Delaware
|
33-0475989
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
15360 Barranca Parkway, Irvine, CA
(Address of principal executive offices)
|
92618-2215
(Zip Code)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Page No.
|
|||||
|
|||||
PART 1. | Financial Information | ||||
Item 1.
|
|
||||
2 | |||||
3
|
|||||
4
|
|||||
5
|
|||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 | |||
Item 3. |
42
|
||||
Item 4. |
43
|
||||
PART 2. | Other Information |
|
|||
Item 1. |
45
|
||||
Item 1A.
|
45
|
||||
Item 2. |
45
|
||||
Item 3. |
45
|
||||
Item 4. |
45
|
||||
Item 5. | Other Information | 45 | |||
Item 6. | Exhibits | 45 | |||
SIGNATURES |
46
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||||||||
(Unaudited)
|
|||||||||||||||
Homebuilding:
|
|
||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
$
|
589,369
|
$
|
698,138
|
||||||
Land sale revenues
|
|
359
|
950
|
468
|
1,856
|
||||||||||
Total revenues
|
|
241,793
|
207,466
|
589,837
|
699,994
|
||||||||||
Cost of home sales
|
|
(203,188)
|
(157,677)
|
(486,933)
|
(543,400)
|
||||||||||
Cost of land sales
|
|
(359)
|
(954)
|
(473)
|
(1,628)
|
||||||||||
Total cost of sales
|
|
(203,547)
|
(158,631)
|
(487,406)
|
(545,028)
|
||||||||||
Gross margin
|
|
38,246
|
48,835
|
102,431
|
154,966
|
||||||||||
Selling, general and administrative expenses
|
(39,124)
|
(36,339)
|
(109,828)
|
(112,504)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
(455)
|
1,801
|
(1,091)
|
1,141
|
|||||||||||
Interest expense
|
(4,250)
|
(10,257)
|
(22,209)
|
(32,721)
|
|||||||||||
Loss on early extinguishment of debt
|
―
|
(999)
|
―
|
(6,189)
|
|||||||||||
Other income (expense)
|
(1,948)
|
1,035
|
(679)
|
4,277
|
|||||||||||
Homebuilding pretax income (loss)
|
(7,531)
|
4,076
|
(31,376)
|
8,970
|
|||||||||||
Financial Services:
|
|||||||||||||||
Revenues
|
3,529
|
3,430
|
7,124
|
9,711
|
|||||||||||
Expenses
|
(2,324)
|
(2,721)
|
(7,171)
|
(8,026)
|
|||||||||||
Other income
|
42
|
30
|
98
|
111
|
|||||||||||
Financial services pretax income
|
1,247
|
739
|
51
|
1,796
|
|||||||||||
Income (loss) before income taxes
|
(6,284)
|
4,815
|
(31,325)
|
10,766
|
|||||||||||
Provision for income taxes
|
(150)
|
(272)
|
(425)
|
(633)
|
|||||||||||
Net income (loss)
|
(6,434)
|
4,543
|
(31,750)
|
10,133
|
|||||||||||
Less: Net (income) loss allocated to preferred shareholder
|
2,780
|
(2,676)
|
13,743
|
(5,982)
|
|||||||||||
Net income (loss) available to common stockholders
|
$
|
(3,654)
|
$
|
1,867
|
$
|
(18,007)
|
$
|
4,151
|
|||||||
Income (Loss) Per Common Share:
|
|||||||||||||||
Basic
|
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Weighted Average Common Shares Outstanding:
|
|||||||||||||||
Basic
|
|
194,311,129
|
103,100,974
|
193,686,614
|
102,582,491
|
||||||||||
Diluted
|
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||
|
|||||||||||||||
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
|
September 30,
2011
|
December 31,
2010
|
|||||||||
(Dollars in thousands)
|
||||||||||
(Unaudited)
|
||||||||||
ASSETS
|
||||||||||
Homebuilding:
|
||||||||||
Cash and equivalents
|
|
$
|
420,010
|
$
|
720,516
|
|||||
Restricted cash
|
|
31,182
|
28,238
|
|||||||
Trade and other receivables
|
|
18,476
|
6,167
|
|||||||
Inventories:
|
|
|||||||||
Owned
|
|
1,450,827
|
1,181,697
|
|||||||
Not owned
|
|
61,603
|
18,999
|
|||||||
Investments in unconsolidated joint ventures
|
|
76,058
|
73,861
|
|||||||
Deferred income taxes, net of valuation allowance of $520,285 and $516,366 at
|
||||||||||
September 30, 2011 and December 31, 2010, respectively
|
|
6,320
|
9,269
|
|||||||
Other assets
|
|
38,650
|
38,175
|
|||||||
Total Homebuilding Assets
|
|
2,103,126
|
2,076,922
|
|||||||
Financial Services:
|
|
|||||||||
Cash and equivalents
|
|
11,339
|
10,855
|
|||||||
Restricted cash
|
|
1,745
|
2,870
|
|||||||
Mortgage loans held for sale, net
|
|
50,049
|
30,279
|
|||||||
Mortgage loans held for investment, net
|
|
10,329
|
9,904
|
|||||||
Other assets
|
|
5,210
|
2,293
|
|||||||
Total Financial Services Assets
|
|
78,672
|
56,201
|
|||||||
Total Assets
|
|
$
|
2,181,798
|
$
|
2,133,123
|
|||||
|
||||||||||
LIABILITIES AND EQUITY
|
|
|||||||||
Homebuilding:
|
|
|||||||||
Accounts payable
|
|
$
|
22,605
|
$
|
16,716
|
|||||
Accrued liabilities
|
|
176,698
|
143,127
|
|||||||
Secured project debt and other notes payable
|
|
3,899
|
4,738
|
|||||||
Senior notes payable
|
|
1,274,532
|
1,272,977
|
|||||||
Senior subordinated notes payable
|
|
45,293
|
42,539
|
|||||||
Total Homebuilding Liabilities
|
|
1,523,027
|
1,480,097
|
|||||||
Financial Services:
|
|
|||||||||
Accounts payable and other liabilities
|
|
1,312
|
820
|
|||||||
Mortgage credit facilities
|
|
52,528
|
30,344
|
|||||||
Total Financial Services Liabilities
|
|
53,840
|
31,164
|
|||||||
Total Liabilities
|
|
1,576,867
|
1,511,261
|
|||||||
|
||||||||||
Equity:
|
|
|||||||||
Stockholders' Equity:
|
||||||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares
|
|
|||||||||
issued and outstanding at September 30, 2011 and December 31, 2010
|
|
5
|
5
|
|||||||
Common stock, $0.01 par value; 600,000,000 shares authorized; 198,456,463
|
|
|||||||||
and 196,641,551 shares issued and outstanding at September 30, 2011 and
|
|
|||||||||
December 31, 2010, respectively
|
|
1,984
|
1,966
|
|||||||
Additional paid-in capital
|
|
1,237,304
|
1,227,292
|
|||||||
Accumulated deficit
|
|
(624,102)
|
(592,352)
|
|||||||
Accumulated other comprehensive loss, net of tax
|
|
(10,260)
|
(15,049)
|
|||||||
Total Equity
|
|
604,931
|
621,862
|
|||||||
Total Liabilities and Equity
|
|
$
|
2,181,798
|
$
|
2,133,123
|
Nine Months Ended
September 30,
|
||||||||||
2011
|
2010
|
|||||||||
(Dollars in thousands)
|
||||||||||
(Unaudited)
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||
Net income (loss)
|
$
|
(31,750)
|
$
|
10,133
|
||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|||||||||
Loss (income) from unconsolidated joint ventures
|
|
1,091
|
(1,141)
|
|||||||
Cash distributions of income from unconsolidated joint ventures
|
20
|
―
|
||||||||
Depreciation and amortization
|
2,606
|
2,159
|
||||||||
(Gain) loss on disposal of property and equipment
|
|
184
|
(35)
|
|||||||
Loss on early extinguishment of debt
|
|
―
|
6,189
|
|||||||
Amortization of stock-based compensation
|
|
8,094
|
8,598
|
|||||||
Excess tax benefits from share-based payment arrangements
|
―
|
(27)
|
||||||||
Inventory impairment charges and deposit write-offs
|
14,918
|
―
|
||||||||
Changes in cash and equivalents due to:
|
||||||||||
Trade and other receivables
|
(12,309)
|
(983)
|
||||||||
Mortgage loans held for sale
|
|
(19,737)
|
5,846
|
|||||||
Inventories - owned
|
|
(261,777)
|
(120,420)
|
|||||||
Inventories - not owned
|
|
(17,659)
|
(24,070)
|
|||||||
Other assets
|
|
(313)
|
108,846
|
|||||||
Accounts payable
|
5,889
|
(6,576)
|
||||||||
Accrued liabilities
|
166
|
(17,014)
|
||||||||
Net cash provided by (used in) operating activities
|
|
(310,577)
|
(28,495)
|
|||||||
|
||||||||||
Cash Flows From Investing Activities:
|
|
|||||||||
Investments in unconsolidated homebuilding joint ventures
|
|
(11,304)
|
(37,434)
|
|||||||
Distributions from unconsolidated homebuilding joint ventures
|
|
7,786
|
113
|
|||||||
Other investing activities
|
|
(1,752)
|
(1,133)
|
|||||||
Net cash provided by (used in) investing activities
|
|
(5,270)
|
(38,454)
|
|||||||
Cash Flows From Financing Activities:
|
|
|||||||||
Change in restricted cash
|
|
(1,819)
|
(1,588)
|
|||||||
Net proceeds from (principal payments on) secured project debt and other notes payable
|
|
(839)
|
(83,407)
|
|||||||
Principal payments on senior notes payable
|
|
―
|
(195,869)
|
|||||||
Proceeds from the issuance of senior notes payable
|
|
―
|
300,000
|
|||||||
Payment of debt issuance costs
|
|
(4,575)
|
(5,506)
|
|||||||
Net proceeds from (payments on) mortgage credit facilities
|
|
22,184
|
(5,393)
|
|||||||
Excess tax benefits from share-based payment arrangements
|
|
―
|
27
|
|||||||
Payment of common stock issuance costs
|
|
(324)
|
―
|
|||||||
Proceeds from the exercise of stock options
|
|
1,198
|
2,454
|
|||||||
Net cash provided by (used in) financing activities
|
|
15,825
|
10,718
|
|||||||
Net increase (decrease) in cash and equivalents
|
|
(300,022)
|
(56,231)
|
|||||||
Cash and equivalents at beginning of period
|
|
731,371
|
595,559
|
|||||||
Cash and equivalents at end of period
|
|
$
|
431,349
|
$
|
539,328
|
|||||
Cash and equivalents at end of period
|
|
$
|
431,349
|
$
|
539,328
|
|||||
Homebuilding restricted cash at end of period
|
|
31,182
|
16,983
|
|||||||
Financial services restricted cash at end of period
|
|
1,745
|
2,870
|
|||||||
Cash and equivalents and restricted cash at end of period
|
|
$
|
464,276
|
$
|
559,181
|
2.
|
Recent Accounting Pronouncements
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
Homebuilding revenues:
|
|
||||||||||||
California
|
|
$
|
146,441
|
$
|
118,989
|
$
|
339,088
|
$
|
414,613
|
||||
Southwest
|
|
47,342
|
47,956
|
130,274
|
147,491
|
||||||||
Southeast
|
|
48,010
|
40,521
|
120,475
|
137,890
|
||||||||
Total homebuilding revenues
|
|
$
|
241,793
|
$
|
207,466
|
$
|
589,837
|
$
|
699,994
|
||||
Homebuilding pretax income (loss):
|
|
||||||||||||
California
|
|
$
|
(364)
|
$
|
11,874
|
$
|
(2,898)
|
$
|
27,841
|
||||
Southwest
|
|
(2,592)
|
(1,484)
|
(10,126)
|
(2,153)
|
||||||||
Southeast
|
|
(3,396)
|
(2,214)
|
(9,500)
|
(5,042)
|
||||||||
Corporate
|
|
(1,179)
|
(4,100)
|
(8,852)
|
(11,676)
|
||||||||
Total homebuilding pretax income (loss)
|
|
$
|
(7,531)
|
$
|
4,076
|
$
|
(31,376)
|
$
|
8,970
|
||||
Homebuilding income (loss) from unconsolidated joint ventures:
|
|
||||||||||||
California
|
|
$
|
(389)
|
$
|
1,826
|
$
|
(994)
|
$
|
1,202
|
||||
Southwest
|
|
(7)
|
(15)
|
(23)
|
(38)
|
||||||||
Southeast
|
|
(59)
|
(10)
|
(74)
|
(23)
|
||||||||
Total homebuilding income (loss) from unconsolidated joint ventures
|
|
$
|
(455)
|
$
|
1,801
|
$
|
(1,091)
|
$
|
1,141
|
||||
Restructuring charges:
|
|
||||||||||||
California
|
|
$
|
174
|
$
|
―
|
$
|
598
|
$
|
―
|
||||
Southwest
|
|
118
|
―
|
165
|
―
|
||||||||
Southeast
|
|
279
|
―
|
279
|
―
|
||||||||
Corporate
|
|
60
|
―
|
150
|
―
|
||||||||
Total restructuring charges
|
|
$
|
631
|
$
|
―
|
$
|
1,192
|
$
|
―
|
Three Months Ended September 30, 2011
|
||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Deposit write-offs
|
|
$
|
876
|
$
|
495
|
$
|
358
|
$
|
1,729
|
|||
Inventory impairments
|
|
5,653
|
756
|
821
|
7,230
|
|||||||
Total impairments and deposit write-offs
|
|
$
|
6,529
|
$
|
1,251
|
$
|
1,179
|
$
|
8,959
|
|||
|
||||||||||||
|
Nine Months Ended September 30, 2011
|
|||||||||||
|
California
|
Southwest
|
Southeast
|
Total
|
||||||||
|
(Dollars in thousands)
|
|||||||||||
|
||||||||||||
Deposit write-offs
|
|
$
|
876
|
$
|
495
|
$
|
358
|
$
|
1,729
|
|||
Inventory impairments
|
|
9,490
|
2,878
|
821
|
13,189
|
|||||||
Total impairments and deposit write-offs
|
|
$
|
10,366
|
$
|
3,373
|
$
|
1,179
|
$
|
14,918
|
|
September 30,
|
December 31,
|
|||||
|
2011
|
2010
|
|||||
|
(Dollars in thousands)
|
||||||
Homebuilding assets:
|
|
||||||
California
|
|
$
|
988,054
|
$
|
819,376
|
||
Southwest
|
|
334,310
|
233,120
|
||||
Southeast
|
|
291,210
|
237,635
|
||||
Corporate
|
|
489,552
|
786,791
|
||||
Total homebuilding assets
|
|
$
|
2,103,126
|
$
|
2,076,922
|
||
|
|||||||
Homebuilding investments in unconsolidated joint ventures:
|
|
||||||
California
|
|
$
|
71,268
|
$
|
69,968
|
||
Southwest
|
|
2,755
|
2,743
|
||||
Southeast
|
|
2,035
|
1,150
|
||||
Total homebuilding investments in unconsolidated joint ventures
|
|
$
|
76,058
|
$
|
73,861
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||
2011
|
|
2010
|
2011
|
|
2010
|
|||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||
|
||||||||||||||
Numerator:
|
||||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
4,543
|
$
|
(31,750)
|
$
|
10,133
|
|||||
Less: Net (income) loss allocated to preferred shareholder
|
|
2,780
|
(2,676)
|
13,743
|
(5,982)
|
|||||||||
Net income (loss) available to common shareholders
|
|
$
|
(3,654)
|
$
|
1,867
|
$
|
(18,007)
|
$
|
4,151
|
|||||
Denominator:
|
||||||||||||||
Weighted average basic common shares outstanding
|
194,311,129
|
103,100,974
|
193,686,614
|
102,582,491
|
||||||||||
Effect of dilutive securities:
|
||||||||||||||
Warrant
|
―
|
―
|
―
|
4,587,239
|
||||||||||
Stock options
|
―
|
3,036,397
|
―
|
3,835,867
|
||||||||||
Weighted average diluted common shares outstanding
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||
Income (loss) per common share:
|
||||||||||||||
Basic
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
||||||||||||||||
Weighted average diluted common shares outstanding
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||||
Additional weighted average common shares outstanding if the Series B
|
||||||||||||||||
Preferred Stock converted to common shares
|
147,812,786
|
147,812,786
|
147,812,786
|
147,812,786
|
||||||||||||
Total potential weighted average diluted common shares outstanding
|
||||||||||||||||
if the Series B Preferred Stock converted to common shares
|
342,123,915
|
253,950,157
|
341,499,400
|
258,818,383
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|
||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
4,543
|
|
$
|
(31,750)
|
$
|
10,133
|
|||
Unrealized gain (loss) on interest rate swaps,
|
|
||||||||||||
net of related income tax effects
|
|
1,614
|
(558)
|
4,789
|
(2,080)
|
||||||||
Comprehensive income (loss)
|
|
$
|
(4,820)
|
$
|
3,985
|
|
$
|
(26,961)
|
$
|
8,053
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Stock options
|
|
$
|
1,570
|
$
|
1,819
|
$
|
5,588
|
$
|
4,602
|
||||
Common stock grants
|
|
1,065
|
1,296
|
2,506
|
3,996
|
||||||||
Total
|
|
$
|
2,635
|
$
|
3,115
|
$
|
8,094
|
$
|
8,598
|
a.
