IRVINE, Calif., Oct. 26, 2016 /PRNewswire/ -- CalAtlantic Group, Inc. (NYSE: CAA) today announced results for the third quarter ended September 30, 2016.
Larry Nicholson, President and Chief Executive Officer of CalAtlantic Group, Inc. commented, "We continue to execute our business at a high level. With orders growth of 9%, revenue from home sales growth of 26%, and earnings per share growth of 64%, I am pleased with the result of our total team effort."
2016 CalAtlantic Third Quarter Highlights and Comparisons to 2015 Third Quarter
2016 third quarter results are for the combined company and include merger costs. The 2015 third quarter includes only the stand-alone results of Standard Pacific and includes merger related costs.
2016 CalAtlantic Third Quarter Highlights and Comparisons to Pro Forma 2015 CalAtlantic Third 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 third quarter 2015 Standard Pacific and Ryland financial and operating data compared to actual 2016 CalAtlantic third 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 third quarter were up 9% from the pro forma 2015 third quarter, to 3,531 homes, with the dollar value of these orders up 8%. The Company's monthly sales absorption rate was 2.1 per community for the 2016 third quarter, up 9% from the pro forma 2015 third quarter and down 10% from the 2016 second quarter, approximately half the decline associated with normal seasonal patterns. The Company's cancellation rate for the 2016 third quarter was 16%, down compared to 20% for the pro forma 2015 third quarter and slightly up from 15% for the 2016 second quarter.
Backlog. The dollar value of homes in backlog increased 10% to $3.3 billion, or 7,307 homes, compared to $3.0 billion, or 6,707 homes, for the pro forma 2015 third quarter, and decreased 3% compared to $3.4 billion, or 7,456 homes, for the 2016 second quarter. The increase in pro forma year-over-year backlog value was driven primarily by the 9% increase in the Company's monthly sales absorption rate. As of September 30, 2016, the average gross margin of the 7,307 total homes in backlog was 21.4%. For the 4,306 homes scheduled to close in the fourth quarter of 2016, the gross margin in backlog as of such date was 21.2%.
Revenue. Revenues from home sales for the 2016 third quarter increased 26%, to $1.7 billion, as compared to the pro forma 2015 third quarter, resulting from a 15% increase on a pro forma basis in new home deliveries and a 10% increase on a pro forma basis in the Company's average home price to $452 thousand. The increase in average home price was primarily attributable to product mix and general price increases within select markets.
Gross Margin. The Company achieved gross margin from homes sales of 22.5% for the 2016 third quarter. Excluding 270 bps of capitalized interest amortized to cost of home sales, our pre-interest gross margin was 25.2%*. Our 2016 gross margin was negatively impacted by a shift in product mix, a competitive pricing environment, and an increase in direct construction costs per home.
SG&A Expenses. Selling, general and administrative expenses for the 2016 third quarter were $170.8 million, or 10.3%, as compared to $73.3 million, or 11.7%, for the 2015 third quarter. This 140 basis point improvement was primarily the result of a 166% increase in home sale revenues and the operating leverage associated with the increase in revenue and the synergies gained in connection with the merger.
Land. During the 2016 third quarter, the Company spent $387.1 million on land purchases and development costs, compared to $432.8 million for the pro forma 2015 third quarter. The Company purchased $227.6 million of land, consisting of 3,798 homesites, of which 20% (based on homesites) is located in the North region, 37% in the Southeast region, 33% in the Southwest region, and 10% in the West region. As of September 30, 2016, the Company owned or controlled 67,964 homesites, of which 46,119 were owned and actively selling or under development, 16,579 were controlled or under option, and the remaining 5,266 homesites were held for future development or for sale.
Liquidity. The Company ended the quarter with $675.1 million of available liquidity, including $184.0 million of unrestricted homebuilding cash and $491.1 million available to borrow under its $750 million revolving credit facility. The Company's homebuilding debt to book capitalization as of September 30, 2016 and 2015 was 46.4% and 56.8%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 44.9%* and 55.4%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending September 30, 2016 and 2015 was 3.7x* and 4.7x*, respectively.
Share Repurchase. During the third quarter, the Company repurchased 1.1 million shares of its common stock at an average price of $34.12 and a total third quarter spend of $37.6 million. This brings the year-to-date repurchases for the nine months ended September 30, 2016 to 4.3 million shares at an average price of $31.99 and a total year-to-date spend of $137.5 million.
Earnings Conference Call
A conference call to discuss the Company's 2016 third quarter results will be held at 11:00 a.m. Eastern time October 27, 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 (800) 723-6604 (domestic) or (785) 830-7977 (international); Passcode: 3619958. 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: 3619958.
