CALATLANTIC GROUP INC IRVINE, Calif., Feb. 5, 2015 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the year and fourth quarter ended December 31, 2014.
2014 Highlights and Comparisons to 2013
-- Net income of $215.9 million, or $0.54 per diluted share, vs. net income
of $188.7 million, or $0.47 per diluted share
-- Pretax income of $350.0 million, up 36%
-- Net new orders of 4,967, up 1%; Dollar value of net new orders up 13%
-- Backlog of 1,711 homes, up 1%; Dollar value of backlog up 14%
-- 182 average active selling communities, up 10%
-- Home sale revenues of $2,366.8 million, up 25%
-- Average selling price of $478 thousand, up 16%
-- 4,956 new home deliveries, up 8%
-- Gross margin from home sales of 26.1%, compared to 24.6%
-- SG&A rate from home sales of 11.7%, compared to 12.1%
-- Operating margin from home sales of $341.9 million, or 14.4%, compared
to $236.5 million, or 12.5%
-- $943.1 million of land purchases and development costs, compared to
$807.9 million
2014 Fourth Quarter Highlights and Comparisons to the 2013 Fourth Quarter
-- Net income of $64.6 million, or $0.16 per diluted share, vs. $64.8
million, or $0.16 per diluted share
-- Pretax income of $104.4 million, up 3%
-- Net new orders of 978, up 11%; Dollar value of net new orders up 18%
-- 184 average active selling communities, up 6%
-- Home sale revenues of $724.3 million, up 21%
-- Average selling price of $491 thousand, up 10%
-- 1,475 new home deliveries, up 10%
-- Gross margin from home sales of 25.2%, compared to 26.8%
-- Operating margin from home sales of $103.5 million, or 14.3%, compared
to $92.6 million, or 15.5%
-- $255.9 million of land purchases and development costs, compared to
$216.0 million
Scott Stowell, the Company's President and Chief Executive Officer commented, "I am pleased with our solid financial performance in 2014, the third most profitable year in Standard Pacific Homes' 50-year history." Mr. Stowell added, "Our 2014 results reflect our strong land position and the continued execution of our strategy, with full year pretax income, home sale revenues and backlog value up 36%, 25% and 14%, respectively."
Revenue. Revenues from home sales for the 2014 fourth quarter increased 21%, to $724.3 million, as compared to the prior year period, resulting primarily from a 10% increase in the Company's average home price to $491 thousand, the highest quarterly average home price in Company history, and a 10% increase in new home deliveries. The increase in average home price was primarily attributable to a shift to more move-up product and general price increases within a majority of the Company's markets. The increase in new home deliveries compared to the prior year period was driven primarily by a 21% increase in deliveries from the Company's Southwest region where the Company's average active selling communities grew 23%, and a 14% increase from the Company's California region.
Orders. Net new orders for the 2014 fourth quarter were up 11% from the 2013 fourth quarter, to 978 homes, with the dollar value of these orders up 18%. The Company's monthly sales absorption rate was 1.8 per community for the 2014 fourth quarter, up 5% from the 2013 fourth quarter and down 15% compared to the 2014 third quarter. The 15% decrease in sales absorption rate from the 2014 third quarter to the 2014 fourth quarter was favorable compared to the approximately 20% decrease in sales absorption rate we have typically experienced from the third quarter to the fourth quarter over the last 10 years. The Company's cancellation rate for both the 2014 and 2013 fourth quarter was 21%, compared to 19% for the 2014 third quarter. Our 2014 fourth quarter cancellation rate is consistent with our average historical cancellation rate of approximately 22% over the last 10 years.
Backlog. The dollar value of homes in backlog increased 14% to $916.4 million, or 1,711 homes, compared to $800.5 million, or 1,700 homes, for the 2013 fourth quarter, and decreased 19% compared to $1.1 billion, or 2,208 homes, for the 2014 third quarter. The increase in year-over-year backlog value was driven primarily by a 14% increase in the average selling price of the homes in backlog, reflecting the continued execution of our move-up homebuyer focused strategy and a favorable pricing environment in select markets.
