IRVINE, Calif., July 28, 2016 /PRNewswire/ -- CalAtlantic Group, Inc. (NYSE: CAA) today announced results for the second quarter ended June 30, 2016.
Larry Nicholson, President and Chief Executive Officer of CalAtlantic Group, Inc. commented, "The CalAtlantic team delivered a strong second quarter, with home sales revenue up 17% and adjusted pretax income up 22%*, compared to the pro forma prior year period. In addition, our SG&A percentage reached a second quarter decade low 10.6% that, when combined with our 21.9% gross margin, delivered an operating margin of 11.2% and EPS of $0.83." Nicholson continued, "It is gratifying to see the benefits we anticipated from our October 2015 merger showing up in our results."
2016 CalAtlantic Second Quarter Highlights and Comparisons to 2015 Second Quarter
2016 second quarter results are for the combined company and include merger costs and the impact of purchase accounting. The 2015 second quarter includes only the stand-alone results of Standard Pacific.
2016 CalAtlantic Second Quarter Highlights and Comparisons to Pro Forma 2015 CalAtlantic Second Quarter
To aid analysts and other investors with year-over-year comparability for the entire merged business, we provide the below pro forma information. This pro forma information is a combination of stand-alone second quarter 2015 Standard Pacific and Ryland financial and operating data compared to actual 2016 CalAtlantic second quarter results. Such pro forma data was not prepared to comply with Regulation S-X of the SEC Rules and Regulations.
Orders. Net new orders for the 2016 second quarter were down 1% from the pro forma 2015 second quarter, to 3,921 homes, with the dollar value of these orders up 5%, and the Company's monthly sales absorption rate was 2.3 per community for the 2016 second quarter, down 5% from both the pro forma 2015 second quarter and the 2016 first quarter, consistent with normal seasonal patterns. The Company's cancellation rate for the 2016 second quarter was 15%, flat compared to the pro forma 2015 second quarter and up from 12% for the 2016 first quarter.
Backlog. The dollar value of homes in backlog increased 19% to $3.4 billion, or 7,456 homes, compared to $2.9 billion, or 6,688 homes, for the pro forma 2015 second quarter, and increased 7% compared to $3.2 billion, or 7,019 homes, for the 2016 first quarter. The increase in pro forma year-over-year backlog value was driven primarily by our continued growth in community count and a 6% increase in the average selling price of the homes in backlog on a pro forma basis, reflecting product mix, geographic mix and continued pricing power in many of our markets.
Revenue. Revenues from home sales for the 2016 second quarter increased 17%, to $1.6 billion, as compared to the pro forma 2015 second quarter, resulting from a 12% increase on a pro forma basis in new home deliveries and a 5% increase on a pro forma basis in the Company's average home price to $447 thousand. The increase in average home price was primarily attributable to product mix and general price increases within select markets.
Gross Margin. Excluding the impact of purchasing accounting, the Company achieved adjusted gross margin from home sales of 22.2%* for the 2016 second quarter. Unadjusted, the gross margin from homes sales was 21.9%. The unadjusted second quarter gross margin was adversely impacted by the required fair value adjustment to homes in backlog, speculative homes and models under construction acquired from Ryland in the merger, of which $5.9 million was recognized as an increase to cost of sales during the quarter.
SG&A Expenses. Selling, general and administrative expenses for the 2016 second quarter were $165.7 million, or 10.6%, as compared to $79.9 million, or 11.5%, for the 2015 second quarter. This 90 basis point improvement was primarily the result of a 124% increase in home sale revenues and the operating leverage gained in connection with the merger.
Land. During the 2016 second quarter, the Company spent $394.8 million on land purchases and development costs, compared to $418.9 million for the pro forma 2015 second quarter. The Company purchased $237.9 million of land, consisting of 3,348 homesites, of which 32% (based on homesites) is located in the North region, 20% in the Southeast region, 19% in the Southwest region, and 29% in the West region. As of June 30, 2016, the Company owned or controlled 67,741 homesites, of which 44,980 were owned and actively selling or under development, 16,794 were controlled or under option, and the remaining 5,967 homesites were held for future development or for sale.
Liquidity. The Company ended the quarter with $892.6 million of available liquidity, including $256.0 million of unrestricted homebuilding cash and $636.6 million available to borrow under its $750 million revolving credit facility. The Company's homebuilding debt to book capitalization as of June 30, 2016 and 2015 was 47.9% and 55.3%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 45.9%* and 53.9%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending June 30, 2016 and 2015 was 4.4x* and 4.4x*, respectively.
Bond Offering. During the 2016 second quarter, the Company raised $300 million in proceeds from the issuance of 5.25% Senior Notes due 2026. A portion of the proceeds were initially used to pay down the outstanding balance of the Company's revolving credit facility and will ultimately be used to repay or repurchase the Company's $280 million senior notes which mature in September 2016.
Share Repurchase Program. The Company's Board of Directors has authorized the repurchase of up to $500 million of the Company's common stock. This authorization replaces the previous February 2016 $200 million authorization. The Company's share repurchases may be made, from time to time, on the open market or otherwise. The amount of any shares purchased and the timing of the purchases will be subject to general business conditions and other factors. The share repurchase authorization will continue in effect until terminated by the Board of Directors. The Company intends to retire the repurchased shares.
Earnings Conference Call
A conference call to discuss the Company's 2016 second quarter results will be held at 11:00 a.m. Eastern time July 29, 2016. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://investors.calatlantichomes.com. The call will also be accessible via telephone by dialing (877) 780-3379 (domestic) or (719) 325-2100 (international); Passcode: 5476851. 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: 5476851.
About CalAtlantic Group, Inc.
CalAtlantic Group, Inc. (NYSE: CAA), a combination of Standard Pacific Corp. and Ryland Group, Inc., two of the nation's largest and most respected homebuilders, offers well-crafted homes in thoughtfully designed communities that meet the desires of customers across the homebuilding spectrum, from entry level to luxury, in 41 Metropolitan Statistical Areas spanning 17 states. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design earned over its 50 year history, CalAtlantic Group, Inc. utilizes its over five decades of land acquisition, development and homebuilding expertise to acquire and build desirable communities in locations that meet the high expectations of the company's homebuyers. We invite you to learn more about us by visiting www.calatlantichomes.com.
