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 ended September 30, 2014.
|
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 ended September 30, 2014.
|
·
|
Net income of $56.6 million, or $0.14 per diluted share, vs. $58.9 million, or $0.15 per diluted share
|
·
|
Pretax income of $92.1 million, up 31%
|
·
|
Net new orders of 1,154, up 4%; Dollar value of net new orders up 11%
|
·
|
Backlog of 2,208 homes, up 2%; Dollar value of backlog up 17%
|
·
|
185 average active selling communities, up 10%
|
·
|
Home sale revenues of $603.8 million, up 18%
|
·
|
Average selling price of $483 thousand, up 15%
|
·
|
1,250 new home deliveries, up 3%
|
·
|
Gross margin from home sales of 26.3%, compared to 25.3%
|
·
|
Operating margin from home sales of $88.7 million, or 14.7%, compared to $67.4 million, or 13.2%
|
·
|
$251.2 million of land purchases and development costs, compared to $156.3 million
|
As of or For the Three Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
Percentage
|
June 30,
|
Percentage
|
||||||||||
2014
|
2013
|
or % Change
|
2014
|
or % Change
|
||||||||||
Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
1,250
|
1,217
|
3%
|
1,236
|
1%
|
|||||||||
Average selling price
|
$
|
483
|
$
|
420
|
15%
|
$
|
479
|
1%
|
||||||
Home sale revenues
|
$
|
603,788
|
$
|
511,059
|
18%
|
$
|
591,706
|
2%
|
||||||
Gross margin % (including land sales)
|
26.3%
|
25.3%
|
1.0%
|
26.7%
|
(0.4%)
|
|||||||||
Gross margin % from home sales
|
26.3%
|
25.3%
|
1.0%
|
26.6%
|
(0.3%)
|
|||||||||
Adjusted gross margin % from home sales (excluding interest amortized
|
||||||||||||||
to cost of home sales)*
|
31.1%
|
31.2%
|
(0.1%)
|
31.7%
|
(0.6%)
|
|||||||||
Incentive and stock-based compensation expense
|
$
|
7,527
|
$
|
8,023
|
(6%)
|
$
|
6,724
|
12%
|
||||||
Selling expenses
|
$
|
29,424
|
$
|
24,301
|
21%
|
$
|
28,782
|
2%
|
||||||
G&A expenses (excluding incentive and stock-based
|
||||||||||||||
compensation expenses)
|
$
|
33,213
|
$
|
29,615
|
12%
|
$
|
32,329
|
3%
|
||||||
SG&A expenses
|
$
|
70,164
|
$
|
61,939
|
13%
|
$
|
67,835
|
3%
|
||||||
SG&A % from home sales
|
11.6%
|
12.1%
|
(0.5%)
|
11.5%
|
0.1%
|
|||||||||
Operating margin from home sales
|
$
|
88,726
|
$
|
67,426
|
32%
|
$
|
89,675
|
(1%)
|
||||||
Operating margin % from home sales
|
14.7%
|
13.2%
|
1.5%
|
15.2%
|
(0.5%)
|
|||||||||
Net new orders (homes)
|
1,154
|
1,110
|
4%
|
1,524
|
(24%)
|
|||||||||
Net new orders (dollar value)
|
$
|
568,977
|
$
|
510,668
|
11%
|
$
|
713,347
|
(20%)
|
||||||
Average active selling communities
|
185
|
168
|
10%
|
183
|
1%
|
|||||||||
Monthly sales absorption rate per community
|
2.1
|
2.2
|
(6%)
|
2.8
|
(25%)
|
|||||||||
Cancellation rate
|
19%
|
20%
|
(1%)
|
14%
|
36%
|
|||||||||
Gross cancellations
|
278
|
272
|
2%
|
247
|
13%
|
|||||||||
Cancellations from current quarter sales
|
107
|
124
|
(14%)
|
93
|
15%
|
|||||||||
Backlog (homes)
|
2,208
|
2,165
|
2%
|
2,304
|
(4%)
|
|||||||||
Backlog (dollar value)
|
$
|
1,126,125
|
$
|
964,148
|
17%
|
$
|
1,138,886
|
(1%)
|
||||||
Cash flows (uses) from operating activities
|
$
|
(115,034)
|
$
|
22,808
|
$
|
(25,949)
|
(343%)
|
|||||||
Cash flows (uses) from investing activities
|
$
|
434
|
$
|
(2,296)
|
$
|
(36,050)
