IRVINE, Calif., April 30, 2015 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the first quarter ended March 31, 2015.
2015 First Quarter Highlights and Comparisons to 2014 First Quarter
Scott Stowell, the Company's President and Chief Executive Officer commented, "I'm pleased with our first quarter results and the start to the spring selling season. With our orders up 20%, backlog value up 29% and the solid improvement we are seeing in our backlog gross margin, 2015 is setting up to be another year of solid growth and performance for the Company."
Orders. Net new orders for the 2015 first quarter were up 20% from the 2014 first quarter, to 1,571 homes, with the dollar value of these orders up 31%. The Company's monthly sales absorption rate was 2.6 per community for the 2015 first quarter, up 5% from the 2014 first quarter and up 49% compared to the 2014 fourth quarter. The increase in sales absorption rate from the 2014 fourth quarter to the 2015 first quarter was above the seasonality we typically experience in our business. The Company's cancellation rate for the 2015 first quarter was 11% compared to 14% for the 2014 first quarter and 21% for the 2014 fourth quarter.
Backlog. The dollar value of homes in backlog increased 29% to $1.3 billion, or 2,310 homes, compared to $1.0 billion, or 2,016 homes, for the 2014 first quarter, and increased 41% compared to $916.4 million, or 1,711 homes, for the 2014 fourth quarter. The increase in year-over-year backlog value was driven primarily by a 13% 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.
Revenue. Revenues from home sales for the 2015 first quarter increased 5%, to $468.4 million, as compared to the prior year period, resulting primarily from a 7% increase in the Company's average home price to $482 thousand, partially offset by a 2% decrease 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 decrease in new home deliveries compared to the prior year period was driven primarily by a 14% decrease in deliveries from the Company's California region, partially offset by an 11% increase from the Company's Southwest region.
Gross Margin. Gross margin percentage from home sales for the 2015 first quarter was 24.2%, down 100 basis points from last quarter, consistent with the Company's expectations. As previously disclosed, we anticipate our full year gross margin will be in the 24-25% range.
Land. During the 2015 first quarter, the Company spent $160.1 million on land purchases and development costs, compared to $224.1 million for the 2014 first quarter. The Company purchased $78.5 million of land, consisting of 971 homesites, of which 31% (based on homesites) is located in California, 28% in Texas, 21% in the Carolinas, 19% in Florida, and 1% in Colorado. As of March 31, 2015, the Company owned or controlled 35,183 homesites, of which 24,771 were owned and actively selling or under development, 5,999 were controlled or under option, and the remaining 4,413 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 March 31, 2015.
Liquidity. The Company ended the quarter with $516 million of available liquidity, including $81 million of unrestricted homebuilding cash and $435 million available to borrow under the revolving credit facility. The revolving credit facility has an accordion feature under which the aggregate commitment may be increased from $450 million 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 March 31, 2015 and 2014 was 56.0% and 54.9%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 54.6%* and 51.7%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending March 31, 2015 and 2014 was 4.6x* and 4.5x*, respectively.
Earnings Conference Call
A conference call to discuss the Company's 2015 first quarter results will be held at 12:00 p.m. Eastern time May 1, 2015. 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) 299-7230 (domestic) or (719) 325-2359 (international); Passcode: 7558033. 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: 7558033.
