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 June 30, 2016.
|
CALATLANTIC GROUP, INC.
|
|
By:
|
/S/ JOHN P. BABEL
|
John P. Babel
|
|
Executive Vice President,
General Counsel and Secretary
|
EXHIBIT
NUMBER
|
DESCRIPTION
|
|
99.1
|
Press release announcing financial results for the quarter ended June 30, 2016.
|
·
|
Net new orders of 3,921, up 150%; Dollar value of net new orders up 104%
|
·
|
567 average active selling communities, up 179%
|
·
|
3,484 new home deliveries, up 167%
|
·
|
Average selling price of $447 thousand, down 16%
|
·
|
Home sale revenues of $1.6 billion, up 124%
|
·
|
Gross margin from home sales of 21.9%, compared to 24.6%
|
o
|
Adjusted gross margin from home sales of 22.2%* compared to 24.6% (adjusted 2016 second quarter margin excludes $5.9 million of purchase accounting impact related to the merger)
|
·
|
SG&A rate from home sales of 10.6%, compared to 11.5%
|
·
|
Operating margin from home sales of $175.2 million, or 11.2%, compared to $90.8 million, or 13.1%
|
o
|
Adjusted operating margin from home sales of $181.1 million*, or 11.6%*
|
·
|
Net income of $112.8 million, or $0.83 per diluted share, vs. net income of $57.2 million, or $0.72 per diluted share (2016 second quarter results include the impact of $5.0 million of merger costs and $5.9 million of purchase accounting adjustments)
|
o
|
Adjusted net income of $119.6 million*, or $0.88 per diluted share*
|
·
|
$394.8 million of land purchases and development costs, compared to $190.0 million
|
·
|
Net new orders of 3,921, down 1%; Dollar value of net new orders up 5%
|
·
|
567 average active selling communities, up 4%
|
·
|
3,484 new home deliveries, up 12%
|
·
|
Average selling price of $447 thousand, up 5%
|
·
|
Home sale revenues of $1.6 billion, up 17%
|
·
|
Pretax income of $179.6 million vs. $156.1 million* (2016 second quarter results include the impact of $5.0 million of merger costs and $5.9 million of purchase accounting adjustments)
|
o
|
Adjusted pretax income of $190.5 million*, up 22%
|
·
|
$394.8 million of land purchases and development costs, compared to $418.9 million
|
As of or For the Three Months Ended
|
||||||||||||||
June 30,
|
June 30,
|
Percentage
|
March 31,
|
Percentage
|
||||||||||
2016
|
2015
|
or % Change
|
2016
|
or % Change
|
||||||||||
Select Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
3,484
|
1,305
|
167%
|
2,727
|
28%
|
|||||||||
Average selling price
|
$
|
447
|
$
|
532
|
(16%)
|
$
|
432
|
3%
|
||||||
Home sale revenues
|
$
|
1,558,701
|
$
|
694,678
|
124%
|
$
|
1,179,165
|
32%
|
||||||
Gross margin % (including land sales)
|
21.6%
|
24.6%
|
(3.0%)
|
20.8%
|
0.8%
|
|||||||||
Gross margin % from home sales
|
21.9%
|
24.6%
|
(2.7%)
|
21.0%
|
0.9%
|
|||||||||
Adjusted gross margin % from home sales (excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales)*
|
22.2%
|
24.6%
|
(2.4%)
|
22.0%
|
0.2%
|
|||||||||
Adjusted gross margin % from home sales (excluding purchase
|
||||||||||||||
accounting adjustments and interest amortized to cost of
|
||||||||||||||
home sales)*
|
24.8%
|
29.6%
|
(4.8%)
|
24.6%
|
0.2%
|
|||||||||
Incentive and stock-based compensation expense
|
$
|
17,275
|
$
|
