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)
|
x
|
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, 2015.
|
CALATLANTIC GROUP, INC.
|
|
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, 2015.
|
·
|
Net new orders of 1,326, up 15%; Dollar value of net new orders up 35%
|
·
|
Backlog of 2,733 homes, up 24%; Dollar value of backlog up 47%
|
·
|
215 average active selling communities, up 16%
|
·
|
1,165 new home deliveries, down 7%
|
·
|
Average selling price of $537 thousand, up 11%
|
·
|
Home sale revenues of $626.0 million, up 4%
|
·
|
Gross margin from home sales of 25.3%, compared to 26.3%
|
·
|
Operating margin from home sales of $85.4 million, or 13.6%, compared to $88.7 million, or 14.7%
|
·
|
Net income of $47.2 million, or $0.59 per diluted share, vs. net income of $56.6 million, or $0.70 per diluted share
|
o
|
Results include $11.2 million of transaction related costs
|
·
|
$262.2 million of land purchases and development costs, compared to $251.2 million
|
As of or For the Three Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
Percentage
|
June 30,
|
Percentage
|
||||||||||
2015
|
2014
|
or % Change
|
2015
|
or % Change
|
||||||||||
Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
1,165
|
1,250
|
(7%)
|
1,305
|
(11%)
|
|||||||||
Average selling price
|
$
|
537
|
$
|
483
|
11%
|
$
|
532
|
1%
|
||||||
Home sale revenues
|
$
|
626,008
|
$
|
603,788
|
4%
|
$
|
694,678
|
(10%)
|
||||||
Gross margin % (including land sales)
|
24.5%
|
26.3%
|
(1.8%)
|
24.6%
|
(0.1%)
|
|||||||||
Gross margin % from home sales
|
25.3%
|
26.3%
|
(1.0%)
|
24.6%
|
0.7%
|
|||||||||
Adjusted gross margin % from home sales (excluding interest
|
||||||||||||||
amortized to cost of home sales)*
|
30.2%
|
31.1%
|
(0.9%)
|
29.6%
|
0.6%
|
|||||||||
Incentive and stock-based compensation expense
|
$
|
5,932
|
$
|
7,527
|
(21%)
|
$
|
6,520
|
(9%)
|
||||||
Selling expenses
|
$
|
32,687
|
$
|
29,424
|
11%
|
$
|
35,873
|
(9%)
|
||||||
G&A expenses (excluding incentive and stock-based
|
||||||||||||||
compensation expenses)
|
$
|
34,641
|
$
|
33,213
|
4%
|
$
|
37,517
|
(8%)
|
||||||
SG&A expenses
|
$
|
73,260
|
$
|
70,164
|
4%
|
$
|
79,910
|
(8%)
|
||||||
SG&A % from home sales
|
11.7%
|
11.6%
|
0.1%
|
11.5%
|
0.2%
|
|||||||||
Operating margin from home sales
|
$
|
85,390
|
$
|
88,726
|
(4%)
|
$
|
90,835
|
(6%)
|
||||||
Operating margin % from home sales
|
13.6%
|
14.7%
|
(1.1%)
|
13.1%
|
0.5%
|
|||||||||
Net new orders
|
1,326
|
1,154
|
15%
|
1,567
|
(15%)
|
|||||||||
Net new orders (dollar value)
|
$
|
768,557
|
$
|
568,977
|
35%
|
$
|
857,747
|
(10%)
|
||||||
Average active selling communities
|
215
|
185
|
16%
|
203
|
6%
|
|||||||||
Monthly sales absorption rate per community
|
2.1
|
2.1
|
(2%)
|
2.6
|
(20%)
|
|||||||||
Cancellation rate
|
19%
|
19%
|
0%
|
15%
|
4%
|
|||||||||
Gross cancellations
|
302
|
278
|
9%
|
268
|
13%
|
|||||||||
Cancellations from current quarter sales
|
119
|
107
|
11%
|
118
|
1%
|
|||||||||
Backlog (homes)
|
2,733
|
2,208
|
24%
|
2,572
|
6%
|
|||||||||
Backlog (dollar value)
|
$
|
1,655,496
|
$
|
1,126,125
|
47%
|
$
|
1,484,544
|
12%
|
||||||
Cash flows (uses) from operating activities
|
$
|
(104,633)
|
$
|
(115,034)
|
9%
|
$
|
(17,126)
|
(511%)
|
||||||
Cash flows (uses) from investing activities
|
$
|
(60,675)
|
$
|
434
|
$
|
(16,156)
|
(276%)
|
|||||||
Cash flows (uses) from financing activities
|
$
|
203,717
|
$
|
(7,271)
|
$
|
17,997
|
1,032%
|
|||||||
Land purchases (incl. seller financing)
|
$
|
125,982
|
$
|
155,670
|
(19%)
|
$
|
98,627
|
28%
|
||||||
Adjusted Homebuilding EBITDA*
|
$
|
119,553
|
$
|
127,371
|
(6%)
|
$
|
135,263
|
(12%)
|
||||||
Adjusted Homebuilding EBITDA Margin %*
|
18.3%
|
21.1%
|
(2.8%)
|
19.3%
|
(1.0%)
|
|||||||||
Homebuilding interest incurred
|
$
|
42,304
