IRVINE, Calif., July 28, 2011 /PRNewswire/ --
Standard Pacific Corp. (NYSE: SPF) reported a net loss in the 2011 second quarter of $10.5 million, or $0.03 per share, on homebuilding revenues of $204.3 million compared to net income of $10.7 million, or $0.04 per share, on homebuilding revenues of $317.2 million in the 2010 second quarter. The net loss in the 2011 second quarter included $6.0 million of inventory impairment charges and a $2.2 million charge related to management changes. The Company's adjusted net loss of $2.4 million* in the 2011 second quarter (excluding impairment charges and the management change charge) improved significantly compared to a net loss of $14.8 million in the previous quarter.
2011 Second Quarter Highlights
Ken Campbell, the Company's CEO commented, "We are excited about our new communities coming out of the ground. It was a bit painful last year when we slowed our growth in order to re-design our homes, but we are now pleased with the results. Managing to open this many communities without increasing our overhead is a tribute to our team; kind of remarkable accomplishment in my opinion. With over 20 new communities scheduled to open before year-end, we have more excitement (and more hard work) to look forward to."
Mr. Campbell continued, "The slowdown in land buying should not be viewed as a change in strategy. We are still pursuing a significant land pipeline, but will continue to maintain our pricing discipline in the face of a pretty poor sales environment. Hopefully, land sellers will get more reasonable on pricing, or other land buyers' enthusiasm will wane as we muddle through this difficult market. The current slowdown does not concern us too much since we have already committed to purchase enough land to support growth through 2012."
Homebuilding revenues decreased 36% from $317.2 million for the 2010 second quarter to $204.3 million for the 2011 second quarter driven primarily by a 32% decline in new home deliveries to 610 homes. The Company's consolidated average home price for the 2011 second quarter was $335 thousand, down from $355 thousand for the year earlier period, largely due to the delivery of three luxury homes with an average selling price of approximately $6 million from one of the Company's Southern California coastal communities during the 2010 second quarter as compared to no deliveries from this community during the 2011 second quarter.
Gross margin from home sales for the 2011 second quarter was 17.0% (20.0%* excluding $6.0 million of inventory impairment charges) versus 20.9% for the year earlier period. The impairments related to two homebuilding projects in Northern California totaling $3.9 million and one homebuilding project in Arizona for $2.1 million. Excluding inventory impairment charges and previously capitalized interest costs, gross margin from home sales for the 2011 second quarter was 27.9%* versus 27.5%* for the 2010 second quarter.
The Company's 2011 second quarter SG&A expenses (including Corporate G&A) were $38.4 million compared to $43.4 million for the 2010 second quarter and included noncash stock-based compensation expenses of $3.5 million for both periods. The SG&A rate from home sales was 18.8% for the 2011 second quarter versus 13.7% for the 2010 second quarter. SG&A expenses for the 2011 second quarter included approximately $2.2 million of severance and other charges incurred in connection with executive management changes ($1.0 million of which was included in noncash stock-based compensation expenses). The Company's G&A expenses (excluding incentive compensation, severance and management change expenses) were $22.4 million for the 2011 second quarter, compared to $22.8 million for the 2010 second quarter, and $22.4 million for the 2011 first quarter. Excluding the charges related to executive management changes, the Company's 2011 second quarter SG&A rate was 17.8%*. The increase in the Company's SG&A rate was primarily the result of a 36% decrease in revenues from home sales and higher sales and marketing costs associated with new community openings.
Net new orders (excluding joint ventures) for the 2011 second quarter increased 6% from the 2010 second quarter to 764 homes on a 20% increase in the number of average active selling communities from 127 to 153. The Company's monthly sales absorption rate for the 2011 second quarter was 1.7 per community compared to 1.9 per community for the 2010 second quarter and 1.6 per community for the 2011 first quarter. The Company's cancellation rate for the 2011 second quarter was 14%, consistent with 15% for the 2010 second quarter and 14% for the 2011 first quarter. The total number of sales cancellations for the 2011 second quarter was 129, of which 65 cancellations related to homes in the Company's 2011 second quarter beginning backlog and 64 related to orders generated during the quarter.
The dollar value of homes in backlog (excluding joint ventures) increased 24% to $293.8 million, or 781 homes, compared to $237.7 million, or 649 homes, for the 2010 second quarter, and increased 39% compared to $211.8 million, or 627 homes, for the 2011 first quarter. The increase in backlog value compared to the 2010 second quarter was driven primarily by a 6% increase in net new orders and a decrease in the percentage of new homes delivered from beginning backlog in the 2011 second quarter as compared to the prior year period.
The Company used $122.0 million of cash flows from operating activities for the 2011 second quarter versus generating $5.3 million of cash flows from operating activities in the 2010 second quarter. The decline in cash flows from operations as compared to the 2010 second quarter was driven primarily by a $112.8 million decrease in homebuilding revenues and a $12.8 million increase in land purchases. Cash outflows from operations for the three months ended June 30, 2011 and 2010 included $92.2 million and $79.4 million, respectively, of cash land purchases. Excluding cash land purchases and development costs, cash inflows from operating activities for the 2011 second quarter were $1.9 million* versus cash inflows of $99.0 million* in the 2010 second quarter.
During the 2011 second quarter, the Company approved (but had not yet consummated) the purchase of $98.5 million of land, comprised of 1,493 lots. Approximately 43% of the land approvals related to land located in California and 41% in Texas, with the balance spread throughout the Company's other operations. During the same period, the Company purchased $92.2 million of land, comprised of 1,461 lots. Approximately 55% of the land purchases related to land located in California and 35% in Texas, with the balance spread throughout the Company's other operations.
Earnings Conference Call
A conference call to discuss the Company's 2011 second quarter results will be held at 11:00 a.m. Eastern time July 29, 2011. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://ir.standardpacifichomes.com. The call will also be accessible via telephone by dialing (888) 631-5929 (domestic) or (913) 312-1410 (international); Passcode: 1590954. The audio transmission with the 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: 1590954.
