IRVINE, Calif., Oct. 30, 2014 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the third quarter ended September 30, 2014.
2014 Third Quarter Highlights and Comparisons to the 2013 Third Quarter
Scott Stowell, the Company's President and Chief Executive Officer commented, "The solid performance we achieved during the first half of 2014 continued into the third quarter, with pretax income, home sale revenues and backlog value up 31%, 18% and 17%, respectively, over the prior year period." Mr. Stowell added, "In addition, I am pleased with the growth in our operating margin from home sales, which was 14.7% for the 2014 third quarter, compared to 13.2% for the prior year period."
Revenue. Revenues from home sales for the 2014 third quarter increased 18%, to $603.8 million, as compared to the prior year period, resulting primarily from a 15% increase in the Company's average home price to $483 thousand, the highest quarterly average home price in the Company's nearly 50 year history, and a 3% increase in new home deliveries. The increase in average home price was primarily attributable to a shift to more move-up product and general price increases within a majority of the Company's markets. The increase in new home deliveries compared to the prior year period was driven primarily by the increase in deliveries from the Company's Southwest region where the Company's average active selling communities grew 31%, and an 81% increase in speculative homes sold and closed during the quarter.
Orders. Net new orders for the 2014 third quarter were up slightly from the 2013 third quarter, to 1,154 homes, with the dollar value of these orders up 11%. The Company's monthly sales absorption rate was 2.1 per community for the 2014 third quarter, relatively flat compared to 2.2 per community for the 2013 third quarter and 2.8 per community for the 2014 second quarter (or 2.6 per community for the 2014 second quarter excluding the backlog the Company acquired in connection with the acquisition of an Austin, Texas homebuilder in June 2014). The decrease in sales absorption rate from the 2014 second quarter to the 2014 third quarter (excluding the impact of the second quarter acquisition) was consistent with the seasonality we typically experience in our business. The Company's cancellation rate for the 2014 third quarter was 19%, compared to 20% for the 2013 third quarter and 14% for the 2014 second quarter. Our 2014 third quarter cancellation rate remains below our average historical cancellation rate of approximately 21% over the last 10 years.
Backlog. The dollar value of homes in backlog increased 17% to $1.1 billion, or 2,208 homes, compared to $964.1 million, or 2,165 homes, for the 2013 third quarter, and decreased 1% compared to $1.1 billion, or 2,304 homes, for the 2014 second quarter. The increase in year-over-year backlog value was driven primarily by a 15% increase in the average selling price of the homes in backlog, reflecting the continued execution of our move-up homebuyer focused strategy and a favorable pricing environment in select markets.
Land. During the 2014 third quarter, the Company spent $251.2 million on land purchases and development costs, compared to $156.3 million for the 2013 third quarter. The Company purchased $155.7 million of land, consisting of 1,377 homesites, of which 37% (based on homesites) is located in California, 35% in Florida, 13% in the Carolinas, 8% in Colorado and 7% in Texas. As of September 30, 2014, the Company owned or controlled 36,307 homesites, of which 23,997 were owned and actively selling or under development, 7,370 were controlled or under option, and the remaining 4,940 homesites were held for future development or for sale. The homesites owned that are actively selling or under development represent a 5.0 year supply based on the Company's deliveries for the trailing twelve months ended September 30, 2014.
Liquidity. The Company ended the quarter with $465 million of available liquidity, including $15 million of unrestricted homebuilding cash and a $450 million untapped revolving credit facility. The revolving credit facility has an accordion feature under which the aggregate commitment may be increased to a maximum amount of $750 million, subject to the Company's future needs and the availability of additional bank capacity. The Company's homebuilding debt to book capitalization as of September 30, 2014 and 2013 was 52.9% and 56.8%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 52.2%* and 51.1%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending September 30, 2014 and 2013 was 3.9x* and 5.8x*, respectively.
Earnings Conference Call
A conference call to discuss the Company's 2014 third quarter results will be held at 12:00 p.m. Eastern time October 31, 2014. 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) 312-3055 (domestic) or (719) 325-2165 (international); Passcode: 3386276. 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: 3386276.
About Standard Pacific
Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers. Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.