|
$
|
37,308
|
13%
|
$
|
41,857
|
1%
|
||||||
Homebuilding interest capitalized to inventories owned
|
$
|
41,611
|
$
|
36,927
|
13%
|
$
|
41,508
|
0%
|
||||||
Homebuilding interest capitalized to investments in JVs
|
$
|
693
|
$
|
381
|
82%
|
$
|
349
|
99%
|
||||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
33,323
|
$
|
28,959
|
15%
|
$
|
36,563
|
(9%)
|
As of
|
|||||||||
September 30,
|
December 31,
|
Percentage
|
|||||||
2015
|
2014
|
or % Change
|
|||||||
Balance Sheet Data
|
(Dollars in thousands, except per share amounts)
|
||||||||
Homebuilding cash (including restricted cash)
|
$
|
135,279
|
$
|
218,650
|
(38%)
|
||||
Inventories owned
|
$
|
3,805,453
|
$
|
3,255,204
|
17%
|
||||
Homesites owned and controlled
|
35,515
|
35,430
|
0%
|
||||||
Homes under construction
|
3,252
|
2,032
|
60%
|
||||||
Completed specs
|
377
|
515
|
(27%)
|
||||||
Deferred tax asset valuation allowance
|
$
|
1,115
|
$
|
2,561
|
(56%)
|
||||
Homebuilding debt
|
$
|
2,378,767
|
$
|
2,136,082
|
11%
|
||||
Stockholders' equity
|
$
|
1,807,327
|
$
|
1,676,688
|
8%
|
||||
Adjusted stockholders' equity per share (reverse split adjusted,
|
|||||||||
including if-converted preferred stock)*
|
$
|
24.76
|
$
|
23.10
|
7%
|
||||
Total consolidated debt to book capitalization
|
57.6%
|
57.0%
|
0.6%
|
||||||
Adjusted net homebuilding debt to total adjusted
|
|||||||||
book capitalization*
|
55.4%
|
53.3%
|
2.1%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
626,008
|
$
|
603,788
|
$
|
1,789,065
|
$
|
1,642,412
|
||||||||
Land sale revenues
|
26,182
|
1,061
|
33,035
|
15,122
|
||||||||||||
Total revenues
|
652,190
|
604,849
|
1,822,100
|
1,657,534
|
||||||||||||
Cost of home sales
|
(467,358
|
)
|
(444,898
|
)
|
(1,346,108
|
)
|
(1,207,339
|
)
|
||||||||
Cost of land sales
|
(25,076
|
)
|
(891
|
)
|
(30,190
|
)
|
(14,245
|
)
|
||||||||
Total cost of sales
|
(492,434
|
)
|
(445,789
|
)
|
(1,376,298
|
)
|
(1,221,584
|
)
|
||||||||
Gross margin
|
159,756
|
159,060
|
445,802
|
435,950
|
||||||||||||
Gross margin %
|
24.5
|
%
|
26.3
|
%
|
24.5
|
%
|
26.3
|
%
|
||||||||
Selling, general and administrative expenses
|
(73,260
|
)
|
(70,164
|
)
|
(219,240
|
)
|
(196,589
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
121
|
557
|
(381
|
)
|
(342
|
)
|
||||||||||
Other income (expense)
|
(11,170
|
)
|
(69
|
)
|
(16,742
|
)
|
(445
|
)
|
||||||||
Homebuilding pretax income
|
75,447
|
89,384
|
209,439
|
238,574
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
6,130
|
6,179
|
17,765
|
17,275
|
||||||||||||
Expenses
|
(4,079
|
)
|
(3,673
|
)
|
(12,626
|
)
|
(10,873
|
)
|
||||||||
Other income
|
796
|
231
|
1,734
|
606
|
||||||||||||
Financial services pretax income
|
2,847
|
2,737
|
6,873
|
7,008
|
||||||||||||
Income before taxes
|
78,294
|
92,121
|
216,312
|
245,582
|
||||||||||||
Provision for income taxes
|
(31,117
|
)
|
(35,522
|
)
|
(80,332
|
)
|
(94,361
|
)
|
||||||||
Net income
|
47,177
|
56,599
|
135,980
|
151,221
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
(11,342
|
)
|
(13,511
|
)
|
(32,818
|
)
|
(36,165
|
)
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(93
|
)
|
(77
|
)
|
(274
|
)
|
(211
|
)
|
||||||||
Net income available to common stockholders
|
$
|
35,742
|
$
|
43,011
|
$
|
102,888
|
$
|
114,845
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic | $ |
0.65
|
$ |
0.77
|
$ |
1.87
|
$ |
2.06
|
||||||||
Diluted
|
$
|
0.59
|
$
|
0.70
|
$
|
1.71
|
$
|
1.87
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic |
55,345,443
|
55,909,542
|
55,059,683
|
55,772,603
|
||||||||||||
Diluted
|
62,292,524
|
63,423,385
|
62,152,754
|
63,338,361
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
17,562,557
|
17,562,557
|
17,562,557
|
17,562,557
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
79,855,081
