The top financial official at WCI Communities is hopeful that the builder of luxury tower and condos units will be able to work out its interest payment agreements with the company's major banks and move forward into 2008 with increased financial flexibility.
In speaking to financial analysts this morning at the Banc of America Securities Credit Conference in Orlando, Fla., Jim Dietz, the company's executive vice president and CFO, said he expected to hear from the company's leading banks this Friday.
"Right now we're going through approval, and we're confident that the lenders will complete the process," Dietz said.
The CFO said WCI continues to operate in a very tough business climate for housing. He said 2007 revenues are likely to be down 40 percent or more, and the company's traditional $695,000 price of a home building order has decreased 5 percent from a year ago.
On a more positive note, while somewhat reduced from initial expectations, Dietz said WCI's cash flow will be between $210 and $460 million. The primary source of cash flow will be sales at two major tower projects and traditional home closings.