Delaware
|
1-10959
|
33-0475989
|
||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
15360 Barranca Parkway
Irvine, California
|
92618
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
ITEM 2.02
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
ITEM 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
(d)
|
Exhibits
|
EXHIBIT
NUMBER
|
|
DESCRIPTION
|
99.1
|
|
Press release announcing financial results for the quarter and year ended December 31, 2012.
|
STANDARD PACIFIC CORP.
|
||
By:
|
/S/ JEFF J. MCCALL
|
|
Jeff J. McCall
|
||
Executive Vice President and
Chief Financial Officer
|
EXHIBIT
NUMBER
|
|
DESCRIPTION
|
99.1
|
|
Press release announcing financial results for the quarter and year ended December 31, 2012.
|
·
|
Net income of $486.9 million, or $1.22 per diluted share, vs. $15.3 million, or $0.04 per diluted share
|
o
|
Diluted earnings per share of $0.08*, excluding $454 million deferred tax asset valuation allowance reversal
|
·
|
Net new orders of 983, up 60%
|
·
|
Backlog of 1,404 homes, up 106%; Dollar value of backlog up 122%
|
·
|
150 average active selling communities, down 6%
|
o
|
156 active selling communities at year end
|
·
|
Homebuilding revenues up 43%
|
o
|
Average selling price of $388 thousand, up 4%
|
o
|
973 new home deliveries, up 24%
|
·
|
Gross margin from home sales of 20.8%, compared to 20.4%
|
·
|
SG&A rate from home sales of 13.1%, a 210 basis point improvement
|
·
|
$267.6 million of land purchases and development costs compared to $86.3 million
|
·
|
Adjusted Homebuilding EBITDA of $68.8 million*, or 16.4%* of homebuilding revenues, compared to $42.8 million*, or 14.6%* of homebuilding revenues
|
·
|
Homebuilding cash balance of $367 million
|
·
|
Net income of $531.4 million, or $1.44 per diluted share, vs. net loss of $16.4 million, or $0.05 per share
|
o
|
Diluted earnings per share of $0.21*, excluding $454 million deferred tax asset valuation allowance reversal
|
·
|
Net new orders of 4,014, up 44%
|
·
|
Homebuilding revenues of $1,237.0 million, up 40% from $883.0 million
|
o
|
Average selling price of $362 thousand, up 4%
|
o
|
3,291 new home deliveries, up 30%
|
·
|
Gross margin from home sales of 20.5%, compared to 18.4%
|
·
|
SG&A rate from home sales of 14.5%, compared to 17.5%
|
·
|
Operating cash outflows of $283.1 million vs. $322.6 million
|
o
|
Excluding land purchases and development costs, cash inflows of $322.1 million* vs. $114.5 million*
|
·
|
Adjusted Homebuilding EBITDA of $193.9 million*, or 15.7%* of homebuilding revenues, compared to $105.9 million*, or 12.0%* of homebuilding revenues
|
|
*Please see “Reconciliation of Non-GAAP Financial Measures” beginning on page 11.
|
|
###
|
|
(Note: Tables Follow)
|
As of or For the Three Months Ended
|
||||||||||||||
December 31,
|
December 31,
|
Percentage
|
September 30,
|
Percentage
|
||||||||||
2012
|
2011
|
or % Change
|
2012
|
or % Change
|
||||||||||
Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
973
|
782
|
24%
|
861
|
13%
|
|||||||||
Average selling price
|
$
|
388
|
$
|
374
|
4%
|
$
|
369
|
5%
|
||||||
Home sale revenues
|
$
|
377,674
|
$
|
292,725
|
29%
|
$
|
317,389
|
19%
|
||||||
Gross margin % (including land sales)
|
18.7%
|
20.4%
|
(1.7%)
|
20.1%
|
(1.4%)
|
|||||||||
Gross margin % from home sales (excluding warranty accrual
|
||||||||||||||
adjustments)*
|
20.8%
|
19.4%
|
1.4%
|
20.2%
|
0.6%
|
|||||||||
Gross margin % from home sales (excluding warranty accrual
|
||||||||||||||
adjustments and interest amortized to cost of home sales)*
|
28.9%
|
27.5%
|
1.4%
|
28.7%
|
0.2%
|
|||||||||
Severance and other charges
|
$
|
―
|
$
|
875
|
(100%)
|
$
|
―
|
―
|
||||||
Incentive and stock-based compensation expense
|
$
|
7,013
|
$
|
6,651
|
5%
|
$
|
4,768
|
47%
|
||||||
Selling expenses
|
$
|
19,362
|
$
|
15,609
|
24%
|
$
|
17,069
|