6,520
|
165%
|
$
|
10,270
|
68%
|
||||||
Selling expenses
|
$
|
81,396
|
$
|
35,873
|
127%
|
$
|
63,060
|
29%
|
||||||
G&A expenses (excluding incentive and stock-based
|
||||||||||||||
compensation expenses)
|
$
|
67,023
|
$
|
37,517
|
79%
|
$
|
63,371
|
6%
|
||||||
SG&A expenses
|
$
|
165,694
|
$
|
79,910
|
107%
|
$
|
136,701
|
21%
|
||||||
SG&A % from home sales
|
10.6%
|
11.5%
|
(0.9%)
|
11.6%
|
(1.0%)
|
|||||||||
Operating margin from home sales
|
$
|
175,214
|
$
|
90,835
|
93%
|
$
|
110,336
|
59%
|
||||||
Operating margin % from home sales
|
11.2%
|
13.1%
|
(1.9%)
|
9.4%
|
1.8%
|
|||||||||
Adjusted operating margin from home sales*
|
$
|
181,072
|
$
|
90,835
|
99%
|
$
|
123,013
|
47%
|
||||||
Adjusted operating margin % from home sales*
|
11.6%
|
13.1%
|
(1.5%)
|
10.4%
|
1.2%
|
|||||||||
Net new orders
|
3,921
|
1,567
|
150%
|
4,135
|
(5%)
|
|||||||||
Net new orders (dollar value)
|
$
|
1,749,217
|
$
|
857,747
|
104%
|
$
|
1,798,050
|
(3%)
|
||||||
Average active selling communities
|
567
|
203
|
179%
|
571
|
(1%)
|
|||||||||
Monthly sales absorption rate per community
|
2.3
|
2.6
|
(10%)
|
2.4
|
(5%)
|
|||||||||
Cancellation rate
|
15%
|
15%
|
―
|
12%
|
3%
|
|||||||||
Gross cancellations
|
711
|
268
|
165%
|
571
|
25%
|
|||||||||
Backlog (homes)
|
7,456
|
2,572
|
190%
|
7,019
|
6%
|
|||||||||
Backlog (dollar value)
|
$
|
3,428,713
|
$
|
1,484,544
|
131%
|
$
|
3,212,079
|
7%
|
||||||
Land purchases (incl. seller financing)
|
$
|
237,925
|
$
|
98,627
|
141%
|
$
|
215,419
|
10%
|
||||||
Adjusted Homebuilding EBITDA*
|
$
|
243,048
|
$
|
140,728
|
73%
|
$
|
171,230
|
42%
|
||||||
Adjusted Homebuilding EBITDA Margin %*
|
15.4%
|
20.1%
|
(4.7%)
|
14.4%
|
1.0%
|
|||||||||
Homebuilding interest incurred
|
$
|
55,610
|
$
|
41,857
|
33%
|
$
|
62,725
|
(11%)
|
||||||
Homebuilding interest capitalized to inventories owned
|
$
|
54,564
|
$
|
41,508
|
31%
|
$
|
61,845
|
(12%)
|
||||||
Homebuilding interest capitalized to investments in JVs
|
$
|
1,046
|
$
|
349
|
200%
|
$
|
880
|
19%
|
||||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
41,830
|
$
|
36,563
|
14%
|
$
|
30,382
|
38%
|
As of
|
|||||||||
June 30,
|
December 31,
|
Percentage
|
|||||||
2016
|
2015
|
or % Change
|
|||||||
Select Balance Sheet Data
|
(Dollars in thousands, except per share amounts)
|
||||||||
Homebuilding cash (including restricted cash)
|
$
|
286,840
|
$
|
187,066
|
53%
|
||||
Inventories owned
|
$
|
6,421,737
|
$
|
6,069,959
|
6%
|
||||
Goodwill
|
$
|
969,048
|
$
|
933,360
|
4%
|
||||
Homesites owned and controlled
|
67,741
|
70,494
|
(4%)
|
||||||
Homes under construction
|
7,338
|
6,081
|
21%
|
||||||
Completed specs
|
957
|
1,325
|
(28%)
|
||||||
Homebuilding debt
|
$
|
3,715,698
|
$
|
3,487,699
|
7%
|
||||
Stockholders' equity
|
$
|
4,039,955
|
$
|
3,861,436
|
5%
|
||||
Stockholders' equity per share
|
$
|
34.12
|
$
|
31.84
|
7%
|
||||
Total consolidated debt to book capitalization
|
49.1%
|
49.5%
|
(0.4%)
|
||||||
Adjusted net homebuilding debt to total adjusted
|
|||||||||
book capitalization*
|
45.9%
|
46.1%
|
(0.2%)
|
As of or For the Three Months Ended
|
||||||||||||||
Actual
June 30, |
Pro Forma
June 30, |
Percentage
|
Actual
March 31, |
