2014

Standard Pacific Corp. Reports 2013 First Quarter Results Q1 2013 Pretax Income of $35.4 million, up 306% vs. Q1 2012

Q1 2013 Net New Order Value up 74% and Backlog Value up 117% vs. Q1 2012

IRVINE, Calif., May 2, 2013 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the first quarter ended March 31, 2013.

2013 First Quarter Highlights and Comparisons to the 2012 First Quarter

  • Net income of $21.8 million, or $0.05 per diluted share, vs. $8.5 million, or $0.02 per diluted share
    • Pretax income of $35.4 million, vs. $8.7 million
  • Net new orders of 1,394, up 49%; Dollar value of net new orders up 74%
  • Backlog of 1,851 homes, up 90%; Dollar value of backlog up 117%
  • 158 average active selling communities, flat compared to the prior year
  • Home sale revenues up 61%
    • Average selling price of $375 thousand, up 9%
    • 947 new home deliveries, up 48%
  • Gross margin from home sales of 21.0%, compared to 20.3%
  • SG&A rate from home sales of 13.0%, a 410 basis point improvement
  • $118.7 million of land purchases and development costs, compared to $65.8 million
  • Adjusted Homebuilding EBITDA of $63.8 million*, or 17.8%* of homebuilding revenues, compared to $31.8 million*, or 14.2%* of homebuilding revenues
  • Homebuilding cash balance of $308 million

Scott Stowell, the Company's Chief Executive Officer commented, "Reflecting the significant progress we've made as we continue to execute our strategy and the lift we've experienced from the current housing market recovery, the strong performance we demonstrated in 2012 has continued into 2013."  Mr. Stowell added, "I am pleased with the strong start to the year and look forward to the remainder of 2013."   

Revenues from home sales for the 2013 first quarter increased 61%, to $355.1 million, as compared to the prior year period, resulting primarily from a 48% increase in new home deliveries and a 9% increase in the Company's consolidated average home price to $375 thousand.  The increase in average home price was primarily attributable to our increasing focus on the move-up market segment and price increases within most of our markets.  The increase in new home deliveries was driven by a 70% year-over-year increase in the number of homes in beginning backlog expected to close during the quarter, partially offset by a decrease in specs sold and closed in the quarter. 

Gross margin from home sales for the 2013 first quarter increased to 21.0% compared to 20.3% in the prior year period.  The 70 basis point year-over-year increase was primarily attributable to price increases, a mix shift to higher margin communities, and improved margins from speculative homes sold and delivered during the quarter.  Excluding previously capitalized interest costs, gross margin from home sales was 28.8%* for the 2013 first quarter versus 28.7%* for the 2012 first quarter.    

The Company's 2013 first quarter SG&A expenses (including Corporate G&A) were $46.3 million compared to $37.7 million, down 410 basis points as a percentage of home sale revenues to 13.0%, compared to 17.1% for the 2012 first quarter.  The improvement in the Company's SG&A rate was primarily due to a 61% increase in revenues from home sales and reflects the operating leverage inherent in our business.

Net new orders for the 2013 first quarter increased 49% from the 2012 first quarter to 1,394 homes.  The  year-over-year growth is primarily attributable to a 49% increase in the Company's monthly sales absorption rate to 2.9 per community for the 2013 first quarter, compared to 2.0 per community for the 2012 first quarter, and a 35% increase from 2.2 per community for the 2012 fourth quarter.       

The dollar value of homes in backlog increased 117% to $719.7 million, or 1,851 homes, compared to $331.9 million, or 973 homes, for the 2012 first quarter, and increased 40% compared to $515.5 million, or 1,404 homes, for the 2012 fourth quarter.  The increase in year-over-year backlog value was driven primarily by a 49% increase in net new orders, a 14% increase in the average selling price of the homes in backlog and a shift to more to-be-built homes that have a longer construction cycle.  The gross margin of our homes in backlog was 23.1% at the end of the quarter as compared to 20.2% at the end of the first quarter of 2012.

