Standard Pacific Corp. Reports 2014 Second Quarter Results Q2 2014 pretax income of $91.8 million, up 80% from Q2 2013

Q2 2014 backlog value of $1.1 billion, up 20% from Q2 2013

IRVINE, Calif., July 31, 2014 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the second quarter ended June 30, 2014.

2014 Second Quarter Highlights and Comparisons to the 2013 Second Quarter

  • Net income of $56.5 million, or $0.14 per diluted share, vs. $43.1 million, or $0.11 per diluted share
  • Pretax income of $91.8 million, up 80%
  • Net new orders of 1,524, up 1%; Dollar value of net new orders up 10%
  • Backlog of 2,304 homes, up 1%; Dollar value of backlog up 20%
  • 183 average active selling communities, up 12%
  • Home sale revenues of $591.7 million, up 36%
  • Average selling price of $479 thousand, up 21%
  • 1,236 new home deliveries, up 13%
  • Gross margin from home sales of 26.6%, compared to 23.7%
  • Operating margin from home sales of $89.7 million, or 15.2%, compared to $48.2 million, or 11.1%
  • $212.0 million of land purchases and development costs, compared to $311.2 million

Scott Stowell, the Company's President and Chief Executive Officer stated, "Our 2014 second quarter performance reflects the strength of our positioning and the continued execution of our strategy. Our early efforts to build a strong land position and to create an innovative product portfolio for the move-up homebuyer, combined with the unwavering focus of our team on constructing well built homes and providing an exceptional customer experience, have all contributed to our 80% increase in pretax profit and our solid operating margin, which was 15.2% for the 2014 second quarter."      

Revenue.  Revenues from home sales for the 2014 second quarter increased 36%, to $591.7 million, as compared to the prior year period, resulting primarily from a 21% increase in the Company's average home price to $479 thousand, the highest quarterly average home price in the Company's nearly 50 year history, and a 13% increase in new home deliveries.  The increase in average home price was primarily attributable to a shift to more move-up product, a continued reduction in the use of sales incentives, and general price increases within a majority of the Company's markets.  The increase in new home deliveries was driven by a 6% year-over-year increase in the number of homes in beginning backlog expected to close during the quarter and a 30% increase in speculative homes sold and closed compared to the prior year period. 

Orders.  Net new orders for the 2014 second quarter were up slightly from the 2013 second quarter, to 1,524 homes, with the dollar value of these orders up 10%.  The Company's monthly sales absorption rate was 2.8 per community (2.6 per community excluding the impact of the acquisition of 99 homes under contract for sale in Austin, Texas) for the 2014 second quarter, compared to 2.5 per community for the 2014 first quarter. The increase in sales absorption rate from the 2014 first quarter to the 2014 second quarter was consistent with the seasonality we typically experience in our business. The Company's cancellation rate for the 2014 second quarter was 14%, compared to 11% for the 2013 second quarter and 14% for the 2014 first quarter.  Our 2014 second quarter cancellation rate remains well below our average historical cancellation rate of approximately 21% over the last 10 years.    

Backlog.  The dollar value of homes in backlog increased 20% to $1.1 billion, or 2,304 homes, compared to $947.6 million, or 2,272 homes, for the 2013 second quarter, and increased 14% compared to $1.0 billion, or 2,016 homes, for the 2014 first quarter.  The increase in year-over-year backlog value was driven primarily by an 18% increase in the average selling price of the homes in backlog, reflecting the continued execution of our move-up buyer focused strategy and pricing opportunities in select markets.

Land.  During the 2014 second quarter, the Company spent $212.0 million on land purchases and development costs, compared to $311.2 million for the 2013 second quarter. The Company purchased $113.0 million of land, 1,309 homesites, of which 40% (based on homesites) was located in Florida, 28% in Texas, 16% in California, 13% in the Carolinas and 3% in Colorado.  As of June 30, 2014, the Company owned or controlled 35,948 homesites, of which 24,104 were owned and actively selling or under development, 7,174 were controlled or under option, and the remaining 4,670 homesites were held for future development or for sale.  The homesites owned that are actively selling or under development represent a 5.0 year supply based on the Company's deliveries for the trailing twelve months ended June 30, 2014.