Percentage
|
||||||||||
2016
|
2015
|
or % Change
|
2016
|
or % Change
|
||||||||||
Select Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
3,484
|
3,119
|
12%
|
2,727
|
28%
|
|||||||||
Average selling price
|
$
|
447
|
$
|
427
|
5%
|
$
|
432
|
3%
|
||||||
Home sale revenues
|
$
|
1,558,701
|
$
|
1,331,079
|
*
|
17%
|
$
|
1,179,165
|
32%
|
|||||
Pretax income
|
$
|
179,617
|
$
|
156,066
|
*
|
15%
|
$
|
115,204
|
56%
|
|||||
Pretax income (excluding purchase accounting adjustments
|
||||||||||||||
included in cost of home sales and merger costs)*
|
$
|
190,480
|
$
|
156,066
|
22%
|
$
|
132,725
|
44%
|
||||||
Net new orders
|
3,921
|
3,954
|
(1%)
|
4,135
|
(5%)
|
|||||||||
Net new orders (dollar value)
|
$
|
1,749,217
|
$
|
1,670,731
|
5%
|
$
|
1,798,050
|
(3%)
|
||||||
Average active selling communities
|
567
|
546
|
4%
|
571
|
(1%)
|
|||||||||
Monthly sales absorption rate per community
|
2.3
|
2.4
|
(5%)
|
2.4
|
(5%)
|
|||||||||
Cancellation rate
|
15%
|
15%
|
―
|
12%
|
3%
|
|||||||||
Gross cancellations
|
711
|
704
|
1%
|
571
|
25%
|
|||||||||
Backlog (homes)
|
7,456
|
6,688
|
11%
|
7,019
|
6%
|
|||||||||
Backlog (dollar value)
|
$
|
3,428,713
|
$
|
2,891,927
|
19%
|
$
|
3,212,079
|
7%
|
||||||
Land purchases (incl. seller financing)
|
$
|
237,925
|
$
|
250,860
|
(5%)
|
$
|
215,419
|
10%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
1,558,701
|
$
|
694,678
|
$
|
2,737,866
|
$
|
1,163,057
|
||||||||
Land sale revenues
|
19,661
|
4,954
|
26,179
|
6,853
|
||||||||||||
Total revenues
|
1,578,362
|
699,632
|
2,764,045
|
1,169,910
|
||||||||||||
Cost of home sales
|
(1,217,793
|
)
|
(523,933
|
)
|
(2,149,921
|
)
|
(878,750
|
)
|
||||||||
Cost of land sales
|
(19,212
|
)
|
(3,758
|
)
|
(25,579
|
)
|
(5,114
|
)
|
||||||||
Total cost of sales
|
(1,237,005
|
)
|
(527,691
|
)
|
(2,175,500
|
)
|
(883,864
|
)
|
||||||||
Gross margin
|
341,357
|
171,941
|
588,545
|
286,046
|
||||||||||||
Gross margin %
|
21.6
|
%
|
24.6
|
%
|
21.3
|
%
|
24.5
|
%
|
||||||||
Selling, general and administrative expenses
|
(165,694
|
)
|
(79,910
|
)
|
(302,395
|
)
|
(145,980
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
223
|
(51
|
)
|
1,412
|
(502
|
)
|
||||||||||
Other income (expense)
|
(4,415
|
)
|
(5,276
|
)
|
(7,823
|
)
|
(5,572
|
)
|
||||||||
Homebuilding pretax income
|
171,471
|
86,704
|
279,739
|
133,992
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
20,539
|
7,411
|
38,091
|
12,804
|
||||||||||||
Expenses
|
(12,393
|
)
|
(4,593
|
)
|
(23,009
|
)
|
(8,778
|
)
|
||||||||
Financial services pretax income
|
8,146
|
2,818
|
15,082
|
4,026
|
||||||||||||
Income before taxes
|
179,617
|
89,522
|
294,821
|
138,018
|
||||||||||||
Provision for income taxes
|
(66,857
|
)
|
(32,324
|
)
|
(109,400
|
)
|
(49,215
|
)
|
||||||||
Net income
|
112,760
|
57,198
|
185,421
|
88,803
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
―
|
(13,798
|
)
|
―
|
(21,475
|
)
|
||||||||||
Less: Net income allocated to unvested restricted stock
|
(251
|
)
|
(112
|
)
|
(350
|
)
|
(181
|
)
|
||||||||
Net income available to common stockholders
|
$
|
112,509
|
$
|
43,288
|
$
|
185,071
|
$
|
67,147
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