This news release contains forward-looking statements. These statements include but are not limited to statements regarding the strength of our land position and product portfolio; construction quality and customer experience; new home orders ; deliveries ; backlog ; absorption rates; cancellation rates; average home price ; favorable pricing environment; revenue ; profitability ; cash flow ; liquidity ; gross margin ; operating margin; product mix; land supply; the benefit of, and execut ion on, our strategy; our future cash needs and the availability of additional bank commitments; and our future performance . 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, 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, 201 3 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)
|
KEY STATISTICS AND FINANCIAL DATA1 |
||||||||||||||
|
|
|
|
|
|||||||||||
|
|
|
|
As of or For the Three Months Ended |
|||||||||||
|
|
|
|
September 30, |
|
September 30, |
|
Percentage |
|
June 30, |
|
Percentage |
|||
|
|
|
|
2014 |
|
2013 |
|
or % Change |
|
2014 |
|
or % Change |
|||
|
Operating Data |
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
1,250 |
|
|
1,217 |
|
3% |
|
|
1,236 |
|
1% |
||
|
Average selling price |
$ |
483 |
|
$ |
420 |
|
15% |
|
$ |
479 |
|
1% |
||
|
Home sale revenues |
$ |
603,788 |
|
$ |
511,059 |
|
18% |
|
$ |
591,706 |
|
2% |
||
|
Gross margin % (including land sales) |
|
26.3% |
|
|
25.3% |
|
1.0% |
|
|
26.7% |
|
(0.4%) |
||
|
Gross margin % from home sales |
|
26.3% |
|
|
25.3% |
|
1.0% |
|
|
26.6% |
|
(0.3%) |
||
|
Adjusted gross margin % from home sales (excluding interest amortized to cost of home sales)* |
|
31.1% |
|
|
31.2% |
|
(0.1%) |
|
|
31.7% |
|
(0.6%) |
||
|
Incentive and stock-based compensation expense |
$ |
7,527 |
|
$ |
8,023 |
|
(6%) |
|
$ |
6,724 |
|
12% |
||
|
Selling expenses |
$ |
29,424 |
|
$ |
24,301 |
|
21% |
|
$ |
28,782 |
|
2% |
||
|
G&A expenses (excluding incentive and stock-based compensation expenses) |
$ |
33,213 |
|
$ |
29,615 |
|
12% |
|
$ |
32,329 |
|
3% |
||
|
SG&A expenses |
$ |
70,164 |
|
$ |
61,939 |
|
13% |
|
$ |
67,835 |
|
3% |
||
|
SG&A % from home sales |
|
11.6% |
|
|
12.1% |
|
(0.5%) |
|
|
11.5% |
|
0.1% |
||
|
Operating margin from home sales |
$ |
88,726 |
|
$ |
67,426 |
|
32% |
|
$ |
89,675 |
|
(1%) |
||
|
Operating margin % from home sales |
|
14.7% |
|
|
13.2% |
|
1.5% |
|
|
15.2% |
|
(0.5%) |
||
|
Net new orders (homes) |
|
1,154 |
|
|
1,110 |
|
4% |
|
|
1,524 |
|
(24%) |
||
|
Net new orders (dollar value) |
$ |
568,977 |
|
$ |
510,668 |
|
11% |
|
$ |
713,347 |
|
(20%) |
||
|
Average active selling communities |
|
185 |
|
|
168 |
|
10% |
|
|
183 |
|
1% |
||
|
Monthly sales absorption rate per community |
|
2.1 |
|
|
2.2 |
|
(6%) |
|
|
2.8 |
|
(25%) |
||
|
Cancellation rate |
|
19% |
|
|
20% |
|
(1%) |
|
|
14% |
|
36% |
||
|
Gross cancellations |
|
278 |
|
|
272 |
|
2% |
|
|
247 |
|
13% |
||
|
Cancellations from current quarter sales |
|
107 |
|
|
124 |
|
(14%) |
|
|
93 |
|
15% |
||
|
Backlog (homes) |
|
2,208 |
|
|
2,165 |
|
2% |
|
|
2,304 |
|
(4%) |
||
|
Backlog (dollar value) |
$ |
1,126,125 |
|
$ |
964,148 |
|
17% |
|
$ |
1,138,886 |
|
(1%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows (uses) from operating activities |
$ |
(115,034) |
|
$ |
22,808 |
|
|
|
$ |
(25,949) |
|
(343%) |
||
|
Cash flows (uses) from investing activities |
$ |
434 |
|
$ |
(2,296) |
|
|
|
$ |
(36,050) |
|
|
||
|
Cash flows (uses) from financing activities |
$ |
(7,271) |
|
$ |
261,980 |
|
|
|
$ |
4,426 |
|
|
||
|
Land purchases (incl. seller financing) |
$ |
155,670 |
|
$ |
69,196 |
|
125% |
|
$ |
113,001 |
|
38% |
||
|
Adjusted Homebuilding EBITDA* |
$ |
121,737 |
|
$ |
101,953 |
|
19% |
|
$ |
125,730 |
|
(3%) |
||
|
Adjusted Homebuilding EBITDA Margin %* |
|
20.1% |
|
|
19.9% |
|
0.2% |
|
|
21.2% |
|
(1.1%) |
||
|
Homebuilding interest incurred |
$ |
37,308 |
|
$ |
34,766 |
|
7% |
|
$ |
37,641 |
|
(1%) |
||
|
Homebuilding interest capitalized to inventories owned |
$ |
36,927 |
|
$ |
34,118 |
|
8% |
|
$ |
37,228 |
|
(1%) |
||
|
Homebuilding interest capitalized to investments in JVs |
$ |
381 |
|
$ |
648 |
|
(41%) |
|
$ |
413 |
|
(8%) |
||
|
Interest amortized to cost of sales (incl. cost of land sales) |
$ |
28,959 |
|
$ |
30,322 |
|
(4%) |
|
$ |
29,816 |
|
(3%) |
||
|
|
|
|
As of |
||||||
|
|
|
