CALATLANTIC GROUP INC 
By IRVINE, Calif., Feb. 5, 2014 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the year and fourth quarter ended December 31, 2013.
2013 Highlights and Comparisons to 2012
-- Net income of $188.7 million, or $0.47 per diluted share, vs. net income
of $531.4 million, or $1.44 per diluted share (2012 diluted earnings per
share of $0.21*, excluding $454 million deferred tax asset valuation
allowance reversal)
-- Pretax income of $257.7 million, up 230%
-- Net new orders of 4,898, up 22%
-- Backlog of 1,700 homes, up 21%; Dollar value of backlog up 55%
-- 166 average active selling communities, up 7%
-- Home sale revenues of $1,899.0 million, up 60%
-- Average selling price of $413 thousand, up 14%
-- 4,602 new home deliveries, up 40%
-- Gross margin from home sales of 24.6%, compared to 20.5%
-- SG&A rate from home sales of 12.1%, compared to 14.5%
-- Operating margin from home sales of $236.5 million, or 12.5%, compared
to $71.4 million, or 6.0%
-- $807.9 million of land purchases and development costs, compared to
$719.6 million
2013 Fourth Quarter Highlights and Comparisons to the 2012 Fourth Quarter
-- Net income of $64.8 million, or $0.16 per diluted share, vs. $486.9
million, or $1.22 per diluted share ($0.08* per diluted share, excluding
$454 million deferred tax asset valuation allowance reversal)
-- Pretax income of $101.0 million, up 205%
-- Net new orders of 878, down 11%; Dollar value of net new orders up 9%
-- 173 average active selling communities, up 15%
-- Home sale revenues of $598.5 million, up 58%
-- Average selling price of $446 thousand, up 15%
-- 1,343 new home deliveries, up 38%
-- Gross margin from home sales of 26.8%, compared to 20.8%
-- SG&A rate from home sales of 11.3%, a 180 basis point improvement
-- Operating margin from home sales of $92.6 million, or 15.5%, compared to
$29.1 million, or 7.7%
-- $216.0 million of land purchases and development costs, compared to
$270.7 million
Scott Stowell, the Company's Chief Executive Officer commented, "I am pleased with our strong financial performance in 2013, the fourth most profitable year in Standard Pacific Homes' nearly 50-year history and our highest annual pretax earnings since 2005." Mr. Stowell added, "The execution of our strategy continues to drive top line revenue and profitability and is reflected in our strong results."
Revenues from home sales for the 2013 fourth quarter increased 58%, to $598.5 million, as compared to the prior year period, resulting primarily from a 38% increase in new home deliveries and a 15% increase in the Company's consolidated average home price to $446 thousand. The increase in average home price was primarily attributable to general price increases within a majority of the Company's markets and a decrease in the use of sales incentives. The increase in new home deliveries was driven by a 50% year-over-year increase in the number of homes in beginning backlog expected to close during the quarter.
Gross margin from home sales for the 2013 fourth quarter increased to 26.8% compared to 20.8% in the prior year period. The 600 basis point year-over-year increase was primarily attributable to price increases and a decrease in the use of sales incentives. Excluding previously capitalized interest costs, gross margin from home sales was 32.2%* for the 2013 fourth quarter versus 28.9%* for the 2012 fourth quarter.
The Company's 2013 fourth quarter SG&A expenses (including Corporate G&A) were $67.9 million compared to $49.4 million, down 180 basis points as a percentage of home sale revenues to 11.3%, compared to 13.1% for the 2012 fourth quarter. The improvement in the Company's SG&A rate was primarily due to a 58% increase in revenues from home sales and reflects the operating leverage inherent in our business.
Net new orders for the 2013 fourth quarter decreased 11% from the 2012 fourth quarter to 878 homes. The year-over-year decrease is primarily attributable to a decrease in the Company's monthly sales absorption rate to 1.7 per community for the 2013 fourth quarter, compared to 2.2 per community in both the 2012 fourth quarter and the 2013 third quarter. The Company's cancellation rate for the 2013 fourth quarter was 21%, compared to 15% for the 2012 fourth quarter and 20% for the 2013 third quarter. Our 2013 fourth quarter cancellation rate increased from the historically low levels we experienced in the prior year period, but was consistent with our average historical cancellation rate over the last 10 years. As a percentage of beginning backlog our cancellation rate was 7.9% in the quarter, a 20 basis point increase from the same period last year.