0.95
|
$
|
0.79
|
$
|
1.55
|
$
|
1.22
|
||||||||
Diluted
|
$
|
0.83
|
$
|
0.72
|
$
|
1.36
|
$
|
1.12
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
118,419,937
|
55,099,690
|
119,617,438
|
54,914,435
|
||||||||||||
Diluted
|
136,088,146
|
62,110,779
|
137,277,899
|
62,081,531
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
―
|
17,562,557
|
―
|
17,562,557
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
136,088,146
|
79,673,336
|
137,277,899
|
79,644,088
|
||||||||||||
Cash Dividends Per Common Share
|
$
|
0.04
|
$
|
―
|
$
|
0.08
|
$
|
―
|
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS
|
(Unaudited)
|
|||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
256,007
|
$
|
151,076
|
||||
Restricted cash |
30,833
|
35,990
|
||||||
Inventories: | ||||||||
Owned |
6,421,737
|
6,069,959
|
||||||
Not owned |
81,603
|
83,246
|
||||||
Investments in unconsolidated joint ventures
|
147,631
|
132,763
|
||||||
Deferred income taxes, net
|
337,538
|
396,194
|
||||||
Goodwill |
969,048
|
933,360
|
||||||
Other assets |
117,484
|
118,768
|
||||||
Total Homebuilding Assets
|
8,361,881
|
7,921,356
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
31,863
|
35,518
|
||||||
Restricted cash |
22,008
|
22,914
|
||||||
Mortgage loans held for sale, net
|
188,977
|
325,770
|
||||||
Mortgage loans held for investment, net
|
25,394
|
22,704
|
||||||
Other assets |
19,854
|
17,243
|
||||||
Total Financial Services Assets
|
288,096
|
424,149
|
||||||
Total Assets
|
$
|
8,649,977
|
$
|
8,345,505
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
215,761
|
$
|
191,681
|
||||
Accrued liabilities |
477,950
|
478,793
|
||||||
Secured project debt and other notes payable
|
41,139
|
25,683
|
||||||
Senior notes payable
|
3,674,559
|
3,462,016
|
||||||
Total Homebuilding Liabilities
|
4,409,409
|
4,158,173
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
26,099
|
22,474
|
||||||
Mortgage credit facilities
|
174,514
|
303,422
|
||||||
Total Financial Services Liabilities
|
200,613
|
325,896
|
||||||
Total Liabilities
|
4,610,022
|
4,484,069
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock
|
―
|
―
|
||||||
Common stock
|
1,184
|
1,213
|
||||||
Additional paid-in capital
|
3,326,943
|
3,324,328
|
||||||
Accumulated earnings
|
711,784
|
535,890
|
||||||
Accumulated other comprehensive income, net of tax
|
44
|
5
|
||||||
Total Equity
|
4,039,955
|
3,861,436
|
||||||
Total Liabilities and Equity
|
$
|
8,649,977
|
$
|
8,345,505
|
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(Dollars in thousands)
|
||||||||
|
(Unaudited)
|
|||||||
Inventories Owned: | ||||||||
Land and land under development
|
$
|
3,440,809
|
$
|
3,546,289
|
||||
Homes completed and under construction
|
2,468,011
|
2,039,597
|
||||||
Model homes
|
512,917
|
484,073
|
||||||
Total inventories owned
|
$
|
6,421,737
|
$
|
6,069,959
|
||||
Inventories Owned by Segment: | ||||||||
North
|
$
|
821,897
|
$
|
703,651
|
||||
Southeast
|
1,834,044
|
1,753,301
|
||||||
Southwest
|
1,422,325
|
1,400,524
|
||||||
West
|
2,343,471
|
2,212,483
|
||||||
Total inventories owned
|
$
|
6,421,737
|
$
|
6,069,959
|
Three Months Ended June 30,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
