BONITA SPRINGS, Fla., Aug. 14, 2007 (PRIME NEWSWIRE) -- WCI Communities, Inc. (NYSE:WCI), a leading builder of traditional and tower residences in highly amenitized lifestyle communities, today announced its second quarter earnings release date, originally scheduled for August 16, 2007, has been changed to Wednesday, August 22, 2007. The later reporting date will allow WCI to complete its review of real estate inventories and other assets for possible impairment charges. Preliminarily, it appears that WCI will record asset impairment charges of $34 million to $54 million before taxes for the second quarter of 2007. On August 10, 2007, WCI filed its Form 12b-25 indicating that it did not expect to timely file its Form 10-Q. In that filing, WCI stated that it anticipated reporting a loss for the second quarter of 2007 of approximately $16.9 million. That estimate included about $14 million of impairment charges before taxes that is included in the above range for the quarter. The Company continues to believe that its cash flow from operating activities and investing activities for 2007 will range from $530 million to $730 million.
In addition, WCI is finalizing negotiations with its lenders for an amendment of its bank covenants beginning in the quarter ended June 30, 2007. The Company expects its external accountants' review to be completed shortly after these two matters are resolved. While the impairment analyses described above are nearing completion and the discussions with the Company's lenders continue to progress, there can be no assurance that the estimates stated above will not vary or that the banks will agree to the modifications necessary for WCI to comply with its loan covenants in the current and future periods.
WCI's rescheduled second quarter earnings release and conference call is scheduled to take place on August 22, 2007. The company expects to issue the earnings press release before the market opens with a conference call to discuss the results commencing at 10:00 AM EDT.
The call can be accessed via the company's website at www.wcicommunities.com in the Investor Relations section or by dialing (303) 205-0055 and asking for the WCI Communities conference call referencing conference code 11094554. The call will be available for replay on the company's website for a period of time after the call.
About WCI
WCI Communities, Inc., named America's Best Builder in 2004 by the National Association of Home Builders and Builder Magazine, has been creating amenity-rich, master-planned lifestyle communities since 1946. Florida-based WCI caters to primary, retirement, and second-home buyers in Florida, New York, New Jersey, Connecticut, Maryland and Virginia. The company offers traditional and tower home choices with prices from the high-$100,000s to more than $10 million and features a wide array of recreational amenities in its communities. In addition to homebuilding, WCI generates revenues from its Prudential Florida WCI Realty Division, and title businesses, and its recreational amenities, as well as through land sales and joint ventures. The company currently owns and controls developable land on which the company plans to build over 19,500 traditional and tower homes.
The WCI Communities, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3018
Forward-looking statements:
Certain information included herein and in other company reports, Securities and Exchange Commission filings, statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about the company's anticipated operating results, financial resources, ability to acquire land, ability to sell homes and properties, ability to deliver homes from backlog, and ability to secure materials and subcontractors. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other company reports, filings, statements and presentations. These risks and uncertainties include WCI's ability to compete in real estate markets where we conduct business; 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; WCI's ability to pay principal and interest on its current and future debts; WCI's ability to amend its bank agreements as needed from time to time to obtain covenant relief 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; 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 level of consumer confidence; the negative impact of claims for contract rescission or cancellation by contract purchasers due to various factors including the increase in the cost of condominium insurance; adverse legislation or regulations; unanticipated litigation or adverse legal proceedings; ability to retain employees; changes in generally accepted accounting principles; natural disasters; 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.