|
||||||||
Cash flows (uses) from financing activities
|
$
|
(7,271)
|
$
|
261,980
|
$
|
4,426
|
||||||||
Land purchases (incl. seller financing)
|
$
|
155,670
|
$
|
69,196
|
125%
|
$
|
113,001
|
38%
|
||||||
Adjusted Homebuilding EBITDA*
|
$
|
121,737
|
$
|
101,953
|
19%
|
$
|
125,730
|
(3%)
|
||||||
Adjusted Homebuilding EBITDA Margin %*
|
20.1%
|
19.9%
|
0.2%
|
21.2%
|
(1.1%)
|
|||||||||
Homebuilding interest incurred
|
$
|
37,308
|
$
|
34,766
|
7%
|
$
|
37,641
|
(1%)
|
||||||
Homebuilding interest capitalized to inventories owned
|
$
|
36,927
|
$
|
34,118
|
8%
|
$
|
37,228
|
(1%)
|
||||||
Homebuilding interest capitalized to investments in JVs
|
$
|
381
|
$
|
648
|
(41%)
|
$
|
413
|
(8%)
|
||||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
28,959
|
$
|
30,322
|
(4%)
|
$
|
29,816
|
(3%)
|
As of
|
|||||||||
September 30,
|
December 31,
|
Percentage
|
|||||||
2014
|
2013
|
or % Change
|
|||||||
Balance Sheet Data
|
(Dollars in thousands, except per share amounts)
|
||||||||
Homebuilding cash (including restricted cash)
|
$
|
52,322
|
$
|
376,949
|
(86%)
|
||||
Inventories owned
|
$
|
3,145,369
|
$
|
2,536,102
|
24%
|
||||
Homesites owned and controlled
|
36,307
|
35,175
|
3%
|
||||||
Homes under construction
|
2,550
|
2,001
|
27%
|
||||||
Completed specs
|
406
|
327
|
24%
|
||||||
Deferred tax asset valuation allowance
|
$
|
4,591
|
$
|
4,591
|
―
|
||||
Homebuilding debt
|
$
|
1,835,314
|
$
|
1,839,595
|
(0%)
|
||||
Stockholders' equity
|
$
|
1,634,664
|
$
|
1,468,960
|
11%
|
||||
Adjusted stockholders' equity per share (including if-converted
|
|||||||||
preferred stock)*
|
$
|
4.45
|
$
|
4.02
|
11%
|
||||
Total consolidated debt to book capitalization
|
53.8%
|
56.9%
|
(3.1%)
|
||||||
Adjusted net homebuilding debt to total adjusted
|
|||||||||
book capitalization*
|
52.2%
|
49.9%
|
2.3%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
603,788
|
$
|
511,059
|
$
|
1,642,412
|
$
|
1,300,493
|
||||||||
Land sale revenues
|
1,061
|
697
|
15,122
|
7,665
|
||||||||||||
Total revenues
|
604,849
|
511,756
|
1,657,534
|
1,308,158
|
||||||||||||
Cost of home sales
|
(444,898
|
)
|
(381,694
|
)
|
(1,207,339
|
)
|
(993,809
|
)
|
||||||||
Cost of land sales
|
(891
|
)
|
(672
|
)
|
(14,245
|
)
|
(7,671
|
)
|
||||||||
Total cost of sales
|
(445,789
|
)
|
(382,366
|
)
|
(1,221,584
|
)
|
(1,001,480
|
)
|
||||||||
Gross margin
|
159,060
|
129,390
|
435,950
|
306,678
|
||||||||||||
Gross margin %
|
26.3
|
%
|
25.3
|
%
|
26.3
|
%
|
23.4
|
%
|
||||||||
Selling, general and administrative expenses
|
(70,164
|
)
|
(61,939
|
)
|
(196,589
|
)
|
(162,831
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
557
|
(32
|
)
|
(342
|
)
|
1,249
|
||||||||||
Other income (expense)
|
(69
|
)
|
301
|
(445
|
)
|
2,624
|
||||||||||
Homebuilding pretax income
|
89,384
|
67,720
|
238,574
|
147,720
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
6,179
|
5,839
|
17,275
|
18,927
|
||||||||||||
Expenses
|
(3,673
|
)
|
(3,590
|
)
|
(10,873
|
)
|
(10,394
|
)
|
||||||||
Other income
|
231
|
167
|
606
|
420
|
||||||||||||
Financial services pretax income
|
2,737
|
2,416
|
7,008
|
8,953
|
||||||||||||
Income before taxes
|
92,121
|
70,136
|
245,582
|
156,673
|
||||||||||||
Provision for income taxes
