IRVINE, Calif., Oct. 26, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced operating results for its third quarter ended September 30, 2010.
2010 Third Quarter Highlights and Comparisons to the 2009 Third Quarter
Ken Campbell, the Company's President and CEO commented, "I am pleased to announce our second consecutive quarter of profitability in an extremely challenging housing market. Our ability to generate a profit at a delivery rate of 1.5 homes per community per month bodes well for us when the housing market returns to any level of normalcy. Consistent with our strategy, our gross margins have also held steady and our average sales price is up meaningfully over the prior year period." Mr. Campbell continued, "Unfortunately it appears that the nation's economic recovery may take longer than many anticipated. We will continue to manage through this downturn with a focus on rebuilding our land portfolio, while keeping an eye on maintaining the proper balance between new investment and liquidity."
The Company generated net income of $4.5 million, or $0.02 per diluted share, for the 2010 third quarter compared to a net loss of $23.8 million, or $0.10 per diluted share, for the year earlier period. The primary drivers of the improved operating performance for the 2010 third quarter were higher gross margins, higher average sales prices, lower asset impairments and lower overhead costs. The 2009 third quarter results included $7.7 million of inventory impairment charges related to land sales, an $8.8 million charge related to the early extinguishment of debt and $1.3 million of restructuring charges. The 2010 third quarter included a $1.0 million charge related to the early extinguishment of debt and did not include any inventory impairments. Excluding the loss on the early extinguishment of debt, the Company generated net income of $5.5 million*, or $0.02* per diluted share, for the 2010 third quarter.
Homebuilding revenues for the 2010 third quarter were $207.5 million, down 37% from $327.4 million for the 2009 third quarter. The decrease in homebuilding revenues was driven primarily by a 33% decline in new home deliveries, offset in part by a 14% increase in consolidated average home price to $345,000 as compared to the 2009 third quarter. The increase in average home price was largely due to the delivery of more higher priced homes in Southern California and a reduction in deliveries in Florida as compared to the 2009 third quarter.
Gross margin from home sales for the 2010 third quarter was 23.6% versus 18.6% for the year earlier period. The 500 basis point improvement in the 2010 third quarter gross margin from home sales was driven primarily by lower direct construction costs and higher margins in substantially all of our markets, and price increases in Southern California. Excluding previously capitalized interest costs, gross margin from home sales for the 2010 third quarter was 29.7%* versus 24.3%* for the 2009 third quarter.
The Company's 2010 third quarter SG&A expenses (including Corporate G&A) were $36.3 million compared to $43.7 million for the 2009 third quarter, which included noncash stock-based compensation charges of $3.1 million and $1.7 million, respectively. The Company's 2010 third quarter SG&A rate from home sales was 17.6% versus an adjusted rate of 15.6%* for the 2009 third quarter (2009 third quarter excludes $1.5 million in restructuring charges). The increase in the Company's SG&A rate was primarily the result of a 23% decrease in revenues from home sales.
The Company's 2010 third quarter income tax provision was $2.1 million, which was fully offset by a noncash reversal of its deferred tax asset valuation allowance for the same amount. In addition, during the three and nine months ended September 30, 2010, the Company recorded a noncash reduction of its deferred tax asset of $4.8 million and $14.1 million, respectively, and a corresponding noncash reduction of its deferred tax asset valuation allowance related to built-in losses realized during these periods that were in excess of the Section 382 annual limitation. As of September 30, 2010, the Company had a $516.1 million deferred tax asset valuation allowance.
The Company used $67.4 million of cash flows from operating activities for the 2010 third quarter versus generating $112.6 million of cash flows from operating activities in the year earlier period. The decline in cash flows from operations as compared to the 2009 third quarter was driven primarily by a $69.7 million increase in cash land purchases in the 2010 third quarter and a $119.9 million decrease in homebuilding revenues (including a $56.6 million decrease in land sale revenues). Cash flow from operations for the three months ended September 30, 2010 and 2009 included $91.3 million and $21.6 million, respectively, of cash land purchases. Excluding cash land purchases and land sales, cash flow from operating activities for the 2010 third quarter was $22.9 million* versus $77.9 million* in the year earlier period.
Net new orders (excluding joint ventures) for the 2010 third quarter decreased 38% from the 2009 third quarter to 555 homes on a 2% decline in the number of average active selling communities from 134 to 131. The Company's monthly sales absorption rate for the 2010 third quarter was 1.4 per community compared to 2.2 per community for the 2009 third quarter. The Company's cancellation rate for the 2010 third quarter was 19% versus 15% for both the 2009 third quarter and the 2010 second quarter. The total number of sales cancellations for the 2010 third quarter was 132, of which 82 cancellations related to homes in the Company's 2010 third quarter beginning backlog and 50 related to orders generated during the quarter.
The dollar value of the Company's backlog (excluding joint ventures) decreased 35% to $214.2 million, or 605 homes, compared to $329.7 million, or 995 homes, for the 2009 third quarter. The decrease in backlog value was driven primarily by a 38% decrease in net new orders, which was offset in part by a 7% increase in average home price in backlog from $331,000 to $354,000.
During the 2010 third quarter, the Company approved (but has not yet consummated) the purchase of $93 million of land, comprised of approximately 2,000 lots, 32% of which are finished, 43% partially developed and 25% raw. During the same period, the Company purchased approximately 1,800 lots valued at $127 million ($91 million of which were cash purchases and $32 million were acquired through an investment in a joint venture). Approximately 73% of the $127 million in land purchases related to land located in California, with the balance spread throughout the Company's other operations. For the nine months ended September 30, 2010, the Company purchased approximately 4,600 lots valued at $281 million.