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 new home orders ; deliveries ; backlog ; absorption rates; cancellation rates; average home price ; 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; the spring selling season; and our future growth and 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, 2014 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
March 31,
March 31,
Percentage
December 31,
Percentage
2015
2014
or % Change
2014
or % Change
Operating Data
(Dollars in thousands)
Deliveries
972
995
(2%)
1,475
(34%)
Average selling price
$
482
$
449
7%
$
491
(2%)
Home sale revenues
$
468,379
$
446,918
5%
$
724,342
(35%)
Gross margin % (including land sales)
24.3%
25.8%
(1.5%)
24.2%
0.1%
Gross margin % from home sales
24.2%
26.6%
(2.4%)
25.2%
(1.0%)
Adjusted gross margin % from home sales (excluding interest
amortized to cost of home sales)*
29.0%
32.0%
(3.0%)
30.2%
(1.2%)
Incentive and stock-based compensation expense
$
4,422
$
5,028
(12%)
$
7,364
(40%)
Selling expenses
$
26,123
$
22,699
15%
$
35,746
(27%)
G&A expenses (excluding incentive and stock-based
compensation expenses)
$
35,525
$
30,863
15%
$
36,162
(2%)
SG&A expenses
$
66,070
$
58,590
13%
$
79,272
(17%)
SG&A % from home sales
14.1%
13.1%
1.0%
10.9%
3.2%
Operating margin from home sales
$
47,492
$
60,083
(21%)
$
103,455
(54%)
Operating margin % from home sales
10.1%
13.4%
(3.3%)
14.3%
(4.2%)
Net new orders (homes)
1,571
1,311
20%
978
61%
Net new orders (dollar value)
$
829,930
$
633,818
31%
$
494,064
68%
Average active selling communities
198
174
14%
184
8%
Monthly sales absorption rate per community
2.6
2.5
5%
1.8
49%
Cancellation rate
11%
14%
(3%)
21%
(10%)
Gross cancellations
200
221
(10%)
258
(22%)
Cancellations from current quarter sales
84
90
(7%)
70
20%
Backlog (homes)
2,310
2,016
15%
1,711
35%
Backlog (dollar value)
$
1,293,272
$
1,001,385
29%
$
916,376
41%
Cash flows (uses) from operating activities
$
(94,071)
$
(117,563)
20%
$
(103,851)
9%
Cash flows (uses) from investing activities
$
(7,884)
$
10,286
$
(5,690)
(39%)
Cash flows (uses) from financing activities
$
(6,840)
$
(50,902)
87%
$
296,266
Land purchases (incl. seller financing)
$
78,494
$
144,744
(46%)
$
172,320
(54%)
Adjusted Homebuilding EBITDA*
$
74,457
$
89,008
(16%)
$
143,529
(48%)
Adjusted Homebuilding EBITDA Margin %*
15.8%
19.3%
(3.5%)
19.0%
(3.2%)
Homebuilding interest incurred
$
41,803
$
38,786
8%
$
39,960
5%
Homebuilding interest capitalized to inventories owned
$
41,401
$
38,213
8%
$
39,594
5%
Homebuilding interest capitalized to investments in JVs
$
402
$
573
(30%)
$
366
10%
Interest amortized to cost of sales (incl. cost of land sales)
$
22,638
$
24,983
(9%)
$
39,354
(42%)
As of
March 31,
December 31,
Percentage
2015
2014
or % Change
Balance Sheet Data
(Dollars in thousands, except per share amounts)
Homebuilding cash (including restricted cash)
$
120,167
$
218,650
(45%)
Inventories owned
$
3,480,777
$
3,255,204
7%
Homesites owned and controlled
35,183
35,430
(1%)
Homes under construction
2,317
2,032
14%
Completed specs
424
515
(18%)
Deferred tax asset valuation allowance
$
1,375
$
2,561
(46%)
Homebuilding debt
$
2,151,607
$
2,136,082
1%
Stockholders' equity
$
1,688,355
$
1,676,688
1%
Adjusted stockholders' equity per share (including if-converted
preferred stock)*
$
4.66
$
4.62
1%
Total consolidated debt to book capitalization
57.1%
57.0%