The pro forma results presented above are not necessarily indicative of how the Company would have performed if Ryland and Standard Pacific were combined for the first six months of 2015 and are not necessarily indicative of the combined Company's future performance. This news release and the referenced earnings conference call contain forward-looking statements. These statements include but are not limited to statements regarding the integration of the operations of Standard Pacific and Ryland, the future success of those combined operations; 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; our liquidity; the repayment of our September 2016 senior notes; and the amount and timing of share repurchases. 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, 2015 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 (240) 532-3888, jeff.mccall@calatl.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 |
|
|||||||||||
|
|
|
|
June 30, |
|
June 30, |
|
Percentage |
|
March 31, |
|
Percentage |
|
|||
|
|
|
|
2016 |
|
2015 |
|
or % Change |
|
2016 |
|
or % Change |
|
|||
|
Select Operating Data |
(Dollars in thousands) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
3,484 |
|
|
1,305 |
|
167% |
|
|
2,727 |
|
28% |
|
||
|
Average selling price |
$ |
447 |
|
$ |
532 |
|
(16%) |
|
$ |
432 |
|
3% |
|
||
|
Home sale revenues |
$ |
1,558,701 |
|
$ |
694,678 |
|
124% |
|
$ |
1,179,165 |
|
32% |
|
||
|
Gross margin % (including land sales) |
|
21.6% |
|
|
24.6% |
|
(3.0%) |
|
|
20.8% |
|
0.8% |
|
||
|
Gross margin % from home sales |
|
21.9% |
|
|
24.6% |
|
(2.7%) |
|
|
21.0% |
|
0.9% |
|
||
|
Adjusted gross margin % from home sales (excluding purchase a ccounting adjustments included in cost of home sales)* |
|
22.2% |
|
|
24.6% |
|
(2.4%) |
|
|
22.0% |
|
0.2% |
|
||
|
Adjusted gross margin % from home sales (excluding purchase accounting adjustments and interest amortized to cost of home sales)* |
|
24.8% |
|
|
29.6% |
|
(4.8%) |
|
|
24.6% |
|
0.2% |
|
||
|
Incentive and stock-based compensation expense |
$ |
17,275 |
|
$ |
6,520 |
|
165% |
|
$ |
10,270 |
|
68% |
|
||
|
Selling expenses |
$ |
81,396 |
|
$ |
35,873 |
|
127% |
|
$ |
63,060 |
|
29% |
|
||
|
G&A expenses (excluding incentive and stock-based compensation expenses) |
$ |
67,023 |
|
$ |
37,517 |
|
79% |
|
$ |
63,371 |
|
6% |
|
||
|
SG&A expenses |
$ |
165,694 |
|
$ |
79,910 |
|
107% |
|
$ |
136,701 |
|
21% |
|
||
|
SG&A % from home sales |
|
10.6% |
|
|
11.5% |
|
(0.9%) |
|
|
11.6% |
|
(1.0%) |
|
||
|
Operating margin from home sales |
$ |
175,214 |
|
$ |
90,835 |
|
93% |
|
$ |
110,336 |
|
59% |
|
||
|
Operating margin % from home sales |
|
11.2% |
|
|
13.1% |
|
(1.9%) |
|
|
9.4% |
|
1.8% |
|
||
|
Adjusted operating margin from home sales* |
$ |
181,072 |
|
$ |
90,835 |
|
99% |
|
$ |
123,013 |
|
47% |
|
||
|
Adjusted operating margin % from home sales* |
|
11.6% |
|
|
13.1% |
|
(1.5%) |
|
|
10.4% |
|
1.2% |
|
||
|
Net new orders |
|
3,921 |
|
|
1,567 |
|
150% |
|
|
4,135 |
|
(5%) |
|
||
|
Net new orders (dollar value) |
$ |
1,749,217 |
|
$ |
857,747 |
|
104% |
|
$ |
1,798,050 |
|
(3%) |
|
||
|
Average active selling communities |
|
567 |
|
|
203 |
|
179% |
|
|
571 |
|
(1%) |
|
||
|
Monthly sales absorption rate per community |
|
2.3 |
|
|
2.6 |
|
(10%) |
|
|
2.4 |
|
(5%) |
|
||
|
Cancellation rate |
|
15% |
|
|
15% |
|
― |
|
|
12% |
|
3% |
|
||
|
Gross cancellations |
|
711 |
|
|
268 |
|
165% |
|
|
571 |
|
25% |
|
||
|
Backlog (homes) |
|
7,456 |
|
|
2,572 |
|
190% |
|
|
7,019 |
|
6% |
|
||
|
Backlog (dollar value) |
$ |
3,428,713 |
|
$ |
1,484,544 |
|
131% |
|
$ |
3,212,079 |
|
7% |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land purchases (incl. seller financing) |
$ |
237,925 |
|
$ |
98,627 |
|
141% |
|
$ |
215,419 |
|
10% |
|
||
|
Adjusted Homebuilding EBITDA* |
$ |
243,048 |
|
$ |
140,728 |
|
73% |
|
$ |
171,230 |
|
42% |
|
||
|
Adjusted Homebuilding EBITDA Margin %* |
|
15.4% |
|
|
20.1% |
|
(4.7%) |
|
|
14.4% |
|
1.0% |
|
||
|
Homebuilding interest incurred |
$ |
55,610 |
|
$ |
41,857 |
|
33% |
|
$ |
62,725 |
|
(11%) |
|
||
|
Homebuilding interest capitalized to inventories owned |
$ |
54,564 |
|
$ |
41,508 |
|
31% |
|
$ |
61,845 |
|
(12%) |
|
||
|
Homebuilding interest capitalized to investments in JVs |
$ |
1,046 |
|
$ |
349 |
|
200% |
|
$ |
880 |
|
19% |
|
||
|
Interest amortized to cost of sales (incl. cost of land sales) |
$ |
41,830 |
|
$ |
36,563 |
|
14% |
|
$ |
30,382 |
|
38% |
|
||
|
|
|
|
As of |
||||||
|
|
|
|
June 30, |
|
December 31, |
|
Percentage |
||
|
|
|
|
2016 |
|
2015 |
|
or % Change |
||
|
Select Balance Sheet Data |
(Dollars in thousands, except per share amounts) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
$ |
286,840 |
|
$ |
187,066 |
|
53% |
||
|
Inventories owned |
$ |
6,421,737 |
|
$ |
6,069,959 |
|
6% |
||
|
Goodwill |
$ |
969,048 |
|
$ |
933,360 |
|
4% |
||
|
Homesites owned and controlled |
|
67,741 |
|
|
70,494 |
|
(4%) |
||
|
Homes under construction |
|
7,338 |
|
|
6,081 |
|
21% |
||
|
Completed specs |
