CALATLANTIC GROUP INC IRVINE, Calif., July 31, 2014 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the second quarter ended June 30, 2014.
2014 Second Quarter Highlights and Comparisons to the 2013 Second Quarter
-- Net income of $56.5 million, or $0.14 per diluted share, vs. $43.1
million, or $0.11 per diluted share
-- Pretax income of $91.8 million, up 80%
-- Net new orders of 1,524, up 1%; Dollar value of net new orders up 10%
-- Backlog of 2,304 homes, up 1%; Dollar value of backlog up 20%
-- 183 average active selling communities, up 12%
-- Home sale revenues of $591.7 million, up 36%
-- Average selling price of $479 thousand, up 21%
-- 1,236 new home deliveries, up 13%
-- Gross margin from home sales of 26.6%, compared to 23.7%
-- Operating margin from home sales of $89.7 million, or 15.2%, compared to
$48.2 million, or 11.1%
-- $212.0 million of land purchases and development costs, compared to
$311.2 million
Scott Stowell, the Company's President and Chief Executive Officer stated, "Our 2014 second quarter performance reflects the strength of our positioning and the continued execution of our strategy. Our early efforts to build a strong land position and to create an innovative product portfolio for the move-up homebuyer, combined with the unwavering focus of our team on constructing well built homes and providing an exceptional customer experience, have all contributed to our 80% increase in pretax profit and our solid operating margin, which was 15.2% for the 2014 second quarter."
Revenue. Revenues from home sales for the 2014 second quarter increased 36%, to $591.7 million, as compared to the prior year period, resulting primarily from a 21% increase in the Company's average home price to $479 thousand, the highest quarterly average home price in the Company's nearly 50 year history, and a 13% increase in new home deliveries. The increase in average home price was primarily attributable to a shift to more move-up product, a continued reduction in the use of sales incentives, and general price increases within a majority of the Company's markets. The increase in new home deliveries was driven by a 6% year-over-year increase in the number of homes in beginning backlog expected to close during the quarter and a 30% increase in speculative homes sold and closed compared to the prior year period.
Orders. Net new orders for the 2014 second quarter were up slightly from the 2013 second quarter, to 1,524 homes, with the dollar value of these orders up 10%. The Company's monthly sales absorption rate was 2.8 per community (2.6 per community excluding the impact of the acquisition of 99 homes under contract for sale in Austin, Texas) for the 2014 second quarter, compared to 2.5 per community for the 2014 first quarter. The increase in sales absorption rate from the 2014 first quarter to the 2014 second quarter was consistent with the seasonality we typically experience in our business. The Company's cancellation rate for the 2014 second quarter was 14%, compared to 11% for the 2013 second quarter and 14% for the 2014 first quarter. Our 2014 second quarter cancellation rate remains well below our average historical cancellation rate of approximately 21% over the last 10 years.
Backlog. The dollar value of homes in backlog increased 20% to $1.1 billion, or 2,304 homes, compared to $947.6 million, or 2,272 homes, for the 2013 second quarter, and increased 14% compared to $1.0 billion, or 2,016 homes, for the 2014 first quarter. The increase in year-over-year backlog value was driven primarily by an 18% increase in the average selling price of the homes in backlog, reflecting the continued execution of our move-up buyer focused strategy and pricing opportunities in select markets.
Land. During the 2014 second quarter, the Company spent $212.0 million on land purchases and development costs, compared to $311.2 million for the 2013 second quarter. The Company purchased $113.0 million of land, 1,309 homesites, of which 40% (based on homesites) was located in Florida, 28% in Texas, 16% in California, 13% in the Carolinas and 3% in Colorado. As of June 30, 2014, the Company owned or controlled 35,948 homesites, of which 24,104 were owned and actively selling or under development, 7,174 were controlled or under option, and the remaining 4,670 homesites were held for future development or for sale. The homesites owned that are actively selling or under development represent a 5.0 year supply based on the Company's deliveries for the trailing twelve months ended June 30, 2014.