Earnings Conference Call
A conference call to discuss the Company's 2010 third quarter will be held at 12:00 p.m. Eastern time October 27, 2010. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://standardpacifichomes.com/ir. The call will also be accessible via telephone by dialing (888) 747-4660 (domestic) or (913) 312-1500 (international); Passcode: 3684458 The entire audio transmission with the synchronized slide presentation will be available on our website for replay within 2 to 3 hours following the live broadcast, and can be accessed by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international); Passcode: 3684458.
About Standard Pacific
Standard Pacific, one of the nation's largest homebuilders, has built more than 110,000 homes during its 44-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada. For more information about the Company and its new home developments, please visit our website at: www.standardpacifichomes.com.
This news release contains forward-looking statements. These statements include but are not limited to statements regarding new home orders, deliveries, backlog, average home price, revenue, strategy, profitability, cash flow, liquidity, gross margins, overhead expenses and other costs; the dollar value and timing of anticipated land purchases; the availability of land opportunities that meet our return threshold, and our ability to consummate these opportunities; and the future condition of the housing market. Forward-looking statements are based on our current expectations or beliefs regarding future events or circumstances, and you should not place undue reliance on these statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors many of which are out of the Company's control and difficult to forecast that may cause actual results to differ materially from those that may be described or implied. Such factors include but are not limited to: local and general economic and market conditions, including consumer confidence, employment rates, interest rates, the cost and availability of mortgage financing, and stock market, home and land valuations; the impact on economic conditions of terrorist attacks or the outbreak or escalation of armed conflict involving the United States; the cost and availability of suitable undeveloped land, building materials and labor; the cost and availability of construction financing and corporate debt and equity capital; our significant amount of debt and the impact of restrictive covenants in our debt agreements; our ability to repay our debt as it comes due; changes in our credit rating or outlook; the demand for and affordability of single-family homes; the supply of housing for sale; cancellations of purchase contracts by homebuyers; the cyclical and competitive nature of the Company's business; governmental regulation, including the impact of "slow growth" or similar initiatives; delays in the land entitlement process, development, construction, or the opening of new home communities; adverse weather conditions and natural disasters; environmental matters; risks relating to the Company's mortgage banking operations; future business decisions and the Company's ability to successfully implement the Company's operational and other strategies; litigation and warranty claims; and other risks discussed in the Company's filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2009 and subsequent Quarterly Reports on Form 10-Q. The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements. The Company nonetheless reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.
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(Note: Tables Follow) |
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KEY STATISTICS AND FINANCIAL DATA(1) |
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|
|
As of or For the Three Months Ended |
||||||||||||
|
|
|
|
September 30,
|
|
September 30,
|
|
Percentage
|
|
June 30,
|
|
Percentage
|
||||
|
|
|
|
|
|
|
|
|||||||||
|
Operating Data |
(Dollars in thousands, except average selling price) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
599 |
|
|
893 |
|
(33%) |
|
|
891 |
|
(33%) |
|||
|
Average selling price |
$ |
345,000 |
|
$ |
302,000 |
|
14% |
|
$ |
355,000 |
|
(3%) |
|||
|
Homebuilding revenues |
$ |
207,466 |
|
$ |
327,411 |
|
(37%) |
|
$ |
317,159 |
|
(35%) |
|||
|
Gross margin % |
|
23.5% |
|
|
13.0% |
|
10.5% |
|
|
20.9% |
|
2.6% |
|||
|
Gross margin % from home sales (excluding impairments)* |
|
23.6% |
|
|
18.6% |
|
5.0% |
|
|
20.9% |
|
2.7% |
|||
|
Gross margin % from home sales (excluding impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
and interest amortized to cost of home sales)* |
|
29.7% |
|
|
24.3% |
|
5.4% |
|
|
27.5% |
|
2.2% |
|||
|
Impairments and write-offs |
$ |
- |
|
$ |
7,814 |
|
(100%) |
|
$ |
- |
|
- |