711
|
$
|
339
|
n/a
|
$
|
n/a
|
n/a
|
n/a
|
|||||||||||||
Southeast
|
983
|
392
|
476
|
414
|
107%
|
(5%)
|
|||||||||||||||
Southwest
|
1,003
|
432
|
338
|
538
|
197%
|
(20%)
|
|||||||||||||||
West
|
|
787
|
|
634
|
|
491
|
|
643
|
|
60%
|
|
(1%)
|
|||||||||
Consolidated total
|
|
3,484
|
$
|
447
|
|
1,305
|
$
|
532
|
|
167%
|
|
(16%)
|
Six Months Ended June 30,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
1,272
|
$
|
336
|
n/a
|
$
|
n/a
|
n/a
|
n/a
|
|||||||||||||
Southeast
|
1,696
|
391
|
861
|
398
|
97%
|
(2%)
|
|||||||||||||||
Southwest
|
1,857
|
418
|
576
|
524
|
222%
|
(20%)
|
|||||||||||||||
West
|
|
1,386
|
|
629
|
|
840
|
|
618
|
|
65%
|
|
2%
|
|||||||||
Consolidated total
|
|
6,211
|
$
|
441
|
|
2,277
|
$
|
511
|
|
173%
|
|
(14%)
|
Three Months Ended June 30, | |||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
933
|
$
|
331
|
n/a
|
$
|
n/a
|
n/a
|
n/a
|
|||||||||||||
Southeast
|
1,112
|
377
|
524
|
446
|
112%
|
(15%)
|
|||||||||||||||
Southwest
|
945
|
431
|
406
|
509
|
133%
|
(15%)
|
|||||||||||||||
West
|
|
931
|
|
659
|
|
637
|
|
655
|
|
46%
|
|
1%
|
|||||||||
Consolidated total
|
|
3,921
|
$
|
446
|
|
1,567
|
$
|
547
|
|
150%
|
|
(18%)
|
Six Months Ended June 30,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
1,824
|
$
|
331
|
n/a
|
$
|
n/a
|
n/a
|
n/a
|
|||||||||||||
Southeast
|
2,313
|
374
|
1,082
|
434
|
114%
|
(14%)
|
|||||||||||||||
Southwest
|
2,076
|
429
|
798
|
509
|
160%
|
(16%)
|
|||||||||||||||
West
|
|
1,843
|
|
645
|
|
1,258
|
|
646
|
|
47%
|
|
(0%)
|
|||||||||
Consolidated total
|
|
8,056
|
$
|
440
|
|
3,138
|
$
|
538
|
|
157%
|
|
(18%)
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
North
|
126
|
n/a
|
n/a
|
121
|
n/a
|
n/a
|
|||||||||
Southeast
|
179
|
88
|
103%
|
180
|
85
|
112%
|
|||||||||
Southwest
|
169
|
55
|
207%
|
172
|
55
|
213%
|
|||||||||
West
|
93
|
60
|
55%
|
94
|
60
|
57%
|
|||||||||
Consolidated total
|
567
|
203
|
179%
|
567
|
200
|
184%
|
At June 30,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
North
|
1,555
|
$
|
524,001
|
n/a
|
$
|
n/a
|
n/a
|
n/a
|
|||||||||||||
Southeast
|
2,238
|
923,385
|
992
|
507,937
|
126%
|
82%
|
|||||||||||||||
Southwest
|
2,121
|
970,020
|
768
|
406,427
|
176%
|
139%
|
|||||||||||||||
West
|
|
1,542
|
|
1,011,307
|
|
812
|
|
570,180
|
|
90%
|
|
77%
|
|||||||||
Consolidated total
|
|
7,456
|
$
|
3,428,713
|
|
2,572
|
$
|
1,484,544
|
|
190%
|
|
131%
|
At June 30,
|
|||||||||
2016
|
2015
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
North
|
15,636
|
n/a
|
n/a
|
||||||
Southeast
|
23,033
|
16,765
|
37%
|
||||||
Southwest
|
15,006
|
6,324
|
137%
|
||||||
West
|
14,066
|
12,945
|
9%
|
||||||
Total (including joint ventures)
|
67,741
|
36,034
|
88%
|
||||||
Homesites owned
|
50,947
|
28,866
|
76%
|
||||||
Homesites optioned or subject to contract
|
15,412
|
6,123
|
152%
|
||||||
Joint venture homesites
|
1,382
|
1,045
|
32%
|
||||||
Total (including joint ventures)
|
67,741
|
36,034
|
88%
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
11,880
|
7,116
|
67%
|
||||||
Homesites under development
|
13,200
|
8,361
|
58%
|
||||||
Finished homesites
|
13,618
|
7,397
|
84%
|
||||||