Land. During the 2014 fourth quarter, the Company spent $255.9 million on land purchases and development costs, compared to $216.0 million for the 2013 fourth quarter. The Company purchased $172.3 million of land, consisting of 1,937 homesites, of which 38% (based on homesites) is located in California, 31% in Florida, 16% in Texas, 12% in Colorado, and 3% in the Carolinas. As of December 31, 2014, the Company owned or controlled 35,430 homesites, of which 24,434 were owned and actively selling or under development, 6,458 were controlled or under option, and the remaining 4,538 homesites were held for future development or for sale. The homesites owned that are actively selling or under development represent a 4.9 year supply based on the Company's deliveries for the twelve months ended December 31, 2014.
Liquidity. The Company ended the quarter with $630 million of available liquidity, including $180 million of unrestricted homebuilding cash and a $450 million untapped revolving credit facility. The revolving credit facility has an accordion feature under which the aggregate commitment may be increased to a maximum amount of $750 million, subject to the Company's future needs and the availability of additional bank capacity. The Company's homebuilding debt to book capitalization as of December 31, 2014 and 2013 was 56.0% and 55.6%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 53.3%* and 49.9%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the year ended December 31, 2014 and 2013 was 4.5x* and 4.8x*, respectively.
Earnings Conference Call
A conference call to discuss the Company's 2014 fourth quarter results will be held at 12:00 p.m. Eastern time February 6, 2015. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://ir.standardpacifichomes.com. The call will also be accessible via telephone by dialing (888) 312-9852 (domestic) or (719) 325-2149 (international); Passcode: 6873830. 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: 6873830.
About Standard Pacific
Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers. Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.
This news release contains forward-looking statements. These statements include but are not limited to statements regarding the strength of our land position; new home orders; deliveries; backlog; absorption rates; cancellation rates; average home price; revenue; profitability; cash flow; liquidity; gross margin; operating margin; product mix; land supply; the benefit of, and execution on, our strategy; our future cash needs and the availability of additional bank commitments; and our future performance. Forward-looking statements are based on our current expectations or beliefs regarding future events or circumstances, and you should not place undue reliance on these statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors many of which are out of the Company's control and difficult to forecast that may cause actual results to differ materially from those that may be described or implied. Such factors include but are not limited to: local and general economic and market conditions, including consumer confidence, employment rates, interest rates, the cost and availability of mortgage financing, and stock market, home and land valuations; the impact on economic conditions, terrorist attacks or the outbreak or escalation of armed conflict involving the United States; the cost and availability of suitable undeveloped land, building materials and labor; the cost and availability of construction financing and corporate debt and equity capital; our significant amount of debt and the impact of restrictive covenants in our debt agreements; our ability to repay our debt as it comes due; changes in our credit rating or outlook; the demand for and affordability of single-family homes; the supply of housing for sale; cancellations of purchase contracts by homebuyers; the cyclical and competitive nature of the Company's business; governmental regulation, including the impact of "slow growth" or similar initiatives; delays in the land entitlement process, development, construction, or the opening of new home communities; adverse weather conditions and natural disasters; environmental matters; risks relating to the Company's mortgage banking operations; future business decisions and the Company's ability to successfully implement the Company's operational and other strategies; litigation and warranty claims; and other risks discussed in the Company's filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2013 and subsequent Quarterly Reports on Form 10-Q. The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements. The Company nonetheless reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
Contact:
Jeff McCall, EVP & CFO (949) 789-1655, jmccall@stanpac.com
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.