0.1%
Adjusted net homebuilding debt to total adjusted
book capitalization*
54.6%
53.3%
1.3%
|
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 March 31, |
||||
|
|
|
|
|
2015 |
|
2014 |
||
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
||||
|
|
|
|
|
(Unaudited) |
||||
|
Homebuilding: |
|
|
|
|
|
|||
|
|
Home sale revenues |
$ |
468,379 |
|
$ |
446,918 |
||
|
|
Land sale revenues |
|
1,899 |
|
|
13,281 |
||
|
|
|
Total revenues |
|
470,278 |
|
|
460,199 |
|
|
|
Cost of home sales |
|
(354,817) |
|
|
(328,245) |
||
|
|
Cost of land sales |
|
(1,356) |
|
|
(13,004) |
||
|
|
|
Total cost of sales |
|
(356,173) |
|
|
(341,249) |
|
|
|
|
|
Gross margin |
|
114,105 |
|
|
118,950 |
|
|
|
|
Gross margin % |
|
24.3% |
|
|
25.8% |
|
|
Selling, general and administrative expenses |
|
(66,070) |
|
|
(58,590) |
||
|
|
Income (loss) from unconsolidated joint ventures |
|
(451) |
|
|
(437) |
||
|
|
Other income (expense) |
|
(296) |
|
|
(13) |
||
|
|
|
|
Homebuilding pretax income |
|
47,288 |
|
|
59,910 |
|
Financial Services: |
|
|
|
|
|
|||
|
|
Revenues |
|
4,919 |
|
|
4,984 |
||
|
|
Expenses |
|
(4,101) |
|
|
(3,440) |
||
|
|
Other income |
|
390 |
|
|
161 |
||
|
|
|
|
Financial services pretax income |
|
1,208 |
|
|
1,705 |
|
Income before taxes |
|
48,496 |
|
|
61,615 |
|||
|
Provision for income taxes |
|
(16,891) |
|
|
(23,456) |
|||
|
Net income |
|
31,605 |
|
|
38,159 |
|||
|
Less: Net income allocated to preferred shareholder |
|
(7,662) |
|
|
(9,147) |
|||
|
Less: Net income allocated to unvested restricted stock |
|
(67) |
|
|
(59) |
|||
|
Net income available to common stockholders |
$ |
23,876 |
|
$ |
28,953 |
|||
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share: |
|
|
|
|
|
|||
|
|
Basic |
|
$ |
0.09 |
|
$ |
0.10 |
|
|
|
Diluted |
$ |
0.08 |
|
$ |
0.09 |
||
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|||
|
|
Basic |
|
|
273,635,605 |
|
|
277,948,342 |
|
|
|
Diluted |
|
310,391,822 |
|
|
315,894,969 |
||
|
|
|
|
|
|
|
|
|
|
|
Weighted average additional common shares outstanding |
|
|
|
|
|
|||
|
|
if preferred shares converted to common shares |
|
87,812,786 |
|
|
87,812,786 |
||
|
|
|
|
|
|
|
|
|
|
|
Total weighted average diluted common shares outstanding |
|
|
|
|
|
|||
|
|
if preferred shares converted to common shares |
|
398,204,608 |
|
|
403,707,755 |
||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||||
|
|
|
|
|
|
March 31, |
|
December 31, |
||
|
|
|
|
|
|
2015 |
|
2014 |
||
|
|
|
|
|
|
(Dollars in thousands) |
||||
|
ASSETS |
(Unaudited) |
|
|
|
|||||
|
Homebuilding: |
|
|
|
|
|
||||
|
|
Cash and equivalents |
$ |
80,926 |
|
$ |
180,428 |
|||
|
|
Restricted cash |
|
39,241 |
|
|
38,222 |
|||
|
|
Trade and other receivables |
|
25,970 |
|
|
19,005 |
|||
|
|
Inventories: |
|
|
|
|
|
|
||
|
|
|
Owned |
|
|
3,480,777 |
|
|
3,255,204 |
|
|
|
|
Not owned |
|
50,856 |
|
|
85,153 |
||
|
|
Investments in unconsolidated joint ventures |
|
51,362 |
|
|
50,111 |
|||
|
|
Deferred income taxes, net |
|
273,678 |
|
|
276,402 |
|||
|
|
Other assets |
|
|
39,872 |
|
|
42,592 |
||
|
|
|
|
Total Homebuilding Assets |
|
4,042,682 |
|
|
3,947,117 |
|
|
Financial Services: |
|
|
|
|
|
||||
|
|
Cash and equivalents |
|
22,672 |
|
|
31,965 |
|||
|
|
Restricted cash |
|
1,295 |
|
|
1,295 |
|||
|
|
Mortgage loans held for sale, net |
|
98,692 |
|
|
174,420 |
|||
|
|