|||
|
Restructuring charges (excluding debt refinance) |
$ |
- |
|
$ |
1,315 |
|
(100%) |
|
$ |
- |
|
- |
|||
|
SG&A % |
|
17.5% |
|
|
13.3% |
|
4.2% |
|
|
13.7% |
|
3.8% |
|||
|
SG&A % (excluding restructuring charges and land sales)* |
|
17.6% |
|
|
15.6% |
|
2.0% |
|
|
13.7% |
|
3.9% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new orders |
|
555 |
|
|
893 |
|
(38%) |
|
|
719 |
|
(23%) |
|||
|
Average active selling communities |
|
131 |
|
|
134 |
|
(2%) |
|
|
127 |
|
3% |
|||
|
Monthly sales absorption rate per community |
|
1.4 |
|
|
2.2 |
|
(36%) |
|
|
1.9 |
|
(26%) |
|||
|
Cancellation rate |
|
19% |
|
|
15% |
|
4% |
|
|
15% |
|
4% |
|||
|
Cancellations from beginning backlog |
|
82 |
|
|
92 |
|
(11%) |
|
|
76 |
|
8% |
|||
|
Cancellations from current quarter sales |
|
50 |
|
|
71 |
|
(30%) |
|
|
54 |
|
(7%) |
|||
|
Backlog (homes) |
|
605 |
|
|
995 |
|
(39%) |
|
|
649 |
|
(7%) |
|||
|
Backlog (dollar value) |
$ |
214,237 |
|
$ |
329,661 |
|
(35%) |
|
$ |
237,708 |
|
(10%) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows (uses) from operating activities |
$ |
(67,414) |
|
$ |
112,572 |
|
(160%) |
|
$ |
5,349 |
|
(1360%) |
|||
|
Cash flows (uses) from investing activities |
$ |
(35,995) |
|
$ |
(9,241) |
|
290% |
|
$ |
(1,451) |
|
2381% |
|||
|
Cash flows (uses) from financing activities |
$ |
(61,447) |
|
$ |
(147,732) |
|
(58%) |
|
$ |
114,028 |
|
(154%) |
|||
|
Land purchases (incl. seller financing and excl. JV investments) |
$ |
94,672 |
|
$ |
21,595 |
|
338% |
|
$ |
103,278 |
|
(8%) |
|||
|
Land sale proceeds |
$ |
940 |
|
$ |
56,273 |
|
(98%) |
|
$ |
447 |
|
110% |
|||
|
Adjusted Homebuilding EBITDA* |
$ |
29,701 |
|
$ |
31,749 |
|
(6%) |
|
$ |
51,104 |
|
(42%) |
|||
|
Adjusted Homebuilding EBITDA Margin %* |
|
14.3% |
|
|
9.7% |
|
4.6% |
|
|
16.1% |
|
(1.8%) |
|||
|
Homebuilding interest incurred |
$ |
28,070 |
|
$ |
26,218 |
|
7% |
|
$ |
27,730 |
|
1% |
|||
|
Homebuilding interest capitalized to inventories owned |
$ |
17,126 |
|
$ |
12,836 |
|
33% |
|
$ |
16,515 |
|
4% |
|||
|
Homebuilding interest capitalized to investments in JVs |
$ |
687 |
|
$ |
749 |
|
(8%) |
|
$ |
736 |
|
(7%) |
|||
|
Interest amortized to cost of sales (incl. cost of land sales) |
$ |
12,546 |
|
$ |
23,048 |
|
(46%) |
|
$ |
21,325 |
|
(41%) |
|||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
|
|
As of |
|||||||||||||
|
|
|
|
September 30,
|
|
June 30,
|
|
|
Percentage
|
|
December 31,
|
|
Percentage
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Balance Sheet Data |
(Dollars in thousands, except per share amounts) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
$ |
546,096 |
|
$ |
710,385 |
|
|
(23%) |
|
$ |
602,222 |
|
(9%) |
|||
|
Inventories owned |
$ |
1,151,599 |
|
$ |
1,057,238 |
|
|
9% |
|
$ |
986,322 |
|
17% |
|||
|
Building sites owned or controlled |
|
23,250 |
|
|
21,853 |
|
|
6% |
|
|
19,191 |
|
21% |
|||
|
Homes under construction |
|
886 |
|
|
1,003 |
|
|
(12%) |
|
|
934 |
|
(5%) |
|||
|
Completed specs |
|
391 |
|
|
293 |
|
|
33% |
|
|
282 |
|
39% |
|||
|
Deferred tax asset valuation allowance |
$ |
516,133 |
|
$ |
523,041 |
|
|
(1%) |
|
$ |
534,596 |
|
(3%) |
|||
|
Homebuilding debt |
$ |
1,216,786 |
|
$ |
1,239,623 |
|
|
(2%) |
|
$ |
1,156,726 |
|
5% |
|||
|
Joint venture recourse debt |
$ |
7,819 |
|
$ |
34,636 |
|
|
(77%) |
|
$ |
38,835 |
|
(80%) |
|||
|
Stockholders' equity |
$ |
453,475 |
|
$ |
447,710 |
|
|
1% |
|
$ |
435,798 |
|
4% |
|||
|
Stockholders' equity per share (including if-converted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
preferred stock)* |
$ |
1.81 |
|
$ |
1.78 |
|
|
2% |
|
$ |
1.75 |
|
3% |
|||
|
Total debt to book capitalization* |
|
73.4% |
|
|
74.5% |
|
|
(1.1%) |
|
|
73.4% |
|
0.0% |
|||
|
Adjusted net homebuilding debt to total adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
book capitalization* |
|
59.7% |
|
|
54.2% |
|
|
5.5% |
|
|
56.0% |
|
3.7% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All statistical numbers exclude unconsolidated joint ventures and discontinued operations unless noted otherwise. *Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release. |
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|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
|
|
|
|
|
2010 |
|
2009 |
|
|
2010 |
|
2009 |
|||||
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
||||||||||||
|
|
|
|
|
(Unaudited) |
||||||||||||
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Home sale revenues |
$ |
206,516 |
|
$ |
269,873 |
|
|
$ |
698,138 |
|
$ |
760,312 |
|||
|
|
Land sale revenues |
|
950 |
|
|
57,538 |
|
|
|
1,856 |
|
|
66,306 |
|||
|
|
|
Total revenues |
|
207,466 |
|
|
327,411 |
|
|
|
699,994 |
|
|
826,618 |
||
|
|
Cost of home sales |
|
(157,677) |
|
|
(219,641) |
|
|
|
(543,400) |
|
|
(661,211) |
|||
|
|
Cost of land sales |
|
(954) |
|
|
(65,147) |