The dollar value of homes in backlog increased 55% to $800.5 million, or 1,700 homes, compared to $515.5 million, or 1,404 homes, as of the end of fiscal year 2012, and was down 17% compared to $964.1 million, or 2,165 homes, as of the end of the 2013 third quarter. The increase in year-over-year backlog value was driven primarily by a 28% increase in the average selling price of the homes in backlog, reflecting the continued execution of our strategy to focus on the move-up buyer, the shift to more to-be-built homes that have a longer construction cycle, and pricing opportunities in select markets.
Cash used in operating activities was $27.8 million for the 2013 fourth quarter versus $112.0 million in the 2012 fourth quarter. During the 2013 fourth quarter, the Company spent $216.0 million on land purchases and development costs, compared to $270.7 million for the 2012 fourth quarter. Excluding land purchases and development costs, cash inflows from operating activities for the 2013 fourth quarter were $185.7 million* versus $158.8 million* in the 2012 fourth quarter. The year-over-year increase in cash inflows from operating activities (excluding land purchases and development costs) was primarily due to a 58% increase in home sale revenues.
The Company purchased $116.9 million of land (2,231 homesites) during the 2013 fourth quarter, of which 38% (based on homesites) was located in Florida, 22% in the Carolinas, 20% in Texas and 16% in California, with the balance spread throughout the Company's other operations. As of December 31, 2013, the Company owned or controlled 35,175 homesites, of which 22,790 are owned and actively selling or under development, 7,442 are controlled or under option, and the remaining 4,943 homesites are 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 year ended December 31, 2013.
Earnings Conference Call
A conference call to discuss the Company's 2013 full year and fourth quarter results will be held at 12:00 p.m. Eastern time February 6, 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) 638-9069 (domestic) or (647) 438-1132 (international); Passcode: 2285500. 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: 2285500.
About Standard Pacific
Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers. Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.
This news release contains forward-looking statements. These statements include but are not limited to statements regarding new home orders, deliveries, backlog, absorption rates, average home price, pricing power, revenue, profitability, cash flow, liquidity, gross margin, overhead expenses and other costs; community count; product mix; the benefit of, and execution on, our strategy; supply; demand; our future performance and the future condition of the economy and the housing market. 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, 2012 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
2013 2012 or % Change 2013 or % Change
---- ---- ----------- ---- -----------
Operating Data (Dollars in thousands)
--------------
Deliveries 1,343 973 38% 1,217 10%
Average selling price $446 $388 15% $420 6%
Home sale revenues $598,496 $377,674 58% $511,059 17%
Gross margin % (including land
sales) 26.8% 18.7% 8.1% 25.3% 1.5%
Gross margin % from home sales 26.8% 20.8% 6.0% 25.3% 1.5%
Gross margin % from home sales
(excluding interest amortized
to cost of home sales)*
32.2% 28.9% 3.3% 31.2% 1.0%
Incentive and stock-based