Under construction or completed homes
|
10,015
|
4,010
|
150%
|
||||||
Held for sale
|
2,234
|
1,982
|
13%
|
||||||
Total
|
50,947
|
28,866
|
76%
|
Three Months Ended June 30,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
711
|
$
|
339
|
650
|
$
|
339
|
9%
|
―
|
|||||||||||||
Southeast
|
983
|
392
|
901
|
356
|
9%
|
10%
|
|||||||||||||||
Southwest
|
1,003
|
432
|
920
|
421
|
9%
|
3%
|
|||||||||||||||
West
|
|
787
|
|
634
|
|
648
|
|
622
|
|
21%
|
|
2%
|
|||||||||
Consolidated total
|
|
3,484
|
$
|
447
|
|
3,119
|
$
|
427
|
|
12%
|
|
5%
|
Six Months Ended June 30,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
1,272
|
$
|
336
|
1,172
|
$
|
341
|
9%
|
(1%)
|
|||||||||||||
Southeast
|
1,696
|
391
|
1,613
|
346
|
5%
|
13%
|
|||||||||||||||
Southwest
|
1,857
|
418
|
1,662
|
406
|
12%
|
3%
|
|||||||||||||||
West
|
|
1,386
|
|
629
|
|
1,107
|
|
604
|
|
25%
|
|
4%
|
|||||||||
Consolidated total
|
|
6,211
|
$
|
441
|
|
5,554
|
$
|
414
|
|
12%
|
|
7%
|
Three Months Ended June 30,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
933
|
$
|
331
|
747
|
$
|
338
|
25%
|
(2%)
|
|||||||||||||
Southeast
|
1,112
|
377
|
1,103
|
365
|
1%
|
3%
|
|||||||||||||||
Southwest
|
945
|
431
|
1,243
|
409
|
(24%)
|
5%
|
|||||||||||||||
West
|
|
931
|
|
659
|
|
861
|
|
590
|
|
8%
|
|
12%
|
|||||||||
Consolidated total
|
|
3,921
|
$
|
446
|
|
3,954
|
$
|
423
|
|
(1%)
|
|
5%
|
Six Months Ended June 30,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
1,824
|
$
|
331
|
1,565
|
$
|
336
|
17%
|
(1%)
|
|||||||||||||
Southeast
|
2,313
|
374
|
2,240
|
360
|
3%
|
4%
|
|||||||||||||||
Southwest
|
2,076
|
429
|
2,388
|
406
|
(13%)
|
6%
|
|||||||||||||||
West
|
|
1,843
|
|
645
|
|
1,721
|
|
589
|
|
7%
|
|
10%
|
|||||||||
Consolidated total
|
|
8,056
|
$
|
440
|
|
7,914
|
$
|
419
|
|
2%
|
|
5%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
Actual
2016 |
Pro Forma
2015 |
% Change
|
||||||||||
Average number of selling
|
|||||||||||||||
communities during the period:
|
|||||||||||||||
North
|
126
|
113
|
12%
|
121
|
116
|
4%
|
|||||||||
Southeast
|
179
|
169
|
6%
|
180
|
167
|
8%
|
|||||||||
Southwest
|
169
|
184
|
(8%)
|
172
|
182
|
(5%)
|
|||||||||
West
|
93
|
80
|
16%
|
94
|
81
|
16%
|
|||||||||
Consolidated total
|
567
|
546
|
4%
|
567
|
546
|
4%
|
At June 30,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
Dollar
Value |
Homes
|
Dollar
Value |
Homes
|
Dollar
Value |
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
North
|
1,555
|
$
|
524,001
|
1,366
|
$
|
463,663
|
14%
|
13%
|
|||||||||||||
Southeast
|
2,238
|
923,385
|
2,005
|
812,686
|
12%
|
14%
|
|||||||||||||||
Southwest
|
2,121
|
970,020
|
2,152
|
906,891
|
(1%)
|
7%
|
|||||||||||||||
West
|
|
1,542
|
|
1,011,307
|
|
1,165
|
|
708,687
|
|
32%
|
|
43%
|
|||||||||
Consolidated total
|
|
7,456
|
$
|
3,428,713
|
|
6,688
|
$
|
2,891,927
|
|
11%
|
|
19%
|
At June 30,
|
|||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
North
|
15,636
|
16,350
|
(4%)
|
||||||
Southeast
|
23,033
|
27,636
|
(17%)
|
||||||
Southwest
|
15,006
|
17,167
|
(13%)
|
||||||
West
|
14,066
|
15,298
|
(8%)
|
||||||
Total (including joint ventures)
|
67,741
|
76,451
|
(11%)
|
||||||
Homesites owned
|
50,947
