WCI Communities, which is under Chapter 11 bankruptcy protection, told the U.S. Securities and Exchange Commission on Thursday Nov. 6 that it won't be able to file its third quarter financial report on time.
"The closing of the books and the process of preparing the company's financial statements for the period ended Sept. 30, 2007, is taking longer than expected due to manpower constraints following the resignation of the company's chief financial officer," the notification said.
In addition, the company has been busy filing bankruptcy court documents. Plus, WCI said it needs extra time to finish reviewing all of its land for potential impairment.
"The company intends to file its Form 10-Q as soon as practicable," the company said in its SEC filing, adding that it won't take any longer than Jan. 28 to fulfill the terms of its debtor in possession credit agreement.
WCI anticipates its total revenues will be between $90 million and $100 million, but it didn't estimate earnings. While the company's accountants don't know exactly how much of a loss it had in the quarter, they are certain there was one and that it was greater than the $69.7 million it lost in the same quarter of 2007.
Sales deteriorated, and the company completed all of its towers that were under construction. Bankruptcy costs for legal and other consultants as well as related expenses are estimated between $8 million and $11 million for the quarter.
Since the company has not finished reviewing its land for impairments, it did not venture to guess how great a toll that will take on the company's bottom line.