|
September 30, |
|
December 31, |
|
Percentage |
||
|
|
|
|
2014 |
|
2013 |
|
or % Change |
||
|
Balance Sheet Data |
(Dollars in thousands, except per share amounts) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
$ |
52,322 |
|
$ |
376,949 |
|
(86%) |
||
|
Inventories owned |
$ |
3,145,369 |
|
$ |
2,536,102 |
|
24% |
||
|
Homesites owned and controlled |
|
36,307 |
|
|
35,175 |
|
3% |
||
|
Homes under construction |
|
2,550 |
|
|
2,001 |
|
27% |
||
|
Completed specs |
|
406 |
|
|
327 |
|
24% |
||
|
Deferred tax asset valuation allowance |
$ |
4,591 |
|
$ |
4,591 |
|
― |
||
|
Homebuilding debt |
$ |
1,835,314 |
|
$ |
1,839,595 |
|
(0%) |
||
|
Stockholders' equity |
$ |
1,634,664 |
|
$ |
1,468,960 |
|
11% |
||
|
Adjusted stockholders' equity per share (including if-converted preferred stock)* |
$ |
4.45 |
|
$ |
4.02 |
|
11% |
||
|
Total consolidated debt to book capitalization |
|
53.8% |
|
|
56.9% |
|
(3.1%) |
||
|
Adjusted net homebuilding debt to total adjusted book capitalization* |
|
52.2% |
|
|
49.9% |
|
2.3% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1All 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 |
|
Nine Months Ended |
||||||||
|
|
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
||||
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
||||||||||
|
|
|
|
|
(Unaudited) |
||||||||||
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Home sale revenues |
$ |
603,788 |
|
$ |
511,059 |
|
$ |
1,642,412 |
|
$ |
1,300,493 |
||
|
|
Land sale revenues |
|
1,061 |
|
|
697 |
|
|
15,122 |
|
|
7,665 |
||
|
|
|
Total revenues |
|
604,849 |
|
|
511,756 |
|
|
1,657,534 |
|
|
1,308,158 |
|
|
|
Cost of home sales |
|
(444,898) |
|
|
(381,694) |
|
|
(1,207,339) |
|
|
(993,809) |
||
|
|
Cost of land sales |
|
(891) |
|
|
(672) |
|
|
(14,245) |
|
|
(7,671) |
||
|
|
|
Total cost of sales |
|
(445,789) |
|
|
(382,366) |
|
|
(1,221,584) |
|
|
(1,001,480) |
|
|
|
|
|
Gross margin |
|
159,060 |
|
|
129,390 |
|
|
435,950 |
|
|
306,678 |
|
|
|
|
Gross margin % |
|
26.3% |
|
|
25.3% |
|
|
26.3% |
|
|
23.4% |
|
|
Selling, general and administrative expenses |
|
(70,164) |
|
|
(61,939) |
|
|
(196,589) |
|
|
(162,831) |
||
|
|
Income (loss) from unconsolidated joint ventures |
|
557 |
|
|
(32) |
|
|
(342) |
|
|
1,249 |
||
|
|
Other income (expense) |
|
(69) |
|
|
301 |
|
|
(445) |
|
|
2,624 |
||
|
|
|
|
Homebuilding pretax income |
|
89,384 |
|
|
67,720 |
|
|
238,574 |
|
|
147,720 |
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Revenues |
|
6,179 |
|
|
5,839 |
|
|
17,275 |
|
|
18,927 |
||
|
|
Expenses |
|
(3,673) |
|
|
(3,590) |
|
|
(10,873) |
|
|
(10,394) |
||
|
|
Other income |
|
231 |
|
|
167 |
|
|
606 |
|
|
420 |
||
|
|
|
|
Financial services pretax income |
|
2,737 |
|
|
2,416 |
|
|
7,008 |
|
|
8,953 |
|
Income before taxes |
|
92,121 |
|
|
70,136 |
|
|
245,582 |
|
|
156,673 |
|||
|
Provision for income taxes |
|
(35,522) |
|
|
(11,201) |
|
|
(94,361) |
|
|
(32,778) |
|||
|
Net income |
|
56,599 |
|
|
58,935 |
|
|
151,221 |
|
|
123,895 |
|||
|
Less: Net income allocated to preferred shareholder |
|
(13,511) |
|
|
(14,166) |
|
|
(36,165) |
|
|
(40,353) |
|||
|
Less: Net income allocated to unvested restricted stock |
|
(77) |
|
|
(90) |
|
|
(211) |
|
|
(169) |
|||
|
Net income available to common stockholders |
$ |
43,011 |
|
$ |
44,679 |
|
$ |
114,845 |
|
$ |
83,373 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
$ |
0.15 |
|
$ |
0.16 |
|
$ |
0.41 |
|
$ |
0.34 |
|
|
|
Diluted |
$ |
0.14 |
|
$ |
0.15 |
|
$ |
0.37 |
|
$ |
0.31 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
|
279,547,711 |
|
|
276,966,995 |
|
|
278,863,014 |
|
|
244,998,581 |
|
|
|
Diluted |
|
317,116,924 |
|
|
314,897,098 |
|
|
316,691,803 |
|
|
283,189,878 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average additional common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
if preferred shares converted to common shares |
|
87,812,786 |
|
|
87,812,786 |
|
|
87,812,786 |
|
|
118,582,017 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted average diluted common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
if preferred shares converted to common shares |
|
404,929,710 |
|
|
402,709,884 |
|
|
404,504,589 |
|
|
401,771,895 |
||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
|
|
||||||||||
|
|
|
|
|
|
|
September 30, |
|