|
(35,522
|
)
|
(11,201
|
)
|
(94,361
|
)
|
(32,778
|
)
|
||||||||
Net income
|
56,599
|
58,935
|
151,221
|
123,895
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
(13,511
|
)
|
(14,166
|
)
|
(36,165
|
)
|
(40,353
|
)
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(77
|
)
|
(90
|
)
|
(211
|
)
|
(169
|
)
|
||||||||
Net income available to common stockholders
|
$
|
43,011
|
$
|
44,679
|
$
|
114,845
|
$
|
83,373
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic | $ |
0.15
|
$ |
0.16
|
$ |
0.41
|
$ |
0.34
|
||||||||
Diluted
|
$
|
0.14
|
$
|
0.15
|
$
|
0.37
|
$
|
0.31
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic |
279,547,711
|
276,966,995
|
278,863,014
|
244,998,581
|
||||||||||||
Diluted
|
317,116,924
|
314,897,098
|
316,691,803
|
283,189,878
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
87,812,786
|
87,812,786
|
87,812,786
|
118,582,017
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
404,929,710
|
402,709,884
|
404,504,589
|
401,771,895
|
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS
|
(Unaudited)
|
|||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
15,295
|
$
|
355,489
|
||||
Restricted cash |
37,027
|
21,460
|
||||||
Trade and other receivables
|
30,910
|
14,431
|
||||||
Inventories: | ||||||||
Owned |
3,145,369
|
2,536,102
|
||||||
Not owned |
86,791
|
98,341
|
||||||
Investments in unconsolidated joint ventures
|
47,922
|
66,054
|
||||||
Deferred income taxes, net
|
285,540
|
375,400
|
||||||
Other assets |
44,977
|
45,977
|
||||||
Total Homebuilding Assets
|
3,693,831
|
3,513,254
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
10,373
|
7,802
|
||||||
Restricted cash |
1,295
|
1,295
|
||||||
Mortgage loans held for sale, net
|
68,746
|
122,031
|
||||||
Mortgage loans held for investment, net
|
11,730
|
12,220
|
||||||
Other assets |
7,095
|
5,503
|
||||||
Total Financial Services Assets
|
99,239
|
148,851
|
||||||
Total Assets
|
$
|
3,793,070
|
$
|
3,662,105
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
51,297
|
$
|
35,771
|
||||
Accrued liabilities |
204,678
|
214,266
|
||||||
Secured project debt and other notes payable
|
4,748
|
6,351
|
||||||
Senior notes payable
|
1,830,566
|
1,833,244
|
||||||
Total Homebuilding Liabilities
|
2,091,289
|
2,089,632
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
2,419
|
2,646
|
||||||
Mortgage credit facilities
|
64,698
|
100,867
|
||||||
Total Financial Services Liabilities
|
67,117
|
103,513
|
||||||
Total Liabilities
|
2,158,406
|
2,193,145
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.01 par value; 10,000,000 shares
|
||||||||
authorized; 267,829 shares issued and outstanding
|
||||||||
at September 30, 2014 and December 31, 2013
|
3
|
3
|
||||||
Common stock, $0.01 par value; 600,000,000 shares
|
||||||||
authorized; 279,866,166 and 277,618,177 shares
|
||||||||
issued and outstanding at September 30, 2014 and
|
||||||||
December 31, 2013, respectively
|
2,799
|
2,776
|
||||||
Additional paid-in capital
|
1,369,274
|
1,354,814
|
||||||
Accumulated earnings
|
262,588
|
111,367
|
||||||
Total Equity
|
1,634,664
|
1,468,960
|
||||||
Total Liabilities and Equity
|
$
|
3,793,070
|
$
|
3,662,105
|
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Dollars in thousands)
