CALATLANTIC GROUP INC 
By 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 DATA(1)
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%)
(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 Year Ended
December 31, 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 Year Ended
December 31, 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 Year Ended
December 31, 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 Year Ended
December 31, 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 Year Ended
December 31, 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 Year Ended
December 31, 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, Gross December 31, Gross September 30, Gross
2012 Margin % 2011 Margin % 2012 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 2011 Gross
Margin % 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 adjustments
from
home
sales,
excluding
impairment
charges
and
warranty
accrual
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 and
from interest
home amortized
sales, to
excluding cost
impairment of
charges, home
warranty sales
accrual
adjustments
$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, December 31, September 30, 2012 2011
2012 2011 2012
---- ---- ----
(Dollars in thousands)
Cash flows used
in operations $(111,980) $(12,036) $(72,418) $(283,116) $(322,613)
Add: Land
purchases (excl.
seller financing
and JV
purchases) 204,796 49,759 101,363 436,729 303,721
Add: Land
development
costs 62,806 36,587 39,422 168,520 133,358
------ ------ ------ ------- -------
Cash inflows from
operations
(excluding land
purchases and
development
costs)
$155,622 $74,310 $68,367 $322,133 $114,466
======== ======= ======= ======== ========
The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total consolidated debt to book capitalization and adjusted net homebuilding debt to total adjusted book capitalization ratios. We believe that the adjusted net homebuilding debt to total adjusted book capitalization ratio is useful to management and investors as a measure of the Company's ability to obtain financing. For purposes of the ratio of adjusted net homebuilding debt to total adjusted book capitalization, total adjusted book capitalization is adjusted net homebuilding debt plus stockholders' equity. Adjusted net homebuilding debt excludes indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents.
At December 31,
---------------
2012 2011
---- ----
(Dollars in thousands)
Total consolidated debt $1,634,177 $1,371,756
Less:
Financial
services
indebtedness (92,159) (46,808)
Homebuilding
cash (366,808) (438,157)
Adjusted net homebuilding debt 1,175,210 886,791
Stockholders' equity 1,255,816 623,754
--------- -------
Total adjusted book capitalization $2,431,026 $1,510,545
========== ==========
Total consolidated debt to book
capitalization 56.5% 68.7%
==== ====
Adjusted net homebuilding debt to total
adjusted book capitalization 48.3% 58.7%
==== ====
The table set forth below calculates pro forma stockholders' equity per common share. For the year ended December 31, 2011, pro forma common shares outstanding include common shares issuable upon conversion of our outstanding Series B Preferred Stock, and excludes 3.9 million shares issued under a share lending agreement related to the Company's 6% Convertible Senior Subordinated Notes. The remaining 3.9 million shares were returned to the Company in October 2012, in connection with the maturity of the Company's 6% Convertible Senior Subordinated Notes. 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 and excluding shares previously outstanding under the share lending agreement.
December 31, December 31,
2012 2011
---- ----
Actual common shares
outstanding 213,245,488 198,563,273
Add: Conversion of
preferred shares to
common shares 147,812,786 147,812,786
Less: Common shares
outstanding under share
lending facility ? (3,919,904)
Pro forma common shares
outstanding 361,058,274 342,456,155
=========== ===========
Stockholders' equity
(Dollars in thousands) $1,255,816 $623,754
Divided by pro forma
common shares
outstanding ÷ 361,058,274 ÷ 342,456,155
Pro forma stockholders'
equity per common share $3.48 $1.82
===== =====
The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing. Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP.
Three Months Ended Year Ended December 31,
------------------ -----------------------
December 31, December 31, September 30, 2012 2011
2012 2011 2012
---- ---- ----
(Dollars in thousands)
Net income (loss) $486,925 $15,333 $21,710 $531,421 $(16,417)
Provision
(benefit) for
income taxes (453,804) (481) 194 (453,234) (56)
Homebuilding
interest
amortized to
cost of sales
and interest
expense 34,364 26,616 28,747 110,298 94,804
Homebuilding
depreciation
and
amortization 617 631 590 2,372 2,644
Amortization
of stock-
based
compensation 2,633 3,145 1,559 7,151 11,239
EBITDA 70,735 45,244 52,800 198,008 92,214
Add:
Cash
distributions
of income
from
unconsolidated
joint
ventures 2,625 ? 1,125 3,910 20
Impairment
charges and
deposit
write-offs ? 416 ? 133 15,334
Less:
Income (loss)
from
unconsolidated
joint
ventures 617 1,298 (39) (2,090) 207
Income (loss)
from
financial
services
subsidiary 3,941 1,553 2,441 10,238 1,506
Adjusted Homebuilding EBITDA $68,802 $42,809 $51,523 $193,903 $105,855
======= ======= ======= ======== ========
Homebuilding revenues $419,843 $293,156 $318,541 $1,236,958 $882,993
======== ======== ======== ========== ========
Adjusted Homebuilding EBITDA Margin % 16.4% 14.6% 16.2% 15.7% 12.0%
==== ==== ==== ==== ====
The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
Three Months Ended Year Ended December 31,
------------------ -----------------------
December 31, December 31, September 30, 2012 2011
2012 2011 2012
---- ---- ----
(Dollars in thousands)
Net cash provided by (used in) operating
activities $(111,980) $(12,036) $(72,418) $(283,116) $(322,613)
Add:
Provision
(benefit) for
income taxes (453,804) (481) 194 (453,234) (56)
Deferred income
tax benefit 454,000 ? ? 454,000 ?
Homebuilding
interest
amortized to
cost of sales
and interest
expense 34,364 26,616 28,747 110,298 94,804
Less:
Income (loss)
from financial
services
subsidiary 3,941 1,553 2,441 10,238 1,506
Depreciation and
amortization
from financial
services
subsidiary 32 18 32 108 611
(Gain) loss on
disposal of
property and
equipment 22 (5) 12 37 179
Net changes in operating assets and liabilities:
Trade and other receivables (12,944) (6,951) 4,681 (801) 5,358
Mortgage loans held for sale 32,323 23,924 18,119 46,339 43,661
Inventories-owned 129,807 20,670 70,645 315,639 282,447
Inventories-not owned 20,861 2,068 7,191 31,551 19,727
Other assets (1,696) (6,525) (999) (2,618) (6,212)
Accounts payable and accrued
liabilities (18,134) (2,910) (2,152) (13,772) (8,965)
Adjusted Homebuilding EBITDA $68,802 $42,809 $51,523 $193,903 $105,855
======= ======= ======= ======== ========
SOURCE Standard Pacific