Liquidity. The Company ended the quarter with $570 million of available liquidity, including $130 million of unrestricted homebuilding cash and a $440 million untapped revolving credit facility. The untapped revolving credit facility was amended on July 31, 2014 to, among other things, extend the maturity date to July 2018, increase the aggregate commitment to $450 million, and expand the accordion feature to permit the aggregate commitment to be increased to a maximum amount of $750 million, subject to the Company's future needs and the availability of additional bank capacity. The credit facility's financial covenants were not altered in connection with the amendment. The Company's homebuilding debt to book capitalization as of June 30, 2014 and 2013 was 53.8% and 53.5%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 51.6%* and 52.0%*, respectively. In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending June 30, 2014 and 2013 was 4.1x* and 5.8x*, respectively.
Earnings Conference Call
A conference call to discuss the Company's 2014 second quarter results will be held at 12:00 p.m. Eastern time August 1, 2014. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://ir.standardpacifichomes.com. The call will also be accessible via telephone by dialing (877) 723-9523 (domestic) or (719) 325-4749 (international); Passcode: 6252778. 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: 6252778.
About Standard Pacific
Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers. Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.
This news release contains forward-looking statements. These statements include but are not limited to statements regarding the strength of our land position and product portfolio; construction quality and customer experience; new home orders; deliveries; backlog; absorption rates; average home price; pricing power; 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
-----------------------------------
June 30, June 30, Percentage March 31, Percentage
2014 2013 or % Change 2014 or % Change
---- ---- ----------- ---- -----------
Operating Data (Dollars in thousands)
--------------
Deliveries 1,236 1,095 13% 995 24%
Average selling
price $479 $397 21% $449 7%
Home sale revenues $591,706 $434,308 36% $446,918 32%
Gross margin %
(including land
sales) 26.7% 23.4% 3.3% 25.8% 0.9%
Gross margin % from
home sales 26.6% 23.7% 2.9% 26.6% ?
31.7% 30.7% 1.0% 32.0% (0.3%)
Gross margin % from
home sales
(excluding interest
amortized to cost
of home sales)*
Incentive and stock-
based compensation
expense $6,724 $5,927 13% $5,028 34%
Selling expenses $28,782 $22,146 30% $22,699 27%
$32,329 $26,525 22% $30,863 5%
G&A expenses
(excluding
incentive and
stock-based
compensation
expenses)
SG&A expenses $67,835 $54,598 24% $58,590 16%
SG&A % from home
sales 11.5% 12.6% (1.1%) 13.1% (1.6%)
Operating margin
from home sales $89,675 $48,207 86% $60,083 49%
Operating margin %
from home sales 15.2% 11.1% 4.1% 13.4% 1.8%
Net new orders
(homes) 1,524 1,516 1% 1,311 16%
Net new orders
(dollar value) $713,347 $648,299 10% $633,818 13%
Average active
selling communities 183 164 12% 174 5%
Monthly sales
absorption rate per
community 2.8 3.1 (10%) 2.5 11%
Cancellation rate 14% 11% 3% 14% ?
Gross cancellations 247 184 34% 221 12%
Cancellations from
current quarter
sales 93 87 7% 90 3%
Backlog (homes) 2,304 2,272 1% 2,016 14%
Backlog (dollar
value) $1,138,886 $947,584 20% $1,001,385 14%
Cash flows (uses)
from operating
activities $(25,949) $(90,743) 71% $(117,563) 78%
Cash flows (uses)
from investing
activities $(36,050) $(125,253) 71% $10,286
Cash flows (uses)
from financing
activities $4,426 $10,319 (57%) $(50,902)
Land purchases
(incl. seller
financing) $113,001 $235,991 (52%) $144,744 (22%)
Adjusted
Homebuilding
EBITDA* $125,730 $82,376 53% $89,008 41%
Adjusted
Homebuilding EBITDA
Margin %* 21.2% 18.8% 2.4% 19.3% 1.9%
Homebuilding
interest incurred $37,641 $33,526 12% $38,786 (3%)
Homebuilding
interest
capitalized to
inventories owned $37,228 $32,782 14% $38,213 (3%)
Homebuilding
interest
capitalized to
investments in JVs $413 $744 (44%) $573 (28%)
Interest amortized
to cost of sales
(incl. cost of land
sales) $29,816 $30,662 (3%) $24,983 19%
As of
-----
June 30, December 31, Percentage
2014 2013 or % Change
---- ---- -----------
Balance Sheet Data (Dollars in thousands, except per share amounts)
------------------
Homebuilding cash
(including
restricted cash) $161,121 $376,949 (57%)
Inventories owned $2,902,840 $2,536,102 14%
Homesites owned and
controlled 35,948 35,175 2%
Homes under
construction 2,602 2,001 30%
Completed specs 347 327 6%
Deferred tax asset
valuation allowance $4,591 $4,591 ?