|
957 |
|
|
1,325 |
|
(28%) |
||
|
Homebuilding debt |
$ |
3,715,698 |
|
$ |
3,487,699 |
|
7% |
||
|
Stockholders' equity |
$ |
4,039,955 |
|
$ |
3,861,436 |
|
5% |
||
|
Stockholders' equity per share |
$ |
34.12 |
|
$ |
31.84 |
|
7% |
||
|
Total consolidated debt to book capitalization |
|
49.1% |
|
|
49.5% |
|
(0.4%) |
||
|
Adjusted net homebuilding debt to total adjusted book capitalization* |
|
45.9% |
|
|
46.1% |
|
(0.2%) |
||
PRO FORMA KEY STATISTICS AND FINANCIAL DATA1
As of or For the Three Months Ended
Actual
Pro Forma
Percentage
Actual
Percentage
2016
2015
or % Change
2016
or % Change
Select Operating Data
(Dollars in thousands)
Deliveries
3,484
3,119
12%
2,727
28%
Average selling price
$
447
$
427
5%
$
432
3%
Home sale revenues
$
1,558,701
$
1,331,079
*
17%
$
1,179,165
32%
Pretax income
$
179,617
$
156,066
*
15%
$
115,204
56%
Pretax income (excluding purchase accounting adjustments included in cost of home sales and merger costs)*
$
190,480
$
156,066
22%
$
132,725
44%
Net new orders
3,921
3,954
(1%)
4,135
(5%)
Net new orders (dollar value)
$
1,749,217
$
1,670,731
5%
$
1,798,050
(3%)
Average active selling communities
567
546
4%
571
(1%)
Monthly sales absorption rate per community
2.3
2.4
(5%)
2.4
(5%)
Cancellation rate
15%
15%
―
12%
3%
Gross cancellations
711
704
1%
571
25%
Backlog (homes)
7,456
6,688
11%
7,019
6%
Backlog (dollar value)
$
3,428,713
$
2,891,927
19%
$
3,212,079
7%
Land purchases (incl. seller financing)
$
237,925
$
250,860
(5%)
$
215,419
10%
June 30,
June 30,
March 31,
|
|
|
|
|
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 June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
||||
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
||||||||||
|
|
|
|
|
(Unaudited) |
|
||||||||||
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Home sale revenues |
$ |
1,558,701 |
|
$ |
694,678 |
|
$ |
2,737,866 |
|
$ |
1,163,057 |
|
||
|
|
Land sale revenues |
|
19,661 |
|
|
4,954 |
|
|
26,179 |
|
|
6,853 |
|
||
|
|
|
Total revenues |
|
1,578,362 |
|
|
699,632 |
|
|
2,764,045 |
|
|
1,169,910 |
|
|
|
|
Cost of home sales |
|
(1,217,793) |
|
|
(523,933) |
|
|
(2,149,921) |
|
|
(878,750) |
|
||
|
|
Cost of land sales |
|
(19,212) |
|
|
(3,758) |
|
|
(25,579) |
|
|
(5,114) |
|
||
|
|
|
Total cost of sales |
|
(1,237,005) |
|
|
(527,691) |
|
|
(2,175,500) |
|
|
(883,864) |
|
|
|
|
|
|
Gross margin |
|
341,357 |
|
|
171,941 |
|
|
588,545 |
|
|
286,046 |
|
|
|
|
|
Gross margin % |
|
21.6% |
|
|
24.6% |
|
|
21.3% |
|
|
24.5% |
|
|
|
Selling, general and administrative expenses |
|
(165,694) |
|
|
(79,910) |
|
|
(302,395) |
|
|
(145,980) |
|
||
|
|
Income (loss) from unconsolidated joint ventures |
|
223 |
|
|
(51) |
|
|
1,412 |
|
|
(502) |
|
||
|
|
Other income (expense) |
|
(4,415) |
|
|
(5,276) |
|
|
(7,823) |
|
|
(5,572) |
|
||
|
|
|
|
Homebuilding pretax income |
|
171,471 |
|
|
86,704 |
|
|
279,739 |
|
|
133,992 |
|
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Revenues |
|
20,539 |
|
|
7,411 |
|
|
38,091 |
|
|
12,804 |
|
||
|
|
Expenses |
|
(12,393) |
|
|
(4,593) |
|
|
(23,009) |
|
|
(8,778) |
|
||
|
|
|
|
Financial services pretax income |
|
8,146 |
|
|
2,818 |
|
|
15,082 |
|
|
4,026 |
|
|
Income before taxes |
|
179,617 |
|
|
89,522 |
|
|
294,821 |
|
|
138,018 |
|
|||
|
Provision for income taxes |
|
(66,857) |
|
|
(32,324) |
|
|
(109,400) |
|
|
(49,215) |
|
|||
|
Net income |
|
112,760 |
|
|
57,198 |
|
|
185,421 |
|
|
88,803 |
|
|||
|
Less: Net income allocated to preferred shareholder |
|
― |
|
|
(13,798) |
|
|
― |
|
|
(21,475) |
|
|||
|
Less: Net income allocated to unvested restricted stock |
|
(251) |
|
|
(112) |
|
|
(350) |
|
|
(181) |
|
|||
|
Net income available to common stockholders |
$ |
112,509 |
|
$ |
43,288 |
|
$ |
185,071 |
|
$ |
67,147 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
$ |
0.95 |
|
$ |
0.79 |
|
$ |
1.55 |
|
$ |
1.22 |
|
|
|
|
Diluted |
$ |
0.83 |
|
$ |
0.72 |
|
$ |
1.36 |
|
$ |
1.12 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
|
118,419,937 |
|
|
55,099,690 |
|
|
119,617,438 |
|
|
54,914,435 |
|
|
|
|
Diluted |
|
136,088,146 |
|
|
62,110,779 |
|
|
137,277,899 |
|
|
62,081,531 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average additional common shares outstanding if preferred shares converted to common shares |
|
― |
|
|
17,562,557 |
|
|
― |
|
|
17,562,557 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted average diluted common shares outstanding if preferred shares converted to common shares |
|
136,088,146 |
|
|
79,673,336 |
|
|
137,277,899 |
|
|
79,644,088 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends Per Common Share |
$ |
0.04 |
|
$ |
― |
|
$ |
0.08 |
|
$ |
― |
|
|||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
|
|
||||||||||
|
|
|
|
|
|
|
June 30, |
|
December 31, |
||
|
|
|
|
|
|
|
2016 |
|
2015 |
||
|
|
|
|
|
|
|
(Dollars in thousands) |
||||
|
ASSETS |
(Unaudited) |
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
$ |
256,007 |
|
$ |
151,076 |
||||
|
|
Restricted cash |
|
|
30,833 |
|
|
35,990 |