|
|
|
(1,628) |
|
|
(75,578) |
|||
|
|
|
Total cost of sales |
|
(158,631) |
|
|
(284,788) |
|
|
|
(545,028) |
|
|
(736,789) |
||
|
|
|
|
Gross margin |
|
48,835 |
|
|
42,623 |
|
|
|
154,966 |
|
|
89,829 |
|
|
|
|
|
Gross margin % |
|
23.5% |
|
|
13.0% |
|
|
|
22.1% |
|
|
10.9% |
|
|
|
Selling, general and administrative expenses |
|
(36,339) |
|
|
(43,695) |
|
|
|
(112,504) |
|
|
(142,100) |
|||
|
|
Income (loss) from unconsolidated joint ventures |
|
1,801 |
|
|
(1,960) |
|
|
|
1,141 |
|
|
(4,449) |
|||
|
|
Interest expense |
|
(10,257) |
|
|
(12,633) |
|
|
|
(32,721) |
|
|
(35,409) |
|||
|
|
Loss on early extinguishment of debt |
|
(999) |
|
|
(8,824) |
|
|
|
(6,189) |
|
|
(3,457) |
|||
|
|
Other income (expense) |
|
1,035 |
|
|
(305) |
|
|
|
4,277 |
|
|
(1,309) |
|||
|
|
|
|
Homebuilding pretax income (loss) |
|
4,076 |
|
|
(24,794) |
|
|
|
8,970 |
|
|
(96,895) |
|
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Revenues |
|
3,430 |
|
|
3,762 |
|
|
|
9,711 |
|
|
10,095 |
|||
|
|
Expenses |
|
(2,721) |
|
|
(2,753) |
|
|
|
(8,026) |
|
|
(9,009) |
|||
|
|
Income from unconsolidated joint ventures |
|
- |
|
|
- |
|
|
|
- |
|
|
119 |
|||
|
|
Other income |
|
30 |
|
|
19 |
|
|
|
111 |
|
|
108 |
|||
|
|
|
|
Financial services pretax income |
|
739 |
|
|
1,028 |
|
|
|
1,796 |
|
|
1,313 |
|
|
Income (loss) from continuing operations before income taxes |
|
4,815 |
|
|
(23,766) |
|
|
|
10,766 |
|
|
(95,582) |
||||
|
Provision for income taxes |
|
(272) |
|
|
(33) |
|
|
|
(633) |
|
|
(298) |
||||
|
Income (loss) from continuing operations |
|
4,543 |
|
|
(23,799) |
|
|
|
10,133 |
|
|
(95,880) |
||||
|
Loss from discontinued operations, net of income taxes |
|
- |
|
|
(45) |
|
|
|
- |
|
|
(569) |
||||
|
Net income (loss) |
|
4,543 |
|
|
(23,844) |
|
|
|
10,133 |
|
|
(96,449) |
||||
|
Less: Net (income) loss allocated to preferred stockholder |
|
(2,676) |
|
|
14,500 |
|
|
|
(5,982) |
|
|
59,022 |
||||
|
Net income (loss) available to common stockholders |
$ |
1,867 |
|
$ |
(9,344) |
|
|
$ |
4,151 |
|
$ |
(37,427) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Continuing operations |
$ |
0.02 |
|
$ |
(0.10) |
|
|
$ |
0.04 |
|
$ |
(0.40) |
|||
|
|
Discontinued operations |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|||
|
|
Basic income (loss) per common share |
$ |
0.02 |
|
$ |
(0.10) |
|
|
$ |
0.04 |
|
$ |
(0.40) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Continuing operations |
$ |
0.02 |
|
$ |
(0.10) |
|
|
$ |
0.04 |
|
$ |
(0.40) |
|||
|
|
Discontinued operations |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|||
|
|
Diluted income (loss) per common share |
$ |
0.02 |
|
$ |
(0.10) |
|
|
$ |
0.04 |
|
$ |
(0.40) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Basic |
|
103,100,974 |
|
|
95,250,351 |
|
|
|
102,582,491 |
|
|
93,731,253 |
|||
|
|
Diluted |
|
106,137,371 |
|
|
95,250,351 |
|
|
|
111,005,597 |
|
|
93,731,253 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average additional common shares outstanding if preferred shares converted to common shares |
|
147,812,786 |
|
|
147,812,786 |
|
|
|
147,812,786 |
|
|
147,812,786 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGIONAL OPERATING DATA |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||
|
|
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
||||||||||||||
|
|
|
|
|
Homes |
|
Avg. Selling Price |
|
Homes |
|
Avg. Selling Price |
|
Homes |
|
|
Avg. Selling Price |
|
Homes |
|
Avg. Selling Price |
|||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
California |
234 |
|
$ |
508,000 |
|
347 |
|
$ |
442,000 |
|
826 |
|
$ |
502,000 |
|
948 |
|
$ |
429,000 |
||||
|
|
Arizona |
45 |
|
|
214,000 |
|
75 |
|
|
202,000 |
|
154 |
|
|
204,000 |
|
209 |
|
|
210,000 |
||||
|
|
Texas |
95 |
|
|
291,000 |
|
82 |
|
|
269,000 |
|
286 |
|
|
294,000 |
|
328 |
|
|
279,000 |
||||
|
|
Colorado |
28 |
|
|
302,000 |
|
37 |
|
|
312,000 |
|
93 |
|
|
296,000 |
|
113 |
|
|
305,000 |
||||
|
|
Nevada |
6 |
|
|
208,000 |
|
5 |
|
|
226,000 |
|
15 |
|
|
201,000 |
|
13 |
|
|
226,000 |
||||
|
|
Florida |
103 |
|
|
196,000 |
|
235 |
|
|
181,000 |
|
347 |
|
|
192,000 |
|
603 |
|
|
189,000 |
||||
|
|
Carolinas |
88 |
|
|
230,000 |
|
112 |
|
|
216,000 |
|
306 |
|
|
231,000 |
|
308 |
|
|
218,000 |
||||
|
|
|
|
Consolidated total |
599 |
|
|
345,000 |
|
893 |
|
|
302,000 |
|
2,027 |
|
|
344,000 |
|
2,522 |
|
|
301,000 |
||
|
|
Unconsolidated joint ventures |
12 |
|
|
456,000 |
|
15 |
|
|
548,000 |
|
40 |
|
|
467,000 |
|
92 |
|
|
524,000 |
||||
|
|
Discontinued operations |
- |
|
|
- |
|
1 |
|
|
130,000 |
|
- |
|
|
- |
|
4 |
|
|
201,000 |
||||
|
|
Total (including joint ventures) |
611 |
|
$ |
347,000 |
|
909 |
|
$ |
306,000 |
|
2,067 |
|
$ |
347,000 |
|
2,618 |
|
$ |
309,000 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|||||||||
|
|
|
|
|
Homes |
|
Avg. Selling Communities |