Mortgage loans held for investment, net |
|
18,518 |
|
|
14,380 |
|||
|
|
Other assets |
|
|
8,290 |
|
|
5,243 |
||
|
|
|
|
Total Financial Services Assets |
|
149,467 |
|
|
227,303 |
|
|
|
|
|
|
Total Assets |
$ |
4,192,149 |
|
$ |
4,174,420 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
||||
|
Homebuilding: |
|
|
|
|
|
||||
|
|
Accounts payable |
$ |
58,564 |
|
$ |
45,085 |
|||
|
|
Accrued liabilities |
|
199,846 |
|
|
223,783 |
|||
|
|
Revolving credit facility |
|
15,000 |
|
|
― |
|||
|
|
Secured project debt and other notes payable |
|
4,378 |
|
|
4,689 |
|||
|
|
Senior notes payable |
|
2,132,229 |
|
|
2,131,393 |
|||
|
|
|
|
Total Homebuilding Liabilities |
|
2,410,017 |
|
|
2,404,950 |
|
|
Financial Services: |
|
|
|
|
|
||||
|
|
Accounts payable and other liabilities |
|
2,240 |
|
|
3,369 |
|||
|
|
Mortgage credit facilities |
|
91,537 |
|
|
89,413 |
|||
|
|
|
|
Total Financial Services Liabilities |
|
93,777 |
|
|
92,782 |
|
|
|
|
|
|
Total Liabilities |
|
2,503,794 |
|
|
2,497,732 |
|
Equity: |
|
|
|
|
|
||||
|
|
Stockholders' Equity: |
|
|
|
|
|
|||
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares |
|
|
|
|
|
||
|
|
|
authorized; 267,829 shares issued and outstanding |
|
|
|
|
|
||
|
|
|
at March 31, 2015 and December 31, 2014 |
|
3 |
|
|
3 |
||
|
|
|
Common stock, $0.01 par value; 600,000,000 shares |
|
|
|
|
|
||
|
|
|
authorized; 274,390,765 and 275,141,189 shares |
|
|
|
|
|
||
|
|
|
issued and outstanding at March 31, 2015 and |
|
|
|
|
|
||
|
|
|
December 31, 2014, respectively |
|
2,744 |
|
|
2,751 |
||
|
|
|
Additional paid-in capital |
|
1,326,771 |
|
|
1,346,702 |
||
|
|
|
Accumulated earnings |
|
358,837 |
|
|
327,232 |
||
|
|
|
|
Total Equity |
|
1,688,355 |
|
|
1,676,688 |
|
|
|
|
|
|
Total Liabilities and Equity |
$ |
4,192,149 |
|
$ |
4,174,420 |
|
|
|
|
|
|
|
|
|
|
|
|
INVENTORIES |
||||
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2015 |
|
2014 |
|
|
|
(Dollars in thousands) |
||
|
Inventories Owned: |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Land and land under development |
|
$ 2,287,004 |
|
$ 2,248,289 |
|
Homes completed and under construction |
|
1,007,853 |
|
827,612 |
|
Model homes |
|
185,920 |
|
179,303 |
|
Total inventories owned |
|
$ 3,480,777 |
|
$ 3,255,204 |
|
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
|
|
California |
|
$ 1,520,677 |
|
$ 1,422,330 |
|
Southwest |
|
852,540 |
|
799,473 |
|
Southeast |
|
1,107,560 |
|
1,033,401 |
|
Total inventories owned |
|
$ 3,480,777 |
|
$ 3,255,204 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
Three Months Ended March 31, |
||||
|
|
|
|
|
|
2015 |
|
2014 |
||
|
|
|
|
|
|
(Dollars in thousands) |
||||
|
|
|
|
|
|
(Unaudited) |
||||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
||||
|
|
Net income |
$ |
31,605 |
|
$ |
38,159 |
|||
|
|
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|||
|
|
|
provided by (used in) operating activities: |
|
|
|
|
|
||
|
|
|
|
Amortization of stock-based compensation |
|
2,695 |
|
|
2,372 |
|
|
|
|
|
Excess tax benefits from share-based payment arrangements |
|
(3,369) |
|
|
― |
|
|
|
|
|
Deferred income tax provision |
|
16,874 |
|
|
23,622 |
|
|
|
|
|
Other operating activities |
|
1,892 |
|
|
1,616 |
|
|
|
|
|
Changes in cash and equivalents due to: |
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
(7,008) |
|
|
(17,549) |