About Standard Pacific
Standard Pacific, one of the nation's largest homebuilders, has built more than 113,000 homes during its 45-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 opening of new communities; the dollar value and timing of anticipated land purchases; the availability of land opportunities and our ability to consummate these opportunities; our growth; 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, 2010 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.
Contact:
Jeff McCall, EVP & CFO (949) 789-1655, jmccall@stanpac.com
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.
|
(Note: Tables Follow) KE Y STATISTICS AND FINANCIAL DATA(1) |
||||||||||||||
|
|
|
As of or For the Three Months Ended |
||||||||||||
|
|
|
June 30, |
|
June 30, |
|
Percentage |
|
March 31, |
|
Percentage |
||||
|
|
|
2011 |
|
2010 |
|
or % Change |
|
2011 |
|
or % Change |
||||
|
Operating Data |
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
610 |
|
|
891 |
|
(32%) |
|
|
439 |
|
39% |
||
|
Average selling price |
$ |
335 |
|
$ |
355 |
|
(6%) |
|
$ |
327 |
|
2% |
||
|
Home sale revenues |
$ |
204,236 |
|
$ |
316,709 |
|
(36%) |
|
$ |
143,699 |
|
42% |
||
|
Gross margin % |
|
17.0% |
|
|
20.9% |
|
(3.9%) |
|
|
20.5% |
|
(3.5%) |
||
|
Gross margin % from home sales (excluding impairments)* |
|
20.0% |
|
|
20.9% |
|
(0.9%) |
|
|
20.5% |
|
(0.5%) |
||
|
Gross margin % from home sales (excluding impairments and |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
interest amortized to cost of home sales)* |
|
27.9% |
|
|
27.5% |
|
0.4% |
|
|
28.1% |
|
(0.2%) |
|
|
Asset impairments |
$ |
5,959 |
|
$ |
- |
|
- |
|
$ |
- |
|
- |
||
|
Severance and other charges |
$ |
2,178 |
|
$ |
- |
|
- |
|
$ |
561 |
|
288% |
||
|
Selling expenses |
$ |
11,306 |
|
$ |
14,980 |
|
(25%) |
|
$ |
8,391 |
|
35% |
||
|
Marketing expenses |
$ |
3,712 |
|
$ |
2,885 |
|
29% |
|
$ |
2,981 |
|
25% |
||
|
G&A expenses (excluding severance and other charges) |
$ |
21,247 |
|
$ |
25,548 |
|
(17%) |
|
$ |
20,328 |
|
5% |
||
|
SG&A expenses |
$ |
38,443 |
|
$ |
43,413 |
|
(11%) |
|
$ |
32,261 |
|
19% |
||
|
SG&A % from home sales |
|
18.8% |
|
|
13.7% |
|
5.1% |
|
|
22.5% |
|
(3.7%) |
||
|
SG&A % from home sales (excluding severance and other charges)* |
|
17.8% |
|
|
13.7% |
|
4.1% |
|
|
22.1% |
|
(4.3%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new orders |
|
764 |
|
|
719 |
|
6% |
|
|
652 |
|
17% |
||
|
Average active selling communities |
|
153 |
|
|
127 |
|
20% |
|
|
138 |
|
11% |
||
|
Monthly sales absorption rate per community |
|
1.7 |
|
|
1.9 |
|
(11%) |
|
|
1.6 |
|
6% |
||
|
Cancellation rate |
|
14% |
|
|
15% |
|
(1%) |
|
|
14% |
|
- |
||
|
Gross cancellations |
|
129 |
|
|
76 |
|
70% |
|
|
106 |
|
22% |
||
|
Cancellations from current quarter sales |
|
64 |
|
|
54 |
|
19% |
|
|
47 |
|
36% |
||
|
Backlog (homes) |
|
781 |
|
|
649 |
|
20% |
|
|
627 |
|
25% |
||
|
Backlog (dollar value) |
$ |
293,804 |
|
$ |
237,708 |
|
24% |
|
$ |
211,813 |
|
39% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows (uses) from operating activities |
$ |
(121,963) |
|
$ |
5,349 |
|
(2380%) |
|
$ |
(110,150) |
|
11% |
||
|
Cash flows (uses) from investing activities |
$ |
(5,475) |
|
$ |
(1,451) |
|
277% |
|
$ |
(4,049) |
|
35% |
||
|
Cash flows (uses) from financing activities |
$ |
12,938 |
|
$ |
114,028 |
|
(89%) |
|
$ |
(18,997) |
|
(168%) |
||
|
Land purchases (incl. seller financing and excl. JV investments) |
$ |
92,171 |
|
$ |
103,278 |
|
(11%) |
|
$ |
87,110 |
|
6% |
||
|
Adjusted Homebuilding EBITDA* |
$ |
23,678 |
|
$ |
51,104 |
|
(54%) |
|
$ |
11,018 |
|
115% |
||
|
Adjusted Homebuilding EBITDA Margin %* |
|
11.6% |
|
|
16.1% |
|
(4.5%) |
|
|
7.7% |
|
3.9% |
||
|
Homebuilding interest incurred |
$ |
35,353 |
|
$ |
27,730 |
|
27% |
|
$ |
34,854 |
|
1% |
||
|
Homebuilding interest capitalized to inventories owned |
$ |
26,186 |
|
$ |
16,515 |
|
59% |
|
$ |
22,710 |
|
15% |
||
|
Homebuilding interest capitalized to investments in JVs |
$ |
1,723 |
|
$ |
736 |
|
134% |
|
$ |
1,629 |
|
6% |
||
|
Interest amortized to cost of sales (incl. cost of land sales) |
$ |
16,146 |
|
$ |
21,325 |
|
(24%) |
|
$ |
10,980 |
|
47% |
||
|
|
|
As of |
|||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
Percentage |
|
December 31, |
|
Percentage |
||
|
|
|
2011 |
|
|
2011 |
|
or % Change |
|
2010 |
|
or % Change |
||
|
Balance Sheet Data |
(Dollars in thousands, except per share amounts) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
$ |
507,207 |