|||
|
|
Inventories: |
|
|
|
|
|
|
|
||
|
|
|
Owned |
|
|
|
6,421,737 |
|
|
6,069,959 |
|
|
|
|
Not owned |
|
|
81,603 |
|
|
83,246 |
||
|
|
Investments in unconsolidated joint ventures |
|
147,631 |
|
|
132,763 |
||||
|
|
Deferred income taxes, net |
|
337,538 |
|
|
396,194 |
||||
|
|
Goodwill |
|
|
|
969,048 |
|
|
933,360 |
||
|
|
Other assets |
|
|
|
117,484 |
|
|
118,768 |
||
|
|
|
|
Total Homebuilding Assets |
|
8,361,881 |
|
|
7,921,356 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Cash and equivalents |
|
31,863 |
|
|
35,518 |
||||
|
|
Restricted cash |
|
|
22,008 |
|
|
22,914 |
|||
|
|
Mortgage loans held for sale, net |
|
188,977 |
|
|
325,770 |
||||
|
|
Mortgage loans held for investment, net |
|
25,394 |
|
|
22,704 |
||||
|
|
Other assets |
|
|
|
19,854 |
|
|
17,243 |
||
|
|
|
|
Total Financial Services Assets |
|
288,096 |
|
|
424,149 |
||
|
|
|
|
|
Total Assets |
$ |
8,649,977 |
|
$ |
8,345,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|||||
|
Homebuilding: |
|
|
|
|
|
|||||
|
|
Accounts payable |
|
$ |
215,761 |
|
$ |
191,681 |
|||
|
|
Accrued liabilities |
|
|
477,950 |
|
|
478,793 |
|||
|
|
Secured project debt and other notes payable |
|
41,139 |
|
|
25,683 |
||||
|
|
Senior notes payable |
|
3,674,559 |
|
|
3,462,016 |
||||
|
|
|
|
Total Homebuilding Liabilities |
|
4,409,409 |
|
|
4,158,173 |
||
|
Financial Services: |
|
|
|
|
|
|||||
|
|
Accounts payable and other liabilities |
|
26,099 |
|
|
22,474 |
||||
|
|
Mortgage credit facilities |
|
174,514 |
|
|
303,422 |
||||
|
|
|
|
Total Financial Services Liabilities |
|
200,613 |
|
|
325,896 |
||
|
|
|
|
|
Total Liabilities |
|
4,610,022 |
|
|
4,484,069 |
|
|
Equity: |
|
|
|
|
|
|||||
|
|
Stockholders' Equity: |
|
|
|
|
|
||||
|
|
|
Preferred stock |
|
― |
|
|
― |
|||
|
|
|
Common stock |
|
1,184 |
|
|
1,213 |
|||
|
|
|
Additional paid-in capital |
|
3,326,943 |
|
|
3,324,328 |
|||
|
|
|
Accumulated earnings |
|
711,784 |
|
|
535,890 |
|||
|
|
|
Accumulated other comprehensive income, net of tax |
|
44 |
|
|
5 |
|||
|
|
|
|
Total Equity |
|
4,039,955 |
|
|
3,861,436 |
||
|
|
|
|
|
Total Liabilities and Equity |
$ |
8,649,977 |
|
$ |
8,345,505 |
|
|
INVENTORIES |
||||
|
|
|
June 30, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
|
|
(Dollars in thousands) |
||
|
Inventories Owned: |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Land and land under development |
|
$ 3,440,809 |
|
$ 3,546,289 |
|
Homes completed and under construction |
|
2,468,011 |
|
2,039,597 |
|
Model homes |
|
512,917 |
|
484,073 |
|
Total inventories owned |
|
$ 6,421,737 |
|
$ 6,069,959 |
|
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
|
|
North |
|
$ 821,897 |
|
$ 703,651 |
|
Southeast |
|
1,834,044 |
|
1,753,301 |
|
Southwest |
|
1,422,325 |
|
1,400,524 |
|
West |
|
2,343,471 |
|
2,212,483 |
|
Total inventories owned |
|
$ 6,421,737 |
|
$ 6,069,959 |
REGIONAL OPERATING DATA
During the 2015 third quarter, in connection with the transition planning related to the merger, the Company began evaluating the business and allocating resources based on the post-merger homebuilding operating segments of CalAtlantic. The Company's homebuilding operating segments are grouped into four reportable segments: North (Baltimore, Chicago, Delaware, Indianapolis, Metro Washington, D.C., Minneapolis/St. Paul, New Jersey, Northern Virginia, Philadelphia and Atlanta); Southeast (Florida and the Carolinas); Southwest (Texas, Colorado and Nevada) and West (California and Arizona). All prior periods have been restated to conform to CalAtlantic's new presentation.
|
|
|
|
|
|
Three Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
711 |
|
$ |
339 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
|
||
|
|
Southeast |
|
|
983 |
|
|
392 |
|
|
476 |
|
|
414 |
|
|
107% |
|
|
(5%) |
|
||
|
|
Southwest |
|
|
1,003 |
|
|
432 |
|
|
338 |
|
|
538 |
|
|
197% |
|
|
(20%) |
|
||
|
|
West |
|
|
787 |
|
|
634 |
|
|
491 |
|
|
643 |
|
|
60% |
|
|
(1%) |
|
||
|
|
|
|
Consolidated total |
|
|
3,484 |
|
$ |
447 |
|
|
1,305 |
|
$ |
532 |
|
|
167% |
|
|
(16%) |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,272 |
|
$ |
336 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
|
||
|
|
Southeast |
|
|
1,696 |
|
|
391 |
|
|
861 |
|
|
398 |
|
|
97% |
|
|
(2%) |
|
||
|
|
Southwest |
|
|
1,857 |
|
|
418 |
|
|
576 |
|
|
524 |
|
|
222% |
|
|
(20%) |
|
||
|
|
West |
|
|
1,386 |
|
|
629 |
|
|
840 |
|
|
618 |
|
|
65% |
|
|
2% |
|
||
|
|
|
|
Consolidated total |
|
|
6,211 |
|
$ |
441 |
|
|
2,277 |
|
$ |
511 |
|
|
173% |
|
|
(14%) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
933 |
|
$ |
331 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
|
||
|
|
Southeast |
|
|
1,112 |
|
|
377 |
|
|
524 |
|
|
446 |
|
|
112% |
|
|
(15%) |
|
||
|
|
Southwest |
|
|
945 |
|
|
431 |
|
|
406 |
|
|
509 |
|
|
133% |
|
|
(15%) |
|
||
|
|
West |
|
|
931 |
|
|
659 |
|
|
637 |
|
|
655 |
|
|
46% |
|
|
1% |
|
||
|
|
|
|
Consolidated total |
|
|
3,921 |
|
$ |
446 |
|
|
1,567 |
|
$ |
547 |
|
|
150% |
|
|