|
|
|
|
|
Mortgage loans held for sale |
|
75,724 |
|
|
51,938 |
|
|
|
|
|
Inventories - owned |
|
(199,972) |
|
|
(188,759) |
|
|
|
|
|
Inventories - not owned |
|
(5,878) |
|
|
(8,165) |
|
|
|
|
|
Other assets |
|
76 |
|
|
(833) |
|
|
|
|
|
Accounts payable |
|
13,479 |
|
|
1,376 |
|
|
|
|
|
Accrued liabilities |
|
(20,189) |
|
|
(21,340) |
|
|
|
Net cash provided by (used in) operating activities |
|
(94,071) |
|
|
(117,563) |
||
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
||||
|
|
Investments in unconsolidated homebuilding joint ventures |
|
(7,639) |
|
|
(2,787) |
|||
|
|
Distributions of capital from unconsolidated joint ventures |
|
5,732 |
|
|
14,808 |
|||
|
|
Other investing activities |
|
(5,977) |
|
|
(1,735) |
|||
|
|
|
Net cash provided by (used in) investing activities |
|
(7,884) |
|
|
10,286 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
||||
|
|
Change in restricted cash |
|
(1,019) |
|
|
(5,238) |
|||
|
|
Net proceeds from (payments on) revolving credit facility |
|
15,000 |
|
|
― |
|||
|
|
Principal payments on secured project debt and other notes payable |
|
(311) |
|
|
(890) |
|||
|
|
Net proceeds from (payments on) mortgage credit facilities |
|
2,124 |
|
|
(48,370) |
|||
|
|
Repurchases of common stock |
|
(22,073) |
|
|
― |
|||
|
|
Issuance of common stock under employee stock plans |
|
(3,930) |
|
|
3,596 |
|||
|
|
Excess tax benefits from share-based payment arrangements |
|
3,369 |
|
|
― |
|||
|
|
|
Net cash provided by (used in) financing activities |
|
(6,840) |
|
|
(50,902) |
||
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
(108,795) |
|
|
(158,179) |
||||
|
Cash and equivalents at beginning of period |
|
212,393 |
|
|
363,291 |
||||
|
Cash and equivalents at end of period |
$ |
103,598 |
|
$ |
205,112 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
$ |
103,598 |
|
$ |
205,112 |
||||
|
Homebuilding restricted cash at end of period |
|
39,241 |
|
|
26,698 |
||||
|
Financial services restricted cash at end of period |
|
1,295 |
|
|
1,295 |
||||
|
Cash and equivalents and restricted cash at end of period |
$ |
144,134 |
|
$ |
233,105 |
||||
|
REGIONAL OPERATING DATA |
|||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||||||||||
|
|
|
|
|
|
2015 |
|
2014 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
292 |
|
$ |
634 |
|
|
339 |
|
$ |
624 |
|
|
(14%) |
|
|
2% |
||
|
|
|
Arizona |
|
|
57 |
|
|
322 |
|
|
63 |
|
|
305 |
|
|
(10%) |
|
|
6% |
|
|
|
|
Texas |
|
|
198 |
|
|
494 |
|
|
149 |
|
|
415 |
|
|
33% |
|
|
19% |
|
|
|
|
Colorado |
|
|
40 |
|
|
552 |
|
|
53 |
|
|
484 |
|
|
(25%) |
|
|
14% |
|
|
|
Southwest |
|
|
295 |
|
|
469 |
|
|
265 |
|
|
403 |
|
|
11% |
|
|
16% |
||
|
|
|
Florida |
|
|
201 |
|
|
414 |
|
|
235 |
|
|
350 |
|
|
(14%) |
|
|
18% |
|
|
|
|
Carolinas |
|
|
184 |
|
|
337 |
|
|
156 |
|
|
298 |
|
|
18% |
|
|
13% |
|
|
|
Southeast |
|
|
385 |
|
|
377 |
|
|
391 |
|
|
329 |
|
|
(2%) |
|
|
15% |
||
|
|
|
|
Consolidated total |
|
|
972 |
|
$ |
482 |
|
|
995 |
|
$ |
449 |
|
|
(2%) |
|
|
7% |
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||||||||||
|
|
|
|
|
|
2015 |
|
2014 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
526 |
|
$ |
688 |
|
|
473 |
|
$ |
646 |
|
|
11% |
|
|
7% |
||
|
|
|
Arizona |
|
|
95 |
|
|
346 |
|
|
67 |
|
|
305 |
|
|
42% |
|
|
13% |
|
|
|
|
Texas |
|
|
309 |
|
|
503 |
|
|
235 |
|
|
464 |
|
|