The Company used $58.5 million of cash in operating activities for the 2013 first quarter versus $42.1 million in the 2012 first quarter.  During the 2013 first quarter, the Company spent $118.7 million on land purchases and development costs, compared to $65.8 million for the 2012 first quarter.  Excluding land purchases and development costs, cash inflows from operating activities for the 2013 first quarter were $60.2 million* versus $23.6 million* in the 2012 first quarter.  The year-over-year increase in cash inflows from operating activities (excluding land purchases and development costs) was primarily due to a 61% increase in home sale revenues. 

The Company purchased $71.5 million of land (1,167 homesites) during the 2013 first quarter, of which 34% (based on homesites) was located in Florida, 31% in California and 26% in Texas, with the balance spread throughout the Company's other operations.  As of March 31, 2013, the Company owned or controlled 32,123 homesites, of which 20,213 are owned and actively selling or under development, 6,434 are controlled or under option, and the remaining 5,476 homesites are held for future development or for sale.  The homesites owned that are actively selling or under development represent a 5.6 year supply based on the Company's deliveries for the trailing twelve months ended March 31, 2013.

Scott Stowell, the Company's Chief Executive Officer concluded, "I am pleased with our first quarter results and am excited about the strong spring selling season that has continued into the month of April.  In April, we recorded 527 net new orders, raising our April 30 ending backlog to 2,096 units (up 89% from last year) with an average selling price of $396 thousand and gross margin in backlog of 23.8%." 

Earnings Conference Call

A conference call to discuss the Company's 2013 first quarter results will be held at 12:00 p.m. Eastern time May 3, 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 (800) 390-5311 (domestic) or (719) 325-2316 (international); Passcode: 4768857.  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: 4768857.

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, 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, 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




March 31,


March 31,


Percentage


December 31,


Percentage




2013


2012


or % Change


2012


or % Change

Operating Data

(Dollars in thousands)
















Deliveries


947



642


48%



973


(3%)

Average selling price

$

375


$

343


9%


$

388


(3%)

Home sale revenues

$

355,126


$

220,317


61%


$

377,674


(6%)

Gross margin % (including land sales)


20.8%



20.0%


0.8%



18.7%


2.1%

Gross margin % from home sales


21.0%



20.3%


0.7%



20.8%


0.2%

Gross margin % from home sales (excluding interest amortized to cost of home sales)*


28.8%



28.7%


0.1%



28.9%


(0.1%)

Incentive and stock-based compensation expense

$

4,848


$

3,905


24%


$

7,013


(31%)

Selling expenses

$

18,444


$

12,866


43%


$

19,362


(5%)

G&A expenses (excluding incentive and stock-based

compensation expenses)

$

23,002


$

20,921


10%


$

23,067


(0%)

SG&A expenses

$

46,294


$

37,692


23%


$

49,442


(6%)

SG&A % from home sales


13.0%



17.1%


(4.1%)



13.1%


(0.1%)
















Net new orders (homes)


1,394



934


49%



983


42%

Net new orders (dollar value)

$

548,561


$

315,946


74%


$

385,461


42%

Average active selling communities


158



158


   ―  



150


5%

Monthly sales absorption rate per community


2.9



2.0


49%



2.2


35%

Cancellation rate


10%



13%


(3%)



15%


(5%)

Gross cancellations


162



144


13%



178


(9%)

Cancellations from current quarter sales


86



79


9%



71


21%

Backlog (homes)


1,851



973


90%



1,404


32%

Backlog (dollar value)

$

719,652


$

331,884


117%


$

515,469


40%
















Cash flows (uses) from operating activities

$

(58,461)


$

(42,118)


(39%)


$

(111,980)


48%

Cash flows (uses) from investing activities

$

(1,601)


$

(2,346)


32%


$

(1,610)


1%

Cash flows (uses) from financing activities

$

(180)


$

6,607




$

(19,311)


99%

Land purchases

$

71,541


$

33,986


111%


$

204,796


(65%)

Adjusted Homebuilding EBITDA*

$

63,823


$

31,768


101%


$

68,802


(7%)