|
$ |
619,807 |
|
(18%) |
$ |
748,754 |
|
(32%) |
||
|
Inventories owned |
$ |
1,382,744 |
|
$ |
1,292,365 |
|
7% |
$ |
1,181,697 |
|
17% |
||
|
Lots owned and controlled |
|
26,403 |
|
|
25,505 |
|
4% |
|
23,549 |
|
12% |
||
|
Homes under construction |
|
1,000 |
|
|
801 |
|
25% |
|
568 |
|
76% |
||
|
Completed specs |
|
330 |
|
|
409 |
|
(19%) |
|
512 |
|
(36%) |
||
|
Deferred tax asset valuation allowance |
$ |
523,288 |
|
$ |
522,025 |
|
0% |
$ |
516,366 |
|
1% |
||
|
Homebuilding debt |
$ |
1,322,564 |
|
$ |
1,321,212 |
|
0% |
$ |
1,320,254 |
|
0% |
||
|
Joint venture recourse debt |
$ |
- |
|
$ |
995 |
|
(100%) |
$ |
3,865 |
|
(100%) |
||
|
Stockholders' equity |
$ |
607,269 |
|
$ |
613,252 |
|
(1%) |
$ |
621,862 |
|
(2%) |
||
|
Stockholders' equity per share (including if-converted |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
preferred stock)* |
$ |
1.78 |
|
$ |
1.80 |
|
(1%) |
$ |
1.83 |
|
(3%) |
|
|
Total debt to book capitalization* |
|
69.1% |
|
|
68.6% |
|
0.5% |
|
68.5% |
|
0.6% |
||
|
Adjusted net homebuilding debt to total adjusted |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
book capitalization* |
|
57.3% |
|
|
53.4% |
|
3.9% |
|
47.9% |
|
9.4% |
|
|
(1) All statistical numbers exclude unconsolidated joint ventures unless noted otherwise. *Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release. |
|||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
|
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|||||
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
|||||||||||
|
|
|
|
|
|
(Unaudited) |
|||||||||||
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Home sale revenues |
$ |
204,236 |
|
$ |
316,709 |
|
$ |
347,935 |
|
$ |
491,622 |
||||
|
|
Land sale revenues |
|
109 |
|
|
450 |
|
|
109 |
|
|
906 |
||||
|
|
|
Total revenues |
|
204,345 |
|
|
317,159 |
|
|
348,044 |
|
|
492,528 |
|||
|
|
Cost of home sales |
|
(169,433) |
|
|
(250,470) |
|
|
(283,745) |
|
|
(385,723) |
||||
|
|
Cost of land sales |
|
(114) |
|
|
(421) |
|
|
(114) |
|
|
(674) |
||||
|
|
|
Total cost of sales |
|
(169,547) |
|
|
(250,891) |
|
|
(283,859) |
|
|
(386,397) |
|||
|
|
|
|
|
Gross margin |
|
34,798 |
|
|
66,268 |
|
|
64,185 |
|
|
106,131 |
|
|
|
|
|
|
Gross margin % |
|
17.0% |
|
|
20.9% |
|
|
18.4% |
|
|
21.5% |
|
|
|
Selling, general and administrative expenses |
|
(38,443) |
|
|
(43,413) |
|
|
(70,704) |
|
|
(76,165) |
||||
|
|
Loss from unconsolidated joint ventures |
|
(379) |
|
|
(226) |
|
|
(636) |
|
|
(660) |
||||
|
|
Interest expense |
|
(7,444) |
|
|
(10,479) |
|
|
(17,959) |
|
|
(22,464) |
||||
|
|
Loss on early extinguishment of debt |
|
- |
|
|
(5,190) |
|
|
- |
|
|
(5,190) |
||||
|
|
Other income (expense) |
|
977 |
|
|
2,818 |
|
|
1,269 |
|
|
3,242 |
||||
|
|
|
|
|
Homebuilding pretax income (loss) |
|
(10,491) |
|
|
9,778 |
|
|
(23,845) |
|
|
4,894 |
|
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Revenues |
|
2,535 |
|
|
3,983 |
|
|
3,595 |
|
|
6,281 |
||||
|
|
Expenses |
|
(2,429) |
|
|
(2,876) |
|
|
(4,847) |
|
|
(5,305) |
||||
|
|
Other income |
|
41 |
|
|
48 |
|
|
56 |
|
|
81 |
||||
|
|
|
|
|
Financial services pretax income (loss) |
|
147 |
|
|
1,155 |
|
|
(1,196) |
|
|
1,057 |
|
|
Income (loss) before income taxes |
|
(10,344) |
|
|
10,933 |
|
|
(25,041) |
|
|
5,951 |
|||||
|
Provision for income taxes |
|
(175) |
|
|
(272) |
|
|
(275) |
|
|
(361) |
|||||
|
Net income (loss) |
|
(10,519) |
|
|
10,661 |
|
|
(25,316) |
|
|
5,590 |
|||||
|
Less: Net (income) loss allocated to preferred shareholder |
|
4,554 |
|
|
(6,288) |
|
|
10,968 |
|
|
(3,303) |
|||||
|
Net income (loss) available to common stockholders |
$ |
(5,965) |
|
$ |
4,373 |
|
$ |
(14,348) |
|
$ |
2,287 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Basic |
$ |
(0.03) |
|
$ |
0.04 |
|
$ |
(0.07) |
|
$ |
0.02 |
||||
|
|
Diluted |
$ |
(0.03) |
|
$ |
0.04 |
|
$ |
(0.07) |
|
$ |
0.02 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Basic |
|
193,577,324 |
|
|
102,796,195 |
|
|
193,369,182 |
|
|
102,318,953 |
||||
|
|
Diluted |
|
193,577,324 |
|
|
123,940,853 |
|
|
193,369,182 |
|
|
116,854,489 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
|
|
|
|
|
|
June 30, |
|
December 31, |
|||
|
|
|
|
|
|
2011 |
|
2010 |
|||
|
|
|
|
|
|
(Dollars in thousands) |
|||||
|
ASSETS |
(Unaudited) |
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
$ |
473,393 |
|
$ |
720,516 |
||||
|
|
Restricted cash |
|
33,814 |
|
|
28,238 |
||||
|
|
Trade and other receivables |
|
17,660 |
|
|
6,167 |
||||
|
|
Inventories: |
