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 December 31, 2016
|
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 December 31, 2016
|
·
|
Net new orders of 2,848, up 6%; Dollar value of net new orders up 7%
|
·
|
580 average active selling communities, flat
|
·
|
4,338 new home deliveries, up 14%
|
·
|
Average selling price of $450 thousand, up 3%
|
·
|
Home sale revenues of $2.0 billion, up 18%
|
·
|
Gross margin from home sales of 21.8%, compared to 19.8%
|
o
|
Adjusted gross margin from home sales of 21.8% compared to 23.7%* (2015 excludes $64.2 million of purchase accounting impact related to the merger)
|
·
|
SG&A rate from home sales of 9.8%, compared to 10.3%
|
·
|
Operating margin from home sales of $234.0 million, or 12.0%, compared to $158.0 million, or 9.5%
|
·
|
Net income of $167.0 million, or $1.25 per diluted share, vs. net income of $77.5 million, or $0.56 per diluted share (2016 fourth quarter results include the impact of $2.7 million of merger costs, compared to $44.8 million of merger costs and $64.2 million of purchase accounting adjustments for the 2015 fourth quarter)
|
·
|
$436.0 million of land purchases and development costs, compared to $398.0 million
|
·
|
Repurchased 3.0 million shares during the quarter at an average price of $32.10 and a total expenditure of $95.1 million
|
As of or For the Three Months Ended
|
||||||||||||||
December 31,
|
December 31,
|
Percentage
|
September 30,
|
Percentage
|
||||||||||
2016
|
2015
|
or % Change
|
2016
|
or % Change
|
||||||||||
Select Operating Data
|
(Dollars in thousands)
|
|||||||||||||
Deliveries
|
4,338
|
3,795
|
14%
|
3,680
|
18%
|
|||||||||
Average selling price
|
$
|
450
|
$
|
437
|
3%
|
$
|
452
|
(0%)
|
||||||
Home sale revenues
|
$
|
1,951,973
|
$
|
1,659,982
|
18%
|
$
|
1,665,030
|
17%
|
||||||
Gross margin % (including land sales)
|
21.9%
|
19.7%
|
2.2%
|
22.4%
|
(0.5%)
|
|||||||||
Gross margin % from home sales
|
21.8%
|
19.8%
|
2.0%
|
22.5%
|
(0.7%)
|
|||||||||
Adjusted gross margin % from home sales (excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales)*
|
21.8%
|
23.7%
|
(1.9%)
|
22.5%
|
(0.7%)
|
|||||||||
Adjusted gross margin % from home sales (excluding purchase
|
||||||||||||||
accounting adjustments and interest amortized to cost of
|
||||||||||||||
home sales)*
|
24.6%
|
26.4%
|
(1.8%)
|
25.2%
|
(0.6%)
|
|||||||||
Incentive and stock-based compensation expense
|
$
|
19,562
|
$
|
21,239
|
(8%)
|
$
|
18,594
|
5%
|
||||||
Selling expenses
|
$
|
98,778
|
$
|
79,586
|
24%
|
$
|
84,723
|
17%
|
||||||
G&A expenses (excluding incentive and stock-based
|
||||||||||||||
compensation expenses)
|
$
|
72,909
|
$
|
70,645
|
3%
|
$
|
67,498
|
8%
|
||||||
SG&A expenses
|
$
|
191,249
|
$
|
171,470
|
12%
|
$
|
170,815
|
12%
|
||||||
SG&A % from home sales