|
Inventories Owned
|
September 30, 2011
|
|||||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Land and land under development
|
$ | 585,886 | $ | 195,978 | $ | 189,798 | $ | 971,662 | |||||||
Homes completed and under construction
|
224,715 | 72,632 | 73,169 | 370,516 | |||||||||||
Model homes
|
78,761 | 12,991 | 16,897 | 108,649 | |||||||||||
Total inventories owned
|
$ | 889,362 | $ | 281,601 | $ | 279,864 | $ | 1,450,827 | |||||||
December 31, 2010
|
|||||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Land and land under development
|
$ | 492,501 | $ | 158,324 | $ | 150,856 | $ | 801,681 | |||||||
Homes completed and under construction
|
164,237 | 51,382 | 66,161 | 281,780 | |||||||||||
Model homes
|
70,579 | 13,085 | 14,572 | 98,236 | |||||||||||
Total inventories owned
|
$ | 727,317 | $ | 222,791 | $ | 231,589 | $ | 1,181,697 |
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
Land purchase and lot option deposits
|
$ | 26,142 | $ | 18,499 | |||
Other lot option contracts, net of deposits
|
35,461 | 500 | |||||
Total inventories not owned
|
$ | 61,603 | $ | 18,999 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in thousands)
|
||||||||||||
|
||||||||||||
Total interest incurred (1)
|
$
|
35,273
|
$
|
28,070
|
$
|
105,480
|
$
|
82,030
|
||||
Less: Interest capitalized to inventories owned
|
|
(29,329)
|
(17,126)
|
(78,225)
|
(47,240)
|
|||||||
Less: Interest capitalized to investments in unconsolidated joint ventures
|
|
(1,694)
|
(687)
|
(5,046)
|
(2,069)
|
|||||||
Interest expense
|
$
|
4,250
|
$
|
10,257
|
$
|
22,209
|
$
|
32,721
|
||||
|
||||||||||||
Interest previously capitalized to inventories owned, included in cost of home sales
|
$
|
18,776
|
$
|
12,546
|
$
|
45,864
|
$
|
44,852
|
||||
Interest previously capitalized to inventories owned, included in cost of land sales
|
$
|
77
|
$
|
―
|
$
|
115
|
$
|
815
|
||||
Interest previously capitalized to investments in unconsolidated joint ventures,
|
|
|||||||||||
included in income (loss) from unconsolidated joint ventures
|
$
|
300
|
$
|
342
|
$
|
558
|
$
|
441
|
||||
Interest capitalized in ending inventories owned (2)
|
$
|
181,310
|
$
|
143,111
|
$
|
181,310
|
$
|
143,111
|
||||
Interest capitalized as a percentage of inventories owned
|
|
12.5%
|
12.4%
|
12.5%
|
12.4%
|
|||||||
Interest capitalized in ending investments in unconsolidated joint ventures (2)
|
$
|
7,836
|
$
|
3,492
|
$
|
7,836
|
$
|
3,492
|
||||
Interest capitalized as a percentage of investments in unconsolidated joint ventures
|
|
10.3%
|
4.4%
|
10.3%
|
4.4%
|
(1)
|
For the three and nine months ended September 30, 2011, interest incurred included the noncash amortization of $2.6 million and $7.7 million, respectively, of interest related to the Term Loan B swap that was unwound in the 2010 fourth quarter (please see Note 16 “Derivative Instruments and Hedging Activities”).
|
(2)
|
During the three and nine months ended September 30, 2011, in connection with lot purchases from our unconsolidated joint ventures, $1.1 million of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned. During the three and nine months ended September 30, 2010, $10 thousand and $75 thousand, respectively, of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
|
||||||||||||
Revenues
|
|
$
|
26,709
|
$
|
33,043
|
$
|
45,082
|
$
|
52,379
|
|||
Cost of sales and expenses
|
|
(23,944)
|
(23,505)
|
(39,710)
|
(43,787)
|
|||||||
Income of unconsolidated joint ventures
|
|
$
|
2,765
|
$
|
9,538
|
$
|
5,372
|
$
|
8,592
|
|||
Income (loss) from unconsolidated joint ventures reflected in the
|
|
|||||||||||
accompanying condensed consolidated statements of operations
|
|
$
|
(455)
|
$
|
1,801
|
$
|
(1,091)
|
$
|
1,141
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
Assets:
|
|
||||||
Cash
|
|
$
|
14,722
|
$
|
19,202
|
||
Inventories
|
|
236,279
|
240,492
|
||||
Other assets
|
|
12,136
|
7,964
|
||||
Total assets
|
|
$
|
263,137
|
$
|
267,658
|
||
|
|||||||
Liabilities and Equity:
|
|
||||||
Accounts payable and accrued liabilities
|
|
$
|
31,454
|
$
|
37,124
|
||
Recourse debt
|
|
―
|
3,865
|
||||
Standard Pacific equity
|
|
72,737
|
74,793
|
||||
Other members' equity
|
|
158,946
|
151,876
|
||||
Total liabilities and equity
|
|
$
|
263,137
|
$
|
267,658
|
||
|
|||||||
Investments in unconsolidated joint ventures reflected in
|
|
||||||
the accompanying condensed consolidated balance sheets
|
|
$
|
76,058
|
$
|
73,861
|
Nine Months Ended
September 30,
|
|||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
|
|||||||
Warranty accrual, beginning of the period
|
|
$
|
20,866
|
$
|
22,606
|
||
Warranty costs accrued during the period
|
|
2,327
|
3,263
|
||||
Warranty costs paid during the period
|
|
(2,505)
|
(3,112)
|
||||
Warranty accrual, end of the period
|
|
$
|
20,688
|
$
|
22,757
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
|
|||||||
6¼% Senior Notes due April 2014
|
|
$
|
4,971
|
$
|
4,971
|
||
7% Senior Notes due August 2015
|
|
29,789
|
29,789
|
||||
10¾% Senior Notes due September 2016, net of discount
|
|
262,301
|
260,439
|
||||
8⅜% Senior Notes due May 2018, net of premium
|
|
580,687
|
581,162
|
||||
8⅜% Senior Notes due January 2021, net of discount
|
|
396,784
|
396,616
|
||||
|
$
|
1,274,532
|
$
|
1,272,977
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
|
|||||||
6% Convertible Senior Subordinated Notes due October 2012, net of discount
|
|
$
|
35,311
|
$
|
32,564
|
||
9¼% Senior Subordinated Notes due April 2012, net of discount
|
|
9,982
|
9,975
|
||||
|
$
|
45,293
|
$
|
42,539
|
September 30, 2011
|
December 31, 2010
|
|||||||||||||
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
|||||||||||
(Dollars in thousands)
|
||||||||||||||
Financial assets:
|
|
|
||||||||||||
Homebuilding:
|
|
|
||||||||||||
Cash and equivalents
|
|
$
|
451,192
|
$
|
451,192
|
$
|
748,754
|
$
|
748,754
|
|||||
Financial services:
|
|
|
|
|
|
|||||||||
Cash and equivalents
|
|
$
|
13,084
|
$
|
13,084
|
$
|
13,725
|
$
|
13,725
|
|||||
Mortgage loans held for investment, net
|
|
$
|
10,329
|
$
|
10,329
|
$
|
9,904
|
$
|
9,904
|
|||||
Financial liabilities:
|
|
|
|
|
|
|||||||||
Homebuilding:
|
|
|
|
|
|
|||||||||
Secured project debt and other notes payable
|
|
$
|
3,899
|
$
|
3,899
|
$
|
4,738
|
$
|
4,738
|
|||||
Senior notes payable, net
|
|
$
|
1,274,532
|
$
|
1,137,334
|
$
|
1,272,977
|
$
|
1,283,611
|
|||||
Senior subordinated notes payable, net
|
|
$
|
45,293
|
$
|
50,334
|
$
|
42,539
|
$
|
51,369
|
|||||
Financial services:
|
|
|
|
|
|
|||||||||
Mortgage credit facilities
|
|
$
|
52,528
|
$
|
52,528
|
$
|
30,344
|
$
|
30,344
|
|||||
Off-balance sheet financial instruments:
|
|
|
|
|
|
|||||||||
Mortgage loan commitments
|
|
$
|
49,405
|
$
|
50,667
|
$
|
25,126
|
$
|
25,543
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Quoted Prices in
|
Significant Other
|
Significant
|
||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||
As of
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||
Description
|
September 30, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||
(Dollars in thousands)
|
||||||||||||
Assets:
|
||||||||||||
Inventories owned
|
|
$
|
17,226
|
$
|
―
|
$
|
―
|
$
|
17,226
|
|||
Mortgage loans held for sale
|
|
$
|
53,007
|
$
|
―
|
$
|
53,007
|
$
|
―
|
a.
|
Land Purchase and Option Agreements
|
b.
|
Land Development and Homebuilding Joint Ventures
|
|
c.
|
Surety Bonds
|
|
d.
|
Mortgage Loans and Commitments
|
|
e.
|
Insurance and Litigation Accruals
|
|
f.