|
80,985,942
|
79,715,311
|
80,900,918
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS
|
(Unaudited)
|
|||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
97,854
|
$
|
180,428
|
||||
Restricted cash |
37,425
|
38,222
|
||||||
Inventories: | ||||||||
Owned |
3,805,453
|
3,255,204
|
||||||
Not owned |
47,333
|
85,153
|
||||||
Investments in unconsolidated joint ventures
|
121,937
|
50,111
|
||||||
Deferred income taxes, net
|
255,297
|
276,402
|
||||||
Other assets |
52,074
|
61,597
|
||||||
Total Homebuilding Assets
|
4,417,373
|
3,947,117
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
28,868
|
31,965
|
||||||
Restricted cash |
1,045
|
1,295
|
||||||
Mortgage loans held for sale, net
|
86,064
|
174,420
|
||||||
Mortgage loans held for investment, net
|
22,087
|
14,380
|
||||||
Other assets |
5,772
|
5,243
|
||||||
Total Financial Services Assets
|
143,836
|
227,303
|
||||||
Total Assets
|
$
|
4,561,209
|
$
|
4,174,420
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
82,754
|
$
|
45,085
|
||||
Accrued liabilities |
209,872
|
223,783
|
||||||
Revolving credit facility
|
268,700
|
―
|
||||||
Secured project debt and other notes payable
|
5,855
|
4,689
|
||||||
Senior notes payable
|
2,104,212
|
2,131,393
|
||||||
Total Homebuilding Liabilities
|
2,671,393
|
2,404,950
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
3,630
|
3,369
|
||||||
Mortgage credit facilities
|
78,859
|
89,413
|
||||||
Total Financial Services Liabilities
|
82,489
|
92,782
|
||||||
Total Liabilities
|
2,753,882
|
2,497,732
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.01 par value; 10,000,000 shares
|
||||||||
authorized; 53,565 shares issued and outstanding
|
||||||||
at September 30, 2015 and December 31, 2014
|
1
|
1
|
||||||
Common stock, $0.01 par value; 600,000,000 shares
|
||||||||
authorized; 55,444,065 and 55,028,238 shares
|
||||||||
issued and outstanding at September 30, 2015 and
|
||||||||
December 31, 2014, respectively
|
554
|
550
|
||||||
Additional paid-in capital
|
1,343,560
|
1,348,905
|
||||||
Accumulated earnings
|
463,212
|
327,232
|
||||||
Total Equity
|
1,807,327
|
1,676,688
|
||||||
Total Liabilities and Equity
|
$
|
4,561,209
|
$
|
4,174,420
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
|
(Unaudited)
|
|||||||
Inventories Owned: | ||||||||
Land and land under development
|
$
|
2,261,197
|
$
|
2,248,289
|
||||
Homes completed and under construction
|
1,299,611
|
827,612
|
||||||
Model homes
|
244,645
|
179,303
|
||||||
Total inventories owned
|
$
|
3,805,453
|
$
|
3,255,204
|
||||
Inventories Owned by Segment:
|
||||||||
Southeast
|
$
|
1,264,823
|
$
|
1,033,401
|
||||
Southwest
|
646,429
|
598,856
|
||||||
West
|
1,894,201
|
1,622,947
|
||||||
Total inventories owned
|
$
|
3,805,453
|
$
|
3,255,204
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||
Net income
|
$
|
47,177
|
$
|
56,599
|
$
|
135,980
|
$
|
151,221
|
||||||||
Adjustments to reconcile net income to net cash
|
||||||||||||||||
provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
7,387
|
6,884
|
22,369
|
18,908
|
||||||||||||
Amortization of stock-based compensation
|
3,536
|
2,505
|
8,620
|
7,736
|
||||||||||||
Excess tax benefits from share-based payment arrangements
|
(2,210
|
)
|
(960
|
)
|
(8,573
|
)
|
(960
|
)
|
||||||||
Deferred income tax provision
|
2,934
|
35,469
|
52,132
|
94,474
|
||||||||||||
Other operating activities
|
(114
|
)
|
(552
|
)
|
1,014
|
2,223
|
||||||||||
Changes in cash and equivalents due to:
|
||||||||||||||||
Mortgage loans held for sale
|
23,178
|
10,534
|
88,360
|
53,108
|
||||||||||||
Inventories - owned
|
(179,752
|
)
|
(237,201
|
)
|
(521,646
|
)
|
(562,812
|
)
|
||||||||
Inventories - not owned
|
(9,551
|
)
|
(5,090
|
)
|
(21,612
|
)
|
(19,884
|
)
|
||||||||
Other assets