|
9.8%
|
10.3%
|
(0.5%)
|
10.3%
|
(0.5%)
|
|||||||||
Operating margin from home sales
|
$
|
233,995
|
$
|
157,954
|
48%
|
$
|
203,587
|
15%
|
||||||
Operating margin % from home sales
|
12.0%
|
9.5%
|
2.5%
|
12.2%
|
(0.2%)
|
|||||||||
Adjusted operating margin from home sales*
|
$
|
233,995
|
$
|
222,124
|
5%
|
$
|
203,587
|
15%
|
||||||
Adjusted operating margin % from home sales*
|
12.0%
|
13.4%
|
(1.4%)
|
12.2%
|
(0.2%)
|
|||||||||
Net new orders
|
2,848
|
2,699
|
6%
|
3,531
|
(19%)
|
|||||||||
Net new orders (dollar value)
|
$
|
1,273,176
|
$
|
1,194,094
|
7%
|
$
|
1,520,358
|
(16%)
|
||||||
Average active selling communities
|
580
|
579
|
0%
|
566
|
2%
|
|||||||||
Monthly sales absorption rate per community
|
1.64
|
1.55
|
5%
|
2.08
|
(21%)
|
|||||||||
Cancellation rate
|
20%
|
22%
|
(2%)
|
16%
|
4%
|
|||||||||
Gross cancellations
|
705
|
763
|
(8%)
|
679
|
4%
|
|||||||||
Backlog (homes)
|
5,817
|
5,611
|
4%
|
7,307
|
(20%)
|
|||||||||
Backlog (dollar value)
|
$
|
2,663,851
|
$
|
2,572,092
|
4%
|
$
|
3,314,883
|
(20%)
|
||||||
Land purchases (incl. seller financing)
|
$
|
279,833
|
$
|
212,210
|
32%
|
$
|
227,596
|
23%
|
||||||
Adjusted Homebuilding EBITDA*
|
$
|
314,070
|
$
|
297,581
|
6%
|
$
|
267,835
|
17%
|
||||||
Adjusted Homebuilding EBITDA Margin %*
|
16.1%
|
17.8%
|
(1.7%)
|
16.0%
|
0.1%
|
|||||||||
Homebuilding interest incurred
|
$
|
58,018
|
$
|
45,545
|
27%
|
$
|
56,872
|
2%
|
||||||
Homebuilding interest capitalized to inventories owned
|
$
|
57,031
|
$
|
44,713
|
28%
|
$
|
55,761
|
2%
|
||||||
Homebuilding interest capitalized to investments in JVs
|
$
|
987
|
$
|
832
|
19%
|
$
|
1,111
|
(11%)
|
||||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
54,738
|
$
|
46,857
|
17%
|
$
|
44,751
|
22%
|
For the Year Ended
|
|||||||||
December 31,
|
December 31,
|
Percentage
|
|||||||
2016
|
2015
|
or % Change
|
|||||||
Select Operating Data
|
(Dollars in thousands)
|
||||||||
Deliveries
|
14,229
|
7,237
|
97%
|
||||||
Average selling price
|
$
|
447
|
$
|
477
|
(6%)
|
||||
Home sale revenues
|
$
|
6,354,869
|
$
|
3,449,047
|
84%
|
||||
Gross margin % (including land sales)
|
21.8%
|
22.2%
|
(0.4%)
|
||||||
Gross margin % from home sales
|
21.8%
|
22.4%
|
(0.6%)
|
||||||
Adjusted gross margin % from home sales (excluding purchase
|
|||||||||
accounting adjustments included in cost of home sales)*
|
22.1%
|
24.3%
|
(2.2%)
|
||||||
Adjusted gross margin % from home sales (excluding purchase
|
|||||||||
accounting adjustments and interest amortized to cost of
|
|||||||||
home sales)*
|
24.8%
|
28.1%
|
(3.3%)
|
||||||
Incentive and stock-based compensation expense
|
$
|
65,701
|
$
|
38,113
|
72%
|
||||
Selling expenses
|
$
|
327,957
|
$
|
174,269
|
88%
|
||||
G&A expenses (excluding incentive and stock-based
|
|||||||||
compensation expenses)