|
Restructuring Costs
|
Three Months Ended
|
Nine Months Ended
|
Incurred
|
|||||||||
September 30, 2011
|
September 30, 2011
|
to Date
|
|||||||||
(Dollars in thousands)
|
|||||||||||
Employee severance costs
|
$ | 400 | $ | 961 | $ | 29,871 | |||||
Lease termination and other exit costs
|
231 | 231 | 13,648 | ||||||||
Property and equipment disposals
|
― | ― | 4,338 | ||||||||
$ | 631 | $ | 1,192 | $ | 47,857 |
Nine Months Ended September 30, 2011
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination and
Other Costs
|
Property and
Equipment
Disposals
|
Total | ||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Restructuring accrual, beginning of the period
|
|
$
|
22
|
$
|
2,251
|
$
|
―
|
$
|
2,273
|
||||
Restructuring costs accrued and other adjustments during the period
|
|
961
|
231
|
―
|
1,192
|
||||||||
Restructuring costs paid during the period
|
|
(635)
|
(982)
|
―
|
(1,617)
|
||||||||
Non-cash settlements
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring accrual, end of the period
|
|
$
|
348
|
$
|
1,500
|
$
|
―
|
$
|
1,848
|
||||
Nine Months Ended September 30, 2010
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination and
Other Costs
|
Property and
Equipment
Disposals
|
Total
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Restructuring accrual, beginning of the period
|
|
$
|
1,417
|
$
|
5,810
|
$
|
―
|
$
|
7,227
|
||||
Restructuring costs accrued and other adjustments during the period
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring costs paid during the period
|
|
(1,331)
|
(2,561)
|
―
|
(3,892)
|
||||||||
Non-cash settlements
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring accrual, end of the period
|
|
$
|
86
|
$
|
3,249
|
$
|
―
|
$
|
3,335
|
September 30,
|
December 31,
|
||||||
2011
|
2010
|
||||||
(Dollars in thousands)
|
|||||||
Inventory
|
$ | 189,562 | $ | 216,028 | |||
Financial accruals
|
50,726 | 49,605 | |||||
Net operating loss carryforwards
|
263,670 | 237,496 | |||||
Goodwill impairment charges
|
22,327 | 22,327 | |||||
Other, net
|
320 | 179 | |||||
Subtotal
|
526,605 | 525,635 | |||||
Less: Valuation allowance
|
(520,285 | ) | (516,366) | ||||
Deferred income taxes
|
$ | 6,320 | $ | 9,269 |
Nine Months Ended September 30,
|
||||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
Supplemental Disclosures of Cash Flow Information:
|
|
|||||||
Cash paid during the period for:
|
|
|||||||
Interest
|
$
|
77,772
|
$
|
73,968
|
||||
Income taxes
|
$
|
39
|
$
|
70
|
Three Months Ended September 30, 2011
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
97,409
|
$
|
128,523
|
$
|
15,861
|
$
|
―
|
$
|
241,793
|
|||||||
Cost of sales
|
|
(82,666)
|
(107,523)
|
(13,358)
|
―
|
(203,547)
|
||||||||||||
Gross margin
|
|
14,743
|
21,000
|
2,503
|
―
|
38,246
|
||||||||||||
Selling, general and administrative expenses
|
|
(19,708)
|
(17,760)
|
(1,656)
|
―
|
(39,124)
|
||||||||||||
Loss from unconsolidated joint ventures
|
|
(94)
|
(106)
|
(255)
|
―
|
(455)
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
217
|
―
|
―
|
(217)
|
―
|
||||||||||||
Interest expense
|
|
1,203
|
(4,946)
|
(507)
|
―
|
(4,250)
|
||||||||||||
Other income (expense)
|
|
(1,184)
|
(949)
|
185
|
―
|
(1,948)
|
||||||||||||
Homebuilding pretax income (loss)
|
|
(4,823)
|
(2,761)
|
270
|
(217)
|
(7,531)
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(42)
|
42
|
1,247
|
―
|
1,247
|
||||||||||||
Income (loss) before income taxes
|
|
(4,865)
|
(2,719)
|
1,517
|
(217)
|
(6,284)
|
||||||||||||
(Provision) benefit for income taxes
|
|
(1,569)
|
2,041
|
(622)
|
―
|
(150)
|
||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
(678)
|
$
|
895
|
$
|
(217)
|
$
|
(6,434)
|
Three Months Ended September 30, 2010
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
84,506
|
$
|
110,176
|
$
|
12,784
|
$
|
―
|
$
|
207,466
|
|||||||
Cost of sales
|
|
(59,782)
|
(89,785)
|
(9,064)
|
―
|
(158,631)
|
||||||||||||
Gross margin
|
|
24,724
|
20,391
|
3,720
|
―
|
48,835
|
||||||||||||
Selling, general and administrative expenses
|
|
(19,847)
|
(15,452)
|
(1,040)
|
―
|
(36,339)
|
||||||||||||
Income (loss) from unconsolidated joint ventures
|
|
1,078
|
(27)
|
750
|
―
|
1,801
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
2,681
|
―
|
―
|
(2,681)
|
―
|
||||||||||||
Interest expense
|
|
(4,619)
|
(5,225)
|
(413)
|
―
|
(10,257)
|
||||||||||||
Loss on early extinguishment of debt
|
|
(999)
|
―
|
―
|
―
|
(999)
|
||||||||||||
Other income (expense)
|
|
(311)
|
360
|
986
|
―
|
1,035
|
||||||||||||
Homebuilding pretax income (loss)
|
|
2,707
|
47
|
4,003
|
(2,681)
|
4,076
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(30)
|
30
|
739
|
―
|
739
|
||||||||||||
Income (loss) before income taxes
|
|
2,677
|
77
|
4,742
|
(2,681)
|
4,815
|
||||||||||||
(Provision) benefit for income taxes
|
|
1,866
|
(1,053)
|
(1,085)
|
―
|
(272)
|
||||||||||||
Net income (loss)
|
|
$
|
4,543
|
$
|
(976)
|
$
|
3,657
|
$
|
(2,681)
|
$
|
4,543
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
242,109
|
$
|
314,418
|
$
|
33,310
|
$
|
―
|
$
|
589,837
|
|||||||
Cost of sales
|
|
(196,074)
|
(264,303)
|
(27,029)
|
―
|
(487,406)
|
||||||||||||
Gross margin
|
|
46,035
|
50,115
|
6,281
|
―
|
102,431
|
||||||||||||
Selling, general and administrative expenses
|
|
(57,463)
|
(49,099)
|
(3,266)
|
―
|
(109,828)
|
||||||||||||
Loss from unconsolidated joint ventures
|
|
(24)
|
(142)
|
(925)
|
―
|
(1,091)
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
(8,065)
|
―
|
―
|
8,065
|
―
|
||||||||||||
Interest expense
|
|
(5,704)
|
(14,978)
|
(1,527)
|
―
|
(22,209)
|
||||||||||||
Other income (expense)
|
|
(790)
|
(927)
|
1,038
|
―
|
(679)
|
||||||||||||
Homebuilding pretax income (loss)
|
|
(26,011)
|
(15,031)
|
1,601
|
8,065
|
(31,376)
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(98)
|
98
|
51
|
―
|
51
|
||||||||||||
Income (loss) before income taxes
|
|
(26,109)
|
(14,933)
|
1,652
|
8,065
|
(31,325)
|
||||||||||||
(Provision) benefit for income taxes
|
|
(5,641)
|
5,293
|
(77)
|
―
|
(425)
|
||||||||||||
Net income (loss)
|
|
$
|
(31,750)
|
$
|
(9,640)
|
$
|
1,575
|
$
|
8,065
|
$
|
(31,750)
|
Nine Months Ended September 30, 2010
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
307,651
|
$
|
337,276
|
$
|
55,067
|
$
|
―
|
$
|
699,994
|
|||||||
Cost of sales
|
|
(227,312)
|
(273,484)
|
(44,232)
|
―
|
(545,028)
|
||||||||||||
Gross margin
|
|
80,339
|
63,792
|
10,835
|
―
|
154,966
|
||||||||||||
Selling, general and administrative expenses
|
|
(59,373)
|
(49,469)
|
(3,662)
|
―
|
(112,504)
|
||||||||||||
Income (loss) from unconsolidated joint ventures
|
|
560
|
(63)
|
644
|
―
|
1,141
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
1,254
|
―
|
―
|
(1,254)
|
―
|
||||||||||||
Interest expense
|
|
(14,550)
|
(16,885)
|
(1,286)
|
―
|
(32,721)
|
||||||||||||
Loss on early extinguishment of debt
|
|
(6,189)
|
―
|
―
|
―
|
(6,189)
|
||||||||||||
Other income (expense)
|
|
(172)
|
392
|
4,057
|
―
|
4,277
|
||||||||||||
Homebuilding pretax income (loss)
|
|
1,869
|
(2,233)
|
10,588
|
(1,254)
|
8,970
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(111)
|
111
|
1,796
|
―
|
1,796
|
||||||||||||
Income (loss) before income taxes
|
|
1,758
|
(2,122)
|
12,384
|
(1,254)
|
10,766
|
||||||||||||
(Provision) benefit for income taxes
|
|
8,375
|
(1,924)
|
(7,084)
|
―
|
(633)
|
||||||||||||
Net income (loss)
|
|
$
|
10,133
|
$
|
(4,046)
|
$
|
5,300
|
$
|
(1,254)
|
$
|
10,133
|
September 30, 2011
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash and equivalents
|
$
|
51,240
|
$
|
210
|
$
|
368,560
|
$
|
―
|
$
|
420,010
|
||||||||
Restricted cash
|
―
|
―
|
31,182
|
―
|
31,182
|
|||||||||||||
Trade and other receivables
|
490,014
|
5,575
|
7,695
|
(484,808)
|
18,476
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
626,553
|
627,168
|
197,106
|
―
|
1,450,827
|
|||||||||||||
Not owned
|
8,100
|
51,485
|
2,018
|
―
|
61,603
|
|||||||||||||
Investments in unconsolidated joint ventures
|
21,708
|
2,335
|
52,015
|
―
|
76,058
|
|||||||||||||
Investments in subsidiaries
|
767,675
|
―
|
―
|
(767,675)
|
―
|
|||||||||||||
Deferred income taxes, net
|
6,172
|
―
|
―
|
148
|
6,320
|
|||||||||||||
Other assets
|
35,255
|
3,264
|
296
|
(165)
|
38,650
|
|||||||||||||
Total Homebuilding Assets
|
2,006,717
|
690,037
|
658,872
|
(1,252,500)
|
2,103,126
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Cash and equivalents
|
―
|
―
|
11,339
|
―
|
11,339
|
|||||||||||||
Restricted cash
|
―
|
―
|
1,745
|
―
|
1,745
|
|||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
50,049
|
―
|
50,049
|
|||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
10,329
|
―
|
10,329
|
|||||||||||||
Other assets
|
―
|
―
|
8,365
|
(3,155)
|
5,210
|
|||||||||||||
Total Financial Services Assets
|
―
|
―
|
|
81,827
|
|
(3,155)
|
|
78,672
|
||||||||||
Total Assets
|
$
|
2,006,717
|
$
|
690,037
|
$
|
740,699
|
$
|
(1,255,655)
|
$
|
2,181,798
|
||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts payable
|
$
|
10,299
|
$
|
10,575
|
$
|
1,731
|
$
|
―
|
$
|
22,605
|
||||||||
Accrued liabilities
|
71,662
|
416,405
|
170,756
|
(482,125)
|
176,698
|
|||||||||||||
Secured project debt and other notes payable
|
―
|
―
|
3,899
|
―
|
3,899
|
|||||||||||||
Senior notes payable
|
1,274,532
|
―
|
―
|
―
|
1,274,532
|
|||||||||||||
Senior subordinated notes payable
|
45,293
|
―
|
―
|
―
|
45,293
|
|||||||||||||
Total Homebuilding Liabilities
|
1,401,786
|
426,980
|
176,386
|
(482,125)
|
1,523,027
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
5,667
|
(4,355)
|
1,312
|
|||||||||||||
Mortgage credit facilities
|
―
|
―
|
54,028
|
(1,500)
|
52,528
|
|||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
59,695
|
(5,855)
|
53,840
|
|||||||||||||
Total Liabilities
|
1,401,786
|
426,980
|
236,081
|
(487,980)
|
1,576,867
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total Stockholders' Equity
|
604,931
|
263,057
|
504,618
|
(767,675)
|
604,931
|
|||||||||||||
Total Liabilities and Equity
|
$
|
2,006,717
|
$
|
690,037
|
$
|
740,699
|
$
|
(1,255,655)
|
$
|
2,181,798
|
December 31, 2010
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash and equivalents
|
$
|
260,869
|
$
|
217
|
$
|
459,430
|
$
|
―
|
$
|
720,516
|
||||||||
Restricted cash
|
―
|
―
|
28,238
|
―
|
28,238
|
|||||||||||||
Trade and other receivables
|
411,804
|
2,225
|
7,555
|
(415,417)
|
6,167
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
429,951
|
617,641
|
134,105
|
―
|
1,181,697
|
|||||||||||||
Not owned
|
10,405
|
5,239
|
3,355
|
―
|
18,999
|
|||||||||||||
Investments in unconsolidated joint ventures
|
17,203
|
2,316
|
54,342
|
―
|
73,861
|
|||||||||||||
Investments in subsidiaries
|
867,740
|
―
|
―
|
(867,740)
|
―
|
|||||||||||||
Deferred income taxes, net
|
9,121
|
―
|
―
|
148
|
9,269
|
|||||||||||||
Other assets
|
33,994
|
4,024
|
168
|
(11)
|
38,175
|
|||||||||||||
Total Homebuilding Assets
|
2,041,087
|
631,662
|
687,193
|
(1,283,020)
|
2,076,922
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Cash and equivalents
|
―
|
―
|
10,855
|
―
|
10,855
|
|||||||||||||
Restricted cash
|
―
|
―
|
2,870
|
―
|
2,870
|
|||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
30,279
|
―
|
30,279
|
|||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
9,904
|
―
|
9,904
|
|||||||||||||
Other assets
|
―
|
―
|
5,003
|
(2,710)
|
2,293
|
|||||||||||||
Total Financial Services Assets
|
―
|
―
|
|
58,911
|
|
(2,710)
|
|
56,201
|
||||||||||
Total Assets
|
$
|
2,041,087
|
$
|
631,662
|
$
|
746,104
|
$
|
(1,285,730)
|
$
|
2,133,123
|
||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts payable
|
$
|
5,971
|
$
|
8,371
|
$
|
2,594
|
$
|
(220)
|
$
|
16,716
|
||||||||
Accrued liabilities
|
97,738
|
350,321
|
107,347
|
(412,279)
|
143,127
|
|||||||||||||
Secured project debt and other notes payable
|
―
|
273
|
4,465
|
―
|
4,738
|
|||||||||||||
Senior notes payable
|
1,272,977
|
―
|
―
|
―
|
1,272,977
|
|||||||||||||
Senior subordinated notes payable
|
42,539
|
―
|
―
|
―
|
42,539
|
|||||||||||||
Total Homebuilding Liabilities
|
1,419,225
|
358,965
|
114,406
|
(412,499)
|
1,480,097
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
4,811
|
(3,991)
|
820
|
|||||||||||||
Mortgage credit facilities
|
―
|
―
|
31,844
|
(1,500)
|
30,344
|
|||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
36,655
|
(5,491)
|
31,164
|
|||||||||||||
Total Liabilities
|
1,419,225
|
358,965
|
151,061
|
(417,990)
|
1,511,261
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total Stockholders' Equity
|
621,862
|
272,697
|
595,043
|
(867,740)
|
621,862
|
|||||||||||||
Total Liabilities and Equity
|
$
|
2,041,087
|
$
|
631,662
|
$
|
746,104
|
$
|
(1,285,730)
|
$
|
2,133,123
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Cash Flows From Operating Activities:
|
|||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(293,052)
|
$
|
530
|
$
|
(18,055)
|
$
|
―
|
$
|
(310,577)
|
|||||||
Cash Flows From Investing Activities:
|
|||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(3,691)
|
(161)
|
(7,452)
|
―
|
(11,304)
|
||||||||||||
Distributions from unconsolidated homebuilding joint ventures
|
―
|
―
|
7,786
|
―
|
7,786
|
||||||||||||
Other investing activities
|
(1,185)
|
(103)
|
(464)
|
―
|
(1,752)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(4,876)
|
(264)
|
(130)
|
―
|
(5,270)
|
||||||||||||
Cash Flows From Financing Activities:
|
|||||||||||||||||
Change in restricted cash
|
―
|
―
|
(1,819)
|
―
|
(1,819)
|
||||||||||||
Net proceeds from (principal payments on) secured project debt
|
|||||||||||||||||
and other notes payable
|
―
|
(273)
|
(566)
|
―
|
(839)
|
||||||||||||
Payment of debt issuance costs
|
(4,575)
|
―
|
―
|
―
|
(4,575)
|
||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
22,184
|
―
|
22,184
|
||||||||||||
Distributions from (contributions to) Corporate and subsidiaries
|
92,000
|
(92,000)
|
―
|
―
|
|||||||||||||
Payment of issuance costs in connection with exercise
|
|||||||||||||||||
of Warrant for common stock
|
(324)
|
―
|
―
|
―
|
(324)
|
||||||||||||
Proceeds from the exercise of stock options
|
1,198
|
―
|
―
|
―
|
1,198
|
||||||||||||
Net cash provided by (used in) financing activities
|
88,299
|
(273)
|
(72,201)
|
―
|
15,825
|
||||||||||||
Net increase (decrease) in cash and equivalents
|
(209,629)
|
(7)
|
(90,386)
|
―
|
(300,022)
|
||||||||||||
Cash and equivalents at beginning of period
|
260,869
|
217
|
470,285
|
―
|
731,371
|
||||||||||||
Cash and equivalents at end of period
|
$
|
51,240
|
$
|
210
|
$
|
379,899
|
$
|
―
|
$
|
431,349
|
Nine Months Ended September 30, 2010
|
|||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Cash Flows From Operating Activities:
|
|||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(141,083)
|
$
|
18,056
|
$
|
94,532
|
$
|
―
|
$
|
(28,495)
|
|||||||
Cash Flows From Investing Activities:
|
|||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(1,853)
|
(91)
|
(35,490)
|
―
|
(37,434)
|
||||||||||||
Distributions from unconsolidated homebuilding joint ventures
|
3
|
―
|
110
|
―
|
113
|
||||||||||||
Other investing activities
|
(520)
|
(106)
|
(507)
|
―
|
(1,133)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(2,370)
|
(197)
|
(35,887)
|
―
|
(38,454)
|
||||||||||||
Cash Flows From Financing Activities:
|
|||||||||||||||||
Change in restricted cash
|
―
|
―
|
(1,588)
|
―
|
(1,588)
|
||||||||||||
Net proceeds from (principal payments on) secured project debt
|
|||||||||||||||||
and other notes payable
|
(62,467)
|
(17,969)
|
(2,971)
|
―
|
(83,407)
|
||||||||||||
Principal payments on senior notes payable
|
(195,869)
|
―
|
―
|
―
|
(195,869)
|
||||||||||||
Proceeds from the issuance of senior notes payable
|
300,000
|
―
|
―
|
―
|
300,000
|
||||||||||||
Payment of debt issuance costs
|
(5,506)
|
―
|
―
|
―
|
(5,506)
|
||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
|
|
(5,393)
|
―
|
(5,393)
|
||||||||||
Proceeds from the exercise of stock options
|
2,454
|
―
|
|
|
―
|
―
|
2,454
|
||||||||||
Excess tax benefits from share-based payment arrangements
|
27
|
―
|
―
|
―
|
27
|
||||||||||||
Distributions from (contributions to) Corporate and subsidiaries
|
17,291
|
―
|
(17,291)
|
―
|
―
|
||||||||||||
Net cash provided by (used in) financing activities
|
55,930
|
(17,969)
|
(27,243)
|
―
|
10,718
|
||||||||||||
Net increase (decrease) in cash and equivalents
|
(87,523)
|
(110)
|
31,402
|
―
|
(56,231)
|
||||||||||||
Cash and equivalents at beginning of period
|
183,135
|
402
|
412,022
|
―
|
595,559
|
||||||||||||
Cash and equivalents at end of period
|
$
|
95,612
|
$
|
292
|
$
|
443,424
|
$
|
―
|
$
|
539,328
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Homebuilding:
|
|
|
||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
|
$
|
589,369
|
$
|
698,138
|
||||||
Land sale revenues
|
|
359
|
950
|
|
468
|
1,856
|
||||||||||
Total revenues
|
|
241,793
|
207,466
|
|
589,837
|
699,994
|
||||||||||
Cost of home sales
|
|
(203,188)
|
(157,677)
|
|
(486,933)
|
(543,400)
|
||||||||||
Cost of land sales
|
|
(359)
|
(954)
|
|
(473)
|
(1,628)
|
||||||||||
Total cost of sales
|
|
(203,547)
|
(158,631)
|
|
(487,406)
|
(545,028)
|
||||||||||
Gross margin
|
|
38,246
|
48,835
|
|
102,431
|
154,966
|
||||||||||
Gross margin percentage
|
|
15.8%
|
23.5%
|
|
17.4%
|
22.1%
|
||||||||||
Selling, general and administrative expenses
|
|
(39,124)
|
(36,339)
|
|
(109,828)
|
(112,504)
|
||||||||||
Income (loss) from unconsolidated joint ventures
|
|
(455)
|
1,801
|
|
(1,091)
|
1,141
|
||||||||||
Interest expense
|
|
(4,250)
|
(10,257)
|
|
(22,209)
|
(32,721)
|
||||||||||
Loss on early extinguishment of debt
|
|
―
|
(999)
|
―
|
(6,189)
|
|||||||||||
Other income (expense)
|
|
(1,948)
|
1,035
|
|
(679)
|
4,277
|
||||||||||
Homebuilding pretax income (loss)
|
|
(7,531)
|
4,076
|
|
(31,376)
|
8,970
|
||||||||||
Financial Services:
|
|
|
||||||||||||||
Revenues
|
|
3,529
|
3,430
|
|
7,124
|
9,711
|
||||||||||
Expenses
|
|
(2,324)
|
(2,721)
|
|
(7,171)
|
(8,026)
|
||||||||||
Other income
|
|
42
|
30
|
|
98
|
111
|
||||||||||
Financial services pretax income
|
|
1,247
|
739
|
|
51
|
1,796
|
||||||||||
Income (loss) before income taxes
|
|
(6,284)
|
4,815
|
|
(31,325)
|
10,766
|
||||||||||
Provision for income taxes
|
|
(150)
|
(272)
|
|
(425)
|
(633)
|
||||||||||
Net income (loss)
|
|
(6,434)
|
4,543
|
|
(31,750)
|
10,133
|
||||||||||
Less: Net (income) loss allocated to preferred shareholder
|
|
2,780
|
(2,676)
|
|
13,743
|
(5,982)
|
||||||||||
Net income (loss) available to common stockholders
|
|
$
|
(3,654)
|
$
|
1,867
|
|
$
|
(18,007)
|
$
|
4,151
|
||||||
|
|
|||||||||||||||
Income (Loss) Per Common Share:
|
|
|
||||||||||||||
Basic
|
|
$
|
(0.02)
|
$
|
0.02
|
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
|
$
|
(0.02)
|
$
|
0.02
|
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Weighted Average Common Shares Outstanding:
|
|
|
||||||||||||||
Basic
|
|
194,311,129
|
103,100,974
|
|
193,686,614
|
102,582,491
|
||||||||||
Diluted
|
|
194,311,129
|
106,137,731
|
|
193,686,614
|
111,005,597
|
||||||||||
|
|
|||||||||||||||
Weighted average additional common shares outstanding
|
|
|
||||||||||||||
if preferred shares converted to common shares (1)
|
|
147,812,786
|
147,812,786
|
|
147,812,786
|
147,812,786
|
||||||||||
|
|
|||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(78,464)
|
$
|
(67,414)
|
|
$
|
(310,577)
|
$
|
(28,495)
|
||||||
Net cash provided by (used in) investing activities
|
|
$
|
4,254
|
$
|
(35,995)
|
|
$
|
(5,270)
|
$
|
(38,454)
|
||||||
Net cash provided by (used in) financing activities
|
|
$
|
21,884
|
$
|
(61,447)
|
|
$
|
15,825
|
$
|
10,718
|
||||||
|
|
|||||||||||||||
Adjusted Homebuilding EBITDA (2)
|
|
$
|
28,350
|
$
|
29,701
|
|
$
|
63,046
|
$
|
102,684
|
(1)
|
In 2008, we issued 147.8 million equivalent shares of common stock (in the form of preferred stock) in connection with the Investment Agreement with MP CA Homes LLC, an affiliate of MatlinPatterson Global Advisers LLC. If the preferred stock was converted to common stock, the total weighted average diluted common shares outstanding for the three months ended September 30, 2011 and 2010 would have been 342.1 million and 254.0 million, respectively, and the total weighted average diluted common shares outstanding for the nine months ended September 30, 2011 and 2010 would have been 341.5 million and 258.8 million, respectively.
|
(2)
|
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 our ability to service debt and obtain financing. However, it should be noted that Adjusted Homebuilding EBITDA is not a U.S. generally accepted accounting principles (“GAAP”) financial measure. Due to the significance of the GAAP components excluded, Adjusted Homebuilding EBITDA should not be considered in isolation or as an alternative to cash flows from operations or any other liquidity performance measure prescribed by GAAP.
|
(2) continued
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(78,464)
|
$
|
(67,414)
|
$
|
(310,577)
|
$
|
(28,495)
|
|||||||
Add:
|
|
|||||||||||||||
Provision for income taxes
|
|
150
|
272
|
425
|
633
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
|
23,103
|
22,803
|
68,188
|
78,388
|
|||||||||||
Excess tax benefits from share-based payment arrangements
|
|
―
|
―
|
―
|
27
|
|||||||||||
Less:
|
|
|||||||||||||||
Income (loss) from financial services subsidiary
|
|
1,205
|
709
|
(47)
|
1,685
|
|||||||||||
Depreciation and amortization from financial services subsidiary
|
|
17
|
280
|
593
|
590
|
|||||||||||
(Gain) loss on disposal of property and equipment
|
|
184
|
1
|
184
|
(35)
|
|||||||||||
Net changes in operating assets and liabilities:
|
|
|||||||||||||||
Trade and other receivables
|
|
816
|
(579)
|
12,309
|
983
|
|||||||||||
Mortgage loans held for sale
|
|
14,967
|
(31,621)
|
19,737
|
(5,846)
|
|||||||||||
Inventories-owned
|
|
67,719
|
83,309
|
261,777
|
120,420
|
|||||||||||
Inventories-not owned
|
|
4,859
|
6,520
|
17,659
|
24,070
|
|||||||||||
Other assets
|
|
2,341
|
596
|
313
|
(108,846)
|
|||||||||||
Accounts payable
|
|
(6,027)
|
9,154
|
(5,889)
|
6,576
|
|||||||||||
Accrued liabilities
|
|
292
|
7,651
|
(166)
|
17,014
|
|||||||||||
|
||||||||||||||||
Adjusted Homebuilding EBITDA
|
|
$
|
28,350
|
$
|
29,701
|
$
|
63,046
|
$
|
102,684
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Homebuilding revenues:
|
|||||||||||||||
California
|
$
|
146,441
|
$
|
118,989
|
$
|
339,088
|
$
|
414,613
|
|||||||
Southwest
|
47,342
|
47,956
|
130,274
|
147,491
|
|||||||||||
Southeast
|
48,010
|
40,521
|
120,475
|
137,890
|
|||||||||||
Total homebuilding revenues
|
$
|
241,793
|
$
|
207,466
|
$
|
589,837
|
$
|
699,994
|
|||||||
Homebuilding pretax income (loss):
|
|||||||||||||||
California
|
$
|
(364)
|
$
|
11,874
|
$
|
(2,898)
|
$
|
27,841
|
|||||||
Southwest
|
(2,592)
|
(1,484)
|
(10,126)
|
(2,153)
|
|||||||||||
Southeast
|
(3,396)
|
(2,214)
|
(9,500)
|
(5,042)
|
|||||||||||
Corporate
|
(1,179)
|
(4,100)
|
(8,852)
|
(11,676)
|
|||||||||||
Total homebuilding pretax income (loss)
|
$
|
(7,531)
|
$
|
4,076
|
$
|
(31,376)
|
$
|
8,970
|
|||||||
Homebuilding pretax impairment charges and deposit write-offs:
|
|||||||||||||||
California
|
$
|
6,529
|
$
|
―
|
$
|
10,366
|
$
|
―
|
|||||||
Southwest
|
1,251
|
―
|
3,373
|
―
|
|||||||||||
Southeast
|
1,179
|
―
|
1,179
|
―
|
|||||||||||
Total homebuilding pretax impairment charges and deposit write-offs
|
$
|
8,959
|
$
|
―
|
$
|
14,918
|
$
|
―
|
|||||||
Homebuilding pretax impairment charges and deposit write-offs by type:
|
|||||||||||||||
Deposit write-offs
|
$
|
1,729
|
$
|
―
|
$
|
1,729
|
$
|
―
|
|||||||
Inventory impairments
|
7,230
|
―
|
13,189
|
―
|
|||||||||||
Total homebuilding pretax impairment charges and deposit write-offs
|
$
|
8,959
|
$
|
―
|
$
|
14,918
|
$
|
―
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||
New homes delivered:
|
|||||||||||||||
California
|
295
|
234
|
26%
|
696
|
826
|
(16%)
|
|||||||||
Arizona
|
37
|
45
|
(18%)
|
115
|
154
|
(25%)
|
|||||||||
Texas
|
113
|
95
|
19%
|
285
|
286
|
(0%)
|
|||||||||
Colorado
|
25
|
28
|
(11%)
|
69
|
93
|
(26%)
|
|||||||||
Nevada
|
2
|
6
|
(67%)
|
12
|
15
|
(20%)
|
|||||||||
Total Southwest
|
177
|
174
|
2%
|
481
|
548
|
(12%)
|
|||||||||
Florida
|
120
|
103
|
17%
|
293
|
347
|
(16%)
|
|||||||||
Carolinas
|
105
|
88
|
19%
|
276
|
306
|
(10%)
|
|||||||||
Total Southeast
|
225
|
191
|
18%
|
569
|
653
|
(13%)
|
|||||||||
Consolidated total
|
697
|
599
|
16%
|
1,746
|
2,027
|
(14%)
|
|||||||||
Unconsolidated joint ventures (1)
|
13
|
12
|
8%
|
27
|
40
|
(33%)
|
|||||||||
Total (including joint ventures) (1)
|
710
|
611
|
16%
|
1,773
|
2,067
|
(14%)
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total deliveries of such joint ventures.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||||||
Average selling prices of homes delivered:
|
(Dollars in thousands)
|
||||||||||||||||||
California
|
$
|
496
|
$
|
508
|
(2%)
|
$
|
487
|
$
|
502
|
(3%)
|
|||||||||
Arizona
|
195
|
214
|
(9%)
|
204
|
204
|
―
|
|||||||||||||
Texas
|
281
|
291
|
(3%)
|
290
|
294
|
(1%)
|
|||||||||||||
Colorado
|
307
|
302
|
2%
|
308
|
296
|
4%
|
|||||||||||||
Nevada
|
192
|
208
|
(8%)
|
194
|
201
|
(3%)
|
|||||||||||||
Total Southwest
|
265
|
270
|
(2%)
|
270
|
267
|
1%
|
|||||||||||||
Florida
|
202
|
196
|
3%
|
200
|
192
|
4%
|
|||||||||||||
Carolinas
|
226
|
230
|
(2%)
|
225
|
231
|
(3%)
|
|||||||||||||
Total Southeast
|
213
|
212
|
0%
|
212
|
210
|
1%
|
|||||||||||||
Consolidated
|
346
|
345
|
0%
|
338
|
344
|
(2%)
|
|||||||||||||
Unconsolidated joint ventures (1)
|
356
|
456
|
(22%)
|
409
|
467
|
(12%)
|
|||||||||||||
Total (including joint ventures) (1)
|
$
|
347
|
$
|
347
|
―
|
$
|
339
|
$
|
347
|
(2%)
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total average selling prices of such joint ventures.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||
2011
|
Gross
Margin %
|
2010
|
Gross
Margin %
|
2011
|
Gross
Margin %
|
2010
|
Gross
Margin %
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
|
$
|
589,369
|
$
|
698,138
|
||||||||||
Less: Cost of home sales
|
|
(203,188)
|
(157,677)
|
|
(486,933)
|
(543,400)
|
||||||||||||||
Gross margin from home sales
|
|
38,246
|
15.8%
|
48,839
|
23.6%
|
|
102,436
|
17.4%
|
154,738
|
22.2%
|
||||||||||
Add: Housing inventory impairment charges
|
|
7,230
|
―
|
|
13,189
|
―
|
||||||||||||||
Gross margin from home sales, as adjusted
|
|
$
|
45,476
|
18.8%
|
$
|
48,839
|
23.6%
|
|
$
|
115,625
|
19.6%
|
$
|
154,738
|
22.2%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||
2011
|
SG&A
as a % of
home sales
|
2010
|
SG&A
as a % of
home sales
|
2011
|
SG&A
as a % of
home sales
|
2010
|
SG&A
as a % of
home sales
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Selling, general and administrative expenses
|
|
$
|
39,124
|
16.2%
|
$
|
36,339
|
17.6%
|
|
$
|
109,828
|
18.6%
|
$
|
112,504
|
16.1%
|
||||||
Less: Restructuring, severance
|
|
|||||||||||||||||||
and other charges
|
|
(631)
|
(0.3%)
|
―
|
―
|
|
(3,370)
|
(0.5%)
|
―
|
―
|
||||||||||
Selling, general and administrative expenses,
|
|
|||||||||||||||||||
excluding restructuring, severance
|
||||||||||||||||||||
and other charges
|
|
$
|
38,493
|
15.9%
|
$
|
36,339
|
17.6%
|
|
$
|
106,458
|
18.1%
|
$
|
112,504
|
16.1%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||
2011
|
2010
|
% Change
|
% Absorption
Change (1)
|
2011
|
2010
|
% Change
|
% Absorption
Change (1)
|
||||||||||||
Net new orders (2):
|
|||||||||||||||||||
California
|
286
|
223
|
28%
|
13%
|
831
|
824
|
1%
|
(9%)
|
|||||||||||
Arizona
|
57
|
39
|
46%
|
46%
|
136
|
145
|
(6%)
|
(6%)
|
|||||||||||
Texas
|
117
|
76
|
54%
|
12%
|
376
|
277
|
36%
|
10%
|
|||||||||||
Colorado
|
24
|
26
|
(8%)
|
(26%)
|
75
|
77
|
(3%)
|
(3%)
|
|||||||||||
Nevada
|
4
|
11
|
(64%)
|
(64%)
|
7
|
26
|
(73%)
|
(73%)
|
|||||||||||
Total Southwest
|
202
|
152
|
33%
|
8%
|
594
|
525
|
13%
|
1%
|
|||||||||||
Florida
|
154
|
98
|
57%
|
16%
|
411
|
356
|
15%
|
(17%)
|
|||||||||||
Carolinas
|
122
|
82
|
49%
|
25%
|
344
|
328
|
5%
|
(6%)
|
|||||||||||
Total Southeast
|
276
|
180
|
53%
|
20%
|
755
|
684
|
10%
|
(12%)
|
|||||||||||
Consolidated total
|
764
|
555
|
38%
|
13%
|
2,180
|
2,033
|
7%
|
(8%)
|
|||||||||||
Unconsolidated joint ventures (3)
|
7
|
10
|
(30%)
|
(30%)
|
23
|
38
|
(39%)
|
(39%)
|
|||||||||||
Total (including joint ventures)
|
771
|
565
|
36%
|
13%
|
2,203
|
2,071
|
6%
|
(9%)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||
Average number of selling communities during the period:
|
|||||||||||||||
California
|
52
|
46
|
13%
|
50
|
45
|
11%
|
|||||||||
Arizona
|
10
|
10
|
―
|
9
|
9
|
―
|
|||||||||
Texas
|
22
|
16
|
38%
|
21
|
17
|
24%
|
|||||||||
Colorado
|
5
|
4
|
25%
|
5
|
5
|
―
|
|||||||||
Nevada
|
1
|
1
|
―
|
1
|
1
|
―
|
|||||||||
Total Southwest
|
38
|
31
|
23%
|
36
|
32
|
13%
|
|||||||||
Florida
|
38
|
28
|
36%
|
36
|
26
|
38%
|
|||||||||
Carolinas
|
31
|
26
|
19%
|
28
|
25
|
12%
|
|||||||||
Total Southeast
|
69
|
54
|
28%
|
64
|
51
|
25%
|
|||||||||
Consolidated total
|
159
|
131
|
21%
|
150
|
128
|
17%
|
|||||||||
Unconsolidated joint ventures (3)
|
3
|
3
|
―
|
3
|
3
|
―
|
|||||||||
Total (including joint ventures)
|
162
|
134
|
21%
|
153
|
131
|
17%
|
(1)
|
Represents the percentage change of net new orders per average number of selling communities during the period.