December 31, |
||
|
|
|
|
|
|
|
2014 |
|
2013 |
||
|
|
|
|
|
|
|
(Dollars in thousands) |
||||
|
ASSETS |
(Unaudited) |
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
$ |
15,295 |
|
$ |
355,489 |
||||
|
|
Restricted cash |
|
|
37,027 |
|
|
21,460 |
|||
|
|
Trade and other receivables |
|
30,910 |
|
|
14,431 |
||||
|
|
Inventories: |
|
|
|
|
|
|
|
||
|
|
|
Owned |
|
|
|
3,145,369 |
|
|
2,536,102 |
|
|
|
|
Not owned |
|
|
86,791 |
|
|
98,341 |
||
|
|
Investments in unconsolidated joint ventures |
|
47,922 |
|
|
66,054 |
||||
|
|
Deferred income taxes, net |
|
285,540 |
|
|
375,400 |
||||
|
|
Other assets |
|
|
|
44,977 |
|
|
45,977 |
||
|
|
|
|
Total Homebuilding Assets |
|
3,693,831 |
|
|
3,513,254 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
|
10,373 |
|
|
7,802 |
||||
|
|
Restricted cash |
|
|
1,295 |
|
|
1,295 |
|||
|
|
Mortgage loans held for sale, net |
|
68,746 |
|
|
122,031 |
||||
|
|
Mortgage loans held for investment, net |
|
11,730 |
|
|
12,220 |
||||
|
|
Other assets |
|
|
|
7,095 |
|
|
5,503 |
||
|
|
|
|
Total Financial Services Assets |
|
99,239 |
|
|
148,851 |
||
|
|
|
|
|
Total Assets |
$ |
3,793,070 |
|
$ |
3,662,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Accounts payable |
|
$ |
51,297 |
|
$ |
35,771 |
|||
|
|
Accrued liabilities |
|
|
204,678 |
|
|
214,266 |
|||
|
|
Secured project debt and other notes payable |
|
4,748 |
|
|
6,351 |
||||
|
|
Senior notes payable |
|
1,830,566 |
|
|
1,833,244 |
||||
|
|
|
|
Total Homebuilding Liabilities |
|
2,091,289 |
|
|
2,089,632 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Accounts payable and other liabilities |
|
2,419 |
|
|
2,646 |
||||
|
|
Mortgage credit facilities |
|
64,698 |
|
|
100,867 |
||||
|
|
|
|
Total Financial Services Liabilities |
|
67,117 |
|
|
103,513 |
||
|
|
|
|
|
Total Liabilities |
|
2,158,406 |
|
|
2,193,145 |
|
|
Equity: |
|
|
|
|
|
|||||
|
|
Stockholders' Equity: |
|
|
|
|
|
||||
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares |
|
|
|
|
|
|||
|
|
|
authorized; 267,829 shares issued and outstanding |
|
|
|
|
|
|||
|
|
|
at September 30, 2014 and December 31, 2013 |
|
3 |
|
|
3 |
|||
|
|
|
Common stock, $0.01 par value; 600,000,000 shares |
|
|
|
|
|
|||
|
|
|
authorized; 279,866,166 and 277,618,177 shares |
|
|
|
|
|
|||
|
|
|
issued and outstanding at September 30, 2014 and |
|
|
|
|
|
|||
|
|
|
December 31, 2013, respectively |
|
2,799 |
|
|
2,776 |
|||
|
|
|
Additional paid-in capital |
|
1,369,274 |
|
|
1,354,814 |
|||
|
|
|
Accumulated earnings |
|
262,588 |
|
|
111,367 |
|||
|
|
|
|
Total Equity |
|
1,634,664 |
|
|
1,468,960 |
||
|
|
|
|
|
Total Liabilities and Equity |
$ |
3,793,070 |
|
$ |
3,662,105 |
|
|
INVENTORIES |
||||||
|
|
||||||
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2014 |
|
2013 |
|
|
|
|
|
(Dollars in thousands) |
||
|
Inventories Owned: |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Land and land under development |
|
|
|
$ 2,048,167 |
|
$ 1,771,661 |
|
Homes completed and under construction |
|
|
|
940,448 |
|
628,371 |
|
Model homes |
|
|
|
156,754 |
|
136,070 |
|
Total inventories owned |
|
|
|
$ 3,145,369 |
|
$ 2,536,102 |
|
|
|
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
|
|
$ 1,373,645 |
|
$ 1,182,520 |
|
Southwest |
|
|
|
788,886 |
|
603,303 |
|
Southeast |
|
|
|
982,838 |
|
750,279 |
|
Total inventories owned |
|
|
|
$ 3,145,369 |
|
$ 2,536,102 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
|
|
|||||||||||||||
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||
|
|
|
|
|
|
(Unaudited) |
||||||||||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Net income |
$ |
56,599 |
|
$ |
58,935 |
|
$ |
151,221 |
|
$ |
123,895 |
|||
|
|
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Amortization of stock-based compensation |
|
2,505 |
|
|
2,681 |
|
|
7,736 |
|
|
6,656 |
|
|
|
|
|
Excess tax benefits from share-based payment arrangements |
|
(960) |
|
|
― |
|
|
(960) |
|
|
― |
|
|
|
|
|
Deferred income tax provision |
|
35,469 |
|
|
27,306 |
|
|
94,474 |
|
|
48,489 |
|
|
|
|
|
Other operating activities |
|
698 |
|
|
1,096 |
|
|
5,909 |
|
|
4,592 |
|
|
|
|
|
Changes in cash and equivalents due to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
(5,464) |
|
|
11,186 |
|
|
(16,597) |
|
|
(8,462) |
|
|
|
|
|
Mortgage loans held for sale |
|
10,534 |
|
|
32,221 |
|
|
53,108 |