|
$
|
270,801
|
$
|
178,328
|
52%
|
||||
SG&A expenses
|
$
|
664,459
|
$
|
390,710
|
70%
|
||||
SG&A % from home sales
|
10.5%
|
11.3%
|
(0.8%)
|
||||||
Operating margin from home sales
|
$
|
723,132
|
$
|
381,671
|
89%
|
||||
Operating margin % from home sales
|
11.4%
|
11.1%
|
0.3%
|
||||||
Adjusted operating margin from home sales*
|
$
|
741,667
|
$
|
445,841
|
66%
|
||||
Adjusted operating margin % from home sales*
|
11.6%
|
13.0%
|
(1.4%)
|
||||||
Net new orders
|
14,435
|
7,163
|
102%
|
||||||
Net new orders (dollar value)
|
$
|
6,340,803
|
$
|
3,650,329
|
74%
|
||||
Average active selling communities
|
570
|
299
|
91%
|
||||||
Monthly sales absorption rate per community
|
2.11
|
2.00
|
6%
|
||||||
Cancellation rate
|
16%
|
18%
|
(2%)
|
||||||
Gross cancellations
|
2,666
|
1,533
|
74%
|
||||||
Backlog (homes)
|
5,817
|
5,611
|
4%
|
||||||
Backlog (dollar value)
|
$
|
2,663,851
|
$
|
2,572,092
|
4%
|
||||
Land purchases (incl. seller financing)
|
$
|
960,773
|
$
|
515,315
|
86%
|
||||
Adjusted Homebuilding EBITDA*
|
$
|
996,183
|
$
|
648,313
|
54%
|
||||
Adjusted Homebuilding EBITDA Margin %*
|
15.6%
|
18.5%
|
(2.9%)
|
||||||
Homebuilding interest incurred
|
$
|
233,225
|
$
|
171,509
|
36%
|
||||
Homebuilding interest capitalized to inventories owned
|
$
|
229,200
|
$
|
169,233
|
35%
|
||||
Homebuilding interest capitalized to investments in JVs
|
$
|
4,025
|
$
|
2,276
|
77%
|
||||
Interest amortized to cost of sales (incl. cost of land sales)
|
$
|
171,701
|
$
|
139,381
|
23%
|
As of
|
|||||||||
December 31,
|
December 31,
|
Percentage
|
|||||||
2016
|
2015
|
or % Change
|
|||||||
Select Balance Sheet Data
|
(Dollars in thousands, except per share amounts)
|
||||||||
Homebuilding cash (including restricted cash)
|
$
|
219,407
|
$
|
187,066
|
17%
|
||||
Inventories owned
|
$
|
6,438,792
|
$
|
6,069,959
|
6%
|
||||
Goodwill
|
$
|
970,185
|
$
|
933,360
|
4%
|
||||
Homesites owned and controlled
|
65,424
|
70,494
|
(7%)
|
||||||
Homes under construction
|
5,792
|
6,081
|
(5%)
|
||||||
Completed specs
|
1,255
|
1,325
|
(5%)
|
||||||
Homebuilding debt
|
$
|
3,419,787
|
$
|
3,487,699
|
(2%)
|
||||
Stockholders' equity
|
$
|
4,207,586
|
$
|
3,861,436
|
9%
|
||||
Stockholders' equity per share
|
$
|
36.77
|
$
|
31.84
|
15%
|
||||
Total consolidated debt to book capitalization
|
46.6%
|
49.5%
|
(2.9%)
|
||||||
Adjusted net homebuilding debt to total adjusted
|
|||||||||
book capitalization*
|
43.2%
|
46.1%
|
(2.9%)
|
For the Year Ended
|
|||||||||
Actual
December 31, |
Pro Forma
December 31, |
Percentage
|
|||||||
2016
|
2015
|
or % Change
|
|||||||
Select Operating Data
|
(Dollars in thousands)
|
||||||||
Deliveries
|
14,229
|
12,560
|
13%
|
||||||
Average selling price
|
$
|
447
|
$
|
420
|
6%
|
||||
Home sale revenues
|
$
|
6,354,869
|
$
|
5,280,297
