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Standard Pacific Corp. Reports 2012 Fourth Quarter and Full Year Results

Q4 2012 Net Income of $486.9 million, or $1.22 per diluted share

Q4 2012 Net New Orders up 60% and Backlog up 106% vs. Q4 2011

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IRVINE, Calif., Jan. 31, 2013 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the fourth quarter and year ended December 31, 2012.

2012 Fourth Quarter Highlights and Comparisons to the 2011 Fourth Quarter

  • Net income of $486.9 million, or $1.22 per diluted share, vs. $15.3 million, or $0.04 per diluted share
    • Diluted earnings per share of $0.08*, excluding $454 million deferred tax asset valuation allowance reversal
  • Net new orders of 983, up 60%
  • Backlog of 1,404 homes, up 106%; Dollar value of backlog up 122%
  • 150 average active selling communities, down 6%
    • 156 active selling communities at year end
  • Homebuilding revenues up 43%
    • Average selling price of $388 thousand, up 4%
    • 973 new home deliveries, up 24%
  • Gross margin from home sales of 20.8%, compared to 20.4%
  • SG&A rate from home sales of 13.1%, a 210 basis point improvement
  • $267.6 million of land purchases and development costs compared to $86.3 million
  • Adjusted Homebuilding EBITDA of $68.8 million*, or 16.4%* of homebuilding revenues, compared to $42.8 million*, or 14.6%* of homebuilding revenues
  • Homebuilding cash balance of $367 million

2012 Fiscal Year Highlights and Comparisons to Fiscal Year 2011

  • Net income of $531.4 million, or $1.44 per diluted share, vs. net loss of $16.4 million, or $0.05 per share
    • Diluted earnings per share of $0.21*, excluding $454 million deferred tax asset valuation allowance reversal
  • Net new orders of 4,014, up 44%
  • Homebuilding revenues of $1,237.0 million, up 40% from $883.0 million
    • Average selling price of $362 thousand, up 4%
    • 3,291 new home deliveries, up 30%
  • Gross margin from home sales of 20.5%, compared to 18.4%
  • SG&A rate from home sales of 14.5%, compared to 17.5%
  • Operating cash outflows of $283.1 million vs. $322.6 million
    • Excluding land purchases and development costs, cash inflows of $322.1 million* vs. $114.5 million*
  • Adjusted Homebuilding EBITDA of $193.9 million*, or 15.7%* of homebuilding revenues, compared to $105.9 million*, or 12.0%* of homebuilding revenues

Scott Stowell, the Company's Chief Executive Officer and President commented, "I am proud of our strong 2012 financial performance, which is proof of both the significant progress we've made executing our strategy and the lift we've experienced from the beginning of a real market recovery.  With our backlog up 106% year over year and the solid demand we have experienced during the first month of 2013, we are off to a good start on what we expect to be a strong 2013."

Revenues from home sales for the 2012 fourth quarter increased 29%, to $377.7 million, as compared to the prior year period, resulting primarily from a 24% increase in new home deliveries and a 4% increase in the Company's consolidated average home price to $388 thousand.  The increase in average home price was primarily attributable to price increases within most of the Company's markets.  The increase in new home deliveries was driven by a 64% increase in the number of homes in backlog at the beginning of the quarter as compared to the prior year period. 

Gross margin from home sales for the 2012 fourth quarter increased to 20.8% compared to 20.4% (19.4%* excluding a $2.9 million benefit related to a reduction in the Company's warranty accrual) in the prior year period.  Excluding the warranty accrual adjustment and previously capitalized interest costs, gross margin from home sales was 28.9%* for the 2012 fourth quarter versus 27.5%* for the 2011 fourth quarter.  This 140 basis point improvement was primarily attributable to the increase in the Company's consolidated average home price. 

The Company's 2012 fourth quarter SG&A expenses (including Corporate G&A) were $49.4 million compared to $44.5 million, down 210 basis points as a percentage of home sale revenues to 13.1%, compared to 15.2% for the 2011 fourth quarter.  The improvement in the Company's SG&A rate was primarily due to a 29% increase in revenues from home sales and reflects the operating leverage inherent in our business.