|
|
|
|
|
||||
|
|
|
Owned |
|
1,382,744 |
|
|
1,181,697 |
|||
|
|
|
Not owned |
|
61,586 |
|
|
18,999 |
|||
|
|
Investments in unconsolidated joint ventures |
|
82,164 |
|
|
73,861 |
||||
|
|
Deferred income taxes, net |
|
7,314 |
|
|
9,269 |
||||
|
|
Other assets |
|
40,264 |
|
|
38,175 |
||||
|
|
|
|
Total Homebuilding Assets |
|
2,098,939 |
|
|
2,076,922 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
|
10,282 |
|
|
10,855 |
||||
|
|
Restricted cash |
|
2,870 |
|
|
2,870 |
||||
|
|
Mortgage loans held for sale, net |
|
35,105 |
|
|
30,279 |
||||
|
|
Mortgage loans held for investment, net |
|
9,678 |
|
|
9,904 |
||||
|
|
Other assets |
|
1,772 |
|
|
2,293 |
||||
|
|
|
|
Total Financial Services Assets |
|
59,707 |
|
|
56,201 |
||
|
|
|
|
|
Total Assets |
$ |
2,158,646 |
|
$ |
2,133,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Accounts payable |
$ |
16,578 |
|
$ |
16,716 |
||||
|
|
Accrued liabilities |
|
176,185 |
|
|
143,127 |
||||
|
|
Secured project debt and other notes payable |
|
4,215 |
|
|
4,738 |
||||
|
|
Senior notes payable |
|
1,274,001 |
|
|
1,272,977 |
||||
|
|
Senior subordinated notes payable |
|
44,348 |
|
|
42,539 |
||||
|
|
|
|
Total Homebuilding Liabilities |
|
1,515,327 |
|
|
1,480,097 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Accounts payable and other liabilities |
|
1,177 |
|
|
820 |
||||
|
|
Mortgage credit facilities |
|
34,873 |
|
|
30,344 |
||||
|
|
|
|
Total Financial Services Liabilities |
|
36,050 |
|
|
31,164 |
||
|
|
|
|
|
Total Liabilities |
|
1,551,377 |
|
|
1,511,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|||||
|
|
Stockholders' Equity: |
|
|
|
|
|
||||
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares |
|
|
|
|
|
|||
|
|
|
|
issued and outstanding at June 30, 2011 and December 31, 2010 |
|
5 |
|
|
5 |
||
|
|
|
Common stock, $0.01 par value; 600,000,000 shares authorized; 197,779,108 |
|
|
|
|
|
|||
|
|
|
|
and 196,641,551 shares issued and outstanding at June 30, 2011 |
|
|
|
|
|
||
|
|
|
|
and December 31, 2010, respectively |
|
1,978 |
|
|
1,966 |
||
|
|
|
Additional paid-in capital |
|
1,234,828 |
|
|
1,227,292 |
|||
|
|
|
Accumulated deficit |
|
(617,668) |
|
|
(592,352) |
|||
|
|
|
Accumulated other comprehensive loss, net of tax |
|
(11,874) |
|
|
(15,049) |
|||
|
|
|
|
Total Equity |
|
607,269 |
|
|
621,862 |
||
|
|
|
|
|
Total Liabilities and Equity |
$ |
2,158,646 |
|
$ |
2,133,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVENTORIES |
||||
|
|
June 30, |
|
December 31, |
|
|
|
2011 |
|
2010 |
|
|
|
(Dollars in thousands) |
|||
|
Inventories Owned: |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Land and land under development |
$ 928,645 |
|
$ 801,681 |
|
|
Homes completed and under construction |
347,310 |
|
281,780 |
|
|
Model homes |
106,789 |
|
98,236 |
|
|
Total inventories owned |
$ 1,382,744 |
|
$ 1,181,697 |
|
|
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
|
|
California |
$ 854,931 |
|
$ 727,317 |
|
|
Southwest |
266,996 |
|
222,791 |
|
|
Southeast |
260,817 |
|
231,589 |
|
|
Total inventories owned |
$ 1,382,744 |
|
$ 1,181,697 |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
|
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|||||
|
|
|
|
|
|
(Dollars in thousands) |
|||||||||||
|
|
|
|
|
|
(Unaudited) |
|||||||||||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net income (loss) |
$ |
(10,519) |
|
$ |
10,661 |
|
$ |
(25,316) |
|
$ |
5,590 |
||||
|
|
Adjustments to reconcile net income (loss) to net cash |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Loss on early extinguishment of debt |
|
- |
|
|
5,190 |
|
|
- |
|
|
5,190 |
||
|
|
|
|
Amortization of stock-based compensation |
|
3,537 |
|
|
3,519 |
|
|
5,459 |
|
|
5,483 |
||
|
|
|
|
Inventory impairment charges |
|
5,959 |
|
|
- |
|
|
5,959 |
|
|
- |
||
|
|
|
|
Other operating activities |
|
1,273 |
|
|
918 |
|
|
2,558 |
|
|
1,997 |
||
|
|
|
|
Changes in cash and equivalents due to: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Trade and other receivables |
|
(10,330) |
|
|
6,518 |
|
|
(11,493) |
|
|
(1,562) |
|
|
|
|
|
|
Mortgage loans held for sale |
|
(15,064) |
|
|
(34,319) |
|
|
(4,770) |
|
|
(25,775) |
|
|
|
|
|
|
Inventories - owned |
|
(88,912) |
|
|
3,715 |
|
|
(194,058) |
|
|
(37,111) |
|
|
|
|
|
|
Inventories - not owned |
|
(9,990) |
|
|
(6,488) |
|
|
(12,800) |
|
|
(17,550) |
|
|
|
|
|
|
Other assets |
|
(1,112) |
|
|
1,030 |
|
|
2,028 |
|
|
109,442 |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