|
*
|
20%
|
|||
Pretax income
|
$
|
753,116
|
$
|
515,932
|
*
|
46%
|
|||
Pretax income (excluding purchase accounting adjustments
|
|||||||||
included in cost of home sales and merger costs)*
|
$
|
788,136
|
$
|
641,839
|
23%
|
||||
Net new orders
|
14,435
|
13,851
|
4%
|
||||||
Net new orders (dollar value)
|
$
|
6,340,803
|
$
|
5,921,611
|
7%
|
||||
Average active selling communities
|
570
|
558
|
2%
|
||||||
Monthly sales absorption rate per community
|
2.11
|
2.07
|
2%
|
||||||
Cancellation rate
|
16%
|
17%
|
(1%)
|
||||||
Gross cancellations
|
2,666
|
2,890
|
(8%)
|
||||||
Backlog (homes)
|
5,817
|
5,611
|
4%
|
||||||
Backlog (dollar value)
|
$
|
2,663,851
|
$
|
2,572,092
|
4%
|
||||
Land purchases (incl. seller financing)
|
$
|
960,773
|
$
|
875,118
|
10%
|
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
1,951,973
|
$
|
1,659,982
|
$
|
6,354,869
|
$
|
3,449,047
|
||||||||
Land sale revenues
|
1,064
|
14,329
|
33,171
|
47,364
|
||||||||||||
Total revenues
|
1,953,037
|
1,674,311
|
6,388,040
|
3,496,411
|
||||||||||||
Cost of home sales
|
(1,526,729
|
)
|
(1,330,558
|
)
|
(4,967,278
|
)
|
(2,676,666
|
)
|
||||||||
Cost of land sales
|
1,085
|
(13,084
|
)
|
(30,132
|
)
|
(43,274
|
)
|
|||||||||
Total cost of sales
|
(1,525,644
|
)
|
(1,343,642
|
)
|
(4,997,410
|
)
|
(2,719,940
|
)
|
||||||||
Gross margin
|
427,393
|
330,669
|
1,390,630
|
776,471
|
||||||||||||
Gross margin %
|
21.9
|
%
|
19.7
|
%
|
21.8
|
%
|
22.2
|
%
|
||||||||
Selling, general and administrative expenses
|
(191,249
|
)
|
(171,470
|
)
|
(664,459
|
)
|
(390,710
|
)
|
||||||||
Income from unconsolidated joint ventures
|
1,414
|
2,347
|
4,057
|
1,966
|
||||||||||||
Other income (expense)
|
(4,734
|
)
|
(45,435
|
)
|
(16,726
|
)
|
(62,177
|
)
|
||||||||
Homebuilding pretax income
|
232,824
|
116,111
|
713,502
|
325,550
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
29,171
|
23,887
|
88,695
|
43,702
|
||||||||||||
Expenses
|
(14,446
|
)
|
(13,821
|
)
|
(49,081
|
)
|
(26,763
|
)
|
||||||||
Financial services pretax income
|
14,725
|
10,066
|
39,614
|
16,939
|
||||||||||||
Income before taxes
|
247,549
|
126,177
|
753,116
|
342,489
|
||||||||||||
Provision for income taxes
|
(80,588
|
)
|
(48,648
|
)
|
(268,386
|
)
|
(128,980
|
)
|
||||||||
Net income
|
166,961
|
77,529
|
484,730
|
213,509
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
―
|
―
|
―
|
(32,997
|
)
|
|||||||||||
Less: Net income allocated to unvested restricted stock
|
(613
|
)
|
(95
|
)
|
(1,168
|
)
|
(369
|
)
|
||||||||
Net income available to common stockholders
|
$
|
166,348
|
$
|
77,434
|
$
|
483,562
|
$
|
180,143
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
1.44
|
$
|
0.64
|
$
|
4.09
|
$
|
2.51
|
||||||||
Diluted
|
$
|
1.25
|
$
|
0.56
|
$
|
3.60
|
$
|
2.26
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