Liquidity.  The Company ended the quarter with $570 million of available liquidity, including $130 million of unrestricted homebuilding cash and a $440 million untapped revolving credit facility. The untapped revolving credit facility was amended on July 31, 2014 to, among other things, extend the maturity date to July 2018, increase the aggregate commitment to $450 million, and expand the accordion feature to permit the aggregate commitment to be increased to a maximum amount of $750 million, subject to the Company's future needs and the availability of additional bank capacity.  The credit facility's financial covenants were not altered in connection with the amendment. The Company's homebuilding debt to book capitalization as of June 30, 2014 and 2013 was 53.8% and 53.5%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 51.6%* and 52.0%*, respectively.  In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending June 30, 2014 and 2013 was 4.1x* and 5.8x*, respectively.

Earnings Conference Call

A conference call to discuss the Company's 2014 second quarter results will be held at 12:00 p.m. Eastern time August 1, 2014.  The call will be broadcast live over the Internet and can be accessed through the Company's website at http://ir.standardpacifichomes.com.  The call will also be accessible via telephone by dialing (877) 723-9523 (domestic) or (719) 325-4749 (international); Passcode: 6252778.  The audio transmission with the slide presentation will be available on our website for replay within 2 to 3 hours following the live broadcast, and can be accessed by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international); Passcode: 6252778.

About Standard Pacific

Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965.  With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers.  Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.

This news release contains forward-looking statements.  These statements include but are not limited to statements regarding the strength of our land position and product portfolio; construction quality and customer experience; new home orders; deliveries; backlog; absorption rates; average home price; pricing power; revenue; profitability; cash flow; liquidity; gross margin; operating margin; product mix; land supply; the benefit of, and execution on, our strategy; our future cash needs and the availability of additional bank commitments; and our future performance.  Forward-looking statements are based on our current expectations or beliefs regarding future events or circumstances, and you should not place undue reliance on these statements.  Such statements involve known and unknown risks, uncertainties, assumptions and other factors many of which are out of the Company's control and difficult to forecast that may cause actual results to differ materially from those that may be described or implied.  Such factors include but are not limited to:  local and general economic and market conditions, including consumer confidence, employment rates, interest rates, the cost and availability of mortgage financing, and stock market, home and land valuations; the impact on economic conditions, terrorist attacks or the outbreak or escalation of armed conflict involving the United States; the cost and availability of suitable undeveloped land, building materials and labor; the cost and availability of construction financing and corporate debt and equity capital; our significant amount of debt and the impact of restrictive covenants in our debt agreements; our ability to repay our debt as it comes due; changes in our credit rating or outlook; the demand for and affordability of single-family homes; the supply of housing for sale; cancellations of purchase contracts by homebuyers; the cyclical and competitive nature of the Company's business; governmental regulation, including the impact of "slow growth" or similar initiatives; delays in the land entitlement process, development, construction, or the opening of new home communities; adverse weather conditions and natural disasters; environmental matters; risks relating to the Company's mortgage banking operations; future business decisions and the Company's ability to successfully implement the Company's operational and other strategies; litigation and warranty claims; and other risks discussed in the Company's filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2013 and subsequent Quarterly Reports on Form 10-Q.  The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements.  The Company nonetheless reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release.  No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

Contact:
Jeff McCall, EVP & CFO (949) 789-1655, jmccall@stanpac.com

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

(Note: Tables Follow)

 


KEY STATISTICS AND FINANCIAL DATA1





As of or For the Three Months Ended




June 30,


June 30,


Percentage


March 31,


Percentage




2014


2013


or % Change


2014


or % Change

Operating Data

(Dollars in thousands)
