3,195 |
|
|
14,605 |
|
|
320 |
|
|
(6,785) |
|
|
|
|
Net cash provided by (used in) operating activities |
|
(121,963) |
|
|
5,349 |
|
|
(232,113) |
|
|
38,919 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Investments in unconsolidated homebuilding joint ventures |
|
(5,451) |
|
|
(1,437) |
|
|
(8,820) |
|
|
(2,282) |
||||
|
|
Other investing activities |
|
(24) |
|
|
(14) |
|
|
(704) |
|
|
(177) |
||||
|
|
|
Net cash provided by (used in) investing activities |
|
(5,475) |
|
|
(1,451) |
|
|
(9,524) |
|
|
(2,459) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Change in restricted cash |
|
(1,401) |
|
|
(564) |
|
|
(5,576) |
|
|
378 |
||||
|
|
Principal payments on secured project debt and other notes payable |
|
(118) |
|
|
(24,489) |
|
|
(523) |
|
|
(59,247) |
||||
|
|
Principal payments on senior notes payable |
|
- |
|
|
(189,959) |
|
|
- |
|
|
(189,959) |
||||
|
|
Proceeds from the issuance of senior notes payable |
|
- |
|
|
300,000 |
|
|
- |
|
|
300,000 |
||||
|
|
Net proceeds from (payments on) mortgage credit facilities |
|
14,178 |
|
|
32,692 |
|
|
4,529 |
|
|
24,131 |
||||
|
|
Other financing activities |
|
279 |
|
|
(3,652) |
|
|
(4,489) |
|
|
(3,138) |
||||
|
|
|
Net cash provided by (used in) financing activities |
|
12,938 |
|
|
114,028 |
|
|
(6,059) |
|
|
72,165 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
(114,500) |
|
|
117,926 |
|
|
(247,696) |
|
|
108,625 |
|||||
|
Cash and equivalents at beginning of period |
|
598,175 |
|
|
586,258 |
|
|
731,371 |
|
|
595,559 |
|||||
|
Cash and equivalents at end of period |
$ |
483,675 |
|
$ |
704,184 |
|
$ |
483,675 |
|
$ |
704,184 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
$ |
483,675 |
|
$ |
704,184 |
|
$ |
483,675 |
|
$ |
704,184 |
|||||
|
Homebuilding restricted cash at end of period |
|
33,814 |
|
|
13,792 |
|
|
33,814 |
|
|
13,792 |
|||||
|
Financial services restricted cash at end of period |
|
2,870 |
|
|
4,095 |
|
|
2,870 |
|
|
4,095 |
|||||
|
Cash and equivalents and restricted cash at end of period |
$ |
520,359 |
|
$ |
722,071 |
|
$ |
520,359 |
|
$ |
722,071 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGIONAL OPERATING DATA |
|||||||||||||||
|
|
|||||||||||||||
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|
2011 |
|
2010 |
|
% Change |
|
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
California |
231 |
|
374 |
|
(38%) |
|
401 |
|
592 |
|
(32%) |
|||
|
|
Arizona |
43 |
|
62 |
|
(31%) |
|
78 |
|
109 |
|
(28%) |
|||
|
|
Texas |
96 |
|
101 |
|
(5%) |
|
172 |
|
191 |
|
(10%) |
|||
|
|
Colorado |
27 |
|
40 |
|
(33%) |
|
44 |
|
65 |
|
(32%) |
|||
|
|
Nevada |
5 |
|
9 |
|
(44%) |
|
10 |
|
9 |
|
11% |
|||
|
|
Florida |
111 |
|
158 |
|
(30%) |
|
173 |
|
244 |
|
(29%) |
|||
|
|
Carolinas |
97 |
|
147 |
|
(34%) |
|
171 |
|
218 |
|
(22%) |
|||
|
|
|
|
Consolidated total |
610 |
|
891 |
|
(32%) |
|
1,049 |
|
1,428 |
|
(27%) |
|
|
|
Unconsolidated joint ventures |
6 |
|
15 |
|
(60%) |
|
14 |
|
28 |
|
(50%) |
|||
|
|
|
|
Total (including joint ventures) |
616 |
|
906 |
|
(32%) |
|
1,063 |
|
1,456 |
|
(27%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|
2011 |
|
2010 |
|
% Change |
|||||
|
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||
|
Average selling prices of homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
California |
|
$ |
492 |
|
$ |
526 |
|
(6%) |
|
$ |
480 |
|
$ |
499 |
|
(4%) |
|||
|
|
Arizona |
|
|
211 |
|
|
200 |
|
6% |
|
|
209 |
|
|
199 |
|
5% |
|||
|
|
Texas |
|
|
299 |
|
|
293 |
|
2% |
|
|
297 |
|
|
296 |
|
0% |
|||
|
|
Colorado |
|
|
307 |
|
|
290 |
|
6% |
|
|
309 |
|
|
293 |
|
5% |
|||
|
|
Nevada |
|
|
198 |
|
|
195 |
|
2% |
|
|
195 |
|
|
195 |
|
- |
|||
|
|
Florida |
|
|
195 |
|
|
192 |
|
2% |
|
|
198 |
|
|
191 |
|
4% |
|||
|
|
Carolinas |
|
|
225 |
|
|
233 |
|
(3%) |
|
|
223 |
|
|
231 |
|
(3%) |
|||
|
|
|
Consolidated |
|
|
335 |
|
|
355 |
|
(6%) |
|
|
332 |
|
|
344 |
|
(3%) |
||
|
|
Unconsolidated joint ventures |
|
|
549 |
|
|
453 |
|
21% |
|
|
459 |
|
|
471 |
|
(3%) |
|||
|
|
|
|
Total (including joint ventures) |
|
$ |
337 |
|
$ |
357 |
|
(6%) |
|
$ |
333 |
|
$ |
347 |
|
(4%) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|
2011 |
|
2010 |
|
% Change |
|
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
California |
|
313 |
|
311 |
|
1% |
|
545 |
|
601 |
|
(9%) |
|||
|
|
Arizona |
|
33 |
|
46 |
|
(28%) |
|
79 |
|
106 |
|
(25%) |
|||
|
|
Texas |
|
139 |
|
95 |
|
46% |
|
259 |
|
201 |
|
29% |
|||
|
|
Colorado |
|
25 |
|
22 |
|
14% |
|
51 |
|
51 |
|
- |
|||
|
|
Nevada |
|