|
||||||||
|
(Unaudited)
|
|||||||
Inventories Owned:
|
||||||||
Land and land under development
|
$
|
2,048,167
|
$
|
1,771,661
|
||||
Homes completed and under construction
|
940,448
|
628,371
|
||||||
Model homes
|
156,754
|
136,070
|
||||||
Total inventories owned
|
$
|
3,145,369
|
$
|
2,536,102
|
||||
Inventories Owned by Segment:
|
||||||||
California
|
$
|
1,373,645
|
$
|
1,182,520
|
||||
Southwest
|
788,886
|
603,303
|
||||||
Southeast
|
982,838
|
750,279
|
||||||
Total inventories owned
|
$
|
3,145,369
|
$
|
2,536,102
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||
Net income
|
$
|
56,599
|
$
|
58,935
|
$
|
151,221
|
$
|
123,895
|
||||||||
Adjustments to reconcile net income to net cash
|
||||||||||||||||
provided by (used in) operating activities:
|
||||||||||||||||
Amortization of stock-based compensation
|
2,505
|
2,681
|
7,736
|
6,656
|
||||||||||||
Excess tax benefits from share-based payment arrangements | (960 | ) |
―
|
(960 | ) |
―
|
||||||||||
Deferred income tax provision
|
35,469
|
27,306
|
94,474
|
48,489
|
||||||||||||
Other operating activities
|
698
|
1,096
|
5,909
|
4,592
|
||||||||||||
Changes in cash and equivalents due to:
|
||||||||||||||||
Trade and other receivables
|
(5,464
|
)
|
11,186
|
(16,597
|
)
|
(8,462
|
)
|
|||||||||
Mortgage loans held for sale
|
10,534
|
32,221
|
53,108
|
44,179
|
||||||||||||
Inventories - owned
|
(231,567
|
)
|
(84,352
|
)
|
(547,590
|
)
|
(314,375
|
)
|
||||||||
Inventories - not owned
|
(5,090
|
)
|
(21,990
|
)
|
(19,884
|
)
|
(31,700
|
)
|
||||||||
Other assets
|
3,927
|
1,655
|
1,952
|
|
401
|
|||||||||||
Accounts payable
|
8,604
|
7,235
|
14,753
|
6,855
|
||||||||||||
Accrued liabilities
|
9,711
|
(13,165
|
)
|
(2,668
|
)
|
(6,926
|
)
|
|||||||||
Net cash provided by (used in) operating activities
|
(115,034
|
)
|
22,808
|
(258,546
|
)
|
(126,396
|
)
|
|||||||||
Cash Flows From Investing Activities:
|
||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(2,271
|
)
|
(2,190
|
)
|
(7,948
|
)
|
(12,942
|
)
|
||||||||
Distributions of capital from unconsolidated joint ventures
|
3,202
|
750
|
18,010
|
2,319
|
||||||||||||
Net cash paid for acquisitions
|
―
|
―
|
(33,408
|
)
|
(113,793
|
)
|
||||||||||
Other investing activities
|
(497
|
)
|
(856
|
)
|
(1,984
|
)
|
(4,734
|
)
|
||||||||
Net cash provided by (used in) investing activities
|
434
|
(2,296
|
)
|
(25,330
|
)
|
(129,150
|
)
|
|||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||
Change in restricted cash
|
(5,642
|
)
|
(2,062
|
)
|
(15,567
|
)
|
1
|
|||||||||
Principal payments on secured project debt and other notes payable
|
(338
|
)
|
(72
|
)
|
(1,399
|
)
|
(7,289
|
)
|
||||||||
Principal payments on senior notes payable
|
―
|
―
|
(4,971
|
)
|
―
|
|||||||||||
Proceeds from the issuance of senior notes payable
|
―
|
300,000
|
―
|
300,000
|
||||||||||||
Payment of debt issuance costs
|
(2,387
|
) |
(4,045
|
)
|
(2,387
|
) |
(4,045
|
)
|
||||||||
Net proceeds from (payments on) mortgage credit facilities
|
(1,881
|
)
|
(32,784
|
)
|
(36,169
|
)
|
(27,979
|
)
|
||||||||
Payment of issuance costs in connection with preferred
|
||||||||||||||||
shareholder equity transaction
|
―
|
(3
|
)
|
―
|
(350