|
|
44,179 |
|
|
|
|
|
Inventories - owned |
|
(231,567) |
|
|
(84,352) |
|
|
(547,590) |
|
|
(314,375) |
|
|
|
|
|
Inventories - not owned |
|
(5,090) |
|
|
(21,990) |
|
|
(19,884) |
|
|
(31,700) |
|
|
|
|
|
Other assets |
|
3,927 |
|
|
1,655 |
|
|
1,952 |
|
|
401 |
|
|
|
|
|
Accounts payable |
|
8,604 |
|
|
7,235 |
|
|
14,753 |
|
|
6,855 |
|
|
|
|
|
Accrued liabilities |
|
9,711 |
|
|
(13,165) |
|
|
(2,668) |
|
|
(6,926) |
|
|
|
Net cash provided by (used in) operating activities |
|
(115,034) |
|
|
22,808 |
|
|
(258,546) |
|
|
(126,396) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Investments in unconsolidated homebuilding joint ventures |
|
(2,271) |
|
|
(2,190) |
|
|
(7,948) |
|
|
(12,942) |
|||
|
|
Distributions of capital from unconsolidated joint ventures |
|
3,202 |
|
|
750 |
|
|
18,010 |
|
|
2,319 |
|||
|
|
Net cash paid for acquisitions |
|
― |
|
|
― |
|
|
(33,408) |
|
|
(113,793) |
|||
|
|
Other investing activities |
|
(497) |
|
|
(856) |
|
|
(1,984) |
|
|
(4,734) |
|||
|
|
|
Net cash provided by (used in) investing activities |
|
434 |
|
|
(2,296) |
|
|
(25,330) |
|
|
(129,150) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Change in restricted cash |
|
(5,642) |
|
|
(2,062) |
|
|
(15,567) |
|
|
1 |
|||
|
|
Principal payments on secured project debt and other notes payable |
|
(338) |
|
|
(72) |
|
|
(1,399) |
|
|
(7,289) |
|||
|
|
Principal payments on senior notes payable |
|
― |
|
|
― |
|
|
(4,971) |
|
|
― |
|||
|
|
Proceeds from the issuance of senior notes payable |
|
― |
|
|
300,000 |
|
|
― |
|
|
300,000 |
|||
|
|
Payment of debt issuance costs |
|
(2,387) |
|
|
(4,045) |
|
|
(2,387) |
|
|
(4,045) |
|||
|
|
Net proceeds from (payments on) mortgage credit facilities |
|
(1,881) |
|
|
(32,784) |
|
|
(36,169) |
|
|
(27,979) |
|||
|
|
Payment of issuance costs in connection with preferred shareholder equity transaction |
|
― |
|
|
(3) |
|
|
― |
|
|
(350) |
|||
|
|
Proceeds from the exercise of stock options |
|
2,017 |
|
|
946 |
|
|
5,786 |
|
|
11,781 |
|||
|
|
Excess tax benefits from share-based payment arrangements |
|
960 |
|
|
― |
|
|
960 |
|
|
― |
|||
|
|
|
Net cash provided by (used in) financing activities |
|
(7,271) |
|
|
261,980 |
|
|
(53,747) |
|
|
272,119 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
(121,871) |
|
|
282,492 |
|
|
(337,623) |
|
|
16,573 |
||||
|
Cash and equivalents at beginning of period |
|
147,539 |
|
|
80,636 |
|
|
363,291 |
|
|
346,555 |
||||
|
Cash and equivalents at end of period |
$ |
25,668 |
|
$ |
363,128 |
|
$ |
25,668 |
|
$ |
363,128 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
$ |
25,668 |
|
$ |
363,128 |
|
$ |
25,668 |
|
$ |
363,128 |
||||
|
Homebuilding restricted cash at end of period |
|
37,027 |
|
|
27,524 |
|
|
37,027 |
|
|
27,524 |
||||
|
Financial services restricted cash at end of period |
|
1,295 |
|
|
1,795 |
|
|
1,295 |
|
|
1,795 |
||||
|
Cash and equivalents and restricted cash at end of period |
$ |
63,990 |
|
$ |
392,447 |
|
$ |
63,990 |
|
$ |
392,447 |
||||
|
REGIONAL OPERATING DATA |
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
|
|
|
|
Three Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
437 |
|
$ |
640 |
|
|
467 |
|
$ |
586 |
|
|
(6%) |
|
|
9% |
||
|
|
|
Arizona |
|
|
69 |
|
|
362 |
|
|
51 |
|
|
286 |
|
|
35% |
|
|
27% |
|
|
|
|
Texas |
|
|
225 |
|
|
468 |
|
|
170 |
|
|
385 |
|
|
32% |
|
|
22% |
|
|
|
|
Colorado |
|
|
47 |
|
|
504 |
|
|
36 |
|
|
484 |
|
|
31% |
|
|
4% |
|
|
|
Southwest |
|
|
341 |
|
|
451 |
|
|
257 |
|
|
379 |
|
|
33% |
|
|
19% |
||
|
|
|
Florida |
|
|
266 |
|
|
385 |
|
|
285 |
|
|
283 |
|
|
(7%) |
|
|
36% |
|
|
|
|
Carolinas |
|
|
206 |
|
|
329 |
|
|
208 |
|
|
284 |
|
|
(1%) |
|
|
16% |
|
|
|
Southeast |
|
|
472 |
|
|
360 |
|
|
493 |
|
|
284 |
|
|
(4%) |
|
|
27% |
||
|
|
|
|
Consolidated total |
|
|
1,250 |
|
|
483 |
|
|
1,217 |
|
|
420 |
|
|
3% |
|
|
15% |
|
|
Unconsolidated joint ventures |
|
|
― |
|
|
― |
|
|
2 |
|
|
578 |
|
|
(100%) |
|
|
― |
||
|
|
|
|
Total (including joint ventures) |
|
|
1,250 |
|
$ |
483 |
|
|
1,219 |
|
$ |
420 |
|
|
3% |
|
|
15% |
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
1,215 |
|
$ |
643 |
|
|
1,286 |
|
$ |
541 |
|
|
(6%) |
|
|
19% |
||
|
|
|
Arizona |
|
|
192 |
|
|
327 |
|
|
171 |
|
|
260 |
|
|
12% |
|
|
26% |
|
|
|
|
Texas |
|
|
553 |
|
|
453 |
|
|
458 |
|
|
379 |
|
|
21% |