|
(2)
|
Net new orders are new orders for the purchase of homes during the period, less cancellations of existing contracts during such period.
|
(3)
|
Numbers presented regarding unconsolidated joint ventures reflect total net new orders and total average selling communities of such joint ventures.
|
At September 30,
|
||||||||||||||||||||
2011
|
2010
|
% Change
|
||||||||||||||||||
Backlog ($ in thousands):
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||
California
|
254
|
$
|
145,043
|
245
|
$
|
123,083
|
4%
|
18%
|
||||||||||||
Arizona
|
57
|
11,229
|
38
|
8,184
|
50%
|
37%
|
||||||||||||||
Texas
|
190
|
57,469
|
100
|
30,907
|
90%
|
86%
|
||||||||||||||
Colorado
|
36
|
12,362
|
38
|
11,412
|
(5%)
|
8%
|
||||||||||||||
Nevada
|
3
|
565
|
11
|
2,220
|
(73%)
|
(75%)
|
||||||||||||||
Total Southwest
|
286
|
81,625
|
187
|
52,723
|
53%
|
55%
|
||||||||||||||
Florida
|
185
|
45,781
|
87
|
18,291
|
113%
|
150%
|
||||||||||||||
Carolinas
|
123
|
32,397
|
86
|
20,140
|
43%
|
61%
|
||||||||||||||
Total Southeast
|
308
|
78,178
|
173
|
38,431
|
78%
|
103%
|
||||||||||||||
Consolidated total
|
848
|
304,846
|
605
|
214,237
|
40%
|
42%
|
||||||||||||||
Unconsolidated joint ventures (1)
|
1
|
409
|
7
|
3,148
|
(86%)
|
(87%)
|
||||||||||||||
Total (including joint ventures)
|
849
|
$
|
305,255
|
612
|
$
|
217,385
|
39%
|
40%
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total backlog of such joint ventures.
|
At September 30,
|
|||||||||
2011
|
2010
|
% Change
|
|||||||
Lots owned and controlled:
|
|||||||||
California
|
9,527
|
9,646
|
(1%)
|
||||||
Arizona
|
1,860
|
1,982
|
(6%)
|
||||||
Texas
|
4,120
|
2,448
|
68%
|
||||||
Colorado
|
718
|
392
|
83%
|
||||||
Nevada
|
1,136
|
1,203
|
(6%)
|
||||||
Total Southwest
|
7,834
|
6,025
|
30%
|
||||||
Florida
|
6,554
|
5,001
|
31%
|
||||||
Carolinas
|
2,911
|
2,578
|
13%
|
||||||
Total Southeast
|
9,465
|
7,579
|
25%
|
||||||
Total (including joint ventures)
|
26,826
|
23,250
|
15%
|
||||||
Lots owned
|
20,139
|
17,468
|
15%
|
||||||
Lots optioned or subject to contract
|
5,392
|
4,320
|
25%
|
||||||
Joint venture lots (1)
|
1,295
|
1,462
|
(11%)
|
||||||
Total (including joint ventures)
|
26,826
|
23,250
|
15%
|
||||||
Lots owned:
|
|||||||||
Raw lots
|
4,202
|
3,372
|
25%
|
||||||
Lots under development
|
4,326
|
2,878
|
50%
|
||||||
Finished lots
|
5,982
|
5,965
|
0%
|
||||||
Under construction or completed homes
|
1,961
|
1,730
|
13%
|
||||||
Held for sale
|
3,668
|
3,523
|
4%
|
||||||
Total
|
20,139
|
17,468
|
15%
|
(1)
|
Joint venture lots represent our expected share of land development joint venture lots and all of the lots of our homebuilding joint ventures.
|
At September 30,
|
|||||||||
2011
|
2010
|
% Change
|
|||||||
Homes under construction (including speculative homes):
|
|||||||||
Consolidated
|
1,193
|
886
|
35%
|
||||||
Joint ventures
|
6
|
9
|
(33%)
|
||||||
Total
|
1,199
|
895
|
34%
|
||||||
Speculative homes under construction:
|
|||||||||
Consolidated
|
648
|
527
|
23%
|
||||||
Joint ventures
|
6
|
8
|
(25%)
|
||||||
Total
|
654
|
535
|
22%
|
||||||
Completed and unsold homes:
|
|||||||||
Consolidated
|
296
|
391
|
(24%)
|
||||||
Joint ventures
|
11
|
12
|
(8%)
|
||||||
Total
|
307
|
403
|
(24%)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Total Originations:
|
||||||||||||
Loans
|
|
502
|
481
|
1,215
|
1,495
|
|||||||
Principal
|
$137,604
|
$130,038
|
$326,027
|
$394,710
|
||||||||
Capture Rate
|
80%
|
82%
|
79%
|
80%
|
||||||||
Loans Sold to Third Parties:
|
||||||||||||
Loans
|
457
|
597
|
1,159
|
1,516
|
||||||||
Principal
|
|
$123,021
|
$161,052
|
$305,340
|
$399,341
|
|||||||
Mortgage Loan Origination Product Mix:
|
||||||||||||
FHA loans
|
29%
|
36%
|
32%
|
41%
|
||||||||
Other government loans (VA & USDA)
|
22%
|
18%
|
20%
|
17%
|
||||||||
Total government loans
|
51%
|
54%
|
52%
|
58%
|
||||||||
Conforming loans
|
49%
|
46%
|
48%
|
42%
|
||||||||
Jumbo loans
|
|
0%
|
0%
|
0%
|
0%
|
|||||||
100%
|
100%
|
100%
|
100%
|
|||||||||
Loan Type:
|
||||||||||||
Fixed
|
95%
|
95%
|
95%
|
96%
|
||||||||
ARM
|
5%
|
5%
|
5%
|
4%
|
||||||||
Credit Quality:
|
||||||||||||
FICO score ≥ 700
|
93%
|
95%
|
94%
|
95%
|
||||||||
FICO score between 620 - 699
|
|
7%
|
5%
|
6%
|
5%
|
|||||||
FICO score < 620 (sub-prime loans)
|
0%
|
0%
|
0%
|
0%
|
||||||||
Avg. FICO score
|
743
|
743
|
742
|
741
|
||||||||
Other Data:
|
||||||||||||
Avg. combined LTV ratio
|
87%
|
86%
|
87%
|
87%
|
||||||||
Full documentation loans
|
100%
|
100%
|
100%
|
100%
|
||||||||
Non-Full documentation loans
|
|
0%
|
0%
|
0%
|
0%
|
· land acquisitions
· operating expenses
· joint ventures
|
· construction and development expenditures
· principal and interest payments on debt
· market expansion
|
· internally generated funds
· bank revolving credit facility
· land option contracts
· land seller notes
· sales of our equity through public and private offerings
(including warrant and employee stock option exercises)
|
· public and private note offerings (including convertible notes)
· bank term loans
· joint venture financings
· assessment district bond financings
· mortgage credit facilities
· tax refunds
|
Covenant and Other Requirements
|
Actual at
September 30, 2011
|
Covenant
Requirements at
September 30, 2011
|
|||||
(Dollars in millions) | |||||||
Consolidated Tangible Net Worth (1)
|
$604.9 | ≥ | $443.6 | ||||
Leverage Ratio:
|
|
|
|
||||
Net Homebuilding Debt to Adjusted Consolidated Tangible Net Worth Ratio (2)
|
1.63 | ≤ | 2.75 | ||||
Land Not Under Development Ratio:
|
|
||||||
Land Not Under Development to Consolidated Tangible Net Worth Ratio (3) | 0.29 | ≤ |
1.00
|
||||
Liquidity or Interest Coverage Ratio (4): | |||||||
Liquidity | $413.3 | ≥ | $125.8 | ||||
EBITDA (as defined in the Revolving Facility) to Consolidated Interest Incurred (5) | 0.79 | ≥ | 1.00 | ||||
Investments in Homebuilding Joint Ventures or Consolidated Homebuilding Non-Guarantor Entities (6) | $76.3 | ≤ | $291.7 | ||||
Actual/Permitted Borrowings under the Revolving Facility (7) | $0 | ≤ | $197.8 |
(1)
|
The minimum covenant requirement amount is subject to increase over time based on subsequent earnings (without deductions for losses) and proceeds from equity offerings.
|
(2)
|
This ratio decreases to 2.50 to 1.00 for the period ending September 30, 2013 and thereafter. Net Homebuilding Debt represents Consolidated Homebuilding Debt reduced for certain cash balances in excess of a required reserve amount.
|
(3)
|
Land not under development is land that has not yet undergone physical site improvement and has not been sold to a homebuyer or other third party.
|
(4)
|
Under the liquidity and interest coverage covenant, we are required to either (i) maintain an unrestricted cash balance in excess of our consolidated interest expense for the previous four fiscal quarters or (ii) satisfy a minimum interest coverage ratio.
|
(5)
|
The ratio increases to 1.25 to 1.00 beginning with the quarter ending June 30, 2012, and to 1.50 to 1.00 beginning with the quarter ending March 31, 2013. Consolidated Interest Incurred excludes noncash interest expense.
|
(6)
|
Net investments in unconsolidated homebuilding joint ventures or consolidated homebuilding non-guarantor entities must not exceed 35% of consolidated tangible net worth plus $80 million.
|
(7)
|
As of September 30, 2011 our borrowing base plus our overadvance amount exceeded our borrowing base debt by approximately $266 million. However, our borrowing base availability is limited by our total commitment, which was $210 million as of September 30, 2011. In addition, the amount we can borrow under the Revolving Facility is limited by a mandatory prepayment requirement that further limits our permitted borrowings to $197.8 million as of September 30, 2011, which represents $100 million plus 90% of the book value of our completed model home inventory.
|
September 30, 2011
|
||||
(Dollars in thousands)
|
||||
|
||||
9¼% Senior Subordinated Notes due April 2012
|
|
$
|
9,990
|
|
6¼% Senior Notes due April 2014
|
|
4,971
|
||
7% Senior Notes due August 2015
|
|
29,789
|
||
10¾% Senior Notes due September 2016
|
|
280,000
|
||
8⅜% Senior Notes due May 2018
|
|
575,000
|
||
8⅜% Senior Notes due January 2021
|
|
400,000
|
||
$
|
1,299,750
|
Covenant Requirements
|
Actual at
September 30, 2011
|
Covenant
Requirements at
September 30, 2011
|
||||
Total Leverage Ratio:
|
||||||
Indebtedness to Consolidated Tangible Net Worth Ratio (1)
|
2.18
|
|
≤ 2.25
|
|||
Interest Coverage Ratio:
|
||||||
EBITDA (as defined in the indenture) to Consolidated Interest Incurred
|
0.52
|
|
≥ 2.00
|
(1)
|
Indebtedness represents consolidated homebuilding debt reduced by cash held by Standard Pacific Corp. and its restricted subsidiaries in excess of $5 million. As of September 30, 2011, our unrestricted subsidiaries had approximately $376.8 million of cash. As of September 30, 2011, we retained the ability, at our option, to distribute substantially all of this cash to Standard Pacific Corp. If such a distribution were to occur, the Leverage Ratio would be positively impacted.
|
· accessing lot positions
· establishing strategic alliances
· leveraging our capital base
|
· expanding our market opportunities
· managing the financial and market risk associated with land holdings
|
·
|
Segment reporting;
|
·
|
Inventories and impairments;
|
·
|
Homebuilding revenue and cost of sales;
|
·
|
Variable interest entities;
|
·
|
Limited partnerships and limited liability companies;
|
·
|
Unconsolidated homebuilding and land development joint ventures;
|
·
|
Business combinations and goodwill;
|
·
|
Warranty accruals;
|
·
|
Insurance and litigation accruals; and
|
·
|
Income taxes.
|
·
|
our belief that our current restructuring activities are substantially complete but that we may incur additional restructuring charges;
|
·
|
trends in new home deliveries, orders, backlog, home pricing, leverage and gross margins;
|
·
|
our strategy to align new home starts with sales to manage our inventory of completed and unsold homes;
|
·
|
housing market conditions and trends in the geographic markets in which we operate;
|
·
|
the sufficiency of our liquidity;
|
·
|
litigation outcomes and related costs;
|
·
|
plans to purchase our notes prior to maturity and to engage in debt exchange transactions;
|
·
|
changes to our unrecognized tax benefits and uncertain tax positions;
|
·
|
the timing of the amortization of equity award unrecognized compensation expense;
|
·
|
our ability to utilize our deferred tax asset;
|
·
|
seasonal trends relating to our leverage levels;
|
·
|
our ability to realize the value of our deferred tax assets and the timing relating thereto; and
|
·
|
the impact of recent accounting standards.