Deliveries


1,236



1,095


13%



995


24%

Average selling price

$

479


$

397


21%


$

449


7%

Home sale revenues

$

591,706


$

434,308


36%


$

446,918


32%

Gross margin % (including land sales)


26.7%



23.4%


3.3%



25.8%


0.9%

Gross margin % from home sales


26.6%



23.7%


2.9%



26.6%


        ―  

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


31.7%



30.7%


1.0%



32.0%


(0.3%)

Incentive and stock-based compensation expense

$

6,724


$

5,927


13%


$

5,028


34%

Selling expenses

$

28,782


$

22,146


30%


$

22,699


27%

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

$

32,329


$

26,525


22%


$

30,863


5%

SG&A expenses

$

67,835


$

54,598


24%


$

58,590


16%

SG&A % from home sales


11.5%



12.6%


(1.1%)



13.1%


(1.6%)

Operating margin from home sales

$

89,675


$

48,207


86%


$

60,083


49%

Operating margin % from home sales


15.2%



11.1%


4.1%



13.4%


1.8%

Net new orders (homes)


1,524



1,516


1%



1,311


16%

Net new orders (dollar value)

$

713,347


$

648,299


10%


$

633,818


13%

Average active selling communities


183



164


12%



174


5%

Monthly sales absorption rate per community


2.8



3.1


(10%)



2.5


11%

Cancellation rate


14%



11%


3%



14%


        ―  

Gross cancellations


247



184


34%



221


12%

Cancellations from current quarter sales


93



87


7%



90


3%

Backlog (homes)


2,304



2,272


1%



2,016


14%

Backlog (dollar value)

$

1,138,886


$

947,584


20%


$

1,001,385


14%
















Cash flows (uses) from operating activities

$

(25,949)


$

(90,743)


71%


$

(117,563)


78%

Cash flows (uses) from investing activities

$

(36,050)


$

(125,253)


71%


$

10,286



Cash flows (uses) from financing activities

$

4,426


$

10,319


(57%)


$

(50,902)



Land purchases (incl. seller financing)

$

113,001


$

235,991


(52%)


$

144,744


(22%)

Adjusted Homebuilding EBITDA*

$

125,730


$

82,376


53%


$

89,008


41%

Adjusted Homebuilding EBITDA Margin %*


21.2%



18.8%


2.4%



19.3%


1.9%

Homebuilding interest incurred

$

37,641


$

33,526


12%


$

38,786


(3%)

Homebuilding interest capitalized to inventories owned

$

37,228


$

32,782


14%


$

38,213


(3%)

Homebuilding interest capitalized to investments in JVs

$

413


$

744


(44%)


$

573


(28%)

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

$

29,816


$

30,662


(3%)


$

24,983


19%



















As of 





June 30,


December 31,


Percentage









2014


2013


or % Change


Balance Sheet Data

(Dollars in thousands, except per share amounts)





















Homebuilding cash (including restricted cash)

$

161,121


$

376,949


(57%)






Inventories owned

$

2,902,840


$

2,536,102


14%






Homesites owned and controlled


35,948



35,175


2%






Homes under construction


2,602



2,001


30%






Completed specs


347



327


6%






Deferred tax asset valuation allowance

$

4,591


$

4,591


      ―  






Homebuilding debt

$

1,834,837


$

1,839,595


(0%)






Stockholders' equity

$

1,572,583


$

1,468,960


7%






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

$

4.28


$

4.02


6%






Total consolidated debt to book capitalization


54.7%



56.9%


(2.2%)






Adjusted net homebuilding debt to total adjusted book capitalization*


51.6%



49.9%


1.7%







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 June 30,


Six Months Ended June 30,





2014


2013


2014


2013





(Dollars in thousands, except per share amounts)





(Unaudited)

Homebuilding:













Home sale revenues

$

591,706


$

434,308


$

1,038,624


$

789,434


Land sale revenues


780



4,373



14,061



6,968



Total revenues


592,486



438,681



1,052,685



796,402


Cost of home sales


(434,196)