During the 2012 fourth quarter, the Company reversed a portion of its deferred tax valuation allowance, recognizing a $454 million benefit.  Following this reversal, the Company's remaining deferred tax valuation allowance stood at approximately $23 million, which as of December 31, 2012, partially offsets the Company's $478 million deferred tax asset. 

Net new orders for the 2012 fourth quarter increased 60% from the 2011 fourth quarter to 983 homes.  The 60% year-over-year growth is primarily attributable to a 70% increase in the Company's monthly sales absorption rate to 2.2 per community for the 2012 fourth quarter, compared to 1.3 per community for the 2011 fourth quarter, and a 3% increase from 2.1 per community for the 2012 third quarter.  The 3% quarter-over-quarter increase bucked the historical seasonal trend, which averaged down 19% over the last fifteen years.     

The dollar value of homes in backlog increased 122% to $515.5 million, or 1,404 homes, compared to $232.6 million, or 681 homes, for the 2011 fourth quarter, and increased 3% compared to $498.7 million, or 1,394 homes, for the 2012 third quarter.  The increase in year-over-year backlog value was driven primarily by a 60% increase in net new orders and a shift to more to-be-built homes. 

The Company used $112.0 million of cash in operating activities for the 2012 fourth quarter versus $12.0 million in the 2011 fourth quarter.  During the 2012 fourth quarter, the Company spent $267.6 million on land purchases and development costs, compared to $86.3 million for the 2011 fourth quarter.  Excluding land purchases and development costs, cash inflows from operating activities for the 2012 fourth quarter were $155.6 million* versus $74.3 million* in the 2011 fourth quarter.  The year-over-year increase in cash inflows from operating activities (excluding land purchases and development costs) was primarily due to a 29% increase in home sale revenues. 

The Company purchased $204.8 million of land (3,085 homesites) during the 2012 fourth quarter, of which 21% (based on homesites) was located in California, 49% in Florida, 13% in Arizona and 10% in Texas, with the balance spread throughout the Company's other operations.  The Company purchased $542.1 million of land (9,344 homesites) during the year ended December 31, 2012, of which 39% (based on homesites) was located in California, 25% in Florida, 18% in the Carolinas and 12% in Texas, with the balance spread throughout the Company's other operations.  As of December 31, 2012, the Company owned or controlled 30,767 homesites, of which 19,219 are owned and actively selling or under development, 5,292 are controlled or under option, and the remaining 6,256 homesites are held for future development or for sale.  The homesites owned that are actively selling or under development represent a 5.8 year supply based on the Company's deliveries for the year ended December 31, 2012.  

Earnings Conference Call

A conference call to discuss the Company's 2012 fourth quarter results will be held at 12:00 p.m. Eastern time February 1, 2013.  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) 221-9542 (domestic) or (913) 312-1507 (international); Passcode: 5053434.  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: 5053434.

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, revenue, profitability, cash flow, liquidity, gross margin, operating margin, overhead expenses and other costs; community count; product mix; execution on our strategy; 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, 2011 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




2012


2011


or % Change


2012


or % Change

Operating Data

(Dollars in thousands)
















Deliveries


973



782


24%



861


13%

Average selling price

$

388


$

374


4%


$

369


5%

Home sale revenues

$

377,674


$

292,725


29%


$

317,389


19%

Gross margin % (including land sales)


18.7%



20.4%


(1.7%)



20.1%


(1.4%)

Gross margin % from home sales (excluding warranty accrual

adjustments)*


20.8%



19.4%


1.4%



20.2%


0.6%

Gross margin % from home sales (excluding warranty accrual adjustments and interest amortized to cost of home sales)*


28.9%



27.5%


1.4%



28.7%


0.2%

Severance and other charges

$

  ―  


$

875


(100%)


$

  ―  


  ―  

Incentive and stock-based compensation expense

$

7,013


$

6,651


5%


$

4,768


47%

Selling expenses

$

19,362


$

15,609


24%


$

17,069


13%

G&A expenses (excluding incentive and stock-based compensation

expenses and severance and other charges)