compensation expense $9,442 $7,013 35% $8,023 18%
Selling expenses $28,114 $19,362 45% $24,301 16%
G&A expenses (excluding incentive
and stock-based
compensation expenses)
$30,304 $23,067 31% $29,615 2%
SG&A expenses $67,860 $49,442 37% $61,939 10%
SG&A % from home sales 11.3% 13.1% (1.8%) 12.1% (0.8%)
Operating margin from home sales $92,648 $29,127 218% $67,426 37%
Operating margin % from home
sales 15.5% 7.7% 7.8% 13.2% 2.3%
Net new orders (homes) 878 983 (11%) 1,110 (21%)
Net new orders (dollar value) $418,828 $385,461 9% $510,668 (18%)
Average active selling
communities 173 150 15% 168 3%
Monthly sales absorption rate per
community 1.7 2.2 (23%) 2.2 (23%)
Cancellation rate 21% 15% 6% 20% 1%
Gross cancellations 234 178 31% 272 (14%)
Cancellations from current
quarter sales 64 71 (10%) 124 (48%)
Backlog (homes) 1,700 1,404 21% 2,165 (21%)
Backlog (dollar value) $800,494 $515,469 55% $964,148 (17%)
Cash flows (uses) from operating
activities $(27,820) $(111,980) 75% $22,808
Cash flows (uses) from investing
activities $(14,707) $(1,610) (813%) $(2,296) (541%)
Cash flows (uses) from financing
activities $42,690 $(19,311) $261,980 (84%)
Land purchases (incl. seller
financing and JV purchases) $116,856 $204,796 (43%) $69,196 69%
Adjusted Homebuilding EBITDA* $135,469 $68,802 97% $101,953 33%
Adjusted Homebuilding EBITDA
Margin %* 22.3% 16.4% 5.9% 19.9% 2.4%
Homebuilding interest incurred $37,546 $35,095 7% $34,766 8%
Homebuilding interest capitalized
to inventories owned $36,889 $33,664 10% $34,118 8%
Homebuilding interest capitalized
to investments in JVs $657 $851 (23%) $648 1%
Interest amortized to cost of
sales (incl. cost of land sales) $32,909 $33,784 (3%) $30,322 9%
For the Year Ended
------------------
December 31, December 31, Percentage
2013 2012 or % Change
---- ---- -----------
Operating Data (Dollars in thousands)
--------------
Deliveries 4,602 3,291 40%
Average selling price $413 $362 14%
Home sale revenues $1,898,989 $1,190,252 60%
Gross margin % (including land
sales) 24.5% 19.7% 4.8%
Gross margin % from home sales 24.6% 20.5% 4.1%
Gross margin % from home sales
(excluding interest amortized
to cost of home sales)*
31.0% 28.9% 2.1%
Incentive and stock-based
compensation expense $28,240 $20,362 39%
Selling expenses $93,005 $65,608 42%
G&A expenses (excluding incentive
and stock-based
compensation expenses)
$109,446 $86,237 27%
SG&A expenses $230,691 $172,207 34%
SG&A % from home sales 12.1% 14.5% (2.4%)
Operating margin from home sales $236,501 $71,415 231%
Operating margin % from home
sales 12.5% 6.0% 6.5%
Net new orders (homes) 4,898 4,014 22%
Net new orders (dollar value) $2,126,355 $1,445,962 47%
Average active selling
communities 166 155 7%
Monthly sales absorption rate per
community 2.5 2.2 14%
Cancellation rate 15% 13% 2%
Gross cancellations 852 621 37%
Cancellations from current year
sales 361 289 25%
Cash flows (uses) from operating
activities $(154,216) $(283,116) 46%
Cash flows (uses) from investing
activities $(143,857) $(105,205) (37%)
Cash flows (uses) from financing
activities $314,809 $324,354 (3%)
Land purchases (incl. seller
financing and JV purchases) $493,583 $542,106 (9%)
Adjusted Homebuilding EBITDA* $383,621 $193,903 98%
Adjusted Homebuilding EBITDA
Margin %* 20.0% 15.7% 4.3%
Homebuilding interest incurred $140,865 $141,827 (1%)
Homebuilding interest capitalized
to inventories owned $137,990 $129,136 7%
Homebuilding interest capitalized
to investments in JVs $2,875 $6,295 (54%)
Interest amortized to cost of
