Sunrise posts loss of $70 million in 2007, rethinks growth plans
The company lost $70.3 million, or $1.41 per share, in 2007. That compares with restated income of $15.3 million, or $0.30 per diluted share, in 2006. As part of a plan to generate $15 million to $20 million on an annualized basis beginning next year, the company plans to reorganize its corporate cost structure. This includes implementing a voluntary separation program for certain team members, as well as a reduction of spending related to administrative processes, vendors, consultants and other areas.
The loss also dampened its expansion plans, it said in a statement. It had hoped to develop between 3,200 and 3,400 living units in 2008. That could be cut by half, it said. Just last month, the company disclosed that founder Paul Klaassen would be stepping down from his post as CEO. The company has faced accusations of accounting problems, insider trading, and the improper timing of stock option grants. The company plans to release first-quarter earnings later this month, and a second-quarter earnings report in September.