Adjusted Homebuilding EBITDA Margin %*


17.8%



14.2%


3.6%



16.4%


1.4%

Homebuilding interest incurred

$

35,027


$

35,315


(1%)


$

35,095


(0%)

Homebuilding interest capitalized to inventories owned

$

34,201


$

30,992


10%


$

33,664


2%

Homebuilding interest capitalized to investments in JVs

$

826


$

1,793


(54%)


$

851


(3%)

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

$

27,885


$

18,575


50%


$

33,784


(17%)
















 




As of 




March 31,


December 31,


Percentage




2013


2012


or % Change

Balance Sheet Data

(Dollars in thousands, except per share amounts)











Homebuilding cash (including restricted cash)

$

308,029


$

366,808


(16%)

Inventories owned

$

2,049,702


$

1,971,418


4%

Homesites owned and controlled


32,123



30,767


4%

Homes under construction


1,907



1,574


21%

Completed specs


200



215


(7%)

Deferred tax asset valuation allowance

$

22,696


$

22,696


   ―  

Homebuilding debt

$

1,535,570


$

1,542,018


(0%)

Stockholders' equity

$

1,287,207


$

1,255,816


2%

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

$

3.55


$

3.48


2%

Total consolidated debt to book capitalization


55.9%



56.5%


(0.6%)

Adjusted net homebuilding debt to total adjusted book capitalization*


48.8%



48.3%


0.5%











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 March 31,





2013


2012





(Dollars in thousands, except per share amounts)





(Unaudited)

Homebuilding:







Home sale revenues

$

355,126


$

220,317


Land sale revenues


2,595



3,385



Total revenues


357,721



223,702


Cost of home sales


(280,612)



(175,595)


Cost of land sales


(2,583)



(3,366)



Total cost of sales


(283,195)



(178,961)




Gross margin


74,526



44,741




Gross margin %


20.8%



20.0%


Selling, general and administrative expenses


(46,294)



(37,692)


Income (loss) from unconsolidated joint ventures


1,134



(1,522)


Interest expense


   ―  



(2,530)


Other income (expense)


3,570



4,284




Homebuilding pretax income 


32,936



7,281

Financial Services:







Revenues


5,677



3,626


Expenses


(3,322)



(2,260)


Other income


102



63




Financial services pretax income


2,457



1,429

Income before taxes


35,393



8,710

Provision for income taxes


(13,569)



(187)

Net income 


21,824



8,523

  Less: Net income allocated to preferred shareholder


(8,903)



(3,674)

  Less: Net income allocated to unvested restricted stock


(22)



 ―   

Net income available to common stockholders

$

12,899


$

4,849










Income Per Common Share:







Basic

$

0.06


$

0.02


Diluted

$

0.05


$

0.02










Weighted Average Common Shares Outstanding:







Basic


214,166,912



195,109,252


Diluted


252,947,416



199,873,977










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


147,812,786



147,812,786










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


400,760,202



347,686,763










 









CONDENSED CONSOLIDATED BALANCE SHEETS














March 31,


December 31,






2013


2012






(Dollars in thousands)

ASSETS

(Unaudited)




Homebuilding:







Cash and equivalents

$

280,467


$

339,908


Restricted cash


27,562



26,900


Trade and other receivables


19,640



10,724


Inventories:








Owned


2,049,702



1,971,418



Not owned


72,019



71,295


Investments in unconsolidated joint ventures


53,024



52,443


Deferred income taxes, net


441,344



455,372


Other assets


39,322



41,918




Total Homebuilding Assets


2,983,080



2,969,978

Financial Services:







Cash and equivalents


5,846



6,647


Restricted cash


2,420



2,420


Mortgage loans held for sale, net


119,246



119,549


Mortgage loans held for investment, net


9,716



9,923


Other assets


5,391



4,557




Total Financial Services Assets


142,619



143,096





Total Assets

$

3,125,699


$

3,113,074











LIABILITIES AND EQUITY






Homebuilding:







Accounts payable

$

20,868


$

22,446


Accrued liabilities


186,712



198,144


Secured project debt and other notes payable


4,423



11,516


Senior notes payable


1,531,147



1,530,502




Total Homebuilding Liabilities


1,743,150



1,762,608

Financial Services:







Accounts payable and other liabilities


2,066



2,491


Mortgage credit facilities


93,276



92,159




Total Financial Services Liabilities


95,342



94,650





Total Liabilities


1,838,492



1,857,258

Equity:







Stockholders' Equity:








Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares issued and outstanding at March 31, 2013 and December 31, 2012


5



5



Common stock, $0.01 par value; 600,000,000 shares authorized; 215,210,139 and 213,245,488 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively


2,152



2,132



Additional paid-in capital


1,341,223



1,333,255



Accumulated deficit


(55,524)



(77,348)



Accumulated other comprehensive loss, net of tax


(649)



(2,228)




Total Equity


1,287,207



1,255,816





Total Liabilities and Equity

$

3,125,699


$

3,113,074











 





INVENTORIES






March 31,


December 31,


2013


2012


(Dollars in thousands)

Inventories Owned:

(Unaudited)







     Land and land under development

$ 1,450,962


$  1,444,161

     Homes completed and under construction

495,110


427,196

     Model homes

103,630


100,061

        Total inventories owned

$ 2,049,702


$  1,971,418





Inventories Owned by Segment:








     California

$ 1,087,285


$  1,086,159

     Southwest

504,391


461,201

     Southeast

458,026


424,058

        Total inventories owned

$ 2,049,702


$  1,971,418





 







CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS












Three Months Ended March 31,






2013


2012






(Dollars in thousands)






(Unaudited)

Cash Flows From Operating Activities:







Net income

$

21,824


$

8,523


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









Amortization of stock-based compensation


1,531



1,074




Deposit write-offs


 ―   



133




Deferred income taxes


13,374



 ―   




Other operating activities


1,412



2,128




Changes in cash and equivalents due to:










Trade and other receivables


(8,916)



(6,991)





Mortgage loans held for sale


140



8,533





Inventories - owned


(73,030)



(44,201)





Inventories - not owned


(4,940)



(2,627)





Other assets


1,829



1,028





Accounts payable


(1,578)



1,915





Accrued liabilities


(10,107)



(11,633)



Net cash provided by (used in) operating activities


(58,461)



(42,118)











Cash Flows From Investing Activities:







Investments in unconsolidated homebuilding joint ventures


(2,552)



(2,867)


Distributions of capital from unconsolidated joint ventures


1,320



989


Other investing activities


(369)



(468)



Net cash provided by (used in) investing activities


(1,601)



(2,346)











Cash Flows From Financing Activities:







Change in restricted cash


(662)



3,574


Principal payments on secured project debt and other notes payable


(7,093)



(466)


Net proceeds from (payments on) mortgage credit facilities


1,117



2,721


Proceeds from the exercise of stock options


6,458



778



Net cash provided by (used in) financing activities


(180)



6,607











Net increase (decrease) in cash and equivalents


(60,242)



(37,857)

Cash and equivalents at beginning of period


346,555



410,522

Cash and equivalents at end of period

$

286,313


$

372,665











Cash and equivalents at end of period

$

286,313


$

372,665

Homebuilding restricted cash at end of period


27,562



27,798

Financial services restricted cash at end of period


2,420



1,295

Cash and equivalents and restricted cash at end of period

$

316,295


$

401,758











 






REGIONAL OPERATING DATA










Three Months Ended March 31, 





2013


2012


% Change

New homes delivered:







California

400


225


78%


Arizona

63


46


37%


Texas

133


124


7%


Colorado

43


24


79%


Nevada

       ―   


3


(100%)


Florida

183


126


45%


Carolinas

125


94


33%




Consolidated total

947


642


48%


Unconsolidated joint ventures

14


4


250%




Total (including joint ventures)

961


646


49%

































Three Months Ended March 31, 






2013


2012


% Change






(Dollars in thousands)

Average selling prices of homes delivered:










California


$

492


$

498


(1%)