13%
|
||||||
G&A expenses (excluding incentive and stock-based compensation
|
||||||||||||||
expenses and severance and other charges)
|
$
|
23,067
|
$
|
21,412
|
8%
|
$
|
21,284
|
8%
|
||||||
SG&A expenses
|
$
|
49,442
|
$
|
44,547
|
11%
|
$
|
43,121
|
15%
|
||||||
SG&A % from home sales
|
13.1%
|
15.2%
|
(2.1%)
|
13.6%
|
(0.5%)
|
|||||||||
Net new orders
|
983
|
615
|
60%
|
989
|
(1%)
|
|||||||||
Average active selling communities
|
150
|
160
|
(6%)
|
156
|
(4%)
|
|||||||||
Monthly sales absorption rate per community
|
2.2
|
1.3
|
70%
|
2.1
|
3%
|
|||||||||
Cancellation rate
|
15%
|
19%
|
(4%)
|
14%
|
1%
|
|||||||||
Gross cancellations
|
178
|
141
|
26%
|
161
|
11%
|
|||||||||
Cancellations from current quarter sales
|
71
|
53
|
34%
|
67
|
6%
|
|||||||||
Backlog (homes)
|
1,404
|
681
|
106%
|
1,394
|
1%
|
|||||||||
Backlog (dollar value)
|
$
|
515,469
|
$
|
232,583
|
122%
|
$
|
498,739
|
3%
|
||||||
Cash flows (uses) from operating activities
|
$
|
(111,980)
|
$
|
(12,036)
|
(830%)
|
$
|
(72,418)
|
(55%)
|
||||||
Cash flows (uses) from investing activities
|
$
|
(1,610)
|
$
|
(3,043)
|
47%
|
$
|
(95,704)
|
98%
|
||||||
Cash flows (uses) from financing activities
|
$
|
(19,311)
|
$
|
(5,748)
|
(236%)
|
$
|
348,696
|
|||||||
Land purchases (incl. seller financing and JV purchases)
|
$
|
204,796
|
$
|
49,759
|
312%
|
$
|
206,740
|
(1%)
|
||||||
Adjusted Homebuilding EBITDA*
|
$
|
68,802
|
$
|
42,809
|
61%
|
$
|
51,523
|
34%
|
||||||
Adjusted Homebuilding EBITDA Margin %*
|
16.4%
|
14.6%
|
1.8%
|
16.2%
|
0.2%
|
|||||||||
Homebuilding interest incurred
|
$
|
35,095
|
$
|
35,425
|
(1%)
|
$
|
36,112
|
(3%)
|
||||||
Homebuilding interest capitalized to inventories owned
|
$
|
33,664
|
$
|
30,777
|
9%
|
$
|
32,604
|
3%
|
||||||
Homebuilding interest capitalized to investments in JVs
|
$
|
851
|
$
|
1,689
|
(50%)
|
$
|
1,839
|
(54%)
|
||||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
33,784
|
$
|
23,657
|
43%
|
$
|
27,078
|
25%
|
For the Year Ended
|
|||||||||
December 31,
|
December 31,
|
Percentage
|
|||||||
2012
|
2011
|
or % Change
|
|||||||
Operating Data
|
(Dollars in thousands)
|
||||||||
Deliveries
|
3,291
|
2,528
|
30%
|
||||||
Average selling price
|
$
|
362
|
$
|
349
|
4%
|
||||
Home sale revenues
|
$
|
1,190,252
|
$
|
882,094
|
35%
|
||||
Gross margin % (including land sales)
|
19.7%
|
18.4%
|
1.3%
|
||||||
Gross margin % from home sales (excluding impairments and warranty
|
|||||||||
accrual adjustments)*
|
20.5%
|
19.6%
|
0.9%
|
||||||
Gross margin % from home sales (excluding impairments, warranty
|
|||||||||
accrual adjustments and interest amortized to cost of home sales)*
|
28.9%
|
27.4%
|
1.5%
|
||||||
Inventory impairment charges
|
$
|
―
|
$
|
13,189
|
(100%)
|
||||
Severance and other charges
|
$
|
―
|
$
|
4,245
|
(100%)
|
||||
Incentive and stock-based compensation expense
|
$
|
20,362
|
$
|
18,511
|
10%
|
||||
Selling expenses
|
$
|
65,608
|
$
|
48,291
|
36%
|
||||
G&A expenses (excluding incentive and stock-based compensation
|
|||||||||
expenses and severance and other charges)
|
$
|
86,237
|
$
|
83,328
|
3%
|
||||
SG&A expenses
|
$
|
172,207
|
$
|
154,375
|
12%
|
||||
SG&A % from home sales
|
14.5%
|
17.5%
|
(3.0%)
|
||||||
Net new orders
|
4,014
|
2,795
|
44%
|
||||||
Average active selling communities
|
155
|
152
|
2%
|
||||||
Monthly sales absorption rate per community
|
2.2
|
1.5
|
41%
|
||||||
Cancellation rate
|
13%
|
16%
|
(3%)
|
||||||
Gross cancellations
|
621
|
520
|
19%
|
||||||
Cancellations from current year sales
|
289
|
227
|
27%
|
||||||
Cash flows (uses) from operating activities
|
$
|
(283,116)
|
$
|
(322,613)
|
12%
|
||||
Cash flows (uses) from investing activities
|
$
|
(105,205)
|
$
|
(8,313)
|
(1,166%)
|
||||
Cash flows (uses) from financing activities
|
$
|
324,354
|
$
|
10,077
|
3,119%
|
||||