$

23,067


$

21,412


8%


$

21,284


8%

SG&A expenses

$

49,442


$

44,547


11%


$

43,121


15%

SG&A % from home sales


13.1%



15.2%


(2.1%)



13.6%


(0.5%)
















Net new orders


983



615


60%



989


(1%)

Average active selling communities


150



160


(6%)



156


(4%)

Monthly sales absorption rate per community


2.2



1.3


70%



2.1


3%

Cancellation rate


15%



19%


(4%)



14%


1%

Gross cancellations


178



141


26%



161


11%

Cancellations from current quarter sales


71



53


34%



67


6%

Backlog (homes)


1,404



681


106%



1,394


1%

Backlog (dollar value)

$

515,469


$

232,583


122%


$

498,739


3%
















Cash flows (uses) from operating activities

$

(111,980)


$

(12,036)


(830%)


$

(72,418)


(55%)

Cash flows (uses) from investing activities

$

(1,610)


$

(3,043)


47%


$

(95,704)


98%

Cash flows (uses) from financing activities

$

(19,311)


$

(5,748)


(236%)


$

348,696



Land purchases (incl. seller financing and JV purchases) 

$

204,796


$

49,759


312%


$

206,740


(1%)

Adjusted Homebuilding EBITDA*

$

68,802


$

42,809


61%


$

51,523


34%

Adjusted Homebuilding EBITDA Margin %*


16.4%



14.6%


1.8%



16.2%


0.2%

Homebuilding interest incurred

$

35,095


$

35,425


(1%)


$

36,112


(3%)

Homebuilding interest capitalized to inventories owned

$

33,664


$

30,777


9%


$

32,604


3%

Homebuilding interest capitalized to investments in JVs

$

851


$

1,689


(50%)


$

1,839


(54%)

Interest amortized to cost of sales (incl. cost of land sales)

$

33,784


$

23,657


43%


$

27,078


25%

 




For the Year Ended




December 31,


December 31,


Percentage




2012


2011


or % Change

Operating Data

(Dollars in thousands)











Deliveries


3,291



2,528


30%

Average selling price

$

362


$

349


4%

Home sale revenues

$

1,190,252


$

882,094


35%

Gross margin % (including land sales)


19.7%



18.4%


1.3%

Gross margin % from home sales (excluding impairments and warranty accrual adjustments)*


20.5%



19.6%


0.9%

Gross margin % from home sales (excluding impairments, warranty accrual adjustments and interest amortized to cost of home sales)*


28.9%



27.4%


1.5%

Inventory impairment charges

$

  ―  


$

13,189


(100%)

Severance and other charges

$

  ―  


$

4,245


(100%)

Incentive and stock-based compensation expense

$

20,362


$

18,511


10%

Selling expenses

$

65,608


$

48,291


36%

G&A expenses (excluding incentive and stock-based compensation expenses and severance and other charges)

$

86,237


$

83,328


3%

SG&A expenses

$

172,207


$

154,375


12%

SG&A % from home sales


14.5%



17.5%


(3.0%)











Net new orders


4,014



2,795


44%

Average active selling communities


155



152


2%

Monthly sales absorption rate per community


2.2



1.5


41%

Cancellation rate


13%



16%


(3%)

Gross cancellations


621



520


19%

Cancellations from current year sales


289



227


27%











Cash flows (uses) from operating activities

$

(283,116)


$

(322,613)


12%

Cash flows (uses) from investing activities

$

(105,205)


$

(8,313)


(1,166%)

Cash flows (uses) from financing activities

$

324,354


$

10,077


3,119%

Land purchases (incl. seller financing and JV purchases) 

$

542,106


$

303,775


78%

Adjusted Homebuilding EBITDA*

$

193,903


$

105,855


83%

Adjusted Homebuilding EBITDA Margin %*


15.7%



12.0%


3.7%

Homebuilding interest incurred

$

141,827


$

140,905


1%

Homebuilding interest capitalized to inventories owned

$

129,136


$

109,002


18%

Homebuilding interest capitalized to investments in JVs

$

6,295


$

6,735


(7%)

Interest amortized to cost of sales (incl. cost of land sales)