Arizona



249



208


20%


Texas



348



298


17%


Colorado



400



377


6%


Nevada



      ―  



190


      ―  


Florida



259



246


5%


Carolinas



254



226


12%




Consolidated



375



343


9%


Unconsolidated joint ventures



510



460


11%




Total (including joint ventures)


$

377


$

344


10%


















Three Months Ended March 31,






2013


2012


% Change

Net new orders:








California


482


327


47%


Arizona


75


83


(10%)


Texas


242


141


72%


Colorado


62


26


138%


Nevada


        ―  


5


(100%)


Florida


293


186


58%


Carolinas


240


166


45%




Consolidated total


1,394


934


49%


Unconsolidated joint ventures


9


8


13%




Total (including joint ventures)


1,403


942


49%
















Three Months Ended March 31,






2013


2012


% Change

Average number of selling communities 







  during the period:








California


44


51


(14%)


Arizona


8


9


(11%)


Texas


29


19


53%


Colorado


7


6


17%


Nevada


         ―  


1


(100%)


Florida


37


37


         ―  


Carolinas


33


35


(6%)




Consolidated total


158


158


         ―  


Unconsolidated joint ventures


         ―  


3


(100%)




Total (including joint ventures)


158


161


(2%)





























At March 31,






2013


2012


% Change






Homes


Dollar Value


Homes


Dollar Value


Homes


Dollar Value






(Dollars in thousands)

Backlog:




















California



522


$

284,034



276


$

142,152



89%



100%


Arizona



89



24,886



94



18,384



(5%)



35%


Texas



313



126,276



166



53,438



89%



136%


Colorado



94



42,374



35



14,118



169%



200%


Nevada



―   



 ―   



5



953



(100%)



(100%)


Florida



476



134,880



222



57,632



114%



134%


Carolinas



357



107,202



175



45,207



104%



137%




Consolidated total



1,851



719,652



973



331,884



90%



117%


Unconsolidated joint ventures



7



3,241



7



3,304



          ―   



(2%)




Total (including joint ventures)



1,858


$

722,893



980


$

335,188



90%



116%

















































At March 31,





2013


2012


% Change

Homesites owned and controlled:








California


10,407


9,031


15%


Arizona


1,902


1,826


4%


Texas


5,165


4,199


23%


Colorado


1,174


666


76%


Nevada


1,124


1,130


(1%)


Florida


8,445


6,276


35%


Carolinas


3,906


2,989


31%



Total (including joint ventures)


32,123


26,117


23%











Homesites owned


25,689


19,935


29%


Homesites optioned or subject to contract 


5,837


4,960


18%


Joint venture homesites


597


1,222


(51%)



Total (including joint ventures)


32,123


26,117


23%



















Homesites owned:








Raw lots


5,722


2,749


108%


Homesites under development


8,371


5,897


42%


Finished homesites


5,616


5,531


2%


Under construction or completed homes


2,583


1,872


38%


Held for sale


3,397


3,886


(13%)



Total


25,689


19,935


29%










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


March 31,

2013


Gross

Margin %


March 31,

2012


Gross

Margin %


December 31,

2012


Gross

Margin %


(Dollars in thousands)
















Home sale revenues

$

355,126




$

220,317




$

377,674



Less: Cost of home sales


(280,612)





(175,595)





(299,105)



Gross margin from home sales


74,514


21.0%



44,722


20.3%



78,569


20.8%

Add: Capitalized interest included in cost of home sales


27,696


7.8%



18,556


8.4%



30,592


8.1%

Gross margin from home sales, excluding interest amortized to cost of home sales

$

102,210


28.8%


$

63,278


28.7%


$

109,161


28.9%
















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


March 31,

2013


March 31,

2012


December 31,

2012


(Dollars in thousands)










Cash flows used in operations

$

(58,461)


$

(42,118)


$

(111,980)

Add: Cash land purchases 


71,541



33,986



204,796

Add: Land development costs


47,152



31,778



62,806

Cash inflows from operations (excluding land purchases and development costs)

$

60,232


$

23,646


$

155,622










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.

