executive Officer Jerry Starkey said in a statement. "Our primary focus continues to be on reducing costs and generating cash to pay down debt."

 

"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," Starkey said in a news release. "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."