(331,503)



(762,441)



(612,115)


Cost of land sales


(350)



(4,416)



(13,354)



(6,999)



Total cost of sales


(434,546)



(335,919)



(775,795)



(619,114)




Gross margin


157,940



102,762



276,890



177,288




Gross margin %


26.7%



23.4%



26.3%



22.3%


Selling, general and administrative expenses


(67,835)



(54,598)



(126,425)



(100,892)


Income (loss) from unconsolidated joint ventures


(462)



147



(899)



1,281


Other income (expense)


(363)



(1,247)



(376)



2,323




Homebuilding pretax income 


89,280



47,064



149,190



80,000

Financial Services:













Revenues


6,112



7,411



11,096



13,088


Expenses


(3,760)



(3,482)



(7,200)



(6,804)


Other income


214



151



375



253




Financial services pretax income


2,566



4,080



4,271



6,537

Income before taxes


91,846



51,144



153,461



86,537

Provision for income taxes


(35,383)



(8,008)



(58,839)



(21,577)

Net income 


56,463



43,136



94,622



64,960

  Less: Net income allocated to preferred shareholder


(13,496)



(14,293)



(22,650)



(23,991)

  Less: Net income allocated to unvested restricted stock


(77)



(66)



(134)



(82)

Net income available to common stockholders

$

42,890


$

28,777


$

71,838


$

40,887
















Income Per Common Share:













Basic


$

0.15


$

0.12


$

0.26


$

0.18


Diluted

$

0.14


$

0.11


$

0.23


$

0.16
















Weighted Average Common Shares Outstanding:













Basic



279,075,416



243,171,726



278,514,992



228,749,443


Diluted


316,727,592



281,708,696



316,451,929



267,274,060
















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


87,812,786



120,779,819



87,812,786



134,221,626
















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


404,540,378



402,488,515



404,264,715



401,495,686

 

CONDENSED CONSOLIDATED BALANCE SHEETS








June 30,


December 31,







2014


2013







(Dollars in thousands)

ASSETS

(Unaudited)




Homebuilding:







Cash and equivalents

$

129,736


$

355,489


Restricted cash



31,385



21,460


Trade and other receivables


25,446



14,431


Inventories:










Owned




2,902,840



2,536,102



Not owned



89,906



98,341


Investments in unconsolidated joint ventures


50,278



66,054


Deferred income taxes, net


334,095



375,400


Other assets




46,353



45,977




Total Homebuilding Assets


3,610,039



3,513,254

Financial Services:







Cash and equivalents


17,803



7,802


Restricted cash



1,295



1,295


Mortgage loans held for sale, net


79,343



122,031


Mortgage loans held for investment, net


12,233



12,220


Other assets




7,451



5,503




Total Financial Services Assets


118,125



148,851





Total Assets

$

3,728,164


$

3,662,105












LIABILITIES AND EQUITY






Homebuilding:







Accounts payable


$

41,920


$

35,771


Accrued liabilities



209,859



214,266


Secured project debt and other notes payable


5,054



6,351


Senior notes payable


1,829,783



1,833,244




Total Homebuilding Liabilities


2,086,616



2,089,632

Financial Services:







Accounts payable and other liabilities


2,386



2,646


Mortgage credit facilities


66,579



100,867




Total Financial Services Liabilities


68,965



103,513





Total Liabilities


2,155,581



2,193,145

Equity:







Stockholders' Equity:








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








    authorized; 267,829 shares issued and outstanding








    at June 30, 2014 and December 31, 2013


3



3



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








    authorized; 279,287,853 and 277,618,177 shares 








    issued and outstanding at June 30, 2014 and








    December 31, 2013, respectively


2,793



2,776



Additional paid-in capital


1,363,798



1,354,814



Accumulated earnings


205,989



111,367




Total Equity


1,572,583



1,468,960





Total Liabilities and Equity

$

3,728,164


$

3,662,105

 