sales (incl. cost of land sales) $121,778 $103,902 17%
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands, except per share
amounts)
(Unaudited)
Homebuilding:
Home sale
revenues $598,496 $377,674 $1,898,989 $1,190,252
Land sale revenues 7,955 42,169 15,620 46,706
----- ------ ------ ------
Total revenues 606,451 419,843 1,914,609 1,236,958
------- ------- --------- ---------
Cost of home sales (437,988) (299,105) (1,431,797) (946,630)
Cost of land sales (5,945) (42,196) (13,616) (46,654)
------ ------- ------- -------
Total cost of sales (443,933) (341,301) (1,445,413) (993,284)
-------- -------- --------- --------
Gross margin 162,518 78,542 469,196 243,674
------- ------ ------- -------
Gross margin % 26.8% 18.7% 24.5% 19.7%
Selling, general
and administrative
expenses (67,860) (49,442) (230,691) (172,207)
Income (loss) from
unconsolidated
joint ventures (300) 617 949 (2,090)
Interest expense ? (580) ? (6,396)
Other income
(expense) 4,191 (44) 6,815 4,664
----- --- ----- -----
Homebuilding pretax income 98,549 29,093 246,269 67,645
------ ------ ------- ------
Financial Services:
Revenues 5,983 7,051 24,910 21,300
Expenses (3,765) (3,110) (14,159) (11,062)
Other income 258 87 678 304
--- --- --- ---
Financial services pretax income 2,476 4,028 11,429 10,542
----- ----- ------ ------
Income before taxes 101,025 33,121 257,698 78,187
(Provision) benefit for income taxes (36,205) 453,804 (68,983) 453,234
------- ------- ------- -------
Net income 64,820 486,925 188,715 531,421
Less: Net income allocated to preferred
shareholder (15,570) (199,646) (57,386) (224,408)
Less: Net income allocated to unvested
restricted stock (99) (489) (265) (410)
--- ---- ---- ----
Net income available to common
stockholders $49,151 $286,790 $131,064 $306,603
======= ======== ======== ========
Income Per Common Share:
Basic $0.18 $1.35 $0.52 $1.52
Diluted $0.16 $1.22 $0.47 $1.44
Weighted Average Common Shares
Outstanding:
Basic 277,212,473 212,332,054 253,118,247 201,953,799
Diluted 315,284,731 250,562,775 291,173,953 220,518,897
Weighted average additional common
shares outstanding if preferred shares
converted to common shares
87,812,786 147,812,786 110,826,557 147,812,786
Total weighted average diluted common
shares outstanding if preferred shares
converted to common shares
403,097,517 398,375,561 402,000,510 368,331,683
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2013 2012
---- ----
(Dollars in thousands)
ASSETS (Unaudited)
Homebuilding:
Cash and
equivalents $355,489 $339,908
Restricted
cash 21,460 26,900
Trade and other
receivables 14,431 10,724
Inventories:
Owned 2,536,102 1,971,418
Not owned 98,341 71,295
Investments in
unconsolidated
joint ventures 66,054 52,443
Deferred income
taxes, net 375,400 455,372
Other
assets 45,977 41,918
Total
Homebuilding
Assets 3,513,254 2,969,978
--------- ---------
Financial Services:
Cash and
equivalents 7,802 6,647
Restricted
cash 1,295 2,420
Mortgage loans
held for sale,
net 122,031 119,549
Mortgage loans
held for
investment, net 12,220 9,923
Other
assets 5,503 4,557
Total
Financial
Services
Assets 148,851 143,096
------- -------
Total
Assets $3,662,105 $3,113,074
========== ==========
LIABILITIES AND EQUITY
Homebuilding:
Accounts
payable $35,771 $22,446
Accrued
liabilities 214,266 198,144
Secured project
debt and other
notes payable 6,351 11,516
Senior notes
payable 1,833,244 1,530,502
Total
Homebuilding
Liabilities 2,089,632 1,762,608
--------- ---------
Financial Services:
