Tarragon Corporation's April Promotional Campaign Spurs Sales Bounce
Posted on: Monday, 23 April 2007, 09:00 CDT
NEW YORK, April 23 /PRNewswire-FirstCall/ -- Tarragon Corporation , a leading developer of multifamily housing for rent and for sale, today announced that a special promotional campaign at eleven condominium conversion projects located in Florida and South Carolina generated 194 new orders, representing approximately $33 million in homebuilding sales. Tarragon expects 75 to 80 percent of the contracts to result in closings, most of them by the end of the second quarter.
The "Home-A-Palooza" campaign, which ran from April 12 - 15, offered buyers contributions towards closing costs and homeowners' association dues, as well as a choice of a home theater or home office package.
"The sales generated during our April Home-A-Palooza campaign follow flat sales results for the first quarter," said William S. Friedman, Chairman and Chief Executive Officer of Tarragon Corporation. "The success of the program tells us that when you create a sense of urgency, coupled with incentives, buyers are still out there, eager to purchase their own home. We are planning additional sales promotions for each quarter in 2007 as we believe the market in Florida, especially, is ready to respond to a value proposition but not to business as usual."
In the first quarter of 2007 the Company wrote 281 net orders totaling $83.3 million, compared with 461 net orders totaling $105.2 million for the same period in 2006. In the first quarter of 2007 the Company delivered 353 homes representing $82.7 million in sales, compared with 663 deliveries for $156.3 million in the first quarter of 2006. In 2006, sales came from 44 active communities compared to 33 in 2007, making sales per community comparable in the two periods.
At the end of the first quarter of 2007, the non-cancelable contractual backlog was $245 million, compared with $376 million at the end of the first quarter of 2006, corresponding to a backlog of 645 and 1,592 homes, respectively.
Approximately $23 million in condominium conversion debt has been paid down since the first of the year. By year-end 2007, Tarragon expects to repay $125 million of debt on condominium conversion communities, $130 million on newly built, for-sale developments and $165 million on rental apartment developments. All of the foregoing debt reduction is expected to come from sales proceeds.
Tarragon has filed a preliminary proxy statement with the Securities and Exchange Commission related to the proposed pro rata, tax-free spin-off of its Homebuilding Division as an independent, publicly traded company. The transaction, which is subject to shareholder approval, is expected to be completed in mid-2007. Tarragon will continue to operate its real estate services business, which provides asset and property management, leasing and renovation services to residential and commercial properties. Following the spin-off, Tarragon will change its name to Sage Residential, Inc. Tarragon's homebuilding and development business will be renamed Tarragon Corporation.
About Tarragon Corporation
Tarragon Corporation is a leading developer of multifamily housing for rent and for sale. The Company's operations are concentrated in the Northeast, Florida, Texas and Tennessee. To learn more about Tarragon Corporation, visit: http://www.tarragoncorp.com/
Forward-looking Statements
Information in this press release includes forward-looking statements made pursuant of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and the timing of certain events could differ materially from those projected or contemplated by the forward-looking statements due to a number of factors, including, but not limited to, general economic conditions, interest rates, weather, the availability of financing for development and acquisition, risks associated with the proposed spin-off of the Company's homebuilding division as described in the Company's SEC filings relating to the transaction, and other risk factors outlined in the Company's SEC reports, including its Annual Report on Form 10-K. The Company assumes no responsibility to update forward-looking information contained herein.
TARR-G
Tarragon Corporation
CONTACT: Investors, Alan H. Oshiki of Broadgate Consultants,+1-212-232-2354, aoshiki@broadgate.com, for Tarragon Corporation; or WilliamS. Friedman of Tarragon Corporation, +1-212-949-5000,wfriedman@tarragoncorp.com
Web site: http://www.tarragoncorp.com/
Source: PRNewswire-FirstCall
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