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 nine 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; our ability to execute our business; 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 |
|||||||||||
|
|
|
|
September 30, |
|
September 30, |
|
Percentage |
|
June 30, |
|
Percentage |
|||
|
|
|
|
2016 |
|
2015 |
|
or % Change |
|
2016 |
|
or % Change |
|||
|
Select Operating Data |
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries |
|
3,680 |
|
|
1,165 |
|
216% |
|
|
3,484 |
|
6% |
||
|
Average selling price |
$ |
452 |
|
$ |
537 |
|
(16%) |
|
$ |
447 |
|
1% |
||
|
Home sale revenues |
$ |
1,665,030 |
|
$ |
626,008 |
|
166% |
|
$ |
1,558,701 |
|
7% |
||
|
Gross margin % (including land sales) |
|
22.4% |
|
|
24.5% |
|
(2.1%) |
|
|
21.6% |
|
0.8% |
||
|
Gross margin % from home sales |
|
22.5% |
|
|
25.3% |
|
(2.8%) |
|
|
21.9% |
|
0.6% |
||
|
Adjusted gross margin % from home sales (excluding purchase accounting adjustments included in cost of home sales)* |
|
22.5% |
|
|
25.3% |
|
(2.8%) |
|
|
22.2% |
|
0.3% |
||
|
Adjusted gross margin % from home sales (excluding purchase accounting adjustments and interest amortized to cost of home sales)* |
|
25.2% |
|
|
30.2% |
|
(5.0%) |
|
|
24.8% |
|
0.4% |
||
|
Incentive and stock-based compensation expense |
$ |
18,594 |
|
$ |
5,932 |
|
213% |
|
$ |
17,275 |
|
8% |
||
|
Selling expenses |
$ |
84,723 |
|
$ |
32,687 |
|
159% |
|
$ |
81,396 |
|
4% |
||
|
G&A expenses (excluding incentive and stock-based compensation expenses) |
$ |
67,498 |
|
$ |
34,641 |
|
95% |
|
$ |
67,023 |
|
1% |
||
|
SG&A expenses |
$ |
170,815 |
|
$ |
73,260 |
|
133% |
|
$ |
165,694 |
|
3% |
||
|
SG&A % from home sales |
|
10.3% |
|
|
11.7% |
|
(1.4%) |
|
|
10.6% |
|
(0.3%) |
||
|
Operating margin from home sales |
$ |
203,587 |
|
$ |
85,390 |
|
138% |
|
$ |
175,214 |
|
16% |
||
|
Operating margin % from home sales |
|
12.2% |
|
|
13.6% |
|
(1.4%) |
|
|
11.2% |
|
1.0% |
||
|
Adjusted operating margin from home sales* |
$ |
203,587 |
|
$ |
85,390 |
|
138% |
|
$ |
181,072 |
|
12% |
||
|
Adjusted operating margin % from home sales* |
|
12.2% |
|
|
13.6% |
|
(1.4%) |
|
|
11.6% |
|
0.6% |
||
|
Net new orders |
|
3,531 |
|
|
1,326 |
|
166% |
|
|
3,921 |
|
(10%) |
||
|
Net new orders (dollar value) |
$ |
1,520,358 |
|
$ |
768,557 |
|
98% |
|
$ |
1,749,217 |
|
(13%) |
||
|
Average active selling communities |
|
566 |
|
|
215 |
|
163% |
|
|
567 |
|
(0%) |
||
|
Monthly sales absorption rate per community |
|
2.1 |
|
|
2.1 |
|
1% |
|
|
2.3 |
|
(10%) |
||
|
Cancellation rate |
|
16% |
|
|
19% |
|
(3%) |
|
|
15% |
|
1% |
||
|
Gross cancellations |
|
679 |
|
|
302 |
|
125% |
|
|
711 |
|
(5%) |
||
|
Backlog (homes) |
|
7,307 |
|
|
2,733 |
|
167% |
|
|
7,456 |
|
(2%) |
||
|
Backlog (dollar value) |
$ |
3,314,883 |
|
$ |
1,655,496 |
|
100% |
|
$ |
3,428,713 |
|
(3%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land purchases (incl. seller financing) |
$ |
227,596 |
|
$ |
125,982 |
|
81% |
|
$ |
237,925 |
|
(4%) |
||
|
Adjusted Homebuilding EBITDA* |
$ |
267,835 |
|
$ |
130,769 |
|
105% |
|
$ |
243,048 |
|
10% |
||
|
Adjusted Homebuilding EBITDA Margin %* |
|
16.0% |
|
|
20.1% |
|
(4.1%) |
|
|
15.4% |
|
0.6% |
||
|
Homebuilding interest incurred |
$ |
56,872 |
|
$ |
42,304 |
|
34% |
|
$ |
55,610 |
|
2% |
||
|
Homebuilding interest capitalized to inventories owned |
$ |
55,761 |
|
$ |
41,611 |
|
34% |
|
$ |
54,564 |
|
2% |
||
|
Homebuilding interest capitalized to investments in JVs |
$ |
1,111 |
|
$ |
693 |
|
60% |
|
$ |
1,046 |
|
6% |
||
|
Interest amortized to cost of sales (incl. cost of land sales) |
$ |
44,751 |
|
$ |
33,323 |
|
34% |
|
$ |
41,830 |
|
7% |
||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
|
|
|
As of |
||||||
|
|
|
|
September 30, |
|
December 31, |
|
Percentage |
||
|
|
|
|
2016 |
|
2015 |
|
or % Change |
||
|
Select Balance Sheet Data |
(Dollars in thousands, except per share amounts) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
$ |
213,829 |
|
$ |
187,066 |
|
14% |
||
|
Inventories owned |
$ |
6,533,047 |
|
$ |
6,069,959 |
|
8% |
||
|
Goodwill |
$ |
970,185 |
|