INVENTORIES






June 30,


December 31,





2014


2013





(Dollars in thousands)

Inventories Owned:




(Unaudited)










     Land and land under development




$ 1,883,837


$ 1,771,661

     Homes completed and under construction




876,199


628,371

     Model homes




142,804


136,070

        Total inventories owned




$ 2,902,840


$ 2,536,102








Inventories Owned by Segment:














     California




$ 1,274,707


$ 1,182,520

     Southwest




742,513


603,303

     Southeast




885,620


750,279

        Total inventories owned




$ 2,902,840


$ 2,536,102

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







Three Months Ended June 30,


Six Months Ended June 30,






2014


2013


2014


2013






(Dollars in thousands)






(Unaudited)

Cash Flows From Operating Activities:













Net income

$

56,463


$

43,136


$

94,622


$

64,960


Adjustments to reconcile net income to net cash 














provided by (used in) operating activities:















Amortization of stock-based compensation


2,859



2,444



5,231



3,975




Deferred income tax provision


35,383



7,809



59,005



21,183




Other operating activities


3,595



2,084



5,211



3,496




Changes in cash and equivalents due to:
















Trade and other receivables


6,416



(10,732)



(11,133)



(19,648)





Mortgage loans held for sale


(9,364)



11,818



42,574



11,958





Inventories - owned


(127,264)



(156,993)



(316,023)



(230,023)





Inventories - not owned


(6,629)



(4,770)



(14,794)



(9,710)





Other assets


(1,142)



(3,083)



(1,975)



(1,254)





Accounts payable


4,773



1,198



6,149



(380)





Accrued liabilities


8,961



16,346



(12,379)



6,239



Net cash provided by (used in) operating activities


(25,949)



(90,743)



(143,512)



(149,204)

















Cash Flows From Investing Activities:













Investments in unconsolidated homebuilding joint ventures


(2,890)



(8,200)



(5,677)



(10,752)


Distributions of capital from unconsolidated joint ventures


       ―   



249



14,808



1,569


Net cash paid for acquisitions


(33,408)



(113,793)



(33,408)



(113,793)


Other investing activities


248



(3,509)



(1,487)



(3,878)



Net cash provided by (used in) investing activities


(36,050)



(125,253)



(25,764)



(126,854)

















Cash Flows From Financing Activities:













Change in restricted cash


(4,687)



2,725



(9,925)



2,063


Principal payments on secured project debt and other notes payable


(171)



(124)



(1,061)



(7,217)


Principal payments on senior notes payable


(4,971)



       ―   



(4,971)



       ―   


Net proceeds from (payments on) mortgage credit facilities


14,082



3,688



(34,288)



4,805


Payment of issuance costs in connection with preferred shareholder equity transaction


       ―   



(347)



       ―   



(347)


Proceeds from the exercise of stock options


173



4,377



3,769



10,835



Net cash provided by (used in) financing activities


4,426



10,319



(46,476)



10,139

















Net increase (decrease) in cash and equivalents


(57,573)



(205,677)



(215,752)



(265,919)

Cash and equivalents at beginning of period


205,112



286,313



363,291



346,555

Cash and equivalents at end of period

$

147,539


$

80,636


$

147,539


$

80,636

















Cash and equivalents at end of period

$

147,539


$

80,636


$

147,539


$

80,636

Homebuilding restricted cash at end of period


31,385



25,462



31,385



25,462

Financial services restricted cash at end of period


1,295



1,795



1,295



1,795

Cash and equivalents and restricted cash at end of period

$

180,219


$

107,893


$

180,219


$

107,893

 

REGIONAL OPERATING DATA







Three Months Ended June 30,






2014


2013


% Change






Homes


ASP


Homes


ASP


Homes


ASP






(Dollars in thousands)

New homes delivered:




