Accounts payable
and other
liabilities 2,646 2,491
Mortgage credit
facilities 100,867 92,159
Total
Financial
Services
Liabilities 103,513 94,650
------- ------
Total
Liabilities 2,193,145 1,857,258
--------- ---------
Equity:
Stockholders'
Equity:
Preferred
stock, $0.01
par value;
10,000,000
shares
authorized;
267,829 and
450,829
shares issued
and
outstanding
at December
31, 2013 and
2012,
respectively 3 5
Common stock,
$0.01 par
value;
600,000,000
shares
authorized;
277,618,177
and
213,245,488
shares
issued and
outstanding
at December
31, 2013 and
2012,
respectively 2,776 2,132
Additional
paid-in
capital 1,354,814 1,333,255
Accumulated
earnings
(deficit) 111,367 (77,348)
Accumulated
other
comprehensive
loss, net of
tax ? (2,228)
--- ------
Total
Equity 1,468,960 1,255,816
--------- ---------
Total
Liabilities
and
Equity $3,662,105 $3,113,074
========== ==========
INVENTORIES
December 31, December 31,
2013 2012
---- ----
(Dollars in thousands)
Inventories
Owned: (Unaudited)
Land and land
under
development $1,771,661 $1,444,161
Homes
completed and
under
construction 628,371 427,196
Model homes 136,070 100,061
Total
inventories
owned $2,536,102 $1,971,418
========== ==========
Inventories
Owned by
Segment:
California $1,182,520 $1,086,159
Southwest 603,303 461,201
Southeast 750,279 424,058
Total
inventories
owned $2,536,102 $1,971,418
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(Dollars in thousands)
(Unaudited)
Cash Flows From Operating
Activities:
Net income $64,820 $486,925 $188,715 $531,421
Adjustments to
reconcile net
income to net
cash
provided by
(used in)
operating
activities:
Amortization
of stock-
based
compensation 2,359 2,633 9,015 7,151
Deposit write-
offs ? ? ? 133
Deferred
income taxes 35,725 (454,000) 84,214 (454,000)
Other
operating
activities 1,427 2,679 6,019 8,517
Changes in
cash and
equivalents
due to:
Trade and other receivables 5,218 12,944 (3,244) 801
Mortgage loans held for sale (46,722) (32,323) (2,543) (46,339)
Inventories - owned (100,937) (129,807) (415,312) (315,639)
Inventories -not owned (11,619) (20,861) (43,319) (31,551)
Other assets 564 1,696 965 2,618
Accounts payable 6,470 5,988 13,325 4,617
Accrued liabilities 14,875 12,146 7,949 9,155
Net cash
provided by
(used in)
operating
activities (27,820) (111,980) (154,216) (283,116)
------- -------- ------- -------
Cash Flows From Investing
Activities:
Investments in
unconsolidated
homebuilding
joint
ventures (11,386) (4,380) (24,328) (57,458)
Distributions
of capital
from
unconsolidated
joint
ventures 2,444 2,590 4,763 14,530
Net cash paid
for
acquisitions (2,469) ? (116,262) (60,752)
Other
investing
activities (3,296) 180 (8,030) (1,525)
Net cash
provided by
(used in)
investing
activities (14,707) (1,610) (143,857) (105,205)
------- ------ ------- -------
Cash Flows From Financing
Activities:
Change in
restricted
cash 6,564 (1,687) 6,565 3,347
Principal
payments on
secured
project debt
and other
notes payable (1,045) (84) (8,334) (866)
Principal
payments on
senior
subordinated
notes payable ? (39,613) ? (49,603)
Proceeds from
the issuance
of senior
notes payable ? ? 300,000 253,000
Payment of
debt issuance
costs (1,271) (3,680) (5,316) (11,761)
Net proceeds
from
(payments on)
mortgage
credit
facilities 36,687 21,124 8,708 45,351
Proceeds from
the issuance
of common
stock ? ? ? 75,849
Payment of
common stock
issuance
costs ? (88) ? (4,002)
Payment of
issuance
costs in
connection
with
preferred
shareholder
equity
transactions ? ? (350) ?