$ |
933,360 |
|
4% |
||
|
Homesites owned and controlled |
|
67,964 |
|
|
70,494 |
|
(4%) |
||
|
Homes under construction |
|
7,365 |
|
|
6,081 |
|
21% |
||
|
Completed specs |
|
973 |
|
|
1,325 |
|
(27%) |
||
|
Homebuilding debt |
$ |
3,580,729 |
|
$ |
3,487,699 |
|
3% |
||
|
Stockholders' equity |
$ |
4,134,435 |
|
$ |
3,861,436 |
|
7% |
||
|
Stockholders' equity per share |
$ |
35.23 |
|
$ |
31.84 |
|
11% |
||
|
Total consolidated debt to book capitalization |
|
47.5% |
|
|
49.5% |
|
(2.0%) |
||
|
Adjusted net homebuilding debt to total adjusted book capitalization* |
|
44.9% |
|
|
46.1% |
|
(1.2%) |
||
|
|
|
|
|||||||||||
|
|
|
|
|||||||||||
|
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 |
|
3,680 |
|
|
3,211 |
|
15% |
|
|
3,484 |
|
6% |
|
|
Average selling price |
$ |
452 |
|
$ |
411 |
|
10% |
|
$ |
447 |
|
1% |
|
|
Home sale revenues |
$ |
1,665,030 |
|
$ |
1,318,885 * |
|
26% |
|
$ |
1,558,701 |
|
7% |
|
|
Pretax income |
$ |
210,746 |
|
$ |
143,852 * |
|
47% |
|
$ |
179,617 |
|
17% |
|
|
Pretax income (excluding purchase accounting adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in cost of home sales and merger costs)* |
$ |
214,683 |
|
$ |
155,068 |
|
38% |
|
$ |
190,480 |
|
13% |
|
|
Net new orders |
|
3,531 |
|
|
3,238 |
|
9% |
|
|
3,921 |
|
(10%) |
|
|
Net new orders (dollar value) |
$ |
1,520,358 |
|
$ |
1,413,512 |
|
8% |
|
$ |
1,749,217 |
|
(13%) |
|
|
Average active selling communities |
|
566 |
|
|
567 |
|
(0%) |
|
|
567 |
|
(0%) |
|
|
Monthly sales absorption rate per community |
|
2.1 |
|
|
1.9 |
|
9% |
|
|
2.3 |
|
(10%) |
|
|
Cancellation rate |
|
16% |
|
|
20% |
|
(4%) |
|
|
15% |
|
1% |
|
|
Gross cancellations |
|
679 |
|
|
797 |
|
(15%) |
|
|
711 |
|
(5%) |
|
|
Backlog (homes) |
|
7,307 |
|
|
6,707 |
|
9% |
|
|
7,456 |
|
(2%) |
|
|
Backlog (dollar value) |
$ |
3,314,883 |
|
$ |
3,014,957 |
|
10% |
|
$ |
3,428,713 |
|
(3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land purchases (incl. seller financing) |
$ |
227,596 |
|
$ |
211,588 |
|
8% |
|
$ |
237,925 |
|
(4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
||||||||
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
||||
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
||||||||||
|
|
|
|
|
(Unaudited) |
||||||||||
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Home sale revenues |
$ |
1,665,030 |
|
$ |
626,008 |
|
$ |
4,402,896 |
|
$ |
1,789,065 |
||
|
|
Land sale revenues |
|
5,928 |
|
|
26,182 |
|
|
32,107 |
|
|
33,035 |
||
|
|
|
Total revenues |
|
1,670,958 |
|
|
652,190 |
|
|
4,435,003 |
|
|
1,822,100 |
|
|
|
Cost of home sales |
|
(1,290,628) |
|
|
(467,358) |
|
|
(3,440,549) |
|
|
(1,346,108) |
||
|
|
Cost of land sales |
|
(5,638) |
|
|
(25,076) |
|
|
(31,217) |
|
|
(30,190) |
||
|
|
|
Total cost of sales |
|
(1,296,266) |
|
|
(492,434) |
|
|
(3,471,766) |
|
|
(1,376,298) |
|
|
|
|
|
Gross margin |
|
374,692 |
|
|
159,756 |
|
|
963,237 |
|
|
445,802 |
|
|
|
|
Gross margin % |
|
22.4% |
|
|
24.5% |
|
|
21.7% |
|
|
24.5% |
|
|
Selling, general and administrative expenses |
|
(170,815) |
|
|
(73,260) |
|
|
(473,210) |
|
|
(219,240) |
||
|
|
Income (loss) from unconsolidated joint ventures |
|
1,231 |
|
|
121 |
|
|
2,643 |
|
|
(381) |
||
|
|
Other income (expense) |
|
(4,169) |
|
|
(11,170) |
|
|
(11,992) |
|
|
(16,742) |
||
|
|
|
|
Homebuilding pretax income |
|
200,939 |
|
|
75,447 |
|
|
480,678 |
|
|
209,439 |
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Revenues |
|
21,433 |
|
|
7,011 |
|
|
59,524 |
|
|
19,815 |
||
|
|
Expenses |
|
(11,626) |
|
|
(4,164) |
|
|
(34,635) |
|
|
(12,942) |
||
|
|
|
|
Financial services pretax income |
|
9,807 |
|
|
2,847 |
|
|
24,889 |
|
|
6,873 |
|
Income before taxes |
|
210,746 |
|
|
78,294 |
|
|
505,567 |
|
|
216,312 |
|||
|
Provision for income taxes |
|
(78,398) |
|
|
(31,117) |
|
|
(187,798) |
|
|
(80,332) |
|||
|
Net income |
|
132,348 |
|
|
47,177 |
|
|
317,769 |
|
|
135,980 |
|||
|
Less: Net income allocated to preferred shareholder |
|
― |
|
|
(11,342) |
|
|
― |
|
|
(32,818) |
|||
|
Less: Net income allocated to unvested restricted stock |
|
(294) |
|
|
(93) |