2 |
|
12 |
|
(83%) |
|
3 |
|
15 |
|
(80%) |
|||
|
|
Florida |
|
142 |
|
117 |
|
21% |
|
257 |
|
258 |
|
(0%) |
|||
|
|
Carolinas |
|
110 |
|
116 |
|
(5%) |
|
222 |
|
246 |
|
(10%) |
|||
|
|
|
Consolidated total |
|
764 |
|
719 |
|
6% |
|
1,416 |
|
1,478 |
|
(4%) |
||
|
|
Unconsolidated joint ventures |
|
8 |
|
13 |
|
(38%) |
|
16 |
|
28 |
|
(43%) |
|||
|
|
|
Total (including joint ventures) |
|
772 |
|
732 |
|
5% |
|
1,432 |
|
1,506 |
|
(5%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|
2011 |
|
2010 |
|
% Change |
|
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
53 |
|
47 |
|
13% |
|
49 |
|
46 |
|
7% |
||
|
|
Arizona |
|
8 |
|
9 |
|
(11%) |
|
9 |
|
8 |
|
13% |
||
|
|
Texas |
|
21 |
|
16 |
|
31% |
|
21 |
|
17 |
|
24% |
||
|
|
Colorado |
|
5 |
|
4 |
|
25% |
|
5 |
|
5 |
|
- |
||
|
|
Nevada |
|
1 |
|
1 |
|
- |
|
1 |
|
1 |
|
- |
||
|
|
Florida |
|
35 |
|
25 |
|
40% |
|
34 |
|
24 |
|
42% |
||
|
|
Carolinas |
|
30 |
|
25 |
|
20% |
|
27 |
|
25 |
|
8% |
||
|
|
|
Consolidated total |
|
153 |
|
127 |
|
20% |
|
146 |
|
126 |
|
16% |
|
|
|
Unconsolidated joint ventures |
|
3 |
|
3 |
|
- |
|
3 |
|
3 |
|
- |
||
|
|
|
Total (including joint ventures) |
|
156 |
|
130 |
|
20% |
|
149 |
|
129 |
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, |
|||||||||||||||||
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|||||||||||||
|
|
|
|
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
263 |
|
$ |
157,217 |
|
|
256 |
|
$ |
137,493 |
|
|
3% |
|
|
14% |
||
|
|
Arizona |
|
|
37 |
|
|
7,710 |
|
|
44 |
|
|
9,787 |
|
|
(16%) |
|
|
(21%) |
||
|
|
Texas |
|
|
186 |
|
|
54,024 |
|
|
119 |
|
|
36,638 |
|
|
56% |
|
|
47% |
||
|
|
Colorado |
|
|
37 |
|
|
12,117 |
|
|
40 |
|
|
11,582 |
|
|
(8%) |
|
|
5% |
||
|
|
Nevada |
|
|
1 |
|
|
203 |
|
|
6 |
|
|
1,228 |
|
|
(83%) |
|
|
(83%) |
||
|
|
Florida |
|
|
151 |
|
|
35,025 |
|
|
92 |
|
|
18,448 |
|
|
64% |
|
|
90% |
||
|
|
Carolinas |
|
|
106 |
|
|
27,508 |
|
|
92 |
|
|
22,532 |
|
|
15% |
|
|
22% |
||
|
|
|
Consolidated total |
|
|
781 |
|
|
293,804 |
|
|
649 |
|
|
237,708 |
|
|
20% |
|
|
24% |
|
|
|
Unconsolidated joint ventures |
|
|
7 |
|
|
2,558 |
|
|
9 |
|
|
3,920 |
|
|
(22%) |
|
|
(35%) |
||
|
|
|
Total (including joint ventures) |
|
|
788 |
|
$ |
296,362 |
|
|
658 |
|
$ |
241,628 |
|
|
20% |
|
|
23% |
|
|
|
|
|
|
At June 30, |
|||||
|
|
|
|
|
2011 |
|
2010 |
|
% Change |
|
|
Lots owned and controlled: |
|
|
|
|
|
|
|||
|
|
California |
|
9,533 |
|
9,013 |
|
6% |
||
|
|
Arizona |
|
1,883 |
|
2,027 |
|
(7%) |
||
|
|
Texas |
|
4,259 |
|
2,427 |
|
75% |
||
|
|
Colorado |
|
741 |
|
231 |
|
221% |
||
|
|
Nevada |
|
1,138 |
|
1,209 |
|
(6%) |
||
|
|
Florida |
|
5,864 |
|
4,777 |
|
23% |
||
|
|
Carolinas |
|
2,985 |
|
2,169 |
|
38% |
||
|
|
|
Total (including joint ventures) |
|
26,403 |
|
21,853 |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lots owned |
|
19,121 |
|
16,944 |
|
13% |
||
|
|
Lots optioned or subject to contract |
|
5,848 |
|
3,934 |
|
49% |
||
|
|
Joint venture lots |
|
1,434 |
|
975 |
|
47% |
||
|
|
|
Total (including joint ventures) |
|
26,403 |
|
21,853 |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lots owned: |
|
|
|
|
|
|
|||
|
|
Raw lots |
|
5,057 |
|
5,379 |
|
(6%) |
||
|
|
Lots under development |
|
4,969 |
|
2,874 |
|
73% |
||
|
|
Finished lots |
|
7,294 |
|
6,957 |
|
5% |
||
|
|
Under construction or completed homes |
|
1,801 |
|
1,734 |
|
4% |
||
|
|
|
Total |
|
19,121 |
|
16,944 |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Each of the below measures are non-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 loss to net loss excluding inventory impairment charges (net of a 39% income tax benefit), severance and other charges (net of a 39% income tax benefit), and the deferred tax asset valuation allowance related to these charges. We believe this measure is useful to management and investors as it provides perspective on the underlying operating performance of the business excluding these charges and provides comparability with the Company's peer group. Net loss excluding inventory impairment charges (net of income tax benefit), severance and other charges (net of income tax benefit), and the deferred tax asset valuation allowance related to these charges for the three months ended June 30, 2011 is calculated as follows:
|
|
Three Months Ended |
||
|
|
June 30, 2011 |
||
|
|
(Dollars in thousands) |
||
|
|
|
|
|
|
Net loss |
$ |
(10,519) |
|
|
Add: Inventory impairment charges, net of income tax benefit |
|
3,635 |
|
|