|
2,985
|
(1,537
|
)
|
8,862
|
(14,645
|
)
|
||||||||||
Accounts payable
|
3,035
|
8,604
|
37,669
|
14,753
|
||||||||||||
Accrued liabilities
|
(3,238
|
)
|
9,711
|
(19,005
|
)
|
(2,668
|
)
|
|||||||||
Net cash provided by (used in) operating activities
|
(104,633
|
)
|
(115,034
|
)
|
(215,830
|
)
|
(258,546
|
)
|
||||||||
Cash Flows From Investing Activities:
|
||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(62,510
|
)
|
(2,271
|
)
|
(83,288
|
)
|
(7,948
|
)
|
||||||||
Distributions of capital from unconsolidated joint ventures
|
1,529
|
3,202
|
10,289
|
18,010
|
||||||||||||
Net cash paid for acquisitions
|
―
|
―
|
―
|
(33,408
|
)
|
|||||||||||
Other investing activities
|
306
|
(497
|
)
|
(11,716
|
)
|
(1,984
|
)
|
|||||||||
Net cash provided by (used in) investing activities
|
(60,675
|
)
|
434
|
(84,715
|
)
|
(25,330
|
)
|
|||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||
Change in restricted cash
|
2,289
|
(5,642
|
)
|
1,047
|
(15,567
|
)
|
||||||||||
Borrowings from revolving credit facility
|
332,500
|
―
|
491,400
|
―
|
||||||||||||
Principal payments on revolving credit facility
|
(93,800
|
)
|
―
|
(222,700
|
)
|
―
|
||||||||||
Principal payments on secured project debt and other notes payable
|
(72
|
)
|
(338
|
)
|
(569
|
)
|
(1,399
|
)
|
||||||||
Principal payments on senior notes payable
|
(29,789
|
)
|
―
|
(29,789
|
)
|
(4,971
|
)
|
|||||||||
Payment of debt issuance costs
|
―
|
(2,387
|
)
|
―
|
(2,387
|
)
|
||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
(11,482
|
)
|
(1,881
|
)
|
(10,554
|
)
|
(36,169
|
)
|
||||||||
Repurchases of common stock
|
―
|
―
|
(22,073
|
)
|
―
|
|||||||||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
1,861
|
2,017
|
(461
|
)
|
5,786
|
|||||||||||
Excess tax benefits from share-based payment arrangements
|
2,210
|
960
|
8,573
|
960
|
||||||||||||
Net cash provided by (used in) financing activities
|
203,717
|
(7,271
|
)
|
214,874
|
(53,747
|
)
|
||||||||||
Net increase (decrease) in cash and equivalents
|
38,409
|
(121,871
|
)
|
(85,671
|
)
|
(337,623
|
)
|
|||||||||
Cash and equivalents at beginning of period
|
88,313
|
147,539
|
212,393
|
363,291
|
||||||||||||
Cash and equivalents at end of period
|
$
|
126,722
|
$
|
25,668
|
$
|
126,722
|
$
|
25,668
|
||||||||
Cash and equivalents at end of period
|
$
|
126,722
|
$
|
25,668
|
$
|
126,722
|
$
|
25,668
|
||||||||
Homebuilding restricted cash at end of period
|
37,425
|
37,027
|
37,425
|
37,027
|
||||||||||||
Financial services restricted cash at end of period
|
1,045
|
1,295
|
1,045
|
1,295
|
||||||||||||
Cash and equivalents and restricted cash at end of period
|
$
|
165,192
|
$
|
63,990
|
$
|
165,192
|
$
|
63,990
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
Southeast
|
467
|
$
|
437
|
472
|
$
|
360
|
(1%)
|
21%
|
|||||||||||||
Southwest
|
282
|
552
|
272
|
474
|
4%
|
16%
|
|||||||||||||||
West
|
|
416
|
|
641
|
|
506
|
|
602
|
|
(18%)
|
|
6%
|
|||||||||
Consolidated total
|
|
1,165
|
$
|
537
|
|
1,250
|
$
|
483
|
|
(7%)
|
|
11%
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
Southeast
|
1,328
|
$
|
411
|
1,363
|
$
|
344
|
(3%)
|
19%
|
|||||||||||||
Southwest
|
858
|
533
|
711
|
463
|
21%
|
15%
|
|||||||||||||||
West
|
|
1,256
|
|
625
|
|
1,407
|
|
600
|
|
(11%)
|
|
4%
|
|||||||||
Consolidated total
|
|
3,442
|
$
|
520
|
|
3,481
|
$
|
472
|
|
(1%)
|
|
10%
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
Southeast
|
429
|
$
|
463
|
446
|
$
|
388
|
(4%)
|
19%
|
|||||||||||||
Southwest
|
325
|
559
|
245
|
480
|
33%
|
16%
|
|||||||||||||||
West
|
|
572
|
|
679
|
|
463
|
|
601
|
|
24%
|
|
13%
|
|||||||||
Consolidated total
|
|
1,326
|
$
|
580
|
|
1,154
|
$
|
493
|
|
15%
|
|
18%
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
Southeast
|
1,511
|
$
|
442
|
1,446
|
$
|