Proceeds from
the exercise
of stock
options 1,755 4,717 13,536 13,039
Net cash
provided by
(used in)
financing
activities 42,690 (19,311) 314,809 324,354
------ ------- ------- -------
Net increase (decrease) in
cash and equivalents 163 (132,901) 16,736 (63,967)
Cash and equivalents at
beginning of period 363,128 479,456 346,555 410,522
Cash and equivalents at end of
period $363,291 $346,555 $363,291 $346,555
======== ======== ======== ========
Cash and equivalents at end of
period $363,291 $346,555 $363,291 $346,555
Homebuilding restricted cash
at end of period 21,460 26,900 21,460 26,900
Financial services restricted
cash at end of period 1,295 2,420 1,295 2,420
Cash and equivalents and
restricted cash at end of
period $386,046 $375,875 $386,046 $375,875
======== ======== ======== ========
REGIONAL OPERATING DATA
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 % Change 2013 2012 % Change
---- ---- -------- ---- ---- --------
New homes delivered:
California 476 400 19% 1,762 1,304 35%
Arizona 87 71 23% 258 247 4%
Texas 211 104 103% 669 472 42%
Colorado 51 34 50% 168 114 47%
Nevada ? ? ? ? 9 (100%)
Florida 320 170 88% 1,027 581 77%
Carolinas 198 194 2% 718 564 27%
--- --- --- --- --- ---
Consolidated total 1,343 973 38% 4,602 3,291 40%
Unconsolidated
joint
ventures 2 10 (80%) 25 38 (34%)
Total (including joint
ventures) 1,345 983 37% 4,627 3,329 39%
===== === === ===== ===== ===
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 % Change 2013 2012 % Change
---- ---- -------- ---- ---- --------
(Dollars in thousands)
Average selling prices of
homes delivered:
California $628 $543 16% $565 $506 12%
Arizona 318 231 38% 280 213 31%
Texas 423 354 19% 393 318 24%
Colorado 476 392 21% 450 388 16%
Nevada ? ? ? ? 192 ?
Florida 300 253 19% 279 247 13%
Carolinas 315 263 20% 289 247 17%
--- --- --- --- --- ---
Consolidated 446 388 15% 413 362 14%
Unconsolidated
joint
ventures 581 446 30% 511 444 15%
Total (including joint
ventures) $446 $389 15% $413 $363 14%
==== ==== === ==== ==== ===
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 % Change 2013 2012 % Change
---- ---- -------- ---- ---- --------
Net new orders:
California 337 401 (16%) 1,718 1,570 9%
Arizona 38 30 27% 286 267 7%
Texas 143 103 39% 755 527 43%
Colorado 45 43 5% 201 156 29%
Nevada ? ? ? ? 6 (100%)
Florida 155 217 (29%) 1,165 785 48%
Carolinas 160 189 (15%) 773 703 10%
--- --- ---- --- --- ---
Consolidated total 878 983 (11%) 4,898 4,014 22%
Unconsolidated
joint
ventures 1 5 (80%) 13 47 (72%)
Total (including joint
ventures) 879 988 (11%) 4,911 4,061 21%
=== === ==== ===== ===== ===
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2013 2012 % Change 2013 2012 % Change
---- ---- -------- ---- ---- --------
Average number of selling
communities
during the period:
California 49 45 9% 47 49 (4%)
Arizona 10 6 67% 9 7 29%
Texas 33 24 38% 31 21 48%
Colorado 9 8 13% 8 7 14%
Florida 40 33 21% 40 36 11%
Carolinas 32 34 (6%) 31 35 (11%)
--- --- --- --- --- ----
Consolidated total 173 150 15% 166 155 7%
Unconsolidated
joint
ventures ? 1 (100%) ? 2 (100%)
Total (including joint
ventures) 173 151 15% 166 157 6%
=== === === === === ===
At December 31,
---------------
2013 2012 % Change
---- ---- --------
Homes Dollar Homes Dollar Homes Dollar
Value Value Value
----- ------- ----- ------- ----- -------
(Dollars in thousands)
Backlog:
California 396 $262,097 440 $218,115 (10%) 20%
Arizona 105 35,846 77 19,178 36% 87%
Texas 290 134,583 204 78,468 42% 72%
Colorado 108 54,946 75 32,230 44% 70%
Florida 504 215,312 366 95,264 38% 126%
Carolinas 297 97,710 242 72,214 23% 35%
--- ------ --- ------ --- ---
Consolidated total 1,700 800,494 1,404 515,469 21% 55%
Unconsolidated
joint
ventures ? ? 12 5,575 (100%) (100%)
-----
Total (including joint
ventures) 1,700 $800,494 1,416 $521,044 20% 54%
===== ======== ===== ======== === ===
At December 31,
---------------
2013 2012 % Change
---- ---- --------
Homesites owned and controlled:
California 9,638 10,288 (6%)
Arizona 2,351 1,965 20%
Texas 4,607 5,129 (10%)
Colorado 1,307 792 65%
Nevada 1,124 1,124 ?