(Note: Tables Follow)
KEY STATISTICS AND FINANCIAL DATA1
As of or For the Three Months Ended
-----------------------------------
December 31, December 31, Percentage September 30, Percentage
2014 2013 or % Change 2014 or % Change
---- ---- ----------- ---- -----------
Operating Data (Dollars in thousands)
--------------
Deliveries 1,475 1,343 10% 1,250 18%
Average selling
price $491 $446 10% $483 2%
Home sale revenues $724,342 $598,496 21% $603,788 20%
Gross margin %
(including land
sales) 24.2% 26.8% (2.6%) 26.3% (2.1%)
Gross margin % from
home sales 25.2% 26.8% (1.6%) 26.3% (1.1%)
Adjusted gross
margin % from home
sales (excluding
interest amortized
to cost of home
sales)*
30.2% 32.2% (2.0%) 31.1% (0.9%)
Incentive and stock-
based compensation
expense $7,364 $9,442 (22%) $7,527 (2%)
Selling expenses $35,746 $28,114 27% $29,424 21%
G&A expenses
(excluding
incentive and
stock-based
compensation
expenses)
$36,162 $30,304 19% $33,213 9%
SG&A expenses $79,272 $67,860 17% $70,164 13%
SG&A % from home
sales 10.9% 11.3% (0.4%) 11.6% (0.7%)
Operating margin
from home sales $103,455 $92,648 12% $88,726 17%
Operating margin %
from home sales 14.3% 15.5% (1.2%) 14.7% (0.4%)
Net new orders
(homes) 978 878 11% 1,154 (15%)
Net new orders
(dollar value) $494,064 $418,828 18% $568,977 (13%)
Average active
selling communities 184 173 6% 185 (1%)
Monthly sales
absorption rate per
community 1.8 1.7 5% 2.1 (15%)
Cancellation rate 21% 21% ? 19% 2%
Gross cancellations 258 234 10% 278 (7%)
Cancellations from
current quarter
sales 70 64 9% 107 (35%)
Backlog (homes) 1,711 1,700 1% 2,208 (23%)
Backlog (dollar
value) $916,376 $800,494 14% $1,126,125 (19%)
Cash flows (uses)
from operating
activities $(103,851) $(27,820) (273%) $(115,034) 10%
Cash flows (uses)
from investing
activities $(5,690) $(14,707) 61% $434
Cash flows (uses)
from financing
activities $296,266 $42,690 594% $(7,271)
Land purchases
(incl. seller
financing) $172,320 $116,856 47% $155,670 11%
Adjusted
Homebuilding
EBITDA* $143,529 $135,469 6% $121,737 18%
Adjusted
Homebuilding EBITDA
Margin %* 19.0% 22.3% (3.3%) 20.1% (1.1%)
Homebuilding
interest incurred $39,960 $37,546 6% $37,308 7%
Homebuilding
interest
capitalized to
inventories owned $39,594 $36,889 7% $36,927 7%
Homebuilding
interest
capitalized to
investments in JVs $366 $657 (44%) $381 (4%)
Interest amortized
to cost of sales
(incl. cost of land
sales) $39,354 $32,909 20% $28,959 36%
For the Year Ended
------------------
December 31, December 31, Percentage
2014 2013 or % Change
---- ---- -----------
Operating Data (Dollars in thousands)
--------------
Deliveries 4,956 4,602 8%
Average selling price $478 $413 16%
Home sale revenues $2,366,754 $1,898,989 25%
Gross margin % (including land
sales) 25.6% 24.5% 1.1%
Gross margin % from home sales 26.1% 24.6% 1.5%
Adjusted gross margin % from home
sales (excluding interest
amortized to cost of home
sales)*
31.1% 31.0% 0.1%
Incentive and stock-based
compensation expense $26,643 $28,240 (6%)
Selling expenses $116,651 $93,005 25%
G&A expenses (excluding incentive
and stock-based compensation
expenses)
$132,567 $109,446 21%
SG&A expenses $275,861 $230,691 20%
SG&A % from home sales 11.7% 12.1% (0.4%)
Operating margin from home sales $341,939 $236,501 45%
Operating margin % from home
sales 14.4% 12.5% 1.9%
Net new orders (homes) 4,967 4,898 1%
Net new orders (dollar value) $2,410,206 $2,126,355 13%
Average active selling
communities 182 166 10%
Monthly sales absorption rate per
community 2.3 2.5 (8%)
Cancellation rate 17% 15% 2%
Gross cancellations 1,004 852 18%
Cancellations from current year
sales 360 361 (0%)
Cash flows (uses) from operating
activities $(362,397) $(154,216) (135%)
Cash flows (uses) from investing
activities $(31,020) $(143,857) 78%
Cash flows (uses) from financing
activities $242,519 $314,809 (23%)
Land purchases (incl. seller
financing) $585,735 $493,583 19%
Adjusted Homebuilding EBITDA* $480,004 $383,621 25%
Adjusted Homebuilding EBITDA
Margin %* 19.9% 20.0% (0.1%)
Homebuilding interest incurred $153,695 $140,865 9%
Homebuilding interest capitalized
to inventories owned $151,962 $137,990 10%
Homebuilding interest capitalized
to investments in JVs $1,733 $2,875 (40%)
Interest amortized to cost of
sales (incl. cost of land sales) $123,112 $121,778 1%
As of
-----
December 31, December 31, Percentage
2014 2013 or % Change
---- ---- -----------
Balance Sheet Data (Dollars in thousands, except per share amounts)
------------------
Homebuilding cash
(including
restricted cash) $218,650 $376,949 (42%)
Inventories owned $3,255,204 $2,536,102 28%
Homesites owned and controlled 35,430 35,175 1%
Homes under construction 2,032 2,001 2%
Completed specs 515 327 57%
Deferred tax asset
valuation
allowance $2,561 $4,591 (44%)
Homebuilding debt $2,136,082 $1,839,595 16%
Stockholders'
equity $1,676,688 $1,468,960 14%
Adjusted stockholders' equity
per share (including if-
converted preferred stock)*
$4.62 $4.02 15%
Total consolidated debt to book
capitalization 57.0% 56.9% 0.1%
Adjusted net homebuilding debt
to total adjusted book
capitalization*
53.3% 49.9% 3.4%
(1)All statistical numbers exclude unconsolidated joint ventures unless noted otherwise.