371
|
4%
|
19%
|
|||||||||||||
Southwest
|
1,123
|
523
|
967
|
463
|
16%
|
13%
|
|||||||||||||||
West
|
1,830
|
656
|
1,576
|
591
|
16%
|
11%
|
|||||||||||||||
Consolidated total
|
|
4,464
|
$
|
550
|
|
3,989
|
$
|
480
|
|
12%
|
|
15%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
Southeast
|
96
|
74
|
30%
|
88
|
74
|
19%
|
|||||||||
Southwest
|
54
|
53
|
2%
|
54
|
50
|
8%
|
|||||||||
West
|
65
|
58
|
12%
|
63
|
57
|
11%
|
|||||||||
Consolidated total
|
215
|
185
|
16%
|
205
|
181
|
13%
|
At September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
Southeast
|
954
|
$
|
511,449
|
884
|
$
|
398,946
|
8%
|
28%
|
|||||||||||||
Southwest
|
811
|
438,753
|
654
|
324,358
|
24%
|
35%
|
|||||||||||||||
West
|
|
968
|
|
705,294
|
|
670
|
|
402,821
|
|
44%
|
|
75%
|
|||||||||
Consolidated total
|
|
2,733
|
$
|
1,655,496
|
|
2,208
|
$
|
1,126,125
|
|
24%
|
|
47%
|
At September 30,
|
|||||||||
2015
|
2014
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
Southeast
|
16,098
|
16,961
|
(5%)
|
||||||
Southwest
|
6,537
|
7,292
|
(10%)
|
||||||
West
|
12,880
|
12,054
|
7%
|
||||||
Total (including joint ventures)
|
35,515
|
36,307
|
(2%)
|
||||||
Homesites owned
|
28,343
|
28,937
|
(2%)
|
||||||
Homesites optioned or subject to contract
|
5,792
|
7,172
|
(19%)
|
||||||
Joint venture homesites
|
1,380
|
198
|
597%
|
||||||
Total (including joint ventures)
|
35,515
|
36,307
|
(2%)
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
6,916
|
6,745
|
15%
|
||||||
Homesites under development
|
7,717
|
9,379
|
(18%)
|
||||||
Finished homesites
|
7,674
|
6,448
|
6%
|
||||||
Under construction or completed homes
|
4,323
|
3,594
|
20%
|
||||||
Held for sale
|
1,713
|
2,771
|
(38%)
|
||||||
Total
|
28,343
|
28,937
|
(2%)
|
Three Months Ended
|
||||||||||||||
September 30,
2015 |
Gross
Margin % |
September 30,
2014 |
Gross
Margin % |
June 30,
2015 |
Gross
Margin % |
|||||||||
(Dollars in thousands)
|
||||||||||||||
Home sale revenues
|
$
|
626,008
|
$
|
603,788
|
$
|
694,678
|
||||||||
Less: Cost of home sales
|
|
(467,358)
|
|
(444,898)
|
|
(523,933)
|
||||||||
Gross margin from home sales
|
158,650
|
25.3%
|
158,890
|
26.3%
|
170,745
|
24.6%
|
||||||||
Add: Capitalized interest included in cost
|
||||||||||||||
of home sales
|
|
30,275
|
4.9%
|
|
28,872
|
4.8%
|
|
35,051
|
5.0%
|
|||||
Adjusted gross margin from home sales, excluding
|
||||||||||||||
interest amortized to cost of home sales
|
$
|
188,925
|
30.2%
|
$
|
187,762
|
31.1%
|
$
|
205,796
|
29.6%
|
September 30,
2015 |
June 30,
2015 |
December 31,
2014 |
September 30,
2014 |
||||||||||
(Dollars in thousands)
|
|||||||||||||
Total consolidated debt
|
$
|
2,457,626
|
$
|
2,259,379
|
$
|
2,225,495
|
$
|
1,900,012
|
|||||
Less:
|
|||||||||||||
Financial services indebtedness
|
(78,859)
|
(90,341)
|
(89,413)
|
(64,698)
|
|||||||||
Homebuilding cash
|
(135,279)
|
(116,802)
|
(218,650)
|
(52,322)
|
|||||||||
Adjusted net homebuilding debt
|
|
2,243,488
|
|
2,052,236
|
|
1,917,432
|
|
1,782,992
|
|||||
Stockholders' equity
|
|
1,807,327
|
|
1,752,543
|
|
1,676,688
|
|
1,634,664
|
|||||
Total adjusted book capitalization
|
$
|
4,050,815
|
$
|
3,804,779
|
$
|
3,594,120
|
$
|
3,417,656
|
|||||
Total consolidated debt to book capitalization
|
|
57.6%
|
|
56.3%
|
|
57.0%
|
|
53.8%
|
|||||
Adjusted net homebuilding debt to total adjusted book capitalization
|
|
55.4%
|
|
53.9%
|
|
53.3%
|
|
52.2%
|
|||||
Homebuilding debt
|
$
|
2,378,767
|
$
|
1,835,314
|
|||||||||
LTM adjusted homebuilding EBITDA
|
$
|
484,570
|
$
|
492,922
|
|||||||||
Homebuilding debt to adjusted homebuilding EBITDA
|
|
4.9x
|
|
3.7x
|
September 30,
|
December 31,
|
||||
2015
|
2014
|
||||
Actual common shares outstanding (reverse-split adjusted)
|
55,444,065
|
55,028,238
|
|||