(18%) |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,824 |
|
$ |
331 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
|
||
|
|
Southeast |
|
|
2,313 |
|
|
374 |
|
|
1,082 |
|
|
434 |
|
|
114% |
|
|
(14%) |
|
||
|
|
Southwest |
|
|
2,076 |
|
|
429 |
|
|
798 |
|
|
509 |
|
|
160% |
|
|
(16%) |
|
||
|
|
West |
|
|
1,843 |
|
|
645 |
|
|
1,258 |
|
|
646 |
|
|
47% |
|
|
(0%) |
|
||
|
|
|
|
Consolidated total |
|
|
8,056 |
|
$ |
440 |
|
|
3,138 |
|
$ |
538 |
|
|
157% |
|
|
(18%) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
2016 |
|
2015 |
|
% Change |
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
126 |
|
n/a |
|
n/a |
|
121 |
|
n/a |
|
n/a |
||
|
|
Southeast |
|
179 |
|
88 |
|
103% |
|
180 |
|
85 |
|
112% |
||
|
|
Southwest |
|
169 |
|
55 |
|
207% |
|
172 |
|
55 |
|
213% |
||
|
|
West |
|
93 |
|
60 |
|
55% |
|
94 |
|
60 |
|
57% |
||
|
|
|
|
Consolidated total |
|
567 |
|
203 |
|
179% |
|
567 |
|
200 |
|
184% |
|
|
|
|
|
|
At June 30, |
|
||||||||||||||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,555 |
|
$ |
524,001 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
|
||
|
|
Southeast |
|
|
2,238 |
|
|
923,385 |
|
|
992 |
|
|
507,937 |
|
|
126% |
|
|
82% |
|
||
|
|
Southwest |
|
|
2,121 |
|
|
970,020 |
|
|
768 |
|
|
406,427 |
|
|
176% |
|
|
139% |
|
||
|
|
West |
|
|
1,542 |
|
|
1,011,307 |
|
|
812 |
|
|
570,180 |
|
|
90% |
|
|
77% |
|
||
|
|
|
|
Consolidated total |
|
|
7,456 |
|
$ |
3,428,713 |
|
|
2,572 |
|
$ |
1,484,544 |
|
|
190% |
|
|
131% |
|
|
|
|
|
|
|
At June 30, |
|
||||
|
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
|
Homesites owned and controlled: |
|
|
|
|
|
|
|
|||
|
|
North |
|
15,636 |
|
n/a |
|
n/a |
|
||
|
|
Southeast |
|
23,033 |
|
16,765 |
|
37% |
|
||
|
|
Southwest |
|
15,006 |
|
6,324 |
|
137% |
|
||
|
|
West |
|
|
14,066 |
|
12,945 |
|
9% |
|
|
|
|
|
Total (including joint ventures) |
|
67,741 |
|
36,034 |
|
88% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
|
50,947 |
|
28,866 |
|
76% |
|
||
|
|
Homesites optioned or subject to contract |
|
15,412 |
|
6,123 |
|
152% |
|
||
|
|
Joint venture homesites |
|
1,382 |
|
1,045 |
|
32% |
|
||
|
|
|
Total (including joint ventures) |
|
67,741 |
|
36,034 |
|
88% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|
|
|||
|
|
Raw lots |
|
11,880 |
|
7,116 |
|
67% |
|
||
|
|
Homesites under development |
|
13,200 |
|
8,361 |
|
58% |
|
||
|
|
Finished homesites |
|
13,618 |
|
7,397 |
|
84% |
|
||
|
|
Under construction or completed homes |
|
10,015 |
|
4,010 |
|
150% |
|
||
|
|
Held for sale |
|
2,234 |
|
1,982 |
|
13% |
|
||
|
|
|
Total |
|
50,947 |
|
28,866 |
|
76% |
|
|
|
PRO FORMA REGIONAL OPERATING DATA |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
Three Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
711 |
|
$ |
339 |
|
|
650 |
|
$ |
339 |
|
|
9% |
|
|
― |
|
||
|
|
Southeast |
|
|
983 |
|
|
392 |
|
|
901 |
|
|
356 |
|
|
9% |
|
|
10% |
|
||
|
|
Southwest |
|
|
1,003 |
|
|
432 |
|
|
920 |
|
|
421 |
|
|
9% |
|
|
3% |
|
||
|
|
West |
|
|
787 |
|
|
634 |
|
|
648 |
|
|
622 |
|
|
21% |
|
|
2% |
|
||
|
|
|
|
Consolidated total |
|
|
3,484 |
|
$ |
447 |
|
|
3,119 |
|
$ |
427 |
|
|
12% |
|
|
5% |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,272 |
|
$ |
336 |
|
|
1,172 |
|
$ |
341 |
|
|
9% |
|
|
(1%) |
|
||
|
|
Southeast |
|
|
1,696 |
|
|
391 |
|
|
1,613 |
|
|
346 |
|
|
5% |
|
|
13% |
|
||
|
|
Southwest |
|
|
1,857 |
|
|
418 |
|
|
1,662 |
|
|
406 |
|
|
12% |
|
|
3% |
|
||
|
|
West |
|
|
1,386 |
|
|
629 |
|
|
1,107 |
|
|
604 |
|
|
25% |
|
|
4% |
|
||
|
|
|
|
Consolidated total |
|
|
6,211 |
|
$ |
441 |
|
|
5,554 |
|
$ |
414 |
|
|
12% |
|
|
7% |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
933 |
|
$ |
331 |
|
|
747 |
|
$ |
338 |
|
|
25% |
|
|
(2%) |
|
||
|
|
Southeast |
|
|
1,112 |
|
|
377 |
|
|
1,103 |
|
|
365 |
|
|
1% |
|
|
3% |
|
||
|
|
Southwest |
|
|
945 |
|
|
431 |
|
|
1,243 |
|
|
409 |
|
|
(24%) |
|
|
5% |
|
||
|
|
West |
|
|
931 |
|
|
659 |
|
|
861 |
|
|
590 |
|
|
8% |
|
|
12% |
|
||
|
|
|
|
Consolidated total |
|
|
3,921 |
|
$ |
446 |
|
|
3,954 |
|
$ |
423 |
|
|
(1%) |
|
|
5% |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
||||||||||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,824 |
|
$ |
331 |
|
|
1,565 |
|
$ |
336 |
|
|
17% |
|
|
(1%) |
|
||
|
|
Southeast |
|
|
2,313 |
|
|
374 |
|
|
2,240 |
|
|
360 |
|
|
3% |
|
|
4% |
|
||
|
|
Southwest |
|
|
2,076 |
|
|
429 |
|
|
2,388 |
|
|
406 |
|
|
(13%) |
|
|
6% |
|
||
|
|
West |
|
|
1,843 |
|
|
645 |
|
|
1,721 |
|
|
589 |
|
|
7% |
|
|
10% |
|
||
|
|
|
|
Consolidated total |
|
|
8,056 |
|
$ |
440 |
|
|
7,914 |
|
$ |
419 |
|
|
2% |
|
|
5% |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
Actual |
|
Pro Forma |
|
% Change |
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
126 |
|
113 |
|
12% |
|
121 |
|
116 |
|
4% |
||
|
|
Southeast |
|
179 |
|
169 |
|
6% |
|
180 |
|
167 |
|
8% |
||
|
|
Southwest |
|
169 |
|
184 |
|
(8%) |
|
172 |
|
182 |
|
(5%) |
||
|
|
West |
|
93 |
|
80 |
|
16% |
|
94 |
|
81 |
|
16% |
||
|
|
|
|
Consolidated total |