31% |
|
|
8% |
|
|
|
|
Colorado |
|
|
83 |
|
|
527 |
|
|
53 |
|
|
480 |
|
|
57% |
|
|
10% |
|
|
|
Southwest |
|
|
487 |
|
|
477 |
|
|
355 |
|
|
436 |
|
|
37% |
|
|
9% |
||
|
|
|
Florida |
|
|
313 |
|
|
469 |
|
|
283 |
|
|
395 |
|
|
11% |
|
|
19% |
|
|
|
|
Carolinas |
|
|
245 |
|
|
363 |
|
|
200 |
|
|
307 |
|
|
23% |
|
|
18% |
|
|
|
Southeast |
|
|
558 |
|
|
423 |
|
|
483 |
|
|
359 |
|
|
16% |
|
|
18% |
||
|
|
|
|
Consolidated total |
|
|
1,571 |
|
$ |
528 |
|
|
1,311 |
|
$ |
483 |
|
|
20% |
|
|
9% |
|
|
|
|
|
|
Three Months Ended March 31, |
||||
|
|
|
|
|
|
2015 |
|
2014 |
|
% Change |
|
Average number of selling communities |
|
|
|
|
|
|
|||
|
during the period: |
|
|
|
|
|
|
|||
|
|
California |
|
48 |
|
46 |
|
4% |
||
|
|
|
Arizona |
|
13 |
|
11 |
|
18% |
|
|
|
|
Texas |
|
47 |
|
35 |
|
34% |
|
|
|
|
Colorado |
|
9 |
|
10 |
|
(10%) |
|
|
|
Southwest |
|
69 |
|
56 |
|
23% |
||
|
|
|
Florida |
|
53 |
|
41 |
|
29% |
|
|
|
|
Carolinas |
|
28 |
|
31 |
|
(10%) |
|
|
|
Southeast |
|
81 |
|
72 |
|
13% |
||
|
|
|
|
Consolidated total |
|
198 |
|
174 |
|
14% |
|
|
|
|
|
|
At March 31, |
||||||||||||||||
|
|
|
|
|
|
2015 |
|
2014 |
|
% Change |
||||||||||||
|
|
|
|
|
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
||||||
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
California |
|
|
532 |
|
$ |
408,967 |
|
|
530 |
|
$ |
360,371 |
|
|
0% |
|
|
13% |
||
|
|
|
Arizona |
|
|
134 |
|
|
48,814 |
|
|
109 |
|
|
38,032 |
|
|
23% |
|
|
28% |
|
|
|
|
Texas |
|
|
582 |
|
|
306,326 |
|
|
376 |
|
|
184,452 |
|
|
55% |
|
|
66% |
|
|
|
|
Colorado |
|
|
118 |
|
|
67,576 |
|
|
108 |
|
|
55,930 |
|
|
9% |
|
|
21% |
|
|
|
Southwest |
|
|
834 |
|
|
422,716 |
|
|
593 |
|
|
278,414 |
|
|
41% |
|
|
52% |
||
|
|
|
Florida |
|
|
563 |
|
|
320,119 |
|
|
552 |
|
|
248,543 |
|
|
2% |
|
|
29% |
|
|
|
|
Carolinas |
|
|
381 |
|
|
141,470 |
|
|
341 |
|
|
114,057 |
|
|
12% |
|
|
24% |
|
|
|
Southeast |
|
|
944 |
|
|
461,589 |
|
|
893 |
|
|
362,600 |
|
|
6% |
|
|
27% |
||
|
|
|
|
Consolidated total |
|
|
2,310 |
|
$ |
1,293,272 |
|
|
2,016 |
|
$ |
1,001,385 |
|
|
15% |
|
|
29% |
|
|
|
|
|
|
At March 31, |
||||
|
|
|
|
|
|
2015 |
|
2014 |
|
% Change |
|
Homesites owned and controlled: |
|
|
|
|
|
|
|||
|
|
California |
|
9,880 |
|
9,545 |
|
4% |
||
|
|
|
Arizona |
|
2,041 |
|
2,302 |
|
(11%) |
|
|
|
|
Texas |
|
4,640 |
|
4,555 |
|
2% |
|
|
|
|
Colorado |
|
1,047 |
|
1,254 |
|
(17%) |
|
|
|
|
Nevada |
|
1,124 |
|
1,124 |
|
― |
|
|
|
Southwest |
|
8,852 |
|
9,235 |
|
(4%) |
||
|
|
|
Florida |
|
12,372 |
|
12,257 |
|
1% |
|
|
|
|
Carolinas |
|
4,079 |
|
4,678 |
|
(13%) |
|
|
|
Southeast |
|
16,451 |
|
16,935 |
|
(3%) |
||
|
|
|
Total (including joint ventures) |
|
35,183 |
|
35,715 |
|
(1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
|
29,184 |
|
28,743 |
|
2% |
||
|
|
Homesites optioned or subject to contract |
|
5,801 |
|
6,707 |
|
(14%) |
||
|
|
Joint venture homesites |
|
198 |
|
265 |
|
(25%) |
||
|
|
|
Total (including joint ventures) |
|
35,183 |
|
35,715 |
|
(1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|
|||
|
|
Raw lots |
|
8,221 |
|
6,892 |
|
19% |
||
|
|
Homesites under development |
|
7,659 |
|
9,811 |
|
(22%) |
||
|
|
Finished homesites |
|
7,654 |
|
6,341 |
|
21% |
||
|
|
Under construction or completed homes |
|
3,428 |
|
3,198 |
|
7% |
||
|
|
Held for sale |
|
2,222 |
|
2,501 |
|
(11%) |
||
|
|
|