Add: Conversion of preferred shares to common shares (reverse-split adjusted)
|
17,562,557
|
17,562,557
|
|||
Pro forma common shares outstanding (reverse-split adjusted)
|
|
73,006,622
|
|
72,590,795
|
|
Stockholders' equity (Dollars in thousands)
|
$
|
1,807,327
|
$
|
1,676,688
|
|
Divided by pro forma common shares outstanding (reverse-split adjusted)
|
÷
|
73,006,622
|
÷
|
72,590,795
|
|
Adjusted stockholders' equity per common share (reverse-split adjusted)
|
$
|
24.76
|
$
|
23.10
|
Three Months Ended
|
LTM Ended September 30,
|
|||||||||||||||
September 30,
2015 |
September 30,
2014 |
June 30,
2015 |
2015
|
2014
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net income
|
$
|
47,177
|
$
|
56,599
|
$
|
57,198
|
$
|
200,624
|
$
|
216,041
|
||||||
Provision for income taxes
|
31,117
|
35,522
|
32,324
|
120,070
|
130,566
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
33,323
|
28,959
|
36,563
|
131,878
|
116,667
|
|||||||||||
Homebuilding depreciation and amortization
|
7,368
|
6,849
|
8,964
|
30,691
|
25,656
|
|||||||||||
Amortization of stock-based compensation
|
|
3,536
|
|
2,505
|
|
2,389
|
|
9,353
|
|
10,095
|
||||||
EBITDA
|
122,521
|
130,434
|
137,438
|
492,616
|
499,025
|
|||||||||||
Add:
|
||||||||||||||||
Cash distributions of income from unconsolidated joint ventures
|
―
|
―
|
592
|
592
|
1,875
|
|||||||||||
Less:
|
||||||||||||||||
Income (loss) from unconsolidated joint ventures
|
121
|
557
|
(51)
|
(707)
|
(642)
|
|||||||||||
Income from financial services subsidiaries
|
|
2,847
|
|
2,506
|
|
2,818
|
|
9,345
|
|
8,620
|
||||||
Adjusted Homebuilding EBITDA
|
$
|
119,553
|
$
|
127,371
|
$
|
135,263
|
$
|
484,570
|
$
|
492,922
|
||||||
Homebuilding revenues
|
$
|
652,190
|
$
|
604,849
|
$
|
699,632
|
$
|
2,575,744
|
$
|
2,263,985
|
||||||
Adjusted Homebuilding EBITDA Margin %
|
|
18.3%
|
|
21.1%
|
|
19.3%
|
|
18.8%
|
|
21.8%
|
Three Months Ended
|
LTM Ended September 30,
|
||||||||||||||||
September 30,
2015 |
September 30,
2014 |
June 30,
2015 |
2015
|
2014
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(104,633)
|
$
|
(115,034)
|
$
|
(17,126)
|
$
|
(319,681)
|
$
|
(286,366)
|
|||||||
Add:
|
|||||||||||||||||
Provision for income taxes, net of deferred component
|
28,183
|
53
|
―
|
63,414
|
367
|
||||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
33,323
|
28,959
|
36,563
|
131,878
|
116,667
|
||||||||||||
Excess tax benefits from share-based payment arrangements
|
2,210
|
960
|
2,994
|
21,017
|
960
|
||||||||||||
Less:
|
|||||||||||||||||
Income from financial services subsidiaries
|
2,847
|
2,506
|
2,818
|
9,345
|
8,620
|
||||||||||||
Depreciation and amortization from financial services subsidiaries
|
19
|
35
|
25
|
117
|
134
|
||||||||||||
Loss on disposal of property and equipment
|
7
|
5
|
15
|
46
|
7
|
||||||||||||
Net changes in operating assets and liabilities:
|
|||||||||||||||||
Mortgage loans held for sale
|
(23,178)
|
(10,534)
|
10,542
|
17,586
|
(6,386)
|
||||||||||||
Inventories-owned
|
179,752
|
237,201
|
137,351
|
623,261
|
669,505
|
||||||||||||
Inventories-not owned
|
9,551
|
5,090
|
6,183
|
34,755
|
31,503
|
||||||||||||
Other assets
|
(2,985)
|
1,537
|
(12,809)
|
(28,036)
|
8,863
|
||||||||||||
Accounts payable
|
(3,035)
|
(8,604)
|
(21,155)
|
(32,230)
|
(21,223)
|
||||||||||||
Accrued liabilities
|
3,238
|
(9,711)
|
(4,422)
|
(17,886)
|
(12,207)
|
||||||||||||
Adjusted Homebuilding EBITDA
|
$
|
119,553
|
$
|
127,371
|
$
|
135,263
|
$
|
484,570
|
$
|
492,922
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
768
|
$
|
339
|
731
|
$
|
330
|
5%
|
3%
|
|||||||||||||
Southeast
|
509
|
300
|
478
|
278
|
6%
|
8%
|
|||||||||||||||
Southwest
|
575
|
341
|
656
|
319
|
(12%)
|
7%
|
|||||||||||||||
West
|
|
194
|
|
434
|
|
153
|
|
548
|
|
27%
|
|
(21%)
|
|||||||||
Consolidated total
|
|
2,046