California



439


$

662



419


$

538



5%



23%



Arizona



60



309



57



249



5%



24%



Texas



179



466



155



399



15%



17%



Colorado



58



510



38



441



53%



16%


Southwest



297



443



250



371



19%



19%



Florida



265



368



239



261



11%



41%



Carolinas



235



306



187



289



26%



6%


Southeast



500



339



426



273



17%



24%




Consolidated total



1,236



479



1,095



397



13%



21%


Unconsolidated joint ventures



―    



―   



7



474



(100%)



―   




Total (including joint ventures)



1,236


$

479



1,102


$

397



12%



21%

 






Six Months Ended June 30,






2014


2013


% Change






Homes


ASP


Homes


ASP


Homes


ASP






(Dollars in thousands)

New homes delivered:




















California



778


$

645



819


$

515



(5%)



25%



Arizona



123



307



120



249



3%



23%



Texas



328



443



288



375



14%



18%



Colorado



111



498



81



419



37%



19%


Southwest



562



424



489



352



15%



20%



Florida



500



360



422



260



18%



38%



Carolinas



391



303



312



275



25%



10%


Southeast



891



335



734



266



21%



26%




Consolidated total



2,231



466



2,042



387



9%



20%


Unconsolidated joint ventures





―   



21



498



(100%)



―   




Total (including joint ventures)



2,231


$

466



2,063


$

388



8%



20%

 






Three Months Ended June 30,






2014


2013


% Change






Homes


ASP


Homes


ASP


Homes


ASP






(Dollars in thousands)

Net new orders:




















California



498


$

611



513


$

590



(3%)



4%



Arizona



75



309



78



321



(4%)



(4%)



Texas



359



436



216



411



66%



6%



Colorado



75



526



65



460



15%



14%


Southwest



509



431



359



400



42%



8%



Florida



258



420



443



331



(42%)



27%



Carolinas



259



314



201



275



29%



14%


Southeast



517



367



644



313



(20%)



17%




Consolidated total



1,524



468



1,516



428



1%



9%


Unconsolidated joint ventures





 ―



1



646



(100%)






Total (including joint ventures)



1,524


$

468



1,517


$

428



0%



9%























 






Six Months Ended June 30,






2014


2013


% Change






Homes


ASP


Homes


ASP


Homes


ASP






(Dollars in thousands)

Net new orders:




















California



971


$

628



995


$

563



(2%)



12%



Arizona



142



307



153



302



(7%)



2%



Texas



594



447



458



397



30%



13%



Colorado



128



507



127



442



1%



15%


Southwest



864



433



738



385



17%



12%



Florida



541



407



736



316



(26%)



29%



Carolinas



459



311



441



272



4%



14%


Southeast



1,000



363



1,177



299



(15%)



21%




Consolidated total



2,835



475



2,910



411



(3%)



16%


Unconsolidated joint ventures







10



538



(100%)



   ―




Total (including joint ventures)



2,835


$

475



2,920


$

412



(3%)



15%

 






Three Months Ended June 30,


Six Months Ended June 30,






2014


2013


% Change


2014


2013


% Change

Average number of selling communities 













  during the period:














California


48


46


4%


47


46


2%



Arizona


10


9


11%


10


8


25%



Texas


38


30


27%


37


30


23%



Colorado


11


8


38%


11


7


57%


Southwest


59


47


26%


58


45


29%



Florida


45


41


10%


43


39


10%



Carolinas


31


30


3%


31


31


        ―  


Southeast


76


71


7%


74


70


6%




Consolidated total


183


164


12%


179


161


11%

















 






At June 30,






2014


2013


% Change






Homes


Dollar Value


Homes


Dollar Value


Homes


Dollar Value






(Dollars in thousands)

Backlog:




















California



589


$

378,962



616


$

366,617



(4%)



3%



Arizona



124



43,678



110



36,330



13%



20%



Texas



556



261,384



374



156,036



49%



68%



Colorado



125



67,005



121



57,425



3%



17%


Southwest



805



372,067



605



249,791



33%



49%



Florida



545



262,827



680



220,621



(20%)



19%



Carolinas



365



125,030



371



110,555



(2%)