Land purchases (incl. seller financing and JV purchases)
|
$
|
542,106
|
$
|
303,775
|
78%
|
||||
Adjusted Homebuilding EBITDA*
|
$
|
193,903
|
$
|
105,855
|
83%
|
||||
Adjusted Homebuilding EBITDA Margin %*
|
15.7%
|
12.0%
|
3.7%
|
||||||
Homebuilding interest incurred
|
$
|
141,827
|
$
|
140,905
|
1%
|
||||
Homebuilding interest capitalized to inventories owned
|
$
|
129,136
|
$
|
109,002
|
18%
|
||||
Homebuilding interest capitalized to investments in JVs
|
$
|
6,295
|
$
|
6,735
|
(7%)
|
||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
103,902
|
$
|
69,636
|
49%
|
As of
|
|||||||||
December 31,
|
December 31,
|
Percentage
|
|||||||
2012
|
2011
|
or % Change
|
|||||||
Balance Sheet Data
|
(Dollars in thousands, except per share amounts)
|
||||||||
Homebuilding cash (including restricted cash)
|
$
|
366,808
|
$
|
438,157
|
(16%)
|
||||
Inventories owned
|
$
|
1,971,418
|
$
|
1,477,239
|
33%
|
||||
Homesites owned and controlled
|
30,767
|
26,444
|
16%
|
||||||
Homes under construction
|
1,574
|
940
|
67%
|
||||||
Completed specs
|
215
|
383
|
(44%)
|
||||||
Deferred tax asset valuation allowance
|
$
|
22,696
|
$
|
510,621
|
(96%)
|
||||
Homebuilding debt
|
$
|
1,542,018
|
$
|
1,324,948
|
16%
|
||||
Stockholders' equity
|
$
|
1,255,816
|
$
|
623,754
|
101%
|
||||
Stockholders' equity per share (including if-converted
|
|||||||||
preferred stock)*
|
$
|
3.48
|
$
|
1.82
|
91%
|
||||
Total consolidated debt to book capitalization
|
56.5%
|
68.7%
|
(12.2%)
|
||||||
Adjusted net homebuilding debt to total adjusted
|
|||||||||
book capitalization*
|
48.3%
|
58.7%
|
(10.4%)
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$ | 377,674 | $ | 292,725 | $ | 1,190,252 | $ | 882,094 | ||||||||
Land sale revenues
|
42,169 | 431 | 46,706 | 899 | ||||||||||||
Total revenues
|
419,843 | 293,156 | 1,236,958 | 882,993 | ||||||||||||
Cost of home sales
|
(299,105 | ) | (232,960 | ) | (946,630 | ) | (719,893 | ) | ||||||||
Cost of land sales
|
(42,196 | ) | (430 | ) | (46,654 | ) | (903 | ) | ||||||||
Total cost of sales
|
(341,301 | ) | (233,390 | ) | (993,284 | ) | (720,796 | ) | ||||||||
Gross margin
|
78,542 | 59,766 | 243,674 | 162,197 | ||||||||||||
Gross margin %
|
18.7 | % | 20.4 | % | 19.7 | % | 18.4 | % | ||||||||
Selling, general and administrative expenses
|
(49,442 | ) | (44,547 | ) | (172,207 | ) | (154,375 | ) | ||||||||
Income (loss) from unconsolidated joint ventures
|
617 | 1,298 | (2,090 | ) | 207 | |||||||||||
Interest expense
|
(580 | ) | (2,959 | ) | (6,396 | ) | (25,168 | ) | ||||||||
Other income (expense)
|
(44 | ) | (338 | ) | 4,664 | (1,017 | ) | |||||||||
Homebuilding pretax income (loss)
|
29,093 | 13,220 | 67,645 | (18,156 | ) | |||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
7,051 | 3,783 | 21,300 | 10,907 | ||||||||||||
Expenses
|
(3,110 | ) | (2,230 | ) | (11,062 | ) | (9,401 | ) | ||||||||
Other income
|
87 | 79 | 304 | 177 | ||||||||||||
Financial services pretax income
|
4,028 | 1,632 | 10,542 | 1,683 | ||||||||||||
Income (loss) before income taxes
|
33,121 | 14,852 | 78,187 | (16,473 | ) | |||||||||||
Benefit for income taxes
|
453,804 | 481 | 453,234 | 56 | ||||||||||||
Net income (loss)
|
486,925 | 15,333 | 531,421 | (16,417 | ) | |||||||||||
Less: Net (income) loss allocated to preferred shareholder
|
(199,646 | ) | (6,619 | ) | (224,408 | ) | 7,101 | |||||||||
Less: Net (income) loss allocated to unvested restricted stock
|
(489 | ) | ― | (410 | ) | ― | ||||||||||
Net income (loss) available to common stockholders
|
$ | 286,790 | $ | 8,714 | $ | 306,603 | $ | (9,316 | ) | |||||||
Income (Loss) Per Common Share:
|
||||||||||||||||
Basic | $ | 1.35 | $ | 0.04 | $ | 1.52 | $ | (0.05 | ) | |||||||
Diluted
|
$ | 1.22 | $ | 0.04 | $ | 1.44 | $ | (0.05 | ) | |||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic | 212,332,054 | 194,571,736 | 201,953,799 | 193,909,714 | ||||||||||||