|
54,961
|
(7%)
|
||||||
Homesites optioned or subject to contract
|
15,412
|
19,834
|
(22%)
|
||||||
Joint venture homesites
|
1,382
|
1,656
|
(17%)
|
||||||
Total (including joint ventures)
|
67,741
|
76,451
|
(11%)
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
11,880
|
10,890
|
9%
|
||||||
Homesites under development
|
13,200
|
24,079
|
(45%)
|
||||||
Finished homesites
|
13,618
|
8,269
|
65%
|
||||||
Under construction or completed homes
|
10,015
|
9,622
|
4%
|
||||||
Held for sale
|
2,234
|
2,101
|
6%
|
||||||
Total
|
50,947
|
54,961
|
(7%)
|
Three Months Ended
|
||||||||||||||
June 30,
2016 |
Gross
Margin % |
June 30,
2015 |
Gross
Margin % |
March 31,
2016 |
Gross
Margin % |
|||||||||
(Dollars in thousands)
|
||||||||||||||
Home sale revenues
|
$
|
1,558,701
|
$
|
694,678
|
$
|
1,179,165
|
||||||||
Less: Cost of home sales
|
|
(1,217,793)
|
|
(523,933)
|
|
(932,128)
|
||||||||
Gross margin from home sales
|
340,908
|
21.9%
|
170,745
|
24.6%
|
247,037
|
21.0%
|
||||||||
Add: Purchase accounting adjustments included
|
||||||||||||||
in cost of home sales
|
|
5,858
|
0.3%
|
|
―
|
n/a
|
|
12,677
|
1.0%
|
|||||
Adjusted gross margin from home sales, excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales
|
|
346,766
|
22.2%
|
|
170,745
|
24.6%
|
|
259,714
|
22.0%
|
|||||
Add: Capitalized interest included in cost
|
||||||||||||||
of home sales
|
|
40,528
|
2.6%
|
|
35,051
|
5.0%
|
|
30,203
|
2.6%
|
|||||
Adjusted gross margin from home sales, excluding
|
||||||||||||||
purchase accounting adjustments and interest
|
||||||||||||||
amortized to cost of home sales
|
$
|
387,294
|
24.8%
|
$
|
205,796
|
29.6%
|
$
|
289,917
|
24.6%
|
|||||
Adjusted gross margin from home sales, excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales
|
$
|
346,766
|
22.2%
|
$
|
170,745
|
24.6%
|
$
|
259,714
|
22.0%
|
|||||
Less: Selling, general and administrative expenses
|
|
(165,694)
|
(10.6%)
|
|
(79,910)
|
(11.5%)
|
|
(136,701)
|
(11.6%)
|
|||||
Adjusted operating margin from home sales, excluding
|
||||||||||||||
purchase accounting adjustments
|
$
|
181,072
|
11.6%
|
$
|
90,835
|
13.1%
|
$
|
123,013
|
10.4%
|
Three Months Ended
|
||||||||
June 30, 2016
|
March 31, 2016
|
|||||||
(Dollars in thousands, except per share amounts) | ||||||||
Pretax income
|
$
|
179,617
|
$
|
115,204
|
||||
Add:
|
||||||||
Purchase accounting adjustments included in cost of home sales
|
5,858
|
12,677
|
||||||
Merger transaction related costs
|
5,005
|
4,844
|
||||||
Adjusted pretax income
|
190,480
|
132,725
|
||||||
Less: Adjusted tax provision including the add back of purchase
|
||||||||
accounting adjustments and merger costs
|
(70,900
|
)
|
(49,013
|
)
|
||||
Adjusted net income
|
$
|
119,580
|
$
|
83,712
|
||||
Less: Net income allocated to unvested restricted stock
|
(266
|
)
|
(130
|
)
|
||||
Add: Interest on convertible senior notes
|
235
|
(226
|
)
|
|||||
Adjusted net income available to common stock for diluted
|
||||||||
earnings per share
|
$
|
119,549
|
$
|
83,356
|
||||
Adjusted diluted earnings per share
|
$
|
0.88
|
$
|
0.60
|
||||
Total weighted average diluted common shares outstanding
|
136,088,146
|
138,430,580
|