|
|
(635) |
|
|
(274) |
|||
|
Net income available to common stockholders |
$ |
132,054 |
|
$ |
35,742 |
|
$ |
317,134 |
|
$ |
102,888 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
$ |
1.12 |
|
$ |
0.65 |
|
$ |
2.66 |
|
$ |
1.87 |
|
|
|
Diluted |
$ |
0.97 |
|
$ |
0.59 |
|
$ |
2.34 |
|
$ |
1.71 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Basic |
|
|
118,338,891 |
|
|
55,345,443 |
|
|
119,188,145 |
|
|
55,059,683 |
|
|
|
Diluted |
|
136,077,415 |
|
|
62,292,524 |
|
|
136,888,927 |
|
|
62,152,754 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
136,077,415 |
|
|
79,855,081 |
|
|
136,888,927 |
|
|
79,715,311 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends Declared Per Common Share |
$ |
0.04 |
|
$ |
― |
|
$ |
0.12 |
|
$ |
― |
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
September 30, |
|
December 31, |
|||
|
|
|
|
|
|
2016 |
|
2015 |
|||
|
|
|
|
|
|
(Dollars in thousands) |
|||||
|
ASSETS |
(Unaudited) |
|
|
|||||||
|
Homebuilding: |
|
|
|
|
||||||
|
|
Cash and equivalents |
$ |
184,033 |
|
$ |
151,076 |
||||
|
|
Restricted cash |
|
29,796 |
|
|
35,990 |
||||
|
|
Inventories: |
|
|
|
|
|
|
|||
|
|
|
Owned |
|
|
6,533,047 |
|
|
6,069,959 |
||
|
|
|
Not owned |
|
75,484 |
|
|
83,246 |
|||
|
|
Investments in unconsolidated joint ventures |
|
139,373 |
|
|
132,763 |
||||
|
|
Deferred income taxes, net |
|
323,955 |
|
|
396,194 |
||||
|
|
Goodwill |
|
|
970,185 |
|
|
933,360 |
|||
|
|
Other assets |
|
|
109,348 |
|
|
118,768 |
|||
|
|
|
|
Total Homebuilding Assets |
|
8,365,221 |
|
|
7,921,356 |
||
|
Financial Services: |
|
|
|
|
||||||
|
|
Cash and equivalents |
|
30,241 |
|
|
35,518 |
||||
|
|
Restricted cash |
|
21,799 |
|
|
22,914 |
||||
|
|
Mortgage loans held for sale, net |
|
171,262 |
|
|
325,770 |
||||
|
|
Mortgage loans held for investment, net |
|
24,450 |
|
|
22,704 |
||||
|
|
Other assets |
|
|
19,488 |
|
|
17,243 |
|||
|
|
|
|
Total Financial Services Assets |
|
267,240 |
|
|
424,149 |
||
|
|
|
|
|
Total Assets |
$ |
8,632,461 |
|
$ |
8,345,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
||||||
|
Homebuilding: |
|
|
|
|
||||||
|
|
Accounts payable |
$ |
204,803 |
|
$ |
191,681 |
||||
|
|
Accrued liabilities |
|
533,794 |
|
|
478,793 |
||||
|
|
Revolving credit facility |
|
146,000 |
|
|
― |
||||
|
|
Secured project debt and other notes payable |
|
40,930 |
|
|
25,683 |
||||
|
|
Senior notes payable |
|
3,393,799 |
|
|
3,462,016 |
||||
|
|
|
|
Total Homebuilding Liabilities |
|
4,319,326 |
|
|
4,158,173 |
||
|
Financial Services: |
|
|
|
|
||||||
|
|
Accounts payable and other liabilities |
|
16,802 |
|
|
22,474 |
||||
|
|
Mortgage credit facilities |
|
161,898 |
|
|
303,422 |
||||
|
|
|
|
Total Financial Services Liabilities |
|
178,700 |
|
|
325,896 |
||
|
|
|
|
|
Total Liabilities |
|
4,498,026 |
|
|
4,484,069 |
|
|
Equity: |
|
|
|
|
||||||
|
|
Stockholders' Equity: |
|
|
|
|
|||||
|
|
|
Preferred stock |
|
― |
|
|
― |
|||
|
|
|
Common stock |
|
1,173 |
|
|
1,213 |
|||
|
|
|
Additional paid-in capital |
|
3,293,823 |
|
|
3,324,328 |
|||
|
|
|
Accumulated earnings |
|
839,395 |
|
|
535,890 |
|||
|
|
|
Accumulated other comprehensive income, net of tax |
|
44 |
|
|
5 |
|||
|
|
|
|
Total Equity |
|
4,134,435 |
|
|
3,861,436 |
||
|
|
|
|
|
Total Liabilities and Equity |
$ |
8,632,461 |
|
$ |
8,345,505 |
|
|
|
|
|
|
|
|
|
|
|
|
INVENTORIES |
|||
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2016 |
|
2015 |
|
|
(Dollars in thousands) |
||
|
Inventories Owned: |
(Unaudited) |
|
|
|
|
|
|
|
|
Land and land under development |
$ 3,452,896 |
|
$ 3,546,289 |
|
Homes completed and under construction |
2,581,562 |
|
2,039,597 |
|
Model homes |
498,589 |
|
484,073 |
|
Total inventories owned |
$ 6,533,047 |
|
$ 6,069,959 |
|
|
|
|
|
|
Inventories Owned by Segment: |
|
|
|
|
|
|
|
|
|
North |
$ 859,559 |
|
$ 703,651 |
|
Southeast |
1,904,047 |
|
1,753,301 |
|
Southwest |
1,460,966 |
|
1,400,524 |
|
West |
2,308,475 |
|
2,212,483 |
|
Total inventories owned |
$ 6,533,047 |
|
$ 6,069,959 |
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
REGIONAL OPERATING DATA |