Diluted
|
250,562,775 | 196,596,197 | 220,518,897 | 193,909,714 | ||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
147,812,786 | 147,812,786 | 147,812,786 | 147,812,786 | ||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
398,375,561 | 344,408,983 | 368,331,683 | 341,722,500 |
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS
|
(Unaudited)
|
|||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$ | 339,908 | $ | 406,785 | ||||
Restricted cash | 26,900 | 31,372 | ||||||
Trade and other receivables
|
10,724 | 11,525 | ||||||
Inventories: | ||||||||
Owned | 1,971,418 | 1,477,239 | ||||||
Not owned | 71,295 | 59,840 | ||||||
Investments in unconsolidated joint ventures
|
52,443 | 81,807 | ||||||
Deferred income taxes, net
|
455,372 | 5,326 | ||||||
Other assets | 41,918 | 35,693 | ||||||
Total Homebuilding Assets
|
2,969,978 | 2,109,587 | ||||||
Financial Services:
|
||||||||
Cash and equivalents
|
6,647 | 3,737 | ||||||
Restricted cash | 2,420 | 1,295 | ||||||
Mortgage loans held for sale, net
|
119,549 | 73,811 | ||||||
Mortgage loans held for investment, net
|
9,923 | 10,115 | ||||||
Other assets | 4,557 | 1,838 | ||||||
Total Financial Services Assets
|
143,096 | 90,796 | ||||||
Total Assets
|
$ | 3,113,074 | $ | 2,200,383 | ||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$ | 22,446 | $ | 17,829 | ||||
Accrued liabilities
|
198,144 | 185,890 | ||||||
Secured project debt and other notes payable
|
11,516 | 3,531 | ||||||
Senior notes payable
|
1,530,502 | 1,275,093 | ||||||
Senior subordinated notes payable
|
― | 46,324 | ||||||
Total Homebuilding Liabilities
|
1,762,608 | 1,528,667 | ||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
2,491 | 1,154 | ||||||
Mortgage credit facilities
|
92,159 | 46,808 | ||||||
Total Financial Services Liabilities
|
94,650 | 47,962 | ||||||
Total Liabilities
|
1,857,258 | 1,576,629 | ||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.01 par value; 10,000,000 shares
|
||||||||
authorized; 450,829 shares issued and outstanding
|
||||||||
at December 31, 2012 and 2011
|
5 | 5 | ||||||
Common stock, $0.01 par value; 600,000,000 shares
|
||||||||
authorized; 213,245,488 and 198,563,273 shares
|
||||||||
issued and outstanding at December 31, 2012 and
|
||||||||
2011, respectively
|
2,132 | 1,985 | ||||||
Additional paid-in capital
|
1,333,255 | 1,239,180 | ||||||
Accumulated deficit
|
(77,348 | ) | (608,769 | ) | ||||
Accumulated other comprehensive loss, net of tax
|
(2,228 | ) | (8,647 | ) | ||||
Total Equity
|
1,255,816 | 623,754 | ||||||
Total Liabilities and Equity
|
$ | 3,113,074 | $ | 2,200,383 |
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
Inventories Owned: | ||||||||
Land and land under development
|
$ | 1,444,161 | $ | 1,036,829 | ||||
Homes completed and under construction
|
427,196 | 339,849 | ||||||
Model homes
|
100,061 | 100,561 | ||||||
Total inventories owned
|
$ | 1,971,418 | $ | 1,477,239 | ||||
Inventories Owned by Segment:
|
||||||||
California
|
$ | 1,086,159 | $ | 890,300 | ||||
Southwest
|
461,201 | 302,686 | ||||||
Southeast
|
424,058 | 284,253 | ||||||
Total inventories owned
|
$ | 1,971,418 | $ | 1,477,239 |
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||
Net income (loss)
|
$ | 486,925 | $ | 15,333 | $ | 531,421 | $ | (16,417 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash
|
||||||||||||||||
provided by (used in) operating activities:
|
||||||||||||||||
Amortization of stock-based compensation
|
2,633 | 3,145 | 7,151 | 11,239 | ||||||||||||
Inventory impairment charges and deposit write-offs
|
― | 416 | 133 | 15,334 | ||||||||||||
Deferred income tax benefit
|
(454,000 | ) | ― | (454,000 | ) | ― | ||||||||||
Other operating activities
|
2,679 | (654 | ) | 8,517 | 3,247 | |||||||||||
Changes in cash and equivalents due to:
|
||||||||||||||||
Trade and other receivables
|
12,944 | 6,951 | 801 | (5,358 | ) | |||||||||||
Mortgage loans held for sale
|
(32,323 | ) | (23,924 | ) | (46,339 | ) | (43,661 | ) | ||||||||
Inventories - owned
|
(129,807 | ) | (20,670 | ) | (315,639 | ) | (282,447 | ) | ||||||||
Inventories - not owned
|
(20,861 | ) | (2,068 | ) | (31,551 | ) | (19,727 | ) | ||||||||
Other assets
|
1,696 | 6,525 | 2,618 | 6,212 | ||||||||||||
Accounts payable
|
5,988 | (4,776 | ) | 4,617 | 1,113 | |||||||||||
Accrued liabilities
|
12,146 | 7,686 | 9,155 | 7,852 | ||||||||||||
Net cash provided by (used in) operating activities
|
(111,980 | ) | (12,036 | ) | (283,116 | ) | (322,613 | ) | ||||||||
Cash Flows From Investing Activities:
|
||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(4,380 | ) | (3,385 | ) | (57,458 | ) | (14,689 | ) | ||||||||
Distributions of capital from unconsolidated joint ventures
|
2,590 | 807 | 14,530 | 8,593 | ||||||||||||
Net cash paid for acquisitions
|
― | ― | (60,752 | ) | ― | |||||||||||
Other investing activities
|
180 | (465 | ) | (1,525 | ) | (2,217 | ) | |||||||||
Net cash provided by (used in) investing activities
|
(1,610 | ) | (3,043 | ) | (105,205 | ) | (8,313 | ) | ||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||
Change in restricted cash
|
(1,687 | ) | 260 | 3,347 | (1,559 | ) | ||||||||||
Principal payments on secured project debt and other notes payable
|
(84 | ) | (368 | ) | (866 | ) | (1,207 | ) | ||||||||
Principal payments on senior subordinated notes payable
|
(39,613 | ) | ― | (49,603 | ) | ― | ||||||||||
Proceeds from the issuance of senior notes payable
|
― | ― | 253,000 | ― | ||||||||||||
Payment of debt issuance costs
|
(3,680 | ) | ― | (11,761 | ) | (4,575 | ) | |||||||||
Net proceeds from (payments on) mortgage credit facilities
|
21,124 | (5,720 | ) | 45,351 | 16,464 | |||||||||||
Proceeds from the issuance of common stock
|
― | ― | 75,849 | ― | ||||||||||||
Payment of common stock issuance costs
|
(88 | ) | ― | (4,002 | ) | (324 | ) | |||||||||
Proceeds from the exercise of stock options
|
4,717 | 80 | 13,039 | 1,278 | ||||||||||||
Net cash provided by (used in) financing activities
|
(19,311 | ) | (5,748 | ) | 324,354 | 10,077 | ||||||||||
Net increase (decrease) in cash and equivalents
|
(132,901 | ) | (20,827 | ) | (63,967 | ) | (320,849 | ) | ||||||||
Cash and equivalents at beginning of period
|
479,456 | 431,349 | 410,522 | 731,371 | ||||||||||||
Cash and equivalents at end of period
|
$ | 346,555 | $ | 410,522 | $ | 346,555 | $ | 410,522 | ||||||||
Cash and equivalents at end of period
|
$ | 346,555 | $ | 410,522 | $ | 346,555 | $ | 410,522 | ||||||||
Homebuilding restricted cash at end of period
|
26,900 | 31,372 | 26,900 | 31,372 | ||||||||||||
Financial services restricted cash at end of period
|
2,420 | 1,295 | 2,420 | 1,295 | ||||||||||||
Cash and equivalents and restricted cash at end of period
|
$ | 375,875 | $ | 443,189 | $ | 375,875 | $ | 443,189 |
Three Months Ended
December 31,
|
Year Ended
December 31,
|
||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
||||||||||
New homes delivered:
|
|||||||||||||||
California
|
400
|
279
|
43%
|
1,304
|
975
|
34%
|
|||||||||
Arizona
|
71
|
54
|
31%
|
247
|
169
|
46%
|
|||||||||
Texas
|
104
|
135
|
(23%)
|
472
|
420
|
12%
|
|||||||||
Colorado
|
34
|
28
|
21%
|
114
|
97
|
18%
|
|||||||||
Nevada
|
―
|
3
|
(100%)
|
9
|
15
|
(40%)
|
|||||||||
Florida
|
170
|
153
|
11%
|
581
|
446
|
30%
|
|||||||||
Carolinas
|
194
|
130
|
49%
|
564
|
406
|
39%
|
|||||||||
Consolidated total
|
973
|
782
|
24%
|
3,291
|
2,528
|
30%
|
|||||||||
Unconsolidated joint ventures
|
10
|
8
|
25%
|
38
|
35
|
9%
|
|||||||||
Total (including joint ventures)
|
983
|
790
|
24%
|
3,329
|
2,563
|
30%
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