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2014 2013 2014 2013
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
(Unaudited)
Homebuilding:
Home sale revenues $724,342 $598,496 $2,366,754 $1,898,989
Land sale revenues 29,302 7,955 44,424 15,620
Total revenues 753,644 606,451 2,411,178 1,914,609
------- ------- --------- ---------
Cost of home sales (541,615) (437,988) (1,748,954) (1,431,797)
Cost of land sales (29,596) (5,945) (43,841) (13,616)
Total cost of
sales (571,211) (443,933) (1,792,795) (1,445,413)
-------- -------- ---------- ----------
Gross margin 182,433 162,518 618,383 469,196
------- ------- ------- -------
Gross margin % 24.2% 26.8% 25.6% 24.5%
Selling, general and
administrative
expenses (79,272) (67,860) (275,861) (230,691)
Income (loss) from
unconsolidated joint
ventures (326) (300) (668) 949
Other income (expense) (1,288) 4,191 (1,733) 6,815
Homebuilding pretax income 101,547 98,549 340,121 246,269
------- ------ ------- -------
Financial Services:
Revenues 6,844 5,983 24,119 24,910
Expenses (4,372) (3,765) (15,245) (14,159)
Other income 363 258 969 678
Financial services pretax income 2,835 2,476 9,843 11,429
----- ----- ----- ------
Income before taxes 104,382 101,025 349,964 257,698
Provision for income taxes (39,738) (36,205) (134,099) (68,983)
------- ------- -------- -------
Net income 64,644 64,820 215,865 188,715
Less: Net income allocated to preferred shareholder (15,490) (15,570) (51,650) (57,386)
Less: Net income allocated to unvested restricted
stock (87) (99) (297) (265)
--- --- ---- ----
Net income available to common stockholders $49,067 $49,151 $163,918 $131,064
======= ======= ======== ========
Income Per Common Share:
Basic $0.18 $0.18 $0.59 $0.52
Diluted $0.16 $0.16 $0.54 $0.47
Weighted Average Common Shares Outstanding:
Basic 278,167,633 277,212,473 278,687,740 253,118,247
Diluted 315,440,225 315,284,731 316,285,412 291,173,953
Weighted average additional common shares
outstanding
if preferred shares
converted to common
shares 87,812,786 87,812,786 87,812,786 110,826,557
Total weighted average diluted common shares
outstanding
if preferred shares
converted to common
shares 403,253,011 403,097,517 404,098,198 402,000,510
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2014 2013
---- ----
(Dollars in thousands)
ASSETS (Unaudited)
Homebuilding:
Cash and equivalents $180,428 $355,489
Restricted cash 38,222 21,460
Trade and other
receivables 19,005 14,431
Inventories:
Owned 3,255,204 2,536,102
Not owned 85,153 98,341
Investments in
unconsolidated joint
ventures 50,111 66,054
Deferred income taxes,
net 276,402 375,400
Other assets 42,592 45,977
Total
Homebuilding
Assets 3,947,117 3,513,254
--------- ---------
Financial Services:
Cash and equivalents 31,965 7,802
Restricted cash 1,295 1,295
Mortgage loans held for
sale, net 174,420 122,031
Mortgage loans held for
investment, net 14,380 12,220
Other assets 5,243 5,503
Total Financial
Services
Assets 227,303 148,851
------- -------
Total
Assets $4,174,420 $3,662,105
========== ==========
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable $45,085 $35,771
Accrued
liabilities 223,783 214,266
Secured project debt
and other notes
payable 4,689 6,351
Senior notes payable 2,131,393 1,833,244
Total
Homebuilding
Liabilities 2,404,950 2,089,632
--------- ---------
Financial Services:
Accounts payable and
other liabilities 3,369 2,646
Mortgage credit
facilities 89,413 100,867
Total Financial