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
In connection with the merger with Ryland, the Company began evaluating the business and allocating resources based on each of the four post-merger homebuilding regions of CalAtlantic. The Company's four homebuilding reportable segments include: 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 September 30, |
||||||||||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
848 |
|
$ |
332 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
||
|
|
Southeast |
|
1,052 |
|
|
380 |
|
|
467 |
|
|
437 |
|
|
125% |
|
|
(13%) |
||
|
|
Southwest |
|
894 |
|
|
435 |
|
|
282 |
|
|
552 |
|
|
217% |
|
|
(21%) |
||
|
|
West |
|
886 |
|
|
671 |
|
|
416 |
|
|
641 |
|
|
113% |
|
|
5% |
||
|
|
|
|
Consolidated total |
|
3,680 |
|
$ |
452 |
|
|
1,165 |
|
$ |
537 |
|
|
216% |
|
|
(16%) |
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
Nine Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
2,120 |
|
$ |
335 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
||
|
|
Southeast |
|
2,748 |
|
|
387 |
|
|
1,328 |
|
|
411 |
|
|
107% |
|
|
(6%) |
||
|
|
Southwest |
|
2,751 |
|
|
424 |
|
|
858 |
|
|
533 |
|
|
221% |
|
|
(20%) |
||
|
|
West |
|
2,272 |
|
|
645 |
|
|
1,256 |
|
|
625 |
|
|
81% |
|
|
3% |
||
|
|
|
|
Consolidated total |
|
9,891 |
|
$ |
445 |
|
|
3,442 |
|
$ |
520 |
|
|
187% |
|
|
(14%) |
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
Three Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
823 |
|
$ |
337 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
||
|
|
Southeast |
|
1,071 |
|
|
375 |
|
|
429 |
|
|
463 |
|
|
150% |
|
|
(19%) |
||
|
|
Southwest |
|
831 |
|
|
428 |
|
|
325 |
|
|
559 |
|
|
156% |
|
|
(23%) |
||
|
|
West |
|
806 |
|
|
603 |
|
|
572 |
|
|
679 |
|
|
41% |
|
|
(11%) |
||
|
|
|
|
Consolidated total |
|
3,531 |
|
$ |
431 |
|
|
1,326 |
|
$ |
580 |
|
|
166% |
|
|
(26%) |
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
Nine Months Ended September 30, |
||||||||||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
2,647 |
|
$ |
333 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
||
|
|
Southeast |
|
3,384 |
|
|
374 |
|
|
1,511 |
|
|
442 |
|
|
124% |
|
|
(15%) |
||
|
|
Southwest |
|
2,907 |
|
|
429 |
|
|
1,123 |
|
|
523 |
|
|
159% |
|
|
(18%) |
||
|
|
West |
|
2,649 |
|
|
632 |
|
|
1,830 |
|
|
656 |
|
|
45% |
|
|
(4%) |
||
|
|
|
|
Consolidated total |
|
11,587 |
|
$ |
437 |
|
|
4,464 |
|
$ |
550 |
|
|
160% |
|
|
(21%) |
|
|
|
|
|
|
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
2016 |
|
2015 |
|
% Change |
|
Average number of selling communities |
|
|
|
|
|
|
|
|
|
|
|
|||
|
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
134 |
|
n/a |
|
n/a |
|
125 |
|
n/a |
|
n/a |
||
|
|
Southeast |
182 |
|
96 |
|
90% |
|
180 |
|
88 |
|
105% |
||
|
|
Southwest |
165 |
|
54 |
|
206% |
|
170 |
|
54 |
|
215% |
||
|
|
West |
85 |
|
65 |
|
31% |
|
91 |
|
63 |
|
44% |
||
|
|
|
|
Consolidated total |
566 |
|
215 |
|
163% |
|
566 |
|
205 |
|
176% |
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
At September 30, |
||||||||||||||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
1,530 |
|
$ |
523,882 |
|
|
n/a |
|
$ |
n/a |
|
|
n/a |
|
|
n/a |
||
|
|
Southeast |
|
2,257 |
|
|
934,797 |
|
|
954 |
|
|
511,449 |
|
|
137% |
|
|
83% |
||
|
|
Southwest |
|
2,058 |
|
|
945,052 |
|
|
811 |
|
|
438,753 |
|
|
154% |
|
|
115% |
||
|
|
West |
|
1,462 |
|
|
911,152 |
|
|
968 |
|
|
705,294 |
|
|
51% |
|
|
29% |
||
|
|
|
|
Consolidated total |
|
7,307 |
|
$ |
3,314,883 |
|
|
2,733 |
|
$ |
1,655,496 |
|
|
167% |
|
|
100% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
At September 30, |
||||
|
|
|
|
|
2016 |
|
2015 |
|
% Change |
|
Homesites owned and controlled: |
|
|
|
|
|
|||
|
|
North |
15,966 |
|
n/a |
|
n/a |
||
|
|
Southeast |
22,993 |
|
16,098 |
|
43% |
||
|
|
Southwest |
15,113 |
|
6,537 |
|
131% |
||
|
|
West |
|
13,892 |
|
12,880 |
|
8% |
|
|
|
|
Total (including joint ventures) |
67,964 |
|
35,515 |
|
91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
51,385 |
|
28,343 |
|
81% |
||
|
|
Homesites optioned or subject to contract |
15,209 |
|
5,792 |
|