|
·
|
adverse developments in general and local economic conditions that affect the demand for homes;
|
·
|
the impact of downturns in homebuyer demand on revenues, margins and impairments;
|
·
|
the market value and availability of land and the risk of our longer term acquisition strategy;
|
·
|
our dependence on the California market and, to a lesser extent, the Florida market;
|
·
|
the willingness of customers to purchase homes at times when mortgage-financing costs are high or when credit is difficult to obtain;
|
·
|
competition with other homebuilders as well as competition from the sellers of existing homes, short-sale homes and foreclosed homes;
|
·
|
our ability to obtain suitable bonding for development of our communities;
|
·
|
the cost and availability of labor and materials;
|
·
|
adverse weather conditions and natural disasters;
|
·
|
litigation and warranty claims;
|
·
|
our reliance on subcontractors and the adverse impact of their ability to properly construct our homes;
|
·
|
risks relating to our mortgage financing activities, including our obligation to repurchase loans we previously sold in the secondary market and exposure to regulatory investigations or lawsuits claiming improper lending practices;
|
·
|
our dependence on key employees;
|
·
|
risks relating to acquisitions, including integration risks;
|
·
|
government regulation, including environmental, building, climate change, worker health, safety, zoning and land use regulation;
|
·
|
the impact of “slow growth”, “no growth” or similar initiatives;
|
·
|
increased regulation of the mortgage industry;
|
·
|
changes to tax laws that make homeownership more expensive;
|
·
|
the amount of, and our ability to repay, renew or extend, our outstanding debt;
|
·
|
our ability to obtain additional capital when needed and at an acceptable cost;
|
·
|
the impact of restrictive covenants in our credit agreements, public notes and private term loans and our ability to comply with these covenants, including our ability to incur additional indebtedness;
|
·
|
risks relating to our unconsolidated joint ventures, including our ability and the ability of our partners to contribute funds to our joint ventures when needed or contractually agreed to, entitlement and development risks for the land owned by our joint ventures, the availability of financing to the joint venture, our completion obligations to the joint venture, the illiquidity of our joint venture investments, partner disputes, and risks relating to our determinations concerning the consolidation or non-consolidation of our joint venture investments;
|
·
|
the influence of our principal stockholder; and
|
·
|
our inability to realize the benefit of our net deferred tax asset and other risks discussed in this report and our other filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2010.
|
31.1
|
Certification of the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
The following materials from Standard Pacific Corp.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Condensed Consolidated Financial Statements, tagged as blocks of text. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
STANDARD PACIFIC CORP. | |||
(Registrant) | |||
Dated: November 1, 2011
|
By:
|
/s/ Kenneth L. Campbell
|
|
Kenneth L. Campbell
Chief Executive Officer
(Principal Executive Officer)
|
|||
Dated: November 1, 2011
|
By:
|
/s/ Jeff J. McCall
|
|
Jeff J. McCall
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Standard Pacific Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: November 1, 2011
|
/s/ Kenneth L. Campbell
|
Kenneth L. Campbell
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Standard Pacific Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Jeff J. McCall
|
Jeff J. McCall
|
Executive Vice President and
Chief Financial Officer
|
•
|
the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and
|
•
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kenneth L. Campbell
|
Kenneth L. Campbell
|
Chief Executive Officer
|
/s/ Jeff J. McCall
|
Jeff J. McCall
|
Executive Vice President and
Chief Financial Officer
|
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) In Thousands, except Share data | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Preferred stock, Par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, Shares issued | 450,829 | 450,829 |
Preferred stock, Shares outstanding | 450,829 | 450,829 |
Common stock, Par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, Shares authorized | 600,000,000 | 600,000,000 |
Common stock, Shares issued | 198,456,463 | 196,641,551 |
Common stock, Shares outstanding | 198,456,463 | 196,641,551 |
Homebuilding [Member] | ||
Deferred income taxes, valuation allowance (in Dollars) | $ 520,285 | $ 516,366 |
Note 18 - Disclosures about Fair Value | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] |
18. Disclosures
about Fair Value
The
following methods and assumptions were used to estimate the
fair value of each class of financial instrument for which it
is practicable to estimate:
Cash and
Equivalents—The carrying amount is a reasonable
estimate of fair value as these assets primarily consist of
short-term investments and demand deposits.
Mortgage Loans
Held for Investment—Fair value of these loans is
based on the estimated market value of the underlying
collateral based on market data and other factors for similar
type properties as further adjusted to reflect their
estimated net realizable value of carrying the loans through
disposition.
Secured Project
Debt and Other Notes Payable—These notes are for
seller non-recourse financing and community development
district and similar assessment district bond financings used
to finance land development and infrastructure costs for
which we are responsible. The notes were discounted at an
interest rate that is commensurate with market rates of
similar secured real estate financing.
Senior and
Senior Subordinated Notes Payable—The senior and
senior subordinated notes are traded over the counter and
their fair values were based upon the values of their last
trade at the end of the period.
Mortgage Credit
Facilities—The carrying amounts of these credit
obligations approximate market value because of the frequency
of repricing of borrowings.
Mortgage Loan
Commitments—These instruments consist of our
commitments to sell loans to investors resulting from
extending interest rate locks to loan applicants. Fair values
of these instruments are based on market rates of similar
interest rate locks.
ASC
Topic 820, Fair Value
Measurements and Disclosures (“ASC 820”)
establishes a framework for measuring fair value, expands
disclosures regarding fair value measurements and defines
fair value as the price that would be received to sell an
asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement
date. Further, ASC 820 requires us to maximize the
use of observable market inputs, minimize the use of
unobservable market inputs and disclose in the form of an
outlined hierarchy the details of such fair value
measurements. ASC 820 specifies a hierarchy of valuation
techniques based on whether the inputs to a fair value
measurement are considered to be observable or unobservable
in a marketplace. The three levels of the hierarchy are as
follows:
• Level
1 – quoted prices for identical
assets or liabilities in active markets;
• Level
2 – quoted prices for similar
assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that
are not active; and model-derived valuations in which
significant inputs and significant value drivers are
observable in active markets; and
• Level
3 – valuations derived from valuation techniques in
which one or more significant inputs or significant value
drivers are unobservable.
The
following assets have been measured at fair value in
accordance with ASC 820 for the nine months ended September
30, 2011:
Inventories
Owned—Represents the aggregate fair values for
projects that were impaired during the nine months ended
September 30, 2011, as of the date that the fair value
measurements were made. The carrying value for
these projects may have subsequently increased or decreased
due to activities that have occurred since the measurement
date. In accordance with ASC 360, during the nine
months ended September 30, 2011, inventories owned with a
carrying amount of $30.4 million were determined to be
impaired and were written down to their estimated fair value
of $17.2 million, resulting in an impairment charge of $13.2
million. These impairment charges were included in
cost of sales in the accompanying condensed consolidated
statements of operations. The fair values for
projects that were impaired were determined using Level 3
inputs, which were included in an estimated land residual
value analysis and a discounted cash flow
analysis. The projected land residual and cash
flow for each community are significantly impacted by
estimates related to local economic and market trends, sales
pace, net sales prices, development and construction
timelines, construction and development costs, sales and
marketing expenses, and other project specific
costs. The
operating margins (defined as gross margin less direct
selling and marketing costs) used to calculate land residual
values and related fair values for the projects impaired
during the nine months ended September 30, 2011, were
generally in the 8% to 12% range and discount rates were
approximately 20% to 30%.
Mortgage Loans
Held for Sale—These consist of FHA, VA, USDA and
agency first mortgages on single-family residences which are
eligible for sale to FNMA/FHLMC, GNMA or other investors, as
applicable. Fair values of these loans are based
on quoted prices from third party investors when preselling
loans.
|
Document And Entity Information | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Oct. 31, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | STANDARD PACIFIC CORP /DE/ | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 198,470,213 | |
Amendment Flag | false | |
Entity Central Index Key | 0000878560 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2011 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 |
Note 21 - Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow, Supplemental Disclosures [Text Block] |
21. Supplemental
Disclosures to Condensed Consolidated Statements of Cash
Flows
The
following are supplemental disclosures to the condensed
consolidated statements of cash flows:
|
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Note 7 - Restricted Cash | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Restricted Cash And Cash Equivalents [Text Block] |
7.
Restricted
Cash
At
September 30, 2011, restricted cash included $32.9 million of
cash held in cash collateral accounts primarily related to
certain letters of credit that have been issued and a portion
related to our financial services subsidiary mortgage credit
facilities ($31.2 million of homebuilding restricted cash and
$1.7 million of financial services restricted cash).
|
Note 22 - Supplemental Guarantor Information | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information [Text Block] |
22. Supplemental
Guarantor Information
Certain
of our 100% owned direct and indirect subsidiaries guarantee
our outstanding senior and senior subordinated notes
payable. The guarantees are full and unconditional
and joint and several. Presented below are the
condensed consolidated financial statements for our guarantor
subsidiaries and non-guarantor subsidiaries.
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED
CONSOLIDATING BALANCE SHEET
CONDENSED
CONSOLIDATING BALANCE SHEET
CONDENSED
CONSOLIDATING STATEMENTS OF CASH FLOWS
|
Note 20 - Income Taxes | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] |
20. Income
Taxes
We
account for income taxes in accordance with ASC Topic 740,
Income
Taxes (“ASC 740”). ASC 740
requires an asset and liability approach for measuring
deferred taxes based on temporary differences between the
financial statement and tax bases of assets and liabilities
existing at each balance sheet date using enacted tax rates
for years in which taxes are expected to be paid or
recovered.
The
components of our net deferred income tax asset are as
follows:
Each
quarter we assess our deferred tax asset to determine whether
all or any portion of the asset is more likely than not
unrealizable under ASC 740. We are required to
establish a valuation allowance for any portion of the asset
we conclude is more likely than not to be unrealizable. Our
assessment considers, among other things, the nature,
frequency and severity of our current and cumulative losses,
forecasts of our future taxable income, the duration of
statutory carryforward periods, our utilization experience
with operating loss and tax credit carryforwards, and tax
planning alternatives.
As of
September 30, 2011, we had a deferred tax asset of $520.3
million (excluding the $6.3 million deferred tax asset
related to our terminated interest rate
swap). During the three and nine months ended
September 30, 2011, we generated a deferred tax asset of $2.3
million and $12.2 million, respectively, related to pretax
losses, and determined under ASC 740 that we were required to
establish a full valuation allowance against this
asset. As of September 30, 2011, due
primarily to our current and cumulative losses, the
uncertainty as to the duration of the housing market's
downturn and its impact on our ability to predict future
taxable income, we have determined that an aggregate
valuation allowance of $520.3 million against our deferred
tax asset is required. If we generate
taxable income in the future, subject to the potential
limitations discussed below, we expect to be able to reduce
our effective tax rate through a reduction in this valuation
allowance.
We
underwent a change in ownership for purposes of Internal
Revenue Code Section 382 (“Section 382”) on June
27, 2008. As a result, a portion of our deferred tax asset
became subject to the various limitations on its use that are
imposed by Section 382. At September 30, 2011,
$264 million of this asset was subject to limitations, of
which $123 million was subject to the unrealized built-in
loss limitations and $141 million was subject to federal and
state net operating loss carryforward limitations.
The
limitations ultimately placed on the $123 million subject to
the unrealized built-in loss limitations depends on, among
other things, when, and at what price, we dispose of assets
with built-in losses. Assets with built-in losses
sold prior to June 27, 2013, are subject to a $15.6 million
gross annual deduction limitation for federal and state
purposes. Assets
with built-in losses sold after June 27, 2013 are not subject
to these limitations. In general, to the
extent that realized tax losses from these built-in loss
assets exceed $15.6 million in any tax year prior to June 27,
2013, the built-in losses in excess of this amount will be
permanently lost, such permanent loss reflected by identical
reductions of our deferred tax asset and deferred tax asset
valuation allowance for the tax effected amount of the
difference. During the nine months ended September
30, 2011 and 2010, we recorded such reductions in the amounts
of $8.2 million and $14.1 million, respectively, reflecting
permanent losses of our deferred tax asset in such periods
related to built-in losses realized during these periods that
were in excess of the Section 382 annual
limitation. We have recovered over 40% of the
built-in losses contained in assets that we have sold since
the beginning of 2010.
As
of September 30, 2011, $141 million (or approximately $343
million and $367 million, respectively, of federal and state
net operating loss carryforwards on a gross basis) of our
deferred tax asset related to net operating loss
carryforwards is subject to the $15.6 million gross annual
deduction limitation for both federal and state
purposes. The remaining $123 million (or
approximately $267 million and $444 million, respectively, of
federal and state net operating loss carryforwards on a gross
basis) is not currently limited by Section 382.
As
of September 30, 2011, our liability for gross unrecognized
tax benefits was $13.7 million, all of which, if recognized,
would affect our effective tax rate. There were no
significant changes in the accrued liability related to
uncertain tax positions during the three months ended
September 30, 2011, nor do we anticipate significant changes
during the next 12-month period. As of September
30, 2011, we remained subject to examination by various tax
jurisdictions for the tax years ended December 31, 2006
through 2010.
|
Note 12 - Revolving Credit Facility and Letter of Credit Facilities | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Line OfCredit Facility [Text Block] |
12. Revolving
Credit Facility and Letter of Credit Facilities
On
February 28, 2011, we entered into a $210 million unsecured
revolving credit facility with a bank group (the
“Revolving Facility”). The Revolving
Facility matures in February 2014 and has an accordion
feature under which the aggregate commitment may be increased
up to $400 million, subject to the availability of additional
bank commitments and certain other conditions. The
Revolving Facility contains financial covenants, including,
but not limited to, (i) a minimum consolidated tangible net
worth covenant; (ii) a covenant to maintain either (a) a
minimum liquidity level or (b) a minimum interest coverage
ratio; (iii) a maximum net homebuilding leverage ratio and
(iv) a maximum land not under development to tangible net
worth ratio. This facility also contains a
borrowing base provision, which limits the amount we may
borrow or keep outstanding under the facility, and also
contains a limitation on our investments in joint
ventures. Interest rates charged under the
Revolving Facility include LIBOR and prime rate pricing
options. As of the date hereof, we satisfied the
conditions that would allow us to borrow up to $197 million
under the facility and had no amounts outstanding.
As
of September 30, 2011, we were party to two committed letter
of credit facilities totaling $21 million, of which $7.3
million was outstanding. In addition, as of such
date, we also had a $30 million uncommitted letter of credit
facility, of which $23.4 million was
outstanding. These facilities require cash
collateralization and have maturity dates ranging from
October 2012 to September 2013. As of September
30, 2011 these facilities were secured by cash collateral
deposits of $31.0 million.
|
Note 3 - Segment Reporting | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] |
3.
Segment
Reporting
We
operate two principal businesses: homebuilding and financial
services.
Our
homebuilding operations construct and sell single-family
attached and detached homes. In accordance with the
aggregation criteria defined in ASC Topic 280, Segment
Reporting, our homebuilding operating segments have
been grouped into three reportable segments: California;
Southwest, consisting of our operating divisions in Arizona,
Texas, Colorado and Nevada; and Southeast, consisting of our
operating divisions in Florida and the Carolinas.
Our
mortgage financing operation provides mortgage financing to
our homebuyers in substantially all of the markets in which
we operate, and sells substantially all of the loans it
originates in the secondary mortgage market. Our
title service operation provides title examinations for our
homebuyers in Texas. Our mortgage financing and
title services operations are included in our financial
services reportable segment, which is separately reported in
our consolidated financial statements under “Financial
Services.”