Total |
|
29,184 |
|
28,743 |
|
2% |
|
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 |
|||||||||||||
|
|
March 31, |
|
Gross |
|
March 31, |
|
Gross |
|
December 31, |
|
Gross |
|||
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sale revenues |
$ |
468,379 |
|
|
|
$ |
446,918 |
|
|
|
$ |
724,342 |
|
|
|
Less: Cost of home sales |
|
(354,817) |
|
|
|
|
(328,245) |
|
|
|
|
(541,615) |
|
|
|
Gross margin from home sales |
|
113,562 |
|
24.2% |
|
|
118,673 |
|
26.6% |
|
|
182,727 |
|
25.2% |
|
Add: Capitalized interest included in cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of home sales |
|
22,395 |
|
4.8% |
|
|
24,368 |
|
5.4% |
|
|
36,370 |
|
5.0% |
|
Adjusted gross margin from home sales, excluding interest amortized to cost of home sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
135,957 |
|
29.0% |
|
$ |
143,041 |
|
32.0% |
|
$ |
219,097 |
|
30.2% |
|
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.
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|||||||||
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total consolidated debt |
$ |
2,243,144 |
|
$ |
2,225,495 |
|
$ |
1,892,491 |
||||||||
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
|
|
Financial services indebtedness |
|
(91,537) |
|
|
(89,413) |
|
|
(52,497) |
|||||||
|
|
Homebuilding cash |
|
(120,167) |
|
|
(218,650) |
|
|
(221,400) |
|||||||
|
Adjusted net homebuilding debt |
|
2,031,440 |
|
|
1,917,432 |
|
|
1,618,594 |
||||||||
|
Stockholders' equity |
|
1,688,355 |
|
|
1,676,688 |
|
|
1,513,087 |
||||||||
|
Total adjusted book capitalization |
$ |
3,719,795 |
|
$ |
3,594,120 |
|
$ |
3,131,681 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total consolidated debt to book capitalization |
|
57.1% |
|
|
57.0% |
|
|
55.6% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted net homebuilding debt to total adjusted book capitalization |
|
54.6% |
|
|
53.3% |
|
|
51.7% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Homebuilding debt |
$ |
2,151,607 |
|
$ |
2,136,082 |
|
$ |
1,839,994 |
||||||||
|
LTM adjusted homebuilding EBITDA |
$ |
465,453 |
|
$ |
480,004 |
|
$ |
408,806 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Homebuilding debt to adjusted homebuilding EBITDA |
|
4.6x |
|
|
4.5x |
|
|
4.5x |
||||||||
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.
|
|
March 31, |
|
December 31, |
||
|
|
2015 |
|
2014 |
||
|
|
|
|
|
|
|
|
Actual common shares outstanding |
|
274,390,765 |
|
|
275,141,189 |
|
Add: Conversion of preferred shares to common shares |
|
87,812,786 |
|
|
87,812,786 |
|
Pro forma common shares outstanding |
|
362,203,551 |
|
|
362,953,975 |
|
|
|
|
|
|
|
|
Stockholders' equity (Dollars in thousands) |
$ |
1,688,355 |
|
$ |
1,676,688 |
|
Divided by pro forma common shares outstanding |
÷ |
362,203,551 |
|
÷ |
362,953,975 |
|
Adjusted stockholders' equity per common share |
$ |
4.66 |
|
$ |
4.62 |
The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (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 subsidiaries. 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 March 31, |
|||||||||||
|
|
|
|
March 31, |
|
March 31, |
|
December 31, |
|
2015 |
|
2014 |
|||||
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
31,605 |
|
$ |
38,159 |
|
$ |
64,644 |
|
$ |
209,311 |
|
$ |
205,050 |
||
|
|
Provision for income taxes |
|
16,891 |
|
|
23,456 |