163% |
||
|
|
Joint venture homesites |
1,370 |
|
1,380 |
|
(1%) |
||
|
|
|
Total (including joint ventures) |
67,964 |
|
35,515 |
|
91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|||
|
|
Raw lots |
13,168 |
|
6,916 |
|
90% |
||
|
|
Homesites under development |
11,836 |
|
7,717 |
|
53% |
||
|
|
Finished homesites |
14,235 |
|
7,674 |
|
85% |
||
|
|
Under construction or completed homes |
10,055 |
|
4,323 |
|
133% |
||
|
|
Held for sale |
2,091 |
|
1,713 |
|
22% |
||
|
|
|
Total |
51,385 |
|
28,343 |
|
81% |
|
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
PRO FORMA REGIONAL OPERATING DATA |
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
Three Months Ended September 30, |
|||||||||||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
North |
|
848 |
|
$ |
332 |
|
|
768 |
|
$ |
339 |
|
|
10% |
|
|
(2%) |
|||
|
|
Southeast |
|
1,052 |
|
|
380 |
|
|
976 |
|
|
365 |
|
|
8% |
|
|
4% |
|||
|
|
Southwest |
|
894 |
|
|
435 |
|
|
857 |
|
|
410 |
|
|
4% |
|
|
6% |
|||
|
|
West |
|
886 |
|
|
671 |
|
|
610 |
|
|
575 |
|
|
45% |
|
|
17% |
|||
|
|
|
|
Consolidated total |
|
3,680 |
|
$ |
452 |
|
|
3,211 |
|
$ |
411 |
|
|
15% |
|
|
10% |
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
Nine Months Ended September 30, |
|||||||||||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||||
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
North |
|
2,120 |
|
$ |
335 |
|
|
1,940 |
|
$ |
340 |
|
|
9% |
|
|
(1%) |
|||
|
|
Southeast |
|
2,748 |
|
|
387 |
|
|
2,589 |
|
|
353 |
|
|
6% |
|
|
10% |
|||
|
|
Southwest |
|
2,751 |
|
|
424 |
|
|
2,519 |
|
|
407 |
|
|
9% |
|
|
4% |
|||
|
|
West |
|
2,272 |
|
|
645 |
|
|
1,717 |
|
|
594 |
|
|
32% |
|
|
9% |
|||
|
|
|
|
Consolidated total |
|
9,891 |
|
$ |
445 |
|
|
8,765 |
|
$ |
413 |
|
|
13% |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
Three Months Ended September 30, |
|||||||||||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
North |
|
823 |
|
$ |
337 |
|
|
636 |
|
$ |
337 |
|
|
29% |
|
|
― |
|||
|
|
Southeast |
|
1,071 |
|
|
375 |
|
|
905 |
|
|
376 |
|
|
18% |
|
|
(0%) |
|||
|
|
Southwest |
|
831 |
|
|
428 |
|
|
926 |
|
|
427 |
|
|
(10%) |
|
|
0% |
|||
|
|
West |
|
806 |
|
|
603 |
|
|
771 |
|
|
601 |
|
|
5% |
|
|
0% |
|||
|
|
|
|
Consolidated total |
|
3,531 |
|
$ |
431 |
|
|
3,238 |
|
$ |
437 |
|
|
9% |
|
|
(1%) |
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
Nine Months Ended September 30, |
|||||||||||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|||||||||||||
|
|
|
|
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|
Homes |
|
ASP |
|||||||
|
|
|
|
|
(Dollars in thousands) |
|||||||||||||||||
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
North |
|
2,647 |
|
$ |
333 |
|
|
2,201 |
|
$ |
336 |
|
|
20% |
|
|
(1%) |
|||
|
|
Southeast |
|
3,384 |
|
|
374 |
|
|
3,145 |
|
|
364 |
|
|
8% |
|
|
3% |
|||
|
|
Southwest |
|
2,907 |
|
|
429 |
|
|
3,314 |
|
|
412 |
|
|
(12%) |
|
|
4% |
|||
|
|
West |
|
2,649 |
|
|
632 |
|
|
2,492 |
|
|
592 |
|
|
6% |
|
|
7% |
|||
|
|
|
|
Consolidated total |
|
11,587 |
|
$ |
437 |
|
|
11,152 |
|
$ |
424 |
|
|
4% |
|
|
3% |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
Actual |
|
Pro Forma |
|
% Change |
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
||||
|
|
North |
134 |
|
118 |
|
14% |
|
125 |
|
116 |
|
8% |
||
|
|
Southeast |
182 |
|
177 |
|
3% |
|
180 |
|
171 |
|
5% |
||
|
|
Southwest |
165 |
|
185 |
|
(11%) |
|
170 |
|
183 |
|
(7%) |
||
|
|
West |
85 |
|
87 |
|
(2%) |
|
91 |
|
83 |
|
10% |
||
|
|
|
|
Consolidated total |
566 |
|
567 |
|
(0%) |
|
566 |
|
553 |
|
2% |
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
At September 30, |
||||||||||||||||
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
||||||||||||
|
|
|
|
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
|
Homes |
|
Dollar |
||||||
|
|
|
|
|
(Dollars in thousands) |
||||||||||||||||
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
North |
|
1,530 |
|
$ |
523,882 |
|
|
1,234 |
|
$ |
417,931 |
|
|
24% |
|
|
25% |
||
|
|
Southeast |
|
2,257 |
|
|
934,797 |
|
|
1,933 |
|
|
805,356 |
|
|
17% |
|
|
16% |
||
|
|