Corporate
is a non-operating segment that develops and implements
strategic initiatives and supports our operating divisions by
centralizing key administrative functions such as finance and
treasury, information technology, insurance and risk
management, litigation, and human
resources. Corporate also provides the necessary
administrative functions to support us as a publicly traded
company. A substantial portion of the expenses
incurred by Corporate are allocated to the homebuilding
operating divisions based on their respective percentage of
revenues.
Segment financial
information relating to the Company’s homebuilding
operations was as follows:
Homebuilding
pretax income (loss) includes the following inventory
impairment charges and land deposit write-offs recorded in
the following segments:
Segment
financial information relating to the Company’s
homebuilding assets and investments in unconsolidated joint
ventures was as follows:
|
Note 9 - Capitalization of Interest | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Building Interest [Text Block] |
9.
Capitalization
of Interest
We
follow the practice of capitalizing interest to inventories
owned during the period of development and to investments in
unconsolidated homebuilding and land development joint
ventures in accordance with ASC Topic 835, Interest
(“ASC 835”). Homebuilding interest capitalized as
a cost of inventories owned is included in cost of sales as
related units or lots are sold. Interest capitalized to
investments in unconsolidated homebuilding and land
development joint ventures is included as a reduction of
income from unconsolidated joint ventures when the related
homes or lots are sold to third parties. Interest capitalized
to investments in unconsolidated land development joint
ventures is transferred to inventories owned if the
underlying lots are purchased by us. To the extent
our debt exceeds our qualified assets as defined in ASC 835,
we expense a portion of the interest incurred by
us. Qualified assets represent projects that are
actively selling or under development as well as investments
in unconsolidated joint ventures accounted for under the
equity method. For the three months ended
September 30, 2011 and 2010, we expensed $4.3 million and
$10.3 million, respectively, of interest costs related
primarily to the portion of real estate inventories held for
development that were deemed unqualified assets in accordance
with ASC 835. For the nine months ended September
30, 2011 and 2010, we expensed $22.2 million and $32.7
million, respectively, of interest costs in accordance with
ASC 835.
The
following is a summary of homebuilding interest capitalized
to inventories owned and investments in unconsolidated joint
ventures, amortized to cost of sales and loss from
unconsolidated joint ventures and expensed as interest
expense, for the three and nine months ended September 30,
2011 and 2010:
|
Note 14 - Senior and Senior Subordinated Notes Payable | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt [Text Block] |
14.
Senior
and Senior Subordinated Notes Payable
Senior
notes payable consisted of the following at:
Senior
subordinated notes payable consisted of the following
at:
The
senior notes payable described above are all senior
obligations and rank equally with our other existing senior
indebtedness. These senior notes and our 9¼% Senior
Subordinated Notes due 2012 contain various restrictive
covenants, including, with respect to the 10¾% Senior
Notes due 2016, a limitation on additional indebtedness and a
limitation on restricted payments. Under the
limitation on additional indebtedness, we are permitted to
incur specified categories of indebtedness but are
prohibited, aside from those exceptions, from incurring
further indebtedness if we do not satisfy either a leverage
condition or an interest coverage condition. Under
the limitation on restricted payments, we are also prohibited
from making restricted payments (which include dividends, and
investments in and advances to our joint ventures and other
unrestricted subsidiaries), if we do not satisfy either
condition. Our ability to make restricted payments
is also subject to a basket limitation. As of
September 30, 2011, we were able to satisfy the conditions
necessary to incur additional indebtedness and to make
restricted payments. In addition, if we were
unable to satisfy either the leverage condition or interest
coverage condition, restricted payments could be made from
our unrestricted subsidiaries. As of September 30,
2011, we had approximately $376.8 million of cash available
in our unrestricted subsidiaries. Many of our
wholly owned direct and indirect subsidiaries (collectively,
the “Guarantor Subsidiaries”) guaranty our
outstanding senior notes and our senior subordinated notes.
The guarantees are full and unconditional, and joint and
several. Please see Note 22 for supplemental
financial statement information about our guarantor
subsidiaries group and non-guarantor subsidiaries
group.
Certain
provisions of ASC Topic 470, Debt,
require bifurcation of a component of convertible debt
instruments, classification of that component in
stockholders’ equity, and then accretion of the
resulting discount on the debt to result in interest expense
equal to the issuer’s nonconvertible debt borrowing
rate. Our Convertible Senior Subordinated Notes
due 2012 (the “Convertible Notes”) are being
accreted to their redemption value, approximately $39.6
million, over the remaining term of these
notes. The unamortized discount of the Convertible
Notes, which was included in Additional paid-in capital, was
$4.3 million and $7.0 million at September 30, 2011 and
December 31, 2010, respectively. Interest
capitalized to inventories owned is included in cost of sales
as related homebuilding revenues are recognized (please see
Note 9 “Capitalization of Interest”).
|
Note 10 - Investments in Unconsolidated Land Development and Homebuilding Joint Ventures | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments Disclosure [Text Block] |
10. Investments
in Unconsolidated Land Development and Homebuilding Joint
Ventures
The
table set forth below summarizes the combined statements of
operations for our unconsolidated land development and
homebuilding joint ventures that we accounted for under the
equity method:
Income
(loss) from unconsolidated joint ventures reflected in the
accompanying condensed consolidated statements of operations
represents our share of the income (loss) of these
unconsolidated land development and homebuilding joint
ventures, which is allocated based on the provisions of the
underlying joint venture operating agreements.
During
the nine months ended September 30, 2011 and 2010, the total
number of projects included in investments in unconsolidated
joint ventures and reviewed for impairment were 6 and 7,
respectively, with certain unconsolidated joint ventures
having multiple real estate projects. Based on the
impairment review, no projects were determined to be impaired
for the nine months ended September 30, 2011 and 2010.
The
table set forth below summarizes the combined balance sheets
for our unconsolidated land development and homebuilding
joint ventures that we accounted for under the equity
method:
In
some cases our net investment in these unconsolidated joint
ventures is not equal to our proportionate share of equity
reflected in the table above primarily because of differences
between asset impairments that we recorded against our joint
venture investments and the impairments recorded by the
applicable joint venture. Our investments in
unconsolidated joint ventures also included approximately
$7.8 million and $4.5 million of homebuilding interest
capitalized to investments in unconsolidated joint ventures
as of September 30, 2011 and December 31, 2010, respectively,
which capitalized interest is not included in the combined
balance sheets above.
Our
investments in these unconsolidated joint ventures may
represent a variable interest in a VIE depending on, among
other things, the economic interests of the members of the
entity and the contractual terms of the
arrangement. We analyze all of our unconsolidated
joint ventures under the provisions of ASC 810 to determine
whether these entities are deemed to be VIEs, and if so,
whether we are the primary beneficiary. As of
September 30, 2011, with the exception of one homebuilding
joint venture, all of our homebuilding and land development
joint ventures with unrelated parties were determined under
the provisions of ASC 810 to be unconsolidated joint ventures
because they were not deemed to be VIEs. As of
September 30, 2011, we held an interest in one homebuilding
joint venture in Northern California that was deemed to be a
VIE. Our investment in this joint venture was
approximately $7.2 million, which represents our maximum
exposure to loss if we elect to forfeit our membership
interest in this entity. As of September 30, 2011,
this joint venture owns approximately $10.2 million of
assets, primarily representing real estate inventories, and
has no recourse debt outstanding. We have
determined that based on the voting rights with respect to
major decisions, as defined in the underlying joint venture
operating agreement, both members of this joint venture share
equally in the power to direct the activities that most
significantly impact the entity’s economic
performance. As a result, we are not required to
consolidate this joint venture as neither member is deemed to
be the primary beneficiary.
|
Note 8 - Inventories | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] |
8.
Inventories
a. Inventories
Owned
Inventories owned consisted of the following at:
In
accordance with ASC Topic 360, Property, Plant,
and Equipment (“ASC 360”), we record
impairment losses on inventories when events and
circumstances indicate that they may be impaired, and the
future undiscounted cash flows estimated to be generated by
those assets are less than their carrying
amounts. Inventories that are determined to be
impaired are written down to their estimated fair
value. We calculate the fair value of a project
under a land residual value analysis and in certain cases in
conjunction with a discounted cash flow
analysis. During the nine months ended September
30, 2011 and 2010, the total number of projects included in
inventories-owned and reviewed for impairment were 262 and
239, respectively. Based on the impairment review,
we recorded $7.3 million and $13.2 million of inventory
impairments during the three and nine months ended September
30, 2011, respectively, related to homes completed and under
construction. We did not record any inventory
impairments during the three and nine months ended September
30, 2010.
b.
Inventories Not Owned
Inventories
not owned consisted of the following at:
Under
ASC Topic 810, Consolidation
(“ASC 810”), a non-refundable deposit paid to an
entity is deemed to be a variable interest that will absorb
some or all of the entity’s expected losses if they
occur. Our land purchase and lot option deposits
generally represent our maximum exposure to the land seller
if we elect not to purchase the optioned
property. In some instances, we may also expend
funds for due diligence, development and construction
activities with respect to optioned land prior to
takedown. Such costs are classified as inventories
owned, which we would have to write off should we not
exercise the option. Therefore, whenever we enter
into a land option or purchase contract with an entity and
make a non-refundable deposit, a variable interest entity
(“VIE”) may have been created. As of
September 30, 2011, we were not required to consolidate any
VIEs. In accordance with ASC 810, we perform
ongoing reassessments of whether we are the primary
beneficiary of a VIE.
Other
lot option contracts noted in the table above represent
specific performance obligations to purchase lots that we
have with various land sellers. In certain
instances, the land option contract contains a binding
obligation requiring us to complete the lot
purchases. In other instances, the land option
contract does not obligate us to complete the lot purchases
but, due to the magnitude of our capitalized preacquisition
costs, development and construction expenditures, we are
considered economically compelled to complete the lot
purchases.
We
incurred pretax charges of $1.7 million related to deposit
write-offs for the three and nine months ended September 30,
2011. These charges were included in other income
(expense) in the accompanying condensed consolidated
statements of operations. We did
not record any deposit write-offs during the three and nine
months ended September 30, 2010.We continue to
evaluate the terms of open land option and purchase contracts
in light of slower housing market conditions and may
write-off option deposits in the future, particularly in
those instances where land sellers are unwilling to
renegotiate significant contract terms.
|
Note 1 - Basis of Presentation | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Basis of Accounting [Text Block] |
1.
Basis of
Presentation
The
condensed consolidated financial statements included herein
have been prepared by Standard Pacific Corp., without audit,
pursuant to the rules and regulations of the Securities and
Exchange Commission (“SEC”) for Form
10-Q. Certain information normally included in the
annual financial statements prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”)
has been omitted pursuant to applicable rules and
regulations. In the opinion of management, the
unaudited condensed consolidated financial statements
included herein reflect all adjustments, which include only
normal recurring adjustments, necessary to present fairly our
financial position as of September 30, 2011 and the results
of operations and cash flows for the periods
presented. Pursuant to ASC Topic 855, Subsequent
Events, we have evaluated subsequent events through
the date that the accompanying condensed consolidated
financial statements were issued for the period ended
September 30, 2011.
Certain
items in the prior period condensed consolidated financial
statements have been reclassified to conform with the current
period presentation.
The
unaudited condensed consolidated financial statements
included herein should be read in conjunction with the
audited consolidated financial statements and notes thereto
included in our Annual Report on Form 10-K for the year ended
December 31, 2010. Unless the context otherwise
requires, the terms “we,” “us,”
“our” and “the Company” refer to
Standard Pacific Corp. and its subsidiaries. The
results of operations for interim periods are not necessarily
indicative of results to be expected for the full
year.
|
Note 4 - Earnings (Loss) Per Common Share | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
4.
Earnings
(Loss) Per Common Share
We
compute earnings (loss) per share in accordance with ASC
Topic 260, Earnings per
Share (“ASC 260”), which requires the
presentation of both basic and diluted earnings (loss) per
common share. Basic earnings (loss) per common share is
computed by dividing income or loss available to common
stockholders by the weighted average number of shares of
common stock outstanding. Our Series B junior participating
convertible preferred stock (“Series B Preferred
Stock”), which is convertible into shares of our common
stock at the holder’s option (subject to a limitation
based upon voting interest), is classified as a convertible
participating security in accordance with ASC 260, which
requires that both net income and loss per share for each
class of stock (common stock and participating preferred
stock) be calculated for basic earnings per share purposes
based on the contractual rights and obligations of this
participating security. Net income (loss) allocated to the
holders of our Series B Preferred Stock is calculated based
on the preferred shareholder’s proportionate share of
weighted average shares of common stock outstanding on an
if-converted basis.
For
purposes of determining diluted earnings (loss) per common
share, basic earnings (loss) per common share is further
adjusted to include the effect of potential dilutive common
shares outstanding, including stock options and warrants
using the treasury stock method and convertible debt using
the if-converted method. For the three and nine
months ended September 30, 2011, all dilutive securities were
excluded from the calculation as they were anti-dilutive as a
result of the net loss for these periods. Shares
outstanding under the share lending facility are not treated
as outstanding for earnings per share purposes in accordance
with ASC 260, because the share borrower must return to us
all borrowed shares (or identical shares) on or about October
1, 2012, or earlier in certain circumstances. The
following table sets forth the components used in the
computation of basic and diluted earnings (loss) per common
share.
As
of September 30, 2011 and 2010, we had 450,829 shares of
Series B Preferred Stock outstanding, which are convertible
into 147.8 million shares of our common stock. The
following table sets forth the potential weighted average
diluted common shares outstanding if our Series B Preferred
Stock was converted to common stock. Please see
Note 15 “Preferred Stock” for further discussion
of the Series B Preferred Stock.
In
accordance with ASC 260, assuming that all of the outstanding
Series B Preferred Stock was converted to common stock, all
net income (loss) would be allocated to common stock in the
computation of earnings (loss) per share.
|
Note 5 - Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] |
5.
Comprehensive
Income (Loss)
The
components of comprehensive income (loss) were as
follows:
|
Note 13 - Secured Project Debt and Other Notes Payable | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Debt Disclosure [Text Block] |
13. Secured
Project Debt and Other Notes Payable
Our
secured project debt and other notes payable consist of
seller non-recourse financing and community development
district and similar assessment district bond financings used
to finance land development and infrastructure costs for
which we are responsible. At September 30, 2011,
we had approximately $3.9 million outstanding in secured
project debt and other notes
payable.
|
Note 6 - Stock-Based Compensation | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
6.
Stock-Based
Compensation
We
account for share-based awards in accordance with ASC Topic
718, Compensation-Stock
Compensation, which requires the fair value of
stock-based compensation awards to be amortized as an expense
over the vesting period. Stock-based compensation
awards are valued at the fair value on the date of
grant.
During
the nine months ended September 30, 2011, we granted
1,300,000 stock options to an executive officer, and issued
704,435 shares of common stock to our officers and key
employees and 121,430 shares of common stock to our
independent directors (excluding directors appointed by MP CA
Homes LLC (“MatlinPatterson”) who did not receive
any stock awards).