115,307,730
|
121,132,872
|
118,212,740
|
71,713,747
|
||||||||||||
Diluted
|
133,105,462
|
138,971,598
|
135,984,985
|
81,512,953
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
―
|
―
|
―
|
13,135,814
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
133,105,462
|
138,971,598
|
135,984,985
|
94,648,767
|
||||||||||||
Cash Dividends Declared Per Common Share
|
$
|
0.04
|
$
|
0.04
|
$
|
0.16
|
$
|
0.04
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS
|
(Unaudited)
|
|||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
191,086
|
$
|
151,076
|
||||
Restricted cash |
28,321
|
35,990
|
||||||
Inventories: | ||||||||
Owned |
6,438,792
|
6,069,959
|
||||||
Not owned |
66,267
|
83,246
|
||||||
Investments in unconsolidated joint ventures
|
127,127
|
132,763
|
||||||
Deferred income taxes, net
|
330,378
|
396,194
|
||||||
Goodwill |
970,185
|
933,360
|
||||||
Other assets |
204,489
|
202,665
|
||||||
Total Homebuilding Assets
|
8,356,645
|
8,005,253
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
17,041
|
35,518
|
||||||
Restricted cash |
21,710
|
22,914
|
||||||
Mortgage loans held for sale, net
|
262,058
|
325,770
|
||||||
Mortgage loans held for investment, net
|
24,924
|
22,704
|
||||||
Other assets |
26,666
|
17,243
|
||||||
Total Financial Services Assets
|
352,399
|
424,149
|
||||||
Total Assets
|
$
|
8,709,044
|
$
|
8,429,402
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
211,780
|
$
|
191,681
|
||||
Accrued liabilities |
599,905
|
562,690
|
||||||
Secured project debt and other notes payable
|
27,579
|
25,683
|
||||||
Senior notes payable
|
3,392,208
|
3,462,016
|
||||||
Total Homebuilding Liabilities
|
4,231,472
|
4,242,070
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
22,559
|
22,474
|
||||||
Mortgage credit facilities
|
247,427
|
303,422
|
||||||
Total Financial Services Liabilities
|
269,986
|
325,896
|
||||||
Total Liabilities
|
4,501,458
|
4,567,966
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock
|
―
|
―
|
||||||
Common stock
|
1,144
|
1,213
|
||||||
Additional paid-in capital
|
3,204,835
|
3,324,328
|
||||||
Accumulated earnings
|
1,001,779
|
535,890
|
||||||
Accumulated other comprehensive income, net of tax
|
(172
|
)
|
5
|
|||||
Total Equity
|
4,207,586
|
3,861,436
|
||||||
Total Liabilities and Equity
|
$
|
8,709,044
|
$
|
8,429,402
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(Dollars in thousands)
|
||||||||
|
(Unaudited)
|
|||||||
Inventories Owned: | ||||||||
Land and land under development
|
$
|
3,627,740
|
$
|
3,546,289
|
||||
Homes completed and under construction
|
2,304,109
|
2,039,597
|
||||||
Model homes
|
506,943
|
484,073
|
||||||
Total inventories owned
|
$
|
6,438,792
|
$
|
6,069,959
|
||||
Inventories Owned by Segment:
|
||||||||
North
|
$
|
851,972