Southwest |
|
2,058 |
|
|
945,052 |
|
|
2,220 |
|
|
957,390 |
|
|
(7%) |
|
|
(1%) |
||
|
|
West |
|
1,462 |
|
|
911,152 |
|
|
1,320 |
|
|
834,279 |
|
|
11% |
|
|
9% |
||
|
|
|
|
Consolidated total |
|
7,307 |
|
$ |
3,314,883 |
|
|
6,707 |
|
$ |
3,014,956 |
|
|
9% |
|
|
10% |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
At September 30, |
||||
|
|
|
|
|
|
Actual |
|
Pro Forma |
|
% Change |
|
Homesites owned and controlled: |
|
|
|
|
|
|
|||
|
|
North |
|
15,966 |
|
16,848 |
|
(5%) |
||
|
|
Southeast |
|
22,993 |
|
26,695 |
|
(14%) |
||
|
|
Southwest |
|
15,113 |
|
17,223 |
|
(12%) |
||
|
|
West |
|
|
13,892 |
|
14,994 |
|
(7%) |
|
|
|
|
Total (including joint ventures) |
|
67,964 |
|
75,760 |
|
(10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned |
|
51,385 |
|
54,014 |
|
(5%) |
||
|
|
Homesites optioned or subject to contract |
|
15,209 |
|
19,760 |
|
(23%) |
||
|
|
Joint venture homesites |
|
1,370 |
|
1,986 |
|
(31%) |
||
|
|
|
Total (including joint ventures) |
|
67,964 |
|
75,760 |
|
(10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homesites owned: |
|
|
|
|
|
|
|||
|
|
Raw lots |
|
13,168 |
|
10,334 |
|
27% |
||
|
|
Homesites under development |
|
11,836 |
|
22,935 |
|
(48%) |
||
|
|
Finished homesites |
|
14,235 |
|
8,737 |
|
63% |
||
|
|
Under construction or completed homes |
|
10,055 |
|
10,200 |
|
(1%) |
||
|
|
Held for sale |
|
2,091 |
|
1,808 |
|
16% |
||
|
|
|
Total |
|
51,385 |
|
54,014 |
|
(5%) |
|
|
|
||||||||||||||
|
|
||||||||||||||
|
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 extraordinary 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 extraordinary 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 |
|||||||||||||
|
|
September 30, |
Gross |
September 30, |
Gross |
June 30, |
Gross |
||||||||
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Home sale revenues |
$ |
1,665,030 |
|
$ |
626,008 |
|
$ |
1,558,701 |
|
|||||
|
Less: Cost of home sales |
|
(1,290,628) |
|
|
(467,358) |
|
|
(1,217,793) |
|
|||||
|
Gross margin from home sales |
|
374,402 |
22.5% |
|
158,650 |
25.3% |
|
340,908 |
21.9% |
|||||
|
Add: Purchase accounting adjustments included i n cost of home sales |
|
― |
n/a |
|
― |
n/a |
|
5,858 |
0.3% |
|||||
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments included in cost of home sales |
|
374,402 |
22.5% |
|
158,650 |
25.3% |
|
346,766 |
22.2% |
|||||
|
Add: Capitalized interest included in cost of home sales |
|
44,636 |
2.7% |
|
30,275 |
4.9% |
|
40,528 |
2.6% |
|||||
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments and interest amortized to cost of home sales |
$ |
419,038 |
25.2% |
$ |
188,925 |
30.2% |
$ |
387,294 |
24.8% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted gross margin from home sales, excluding purchase accounting adjustments included in cost of home sales |
$ |
374,402 |
22.5% |
$ |
158,650 |
25.3% |
$ |
346,766 |
22.2% |
|||||
|
Less: Selling, general and administrative expenses |
|
(170,815) |
(10.3%) |
|
(73,260) |
(11.7%) |
|
(165,694) |
(10.6%) |
|||||
|
Adjusted operating margin from home sales, excluding purchase accounting adjustments |
$ |
203,587 |
12.2% |
$ |
85,390 |
13.6% |
$ |
181,072 |
11.6% |
|||||
|
|
|||||||||
|
|
|||||||||
|
The table set forth below reconciles the Company's pretax income to adjusted pretax income, excluding extraordinary purchase accounting adjustments and merger and other one-time 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 |
||||||
|
|
|
|
September 30, 2016 |
|
June 30, 2016 |
||||
|
|
|
|
(Dollars in thousands) |
||||||
|
|
|
|
|
|
|
|
|
||
|
Pretax income |
$ |
210,746 |
|
$ |
179,617 |
||||
|
Add: |
|
|
|
|
|
|
|||
|
|
Purchase accounting adjustments included in cost of home sales |
|
― |
|
|
5,858 |
|||
|
|
Merger and other one-time transaction related costs |
|
3,937 |
|
|
5,005 |
|||
|
Adjusted pretax income |
$ |
214,683 |
|
$ |
190,480 |
||||
|
|
|
|
|
|
|
|
|
||
|
|
|||||||||||||
|
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 |
$ |
3,742,627 |
|
$ |
3,890,212 |
|
$ |
3,791,121 |
|
$ |
2,457,626 |
||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services indebtedness |