Total
compensation expense recognized related to stock-based
compensation was as follows:
As
of September 30, 2011, total unrecognized compensation
expense related to stock-based compensation was $5.4 million,
with a weighted average period over which the unrecognized
compensation expense is expected to be recorded of
approximately 1.6 years.
|
Note 16 - Derivative Instruments and Hedging Activities | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
16. Derivative
Instruments and Hedging Activities
We
account for derivatives and certain hedging activities in
accordance with ASC Topic 815, Derivatives and
Hedging (“ASC 815”). ASC 815
establishes the accounting and reporting standards requiring
that every derivative instrument, including certain
derivative instruments embedded in other contracts, be
recorded as either assets or liabilities in the consolidated
balance sheets and to measure these instruments at fair
market value. Gains and losses resulting from changes in the
fair market value of derivatives are recognized in the
consolidated statement of operations or recorded in
accumulated other comprehensive income (loss), net of tax,
and recognized in the consolidated statement of operations
when the hedged item affects earnings, depending on the
purpose of the derivative and whether the derivative
qualifies for hedge accounting treatment.
Our
policy is to designate at a derivative’s inception the
specific assets, liabilities or future commitments being
hedged and monitor the derivative to determine if the
derivative remains an effective hedge. The effectiveness of a
derivative as a hedge is based on a high correlation between
changes in the derivative’s value and changes in the
value of the underlying hedged item. We recognize
gains or losses for amounts received or paid when the
underlying transaction settles. We do not enter
into or hold derivatives for trading or speculative
purposes.
In
May 2006, we entered into two interest rate swap agreements
related to our Term Loan B with an aggregate notional amount
of $250 million that effectively fixed our 3-month LIBOR
rates for our then outstanding term loan through its maturity
date of May 2013. The swap agreements were
designated as cash flow hedges and, accordingly, were
reflected at their fair market value in accrued liabilities
in our consolidated balance sheets. To the extent
the swaps were deemed effective and qualified for hedge
accounting treatment, the related gain or loss was deferred,
net of tax, in stockholders’ equity as accumulated
other comprehensive income (loss).
In
December 2010, we repaid in full the remaining $225 million
balance of our Term Loan B and made a $24.5 million payment
to terminate the related interest rate swap agreements in
connection with our debt refinance transaction that closed in
the 2010 fourth quarter. As a result, we have no
payment obligation remaining related to interest rate swap
agreements. The $24.5 million cost associated with the early
unwind of the interest rate swap agreements (of which a
remaining unamortized balance of $15.0 million was included
in accumulated other comprehensive income (loss), net of tax,
and $9.3 million was included in deferred income taxes in the
accompanying condensed consolidated balance sheet as of
December 31, 2010) is being amortized over a period of
approximately 2.3 years (or May 2013), the original maturity
date of the terminated instruments.
For
the nine months ended September 30, 2011, we recorded
comprehensive income of $4.8 million, net of tax, related to
amortization to interest incurred of the remaining cost
associated with the early unwind of the interest rate swap
agreements (of which a remaining unamortized balance of $10.3
million is included in accumulated other comprehensive income
(loss), net of tax, and $6.3 million is included in deferred
income taxes in the accompanying condensed consolidated
balance sheet as of September 30, 2011). For the
nine months ended September 30, 2010, we recorded
comprehensive loss of $2.1 million, net of tax, related to
ineffectiveness of the swap agreements.
|
F3/M3@=ZO]O5N[VI
M5$QPI\W=3`DX`4[-AE.GKW<['7TZ;N(Y&(`3X`0X[2VAQL!IVM='DY$^Z@).
MZB@9X/0,TP.<6@.G3D\?3GKZ8"K?'`TX-2]+JL@9H HV@<>@H=JB0\\E-4"
M/+R&7$^;[1I8!!:!Q;,(KZM/I(-F\/#R!KTK]QU_;I!BB:_07S/_N_2E>%\S
MF>.L#,NRW?NDJ9U$NOR38&68Y4]RG=&1IK+W$D_5&Q6_WTV4..-?(XE?[V*\
M*YA%64LD?XMB=[C3,NM/[Y5EIMQ4ALG F?4N)DI0`_0.]AN`;UK
MAUZ#I\04))^Z$V4@(`@(`DK#ONYPHH_Z7>EP%P`\>^AWA#FZ"^Y5NHHINNZD
MWOZJ,T_2_=WW@JWG.RT-_]YV=U(24W1-<4#PWM?NO7L#?=Q#TD9-/03\`#]%
MA=<.^'7T_E0Z<`'\+JZ'@!_@IZCP6@&_/@5^G>-)#N@#^BXM-Z`/Z,.D71N4
M$00$`1457BL(.)CHD[YTA2K@A\UU.&50Y;UT7YE#O[_7J\"A:??,9;[A:(9+
MGM1:VJX=A+X1V@],8]]6S`TJ=MJIO]=NRW.:8^C'\-;*[5=7S"&KM6_]ICO5
M)X.QU.A4=K@7%9IZRZ!!']"GD?09ZH-A\[;A@CZ@#^C3?/KHG8%LH@GL`7M4
MMBVPI_'L:?!$CP)R4W%*!R`"B!H(HIO^2._WIQB"83.4ARD5Y:94/KBFMV15
MC[YQO"!XJ , #HW"U )?C>W)EA9$2M%4V1R3SP7QF-(1U\S2&^6&\2%.&I'NZJF./G,Y(!FC
M>$B/?T0O1)\L4JKFT)36E3K."Z;/Y/5:'UG$))=8%9B'+/L<3!`&_G,/V@K8
M9!J+-:*:6(C7'DF1^0#-J"#?;WH?Y*]`Y*^2Q9I;08O(V>33%]J"'1=O6#PM
MBR@.YH;GP`*2(HQIJBJ.];(E*Z7B%(^X%_+!1^!LVXD,Y.,*&H'W#B;1B&%!
ME$F'G0",@7'O(/W'!5Q"`UB&O9.-.)@O]E8F8IR02W\5\^O,YACU33XD18Q2
M,9-Z2PV:-(/M`?71?(XLSXP9,HD>^URSH2Z]#S&84,G\G*./L:`:BP?GGC5N
M=8T`#G3,-`QRA`,.BJCUV,8&@H!(\*6&+3)3H"H\X=(Z1;*BBJ9HK.TKV@52
MD.+>3=R5>P%-U]EFSLOT0:BJPKB["$]L$(N'"G*/.I\!G,Z(H-Z2S+BG(&*-
M/70=[]1"OKS+G`)KS`-%X(GN@Q3K&CL:/[K4_.%D3Z>T02N?`=7%>8JUW&B?
MR@FUB)E:BLJ@-^]I+M&_J294%DF5YN!TM`LG6R?8VS,,#RG-]"W//W;N26C6
M8+D/0&Q'TCM.UXF?IXL<491_T"Y6"HKWS-0>*.J(G3IBEX[\N6L3PVS[WA=H
M2S]JEZA0FE]DG+E+ADQ`8J,G3N)INY@"J W*,4+PEB
M-)F!T+P4G"1%8$]/?PK@I%^
MN38,P=@D]LIG%N)OZ`?GES)"SAEFQ;U$.\WB.-<2=3L7OY=(MA#&+Q.B\(UM
M2XV>?^S\)5>[5.S6?-9=O]
^O4$QX8!`:!06!0<^/."V3T=TU0(3'_T39F
MMF.'=OE>G.P_?B_)>W&9B/0$E%,GQN'\X/S@_.#\&J!B8!`8!`:!00H&X"IM
M$\".WCV/'XQO^%L'Z?(JK(PG<3L?#]<-T_0C?L=@)L)O[)J670K2$$-NHS=5
M:,I502_:[^J#H7RI*EQH<]>3@$?@43-Y--:[/?#HXI;7W)PZPODC*-,71N&\
M'[#MX;S%9J%$V1"QPT,V5T)-\92QE":];K_FC4QPEPC?U38]P*DM<.KKD]$0
M>?EV!/'(RS
M1/]B)Y8O:.;YOO'Q?QAO*6?
M2+[B-N#>)]W62?J??Q)0+%+^)'O*_G0@.V9_KP/QJ]ZH^'U1#S=!:7H%Y[9#
M]&O?O#"8EJ[CR)?6G,L!#KR+HVJ<=K+&)V_\GC!MYCE637G(6UQ+)J;'M3P5
M2B^11TU)#6M>F'G!LSA-OT?O.%8K.H?_^S7F['O!V2U#S5R7'^42
MU;9>/7(1`P-TRC(!="[5HY\R5W,`.2TU+R"G+!,@YU(]^B$9Y-7J3S!%+?N)
M/Y=?K'::\69.4+^]>??NPZ>_O_KI\]W=YU]?:[W5-PFTKFQ@NK^$6J:4QX5Z
M3@@_??[R[OV7M31GCF'^R66JB31\2;)P`C4UH'(E[N9?FL_;NHD_IR+-\1+?
M:W7LM*UF"KP!;\`;\-92,P7>@+=VXZUX3LGFWSM^(\F6W4@%M0#2E#;-\X_V
M,;LLZ:;&ZU$%XKN=O>Q4HB05H@*T)7UZ\TZWD&V>LY&DV__H4I-0>W>074ARH#A?90-Q6VP)O
MRC(!;R[5H^^8F<6-A#9=T*9YEE5.79TZ(CS"NO>6AX[[2ZAE2GE
/N]*+RD`C
MT*@AM@8:M81&77TH/\`*+&IN)A5,`I,:S*1&GJEW<:DA.E+&SD"BMI!HI/
'QX!`V1$EECTF5LVG:Q^SFI_*SY_1[+7)-SQ53ND;(+.T/SZ;*/#`W
MC/RJ"17,IZCG+N!.F^].>PT\6[#IGA3H`7J`GIONH%=K\03@`_@H95R`3_/A
M,^U)-RQ*&P[X`#[*&!?@TWCX8#)%':4"B`XU-("H\2"ZZ>J=J73W"ABD]$0*
MMJ=2\P6S+MVYF&KD>K*"`*"@(H*KQ4$O!E43*_]_]L[M]VV
MD6U=OPHO)C;40/5L'G3,6EA`#L[L`)VX=^R-8%U28MEF0R;=))5.WGY+MF/'
M=E%'4AQ%?KE*RQV+_#G&-XKUUZB"?E;:;DVT&:VE:Q_?;8O@^:2+LO1WMMC5
MSVJ7;=L(:6$)V;[^+D5RHG0QG>LM"O!QY?M7A4/GJBMOF6PEI??XJUM&`]>Z
MU2TOBV_C*6S9I$OC>H$\D-<(\B9JV#<2#^`!/(`'\%H&/$\-1K;U4`C$G:53
MRZW4#>S5*%M+L&=CZQC8`WM@#^PQHR
!CL4F"!T?&"#W!DB-5Y<:V3HM0&P0<14A
VQDCS
<;-!X3TQN=GA:O'-
MT\UM;3=W'>+0TUU_RG4RG^`-O#&(`V_J3[E.YA.\@3<&<>!-_2G7R7R"-_#&
M(`Z\J3_E.IE/\`;>&,2!-SNH5L&,_$Y-.#\_@4<=]Y^G+\GFY\TQFUIAW(V=
M,.Z:1IB2NRJ/CIKC8VUW3)S,,AWFVNE%^NYOORP_NVN:"9/(T7\OXN7C*#NR
MR"BWI/:7C;%A0UI2";M6"7OCD1KX]JU3;%0T>2L2H0_TL9$^GF?LBS/>./`!
M/F*2"_A8#Y_`4WW7KS";VL\>N0N281`,LI!!%O=+"-`-$,E(-$!D/8AZ@Z'R
M`_OVJ;7]5:P"(V2WUH1JG)!*^K^Z[9:\#?.KTD+A//=$G+!PIOHR3I(XN732
M"^=&9W$:66F5T#Q(\^!Q:JQUS8/C0'G!P+HJW.[V0?`'_J2+UPK\E4S'PCX!
M80C[8)]0\=K!/L]7KF_F'_AK/!+!'_@3*EXK\&>Q$08!(2`$A("'GA(P&:C!
M@(VR945B!?Y<`XU*:RG;QYZKQ9[3RX_6&G-6^W+;1HT-25U;;5Z*Y$3I8CK7
M6Q3GX\KWKPJ'U557Y3+92LKR<85;EN6A9]TRX9=5N94)#/@`'^"K1SA_T@HW
MKI7Y"_?@'MRKR8GK!ZKO]ULP$=/*%`9]H`_TX<)!/^@'_:!?A0Y<,%&!;SR[
M!_2)=.#N?A8NP^GVQ\O_FF:_K?[ZW[_E-Q>OSA8W-W-]K9,BG/]G$69A4J39
MA^0BS:[#(DZ3<_VM>+/RJ?YG]4O_^[=OTVS^/[=?__\!4$L#!!0````(`#:&
M83\?':LYNPD``-5G```4`!P`
),,H3.KJ)#LKP#&;8
M0]XTKT6R!1E3VP4MJ/%"OJBLESU$(*,)GB9IA1-9'"9_(`HT]9*43.&E:Q3F
M>$%^"?Y'G("YEQ.Z@=5.1K$C\)FCTUI=W'A7O@)FVKPZ44.IZ\(=+>FP2B-1
M\]QIAM303#'/;#DG,AS[H1=5D5+U]!;Q6*LY+D(T!+JG^AZ5`]XZ%89.%I1R
M(%^HQ
`L>XM`T)XP27O*?`\O
MHKS!`7@ORW(>E,V]%,^3*,"IZ^/61#J:DJI-O#ZF:FM;'-U[802>X5URDBP6
M24PQ8%3-CKTL]$?7>0HH#)]DIZ<3NU%4U9K(*T&!,/L4&,H:T-S&?@QE0ZAU
M%0FG&TL$MZZ>Y!JG!7#0"!I7A)T@1CF-9;>%71AU^".75,3(4,3&(CK8Z7MY
M53:5WKH2!>PDW:JBPXNA='!D%Q[9C\&9@SZNVIF7QL3S`_`4\&C'#W^BH>,6
M]SB=)/RM+D5$L,?IW\`R0J?$0_;2#!'GFAE!3YVZ:%*V-4\&\6H'%)K3,%KE
M=8&I,<6FG&J,4\)`>`IT!.)3_+5+@%Q9T!ULE(E1<]WZ#AYHMI]P.)M#.1Y"
M=6^&&[HMNUKE4*-.L[2.)L`1S%N9D:&'G4">2B"H@-(ZWS+4`.0V?\F,M^69
M9T"JH8\1D66BCQK/3M%@XT[D1-EFYX'YJY"-R3ZL%A.<7DVWIAO-S-%#P')J
MA!9RG281&^8XB]^(X3DL_IP&6:3*B[!C/";'@1@Y_&
M3JT$`E)+0JLY]"U/)E$X8W41G#IE*H)3.@>=?+%U(Z:"#,\S>]\6B8KCC*O$
MSG!XC3TD(\POT$I(=(:KN/8"(?$&IU!"!X+<1&K)#DY',EOUD;`:FM9&3Z"S
M1-)8ZQ^7,ME;(IH'G!G)3$L&7X;>A/AS>4@]-];[0R.92SK<7AY%%RJB"@H7
M1\<7EQ=W%V>WZ.C#*3K[Q\>+NU^DB_`%?X-^SGM&]3(R,CAFR&+;WEZE*!
MPZ5V:\/V:GLUV(S#)*6Y'./(0PW>KCQ4\PKE`;X0\-T-S[