||||||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||
Average selling prices of homes delivered:
|
|||||||||||||||||||
California
|
$
|
543
|
$
|
598
|
(9%)
|
$
|
506
|
$
|
519
|
(3%)
|
|||||||||
Arizona
|
231
|
197
|
17%
|
213
|
202
|
5%
|
|||||||||||||
Texas
|
354
|
297
|
19%
|
318
|
292
|
9%
|
|||||||||||||
Colorado
|
392
|
309
|
27%
|
388
|
308
|
26%
|
|||||||||||||
Nevada
|
―
|
173
|
―
|
192
|
190
|
1%
|
|||||||||||||
Florida
|
253
|
223
|
13%
|
247
|
208
|
19%
|
|||||||||||||
Carolinas
|
263
|
245
|
7%
|
247
|
231
|
7%
|
|||||||||||||
Consolidated
|
388
|
374
|
4%
|
362
|
349
|
4%
|
|||||||||||||
Unconsolidated joint ventures
|
446
|
350
|
27%
|
444
|
396
|
12%
|
|||||||||||||
Total (including joint ventures)
|
$
|
389
|
$
|
374
|
4%
|
$
|
363
|
$
|
350
|
4%
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
||||||||||
Net new orders:
|
|||||||||||||||
California
|
401
|
199
|
102%
|
1,570
|
1,030
|
52%
|
|||||||||
Arizona
|
30
|
54
|
(44%)
|
267
|
190
|
41%
|
|||||||||
Texas
|
103
|
94
|
10%
|
527
|
470
|
12%
|
|||||||||
Colorado
|
43
|
25
|
72%
|
156
|
100
|
56%
|
|||||||||
Nevada
|
―
|
3
|
(100%)
|
6
|
10
|
(40%)
|
|||||||||
Florida
|
217
|
130
|
67%
|
785
|
541
|
45%
|
|||||||||
Carolinas
|
189
|
110
|
72%
|
703
|
454
|
55%
|
|||||||||
Consolidated total
|
983
|
615
|
60%
|
4,014
|
2,795
|
44%
|
|||||||||
Unconsolidated joint ventures
|
5
|
10
|
(50%)
|
47
|
33
|
42%
|
|||||||||
Total (including joint ventures)
|
988
|
625
|
58%
|
4,061
|
2,828
|
44%
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
California
|
45
|
49
|
(8%)
|
49
|
49
|
―
|
|||||||||
Arizona
|
6
|
10
|
(40%)
|
7
|
9
|
(22%)
|
|||||||||
Texas
|
24
|
21
|
14%
|
21
|
21
|
―
|
|||||||||
Colorado
|
8
|
6
|
33%
|
7
|
5
|
40%
|
|||||||||
Nevada
|
―
|
1
|
(100%)
|
―
|
1
|
(100%)
|
|||||||||
Florida
|
33
|
40
|
(18%)
|
36
|
37
|
(3%)
|
|||||||||
Carolinas
|
34
|
33
|
3%
|
35
|
30
|
17%
|
|||||||||
Consolidated total
|
150
|
160
|
(6%)
|
155
|
152
|
2%
|
|||||||||
Unconsolidated joint ventures
|
1
|
3
|
(67%)
|
2
|
3
|
(33%)
|
|||||||||
Total (including joint ventures)
|
151
|
163
|
(7%)
|
157
|
155
|
1%
|
At December 31,
|
|||||||||||||||||||||
2012
|
2011
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
California
|
440
|
$
|
218,115
|
174
|
$
|
91,051
|
153%
|
140%
|
|||||||||||||
Arizona
|
77
|
19,178
|
57
|
11,598
|
35%
|
65%
|
|||||||||||||||
Texas
|
204
|
78,468
|
149
|
46,307
|
37%
|
69%
|
|||||||||||||||
Colorado
|
75
|
32,230
|
33
|
12,904
|
127%
|
150%
|
|||||||||||||||
Nevada
|
―
|
―
|
3
|
638
|
(100%)
|
(100%)
|
|||||||||||||||
Florida
|
366
|
95,264
|
162
|
42,360
|
126%
|
125%
|
|||||||||||||||
Carolinas
|
242
|
72,214
|
103
|
27,725
|
135%
|
160%
|
|||||||||||||||
Consolidated total
|
1,404
|
515,469
|
681
|
232,583
|
106%
|
122%
|
|||||||||||||||
Unconsolidated joint ventures
|
12
|
5,575
|
3
|
1,240
|
300%
|
350%
|
|||||||||||||||
Total (including joint ventures)
|
1,416
|
$
|
521,044
|
684
|
$
|
233,823
|
107%
|
123%
|
At December 31,
|
|||||||||
2012
|
2011
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
California
|
10,288
|
9,230
|
11%
|
||||||
Arizona
|
1,965
|
1,872
|
5%
|
||||||
Texas
|
5,129
|
4,232
|
21%
|
||||||
Colorado
|
792
|
690
|
15%
|
||||||
Nevada
|
1,124
|
1,133
|
(1%)
|
||||||
Florida
|
8,159
|
6,323
|
29%
|
||||||
Carolinas
|
3,310
|
2,964
|
12%
|
||||||
Total (including joint ventures)
|
30,767
|
26,444
|
16%
|
||||||
Homesites owned
|
25,475
|
20,035
|
27%
|
||||||
Homesites optioned or subject to contract
|
4,681
|
5,183
|
(10%)
|
||||||
Joint venture homesites
|
611
|
1,226
|
(50%)
|
||||||
Total (including joint ventures)
|
30,767
|
26,444
|
16%
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
5,522
|
3,824
|
44%
|
||||||
Homesites under development
|
9,357
|
4,760
|
97%
|
||||||
Finished homesites
|
5,178
|
5,831
|
(11%)
|
||||||