|
$
|
703,651
|
||||
Southeast
|
1,896,552
|
1,753,301
|
||||||
Southwest
|
1,421,669
|
1,400,524
|
||||||
West
|
2,268,599
|
2,212,483
|
||||||
Total inventories owned
|
$
|
6,438,792
|
$
|
6,069,959
|
Three Months Ended December 31,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
914
|
$
|
335
|
787
|
$
|
334
|
16%
|
0%
|
|||||||||||||
Southeast
|
1,281
|
385
|
1,143
|
377
|
12%
|
2%
|
|||||||||||||||
Southwest
|
1,140
|
433
|
1,033
|
403
|
10%
|
7%
|
|||||||||||||||
West
|
|
1,003
|
|
657
|
|
832
|
|
662
|
|
21%
|
|
(1%)
|
|||||||||
Consolidated total
|
|
4,338
|
$
|
450
|
|
3,795
|
$
|
437
|
|
14%
|
|
3%
|
Year Ended December 31,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
3,034
|
$
|
333
|
787
|
$
|
334
|
286%
|
(0%)
|
|||||||||||||
Southeast
|
4,029
|
387
|
2,471
|
395
|
63%
|
(2%)
|
|||||||||||||||
Southwest
|
3,891
|
426
|
1,891
|
462
|
106%
|
(8%)
|
|||||||||||||||
West
|
|
3,275
|
|
649
|
|
2,088
|
|
640
|
|
57%
|
|
1%
|
|||||||||
Consolidated total
|
|
14,229
|
$
|
447
|
|
7,237
|
$
|
477
|
|
97%
|
|
(6%)
|
Three Months Ended December 31,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
682
|
$
|
356
|
556
|
$
|
348
|
23%
|
2%
|
|||||||||||||
Southeast
|
817
|
394
|
831
|
384
|
(2%)
|
3%
|
|||||||||||||||
Southwest
|
696
|
437
|
715
|
416
|
(3%)
|
5%
|
|||||||||||||||
West
|
|
653
|
|
619
|
|
597
|
|
643
|
|
9%
|
|
(4%)
|
|||||||||
Consolidated total
|
|
2,848
|
$
|
447
|
|
2,699
|
$
|
442
|
|
6%
|
|
1%
|
Year Ended December 31,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
3,329
|
$
|
337
|
556
|
$
|
348
|
499%
|
(3%)
|
|||||||||||||
Southeast
|
4,201
|
378
|
2,342
|
422
|
79%
|
(10%)
|
|||||||||||||||
Southwest
|
3,603
|
430
|
1,838
|
481
|
96%
|
(11%)
|
|||||||||||||||
West
|
|
3,302
|
|
630
|
|
2,427
|
|
653
|
|
36%
|
|
(4%)
|
|||||||||
Consolidated total
|
|
14,435
|
$
|
439
|
|
7,163
|
$
|
510
|
|
102%
|
|
(14%)
|
Three Months Ended
December 31, |
Year Ended
December 31, |
||||||||||||||
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
||||||||||
Average number of selling communities
|
|||||||||||||||
during the period:
|
|||||||||||||||
North
|
140
|
119
|
18%
|
129
|
30
|
330%
|
|||||||||
Southeast
|
190
|
181
|
5%
|
183
|
111
|
65%
|
|||||||||
Southwest
|
163
|
183
|
(11%)
|
168
|
87
|
93%
|
|||||||||
West
|
87
|
96
|
(9%)
|
90
|
71
|
27%
|
|||||||||
Consolidated total
|
580
|
579
|
0%
|
570
|
299
|
91%
|
At December 31,
|
|||||||||||||||||||||
2016
|
2015
|
% Change
|
|||||||||||||||||||
Homes
|
Dollar
Value |
Homes
|
Dollar
Value |
Homes
|
Dollar
Value |
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Backlog:
|
|||||||||||||||||||||
North
|
1,298
|
$
|
464,253
|
1,003
|
$ |
348,285
|
29%
|
33%
|
|||||||||||||
Southeast
|
1,793
|
776,402
|
1,621
|
702,388
|
11%
|
11%
|
|||||||||||||||
Southwest
