WCI Communities has postponed its earnings release date by six days, to Wednesday August 22, to allow time to finish reviewing its assets for possible impairments. That announcement, made Wednesday (August 15), follows one made August 10 saying WCI would be late filing its quarterly documents with the Securities and Exchange Commission as well.
Preliminarily, WCI reported it expects it will record asset impairments of between $34 and $54 million for the second quarter of 2007. In an earlier filing, WCI said it expects a loss of $16.9 million for its second quarter. That estimate included $14 million in impairments. The company is still expecting cash flow of between $530 million and $730 million for 2007.
Meanwhile, WCI announced it is finalizing negotiations with its lenders to amend its bank covenants for the second time this year. But the company offers no guarantees that will happen or that its impairments will fall within the expected range.
"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 said in a prepared statement.