|
Homes |
|
Avg. Selling Communities |
|
Homes |
|
Avg. Selling Communities |
|
Homes |
|
Avg. Selling Communities |
|
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
California |
223 |
|
46 |
|
377 |
|
49 |
|
824 |
|
45 |
|
1,139 |
|
52 |
|||
|
|
Arizona |
39 |
|
10 |
|
79 |
|
7 |
|
145 |
|
9 |
|
235 |
|
9 |
|||
|
|
Texas |
76 |
|
16 |
|
96 |
|
19 |
|
277 |
|
17 |
|
335 |
|
19 |
|||
|
|
Colorado |
26 |
|
4 |
|
34 |
|
6 |
|
77 |
|
5 |
|
95 |
|
6 |
|||
|
|
Nevada |
11 |
|
1 |
|
2 |
|
2 |
|
26 |
|
1 |
|
10 |
|
2 |
|||
|
|
Florida |
98 |
|
28 |
|
189 |
|
28 |
|
356 |
|
26 |
|
617 |
|
33 |
|||
|
|
Carolinas |
82 |
|
26 |
|
116 |
|
23 |
|
328 |
|
25 |
|
365 |
|
24 |
|||
|
|
|
|
Consolidated total |
555 |
|
131 |
|
893 |
|
134 |
|
2,033 |
|
128 |
|
2,796 |
|
145 |
|
|
|
Unconsolidated joint ventures |
10 |
|
3 |
|
28 |
|
5 |
|
38 |
|
3 |
|
167 |
|
8 |
|||
|
|
Discontinued operations |
- |
|
- |
|
1 |
|
- |
|
- |
|
- |
|
3 |
|
- |
|||
|
|
Total (including joint ventures) |
565 |
|
134 |
|
922 |
|
139 |
|
2,071 |
|
131 |
|
2,966 |
|
153 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
||||||||||||
|
|
|
|
|
2010 |
|
2009 |
||||||||||
|
Backlog ($ in thousands): |
Homes |
|
Value |
|
Homes |
|
Value |
|||||||||
|
|
California |
|
245 |
|
$ |
123,083 |
|
|
424 |
|
$ |
190,185 |
||||
|
|
Arizona |
|
38 |
|
|
8,184 |
|
|
102 |
|
|
21,815 |
||||
|
|
Texas |
|
100 |
|
|
30,907 |
|
|
137 |
|
|
42,849 |
||||
|
|
Colorado |
|
38 |
|
|
11,412 |
|
|
60 |
|
|
18,022 |
||||
|
|
Nevada |
|
11 |
|
|
2,220 |
|
|
1 |
|
|
213 |
||||
|
|
Florida |
|
87 |
|
|
18,291 |
|
|
161 |
|
|
31,457 |
||||
|
|
Carolinas |
|
86 |
|
|
20,140 |
|
|
110 |
|
|
25,120 |
||||
|
|
|
|
Consolidated total |
|
605 |
|
|
214,237 |
|
|
995 |
|
|
329,661 |
||
|
|
Unconsolidated joint ventures |
|
7 |
|
|
3,148 |
|
|
22 |
|
|
10,722 |
||||
|
|
Total (including joint ventures) |
|
612 |
|
$ |
217,385 |
|
|
1,017 |
|
$ |
340,383 |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
At September 30, |
|||
|
|
|
|
|
|
2010 |
|
2009 |
|
|
Building sites owned or controlled: |
|
|
|
|
||||
|
|
California |
|
9,646 |
|
7,740 |
|||
|
|
Arizona |
|
1,982 |
|
1,925 |
|||
|
|
Texas |
|
2,448 |
|
1,676 |
|||
|
|
Colorado |
|
392 |
|
261 |
|||
|
|
Nevada |
|
1,203 |
|
1,906 |
|||
|
|
Florida |
|
5,001 |
|
4,856 |
|||
|
|
Carolinas |
|
2,578 |
|
1,656 |
|||
|
|
|
Total (including joint ventures) |
|
23,250 |
|
20,020 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Building sites owned |
|
17,468 |
|
15,516 |
|||
|
|
Building sites optioned or subject to contract |
|
4,320 |
|
2,543 |
|||
|
|
Joint venture lots |
|
1,462 |
|
1,961 |
|||
|
|
|
Total (including joint ventures) |
|
23,250 |
|
20,020 |
||
|
|
|
|
|
|
|
|
|
|
|
Building sites owned: |
|
|
|
|
||||
|
|
Raw lots |
|
5,080 |
|
3,792 |
|||
|
|
Lots under development |
|
3,469 |
|
2,537 |
|||
|
|
Finished lots |
|
7,189 |
|
7,142 |
|||
|
|
Under construction or completed homes |
|
1,730 |
|
2,045 |
|||
|
|
|
Total |
|
17,468 |
|
15,516 |
||
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
September
|
December
|
||||
|
|
|
|
|
|
|
(Dollars in thousands) |
|||||
|
ASSETS |
(Unaudited) |
|
|
|
|||||||
|
Homebuilding: |
|
|
|
|
|
|
|
||||
|
|
Cash and equivalents |
$ |
529,113 |
|
$ |
587,152 |
|||||
|
|
Restricted cash |
|
|
16,983 |
|
|
15,070 |
||||
|
|
Trade and other receivables |
|
13,673 |
|
|
12,676 |
|||||
|
|
Inventories: |
|
|
|
|
|
|
|
|||
|
|
|
Owned |
|
|
|
1,151,599 |
|
|
986,322 |
||
|
|
|
Not owned |
|
|
17,278 |
|
|
11,770 |
|||
|
|
Investments in unconsolidated joint ventures |
|
79,481 |
|
|
40,415 |
|||||
|
|
Deferred income taxes, net |
|
10,791 |
|
|
9,431 |
|||||
|
|
Other assets |
|
|
|
29,537 |
|
|
131,086 |
|||
|
|
|
|
|
|
|
|
1,848,455 |
|
|
1,793,922 |
|
|
Financial Services: |
|
|
|
|
|
|
|||||
|
|
Cash and equivalents |
|
10,215 |
|
|
8,407 |
|||||
|
|
Restricted cash |
|
|
2,870 |
|
|
3,195 |
||||
|
|
Mortgage loans held for sale, net |
|
36,134 |
|
|
41,048 |
|||||
|
|
Mortgage loans held for investment, net |
|
10,378 |
|
|
10,818 |
|||||
|
|
Other assets |
|
|
|
3,528 |
|
|
3,621 |
|||
|
|
|
|
|
|
|
|
63,125 |
|
|
67,089 |
|
|
|
|
|
Total Assets |
$ |
1,911,580 |
|
$ |
1,861,011 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
|
|
|
||||
|
|
Accounts payable and accrued liabilities |
$ |
204,375 |
|
$ |
222,550 |
|||||
|
|
Secured project debt and other notes payable |
|
4,857 |
|
|
59,531 |
|||||
|
|
Senior notes payable |
|
1,109,848 |
|
|
993,018 |
|||||
|
|
Senior subordinated notes payable |
|
102,081 |
|
|
104,177 |
|||||
|
|
|
|
|
|
|
|
1,421,161 |
|
|
1,379,276 |
|
|
Financial Services: |
|
|
|
|
|
|
|||||
|
|
Accounts payable and other liabilities |
|
1,342 |
|
|
1,436 |
|||||
|
|
Mortgage credit facilities |
|
35,602 |
|
|
40,995 |
|||||
|
|
|
|
|
|
|
|
36,944 |
|
|
42,431 |
|
|
|
|