$

103,902


$

69,636


49%

 




As of 




December 31,


December 31,


Percentage




2012


2011


or % Change

Balance Sheet Data

(Dollars in thousands, except per share amounts)











Homebuilding cash (including restricted cash)

$

366,808


$

438,157


(16%)

Inventories owned

$

1,971,418


$

1,477,239


33%

Homesites owned and controlled


30,767



26,444


16%

Homes under construction


1,574



940


67%

Completed specs


215



383


(44%)

Deferred tax asset valuation allowance

$

22,696


$

510,621


(96%)

Homebuilding debt

$

1,542,018


$

1,324,948


16%

Stockholders' equity

$

1,255,816


$

623,754


101%

Stockholders' equity per share (including if-converted preferred stock)*

$

3.48


$

1.82


91%

Total consolidated debt to book capitalization


56.5%



68.7%


(12.2%)

Adjusted net homebuilding debt to total adjusted book capitalization*


48.3%



58.7%


(10.4%)

1All statistical numbers exclude unconsolidated joint ventures unless noted otherwise.
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS






Three Months Ended
December 31,


Year Ended
December 31,





2012


2011


2012


2011





(Dollars in thousands, except per share amounts)





(Unaudited)

Homebuilding:













Home sale revenues

$

377,674


$

292,725


$

1,190,252


$

882,094


Land sale revenues


42,169



431



46,706



899



Total revenues


419,843



293,156



1,236,958



882,993


Cost of home sales


(299,105)



(232,960)



(946,630)



(719,893)


Cost of land sales


(42,196)



(430)



(46,654)



(903)



Total cost of sales


(341,301)



(233,390)



(993,284)



(720,796)




Gross margin


78,542



59,766



243,674



162,197




Gross margin %


18.7%



20.4%



19.7%



18.4%


Selling, general and administrative expenses


(49,442)



(44,547)



(172,207)



(154,375)


Income (loss) from unconsolidated joint ventures


617



1,298



(2,090)



207


Interest expense


(580)



(2,959)



(6,396)



(25,168)


Other income (expense)


(44)



(338)



4,664



(1,017)




Homebuilding pretax income (loss)


29,093



13,220



67,645



(18,156)

Financial Services:













Revenues


7,051



3,783



21,300



10,907


Expenses


(3,110)



(2,230)



(11,062)



(9,401)


Other income


87



79



304



177




Financial services pretax income


4,028



1,632



10,542



1,683

Income (loss) before income taxes


33,121



14,852



78,187



(16,473)

Benefit for income taxes


453,804



481



453,234



56

Net income (loss)


486,925



15,333



531,421



(16,417)

  Less: Net (income) loss allocated to preferred shareholder


(199,646)



(6,619)



(224,408)



7,101

  Less: Net (income) loss allocated to unvested restricted stock


(489)



 ―   



(410)



 ―   

Net income (loss) available to common stockholders

$

286,790


$

8,714


$

306,603


$

(9,316)
















Income (Loss) Per Common Share:













Basic


$

1.35


$

0.04


$

1.52


$

(0.05)


Diluted

$

1.22


$

0.04


$

1.44


$

(0.05)
















Weighted Average Common Shares Outstanding:













Basic



212,332,054



194,571,736



201,953,799



193,909,714


Diluted


250,562,775



196,596,197



220,518,897



193,909,714
















Weighted average additional common shares outstanding if preferred shares converted to common shares


 

147,812,786



147,812,786



 

147,812,786



147,812,786
















Total weighted average diluted common shares outstanding if preferred shares converted to common shares


398,375,561



344,408,983



368,331,683



341,722,500

 

CONDENSED CONSOLIDATED BALANCE SHEETS








December 31,


December 31,







2012


2011







(Dollars in thousands)

ASSETS

(Unaudited)




Homebuilding:







Cash and equivalents

$

339,908


$

406,785


Restricted cash



26,900



31,372


Trade and other receivables


10,724



11,525


Inventories:










Owned




1,971,418



1,477,239



Not owned



71,295



59,840


Investments in unconsolidated joint ventures


52,443



81,807


Deferred income taxes, net


455,372



5,326


Other assets




41,918



35,693




Total Homebuilding Assets


2,969,978



2,109,587

Financial Services:







Cash and equivalents


6,647



3,737


Restricted cash



2,420



1,295


Mortgage loans held for sale, net


119,549



73,811


Mortgage loans held for investment, net


9,923



10,115


Other assets




4,557



1,838




Total Financial Services Assets


143,096



90,796





Total Assets

$

3,113,074


$

2,200,383












LIABILITIES AND EQUITY






Homebuilding:







Accounts payable


$

22,446


$

17,829


Accrued liabilities



198,144



185,890


Secured project debt and other notes payable


11,516



3,531


Senior notes payable


1,530,502



1,275,093


Senior subordinated notes payable


  ― 



46,324




Total Homebuilding Liabilities


1,762,608



1,528,667

Financial Services:







Accounts payable and other liabilities


2,491



1,154


Mortgage credit facilities


92,159



46,808




Total Financial Services Liabilities


94,650



47,962





Total Liabilities


1,857,258



1,576,629

Equity:







Stockholders' Equity:








Preferred stock, $0.01 par value; 10,000,000 shares 








    authorized; 450,829 shares issued and outstanding








    at December 31, 2012 and 2011


5



5



Common stock, $0.01 par value; 600,000,000 shares 








    authorized; 213,245,488 and 198,563,273 shares 








    issued and outstanding at December 31, 2012 and 








    2011, respectively


2,132



1,985



Additional paid-in capital


1,333,255



1,239,180



Accumulated deficit


(77,348)



(608,769)



Accumulated other comprehensive loss, net of tax


(2,228)



(8,647)




Total Equity


1,255,816



623,754





Total Liabilities and Equity

$

3,113,074


$

2,200,383

 

INVENTORIES






December 31,


December 31,





2012


2011





(Dollars in thousands)

Inventories Owned:




(Unaudited)










     Land and land under development




$      1,444,161


$      1,036,829

     Homes completed and under construction




427,196


339,849

     Model homes




100,061


100,561

        Total inventories owned




$      1,971,418


$      1,477,239








Inventories Owned by Segment:














     California




$      1,086,159


$         890,300

     Southwest




461,201


302,686

     Southeast




424,058


284,253

        Total inventories owned




$      1,971,418


$      1,477,239

 


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







Three Months Ended
December 31,


Year Ended
December 31,






2012


2011


2012


2011






(Dollars in thousands)






(Unaudited)

Cash Flows From Operating Activities:













Net income (loss)

$

486,925


$

15,333


$

531,421


$

(16,417)


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:















Amortization of stock-based compensation


2,633



3,145



7,151



11,239




Inventory impairment charges and deposit write-offs


 ―   



416



133



15,334




Deferred income tax benefit


(454,000)



 ―   



(454,000)



 ―   




Other operating activities


2,679



(654)



8,517



3,247




Changes in cash and equivalents due to:
















Trade and other receivables


12,944



6,951



801



(5,358)





Mortgage loans held for sale


(32,323)



(23,924)



(46,339)



(43,661)





Inventories - owned


(129,807)



(20,670)



(315,639)



(282,447)





Inventories - not owned


(20,861)



(2,068)



(31,551)



(19,727)





Other assets


1,696



6,525



2,618



6,212





Accounts payable


5,988



(4,776)



4,617



1,113





Accrued liabilities


12,146



7,686



9,155



7,852



Net cash provided by (used in) operating activities


(111,980)



(12,036)



(283,116)



(322,613)

















Cash Flows From Investing Activities:













Investments in unconsolidated homebuilding joint ventures


(4,380)



(3,385)



(57,458)



(14,689)


Distributions of capital from unconsolidated joint ventures


2,590



807



14,530



8,593


Net cash paid for acquisitions


 ―   



 ―   



(60,752)



 ―   


Other investing activities


180



(465)



(1,525)



(2,217)



Net cash provided by (used in) investing activities


(1,610)



(3,043)



(105,205)



(8,313)

















Cash Flows From Financing Activities:













Change in restricted cash


(1,687)



260



3,347



(1,559)