Homebuilding debt $1,834,837 $1,839,595 (0%)
Stockholders' equity $1,572,583 $1,468,960 7%
$4.28 $4.02 6%
Stockholders' equity
per share
(including if-
converted preferred
stock)*
Total consolidated
debt to book
capitalization 54.7% 56.9% (2.2%)
51.6% 49.9% 1.7%
Adjusted net
homebuilding debt
to total adjusted
book
capitalization*
(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 June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 2013 2014 2013
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
(Unaudited)
Homebuilding:
Home sale revenues $591,706 $434,308 $1,038,624 $789,434
Land sale revenues 780 4,373 14,061 6,968
Total revenues 592,486 438,681 1,052,685 796,402
------- ------- --------- -------
Cost of home sales (434,196) (331,503) (762,441) (612,115)
Cost of land sales (350) (4,416) (13,354) (6,999)
Total cost of
sales (434,546) (335,919) (775,795) (619,114)
-------- -------- -------- --------
Gross margin 157,940 102,762 276,890 177,288
------- ------- ------- -------
Gross margin % 26.7% 23.4% 26.3% 22.3%
Selling, general and
administrative
expenses (67,835) (54,598) (126,425) (100,892)
Income (loss) from
unconsolidated joint
ventures (462) 147 (899) 1,281
Other income
(expense) (363) (1,247) (376) 2,323
Homebuilding pretax income 89,280 47,064 149,190 80,000
------ ------ ------- ------
Financial Services:
Revenues 6,112 7,411 11,096 13,088
Expenses (3,760) (3,482) (7,200) (6,804)
Other income 214 151 375 253
Financial services pretax income 2,566 4,080 4,271 6,537
----- ----- ----- -----
Income before taxes 91,846 51,144 153,461 86,537
Provision for income taxes (35,383) (8,008) (58,839) (21,577)
------- ------ ------- -------
Net income 56,463 43,136 94,622 64,960
Less: Net income allocated to preferred
shareholder (13,496) (14,293) (22,650) (23,991)
Less: Net income allocated to unvested
restricted stock (77) (66) (134) (82)
--- --- ---- ---
Net income available to common stockholders $42,890 $28,777 $71,838 $40,887
======= ======= ======= =======
Income Per Common Share:
Basic $0.15 $0.12 $0.26 $0.18
Diluted $0.14 $0.11 $0.23 $0.16
Weighted Average Common Shares Outstanding:
Basic 279,075,416 243,171,726 278,514,992 228,749,443
Diluted 316,727,592 281,708,696 316,451,929 267,274,060
87,812,786 120,779,819 87,812,786 134,221,626
Weighted average additional common shares
outstanding if preferred shares converted to
common shares
404,540,378 402,488,515 404,264,715 401,495,686
Total weighted average diluted common shares
outstanding if preferred shares converted to
common shares
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2014 2013
---- ----
(Dollars in thousands)
ASSETS (Unaudited)
Homebuilding:
Cash and equivalents $129,736 $355,489
Restricted cash 31,385 21,460
Trade and other
receivables 25,446 14,431
Inventories:
Owned 2,902,840 2,536,102
Not owned 89,906 98,341
Investments in
unconsolidated joint
ventures 50,278 66,054
Deferred income taxes,
net 334,095 375,400
Other assets 46,353 45,977
Total
Homebuilding
Assets 3,610,039 3,513,254
--------- ---------
Financial Services:
Cash and equivalents 17,803 7,802
Restricted cash 1,295 1,295
Mortgage loans held for
sale, net 79,343 122,031
Mortgage loans held for
investment, net 12,233 12,220
Other assets 7,451 5,503
Total Financial
Services
Assets 118,125 148,851
------- -------
Total