|
Total Liabilities |
|
1,458,105 |
|
|
1,421,707 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
||
|
|
Stockholders' Equity: |
|
|
|
|
|
|||||
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares |
|
|
|
|
|
||||
|
|
|
|
issued and outstanding at September 30, 2010 and December 31, 2009, respectively |
5 |
|
|
5 |
||||
|
|
|
Common stock, $0.01 par value; 600,000,000 shares authorized; 107,147,906 |
|
|
|
|
|
||||
|
|
|
|
and 105,293,180 shares issued and outstanding at September 30, 2010 and |
|
|
|
|
|
|||
|
|
|
|
December 31, 2009, respectively |
|
1,071 |
|
|
1,053 |
|||
|
|
|
Additional paid-in capital |
|
1,040,270 |
|
|
1,030,664 |
||||
|
|
|
Accumulated deficit |
|
(570,495) |
|
|
(580,628) |
||||
|
|
|
Accumulated other comprehensive loss, net of tax |
|
(17,376) |
|
|
(15,296) |
||||
|
|
|
Total Stockholders' Equity |
|
453,475 |
|
|
435,798 |
||||
|
|
Noncontrolling Interests |
|
- |
|
|
3,506 |
|||||
|
|
|
Total Equity |
|
|
453,475 |
|
|
439,304 |
|||
|
|
|
|
Total Liabilities and Equity |
$ |
1,911,580 |
|
$ |
1,861,011 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
(Dollars in thousands) |
|||
|
Inventories Owned: |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Land and land under development |
|
$ 741,607 |
|
$ 564,516 |
|
|
Homes completed and under construction |
|
312,971 |
|
316,323 |
|
|
Model homes |
|
97,021 |
|
105,483 |
|
|
Total inventories owned |
|
$ 1,151,599 |
|
$ 986,322 |
|
|
|
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
$ 720,696 |
|
$ 618,336 |
|
|
Southwest |
|
209,576 |
|
196,279 |
|
|
Southeast |
|
221,327 |
|
171,707 |
|
|
Total inventories owned |
|
$ 1,151,599 |
|
$ 986,322 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
Each of the below measures are not GAAP financial measures and other companies may calculate such non-GAAP measures differently. Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP. |
|
|
|
|
|
The table set forth below reconciles the Company's net income to net income excluding the loss on early extinguishment of debt. We believe this measure is useful to management and investors as it provides perspective on the underlying operating performance of the business excluding this charge and provides comparability with the Company's peer group. Net income excluding the loss on early extinguishment of debt for the three months ended September 30, 2010 is calculated as follows (dollars in thousands): |
|
|
Net income |
$ |
4,543 |
|
|
Add: Loss on early extinguishment of debt |
|
999 |
|
|
Net income, as adjusted |
|
5,542 |
|
|
Less: Adjusted net income allocated to preferred stockholder |
|
(3,265) |
|
|
Adjusted net income available to common stockholders |
$ |
2,277 |
|
|
|
|
|
|
|
Diluted earnings per common share |
$ |
0.02 |
|
|
Weighted average diluted common shares outstanding |
|
106,137,371 |
|
|
|
|
|
|
|
The table set forth below reconciles the Company's homebuilding gross margin percentage to the gross margin percentage from home sales, excluding housing inventory impairment charges and interest amortized to cost of home sales. We believe these measures are useful to management and investors as they provide perspective on the underlying operating performance of the business excluding these charges and provide comparability with the Company's peer group. |
|
|
|
Three Months Ended |
||||||||||||||
|
|
September 30,
|
|
Gross
|
|
September 30
|
|
Gross
|
|
June 30,
|
|
Gross
|
||||
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding gross margin |
$ |
48,835 |
|
23.5% |
|
$ |
42,623 |
|
13.0% |
|
$ |
66,268 |
|
20.9% |
|
|
Less: Land sale revenues |
|
(950) |
|
|
|
|
(57,538) |
|
|
|
|
(450) |
|
|
|
|
Add: Cost of land sales |
|
954 |
|
|
|
|
65,147 |
|
|
|
|
421 |
|
|
|
|
Gross margin from home sales |
|
48,839 |
|
23.6% |
|
|
50,232 |
|
18.6% |
|
|
66,239 |
|
20.9% |
|
|
Add: Housing inventory impairment charges |
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
Gross margin from home sales, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges |
|
48,839 |
|
23.6% |
|
|
50,232 |
|
18.6% |
|
|
66,239 |
|
20.9% |
|
|
Add: Capitalized interest included in cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of home sales |
|
12,546 |
|
6.1% |
|
|
15,383 |
|
5.7% |
|
|
20,943 |
|
6.6% |
|
|
Gross margin from home sales, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges and interest amortized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to cost of home sales |
$ |
61,385 |
|
29.7% |
|
$ |
65,615 |
|
24.3% |
|
$ |
87,182 |
|
27.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Company's SG&A expenses to SG&A expenses excluding restructuring charges. We believe these measures are useful to management and investors as they provide perspective on the underlying operating performance of the business excluding these charges. |