13%


Southeast



910



387,857



1,051



331,176



(13%)



17%




Consolidated total



2,304



1,138,886



2,272



947,584



1%



20%


Unconsolidated joint ventures



―    



―   



1



586



(100%)



(100%)




Total (including joint ventures)



2,304


$

1,138,886



2,273


$

948,170



1%



20%

 






At June 30,






2014


2013


% Change

Homesites owned and controlled:







     California


9,603


10,150


(5%)


   Arizona


2,242


1,975


14%


   Texas


5,204


5,220


(0%)


   Colorado


1,196


1,268


(6%)


   Nevada


1,124


1,124


          ―   

            Southwest


9,766


9,587


2%


   Florida


12,138


10,481


16%


   Carolinas


4,441


4,908


(10%)

            Southeast


16,579


15,389


8%


   Total (including joint ventures)


35,948


35,126


2%












Homesites owned


28,774


27,497


5%


Homesites optioned or subject to contract 


6,909


7,039


(2%)


Joint venture homesites


265


590


(55%)



Total (including joint ventures)


35,948


35,126


2%





















Homesites owned:








Raw lots


6,747


7,300


(8%)


Homesites under development


9,373


8,027


17%


Finished homesites


6,605


5,865


13%


Under construction or completed homes


3,548


2,908


22%


Held for sale


2,501


3,397


(26%)



Total


28,774


27,497


5%











 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Each of the below measures are non-GAAP financial measures and other companies may calculate such non-GAAP measures differently.  Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP.

The table set forth below reconciles the Company's gross margin percentage from home sales to the gross margin percentage from home sales, excluding interest amortized to cost of home sales.  We believe these measures are useful to management and investors as they provide perspective on the underlying operating performance of the business excluding these charges and provide comparability with the Company's peer group.


Three Months Ended


June 30,
2014


Gross
Margin %


June 30,
2013


Gross
Margin %


March 31,
 2014


Gross
Margin %


(Dollars in thousands)
















Home sale revenues

$

591,706




$

434,308




$

446,918



Less: Cost of home sales


(434,196)





(331,503)





(328,245)



Gross margin from home sales


157,510


26.6%



102,805


23.7%



118,673


26.6%

Add: Capitalized interest included in cost of home sales


29,812


5.1%



30,337


7.0%



24,368


5.4%

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

$

187,322


31.7%


$

133,142


30.7%


$

143,041


32.0%

 

The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total consolidated debt to book capitalization and adjusted net homebuilding debt to total adjusted book capitalization ratios.  In addition, the table set forth below calculates homebuilding debt to adjusted homebuilding EBITDA.  We believe these ratios are useful to management and investors as a measure of the Company's ability to obtain financing.  For purposes of the ratio of adjusted net homebuilding debt to total adjusted book capitalization, total adjusted book capitalization is adjusted net homebuilding debt plus stockholders' equity.  Adjusted net homebuilding debt excludes indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents. 




June 30,
2014


March 31,
2014


December 31,
2013


June 30,
2013




(Dollars in thousands)















Total consolidated debt

$

1,901,416


$

1,892,491


$

1,940,462


$

1,633,985

Less:












        Financial services indebtedness


(66,579)



(52,497)



(100,867)



(96,964)

        Homebuilding cash


(161,121)



(221,400)



(376,949)



(90,589)

Adjusted net homebuilding debt


1,673,716



1,618,594



1,462,646



1,446,432

Stockholders' equity


1,572,583



1,513,087



1,468,960



1,337,468

Total adjusted book capitalization

$

3,246,299


$

3,131,681


$

2,931,606


$

2,783,900















Total consolidated debt to book capitalization


54.7%



55.6%



56.9%



55.0%















Adjusted net homebuilding debt to total adjusted book capitalization


51.6%



51.7%



49.9%



52.0%





























Homebuilding debt

$

1,834,837








$

1,537,021

LTM adjusted homebuilding EBITDA


452,160









266,524

Homebuilding debt to adjusted homebuilding EBITDA


 4.1x 









 5.8x 

 

The table set forth below calculates pro forma stockholders' equity per common share. The Company believes that the pro forma stockholders' equity per common share information is useful to management and investors as a measure to determine the book value per common share after giving effect to the conversion of our outstanding preferred shares assuming full conversion to common stock.