Services
Liabilities 92,782 103,513
------ -------
Total
Liabilities 2,497,732 2,193,145
--------- ---------
Equity:
Stockholders' Equity:
Preferred stock,
$0.01 par value;
10,000,000 shares
authorized; 267,829
shares issued and
outstanding
at December 31,
2014 and 2013 3 3
Common stock, $0.01
par value;
600,000,000 shares
authorized;
275,141,189 and
277,618,177 shares
issued and
outstanding at
December 31, 2014
and
2013, respectively 2,751 2,776
Additional paid-in
capital 1,346,702 1,354,814
Accumulated
earnings 327,232 111,367
Total Equity 1,676,688 1,468,960
--------- ---------
Total
Liabilities
and
Equity $4,174,420 $3,662,105
========== ==========
INVENTORIES
December 31, December 31,
2014 2013
---- ----
(Dollars in thousands)
Inventories
Owned: (Unaudited)
Land and land
under
development $2,248,289 $1,771,661
Homes
completed
and under
construction 827,612 628,371
Model homes 179,303 136,070
Total
inventories
owned $3,255,204 $2,536,102
========== ==========
Inventories
Owned by
Segment:
California $1,422,330 $1,182,520
Southwest 799,473 603,303
Southeast 1,033,401 750,279
Total
inventories
owned $3,255,204 $2,536,102
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2014 2013 2014 2013
---- ---- ---- ----
(Dollars in thousands)
(Unaudited)
Cash Flows From Operating Activities:
Net income $64,644 $64,820 $215,865 $188,715
Adjustments to
reconcile net income
to net cash
provided by (used
in) operating
activities:
Amortization of
stock-based
compensation 733 2,359 8,469 9,015
Excess tax
benefits from
share-based
payment
arrangements (12,444) ? (13,404) ?
Deferred income
tax provision 4,524 35,725 98,998 84,214
Other operating
activities 1,573 1,427 7,482 6,019
Changes in cash
and
equivalents
due to:
Trade and other receivables 11,820 5,218 (4,777) (3,244)
Mortgage loans held for sale (105,946) (46,722) (52,838) (2,543)
Inventories - owned (94,418) (100,937) (642,008) (415,312)
Inventories - not owned (13,143) (11,619) (33,027) (43,319)
Other assets 7,354 564 9,306 965
Accounts payable (5,439) 6,470 9,314 13,325
Accrued liabilities 36,891 14,875 34,223 7,949
Net cash provided
by (used in)
operating
activities (103,851) (27,820) (362,397) (154,216)
-------- ------- -------- --------
Cash Flows From Investing Activities:
Investments in
unconsolidated
homebuilding joint
ventures (2,558) (11,386) (10,506) (24,328)
Distributions of
capital from
unconsolidated joint
ventures ? 2,444 18,010 4,763
Net cash paid for
acquisitions (362) (2,469) (33,770) (116,262)
Other investing
activities (2,770) (3,296) (4,754) (8,030)
Net cash provided
by (used in)
investing
activities (5,690) (14,707) (31,020) (143,857)
------ ------- ------- --------
Cash Flows From Financing Activities:
Change in restricted
cash (1,195) 6,564 (16,762) 6,565
Principal payments on
secured project debt
and other notes
payable (59) (1,045) (1,458) (8,334)
Principal payments on
senior notes payable ? ? (4,971) ?
Proceeds from the
issuance of senior
notes payable 300,000 ? 300,000 300,000
Payment of debt
issuance costs (3,843) (1,271) (6,230) (5,316)
Net proceeds from
(payments on) mortgage
credit facilities 24,715 36,687 (11,454) 8,708
Repurchases of common
stock (36,781) ? (36,781) ?
Payment of issuance
costs in connection
with preferred
shareholder equity
transaction
? ? ? (350)
Proceeds from the
exercise of stock
options 985 1,755 6,771 13,536
Excess tax benefits
from share-based
payment arrangements 12,444 ? 13,404 ?