 



March 31,

2013


December 31,

2012


March 31,

2012



(Dollars in thousands)











Total consolidated debt

$

1,628,846


$

1,634,177


$

1,375,609

Less:










Financial services indebtedness


(93,276)



(92,159)



(49,529)


Homebuilding cash


(308,029)



(366,808)



(394,368)

Adjusted net homebuilding debt


1,227,541



1,175,210



931,712

Stockholders' equity


1,287,207



1,255,816



637,912

Total adjusted book capitalization

$

2,514,748


$

2,431,026


$

1,569,624











Total consolidated debt to book capitalization


55.9%



56.5%



68.3%











Adjusted net homebuilding debt to total adjusted book capitalization


48.8%



48.3%



59.4%





















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.

 


March 31,


December 31,


2013


2012







Actual common shares outstanding


215,210,139



213,245,488

Add: Conversion of preferred shares to common shares


147,812,786



147,812,786

Pro forma common shares outstanding


363,022,925



361,058,274







Stockholders' equity (Dollars in thousands)

$

1,287,207


$

1,255,816

Divided by pro forma common shares outstanding

÷

363,022,925


÷

361,058,274

Pro forma stockholders' equity per common share

$

3.55


$

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


LTM Ended March 31,



March 31,

2013


March 31,

2012


December 31,

2012


2013


2012



(Dollars in thousands)

















Net income 

$

21,824


$

8,523


$

486,925


$

544,722


$

6,903


Provision (benefit) for income taxes


13,569



187



(453,804)



(439,852)



31


Homebuilding interest amortized to cost of sales and interest expense


27,885



21,105



34,364



117,078



94,414


Homebuilding depreciation and amortization


628



590



617



2,410



2,571


Amortization of stock-based compensation


1,531



1,074



2,633



7,608



10,391

EBITDA


65,437



31,479



70,735



231,966



114,310

Add:
















Cash distributions of income from unconsolidated joint ventures


1,875



       ―  



2,625



5,785



       ―  


Impairment charges and deposit write-offs


       ―  



133



       ―  



       ―  



15,467

Less:
















Income (loss) from unconsolidated joint ventures


1,134



(1,522)



617



566



(1,058)


Income from financial services subsidiary


2,355



1,366



3,941



11,227



4,230

Adjusted Homebuilding EBITDA

$

63,823


$

31,768


$

68,802


$

225,958


$

126,605

















Homebuilding revenues

$

357,721


$

223,702


$

419,843


$

1,370,977


$

962,996

















Adjusted Homebuilding EBITDA Margin %


17.8%



14.2%



16.4%



16.5%



13.1%

















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 March 31,





March 31,

2013


March 31,

2012


December 31,

2012


2013


2012





(Dollars in thousands)



















Net cash provided by (used in) operating activities

$

(58,461)


$

(42,118)


$

(111,980)


$

(299,459)


$

(254,581)

Add:
















Provision for income taxes


195



187



196



774



31


Homebuilding interest amortized to cost of sales and interest expense


27,885



21,105



34,364



117,078



94,414

Less:
















Income from financial services subsidiary


2,355



1,366



3,941



11,227



4,230


Depreciation and amortization from financial services subsidiary


28



16



32



120



284


Loss on disposal of property and equipment


15



        ―   



22



52



177

Net changes in operating assets and liabilities:

















Trade and other receivables


8,916



6,991



(12,944)



1,124



11,186



Mortgage loans held for sale


(140)



(8,533)



32,323



54,732



45,422



Inventories-owned


73,030



44,201



129,807



344,468



221,502



Inventories-not owned


4,940



2,627



20,861



33,864



19,544



Other assets


(1,829)



(1,028)



(1,696)



(3,419)



(4,100)



Accounts payable 


1,578



(1,915)



(5,988)



(1,124)



(3,959)



Accrued liabilities


10,107



11,633



(12,146)



(10,681)



1,837

Adjusted Homebuilding EBITDA

$

63,823


$

31,768


$

68,802


$

225,958


$

126,605


















SOURCE Standard Pacific Corp.



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