Principal payments on secured project debt and other notes payable


(84)



(368)



(866)



(1,207)


Principal payments on senior subordinated notes payable


(39,613)



 ―   



(49,603)



 ―   


Proceeds from the issuance of senior notes payable


 ―   



 ―   



253,000



 ―   


Payment of debt issuance costs


(3,680)



 ―   



(11,761)



(4,575)


Net proceeds from (payments on) mortgage credit facilities


21,124



(5,720)



45,351



16,464


Proceeds from the issuance of common stock


 ―   



 ―   



75,849



 ―   


Payment of common stock issuance costs


(88)



 ―   



(4,002)



(324)


Proceeds from the exercise of stock options


4,717



80



13,039



1,278



Net cash provided by (used in) financing activities


(19,311)



(5,748)



324,354



10,077

















Net increase (decrease) in cash and equivalents


(132,901)



(20,827)



(63,967)



(320,849)

Cash and equivalents at beginning of period


479,456



431,349



410,522



731,371

Cash and equivalents at end of period

$

346,555


$

410,522


$

346,555


$

410,522

















Cash and equivalents at end of period

$

346,555


$

410,522


$

346,555


$

410,522

Homebuilding restricted cash at end of period


26,900



31,372



26,900



31,372

Financial services restricted cash at end of period


2,420



1,295



2,420



1,295

Cash and equivalents and restricted cash at end of period

$

375,875


$

443,189


$

375,875


$

443,189

 

REGIONAL OPERATING DATA








Three Months Ended
December 31, 


Year Ended
December 31, 







2012


2011


% Change


2012


2011


% Change

New homes delivered:














California


400


279


43%


1,304


975


34%


Arizona



71


54


31%


247


169


46%


Texas



104


135


(23%)


472


420


12%


Colorado


34


28


21%


114


97


18%


Nevada



  ― 


3


(100%)


9


15


(40%)


Florida



170


153


11%


581


446


30%


Carolinas


194


130


49%


564


406


39%



Consolidated total


973


782


24%


3,291


2,528


30%


Unconsolidated joint ventures


10


8


25%


38


35


9%




Total (including joint ventures) 


983


790


24%


3,329


2,563


30%

 






Three Months Ended
December 31, 


Year Ended
December 31, 






2012


2011


% Change


2012


2011


% Change






(Dollars in thousands)

Average selling prices of homes delivered:


















California


$

543


$

598


(9%)


$

506


$

519


(3%)


Arizona



231



197


17%



213



202


5%


Texas



354



297


19%



318



292


9%


Colorado



392



309


27%



388



308


26%


Nevada



     ―  



173


      ―  



192



190


1%


Florida



253



223


13%



247



208


19%


Carolinas



263



245


7%



247



231


7%



Consolidated



388



374


4%



362



349


4%


Unconsolidated joint ventures



446



350


27%



444



396


12%



Total (including joint ventures)


$

389


$

374


4%


$

363


$

350


4%

 






Three Months Ended
December 31,


Year Ended
December 31,






2012


2011


% Change


2012


2011


% Change

Net new orders:














California


401


199


102%


1,570


1,030


52%


Arizona


30


54


(44%)


267


190


41%


Texas


103


94


10%


527


470


12%


Colorado


43


25


72%


156


100


56%


Nevada


   ―  


3


(100%)


6


10


(40%)


Florida


217


130


67%


785


541


45%


Carolinas


189


110


72%


703


454


55%



Consolidated total


983


615


60%


4,014


2,795


44%


Unconsolidated joint ventures


5


10


(50%)


47


33


42%



Total (including joint ventures)


988


625


58%


4,061


2,828


44%

 






Three Months Ended
December 31,


Year Ended
December 31,






2012


2011


% Change


2012


2011


% Change

Average number of selling communities 













  during the period:














California


45


49


(8%)


49


49


      ― 


Arizona


6


10


(40%)


7


9


(22%)


Texas


24


21


14%


21


21


      ― 


Colorado


8


6


33%


7


5


40%


Nevada


      ― 


1


(100%)


      ― 


1


(100%)


Florida


33


40


(18%)