|
567 |
|
546 |
|
4% |
|
567 |
|
546 |
|
4% |
|
|
|
|
|
|
At June 30, |
|
||||||||||||||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
||||||||||||
|
|
|
|
|
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
||||||
|
|
|
|
|
|
(Dollars in thousands) |
|
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
|
1,555 |
|
$ |
524,001 |
|
|
1,366 |
|
$ |
463,663 |
|
|
14% |
|
|
13% |
|
||
|
|
Southeast |
|
|
2,238 |
|
|
923,385 |
|
|
2,005 |
|
|
812,686 |
|
|
12% |
|
|
14% |
|
||
|
|
Southwest |
|
|
2,121 |
|
|
970,020 |
|
|
2,152 |
|
|
906,891 |
|
|
(1%) |
|
|
7% |
|
||
|
|
West |
|
|
1,542 |
|
|
1,011,307 |
|
|
1,165 |
|
|
708,687 |
|
|
32% |
|
|
43% |
|
||
|
|
|
|
Consolidated total |
|
|
7,456 |
|
$ |
3,428,713 |
|
|
6,688 |
|
$ |
2,891,927 |
|
|
11% |
|
|
19% |
|
|
|
|
|
|
|
At June 30, |
|
||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
|
Homesites owned and controlled: |
|
|
|
|
|
|
|
|||
|
|
North |
|
15,636 |
|
16,350 |
|
(4%) |
|
||
|
|
Southeast |
|
23,033 |
|
27,636 |
|
(17%) |
|
||
|
|
Southwest |
|
15,006 |
|
17,167 |
|
(13%) |
|
||
|
|
West |
|
|
14,066 |
|
15,298 |
|
(8%) |
|
|
|
|
|
Total (including joint ventures) |
|
67,741 |
|
76,451 |
|
(11%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
|
50,947 |
|
54,961 |
|
(7%) |
|
||
|
|
Homesites optioned or subject to contract |
|
15,412 |
|
19,834 |
|
(22%) |
|
||
|
|
Joint venture homesites |
|
1,382 |
|
1,656 |
|
(17%) |
|
||
|
|
|
Total (including joint ventures) |
|
67,741 |
|
76,451 |
|
(11%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|
|
|||
|
|
Raw lots |
|
11,880 |
|
10,890 |
|
9% |
|
||
|
|
Homesites under development |
|
13,200 |
|
24,079 |
|
(45%) |
|
||
|
|
Finished homesites |
|
13,618 |
|
8,269 |
|
65% |
|
||
|
|
Under construction or completed homes |
|
10,015 |
|
9,622 |
|
4% |
|
||
|
|
Held for sale |
|
2,234 |
|
2,101 |
|
6% |
|
||
|
|
|
Total |
|
50,947 |
|
54,961 |
|
(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 purchase accounting adjustments related to the merger and interest amortized to cost of home sales. The table set forth below also calculates adjusted operating margin percentage from home sales, excluding purchase accounting adjustments related to the merger. 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 |
$ |
1,558,701 |
|
|
|
$ |
694,678 |
|
|
|
$ |
1,179,165 |
|
|
|
|
Less: Cost of home sales |
|
(1,217,793) |
|
|
|
|
(523,933) |
|
|
|
|
(932,128) |
|
|
|
|
Gross margin from home sales |
|
340,908 |
|
21.9% |
|
|
170,745 |
|
24.6% |
|
|
247,037 |
|
21.0% |
|
|
Add: Purchase accounting adjustments included in cost of home sales |
|
5,858 |
|
0.3% |
|
|
― |
|
n/a |
|
|
12,677 |
|
1.0% |
|
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments included in cost of home sales |
|
346,766 |
|
22.2% |
|
|
170,745 |
|
24.6% |
|
|
259,714 |
|
22.0% |
|
|
Add: Capitalized interest included in cost of home sales |
|
40,528 |
|
2.6% |
|
|
35,051 |
|
5.0% |
|
|
30,203 |
|
2.6% |
|
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments and interest amortized to cost of home sales |
$ |
387,294 |
|
24.8% |
|
$ |
205,796 |
|
29.6% |
|
$ |
289,917 |
|
24.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments included in cost of home sales |
$ |
346,766 |
|
22.2% |
|
$ |
170,745 |
|
24.6% |
|
$ |
259,714 |
|
22.0% |
|
|
Less: Selling, general and administrative expenses |
|
(165,694) |
|
(10.6%) |
|
|
(79,910) |
|
(11.5%) |
|
|
(136,701) |
|
(11.6%) |
|
|
Adjusted operating margin from home sales, excluding purchase accounting adjustments |
$ |
181,072 |
|
11.6% |
|
$ |
90,835 |
|
13.1% |
|
$ |
123,013 |
|
10.4% |
|
The table set forth below reconciles the Company's pretax income to adjusted pretax income and adjusted net income, excluding purchase accounting adjustments and merger transaction related costs. 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, 2016 |
|
March 31, 2016 |
||
|
|
|
|
(Dollars in thousands, except per share amounts) |
||||
|
|
|
|
|
|
|
|
|
|
Pretax income |
$ |
179,617 |
|
$ |
115,204 |
||
|
Add: |
|
|
|
|
|
|
|
|
|
Purchase accounting adjustments included in cost of home sales |
|
5,858 |
|
|
12,677 |
|
|
|
Merger transaction related costs |
|
5,005 |
|
|
4,844 |
|
|
Adjusted pretax income |
|
190,480 |
|
|
132,725 |
||
|
|
Less: Adjusted tax provision including the add back of purchase accounting adjustments and merger costs |
|
(70,900) |
|
|
(49,013) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
119,580 |
|
$ |
83,712 |
||
|
|
|
|
|
|
|
|
|
|
|
Less: Net income allocated to unvested restricted stock |
|
(266) |
|
|
(130) |
|
|
|
Add: Interest on convertible senior notes |
|
235 |
|
|
(226) |
|
|
|
|
|
|
|
|
||
|
Adjusted net income available to common stock for diluted earnings per share |
$ |
119,549 |
|
$ |
83,356 |
||
|
Adjusted diluted earnings per share |
$ |
0.88 |
|
$ |
0.60 |
||
|
Total weighted average diluted common shares outstanding |
|
136,088,146 |
|
|
138,430,580 |
||
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.