Assets $3,728,164 $3,662,105
========== ==========
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable $41,920 $35,771
Accrued
liabilities 209,859 214,266
Secured project debt
and other notes
payable 5,054 6,351
Senior notes payable 1,829,783 1,833,244
Total
Homebuilding
Liabilities 2,086,616 2,089,632
--------- ---------
Financial Services:
Accounts payable and
other liabilities 2,386 2,646
Mortgage credit
facilities 66,579 100,867
Total Financial
Services
Liabilities 68,965 103,513
------ -------
Total
Liabilities 2,155,581 2,193,145
--------- ---------
Equity:
Stockholders' Equity:
Preferred stock,
$0.01 par value;
10,000,000 shares
authorized; 267,829
shares issued and
outstanding
at June 30, 2014
and December 31,
2013 3 3
Common stock, $0.01
par value;
600,000,000 shares
authorized;
279,287,853 and
277,618,177 shares
issued and
outstanding at
June 30, 2014 and
December 31, 2013,
respectively 2,793 2,776
Additional paid-in
capital 1,363,798 1,354,814
Accumulated
earnings 205,989 111,367
Total Equity 1,572,583 1,468,960
--------- ---------
Total
Liabilities
and
Equity $3,728,164 $3,662,105
========== ==========
INVENTORIES
June 30, December 31,
2014 2013
---- ----
(Dollars in thousands)
Inventories
Owned: (Unaudited)
Land
and
land
under
development $1,883,837 $1,771,661
Homes
completed
and
under
construction 876,199 628,371
Model
homes 142,804 136,070
Total
inventories
owned $2,902,840 $2,536,102
========== ==========
Inventories
Owned
by
Segment:
California $1,274,707 $1,182,520
Southwest 742,513 603,303
Southeast 885,620 750,279
Total
inventories
owned $2,902,840 $2,536,102
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 2013 2014 2013
---- ---- ---- ----
(Dollars in thousands)
(Unaudited)
Cash Flows From Operating Activities:
Net income $56,463 $43,136 $94,622 $64,960
Adjustments to
reconcile net income
to net cash
provided by (used
in) operating
activities:
Amortization of
stock-based
compensation 2,859 2,444 5,231 3,975
Deferred income
tax provision 35,383 7,809 59,005 21,183
Other operating
activities 3,595 2,084 5,211 3,496
Changes in cash
and
equivalents
due to:
Trade and other receivables 6,416 (10,732) (11,133) (19,648)
Mortgage loans held for sale (9,364) 11,818 42,574 11,958
Inventories - owned (127,264) (156,993) (316,023) (230,023)
Inventories - not owned (6,629) (4,770) (14,794) (9,710)
Other assets (1,142) (3,083) (1,975) (1,254)
Accounts payable 4,773 1,198 6,149 (380)
Accrued liabilities 8,961 16,346 (12,379) 6,239
Net cash provided
by (used in)
operating
activities (25,949) (90,743) (143,512) (149,204)
------- ------- -------- --------
Cash Flows From Investing Activities:
Investments in
unconsolidated
homebuilding joint
ventures (2,890) (8,200) (5,677) (10,752)
Distributions of
capital from
unconsolidated joint
ventures ? 249 14,808 1,569
Net cash paid for
acquisitions (33,408) (113,793) (33,408) (113,793)
Other investing
activities 248 (3,509) (1,487) (3,878)
Net cash provided
by (used in)
investing
activities (36,050) (125,253) (25,764) (126,854)
------- -------- ------- --------
Cash Flows From Financing Activities:
Change in restricted
cash (4,687) 2,725 (9,925) 2,063
Principal payments on
secured project debt
and other notes
payable (171) (124) (1,061) (7,217)
Principal payments on
senior notes payable (4,971) ? (4,971) ?