|
)
|
||||||||||
Proceeds from the exercise of stock options
|
2,017
|
946
|
5,786
|
11,781
|
||||||||||||
Excess tax benefits from share-based payment arrangements | 960 |
―
|
960 |
―
|
||||||||||||
Net cash provided by (used in) financing activities
|
(7,271
|
)
|
261,980
|
(53,747
|
)
|
272,119
|
||||||||||
Net increase (decrease) in cash and equivalents
|
(121,871
|
)
|
282,492
|
(337,623
|
)
|
16,573
|
||||||||||
Cash and equivalents at beginning of period
|
147,539
|
80,636
|
363,291
|
346,555
|
||||||||||||
Cash and equivalents at end of period
|
$
|
25,668
|
$
|
363,128
|
$
|
25,668
|
$
|
363,128
|
||||||||
Cash and equivalents at end of period
|
$
|
25,668
|
$
|
363,128
|
$
|
25,668
|
$
|
363,128
|
||||||||
Homebuilding restricted cash at end of period
|
37,027
|
27,524
|
37,027
|
27,524
|
||||||||||||
Financial services restricted cash at end of period
|
1,295
|
1,795
|
1,295
|
1,795
|
||||||||||||
Cash and equivalents and restricted cash at end of period
|
$
|
63,990
|
$
|
392,447
|
$
|
63,990
|
$
|
392,447
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2014
|
2013
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
California
|
|
437
|
$
|
640
|
|
467
|
$
|
586
|
|
(6%)
|
|
9%
|
|||||||||
Arizona
|
69
|
362
|
51
|
286
|
35%
|
27%
|
|||||||||||||||
Texas
|
225
|
468
|
170
|
385
|
32%
|
22%
|
|||||||||||||||
Colorado
|
47
|
504
|
36
|
484
|
31%
|
4%
|
|||||||||||||||
Southwest
|
|
341
|
|
451
|
|
257
|
|
379
|
|
33%
|
|
19%
|
|||||||||
Florida
|
266
|
385
|
285
|
283
|
(7%)
|
36%
|
|||||||||||||||
Carolinas
|
206
|
329
|
208
|
284
|
(1%)
|
16%
|
|||||||||||||||
Southeast
|
|
472
|
|
360
|
|
493
|
|
284
|
|
(4%)
|
|
27%
|
|||||||||
Consolidated total
|
1,250
|
483
|
1,217
|
420
|
3%
|
15%
|
|||||||||||||||
Unconsolidated joint ventures
|
―
|
―
|
2
|
578
|
(100%)
|
―
|
|||||||||||||||
Total (including joint ventures)
|
|
1,250
|
$
|
483
|
|
1,219
|
$
|
420
|
|
3%
|
|
15%
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2014
|
2013
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
California
|
|
1,215
|
$
|
643
|
|
1,286
|
$
|
541
|
|
(6%)
|
|
19%
|
|||||||||
Arizona
|
192
|
327
|
171
|
260
|
12%
|
26%
|
|||||||||||||||
Texas
|
553
|
453
|
458
|
379
|
21%
|
20%
|
|||||||||||||||
Colorado
|
158
|
500
|
117
|
439
|
35%
|
14%
|
|||||||||||||||
Southwest
|
|
903
|
|
434
|
|
746
|
|
361
|
|
21%
|
|
20%
|
|||||||||
Florida
|
766
|
368
|
707
|
269
|
8%
|
37%
|
|||||||||||||||
Carolinas
|
597
|
312
|
520
|
279
|
15%
|
12%
|
|||||||||||||||
Southeast
|
|
1,363
|
|
344
|
|
1,227
|
|
273
|
|
11%
|
|
26%
|
|||||||||
Consolidated total
|
3,481
|
472
|
3,259
|
399
|
7%
|
18%
|
|||||||||||||||
Unconsolidated joint ventures
|
―
|
―
|
23
|
505
|
(100%)
|
―
|
|||||||||||||||
Total (including joint ventures)
|
|
3,481
|
$
|
472
|
|
3,282
|
$
|
400
|
|
6%
|
|
18%
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2014
|
2013
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
California
|
|
399
|
$
|
645
|
|
386
|
$
|
630
|
|
3%
|
|
2%
|
|||||||||
Arizona
|
64
|
325
|
95
|
291
|
(33%)
|
12%
|
|||||||||||||||
Texas
|
206
|
472
|
154
|
423
|
34%
|
12%
|
|||||||||||||||
Colorado
|
39
|
521
|
29
|
499
|
34%
|
4%
|
|||||||||||||||
Southwest
|
|
309
|
|
448
|
|
278