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
||||
|
|
|
|
(Dollars in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated debt |
$ |
3,890,212 |
|
$ |
3,831,755 |
|
$ |
3,791,121 |
|
$ |
2,259,379 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services indebtedness |
|
(174,514) |
|
|
(164,943) |
|
|
(303,422) |
|
|
(90,341) |
|
|
|
Homebuilding cash, including restricted cash |
|
(286,840) |
|
|
(204,180) |
|
|
(187,066) |
|
|
(116,802) |
|
|
Adjusted net homebuilding debt |
|
3,428,858 |
|
|
3,462,632 |
|
|
3,300,633 |
|
|
2,052,236 |
||
|
Stockholders' equity |
|
4,039,955 |
|
|
3,941,969 |
|
|
3,861,436 |
|
|
1,752,543 |
||
|
Total adjusted book capitalization |
$ |
7,468,813 |
|
$ |
7,404,601 |
|
$ |
7,162,069 |
|
$ |
3,804,779 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated debt to book capitalization |
|
49.1% |
|
|
49.3% |
|
|
49.5% |
|
|
56.3% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net homebuilding debt to total adjusted book capitalization |
|
45.9% |
|
|
46.8% |
|
|
46.1% |
|
|
53.9% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding debt |
$ |
3,715,698 |
|
$ |
3,666,812 |
|
$ |
3,487,699 |
|
$ |
2,169,038 |
||
|
LTM adjusted homebuilding EBITDA |
$ |
842,628 |
|
$ |
740,308 |
|
$ |
648,313 |
|
$ |
498,060 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding debt to adjusted homebuilding EBITDA |
|
4.4x |
|
|
5.0x |
|
|
5.4x |
|
|
4.4x |
||
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, including amortization of capitalized model costs, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures, (i) income (loss) from financial services subsidiaries, (j) purchase accounting adjustments and (k) merger and other one-time transaction related costs. 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 it provides perspective on the underlying performance of the business. 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, |
|
2016 |
|
2015 |
|||||
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
112,760 |
|
$ |
57,198 |
|
$ |
72,661 |
|
$ |
310,127 |
|
$ |
210,046 |
||
|
|
Provision for income taxes |
|
66,857 |
|
|
32,324 |
|
|
42,543 |
|
|
189,165 |
|
|
124,475 |
|
|
|
Homebuilding interest amortized to cost of sales |
|
41,830 |
|
|
36,563 |
|
|
30,382 |
|
|
152,392 |
|
|
127,514 |
|
|
|
Homebuilding depreciation and amortization |
|
15,381 |
|
|
8,964 |
|
|
12,012 |
|
|
53,460 |
|
|
30,172 |
|
|
|
Amortization of stock-based compensation |
|
3,726 |
|
|
2,389 |
|
|
3,786 |
|
|
18,052 |
|
|
8,322 |
|
|
EBITDA |
|
240,554 |
|
|
137,438 |
|
|
161,384 |
|
|
723,196 |
|
|
500,529 |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Cash distributions of income from unconsolidated joint ventures |
|
― |
|
|
592 |
|
|
450 |
|
|
2,688 |
|
|
592 |
|
|
|
Purchase accounting adjustments included in cost of home sales |
|
5,858 |
|
|
― |
|
|
12,677 |
|
|
82,705 |
|
|
― |
|
|
|
Merger and other one-time costs |
|
5,005 |
|
|
5,465 |
|
|
4,844 |
|
|
65,914 |
|
|
5,672 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
223 |
|
|
(51) |
|
|
1,189 |
|
|
3,880 |
|
|
(271) |
|
|
|
Income from financial services subsidiaries |
|
8,146 |
|
|
2,818 |
|
|
6,936 |
|
|
27,995 |
|
|
9,004 |
|
|
Adjusted Homebuilding EBITDA |
$ |
243,048 |
|
$ |
140,728 |
|
$ |
171,230 |
|
$ |
842,628 |
|
$ |
498,060 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
1,578,362 |
|
$ |
699,632 |
|
$ |
1,185,683 |
|
$ |
5,090,546 |
|
$ |
2,528,403 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
15.4% |
|
|
20.1% |
|
|
14.4% |
|
|
16.6% |
|
|
19.7% |
||
Because the closing of the merger occurred after the 2015 second quarter, financial statement information for the three months ended June 30, 2015 includes only stand-alone data for predecessor Standard Pacific Corp. The table set forth below reconciles the Company's reported home sale revenues and pretax income to comparative financial measures on a combined basis for periods prior to the merger. Certain adjustments, including those related to conforming accounting policies and adjusting acquired inventory to fair value, have not been reflected in the pro forma financial measures below due to the impracticability of estimating such impacts. Such pro forma data was not prepared to comply with Regulation S-X of the SEC Rules and Regulations. The following non-GAAP financial measures have been provided as we believe this data is useful to investors for purposes of assessing the Company's operating performance on a combined basis for year-over-year comparison purposes.
|
|
Three Months Ended |
|
|
|
June 30, 2015 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
Home sale revenues |
$ |
694,678 |
|
Add: Ryland home sale revenues |
|
636,401 |
|
Pro forma combined home sale revenues |
$ |
1,331,079 |
|
|
|
|
|
|
|
|
|
Pretax income |
$ |
89,522 |
|
Add: Ryland pretax income |
|
66,544 |
|
Pro forma combined pretax income |
$ |
156,066 |
|
RYLAND REGIONAL QUARTERLY OPERATING DATA |
|||||||||||||||||
|
|
|||||||||||||||||
|
|
|
|
|
|
Q3 2015 |
|
Q2 2015 |
|
Q1 2015 |
|
Q4 2014 |
|
Q3 2014 |
|
Q2 2014 |
|
Q1 2014 |
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
768 |
|
650 |
|
522 |
|
890 |
|
731 |
|
574 |
|
516 |
||
|
|
Southeast |
|
509 |
|
425 |
|
327 |
|
575 |
|
478 |
|
386 |
|
354 |
||
|
|
Southwest |
|
575 |