Net proceeds from
(payments on)
mortgage credit
facilities 14,082 3,688 (34,288) 4,805
? (347) ? (347)
Payment of issuance
costs in connection
with preferred
shareholder equity
transaction
Proceeds from the
exercise of stock
options 173 4,377 3,769 10,835
Net cash provided
by (used in)
financing
activities 4,426 10,319 (46,476) 10,139
----- ------ ------- ------
Net increase (decrease) in cash and
equivalents (57,573) (205,677) (215,752) (265,919)
Cash and equivalents at beginning of period 205,112 286,313 363,291 346,555
Cash and equivalents at end of period $147,539 $80,636 $147,539 $80,636
======== ======= ======== =======
Cash and equivalents at end of period $147,539 $80,636 $147,539 $80,636
Homebuilding restricted cash at end of period 31,385 25,462 31,385 25,462
Financial services restricted cash at end of
period 1,295 1,795 1,295 1,795
Cash and equivalents and restricted cash at
end of period $180,219 $107,893 $180,219 $107,893
======== ======== ======== ========
REGIONAL OPERATING DATA
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
New homes delivered:
California 439 $662 419 $538 5% 23%
Arizona 60 309 57 249 5% 24%
Texas 179 466 155 399 15% 17%
Colorado 58 510 38 441 53% 16%
Southwest 297 443 250 371 19% 19%
Florida 265 368 239 261 11% 41%
Carolinas 235 306 187 289 26% 6%
Southeast 500 339 426 273 17% 24%
Consolidated total 1,236 479 1,095 397 13% 21%
Unconsolidated joint
ventures ? ? 7 474 (100%) ?
Total (including joint ventures) 1,236 $479 1,102 $397 12% 21%
===== ==== ===== ==== === ===
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
New homes delivered:
California 778 $645 819 $515 (5%) 25%
Arizona 123 307 120 249 3% 23%
Texas 328 443 288 375 14% 18%
Colorado 111 498 81 419 37% 19%
Southwest 562 424 489 352 15% 20%
Florida 500 360 422 260 18% 38%
Carolinas 391 303 312 275 25% 10%
Southeast 891 335 734 266 21% 26%
Consolidated total 2,231 466 2,042 387 9% 20%
Unconsolidated joint
ventures ? ? 21 498 (100%) ?
Total (including joint ventures) 2,231 $466 2,063 $388 8% 20%
===== ==== ===== ==== === ===
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
Net new orders:
California 498 $611 513 $590 (3%) 4%
Arizona 75 309 78 321 (4%) (4%)
Texas 359 436 216 411 66% 6%
Colorado 75 526 65 460 15% 14%
Southwest 509 431 359 400 42% 8%
Florida 258 420 443 331 (42%) 27%
Carolinas 259 314 201 275 29% 14%
Southeast 517 367 644 313 (20%) 17%
Consolidated total 1,524 468 1,516 428 1% 9%
Unconsolidated joint
ventures ? ? 1 646 (100%) ?
Total (including joint ventures) 1,524 $468 1,517 $428 0% 9%
===== ==== ===== ==== === ===
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
Homes ASP Homes ASP Homes ASP
----- --- ----- --- ----- ---
(Dollars in thousands)
Net new orders:
California 971 $628 995 $563 (2%) 12%
Arizona 142 307 153 302 (7%) 2%
Texas 594 447 458 397 30% 13%
Colorado 128 507 127 442 1% 15%
Southwest 864 433 738 385 17% 12%
Florida 541 407 736 316 (26%) 29%
Carolinas 459 311 441 272 4% 14%
Southeast 1,000 363 1,177 299 (15%) 21%
Consolidated total 2,835 475 2,910 411 (3%) 16%
Unconsolidated joint
ventures ? ? 10 538 (100%) ?
Total (including joint ventures) 2,835 $475 2,920 $412 (3%) 15%
===== ==== ===== ==== === ===
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
Average number of selling communities
during the period:
California 48 46 4% 47 46 2%
Arizona 10 9 11% 10 8 25%
Texas 38 30 27% 37 30 23%
Colorado 11 8 38% 11 7 57%
Southwest 59 47 26% 58 45 29%
Florida 45 41 10% 43 39 10%
Carolinas 31 30 3% 31 31 ?