|
|
20% |
|
|
|
|
Colorado |
|
|
158 |
|
|
500 |
|
|
117 |
|
|
439 |
|
|
35% |
|
|
14% |
|
|
|
Southwest |
|
|
903 |
|
|
434 |
|
|
746 |
|
|
361 |
|
|
21% |
|
|
20% |
||
|
|
|
Florida |
|
|
766 |
|
|
368 |
|
|
707 |
|
|
269 |
|
|
8% |
|
|
37% |
|
|
|
|
Carolinas |
|
|
597 |
|
|
312 |
|
|
520 |
|
|
279 |
|
|
15% |
|
|
12% |
|
|
|
Southeast |
|
|
1,363 |
|
|
344 |
|
|
1,227 |
|
|
273 |
|
|
11% |
|
|
26% |
||
|
|
|
|
Consolidated total |
|
|
3,481 |
|
|
472 |
|
|
3,259 |
|
|
399 |
|
|
7% |
|
|
18% |
|
|
Unconsolidated joint ventures |
|
|
― |
|
|
― |
|
|
23 |
|
|
505 |
|
|
(100%) |
|
|
― |
||
|
|
|
|
Total (including joint ventures) |
|
|
3,481 |
|
$ |
472 |
|
|
3,282 |
|
$ |
400 |
|
|
6% |
|
|
18% |
|
|
|
|
|
|
Three Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
399 |
|
$ |
645 |
|
|
386 |
|
$ |
630 |
|
|
3% |
|
|
2% |
||
|
|
|
Arizona |
|
|
64 |
|
|
325 |
|
|
95 |
|
|
291 |
|
|
(33%) |
|
|
12% |
|
|
|
|
Texas |
|
|
206 |
|
|
472 |
|
|
154 |
|
|
423 |
|
|
34% |
|
|
12% |
|
|
|
|
Colorado |
|
|
39 |
|
|
521 |
|
|
29 |
|
|
499 |
|
|
34% |
|
|
4% |
|
|
|
Southwest |
|
|
309 |
|
|
448 |
|
|
278 |
|
|
386 |
|
|
11% |
|
|
16% |
||
|
|
|
Florida |
|
|
243 |
|
|
428 |
|
|
274 |
|
|
389 |
|
|
(11%) |
|
|
10% |
|
|
|
|
Carolinas |
|
|
203 |
|
|
341 |
|
|
172 |
|
|
311 |
|
|
18% |
|
|
10% |
|
|
|
Southeast |
|
|
446 |
|
|
388 |
|
|
446 |
|
|
359 |
|
|
― |
|
|
8% |
||
|
|
|
|
Consolidated total |
|
|
1,154 |
|
|
493 |
|
|
1,110 |
|
|
460 |
|
|
4% |
|
|
7% |
|
|
Unconsolidated joint ventures |
|
|
― |
|
|
― |
|
|
2 |
|
|
585 |
|
|
(100%) |
|
|
― |
||
|
|
|
|
Total (including joint ventures) |
|
|
1,154 |
|
$ |
493 |
|
|
1,112 |
|
$ |
460 |
|
|
4% |
|
|
7% |
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
1,370 |
|
$ |
633 |
|
|
1,381 |
|
$ |
582 |
|
|
(1%) |
|
|
9% |
||
|
|
|
Arizona |
|
|
206 |
|
|
313 |
|
|
248 |
|
|
298 |
|
|
(17%) |
|
|
5% |
|
|
|
|
Texas |
|
|
800 |
|
|
454 |
|
|
612 |
|
|
403 |
|
|
31% |
|
|
13% |
|
|
|
|
Colorado |
|
|
167 |
|
|
510 |
|
|
156 |
|
|
452 |
|
|
7% |
|
|
13% |
|
|
|
Southwest |
|
|
1,173 |
|
|
437 |
|
|
1,016 |
|
|
385 |
|
|
15% |
|
|
14% |
||
|
|
|
Florida |
|
|
784 |
|
|
413 |
|
|
1,010 |
|
|
336 |
|
|
(22%) |
|
|
23% |
|
|
|
|
Carolinas |
|
|
662 |
|
|
320 |
|
|
613 |
|
|
283 |
|
|
8% |
|
|
13% |
|
|
|
Southeast |
|
|
1,446 |
|
|
371 |
|
|
1,623 |
|
|
316 |
|
|
(11%) |
|
|
17% |
||
|
|
|
|
Consolidated total |
|
|
3,989 |
|
|
480 |
|
|
4,020 |
|
|
425 |
|
|
(1%) |
|
|
13% |
|
|
Unconsolidated joint ventures |
|
|
― |
|
|
― |
|
|
12 |
|
|
546 |
|
|
(100%) |
|
|
― |
||
|
|
|
|
Total (including joint ventures) |
|
|
3,989 |
|
$ |
480 |
|
|
4,032 |
|
$ |
425 |
|
|
(1%) |
|
|
13% |
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
|
2014 |
|
2013 |
|
% Change |
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
48 |
|
48 |
|
― |
|
47 |
|
46 |
|
2% |
||
|
|
|
Arizona |
|
10 |
|
10 |
|
― |
|
10 |
|
9 |
|
11% |
|
|
|
|
Texas |
|
42 |
|
30 |
|
40% |
|
39 |
|
30 |
|
30% |
|
|
|
|
Colorado |
|
11 |
|
8 |
|
38% |
|
11 |
|
7 |
|
57% |
|
|
|
Southwest |
|
63 |
|
48 |
|
31% |
|
60 |
|
46 |
|
30% |
||
|
|
|
Florida |
|
47 |
|
41 |
|
15% |
|
44 |
|
40 |
|
10% |
|
|
|
|
Carolinas |
|
27 |
|
31 |
|
(13%) |
|
30 |
|
31 |
|
(3%) |
|
|
|
Southeast |
|
74 |
|
72 |
|
3% |
|
74 |
|
71 |
|
4% |
||
|
|
|
|
Consolidated total |
|
185 |
|
168 |
|
10% |
|
181 |
|
163 |
|
11% |
|
|
|
|
|
|
At September 30, |
||||||||||||||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
551 |
|
$ |
362,388 |
|
|
535 |
|
$ |
341,743 |
|
|
3% |
|
|
6% |
||
|
|
|
Arizona |
|
|
119 |
|
|
40,433 |
|
|
154 |
|
|
50,512 |
|
|
(23%) |
|
|
(20%) |
|
|
|
|
Texas |
|
|
537 |
|
|
258,724 |
|
|
358 |
|
|
158,863 |
|
|
50% |
|
|
63% |
|
|
|
|
Colorado |
|
|
117 |
|
|
65,634 |
|
|
114 |
|
|
56,528 |
|
|
3% |
|
|
16% |
|
|
|
Southwest |
|
|
773 |
|
|
364,791 |
|
|
626 |
|
|
265,903 |
|
|
23% |
|
|
37% |
||
|
|
|
Florida |
|
|
522 |
|
|
270,797 |
|
|
669 |
|
|
250,241 |
|
|
(22%) |
|
|
8% |
|
|
|
|
Carolinas |
|
|
362 |
|
|
128,149 |
|
|
335 |
|
|
106,261 |
|
|
8% |
|
|
21% |
|
|
|
Southeast |
|
|
884 |
|
|
398,946 |
|
|
1,004 |
|
|
356,502 |
|
|
(12%) |
|
|
12% |
||
|
|
|
|
Consolidated total |
|
|
2,208 |
|
|
1,126,125 |
|
|
2,165 |
|
|
964,148 |
|
|
2% |
|
|
17% |
|
|
Unconsolidated joint ventures |
|
|
― |
|
|
― |
|
|
1 |
|
|
599 |
|
|
(100%) |
|
|
(100%) |
||
|
|