|
582 |
|
504 |
|
817 |
|
656 |
|
596 |
|
508 |
||
|
|
West |
|
194 |
|
157 |
|
110 |
|
207 |
|
153 |
|
144 |
|
92 |
||
|
|
|
|
Consolidated total |
|
2,046 |
|
1,814 |
|
1,463 |
|
2,489 |
|
2,018 |
|
1,700 |
|
1,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price (deliveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
$ 339 |
|
$ 339 |
|
$ 345 |
|
$ 335 |
|
$ 330 |
|
$ 337 |
|
$ 322 |
||
|
|
Southeast |
|
300 |
|
291 |
|
281 |
|
286 |
|
278 |
|
261 |
|
264 |
||
|
|
Southwest |
|
341 |
|
353 |
|
332 |
|
327 |
|
319 |
|
325 |
|
319 |
||
|
|
West |
|
434 |
|
555 |
|
566 |
|
541 |
|
548 |
|
539 |
|
638 |
||
|
|
|
|
Consolidated total |
|
$ 339 |
|
$ 351 |
|
$ 343 |
|
$ 338 |
|
$ 331 |
|
$ 333 |
|
$ 327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
636 |
|
747 |
|
818 |
|
493 |
|
607 |
|
820 |
|
744 |
||
|
|
Southeast |
|
476 |
|
579 |
|
579 |
|
402 |
|
376 |
|
507 |
|
501 |
||
|
|
Southwest |
|
601 |
|
837 |
|
753 |
|
533 |
|
567 |
|
724 |
|
753 |
||
|
|
West |
|
199 |
|
224 |
|
239 |
|
119 |
|
157 |
|
177 |
|
188 |
||
|
|
|
|
Consolidated total |
|
1,912 |
|
2,387 |
|
2,389 |
|
1,547 |
|
1,707 |
|
2,228 |
|
2,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price (orders): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
$ 337 |
|
$ 338 |
|
$ 335 |
|
$ 338 |
|
$ 343 |
|
$ 345 |
|
$ 325 |
||
|
|
Southeast |
|
298 |
|
292 |
|
289 |
|
288 |
|
304 |
|
283 |
|
279 |
||
|
|
Southwest |
|
356 |
|
360 |
|
347 |
|
344 |
|
334 |
|
330 |
|
325 |
||
|
|
West |
|
375 |
|
403 |
|
463 |
|
591 |
|
516 |
|
543 |
|
548 |
||
|
|
|
|
Consolidated total |
|
$ 337 |
|
$ 341 |
|
$ 340 |
|
$ 347 |
|
$ 347 |
|
$ 342 |
|
$ 334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of selling communities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
North |
|
118 |
|
113 |
|
117 |
|
117 |
|
116 |
|
109 |
|
98 |
||
|
|
Southeast |
|
81 |
|
81 |
|
85 |
|
87 |
|
81 |
|
78 |
|
78 |
||
|
|
Southwest |
|
131 |
|
129 |
|
123 |
|
114 |
|
101 |
|
98 |
|
102 |
||
|
|
West |
|
22 |
|
20 |
|
21 |
|
18 |
|
16 |
|
17 |
|
17 |
||
|
|
|
|
Consolidated total |
|
352 |
|
343 |
|
346 |
|
336 |
|
314 |
|
302 |
|
295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
1,234 |
|
1,366 |
|
1,269 |
|
973 |
|
1,370 |
|
1,494 |
|
1,248 |
||
|
|
Southeast |
|
979 |
|
1,013 |
|
859 |
|
607 |
|
780 |
|
882 |
|
761 |
||
|
|
Southwest |
|
1,409 |
|
1,384 |
|
1,129 |
|
880 |
|
1,164 |
|
1,253 |
|
1,125 |
||
|
|
West |
|
352 |
|
353 |
|
286 |
|
157 |
|
245 |
|
241 |
|
208 |
||
|
|
|
|
Consolidated total |
|
3,974 |
|
4,116 |
|
3,543 |
|
2,617 |
|
3,559 |
|
3,870 |
|
3,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STANDARD PACIFIC REGIONAL QUARTERLY OPERATING DATA |
|||||||||||||||||
|
|
|||||||||||||||||
|
|
|
|
|
|
Q3 2015 |
|
Q2 2015 |
|
Q1 2015 |
|
Q4 2014 |
|
Q3 2014 |
|
Q2 2014 |
|
Q1 2014 |
|
|
|
|
|
|
(Dollars in thousands) |
||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
467 |
|
476 |
|
385 |
|
508 |
|
472 |
|
500 |
|
391 |
||
|
|
Southwest |
|
282 |
|
338 |
|
238 |
|
348 |
|
272 |
|
237 |
|
202 |
||
|
|
West |
|
416 |
|
491 |
|
349 |
|
619 |
|
506 |
|
499 |
|
402 |
||
|
|
|
|
Consolidated total |
|
1,165 |
|
1,305 |
|
972 |
|
1,475 |
|
1,250 |
|
1,236 |
|
995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price (deliveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
$ 437 |
|
$ 414 |
|
$ 377 |
|
$ 382 |
|
$ 360 |
|
$ 339 |
|
$ 329 |
||
|
|
Southwest |
|
552 |
|
538 |
|
504 |
|
469 |
|
474 |
|
477 |
|
433 |
||
|
|
West |
|
641 |
|
643 |
|
583 |
|
593 |
|
602 |
|
619 |
|
574 |
||
|
|
|
|
Consolidated total |
|
$ 537 |
|
$ 532 |
|
$ 482 |
|
$ 491 |
|
$ 483 |
|
$ 479 |
|
$ 449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
429 |
|
524 |
|
558 |
|
395 |
|
446 |
|
517 |
|
483 |
||
|
|
Southwest |
|
325 |
|
406 |
|
392 |
|
240 |
|
245 |
|
434 |
|
288 |
||
|
|
West |
|
572 |
|
637 |
|
621 |
|
343 |
|
463 |
|
573 |
|
540 |
||
|
|
|
|
Consolidated total |
|
1,326 |
|
1,567 |
|
1,571 |
|
978 |
|
1,154 |
|
1,524 |
|
1,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price (orders): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
$ 463 |
|
$ 446 |
|
$ 423 |
|
$ 385 |
|
$ 388 |
|
$ 367 |
|
$ 359 |
||
|
|
Southwest |
|
559 |
|
509 |
|
509 |
|
509 |
|
480 |
|
452 |
|
467 |
||
|
|
West |
|
679 |
|
655 |
|
636 |
|
641 |
|
601 |
|
572 |
|
604 |
||
|
|
|
|
Consolidated total |
|
$ 580 |
|
$ 547 |
|
$ 528 |
|
$ 505 |
|
$ 493 |
|
$ 468 |
|
$ 483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
96 |
|
88 |
|
81 |
|
73 |
|
74 |
|
76 |
|
72 |
||
|
|
Southwest |
|
54 |
|
55 |
|
56 |
|
54 |
|
53 |
|
49 |
|
45 |
||
|
|
West |
|
65 |
|
60 |
|
61 |
|
57 |
|
58 |
|
58 |
|
57 |
||
|
|
|
|
Consolidated total |
|
215 |
|
203 |
|
198 |
|
184 |
|
185 |
|
183 |
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Southeast |
|
954 |
|
992 |
|
944 |
|
771 |
|
884 |
|
910 |
|
893 |
||
|
|
Southwest |
|
811 |
|
768 |
|
700 |
|
546 |
|
654 |
|
681 |
|
484 |
||
|
|
West |
|
968 |
|
812 |
|
666 |
|
394 |
|
670 |
|
713 |
|
639 |
||
|
|
|
|
Consolidated total |
|
2,733 |
|
2,572 |
|
2,310 |
|
1,711 |
|
2,208 |
|
2,304 |
|
2,016 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/calatlantic-group-inc-reports-2016-second-quarter-results-and-announces-500-million-share-repurchase-program-300305851.html
SOURCE CalAtlantic Group, Inc.