|
|
|
Three Months Ended |
||||||||
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
||||
|
|
(Dollars in thousands) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
$ |
36,339 |
|
$ |
43,695 |
|
$ |
43,413 |
|
|
Less: Restructuring charges |
|
- |
|
|
(1,495) |
|
|
- |
|
|
Selling, general and administrative expenses, excluding restructuring charges |
$ |
36,339 |
|
$ |
42,200 |
|
$ |
43,413 |
|
|
SG&A % from home sales, excluding restructuring charges |
|
17.6% |
|
|
15.6% |
|
|
13.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) |
|
|
|
|
|
The table set forth below reconciles the Company's cash flows from operations to cash flows from operations excluding land purchases and proceeds from land sales. We believe this measure is useful to management and investors to provide perspective on underlying cash flow generation excluding swings related to the timing of land purchases and land sales. |
|
|
|
Three Months Ended |
|
||||||||
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
|
||||
|
|
(Dollars in thousands) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) operations |
$ |
(67,414) |
|
$ |
112,572 |
|
$ |
5,349 |
|
|
|
Add: Cash land purchases |
|
91,272 |
|
|
21,595 |
|
|
79,364 |
|
|
|
Less: Land sale proceeds |
|
(940) |
|
|
(56,273) |
|
|
(447) |
|
|
|
Cash flows from operations (excluding land purchases and land sales) |
$ |
22,918 |
|
$ |
77,894 |
|
$ |
84,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total debt to book capitalization and adjusted net homebuilding debt to total adjusted book capitalization ratios. We believe that the adjusted net homebuilding debt to total adjusted book capitalization ratio is useful to management and investors as a measure of the Company's ability to obtain financing. For purposes of the ratio of adjusted net homebuilding debt to total adjusted book capitalization, total adjusted book capitalization is adjusted net homebuilding debt plus stockholders' equity. Adjusted net homebuilding debt excludes indebtedness included in liabilities from inventories not owned, indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents. |
|
|
|
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
September 30,
|
|||||
|
|
|
|
|
|
|
|||||||||
|
|
|
|
(Dollars in thousands) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated debt |
$ |
1,252,388 |
|
$ |
1,304,749 |
|
$ |
1,199,621 |
|
$ |
1,490,134 |
|||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Indebtedness included in liabilities from inventories not owned |
|
- |
|
|
- |
|
|
(1,900) |
|
|
- |
||
|
|
Financial services indebtedness |
|
(35,602) |
|
|
(65,126) |
|
|
(40,995) |
|
|
(38,798) |
||
|
|
Homebuilding cash |
|
(546,096) |
|
|
(710,385) |
|
|
(602,222) |
|
|
(806,766) |
||
|
Adjusted net homebuilding debt |
|
670,690 |
|
|
529,238 |
|
|
554,504 |
|
|
644,570 |
|||
|
Stockholders' equity |
|
453,475 |
|
|
447,710 |
|
|
435,798 |
|
|
349,591 |
|||
|
Total adjusted book capitalization |
$ |
1,124,165 |
|
$ |
976,948 |
|
$ |
990,302 |
|
$ |
994,161 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to book capitalization |
|
73.4% |
|
|
74.5% |
|
|
73.4% |
|
|
81.0% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net homebuilding debt to total adjusted book capitalization ratio |
|
59.7% |
|
|
54.2% |
|
|
56.0% |
|
|
64.8% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below calculates pro forma stockholders' equity per common share. The pro forma common shares outstanding include the if-converted Series B Preferred Stock. In addition, this calculation excludes 3.9 million shares issued under a share lending agreement related to the Company's 6% Convertible Senior Subordinated Notes issued on September 28, 2007. The Company believes that the pro forma stockholders' equity per common share information is useful to management and investors as a measure to determine the book value per common share after giving effect of the issuance of preferred shares assuming full conversion to common stock and excluding shares outstanding under the share lending agreement. The following table reconciles actual common shares outstanding to pro forma common shares outstanding used to calculate pro forma stockholders' equity per share: |
|
|
|
September 30, 2010 |
|
June 30, 2010 |
|
March 31, 2010 |
|
December 31, 2009 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual common shares outstanding |
|
107,147,906 |
|
|
106,957,421 |
|
|
106,165,483 |
|
|
105,293,180 |
|
|
Add: Conversion of preferred shares to common shares |
|
147,812,786 |
|
|
147,812,786 |
|
|
147,812,786 |
|
|
147,812,786 |
|
|
Less: Common shares outstanding under share lending facility |
|
(3,919,904) |
|
|
(3,919,904) |
|
|
(3,919,904) |
|
|
(3,919,904) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma common shares outstanding |
|