|
$
|
339
|
|
2,018
|
$
|
331
|
|
1%
|
|
2%
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
1,940
|
$
|
340
|
1,821
|
$
|
330
|
7%
|
3%
|
|||||||||||||
Southeast
|
1,261
|
292
|
1,218
|
269
|
4%
|
9%
|
|||||||||||||||
Southwest
|
1,661
|
342
|
1,760
|
321
|
(6%)
|
7%
|
|||||||||||||||
West
|
|
461
|
|
507
|
|
389
|
|
566
|
|
19%
|
|
(10%)
|
|||||||||
Consolidated total
|
|
5,323
|
$
|
344
|
|
5,188
|
$
|
330
|
|
3%
|
|
4%
|
Three Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
636
|
$
|
337
|
607
|
$
|
343
|
5%
|
(2%)
|
|||||||||||||
Southeast
|
476
|
298
|
376
|
304
|
27%
|
(2%)
|
|||||||||||||||
Southwest
|
601
|
356
|
567
|
334
|
6%
|
7%
|
|||||||||||||||
West
|
|
199
|
|
375
|
|
157
|
|
516
|
|
27%
|
|
(27%)
|
|||||||||
Consolidated total
|
|
1,912
|
$
|
337
|
|
1,707
|
$
|
347
|
|
12%
|
|
(3%)
|
Nine Months Ended September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
2,201
|
$
|
336
|
2,171
|
$
|
338
|
1%
|
(1%)
|
|||||||||||||
Southeast
|
1,634
|
293
|
1,384
|
288
|
18%
|
2%
|
|||||||||||||||
Southwest
|
2,191
|
355
|
2,044
|
329
|
7%
|
8%
|
|||||||||||||||
West
|
662
|
416
|
522
|
537
|
27%
|
(23%)
|
|||||||||||||||
Consolidated total
|
|
6,688
|
$
|
340
|
|
6,121
|
$
|
340
|
|
9%
|
|
―
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
North
|
118
|
116
|
2%
|
116
|
107
|
8%
|
|||||||||
Southeast
|
81
|
81
|
―
|
83
|
79
|
5%
|
|||||||||
Southwest
|
131
|
101
|
30%
|
128
|
101
|
27%
|
|||||||||
West
|
22
|
16
|
38%
|
21
|
17
|
24%
|
|||||||||
Consolidated total
|
352
|
314
|
12%
|
348
|
304
|
14%
|
At September 30,
|
|||||||||||||||||||||
2015
|
2014
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
North
|
1,234
|
$
|
417,931
|
1,370
|
$
|
469,382
|
(10%)
|
(11%)
|
|||||||||||||
Southeast
|
979
|
293,907
|
780
|
232,914
|
26%
|
26%
|
|||||||||||||||
Southwest
|
1,409
|
518,638
|
1,164
|
393,450
|
21%
|
32%
|
|||||||||||||||
West
|
|
352
|
|
128,985
|
|
245
|
|
128,667
|
|
44%
|
|
0%
|
|||||||||
Consolidated total
|
|
3,974
|
$
|
1,359,461
|
|
3,559
|
$
|
1,224,413
|
|
12%
|
|
11%
|
At September 30,
|
|||||||||
2015
|
2014
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
North
|
16,848
|
16,199
|
4%
|
||||||
Southeast
|
10,597
|
10,944
|
(3%)
|
||||||
Southwest
|
10,686
|
12,130
|
(12%)
|
||||||
West
|
2,114
|
2,208
|
(4%)
|
||||||
Total (including joint ventures)
|
40,245
|
41,481
|
(3%)
|
||||||
Homesites owned
|
25,671
|
25,983
|
(1%)
|
||||||
Homesites optioned or subject to contract
|
13,968
|
14,872
|
(6%)
|
||||||
Joint venture homesites
|
606
|
626
|
(3%)
|
||||||
Total (including joint ventures)
|
40,245
|
41,481
|
(3%)
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
3,418
|
3,116
|
10%
|
||||||
Homesites under development
|
15,218
|
16,082
|
(5%)
|
||||||
Finished homesites
|
1,063
|
989
|
7%
|
||||||
Under construction or completed homes
|
5,877
|
5,334
|
10%
|
||||||
Held for sale
|
95
|
462
|
(79%)
|
||||||
Total
|
25,671
|
25,983
|
(1%)
|
Q3 2015
|
Q2 2015
|
Q1 2015
|
Q4 2014
|
Q3 2014
|
Q2 2014
|
Q1 2014
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||||||
New homes delivered:
|
|||||||||||||||||
North
|
768
|
650
|
522
|
890
|
731
|
574
|
516
|
||||||||||
Southeast
|
509
|
425
|
327
|
575
|
478
|
386
|
354
|
||||||||||
Southwest
|
575
|
582
|
504
|
817
|
656
|
596
|
508
|
||||||||||
West
|
194
|
157
|
110
|
207
|
153
|
144
|
92
|
||||||||||
Consolidated total
|
2,046
|
1,814
|
1,463
|
2,489
|
2,018
|
1,700
|
1,470
|
||||||||||
Average selling price (deliveries):
|
|||||||||||||||||
North
|
$339
|
$339
|
$345
|
$335
|
$330
|
$337
|
$322
|
||||||||||
Southeast
|
300
|
291
|
281
|
286
|
278
|
261
|
264
|
||||||||||
Southwest
|
341
|
353
|
332
|
327
|
319
|
325
|
319
|
||||||||||
West
|
434
|
555
|
566
|
541
|
548
|
539
|
638
|
||||||||||
Consolidated total