|
(161,898) |
|
|
(174,514) |
|
|
(303,422) |
|
|
(78,859) |
|
|
|
Homebuilding cash, including restricted cash |
|
(213,829) |
|
|
(286,840) |
|
|
(187,066) |
|
|
(135,279) |
|
|
Adjusted net homebuilding debt |
|
3,366,900 |
|
|
3,428,858 |
|
|
3,300,633 |
|
|
2,243,488 |
||
|
Stockholders' equity |
|
4,134,435 |
|
|
4,039,955 |
|
|
3,861,436 |
|
|
1,807,327 |
||
|
Total adjusted book capitalization |
$ |
7,501,335 |
|
$ |
7,468,813 |
|
$ |
7,162,069 |
|
$ |
4,050,815 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated debt to book capitalization |
|
47.5% |
|
|
49.1% |
|
|
49.5% |
|
|
57.6% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net homebuilding debt to total adjusted book capitalization |
|
44.9% |
|
|
45.9% |
|
|
46.1% |
|
|
55.4% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding debt |
$ |
3,580,729 |
|
$ |
3,715,698 |
|
$ |
3,487,699 |
|
$ |
2,378,767 |
||
|
LTM adjusted homebuilding EBITDA |
$ |
979,694 |
|
$ |
842,628 |
|
$ |
648,313 |
|
$ |
501,458 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding debt to adjusted homebuilding EBITDA |
|
3.7x |
|
|
4.4x |
|
|
5.4x |
|
|
4.7x |
||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
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) extraordinary 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 September 30, |
|||||||||||
|
|
|
|
September 30, |
|
September 30, |
|
June 30, |
|
2016 |
|
2015 |
|||||
|
|
|
|
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
132,348 |
|
$ |
47,177 |
|
$ |
112,760 |
|
$ |
395,298 |
|
$ |
200,624 |
||
|
|
Provision for income taxes |
|
78,398 |
|
|
31,117 |
|
|
66,857 |
|
|
236,446 |
|
|
120,070 |
|
|
|
Homebuilding interest amortized to cost of sales |
|
44,751 |
|
|
33,323 |
|
|
41,830 |
|
|
163,820 |
|
|
131,878 |
|
|
|
Homebuilding depreciation and amortization |
|
15,735 |
|
|
7,368 |
|
|
15,381 |
|
|
61,827 |
|
|
30,691 |
|
|
EBITDA |
|
271,232 |
|
|
118,985 |
|
|
236,828 |
|
|
857,391 |
|
|
483,263 |
||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Amortization of stock-based compensation |
|
3,704 |
|
|
3,536 |
|
|
3,726 |
|
|
18,220 |
|
|
9,353 |
|
|
|
Cash distributions of income from unconsolidated joint ventures |
|
― |
|
|
― |
|
|
― |
|
|
2,688 |
|
|
592 |
|
|
|
Purchase accounting adjustments included in cost of home sales |
|
― |
|
|
― |
|
|
5,858 |
|
|
82,705 |
|
|
― |
|
|
|
Merger and other one-time costs |
|
3,937 |
|
|
11,216 |
|
|
5,005 |
|
|
58,635 |
|
|
16,888 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
1,231 |
|
|
121 |
|
|
223 |
|
|
4,990 |
|
|
(707) |
|
|
|
Income from financial services subsidiaries |
|
9,807 |
|
|
2,847 |
|
|
8,146 |
|
|
34,955 |
|
|
9,345 |
|
|
Adjusted Homebuilding EBITDA |
$ |
267,835 |
|
$ |
130,769 |
|
$ |
243,048 |
|
$ |
979,694 |
|
$ |
501,458 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding revenues |
$ |
1,670,958 |
|
$ |
652,190 |
|
$ |
1,578,362 |
|
$ |
6,109,314 |
|
$ |
2,575,744 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA Margin % |
|
16.0% |
|
|
20.1% |
|
|
15.4% |
|
|
16.0% |
|
|
19.5% |
||
|
|
||
|
|
||
|
Because the closing of the merger occurred after the 2015 third quarter, financial statement information for the three months ended September 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 excluding merger and other one-time transaction related costs. 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 |
|
|
|
September 30, 2015 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
Home sale revenues |
$ |
626,008 |
|
Add: Ryland home sale revenues |
|
692,877 |
|
Pro forma combined home sale revenues |
$ |
1,318,885 |
|
|
|
|
|
|
|
|
|
Pretax income |
$ |
78,294 |
|
Add: Ryland pretax income |
|
65,558 |
|
Pro forma combined pretax income |
$ |
143,852 |
|
Add: |
|
|
|
Merger and other one-time transaction related costs |
|
11,216 |
|
Adjusted pro forma combined pretax income |
$ |
155,068 |
|
|
|||||||||||||||||
|
|
|||||||||||||||||
|
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-third-quarter-results-300351958.html
SOURCE CalAtlantic Group, Inc.