Southeast 76 71 7% 74 70 6%
Consolidated total 183 164 12% 179 161 11%
=== === === === === ===
At June 30,
-----------
2014 2013 % Change
---- ---- --------
Homes Dollar Value Homes Dollar Value Homes Dollar Value
----- ------------ ----- ------------ ----- ------------
(Dollars in thousands)
Backlog:
California 589 $378,962 616 $366,617 (4%) 3%
Arizona 124 43,678 110 36,330 13% 20%
Texas 556 261,384 374 156,036 49% 68%
Colorado 125 67,005 121 57,425 3% 17%
Southwest 805 372,067 605 249,791 33% 49%
Florida 545 262,827 680 220,621 (20%) 19%
Carolinas 365 125,030 371 110,555 (2%) 13%
Southeast 910 387,857 1,051 331,176 (13%) 17%
Consolidated total 2,304 1,138,886 2,272 947,584 1% 20%
Unconsolidated joint ventures ? ? 1 586 (100%) (100%)
Total (including joint ventures) 2,304 $1,138,886 2,273 $948,170 1% 20%
===== ========== ===== ======== === ===
At June 30,
-----------
2014 2013 % Change
---- ---- --------
Homesites owned and controlled:
9,603 10,150 (5%)
California
Arizona 2,242 1,975 14%
5,204 5,220 (0%)
Texas
1,196 1,268 (6%)
Colorado
1,124 1,124 ?
Nevada
9,766 9,587 2%
Southwest
12,138 10,481 16%
Florida
4,441 4,908 (10%)
Carolinas
16,579 15,389 8%
Southeast
35,948 35,126 2%
Total
(including
joint
ventures)
Homesites
owned 28,774 27,497 5%
Homesites
optioned or
subject to
contract 6,909 7,039 (2%)
Joint venture
homesites 265 590 (55%)
Total
(including
joint
ventures) 35,948 35,126 2%
====== ====== ===
Homesites owned:
Raw lots 6,747 7,300 (8%)
Homesites
under
development 9,373 8,027 17%
Finished
homesites 6,605 5,865 13%
Under
construction
or completed
homes 3,548 2,908 22%
Held for sale 2,501 3,397 (26%)
Total 28,774 27,497 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 the 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
------------------
June 30, Gross June 30, Gross March 31, Gross
2014 Margin % 2013 Margin % 2014 Margin %
---- ------- ---- ------- ---- -------
(Dollars in thousands)
Home sale
revenues $591,706 $434,308 $446,918
Less: Cost of
home sales (434,196) (331,503) (328,245)
-------- -------- --------
Gross margin
from home
sales 157,510 26.6% 102,805 23.7% 118,673 26.6%
Add:
Capitalized
interest
included in
cost of home
sales
29,812 5.1% 30,337 7.0% 24,368 5.4%
------ ------ ------
Gross margin
from home
sales,
excluding
interest
amortized to
cost of home
sales
$187,322 31.7% $133,142 30.7% $143,041 32.0%
======== ======== ========
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.
June 30, March 31, December 31, June 30,
2014 2014 2013 2013
---- ---- ---- ----
(Dollars in thousands)
Total consolidated debt $1,901,416 $1,892,491 $1,940,462 $1,633,985
Less:
(66,579) (52,497) (100,867) (96,964)
Financial services
indebtedness
(161,121) (221,400) (376,949) (90,589)
Homebuilding cash
Adjusted net homebuilding
debt 1,673,716 1,618,594 1,462,646 1,446,432
Stockholders' equity 1,572,583 1,513,087 1,468,960 1,337,468
--------- --------- --------- ---------
Total adjusted book
capitalization $3,246,299 $3,131,681 $2,931,606 $2,783,900
========== ========== ========== ==========
Total consolidated debt to
book capitalization 54.7% 55.6% 56.9% 55.0%
==== ==== ==== ====
Adjusted net homebuilding
debt to total adjusted
book capitalization 51.6% 51.7% 49.9% 52.0%
==== ==== ==== ====
Homebuilding debt $1,834,837 $1,537,021
LTM adjusted homebuilding
EBITDA 452,160 266,524
------- -------
Homebuilding debt to
adjusted homebuilding
EBITDA 4.1x 5.8x
==== ====
The table set forth below calculates pro forma stockholders' equity per common share. The Company believes that the pro forma 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 effect to the conversion of our outstanding preferred shares assuming full conversion to common stock.