Net cash provided
by (used in)
financing
activities 296,266 42,690 242,519 314,809
------- ------ ------- -------
Net increase (decrease) in cash and equivalents 186,725 163 (150,898) 16,736
Cash and equivalents at beginning of period 25,668 363,128 363,291 346,555
Cash and equivalents at end of period $212,393 $363,291 $212,393 $363,291
======== ======== ======== ========
Cash and equivalents at end of period $212,393 $363,291 $212,393 $363,291
Homebuilding restricted cash at end of period 38,222 21,460 38,222 21,460
Financial services restricted cash at end of period 1,295 1,295 1,295 1,295
Cash and equivalents and restricted cash at end of
period $251,910 $386,046 $251,910 $386,046
======== ======== ======== ========
REGIONAL OPERATING DATA
Three Months Ended December 31,
-------------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
New homes delivered:
California 544 $627 476 $628 14% (0%)
Arizona 75 344 87 318 (14%) 8%
Texas 273 452 211 423 29% 7%
Colorado 75 532 51 476 47% 12%
Southwest 423 447 349 404 21% 11%
Florida 291 403 320 300 (9%) 34%
Carolinas 217 355 198 315 10% 13%
Southeast 508 382 518 306 (2%) 25%
Consolidated total 1,475 491 1,343 446 10% 10%
Unconsolidated joint
ventures ? ? 2 581 (100%) ?
Total (including joint ventures) 1,475 $491 1,345 $446 10% 10%
===== ==== ===== ==== === ===
Year Ended December 31,
-----------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
New homes delivered:
California 1,759 $638 1,762 $565 (0%) 13%
Arizona 267 332 258 280 3% 19%
Texas 826 453 669 393 23% 15%
Colorado 233 510 168 450 39% 13%
Southwest 1,326 438 1,095 375 21% 17%
Florida 1,057 378 1,027 279 3% 35%
Carolinas 814 324 718 289 13% 12%
Southeast 1,871 354 1,745 283 7% 25%
Consolidated total 4,956 478 4,602 413 8% 16%
Unconsolidated joint
ventures ? ? 25 511 (100%) ?
Total (including joint ventures) 4,956 $478 4,627 $413 7% 16%
===== ==== ===== ==== === ===
Three Months Ended December 31,
-------------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
Net new orders:
California 291 $693 337 $639 (14%) 8%
Arizona 52 352 38 302 37% 17%
Texas 207 502 143 440 45% 14%
Colorado 33 552 45 476 (27%) 16%
Southwest 292 481 226 424 29% 13%
Florida 220 418 155 358 42% 17%
Carolinas 175 342 160 326 9% 5%
---
Southeast 395 385 315 342 25% 13%
Consolidated total 978 505 878 477 11% 6%
Unconsolidated joint
ventures ? ? 1 570 (100%) ?
Total (including joint ventures) 978 $505 879 $477 11% 6%
=== ==== === ==== === ===
Year Ended December 31,
-----------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
Net new orders:
California 1,661 $644 1,718 $593 (3%) 9%
Arizona 258 321 286 299 (10%) 7%
Texas 1,007 464 755 410 33% 13%
Colorado 200 517 201 457 (0%) 13%
Southwest 1,465 446 1,242 392 18% 14%
Florida 1,004 414 1,165 339 (14%) 22%
Carolinas 837 325 773 292 8% 11%
Southeast 1,841 374 1,938 320 (5%) 17%
Consolidated total 4,967 485 4,898 434 1% 12%
Unconsolidated joint
ventures ? ? 13 503 (100%) ?
Total (including joint ventures) 4,967 $485 4,911 $434 1% 12%
===== ==== ===== ==== === ===
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Average number of selling communities
during the period:
California 47 49 (4%) 47 47 ?