Add: Severance and other charges, net of income tax benefit |
|
1,329 |
|
|
Add: Net deferred tax asset valuation allowance |
|
3,173 |
|
|
Net loss, as adjusted |
$ |
(2,382) |
|
|
|
|
|
|
The table set forth below reconciles the Company's gross margin percentage from home sales 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 |
||||||||||||||
|
|
June 30,
|
|
Gross
|
|
June 30,
|
|
Gross
|
|
March 31,
|
|
Gross
|
||||
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sale revenues |
$ |
204,236 |
|
|
|
$ |
316,709 |
|
|
|
$ |
143,699 |
|
|
|
|
Less: Cost of home sales |
|
(169,433) |
|
|
|
|
(250,470) |
|
|
|
|
(114,312) |
|
|
|
|
Gross margin from home sales |
|
34,803 |
|
17.0% |
|
|
66,239 |
|
20.9% |
|
|
29,387 |
|
20.5% |
|
|
Add: Housing inventory impairment charges |
|
5,959 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
Gross margin from home sales, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges |
|
40,762 |
|
20.0% |
|
|
66,239 |
|
20.9% |
|
|
29,387 |
|
20.5% |
|
|
Add: Capitalized interest included in cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of home sales |
|
16,108 |
|
7.9% |
|
|
20,943 |
|
6.6% |
|
|
10,980 |
|
7.6% |
|
|
Gross margin from home sales, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges and interest amortized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to cost of home sales |
$ |
56,870 |
|
27.9% |
|
$ |
87,182 |
|
27.5% |
|
$ |
40,367 |
|
28.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Company's SG&A expenses to SG&A expenses excluding severance and other charges related to management changes. We believe this measure is useful to management and investors as it provides perspective on the underlying operating performance of the business excluding these charges.
|
|
Three Months Ended |
||||||||
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
||||
|
|
(Dollars in thousands) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
$ |
38,443 |
|
$ |
43,413 |
|
$ |
32,261 |
|
|
Less: Severance and other charges |
|
(2,178) |
|
|
- |
|
|
(561) |
|
|
Selling, general and administrative expenses, excluding severance and other charges |
$ |
36,265 |
|
$ |
43,413 |
|
$ |
31,700 |
|
|
SG&A % from home sales, excluding severance and other charges |
|
17.8% |
|
|
13.7% |
|
|
22.1% |
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Company's cash flows from operations to cash flows from operations excluding land purchases and development costs. 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 development costs.
|
|
Three Months Ended |
||||||||
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
||||
|
|
(Dollars in thousands) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) operations |
$ |
(121,963) |
|
$ |
5,349 |
|
$ |
(110,150) |
|
|
Add: Cash land purchases |
|
92,171 |
|
|
79,364 |
|
|
87,055 |
|
|
Add: Land development costs |
|
31,642 |
|
|
14,332 |
|
|
33,456 |
|
|
Cash flows from operations (excluding land purchases and development costs) |
$ |
1,850 |
|
$ |
99,045 |
|
$ |
10,361 |
|
|
|
|
|
|
|
|
|
|
|
|
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 and deposit write-offs, (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 June 30, |
||||||||||||
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
2011 |
|
2010 |
||||||
|
|
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(10,519) |
|
$ |
10,661 |
|
$ |
(14,797) |
|
$ |
(42,630) |
|
$ |
64,409 |
|||
|
|
Provision (benefit) for income taxes |
|
175 |
|
|
272 |
|
|
100 |
|
|
(643) |
|
|
(96,202) |
||
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
23,590 |
|
|
31,804 |
|
|
21,495 |
|
|
90,239 |
|
|
130,570 |
||
|
|
Homebuilding depreciation and amortization |
|
663 |
|
|
539 |
|
|
663 |
|
|
2,304 |
|
|
2,394 |
||
|
|
Amortization of stock-based compensation |
|
3,537 |
|
|
3,519 |
|
|
1,922 |
|
|
11,824 |
|
|
12,739 |
||
|
EBITDA |
|
17,446 |
|
|
46,795 |
|
|
9,383 |
|
|
61,094 |
|
|
113,910 |
|||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Cash distributions of income from unconsolidated joint ventures |
|
- |
|
|
- |
|
|
20 |
|
|
20 |
|
|
3,139 |
||
|
|
Impairment charges and deposit write-offs |
|
5,959 |
|
|
- |
|
|
- |
|
|
7,877 |
|
|
19,006 |
||
|
|
(Gain) loss on early extinguishment of debt |
|
- |
|
|
5,190 |
|
|
- |
|
|
24,838 |
|
|
17,488 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Income (loss) from unconsolidated joint ventures |
|
(379) |
|
|
(226) |
|
|
(257) |
|
|
1,190 |
|
|
(2,887) |
||
|
|
Income (loss) from financial services subsidiary |