Florida 11,461 8,159 40%
Carolinas 4,687 3,310 42%
Total
(including
joint
ventures) 35,175 30,767 14%
====== ==== ===
Homesites
owned 27,733 25,475 9%
Homesites
optioned
or
subject
to
contract 7,047 4,681 51%
Joint
venture
homesites 395 611 (35%)
Total
(including
joint
ventures) 35,175 30,767 14%
====== ==== ===
Homesites owned:
Raw lots 6,211 5,522 12%
Homesites
under
development 9,340 9,357 (0%)
Finished
homesites 7,024 5,178 36%
Under
construction
or
completed
homes 2,804 2,194 28%
Held for
sale 2,354 3,224 (27%)
Total 27,733 25,475 9%
====== ==== ===
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 net income to net income excluding the partial reversal of the deferred tax asset valuation allowance during the 2012 fourth quarter. We believe this measure is useful to management and investors as it provides perspective on the underlying operating performance of the business excluding the benefit from the valuation allowance reversal and provides comparability with the Company's peer group. Net income and diluted earnings per share excluding the reversal of the deferred tax asset valuation allowance for the three months and year ended December 31, 2012 is calculated as follows:
Three Months Ended Year Ended
December 31, 2012 December 31, 2012
----------------- -----------------
(Dollars in thousands, except per
share amounts)
Net
income $486,925 $531,421
Less:
Deferred
tax
asset
valuation
allowance
reversal (454,000) (454,000)
-------- --------
Adjusted
net
income $32,925 $77,421
======= =======
Diluted
earnings
per
share $0.08 $0.21
===== =====
Total
weighted
average
diluted
common
shares
outstanding
if
preferred
shares
converted
to
common 398,375,561 368,331,683
=========== ===========
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
------------------
December 31, Gross December 31, Gross September 30, Gross
2013 Margin % 2012 Margin % 2013 Margin %
---- ------- ---- ------- ---- -------
(Dollars in thousands)
Home
sale
revenues $598,496 $377,674 $511,059
Less:
Cost
of
home
sales (437,988) (299,105) (381,694)
-------- -------- --------
Gross
margin
from
home
sales 160,508 26.8% 78,569 20.8% 129,365 25.3%
Add:
Capitalized
interest
included
in
cost
of
home
sales 32,378 5.4% 30,592 8.1% 30,303 5.9%
------ ------ ------
Gross
margin
from
home
sales,
excluding
interest
amortized
to
cost
of
home
sales $192,886 32.2% $109,161 28.9% $159,668 31.2%
======== ======== ========
Year Ended December 31,
-----------------------
2013 Gross 2012 Gross
Margin % Margin %
------- -------
(Dollars in thousands)
Home
sale
revenues $1,898,989 $1,190,252
Less:
Cost
of
home
sales (1,431,797) (946,630)
-------- -------
Gross
margin
from
home
sales 467,192 24.6% 243,622 20.5%
Add:
Capitalized
interest
included
in
cost
of
home
sales 120,714 6.4% 100,683 8.4%
------- -------
Gross
margin
from
home
sales,
excluding
interest
amortized
to
cost
of
home
sales $587,906 31.0% $344,305 28.9%
======== ========
The table set forth below reconciles the Company's cash flows provided by (used in) operations to cash inflows from operations excluding land purchases and development costs. We believe this measure is useful to management and investors to provide perspective on underlying cash flow generation excluding swings related to the timing of land purchases and development costs.
Three Months Ended Year Ended
December 31,
------------------ -------------
December 31, December 31, September 30, 2013 2012
2013 2012 2013
---- ---- ----
(Dollars in thousands)
Cash flows
provided
by (used
in)
operations $(27,820) $(111,980) $22,808 $(154,216) $(283,116)
Add: Cash
land
purchases
included
in
operating
activities 114,386 204,796 69,196 377,303 436,729
Add: Land
development
costs 99,133 65,948 87,115 314,267 177,452
------ ------ ------ ------- -------
Cash
inflows
from
operations
(excluding
land
purchases
and
development
costs) $185,699 $158,764 $179,119 $537,354 $331,065
======== ======== ======== ======== ========
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. We believe that the adjusted net homebuilding debt to total adjusted book capitalization ratio is 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.