|
|
386
|
|
11%
|
|
16%
|
|||||||||
Florida
|
243
|
428
|
274
|
389
|
(11%)
|
10%
|
|||||||||||||||
Carolinas
|
203
|
341
|
172
|
311
|
18%
|
10%
|
|||||||||||||||
Southeast
|
|
446
|
|
388
|
|
446
|
|
359
|
|
―
|
|
8%
|
|||||||||
Consolidated total
|
1,154
|
493
|
1,110
|
460
|
4%
|
7%
|
|||||||||||||||
Unconsolidated joint ventures
|
―
|
―
|
2
|
585
|
(100%)
|
―
|
|||||||||||||||
Total (including joint ventures)
|
|
1,154
|
$
|
493
|
|
1,112
|
$
|
460
|
|
4%
|
|
7%
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2014
|
2013
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
California
|
|
1,370
|
$
|
633
|
|
1,381
|
$
|
582
|
|
(1%)
|
|
9%
|
|||||||||
Arizona
|
206
|
313
|
248
|
298
|
(17%)
|
5%
|
|||||||||||||||
Texas
|
800
|
454
|
612
|
403
|
31%
|
13%
|
|||||||||||||||
Colorado
|
167
|
510
|
156
|
452
|
7%
|
13%
|
|||||||||||||||
Southwest
|
|
1,173
|
|
437
|
|
1,016
|
|
385
|
|
15%
|
|
14%
|
|||||||||
Florida
|
784
|
413
|
1,010
|
336
|
(22%)
|
23%
|
|||||||||||||||
Carolinas
|
662
|
320
|
613
|
283
|
8%
|
13%
|
|||||||||||||||
Southeast
|
|
1,446
|
|
371
|
|
1,623
|
|
316
|
|
(11%)
|
|
17%
|
|||||||||
Consolidated total
|
3,989
|
480
|
4,020
|
425
|
(1%)
|
13%
|
|||||||||||||||
Unconsolidated joint ventures
|
―
|
―
|
12
|
546
|
(100%)
|
―
|
|||||||||||||||
Total (including joint ventures)
|
|
3,989
|
$
|
480
|
|
4,032
|
$
|
425
|
|
(1%)
|
|
13%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
California
|
48
|
48
|
―
|
47
|
46
|
2%
|
|||||||||
Arizona
|
10
|
10
|
―
|
10
|
9
|
11%
|
|||||||||
Texas
|
42
|
30
|
40%
|
39
|
30
|
30%
|
|||||||||
Colorado
|
11
|
8
|
38%
|
11
|
7
|
57%
|
|||||||||
Southwest
|
63
|
48
|
31%
|
60
|
46
|
30%
|
|||||||||
Florida
|
47
|
41
|
15%
|
44
|
40
|
10%
|
|||||||||
Carolinas
|
27
|
31
|
(13%)
|
30
|
31
|
(3%)
|
|||||||||
Southeast
|
74
|
72
|
3%
|
74
|
71
|
4%
|
|||||||||
Consolidated total
|
185
|
168
|
10%
|
181
|
163
|
11%
|
At September 30,
|
|||||||||||||||||||||
2014
|
2013
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
California
|
|
551
|
$
|
362,388
|
|
535
|
$
|
341,743
|
|
3%
|
|
6%
|
|||||||||
Arizona
|
119
|
40,433
|
154
|
50,512
|
(23%)
|
(20%)
|
|||||||||||||||
Texas
|
537
|
258,724
|
358
|
158,863
|
50%
|
63%
|
|||||||||||||||
Colorado
|
117
|
65,634
|
114
|
56,528
|
3%
|
16%
|
|||||||||||||||
Southwest
|
|
773
|
|
364,791
|
|
626
|
|
265,903
|
|
23%
|
|
37%
|
|||||||||
Florida
|
522
|
270,797
|
669
|
250,241
|
(22%)
|
8%
|
|||||||||||||||
Carolinas
|
362
|
128,149
|
335
|
106,261
|
8%
|
21%
|
|||||||||||||||
Southeast
|
|
884
|
|
398,946
|
|
1,004
|
|
356,502
|
|
(12%)
|
|
12%
|
|||||||||
Consolidated total
|
2,208
|
1,126,125
|
2,165
|
964,148
|
2%
|
17%
|
|||||||||||||||
Unconsolidated joint ventures
|
―
|
―
|
1
|
599
|
(100%)
|
(100%)
|
|||||||||||||||
Total (including joint ventures)
|
|
2,208
|
$
|
1,126,125
|
|
2,166
|
$
|
964,747
|
|
2%
|
|
17%
|
At September 30,
|
|||||||||
2014
|
2013
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
California
|
9,881
|
9,979
|
(1%)
|
||||||
Arizona
|
2,173
|
2,291
|
(5%)
|
||||||
Texas
|
4,986
|
4,468
|
12%
|
||||||
Colorado
|
1,182
|
1,216
|
(3%)
|
||||||
Nevada
|
1,124
|
1,124
|
―
|
||||||
Southwest
|
9,465
|
9,099
|
4%
|
||||||
Florida
|
12,683