Arizona 10 10 ? 11 9 22%
Texas 44 33 33% 40 31 29%
Colorado 10 9 11% 10 8 25%
Southwest 64 52 23% 61 48 27%
Florida 48 40 20% 45 40 13%
Carolinas 25 32 (22%) 29 31 (6%)
Southeast 73 72 1% 74 71 4%
Consolidated total 184 173 6% 182 166 10%
=== === === === === ===
At December 31,
---------------
2014 2013 % Change
---- ---- --------
Homes Dollar Value Homes Dollar Value Homes Dollar
Value
----- ------------ ----- ------------ ----- ------
(Dollars in thousands)
Backlog:
California 298 $227,787 396 $262,097 (25%) (13%)
Arizona 96 33,607 105 35,846 (9%) (6%)
Texas 471 244,231 290 134,583 62% 81%
Colorado 75 45,396 108 54,946 (31%) (17%)
Southwest 642 323,234 503 225,375 28% 43%
Florida 451 252,569 504 215,312 (11%) 17%
Carolinas 320 112,786 297 97,710 8% 15%
Southeast 771 365,355 801 313,022 (4%) 17%
Consolidated total 1,711 $916,376 1,700 $800,494 1% 14%
===== ======== ===== ======== === ===
At December 31,
---------------
2014 2013 % Change
---- ---- --------
Homesites owned and
controlled:
California 9,930 9,638 3%
Arizona 2,098 2,351 (11%)
Texas 4,733 4,607 3%
Colorado 1,087 1,307 (17%)
Nevada 1,124 1,124 ?
Southwest 9,042 9,389 (4%)
Florida 12,478 11,461 9%
Carolinas 3,980 4,687 (15%)
----- ----- ----
Southeast 16,458 16,148 2%
Total
(including
joint
ventures) 35,430 35,175 1%
====== ====== ===
Homesites
owned 28,972 27,733 4%
Homesites
optioned or
subject to
contract 6,260 7,047 (11%)
Joint venture
homesites 198 395 (50%)
Total
(including
joint
ventures) 35,430 35,175 1%
====== ====== ===
Homesites owned:
Raw lots 8,162 6,211 31%
Homesites
under
development 8,119 9,340 (13%)
Finished
homesites 7,210 7,024 3%
Under
construction
or completed
homes 3,104 2,804 11%
Held for sale 2,377 2,354 1%
Total 28,972 27,733 4%
====== ====== ===
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Each of the below measures are non-GAAP financial measures and other companies may calculate such non-GAAP measures differently. Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP.
The table set forth below reconciles the Company's gross margin percentage from home sales to adjusted gross margin percentage from home sales, excluding interest amortized to cost of home sales. We believe these measures are useful to management and investors as they provide perspective on the underlying operating performance of the business excluding these charges and provide comparability with the Company's peer group.
Three Months Ended
------------------
December 31, Gross December 31, Gross September 30, Gross
2014 Margin % 2013 Margin % 2014 Margin %
---- ------- ---- ------- ---- -------
(Dollars in thousands)
Home sale
revenues $724,342 $598,496 $603,788
Less: Cost of
home sales (541,615) (437,988) (444,898)
-------- -------- --------
Gross margin
from home
sales 182,727 25.2% 160,508 26.8% 158,890 26.3%
Add:
Capitalized
interest
included in
cost of home
sales
36,370 5.0% 32,378 5.4% 28,872 4.8%
------ ------ ------
Adjusted
gross margin
from home
sales,
excluding
interest
amortized to
cost of home
sales
$219,097 30.2% $192,886 32.2% $187,762 31.1%
=== ======== ======== ========
Year Ended December 31,
-----------------------
2014 Gross 2013 Gross
Margin % Margin %
------- -------
(Dollars in thousands)
Home sale
revenues $2,366,754 $1,898,989
Less: Cost of
home sales (1,748,954) (1,431,797)
---------- ----------
Gross margin
from home
sales 617,800 26.1% 467,192 24.6%
Add:
Capitalized
interest
included in
cost of home
sales
119,422 5.0% 120,714 6.4%
------- -------
Adjusted
gross margin
from home
sales,
excluding
interest
amortized to
cost of home
sales
$737,222 31.1% $587,906 31.0%
=== ======== ========
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.
December 31, December 31,
2014 2013
---- ----
(Dollars in thousands)
Total consolidated debt $2,225,495 $1,940,462
Less:
Financial
services
indebtedness (89,413) (100,867)
Homebuilding
cash (218,650) (376,949)
Adjusted net homebuilding
debt 1,917,432 1,462,646
Stockholders' equity 1,676,688 1,468,960
--------- ---------
Total adjusted book
capitalization $3,594,120 $2,931,606
========== ==========
Total consolidated debt to
book capitalization 57.0% 56.9%
==== ====
Adjusted net homebuilding
debt to total adjusted book
capitalization 53.3% 49.9%
==== ====
Homebuilding debt $2,136,082 $1,839,595
LTM adjusted homebuilding
EBITDA 480,004 383,621
------- -------
Homebuilding debt to adjusted
homebuilding EBITDA 4.5x 4.8x
==== ====
The table set forth below calculates adjusted stockholders' equity per common share. The Company believes that the adjusted stockholders' equity per common share information is useful to management and investors as a measure to determine the book value per common share after giving the pro forma effect to the conversion of our outstanding preferred shares assuming full conversion to common stock.