June 30, March 31, December 31,
2014 2014 2013
---- ---- ----
Actual common
shares
outstanding 279,287,853 278,776,082 277,618,177
Add: Conversion of
preferred shares
to common shares 87,812,786 87,812,786 87,812,786
Pro forma common
shares
outstanding 367,100,639 366,588,868 365,430,963
=========== =========== ===========
Stockholders'
equity (Dollars
in thousands) $1,572,583 $1,513,087 $1,468,960
Divided by pro
forma common
shares
outstanding ÷ 367,100,639 ÷ 366,588,868 ÷ 365,430,963
Pro forma
stockholders'
equity per common
share $4.28 $4.13 $4.02
===== ===== =====
The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing. Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP.
Three Months Ended LTM Ended June 30,
------------------ ------------------
June 30, June 30, March 31, 2014 2013
2014 2013 2014
---- ---- ----
(Dollars in thousands)
Net income $56,463 $43,136 $38,159 $218,377 $573,595
Provision
(benefit) for
income taxes 35,383 8,008 23,456 106,245 (432,033)
Homebuilding
interest
amortized to
cost of sales
and interest
expense 29,816 30,662 24,983 118,030 121,658
Homebuilding
depreciation
and
amortization 1,224 702 1,145 4,494 2,537
Amortization of
stock-based
compensation 2,859 2,444 2,372 10,271 8,167
EBITDA 125,745 84,952 90,115 457,417 273,924
Add:
Cash
distributions
of income from
unconsolidated
joint ventures 1,875 1,500 ? 1,875 7,125
Less:
Income (loss)
from
unconsolidated
joint ventures (462) 147 (437) (1,231) 1,859
Income from
financial
services
subsidiary 2,352 3,929 1,544 8,363 12,666
Adjusted Homebuilding EBITDA $125,730 $82,376 $89,008 $452,160 $266,524
======== ======= ======= ======== ========
Homebuilding revenues $592,486 $438,681 $460,199 $2,170,892 $1,534,786
======== ======== ======== ========== ==========
Adjusted Homebuilding EBITDA
Margin % 21.2% 18.8% 19.3% 20.8% 17.4%
==== ==== ==== ==== ====
The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
Three Months Ended LTM Ended June 30,
------------------ ------------------
June 30, June 30, March 31, 2014 2013
2014 2013 2014
---- ---- ----
(Dollars in thousands)
Net cash provided by (used in)
operating activities $(25,949) $(90,743) $(117,563) $(148,524) $(333,602)
Add:
Provision
(benefit) for
income taxes 35,383 199 23,456 114,054 (439,842)
Deferred income
tax benefit
(provision) (35,383) ? (23,622) (129,845) 440,626
Homebuilding
interest
amortized to
cost of sales
and interest
expense 29,816 30,662 24,983 118,030 121,658
Less:
Income from
financial
services
subsidiary 2,352 3,929 1,544 8,363 12,666
Depreciation and
amortization
from financial
services
subsidiary 34 28 33 132 120
Loss on disposal
of property and
equipment ? 1 1 2 50
Net changes in operating assets
and liabilities:
Trade and other receivables (6,416) 10,732 17,549 (5,271) 11,385
Mortgage loans held for sale 9,364 (11,818) (51,938) (28,073) 38,484
Inventories-owned 127,264 156,993 188,759 501,312 430,475
Inventories-not owned 6,629 4,770 8,165 48,403 37,762
Other assets 1,142 3,083 833 (244) (1,441)
Accounts payable (4,773) (1,198) (1,376) (19,854) (5,690)
Accrued liabilities (8,961) (16,346) 21,340 10,669 (20,455)
Adjusted Homebuilding EBITDA $125,730 $82,376 $89,008 $452,160 $266,524
======== ======= ======= ======== ========
SOURCE Standard Pacific Corp.
