Interstate General Co. L.P.The St. Charles-based...


November 14, 1990

Interstate General Co. L.P.

The St. Charles-based homebuilding and development company reported that its third-quarter earnings fell more than 95 percent, a decline the company blamed on slow sales of homes and lots in the Washington area.

Interstate General said it earned $83,000, or 1 cent per partnership unit, during the three months that ended Sept. 30. In the same period of 1989, Interstate General earned $2,578,000, or 26 cents a unit.

James J. Wilson, president and chief executive officer, said the company's quarterly revenue grew as a result of its acquisition of another homebuilding company and the income generated by the lease of its newly acquired horse-racing track in Puerto Rico.

But the higher revenue wasn't enough to offset slow sales and narrow profit margins in metropolitan Washington, where Interstate General's biggest project is the planned community of St. Charles in Charles County. In St. Charles, Interstate General builds some of the new homes itself and sells lots to other builders, who construct the rest.

The company also announced that it would not pay a distribution to unit holders for the third quarter. It added that it thinks the distributions already paid this year, a total of 40 cents a unit, will be more than enough to meet the partnership's legal obligation to pay 55 percent of its net income in distributions. A distribution is a limited partnership's equivalent of a dividend, and a partnership unit is its version of a share of stock.

The announcement means the company's earnings for the year as a whole will not top 75 cents a partnership unit.

The Rouse Co.

The Rouse Co. has released figures showing that its third-quarter earnings before depreciation and deferred taxes were down 6.1 percent from the same period one year before,on revenues that were up 6.6 percent from revenues in the third quarter of l989.

For the first nine months of the year,the real estate development company's earnings before depreciation and deferred taxes were $31.307 million,down 15.9 percent from the $37.231 million recorded in the first nine months of 1989.

Company officals attributed the decline to delays in the sale of land in Columbia.The decline in land sales combined with increased depreciation expenses to produce a net loss of $3,258,000 for the nine-month period.In 1989,the comparable period produced net earnings of $6,866,000,which included more than 5 million in non-recurring pre-tax net gains primarily related to a managment contract termination fee.

"Our retail centers...are performing extremely well," said Mathias J.DeVito,chairman,president and chief executive officer of the company."We believe that our full year results for 1990 will be very satisfactory and generally in line with our expectations."

CRI Insured

Mortgage Association Inc.

This Rockville-based real estate investment trust said yesterday that it earned $4.4 million,or 22 cents a share,during the quarter that eneded Sept.30.

Because the company is less than a year old,there are no comparable data for the same three months of 1989.

For the first nine months of this year,the company said,it has earned $14.3 million,or 71 cents a share.Management said yesterday that it thinks the company's fourth quarter performance will be strong enough to allow it to pay the same 27-cent-a-share quarterly dividend that it has declared for each of the first three quarters of the year.

The trust invests in government-insured, mortgage-backed securities and in project loans that also are backed by the federal government. It has about $540 million in assets.

General Sciences Corp.

The Laurel company said its profits fell 82 percent in the fiscal year that ended July 31, a year in which the company broke a 12-year string of consistent revenue growth.

General Sciences said it actually lost $61,365, or 3 cents a share, in the fourth quarter of the fiscal year. That compares with a profit of 12 cents a share in the fourth quarter of fiscal 1989.

For the full year, the company said, it earned $171,778, or 9 cents a share, compared with 50 cents share in fiscal 1989.

The company said the main reason for its lower profits was weak sales of METPRO,its commercial system for processing meteorological information.

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