June 30,


March 31,


December 31,


2014


2014


2013










Actual common shares outstanding


279,287,853



278,776,082



277,618,177

Add: Conversion of preferred shares to common shares


87,812,786



87,812,786



87,812,786

Pro forma common shares outstanding


367,100,639



366,588,868



365,430,963










Stockholders' equity (Dollars in thousands)

$

1,572,583


$

1,513,087


$

1,468,960

Divided by pro forma common shares outstanding

÷

367,100,639


÷

366,588,868


÷

365,430,963

Pro forma stockholders' equity per common share

$

4.28


$

4.13


$

4.02

 

The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing. Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP.




Three Months Ended


LTM Ended June 30,




June 30,
2014


June 30,
2013


March 31,
2014


2014


2013




(Dollars in thousands)


















Net income 

$

56,463


$

43,136


$

38,159


$

218,377


$

573,595


Provision (benefit) for income taxes


35,383



8,008



23,456



106,245



(432,033)


Homebuilding interest amortized to cost of sales and interest expense


29,816



30,662



24,983



118,030



121,658


Homebuilding depreciation and amortization


1,224



702



1,145



4,494



2,537


Amortization of stock-based compensation


2,859



2,444



2,372



10,271



8,167

EBITDA


125,745



84,952



90,115



457,417



273,924

Add:
















Cash distributions of income from unconsolidated joint ventures


1,875



1,500



       ―  



1,875



7,125

Less:

















Income (loss) from unconsolidated joint ventures


(462)



147



(437)



(1,231)



1,859


Income from financial services subsidiary


2,352



3,929



1,544



8,363



12,666

Adjusted Homebuilding EBITDA

$

125,730


$

82,376


$

89,008


$

452,160


$

266,524


















Homebuilding revenues

$

592,486


$

438,681


$

460,199


$

2,170,892


$

1,534,786


















Adjusted Homebuilding EBITDA Margin %


21.2%



18.8%



19.3%



20.8%



17.4%

 

The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:





Three Months Ended


LTM Ended June 30,





June 30,
2014


June 30,
2013


March 31,
2014


2014


2013





(Dollars in thousands)



















Net cash provided by (used in) operating activities


$

(25,949)


$

(90,743)


$

(117,563)


$

(148,524)


$

(333,602)

Add:
















Provision (benefit) for income taxes


35,383



199



23,456



114,054



(439,842)


Deferred income tax benefit (provision)



(35,383)



        ―   



(23,622)



(129,845)



440,626


Homebuilding interest amortized to cost of sales and interest expense



29,816



30,662



24,983



118,030



121,658

Less:

















Income from financial services subsidiary


2,352



3,929



1,544



8,363



12,666


Depreciation and amortization from financial services subsidiary



34



28



33



132



120


Loss on disposal of property and equipment


        ―   



1



1



2



50

Net changes in operating assets and liabilities:

















Trade and other receivables


(6,416)



10,732



17,549



(5,271)



11,385



Mortgage loans held for sale



9,364



(11,818)



(51,938)



(28,073)



38,484



Inventories-owned


127,264



156,993



188,759



501,312



430,475



Inventories-not owned



6,629



4,770



8,165



48,403



37,762



Other assets


1,142



3,083



833



(244)



(1,441)



Accounts payable 



(4,773)



(1,198)



(1,376)



(19,854)



(5,690)



Accrued liabilities


(8,961)



(16,346)



21,340



10,669



(20,455)

Adjusted Homebuilding EBITDA


$

125,730


$

82,376


$

89,008


$

452,160


$

266,524

 

SOURCE Standard Pacific Corp.



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.