|
11,409
|
11%
|
||||||
Carolinas
|
4,278
|
5,156
|
(17%)
|
||||||
Southeast
|
16,961
|
16,565
|
2%
|
||||||
Total (including joint ventures)
|
36,307
|
35,643
|
2%
|
||||||
Homesites owned
|
28,937
|
26,936
|
7%
|
||||||
Homesites optioned or subject to contract
|
7,172
|
8,192
|
(12%)
|
||||||
Joint venture homesites
|
198
|
515
|
(62%)
|
||||||
Total (including joint ventures)
|
36,307
|
35,643
|
2%
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
6,745
|
6,101
|
11%
|
||||||
Homesites under development
|
9,379
|
8,549
|
10%
|
||||||
Finished homesites
|
6,448
|
6,871
|
(6%)
|
||||||
Under construction or completed homes
|
3,594
|
3,061
|
17%
|
||||||
Held for sale
|
2,771
|
2,354
|
18%
|
||||||
Total
|
28,937
|
26,936
|
7%
|
Three Months Ended
|
||||||||||||||
September 30,
2014 |
Gross
Margin % |
September 30,
2013 |
Gross
Margin % |
June 30,
2014 |
Gross
Margin % |
|||||||||
(Dollars in thousands)
|
||||||||||||||
Home sale revenues
|
$
|
603,788
|
$
|
511,059
|
$
|
591,706
|
||||||||
Less: Cost of home sales
|
|
(444,898)
|
|
(381,694)
|
|
(434,196)
|
||||||||
Gross margin from home sales
|
158,890
|
26.3%
|
129,365
|
25.3%
|
157,510
|
26.6%
|
||||||||
Add: Capitalized interest included in cost
|
||||||||||||||
of home sales
|
|
28,872
|
4.8%
|
|
30,303
|
5.9%
|
|
29,812
|
5.1%
|
|||||
Adjusted gross margin from home sales, excluding
|
||||||||||||||
interest amortized to cost of home sales
|
$
|
187,762
|
31.1%
|
$
|
159,668
|
31.2%
|
$
|
187,322
|
31.7%
|
September 30,
2014 |
June 30,
2014 |
December 31,
2013 |
September 30,
2013 |
||||||||||
(Dollars in thousands)
|
|||||||||||||
Total consolidated debt
|
$
|
1,900,012
|
$
|
1,901,416
|
$
|
1,940,462
|
$
|
1,901,802
|
|||||
Less:
|
|||||||||||||
Financial services indebtedness
|
(64,698)
|
(66,579)
|
(100,867)
|
(64,180)
|
|||||||||
Homebuilding cash
|
(52,322)
|
(161,121)
|
(376,949)
|
(373,523)
|
|||||||||
Adjusted net homebuilding debt
|
|
1,782,992
|
|
1,673,716
|
|
1,462,646
|
|
1,464,099
|
|||||
Stockholders' equity
|
|
1,634,664
|
|
1,572,583
|
|
1,468,960
|
|
1,400,026
|
|||||
Total adjusted book capitalization
|
$
|
3,417,656
|
$
|
3,246,299
|
$
|
2,931,606
|
$
|
2,864,125
|
|||||
Total consolidated debt to book capitalization
|
|
53.8%
|
|
54.7%
|
|
56.9%
|
|
57.6%
|
|||||
Adjusted net homebuilding debt to total adjusted book capitalization
|
|
52.2%
|
|
51.6%
|
|
49.9%
|
|
51.1%
|
|||||
Homebuilding debt
|
$
|
1,835,314
|
$
|
1,837,622
|
|||||||||
LTM adjusted homebuilding EBITDA
|
|
471,944
|
|
316,954
|
|||||||||
Homebuilding debt to adjusted homebuilding EBITDA
|
|
3.9x
|
|
5.8x
|
September 30,
|
June 30,
|
December 31,
|
||||||
2014
|
2014
|
2013
|
||||||
Actual common shares outstanding
|
279,866,166
|
279,287,853
|
277,618,177
|
|||||
Add: Conversion of preferred shares to common shares
|
87,812,786
|
87,812,786
|
87,812,786
|
|||||
Pro forma common shares outstanding
|
|
367,678,952
|
|
367,100,639
|
|
365,430,963
|
||
Stockholders' equity (Dollars in thousands)
|
$
|
1,634,664
|
$
|
1,572,583
|
$
|
1,468,960
|
||
Divided by pro forma common shares outstanding
|
÷
|
367,678,952
|
÷
|
367,100,639
|
÷
|
365,430,963
|
||
Adjusted stockholders' equity per common share
|
$
|
4.45
|
$
|
4.28