June 30,
2016 |
March 31,
2016 |
December 31,
2015 |
June 30,
2015 |
||||||||||
(Dollars in thousands)
|
|||||||||||||
Total consolidated debt
|
$
|
3,890,212
|
$
|
3,831,755
|
$
|
3,791,121
|
$
|
2,259,379
|
|||||
Less:
|
|||||||||||||
Financial services indebtedness
|
(174,514)
|
(164,943)
|
(303,422)
|
(90,341)
|
|||||||||
Homebuilding cash, including restricted cash
|
(286,840)
|
(204,180)
|
(187,066)
|
(116,802)
|
|||||||||
Adjusted net homebuilding debt
|
|
3,428,858
|
|
3,462,632
|
|
3,300,633
|
|
2,052,236
|
|||||
Stockholders' equity
|
|
4,039,955
|
|
3,941,969
|
|
3,861,436
|
|
1,752,543
|
|||||
Total adjusted book capitalization
|
$
|
7,468,813
|
$
|
7,404,601
|
$
|
7,162,069
|
$
|
3,804,779
|
|||||
Total consolidated debt to book capitalization
|
|
49.1%
|
|
49.3%
|
|
49.5%
|
|
56.3%
|
|||||
Adjusted net homebuilding debt to total adjusted book capitalization
|
|
45.9%
|
|
46.8%
|
|
46.1%
|
|
53.9%
|
|||||
Homebuilding debt
|
$
|
3,715,698
|
$
|
3,666,812
|
$
|
3,487,699
|
$
|
2,169,038
|
|||||
LTM adjusted homebuilding EBITDA
|
$
|
842,628
|
$
|
740,308
|
$
|
648,313
|
$
|
498,060
|
|||||
Homebuilding debt to adjusted homebuilding EBITDA
|
|
4.4x
|
|
5.0x
|
|
5.4x
|
|
4.4x
|
Three Months Ended
|
LTM Ended June 30,
|
|||||||||||||||
June 30,
2016 |
June 30,
2015 |
March 31,
2016 |
2016
|
2015
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net income
|
$
|
112,760
|
$
|
57,198
|
$
|
72,661
|
$
|
310,127
|
$
|
210,046
|
||||||
Provision for income taxes
|
66,857
|
32,324
|
42,543
|
189,165
|
124,475
|
|||||||||||
Homebuilding interest amortized to cost of sales
|
41,830
|
36,563
|
30,382
|
152,392
|
127,514
|
|||||||||||
Homebuilding depreciation and amortization
|
15,381
|
8,964
|
12,012
|
53,460
|
30,172
|
|||||||||||
Amortization of stock-based compensation
|
|
3,726
|
|
2,389
|
|
3,786
|
|
18,052
|
|
8,322
|
||||||
EBITDA
|
240,554
|
137,438
|
161,384
|
723,196
|
500,529
|
|||||||||||
Add:
|
||||||||||||||||
Cash distributions of income from unconsolidated joint ventures
|
―
|
592
|
450
|
2,688
|
592
|
|||||||||||
Purchase accounting adjustments included in cost of home sales
|
5,858
|
―
|
12,677
|
82,705
|
―
|
|||||||||||
Merger and other one-time costs
|
5,005
|
5,465
|
4,844
|
65,914
|
5,672
|
|||||||||||
Less:
|
||||||||||||||||
Income (loss) from unconsolidated joint ventures
|
223
|
(51)
|
1,189
|
3,880
|
(271)
|
|||||||||||
Income from financial services subsidiaries
|
|
8,146
|
|
2,818
|
|
6,936
|
|
27,995
|
|
9,004
|
||||||
Adjusted Homebuilding EBITDA
|
$
|
243,048
|
$
|
140,728
|
$
|
171,230
|
$
|
842,628
|
$
|
498,060
|
||||||
Homebuilding revenues
|
$
|
1,578,362
|
$
|
699,632
|
$
|
1,185,683
|
$
|
5,090,546
|
$
|
2,528,403
|
||||||
Adjusted Homebuilding EBITDA Margin %
|
|
15.4%
|
|
20.1%
|
|
14.4%
|
|
16.6%
|
|
19.7%
|
Three Months Ended
|
||
June 30, 2015
|
||
(Dollars in thousands)
|
||
Home sale revenues
|
$
|
694,678
|
Add: Ryland home sale revenues
|
|
636,401
|
Pro forma combined home sale revenues
|
$
|
1,331,079
|
Pretax income
|
$
|
89,522
|
Add: Ryland pretax income
|
|
66,544
|
Pro forma combined pretax income
|
$
|
156,066
|
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
|