251,040,788 |
|
|
250,850,303 |
|
|
250,058,365 |
|
|
249,186,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (actual amounts rounded to nearest thousand) |
$ |
453,475,000 |
|
$ |
447,710,000 |
|
$ |
434,568,000 |
|
$ |
435,798,000 |
|
|
Divided by pro forma common shares outstanding |
÷ |
251,040,788 |
|
÷ |
250,850,303 |
|
÷ |
250,058,365 |
|
÷ |
249,186,062 |
|
|
Pro forma stockholders' equity per common share |
$ |
1.81 |
|
$ |
1.78 |
|
$ |
1.74 |
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) |
|
|
|
|
|
The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing. Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP. |
|
|
|
|
|
|
|
|
Three Months Ended |
|
LTM Ended September 30, |
||||||||||||
|
|
|
|
September
2010 |
|
September
2009 |
|
June
2010 |
|
2010 |
|
2009 |
||||||
|
|
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
4,543 |
|
$ |
(23,844) |
|
$ |
10,661 |
|
$ |
92,796 |
|
$ |
(494,292) |
|||
|
|
Provision (benefit) for income taxes |
|
272 |
|
|
- |
|
|
272 |
|
|
(95,930) |
|
|
(47,678) |
||
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
22,803 |
|
|
35,681 |
|
|
31,804 |
|
|
117,692 |
|
|
129,526 |
||
|
|
Homebuilding depreciation and amortization |
|
479 |
|
|
672 |
|
|
539 |
|
|
2,201 |
|
|
3,356 |
||
|
|
Amortization of stock-based compensation |
|
3,115 |
|
|
1,651 |
|
|
3,519 |
|
|
14,203 |
|
|
8,037 |
||
|
EBITDA |
|
31,212 |
|
|
14,160 |
|
|
46,795 |
|
|
130,962 |
|
|
(401,051) |
|||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash distributions of income from unconsolidated joint ventures |
|
- |
|
|
- |
|
|
- |
|
|
3,139 |
|
|
1,530 |
||
|
|
Impairment charges |
|
- |
|
|
7,814 |
|
|
- |
|
|
11,192 |
|
|
472,734 |
||
|
|
(Gain) loss on early extinguishment of debt |
|
999 |
|
|
8,824 |
|
|
5,190 |
|
|
9,663 |
|
|
7,813 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Income (loss) from unconsolidated joint ventures |
|
1,801 |
|
|
(1,960) |
|
|
(226) |
|
|
874 |
|
|
(25,542) |
||
|
|
Income (loss) from financial services subsidiary |
|
709 |
|
|
1,009 |
|
|
1,107 |
|
|
1,927 |
|
|
1,180 |
||
|
Adjusted Homebuilding EBITDA |
$ |
29,701 |
|
$ |
31,749 |
|
$ |
51,104 |
|
$ |
152,155 |
|
$ |
105,388 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
207,466 |
|
$ |
327,411 |
|
$ |
317,159 |
|
$ |
1,039,773 |
|
$ |
1,203,017 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
14.3% |
|
|
9.7% |
|
|
16.1% |
|
|
14.6% |
|
|
8.8% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles net cash provided by (used in) operating activities, from continuing and discontinued operations, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA: |
|
|
|
|
|
|
Three Months Ended |
|
LTM Ended September 30, |
|||||||||||||
|
|
|
|
|
September
2010 |
|
September
2009 |
|
June
2010 |
|
2010 |
|
2009 |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net cash provided by (used in) operating activities |
|
$ |
(67,414) |
|
$ |
112,572 |
|
$ |
5,349 |
|
$ |
81,170 |
|
$ |
375,353 |
||||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Provision (benefit) for income taxes |
|
272 |
|
|
- |
|
|
272 |
|
|
(95,930) |
|
|
(47,678) |
||||
|
|
Deferred tax valuation allowance |
|
|
6,908 |
|
|
(9,278) |
|
|
13,603 |
|
|
107,250 |
|
|
(162,280) |
|||
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
|
22,803 |
|
|
35,681 |
|
|
31,804 |
|
|
117,692 |
|
|
129,526 |
|||
|
|
Excess tax benefits from share-based payment arrangements |
|
|
- |
|
|
- |
|
|
- |
|
|
324 |
|
|
- |
|||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Income (loss) from financial services subsidiary |
|
709 |
|
|
1,009 |
|
|
1,107 |
|
|
1,927 |
|
|
1,180 |
||||
|
|
Depreciation and amortization from financial services subsidiary |
|
|
280 |
|
|
169 |
|
|
153 |
|
|
753 |
|
|
700 |
|||
|
|
(Gain) loss on disposal of property and equipment |
|
1 |
|
|
1 |
|
|
- |
|
|
1,237 |
|
|
3,230 |
||||
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Trade and other receivables |
|
(579) |
|
|
(2,191) |
|
|
(6,518) |
|
|
(3,993) |
|
|
(15,287) |
|||
|
|
|
Mortgage loans held for sale |
|
|
(31,621) |
|
|
(16,071) |
|
|
34,319 |
|
|
(7,548) |
|
|
(20,039) |
||
|
|
|
Inventories-owned |
|
83,309 |
|
|
(103,969) |
|
|
(3,715) |
|
|
35,883 |
|
|
(303,581) |
|||
|
|
|
Inventories-not owned |
|
|
6,520 |
|
|
324 |
|
|
6,488 |
|
|
25,413 |
|
|
(5,715) |
||
|
|
|
Deferred income taxes |
|
(7,180) |
|
|
9,277 |
|
|
(13,875) |
|
|
(11,320) |
|
|
169,218 |
|||
|
|
|
Other assets |
|
596 |
|
|
1,997 |
|
|
(1,030) |
|
|
(110,433) |
|
|
(91,100) |
|||
|
|
|
Accounts payable and accrued liabilities |
|
|
17,077 |
|
|
4,586 |
|
|
(14,333) |
|
|
17,564 |
|
|
82,081 |
||
|
Adjusted Homebuilding EBITDA |
|
$ |
29,701 |
|
$ |
31,749 |
|
$ |
51,104 |
|
$ |
152,155 |
|
$ |
105,388 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
SOURCE Standard Pacific Corp.