|
|
Total (including joint ventures) |
|
|
2,208 |
|
$ |
1,126,125 |
|
|
2,166 |
|
$ |
964,747 |
|
|
2% |
|
|
17% |
|
|
|
|
|
|
At September 30, |
||||
|
|
|
|
|
|
2014 |
|
2013 |
|
% Change |
|
Homesites owned and controlled: |
|
|
|
|
|
|
|||
|
|
California |
|
9,881 |
|
9,979 |
|
(1%) |
||
|
|
|
Arizona |
|
2,173 |
|
2,291 |
|
(5%) |
|
|
|
|
Texas |
|
4,986 |
|
4,468 |
|
12% |
|
|
|
|
Colorado |
|
1,182 |
|
1,216 |
|
(3%) |
|
|
|
|
Nevada |
|
1,124 |
|
1,124 |
|
― |
|
|
|
Southwest |
|
9,465 |
|
9,099 |
|
4% |
||
|
|
|
Florida |
|
12,683 |
|
11,409 |
|
11% |
|
|
|
|
Carolinas |
|
4,278 |
|
5,156 |
|
(17%) |
|
|
|
Southeast |
|
16,961 |
|
16,565 |
|
2% |
||
|
|
|
Total (including joint ventures) |
|
36,307 |
|
35,643 |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
|
28,937 |
|
26,936 |
|
7% |
||
|
|
Homesites optioned or subject to contract |
|
7,172 |
|
8,192 |
|
(12%) |
||
|
|
Joint venture homesites |
|
198 |
|
515 |
|
(62%) |
||
|
|
|
Total (including joint ventures) |
|
36,307 |
|
35,643 |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|
|||
|
|
Raw lots |
|
6,745 |
|
6,101 |
|
11% |
||
|
|
Homesites under development |
|
9,379 |
|
8,549 |
|
10% |
||
|
|
Finished homesites |
|
6,448 |
|
6,871 |
|
(6%) |
||
|
|
Under construction or completed homes |
|
3,594 |
|
3,061 |
|
17% |
||
|
|
Held for sale |
|
2,771 |
|
2,354 |
|
18% |
||
|
|
|
Total |
|
28,937 |
|
26,936 |
|
7% |
|
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 gross margin percentage from home sales to adjusted gross margin percentage from home sales, excluding 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) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sale revenues |
$ |
603,788 |
|
|
|
$ |
511,059 |
|
|
|
$ |
591,706 |
|
|
|
Less: Cost of home sales |
|
(444,898) |
|
|
|
|
(381,694) |
|
|
|
|
(434,196) |
|
|
|
Gross margin from home sales |
|
158,890 |
|
26.3% |
|
|
129,365 |
|
25.3% |
|
|
157,510 |
|
26.6% |
|
Add: Capitalized interest included in cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of home sales |
|
28,872 |
|
4.8% |
|
|
30,303 |
|
5.9% |
|
|
29,812 |
|
5.1% |
|
Adjusted gross margin from home sales, excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest amortized to cost of home sales |
$ |
187,762 |
|
31.1% |
|
$ |
159,668 |
|
31.2% |
|
$ |
187,322 |
|
31.7% |
The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total consolidated debt to book capitalization and adjusted net homebuilding debt to total adjusted book capitalization ratios. In addition, the table set forth below calculates homebuilding debt to adjusted homebuilding EBITDA. We believe these ratios are 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 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 |
$ |
1,900,012 |
|
$ |
1,901,416 |
|
$ |
1,940,462 |
|
$ |
1,901,802 |
||||||||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Financial services indebtedness |
|
(64,698) |
|
|
(66,579) |
|
|
(100,867) |
|
|
(64,180) |
|||||||
|
|
Homebuilding cash |
|
(52,322) |
|
|
(161,121) |
|
|
(376,949) |
|
|
(373,523) |
|||||||
|
Adjusted net homebuilding debt |
|
1,782,992 |
|
|
1,673,716 |
|
|
1,462,646 |
|
|
1,464,099 |
||||||||
|
Stockholders' equity |
|
1,634,664 |
|
|
1,572,583 |
|
|
1,468,960 |
|
|
1,400,026 |
||||||||
|
Total adjusted book capitalization |
$ |
3,417,656 |
|
$ |
3,246,299 |
|
$ |
2,931,606 |
|
$ |
2,864,125 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total consolidated debt to book capitalization |
|
53.8% |
|
|
54.7% |
|
|
56.9% |
|
|
57.6% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted net homebuilding debt to total adjusted book capitalization |
|
52.2% |
|
|
51.6% |
|
|
49.9% |
|
|
51.1% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Homebuilding debt |
$ |
1,835,314 |
|
|
|
|
|
|
|
$ |
1,837,622 |
||||||||
|
LTM adjusted homebuilding EBITDA |
|
471,944 |
|
|
|
|
|
|
|
|
316,954 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Homebuilding debt to adjusted homebuilding EBITDA |
|
3.9x |
|
|
|
|
|
|
|
|
5.8x |
||||||||
The table set forth below calculates adjusted stockholders' equity per common share. The Company believes that the adjusted 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 the pro forma effect to the conversion of our outstanding preferred shares assuming full conversion to common stock.