36


37


(3%)


Carolinas


34


33


3%


35


30


17%



Consolidated total


150


160


(6%)


155


152


2%


Unconsolidated joint ventures 


1


3


(67%)


2


3


(33%)



Total (including joint ventures)


151


163


(7%)


157


155


1%

 






At December 31,






2012


2011


% Change






Homes


Dollar Value


Homes


Dollar Value


Homes


Dollar Value






(Dollars in thousands)

Backlog:




















California



440


$

218,115



174


$

91,051



153%



140%


Arizona



77



19,178



57



11,598



35%



65%


Texas



204



78,468



149



46,307



37%



69%


Colorado



75



32,230



33



12,904



127%



150%


Nevada



      ―  



       ―  



3



638



(100%)



(100%)


Florida



366



95,264



162



42,360



126%



125%


Carolinas



242



72,214



103



27,725



135%



160%



Consolidated total



1,404



515,469



681



232,583



106%



122%


Unconsolidated joint ventures 



12



5,575



3



1,240



300%



350%



Total (including joint ventures)



1,416


$

521,044



684


$

233,823



107%



123%

 






At December 31,






2012


2011


% Change

Homesites owned and controlled:








California


10,288


9,230


11%


Arizona


1,965


1,872


5%


Texas


5,129


4,232


21%


Colorado


792


690


15%


Nevada


1,124


1,133


(1%)


Florida


8,159


6,323


29%


Carolinas


3,310


2,964


12%



Total (including joint ventures)


30,767


26,444


16%












Homesites owned


25,475


20,035


27%


Homesites optioned or subject to contract 


4,681


5,183


(10%)


Joint venture homesites


611


1,226


(50%)



Total (including joint ventures)


30,767


26,444


16%





















Homesites owned:








Raw lots


5,522


3,824


44%


Homesites under development


9,357


4,760


97%


Finished homesites


5,178


5,831


(11%)


Under construction or completed homes


2,194


1,760


25%


Held for sale


3,224


3,860


(16%)



Total


25,475


20,035


27%

 

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 inventory impairment charges, warranty accrual adjustments and 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,
2012


Gross
Margin %


December 31,
2011


Gross
Margin %


September 30,
2012


Gross
Margin %


(Dollars in thousands)
















Home sale revenues

$

377,674




$

292,725




$

317,389



Less: Cost of home sales


(299,105)





(232,960)





(253,344)



Gross margin from home sales


78,569


20.8%



59,765


20.4%



64,045


20.2%

Less: Benefit from warranty accrual adjustments


    ―    





(2,900)





    ―    



Gross margin from home sales, excluding warranty accrual adjustments


 

78,569


 

20.8%



 

56,865


 

19.4%



 

64,045


 

20.2%

Add: Capitalized interest included in cost of home sales


 

30,592


 

8.1%



 

23,557


 

8.1%



 

27,071


 

8.5%

Gross margin from home sales, excluding warranty accrual adjustments and interest amortized to cost of home sales

 

$

 

109,161


 

28.9%


 

$

 

80,422


 

27.5%


 

$

 

91,116


 

28.7%

 


Year Ended December 31,


2012


Gross
Margin %


2011


Gross
Margin %


(Dollars in thousands)











Home sale revenues

$

1,190,252




$

882,094



Less: Cost of home sales


(946,630)





(719,893)



Gross margin from home sales


243,622


20.5%



162,201


18.4%

Add: Inventory impairment charges


    ―    





13,189



Less: Benefit from warranty accrual adjustments


    ―    





(2,900)



Gross margin from home sales, excluding impairment charges and warranty accrual adjustments


 

243,622


 

20.5%



 

172,490


 

19.6%

Add: Capitalized interest included in cost of home sales


 

100,683


 

8.4%



 

69,421


 

7.8%

Gross margin from home sales, excluding impairment charges, warranty accrual adjustments and interest amortized to cost of home sales

 

$

 

344,305


 

28.9%


 

$

 

241,911


 

27.4%

 

The table set forth below reconciles the Company's cash flows 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,
2012


December 31,
2011


September 30,
2012


2012


2011


(Dollars in thousands)