December 31, December 31,
2014 2013
---- ----
Actual common
shares
outstanding 275,141,189 277,618,177
Add: Conversion
of preferred
shares to
common shares 87,812,786 87,812,786
Pro forma common
shares
outstanding 362,953,975 365,430,963
=========== ===========
Stockholders'
equity (Dollars
in thousands) $1,676,688 $1,468,960
Divided by pro
forma common
shares
outstanding ÷ 362,953,975 ÷ 365,430,963
Adjusted
stockholders'
equity per
common share $4.62 $4.02
===== =====
The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing. Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP.
Three Months Ended Year Ended December 31,
------------------ -----------------------
December 31, December 31, September 30, 2014 2013
2014 2013 2014
---- ---- ----
(Dollars in thousands)
Net income $64,644 $64,820 $56,599 $215,865 $188,715
Provision for
income taxes 39,738 36,205 35,522 134,099 68,983
Homebuilding
interest
amortized to
cost of sales
and interest
expense 39,354 32,909 28,959 123,112 121,778
Homebuilding
depreciation
and
amortization 1,206 1,094 1,215 4,790 3,455
Amortization of
stock-based
compensation 733 2,359 2,505 8,469 9,015
EBITDA 145,675 137,387 124,800 486,335 391,946
Add:
Cash
distributions
of income from
unconsolidated
joint ventures ? ? ? 1,875 3,375
Less:
Income (loss)
from
unconsolidated
joint ventures (326) (300) 557 (668) 949
Income from
financial
services
subsidiary 2,472 2,218 2,506 8,874 10,751
Adjusted Homebuilding EBITDA $143,529 $135,469 $121,737 $480,004 $383,621
======== ======== ======== ======== ========
Homebuilding revenues $753,644 $606,451 $604,849 $2,411,178 $1,914,609
======== ======== ======== ========== ==========
Adjusted Homebuilding EBITDA
Margin % 19.0% 22.3% 20.1% 19.9% 20.0%
==== ==== ==== ==== ====
The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
Three Months Ended Year Ended December 31,
------------------ -----------------------
December 31, December 31, September 30, 2014 2013
2014 2013 2014
---- ---- ----
(Dollars in thousands)
Net cash provided by (used in)
operating activities $(103,851) $(27,820) $(115,034) $(362,397) $(154,216)
Add:
Provision for
income taxes 39,738 36,205 35,522 134,099 68,983
Deferred income
tax provision (4,524) (35,725) (35,469) (98,998) (84,214)
Homebuilding
interest
amortized to
cost of sales
and interest
expense 39,354 32,909 28,959 123,112 121,778
Excess tax
benefits from
share-based
payment
arrangements 12,444 ? 960 13,404 ?
Less:
Income from
financial
services
subsidiary 2,472 2,218 2,506 8,874 10,751
Depreciation and
amortization
from financial
services
subsidiary 36 32 35 138 121
Loss on disposal
of property and
equipment 5 1 5 11 17
Net changes in operating assets
and liabilities:
Trade and other receivables (11,820) (5,218) 5,464 4,777 3,244
Mortgage loans held for sale 105,946 46,722 (10,534) 52,838 2,543
Inventories-owned 94,418 100,937 231,567 642,008 415,312
Inventories-not owned 13,143 11,619 5,090 33,027 43,319
Other assets (7,354) (564) (3,927) (9,306) (965)
Accounts payable 5,439 (6,470) (8,604) (9,314) (13,325)
Accrued liabilities (36,891) (14,875) (9,711) (34,223) (7,949)
Adjusted Homebuilding EBITDA $143,529 $135,469 $121,737 $480,004 $383,621
======== ======== ======== ======== ========
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/standard-pacific-corp-reports-2014-full-year-and-fourth-quarter-results-300031817.html
SOURCE Standard Pacific Corp.
