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Presley Reports $37.1-Million Loss in '95

February 27, 1996|JOHN O'DELL

NEWPORT BEACH — The Presley Cos. said Monday that it lost $37.1 million, or 71 cents a share, in 1995, compared with a profit of $6 million, or 11 cents a share, the year before.

The home builder said sales rose 5.7%, to $285.5 million, from $270.2 million. The gain was spurred by Presley's effort to sell raw land as it abandons its long-standing role as a developer of master-planned communities.

Presley said it sold $54.3 million worth of land and other assets during the year, compared with $7.3 million in assets sales in 1994.

In the fourth quarter, Presley lost $24.5 million, or 47 cents a share, compared to a $1.5 million profit, or 3 cents a share, in the final period of 1994. Revenue rose 34%, to $91.7 million, and included $25.8 million from the sale of land to other builders.

The fourth-quarter loss included a noncash charge of $16.8 million from a change in accounting standards governing the way Presley valued its real estate assets. Presley said the accounting standard could result in additional adjustments to its asset valuation in the future.

The company reported that closings in the fourth quarter rose 10%, to 405 units, from 367 a year earlier. For the year, however, closings fell 1% to 1,425 units from 1,442. Net new home orders for the fourth quarter were up 10% to 389 units. For the year, net new orders rose 5%, to 1448 units.

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