Under construction or completed homes
|
2,194
|
1,760
|
25%
|
||||||
Held for sale
|
3,224
|
3,860
|
(16%)
|
||||||
Total
|
25,475
|
20,035
|
27%
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
Three Months Ended
|
Year Ended
|
||||
December 31, 2012
|
December 31, 2012
|
||||
(Dollars in thousands, except per share amounts)
|
|||||
Net income
|
$
|
486,925
|
$
|
531,421
|
|
Less: Deferred tax asset valuation allowance reversal
|
(454,000)
|
(454,000)
|
|||
Adjusted net income
|
$
|
32,925
|
$
|
77,421
|
|
Diluted earnings per share
|
$
|
0.08
|
$
|
0.21
|
|
Total weighted average diluted common shares outstanding
|
|||||
if preferred shares converted to common
|
398,375,561
|
368,331,683
|
Three Months Ended
|
||||||||||||||
December 31,
2012
|
Gross
Margin %
|
December 31,
2011
|
Gross
Margin %
|
September 30,
2012
|
Gross
Margin %
|
|||||||||
(Dollars in thousands)
|
||||||||||||||
Home sale revenues
|
$
|
377,674
|
$
|
292,725
|
$
|
317,389
|
||||||||
Less: Cost of home sales
|
(299,105)
|
(232,960)
|
(253,344)
|
|||||||||||
Gross margin from home sales
|
78,569
|
20.8%
|
59,765
|
20.4%
|
64,045
|
20.2%
|
||||||||
Less: Benefit from warranty accrual adjustments
|
―
|
(2,900)
|
―
|
|||||||||||
Gross margin from home sales, excluding
|
||||||||||||||
warranty accrual adjustments
|
78,569
|
20.8%
|
56,865
|
19.4%
|
64,045
|
20.2%
|
||||||||
Add: Capitalized interest included in cost
|
||||||||||||||
of home sales
|
30,592
|
8.1%
|
23,557
|
8.1%
|
27,071
|
8.5%
|
||||||||
Gross margin from home sales, excluding
|
||||||||||||||
warranty accrual adjustments and interest
|
||||||||||||||
amortized to cost of home sales
|
$
|
109,161
|
28.9%
|
$
|
80,422
|
27.5%
|
$
|
91,116
|
28.7%
|
Year Ended December 31,
|
|||||||||
2012
|
Gross
Margin %
|
2011
|
Gross
Margin %
|
||||||
(Dollars in thousands)
|
|||||||||
Home sale revenues
|
$
|
1,190,252
|
$
|
882,094
|
|||||
Less: Cost of home sales
|
(946,630)
|
(719,893)
|
|||||||
Gross margin from home sales
|
243,622
|
20.5%
|
162,201
|
18.4%
|
|||||
Add: Inventory impairment charges
|
―
|
13,189
|
|||||||
Less: Benefit from warranty accrual adjustments
|
―
|
(2,900)
|
|||||||
Gross margin from home sales, excluding impairment
|
|
|
|
||||||
charges and warranty accrual adjustments | 243,622 |
20.5%
|
172,490 |
19.6%
|
|||||
Add: Capitalized interest included in cost of home sales
|
100,683
|
8.4%
|
69,421
|
7.8%
|
|||||
Gross margin from home sales, excluding impairment
|
|||||||||
charges, warranty accrual adjustments and interest | |||||||||
amortized to cost of home sales
|
$
|
344,305
|
28.9%
|
$
|
241,911
|
27.4%
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued)
|
Three Months Ended
|
Year Ended Decmber 31,
|
|||||||||||||
December 31,
2012
|
December 31,
2011
|
September 30,
2012
|
2012
|
2011
|
||||||||||
(Dollars in thousands)
|
||||||||||||||
Cash flows used in operations
|
$
|
(111,980)
|
$
|
(12,036)
|
$
|
(72,418)
|
$
|
(283,116)
|
$
|
(322,613)
|
||||
Add: Land purchases (excl. seller financing and JV purchases)
|
204,796
|
49,759
|
101,363
|
436,729
|
303,721
|
|||||||||
Add: Land development costs
|
62,806
|
36,587
|
39,422
|
168,520
|
133,358
|
|||||||||
Cash inflows from operations (excluding land purchases and
|
||||||||||||||
development costs)
|
$
|
155,622
|
$
|
74,310
|
$
|
68,367
|
$
|
322,133
|
$
|
114,466
|
At December 31,
|
|||||||
2012
|
2011
|
||||||
(Dollars in thousands)
|
|||||||
Total consolidated debt
|
$
|
1,634,177
|
$
|
1,371,756
|
|||
Less:
|
|||||||
Financial services indebtedness
|
(92,159)
|
(46,808)
|
|||||
Homebuilding cash
|
(366,808)
|
(438,157)
|
|||||
Adjusted net homebuilding debt
|
1,175,210
|
886,791
|
|||||
Stockholders' equity
|
1,255,816
|
623,754
|
|||||
Total adjusted book capitalization
|
$
|
2,431,026
|
$
|
1,510,545
|
|||
Total consolidated debt to book capitalization