|
106 |
|
|
1,107 |
|
|
(1,358) |
|
|
(650) |
|
|
2,227 |
||
|
Adjusted Homebuilding EBITDA |
$ |
23,678 |
|
$ |
51,104 |
|
$ |
11,018 |
|
$ |
93,289 |
|
$ |
154,203 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
204,345 |
|
$ |
317,159 |
|
$ |
143,699 |
|
$ |
767,934 |
|
$ |
1,159,718 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
11.6% |
|
|
16.1% |
|
|
7.7% |
|
|
12.1% |
|
|
13.3% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
|
|
|
|
|
Three Months Ended |
|
LTM Ended June 30, |
||||||||||||
|
|
|
|
|
June 30,
|
|
June 30,
|
|
March 31,
|
|
2011 |
|
2010 |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
(121,963) |
|
$ |
5,349 |
|
$ |
(110,150) |
|
$ |
(351,990) |
|
$ |
261,156 |
|||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Provision (benefit) for income taxes |
|
|
175 |
|
|
272 |
|
|
100 |
|
|
(643) |
|
|
(96,202) |
||
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
|
23,590 |
|
|
31,804 |
|
|
21,495 |
|
|
90,239 |
|
|
130,570 |
||
|
|
Excess tax benefits from share-based payment arrangements |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
324 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Income (loss) from financial services subsidiary |
|
|
106 |
|
|
1,107 |
|
|
(1,358) |
|
|
(650) |
|
|
2,227 |
||
|
|
Depreciation and amortization from financial services subsidiary |
|
|
233 |
|
|
153 |
|
|
343 |
|
|
1,200 |
|
|
642 |
||
|
|
(Gain) loss on disposal of property and equipment |
|
|
(2) |
|
|
- |
|
|
2 |
|
|
(1) |
|
|
1,237 |
||
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Trade and other receivables |
|
|
10,330 |
|
|
(6,518) |
|
|
1,163 |
|
|
3,390 |
|
|
(5,605) |
|
|
|
|
Mortgage loans held for sale |
|
|
15,064 |
|
|
34,319 |
|
|
(10,294) |
|
|
(33,170) |
|
|
8,002 |
|
|
|
|
Inventories-owned |
|
|
88,912 |
|
|
(3,715) |
|
|
105,146 |
|
|
305,653 |
|
|
(151,395) |
|
|
|
|
Inventories-not owned |
|
|
9,990 |
|
|
6,488 |
|
|
2,810 |
|
|
23,111 |
|
|
19,217 |
|
|
|
|
Deferred income taxes, net of valuation allowance |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
96,562 |
|
|
|
|
Other assets |
|
|
1,112 |
|
|
(1,030) |
|
|
(3,140) |
|
|
(4,082) |
|
|
(109,032) |
|
|
|
|
Accounts payable and accrued liabilities |
|
|
(3,195) |
|
|
(14,605) |
|
|
2,875 |
|
|
61,330 |
|
|
4,712 |
|
|
Adjusted Homebuilding EBITDA |
|
$ |
23,678 |
|
$ |
51,104 |
|
$ |
11,018 |
|
$ |
93,289 |
|
$ |
154,203 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
|||||
|
|
|
(Dollars in thousands) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated debt |
$ |
1,357,437 |
|
$ |
1,341,907 |
|
$ |
1,350,598 |
|
$ |
1,304,749 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Financial services indebtedness |
|
(34,873) |
|
|
(20,695) |
|
|
(30,344) |
|
|
(65,126) |
|
|
|
Homebuilding cash |
|
(507,207) |
|
|
(619,807) |
|
|
(748,754) |
|
|
(710,385) |
|
|
Adjusted net homebuilding debt |
|
815,357 |
|
|
701,405 |
|
|
571,500 |
|
|
529,238 |
||
|
Stockholders' equity |
|
607,269 |
|
|
613,252 |
|
|
621,862 |
|
|
447,710 |
||
|
Total adjusted book capitalization |
$ |
1,422,626 |
|
$ |
1,314,657 |
|
$ |
1,193,362 |
|
$ |
976,948 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to book capitalization |
|
69.1% |
|
|
68.6% |
|
|
68.5% |
|
|
74.5% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net homebuilding debt to total adjusted book capitalization ratio |
|
57.3% |
|
|
53.4% |
|
|
47.9% |
|
|
54.2% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, and excludes 3.9 million shares issued under a share lending agreement related to the Company's 6% Convertible Senior Subordinated Notes. 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.
|
|
June 30, |
|
March 31, |
|
December 31, |
||||
|
|
2011 |
|
2011 |
|
|
2010 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Actual common shares outstanding |
|
197,779,108 |
|
|
197,422,268 |
|
|
196,641,551 |
|
|
Add: Conversion of preferred shares to common shares |
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma common shares outstanding |
|
341,671,990 |
|
|
341,315,150 |
|
|
340,534,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (actual amounts rounded to nearest thousand) |
$ |
607,269,000 |
|
$ |
613,252,000 |
|
$ |
621,862,000 |
|
|
Divided by pro forma common shares outstanding |
÷ |
341,671,990 |
|
÷ |
341,315,150 |
|
÷ |
340,534,433 |
|
|
Pro forma stockholders' equity per common share |
$ |
1.78 |
|
$ |
1.80 |
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Standard Pacific Corp.