|
$339
|
$351
|
$343
|
$338
|
$331
|
$333
|
$327
|
||||||||||
Net new orders:
|
|||||||||||||||||
North
|
636
|
747
|
818
|
493
|
607
|
820
|
744
|
||||||||||
Southeast
|
476
|
579
|
579
|
402
|
376
|
507
|
501
|
||||||||||
Southwest
|
601
|
837
|
753
|
533
|
567
|
724
|
753
|
||||||||||
West
|
199
|
224
|
239
|
119
|
157
|
177
|
188
|
||||||||||
Consolidated total
|
1,912
|
2,387
|
2,389
|
1,547
|
1,707
|
2,228
|
2,186
|
||||||||||
Average selling price (orders):
|
|||||||||||||||||
North
|
$337
|
$338
|
$335
|
$338
|
$343
|
$345
|
$325
|
||||||||||
Southeast
|
298
|
292
|
289
|
288
|
304
|
283
|
279
|
||||||||||
Southwest
|
356
|
360
|
347
|
344
|
334
|
330
|
325
|
||||||||||
West
|
375
|
403
|
463
|
591
|
516
|
543
|
548
|
||||||||||
Consolidated total
|
$337
|
$341
|
$340
|
$347
|
$347
|
$342
|
$334
|
||||||||||
Average number of selling communities
|
|||||||||||||||||
during the period:
|
|||||||||||||||||
North
|
118
|
113
|
117
|
117
|
116
|
109
|
98
|
||||||||||
Southeast
|
81
|
81
|
85
|
87
|
81
|
78
|
78
|
||||||||||
Southwest
|
131
|
129
|
123
|
114
|
101
|
98
|
102
|
||||||||||
West
|
22
|
20
|
21
|
18
|
16
|
17
|
17
|
||||||||||
Consolidated total
|
352
|
343
|
346
|
336
|
314
|
302
|
295
|
||||||||||
Backlog:
|
|||||||||||||||||
North
|
1,234
|
1,366
|
1,269
|
973
|
1,370
|
1,494
|
1,248
|
||||||||||
Southeast
|
979
|
1,013
|
859
|
607
|
780
|
882
|
761
|
||||||||||
Southwest
|
1,409
|
1,384
|
1,129
|
880
|
1,164
|
1,253
|
1,125
|
||||||||||
West
|
352
|
353
|
286
|
157
|
245
|
241
|
208
|
||||||||||
Consolidated total
|
3,974
|
4,116
|
3,543
|
2,617
|
3,559
|
3,870
|
3,342
|
Q3 2015
|
Q2 2015
|
Q1 2015
|
Q4 2014
|
Q3 2014
|
Q2 2014
|
Q1 2014
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||||||
New homes delivered:
|
|||||||||||||||||
Southeast
|
467
|
476
|
385
|
508
|
472
|
500
|
391
|
||||||||||
Southwest
|
282
|
338
|
238
|
348
|
272
|
237
|
202
|
||||||||||
West
|
416
|
491
|
349
|
619
|
506
|
499
|
402
|
||||||||||
Consolidated total
|
1,165
|
1,305
|
972
|
1,475
|
1,250
|
1,236
|
995
|
||||||||||
Average selling price (deliveries):
|
|||||||||||||||||
Southeast
|
$437
|
$414
|
$377
|
$382
|
$360
|
$339
|
$329
|
||||||||||
Southwest
|
552
|
538
|
504
|
469
|
474
|
477
|
433
|
||||||||||
West
|
641
|
643
|
583
|
593
|
602
|
619
|
574
|
||||||||||
Consolidated total
|
$537
|
$532
|
$482
|
$491
|
$483
|
$479
|
$449
|
||||||||||
Net new orders:
|
|||||||||||||||||
Southeast
|
429
|
524
|
558
|
395
|
446
|
517
|
483
|
||||||||||
Southwest
|
325
|
406
|
392
|
240
|
245
|
434
|
288
|
||||||||||
West
|
572
|
637
|
621
|
343
|
463
|
573
|
540
|
||||||||||
Consolidated total
|
1,326
|
1,567
|
1,571
|
978
|
1,154
|
1,524
|
1,311
|
||||||||||
Average selling price (orders):
|
|||||||||||||||||
Southeast
|
$463
|
$446
|
$423
|
$385
|
$388
|
$367
|
$359
|
||||||||||
Southwest
|
559
|
509
|
509
|
509
|
480
|
452
|
467
|
||||||||||
West
|
679
|
655
|
636
|
641
|
601
|
572
|
604
|
||||||||||
Consolidated total
|
$580
|
$547
|
$528
|
$505
|
$493
|
$468
|
$483
|
||||||||||
Average number of selling communities
|
|||||||||||||||||
during the period:
|
|||||||||||||||||
Southeast
|
96
|
88
|
81
|
73
|
74
|
76
|
72
|
||||||||||
Southwest
|
54
|
55
|
56
|
54
|
53
|
49
|
45
|
||||||||||
West
|
65
|
60
|
61
|
57
|
58
|
58
|
57
|
||||||||||
Consolidated total
|
215
|
203
|
198
|
184
|
185
|
183
|
174
|
||||||||||
Backlog:
|
|||||||||||||||||
Southeast
|
954
|
992
|
944
|
771
|
884
|
910
|
893
|
||||||||||
Southwest
|
811
|
768
|
700
|
546
|
654
|
681
|
484
|
||||||||||
West
|
968
|
812
|
666
|
394
|
670
|
713
|
639
|
||||||||||
Consolidated total
|
2,733
|
2,572
|
2,310
|
1,711
|
2,208
|
2,304
|
2,016
|
%M9U/P,^H7]]9W?\ 9;^<%@LVB;8?E?DR-Q@@XQVKKHM1DHM[
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