|
56.5%
|
68.7%
|
|||||
Adjusted net homebuilding debt to total adjusted book capitalization
|
48.3%
|
58.7%
|
December 31,
|
December 31,
|
||||
2012
|
2011
|
||||
Actual common shares outstanding
|
213,245,488
|
198,563,273
|
|||
Add: Conversion of preferred shares to common shares
|
147,812,786
|
147,812,786
|
|||
Less: Common shares outstanding under share lending facility
|
―
|
(3,919,904)
|
|||
Pro forma common shares outstanding
|
361,058,274
|
342,456,155
|
|||
Stockholders' equity (Dollars in thousands)
|
$
|
1,255,816
|
$
|
623,754
|
|
Divided by pro forma common shares outstanding
|
÷
|
361,058,274
|
÷
|
342,456,155
|
|
Pro forma stockholders' equity per common share
|
$
|
3.48
|
$
|
1.82
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued)
|
Three Months Ended
|
Year Ended December 31,
|
|||||||||||||||
December 31,
2012
|
December 31,
2011
|
September 30,
2012
|
|
2012
|
|
2011
|
||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net income (loss)
|
$
|
486,925
|
$
|
15,333
|
$
|
21,710
|
$
|
531,421
|
$
|
(16,417)
|
||||||
Provision (benefit) for income taxes
|
(453,804)
|
(481)
|
194
|
(453,234)
|
(56)
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
34,364
|
26,616
|
28,747
|
110,298
|
94,804
|
|||||||||||
Homebuilding depreciation and amortization
|
617
|
631
|
590
|
2,372
|
2,644
|
|||||||||||
Amortization of stock-based compensation
|
2,633
|
3,145
|
1,559
|
7,151
|
11,239
|
|||||||||||
EBITDA
|
70,735
|
45,244
|
52,800
|
198,008
|
92,214
|
|||||||||||
Add:
|
||||||||||||||||
Cash distributions of income from unconsolidated joint ventures
|
2,625
|
―
|
1,125
|
3,910
|
20
|
|||||||||||
Impairment charges and deposit write-offs
|
―
|
416
|
―
|
133
|
15,334
|
|||||||||||
Less:
|
||||||||||||||||
Income (loss) from unconsolidated joint ventures
|
617
|
1,298
|
(39)
|
(2,090)
|
207
|
|||||||||||
Income (loss) from financial services subsidiary
|
3,941
|
1,553
|
2,441
|
10,238
|
1,506
|
|||||||||||
Adjusted Homebuilding EBITDA
|
$
|
68,802
|
$
|
42,809
|
$
|
51,523
|
$
|
193,903
|
$
|
105,855
|
||||||
Homebuilding revenues
|
$
|
419,843
|
$
|
293,156
|
$
|
318,541
|
$
|
1,236,958
|
$
|
882,993
|
||||||
Adjusted Homebuilding EBITDA Margin %
|
16.4%
|
14.6%
|
16.2%
|
15.7%
|
12.0%
|
Three Months Ended
|
Year Ended December 31,
|
|||||||||||||||
December 31,
2012
|
December 31,
2011
|
September 30,
2012
|
2012
|
2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(111,980)
|
$
|
(12,036)
|
$
|
(72,418)
|
$
|
(283,116)
|
$
|
(322,613)
|
||||||
Add:
|
||||||||||||||||
Provision (benefit) for income taxes
|
(453,804)
|
(481)
|
194
|
(453,234)
|
(56)
|
|||||||||||
Deferred income tax benefit
|
454,000
|
―
|
―
|
454,000
|
―
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
34,364
|
26,616
|
28,747
|
110,298
|
94,804
|
|||||||||||
Less:
|
||||||||||||||||
Income (loss) from financial services subsidiary
|
3,941
|
1,553
|
2,441
|
10,238
|
1,506
|
|||||||||||
Depreciation and amortization from financial services subsidiary
|
32
|
18
|
32
|
108
|
611
|
|||||||||||
(Gain) loss on disposal of property and equipment
|
22
|
(5)
|
12
|
37
|
179
|
|||||||||||
Net changes in operating assets and liabilities:
|
||||||||||||||||
Trade and other receivables
|
(12,944)
|
(6,951)
|
4,681
|
(801)
|
5,358
|
|||||||||||
Mortgage loans held for sale
|
32,323
|
23,924
|
18,119
|
46,339
|
43,661
|
|||||||||||
Inventories-owned
|
129,807
|
20,670
|
70,645
|
315,639
|
282,447
|
|||||||||||
Inventories-not owned
|
20,861
|
2,068
|
7,191
|
31,551
|
19,727
|
|||||||||||
Other assets
|
(1,696)
|
(6,525)
|
(999)
|
(2,618)
|
(6,212)
|
|||||||||||
Accounts payable and accrued liabilities
|
(18,134)
|
(2,910)
|
(2,152)
|
(13,772)
|
(8,965)
|
|||||||||||
Adjusted Homebuilding EBITDA
|
$
|
68,802
|
$
|
42,809
|
$
|
51,523
|
$
|
193,903
|
$
|
105,855
|