|
|
September 30, |
|
June 30, |
|
December 31, |
|||
|
|
2014 |
|
2014 |
|
2013 |
|||
|
|
|
|
|
|
|
|
|
|
|
Actual common shares outstanding |
|
279,866,166 |
|
|
279,287,853 |
|
|
277,618,177 |
|
Add: Conversion of preferred shares to common shares |
|
87,812,786 |
|
|
87,812,786 |
|
|
87,812,786 |
|
Pro forma common shares outstanding |
|
367,678,952 |
|
|
367,100,639 |
|
|
365,430,963 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (Dollars in thousands) |
$ |
1,634,664 |
|
$ |
1,572,583 |
|
$ |
1,468,960 |
|
Divided by pro forma common shares outstanding |
÷ |
367,678,952 |
|
÷ |
367,100,639 |
|
÷ |
365,430,963 |
|
Adjusted stockholders' equity per common share |
$ |
4.45 |
|
$ |
4.28 |
|
$ |
4.02 |
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 September 30, |
|||||||||||
|
|
|
|
September 30, |
|
September 30, |
|
June 30, |
|
2014 |
|
2013 |
|||||
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
56,599 |
|
$ |
58,935 |
|
$ |
56,463 |
|
$ |
216,041 |
|
$ |
610,820 |
||
|
|
Provision (benefit) for income taxes |
|
35,522 |
|
|
11,201 |
|
|
35,383 |
|
|
130,566 |
|
|
(421,026) |
|
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
28,959 |
|
|
30,322 |
|
|
29,816 |
|
|
116,667 |
|
|
123,233 |
|
|
|
Homebuilding depreciation and amortization |
|
1,215 |
|
|
1,031 |
|
|
1,224 |
|
|
4,678 |
|
|
2,978 |
|
|
|
Amortization of stock-based compensation |
|
2,505 |
|
|
2,681 |
|
|
2,859 |
|
|
10,095 |
|
|
9,289 |
|
|
EBITDA |
|
124,800 |
|
|
104,170 |
|
|
125,745 |
|
|
478,047 |
|
|
325,294 |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash distributions of income from unconsolidated joint ventures |
|
― |
|
|
― |
|
|
1,875 |
|
|
1,875 |
|
|
6,000 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
557 |
|
|
(32) |
|
|
(462) |
|
|
(642) |
|
|
1,866 |
|
|
|
Income from financial services subsidiary |
|
2,506 |
|
|
2,249 |
|
|
2,352 |
|
|
8,620 |
|
|
12,474 |
|
|
Adjusted Homebuilding EBITDA |
$ |
121,737 |
|
$ |
101,953 |
|
$ |
125,730 |
|
$ |
471,944 |
|
$ |
316,954 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
604,849 |
|
$ |
511,756 |
|
$ |
592,486 |
|
$ |
2,263,985 |
|
$ |
1,728,001 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
20.1% |
|
|
19.9% |
|
|
21.2% |
|
|
20.8% |
|
|
18.3% |
||
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 September 30, |
|||||||||||
|
|
|
|
|
September 30, |
|
September 30, |
|
June 30, |
|
2014 |
|
2013 |
|||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
(115,034) |
|
$ |
22,808 |
|
$ |
(25,949) |
|
$ |
(286,366) |
|
$ |
(238,376) |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Provision (benefit) for income taxes |
|
35,522 |
|
|
(11,201) |
|
|
35,383 |
|
|
130,566 |
|
|
(421,026) |
||
|
|
Deferred income tax benefit (provision) |
|
|
(35,469) |
|
|
(27,306) |
|
|
(35,383) |
|
|
(130,199) |
|
|
405,511 |
|
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
|
28,959 |
|
|
30,322 |
|
|
29,816 |
|
|
116,667 |
|
|
123,233 |
|
|
|
Excess tax benefits from share-based payment arrangements |
|
|
960 |
|
|
― |
|
|
― |
|
|
960 |
|
|
― |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Income from financial services subsidiary |
|
2,506 |
|
|
2,249 |
|
|
2,352 |
|
|
8,620 |
|
|
12,474 |
||
|
|
Depreciation and amortization from financial services subsidiary |
|
|
35 |
|
|
33 |
|
|
34 |
|
|
134 |
|
|
121 |
|
|
|
Loss on disposal of property and equipment |
|
5 |
|
|
― |
|
|
― |
|
|
7 |
|
|
38 |
||
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Trade and other receivables |
|
5,464 |
|
|
(11,186) |
|
|
(6,416) |
|
|
11,379 |
|
|
(4,482) |
|
|
|
|
Mortgage loans held for sale |
|
|
(10,534) |
|
|
(32,221) |
|
|
9,364 |
|
|
(6,386) |
|
|
(11,856) |
|
|
|
Inventories-owned |
|
231,567 |
|
|
84,352 |
|
|
127,264 |
|
|
648,527 |
|
|
444,182 |
|
|
|
|
Inventories-not owned |
|
|
5,090 |
|
|
21,990 |
|
|
6,629 |
|
|
31,503 |
|
|
52,561 |
|
|
|
Other assets |
|
(3,927) |
|
|
(1,655) |
|
|
1,142 |
|
|
(2,516) |
|
|
(2,097) |
|
|
|
|
Accounts payable |
|
|
(8,604) |
|
|
(7,235) |
|
|
(4,773) |
|
|
(21,223) |
|
|
(12,843) |
|
|
|
Accrued liabilities |
|
(9,711) |
|
|
13,165 |
|
|
(8,961) |
|
|
(12,207) |
|
|
(5,220) |
|
|
Adjusted Homebuilding EBITDA |
|
$ |
121,737 |
|
$ |
101,953 |
|
$ |
125,730 |
|
$ |
471,944 |
|
$ |
316,954 |
||
SOURCE Standard Pacific Corp.