|
|
39,738 |
|
|
127,534 |
|
|
78,870 |
|
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
22,638 |
|
|
24,983 |
|
|
39,354 |
|
|
120,767 |
|
|
118,876 |
|
|
|
Homebuilding depreciation and amortization |
|
1,385 |
|
|
1,145 |
|
|
1,206 |
|
|
5,030 |
|
|
3,972 |
|
|
|
Amortization of stock-based compensation |
|
2,695 |
|
|
2,372 |
|
|
733 |
|
|
8,792 |
|
|
9,856 |
|
|
EBITDA |
|
75,214 |
|
|
90,115 |
|
|
145,675 |
|
|
471,434 |
|
|
416,624 |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash distributions of income from unconsolidated joint ventures |
|
― |
|
|
― |
|
|
― |
|
|
1,875 |
|
|
1,500 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
(451) |
|
|
(437) |
|
|
(326) |
|
|
(682) |
|
|
(622) |
|
|
|
Income from financial services subsidiaries |
|
1,208 |
|
|
1,544 |
|
|
2,472 |
|
|
8,538 |
|
|
9,940 |
|
|
Adjusted Homebuilding EBITDA |
$ |
74,457 |
|
$ |
89,008 |
|
$ |
143,529 |
|
$ |
465,453 |
|
$ |
408,806 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
470,278 |
|
$ |
460,199 |
|
$ |
753,644 |
|
$ |
2,421,257 |
|
$ |
2,017,087 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
15.8% |
|
|
19.3% |
|
|
19.0% |
|
|
19.2% |
|
|
20.3% |
||
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 March 31, |
|||||||||||
|
|
|
|
|
March 31, |
|
March 31, |
|
December 31, |
|
2015 |
|
2014 |
|||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
(94,071) |
|
$ |
(117,563) |
|
$ |
(103,851) |
|
$ |
(338,905) |
|
$ |
(213,318) |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Provision for income taxes |
|
16,891 |
|
|
23,456 |
|
|
39,738 |
|
|
127,534 |
|
|
78,870 |
||
|
|
Deferred income tax provision |
|
|
(16,874) |
|
|
(23,622) |
|
|
(4,524) |
|
|
(92,250) |
|
|
(94,462) |
|
|
|
Homebuilding interest amortized to cost of sales and interest expense |
|
|
22,638 |
|
|
24,983 |
|
|
39,354 |
|
|
120,767 |
|
|
118,876 |
|
|
|
Excess tax benefits from share-based payment arrangements |
|
|
3,369 |
|
|
― |
|
|
12,444 |
|
|
16,773 |
|
|
― |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Income from financial services subsidiaries |
|
1,208 |
|
|
1,544 |
|
|
2,472 |
|
|
8,538 |
|
|
9,940 |
||
|
|
Depreciation and amortization from financial services subsidiaries |
|
|
37 |
|
|
33 |
|
|
36 |
|
|
142 |
|
|
126 |
|
|
|
Loss on disposal of property and equipment |
|
19 |
|
|
1 |
|
|
5 |
|
|
29 |
|
|
3 |
||
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Trade and other receivables |
|
7,008 |
|
|
17,549 |
|
|
(11,820) |
|
|
(5,764) |
|
|
11,877 |
|
|
|
|
Mortgage loans held for sale |
|
|
(75,724) |
|
|
(51,938) |
|
|
105,946 |
|
|
29,052 |
|
|
(49,255) |
|
|
|
Inventories-owned |
|
199,972 |
|
|
188,759 |
|
|
94,418 |
|
|
653,221 |
|
|
531,041 |
|
|
|
|
Inventories-not owned |
|
|
5,878 |
|
|
8,165 |
|
|
13,143 |
|
|
30,740 |
|
|
46,544 |
|
|
|
Other assets |
|
(76) |
|
|
833 |
|
|
(7,354) |
|
|
(10,215) |
|
|
1,697 |
|
|
|
|
Accounts payable |
|
|
(13,479) |
|
|
(1,376) |
|
|
5,439 |
|
|
(21,417) |
|
|
(16,279) |
|
|
|
Accrued liabilities |
|
20,189 |
|
|
21,340 |
|
|
(36,891) |
|
|
(35,374) |
|
|
3,284 |
|
|
Adjusted Homebuilding EBITDA |
|
$ |
74,457 |
|
$ |
89,008 |
|
$ |
143,529 |
|
$ |
465,453 |
|
$ |
408,806 |
||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/standard-pacific-corp-reports-2015-first-quarter-results-300075393.html
SOURCE Standard Pacific Corp.