At December 31,
---------------
2013 2012
---- ----
(Dollars in
thousands)
Total consolidated debt $1,940,462 $1,634,177
Less:
Financial
services
indebtedness (100,867) (92,159)
Homebuilding
cash (376,949) (366,808)
Adjusted net homebuilding debt 1,462,646 1,175,210
Stockholders' equity 1,468,960 1,255,816
------- -------
Total adjusted book capitalization $2,931,606 $2,431,026
======= =======
Total consolidated debt to book
capitalization 56.9% 56.5%
==== ====
Adjusted net homebuilding debt to
total adjusted book capitalization 49.9% 48.3%
==== ====
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.
December 31, December 31,
2013 2012
---- ----
Actual common
shares outstanding 277,618,177 213,245,488
Add: Conversion of
preferred shares
to common shares 87,812,786 147,812,786
Pro forma common
shares outstanding 365,430,963 361,058,274
=========== ===========
Stockholders'
equity (Dollars in
thousands) $1,468,960 $1,255,816
Divided by pro
forma common
shares outstanding ÷ 365,430,963 ÷ 361,058,274
Pro forma
stockholders'
equity per common
share $4.02 $3.48
===== =====
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, 2013 2012
2013 2012 2013
---- ---- ----
(Dollars in thousands)
Net income $64,820 $486,925 $58,935 $188,715 $531,421
Provision
(benefit)
for income
taxes 36,205 (453,804) 11,201 68,983 (453,234)
Homebuilding
interest
amortized
to cost of
sales and
interest
expense 32,909 34,364 30,322 121,778 110,298
Homebuilding
depreciation
and
amortization 1,094 617 1,031 3,455 2,372
Amortization
of stock-
based
compensation 2,359 2,633 2,681 9,015 7,151
EBITDA 137,387 70,735 104,170 391,946 198,008
Add:
Cash
distributions
of income
from
unconsolidated
joint
ventures ? 2,625 ? 3,375 3,910
Deposit
write-
offs ? ? ? ? 133
Less:
Income
(loss)
from
unconsolidated
joint
ventures (300) 617 (32) 949 (2,090)
Income from
financial
services
subsidiary 2,218 3,941 2,249 10,751 10,238
Adjusted Homebuilding EBITDA $135,469 $68,802 $101,953 $383,621 $193,903
======== ======= ======== ======== ========
Homebuilding revenues $606,451 $419,843 $511,756 $1,914,609 $1,236,958
======== ======== ======== ========== ==========
Adjusted Homebuilding EBITDA
Margin % 22.3% 16.4% 19.9% 20.0% 15.7%
==== ==== ==== ==== ====
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, 2013 2012
2013 2012 2013
---- ---- ----
(Dollars in thousands)
Net cash provided by (used
in) operating activities $(27,820) $(111,980) $22,808 $(154,216) $(283,116)
Add:
Provision
(benefit)
for income
taxes 480 (453,804) (16,105) (15,231) (453,234)
Deferred
income tax
benefit ? 454,000 ? ? 454,000
Homebuilding
interest
amortized
to cost of
sales and
interest
expense 32,909 34,364 30,322 121,778 110,298
Less:
Income from
financial
services
subsidiary 2,218 3,941 2,249 10,751 10,238
Depreciation
and
amortization
from
financial
services
subsidiary 32 32 33 121 108
Loss on
disposal of
property
and
equipment 1 22 ? 17 37
Net changes in operating
assets and liabilities:
Trade and other receivables (5,218) (12,944) (11,186) 3,244 (801)
Mortgage loans held for
sale 46,722 32,323 (32,221) 2,543 46,339
Inventories-owned 100,937 129,807 84,352 415,312 315,639
Inventories-not owned 11,619 20,861 21,990 43,319 31,551
Other assets (564) (1,696) (1,655) (965) (2,618)
Accounts payable (6,470) (5,988) (7,235) (13,325) (4,617)
Accrued liabilities (14,875) (12,146) 13,165 (7,949) (9,155)
Adjusted Homebuilding
EBITDA $135,469 $68,802 $101,953 $383,621 $193,903
======== ======= ======== ======== ========
SOURCE Standard Pacific Corp.