|
$
|
4.02
|
Three Months Ended
|
LTM Ended September 30,
|
|||||||||||||||
September 30,
2014 |
September 30,
2013 |
June 30,
2014 |
2014
|
2013
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net income
|
$
|
56,599
|
$
|
58,935
|
$
|
56,463
|
$
|
216,041
|
$
|
610,820
|
||||||
Provision (benefit) for income taxes
|
35,522
|
11,201
|
35,383
|
130,566
|
(421,026)
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
28,959
|
30,322
|
29,816
|
116,667
|
123,233
|
|||||||||||
Homebuilding depreciation and amortization
|
1,215
|
1,031
|
1,224
|
4,678
|
2,978
|
|||||||||||
Amortization of stock-based compensation
|
|
2,505
|
|
2,681
|
|
2,859
|
|
10,095
|
|
9,289
|
||||||
EBITDA
|
124,800
|
104,170
|
125,745
|
478,047
|
325,294
|
|||||||||||
Add:
|
||||||||||||||||
Cash distributions of income from unconsolidated joint ventures
|
―
|
―
|
1,875
|
1,875
|
6,000
|
|||||||||||
Less:
|
||||||||||||||||
Income (loss) from unconsolidated joint ventures
|
557
|
(32)
|
(462)
|
(642)
|
1,866
|
|||||||||||
Income from financial services subsidiary
|
|
2,506
|
|
2,249
|
|
2,352
|
|
8,620
|
|
12,474
|
||||||
Adjusted Homebuilding EBITDA
|
$
|
121,737
|
$
|
101,953
|
$
|
125,730
|
$
|
471,944
|
$
|
316,954
|
||||||
Homebuilding revenues
|
$
|
604,849
|
$
|
511,756
|
$
|
592,486
|
$
|
2,263,985
|
$
|
1,728,001
|
||||||
Adjusted Homebuilding EBITDA Margin %
|
|
20.1%
|
|
19.9%
|
|
21.2%
|
|
20.8%
|
|
18.3%
|
Three Months Ended
|
LTM Ended September 30,
|
|||||||||||||||
September 30,
2014 |
September 30,
2013 |
June 30,
2014 |
2014
|
2013
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(115,034)
|
$
|
22,808
|
$
|
(25,949)
|
$
|
(286,366)
|
$
|
(238,376)
|
||||||
Add:
|
||||||||||||||||
Provision (benefit) for income taxes
|
35,522
|
11,201
|
35,383
|
130,566
|
(421,026)
|
|||||||||||
Deferred income tax benefit (provision)
|
(35,469)
|
(27,306)
|
(35,383)
|
(130,199)
|
405,511
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
28,959
|
30,322
|
29,816
|
116,667
|
123,233
|
|||||||||||
Excess tax benefits from share-based payment arrangements | 960 | ― | ― | 960 | ― | |||||||||||
Less:
|
||||||||||||||||
Income from financial services subsidiary
|
2,506
|
2,249
|
2,352
|
8,620
|
12,474
|
|||||||||||
Depreciation and amortization from financial services subsidiary
|
35
|
33
|
34
|
134
|
121
|
|||||||||||
Loss on disposal of property and equipment
|
5
|
―
|
―
|
7
|
38
|
|||||||||||
Net changes in operating assets and liabilities:
|
||||||||||||||||
Trade and other receivables
|
5,464
|
(11,186)
|
(6,416)
|
11,379
|
(4,482)
|
|||||||||||
Mortgage loans held for sale
|
(10,534)
|
(32,221)
|
9,364
|
(6,386)
|
(11,856)
|
|||||||||||
Inventories-owned
|
231,567
|
84,352
|
127,264
|
648,527
|
444,182
|
|||||||||||
Inventories-not owned
|
5,090
|
21,990
|
6,629
|
31,503
|
52,561
|
|||||||||||
Other assets
|
(3,927)
|
(1,655)
|
1,142
|
(2,516)
|
(2,097)
|
|||||||||||
Accounts payable
|
(8,604)
|
(7,235)
|
(4,773)
|
(21,223)
|
(12,843)
|
|||||||||||
Accrued liabilities
|
(9,711)
|
13,165
|
(8,961)
|
(12,207)
|
(5,220)
|
|||||||||||
Adjusted Homebuilding EBITDA
|
$
|
121,737
|
$
|
101,953
|
$
|
125,730
|
$
|
471,944
|
$
|
316,954
|
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