|
1,614
|
764,583
|
1,902
|
845,499
|
(15%)
|
(10%)
|
|||||||||||||||
West
|
|
1,112
|
|
658,613
|
|
1,085
|
|
675,920
|
|
2%
|
|
(3%)
|
|||||||||
Consolidated total
|
|
5,817
|
$
|
2,663,851
|
|
5,611
|
$
|
2,572,092
|
|
4%
|
|
4%
|
At December 31,
|
|||||||||
2016
|
2015
|
% Change
|
|||||||
Homesites owned and controlled:
|
|||||||||
North
|
15,087
|
15,222
|
(1%)
|
||||||
Southeast
|
22,358
|
24,393
|
(8%)
|
||||||
Southwest
|
14,151
|
16,151
|
(12%)
|
||||||
West
|
13,828
|
14,728
|
(6%)
|
||||||
Total (including joint ventures)
|
65,424
|
70,494
|
(7%)
|
||||||
Homesites owned
|
50,735
|
52,583
|
(4%)
|
||||||
Homesites optioned or subject to contract
|
13,142
|
15,972
|
(18%)
|
||||||
Joint venture homesites
|
1,547
|
1,939
|
(20%)
|
||||||
Total (including joint ventures)
|
65,424
|
70,494
|
(7%)
|
||||||
Homesites owned:
|
|||||||||
Raw lots
|
13,018
|
8,814
|
48%
|
||||||
Homesites under development
|
13,239
|
23,395
|
(43%)
|
||||||
Finished homesites
|
13,516
|
9,488
|
42%
|
||||||
Under construction or completed homes
|
8,567
|
9,092
|
(6%)
|
||||||
Held for sale
|
2,395
|
1,794
|
34%
|
||||||
Total
|
50,735
|
52,583
|
(4%)
|
Year Ended December 31,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
New homes delivered:
|
|||||||||||||||||||||
North
|
3,034
|
$
|
333
|
2,727
|
$
|
339
|
11%
|
(2%)
|
|||||||||||||
Southeast
|
4,029
|
387
|
3,732
|
360
|
8%
|
8%
|
|||||||||||||||
Southwest
|
3,891
|
426
|
3,552
|
406
|
10%
|
5%
|
|||||||||||||||
West
|
|
3,275
|
|
649
|
|
2,549
|
|
616
|
|
28%
|
|
5%
|
|||||||||
Consolidated total
|
|
14,229
|
$
|
447
|
|
12,560
|
$
|
420
|
|
13%
|
|
6%
|
Year Ended December 31,
|
|||||||||||||||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
|||||||||||||||||||
Homes
|
ASP
|
Homes
|
ASP
|
Homes
|
ASP
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Net new orders:
|
|||||||||||||||||||||
North
|
3,329
|
$
|
337
|
2,757
|
$
|
339
|
21%
|
(1%)
|
|||||||||||||
Southeast
|
4,201
|
378
|
3,976
|
369
|
6%
|
2%
|
|||||||||||||||
Southwest
|
3,603
|
430
|
4,029
|
413
|
(11%)
|
4%
|
|||||||||||||||
West
|
|
3,302
|
|
630
|
|
3,089
|
|
602
|
|
7%
|
|
5%
|
|||||||||
Consolidated total
|
|
14,435
|
$
|
439
|
|
13,851
|
$
|
428
|
|
4%
|
|
3%
|
Year Ended December 31,
|
||||||||
Actual
2016 |
Pro Forma
2015 |
% Change
|
||||||
Average number of selling communities during the period:
|
||||||||
North
|
129
|
117
|
10%
|
|||||
Southeast
|
183
|
173
|
6%
|
|||||
Southwest
|
168
|
183
|
(8%)
|
|||||
West
|
90
|
85
|
6%
|
|||||
Consolidated total
|
570
|
558
|
2%
|
Three Months Ended
|
||||||||||||||
December 31,
2016 |
Gross
Margin % |
December 31,
2015 |
Gross
Margin % |
September 30,
2016 |
Gross
Margin % |
|||||||||
(Dollars in thousands)
|
||||||||||||||
Home sale revenues
|
$
|
1,951,973
|
$
|
1,659,982
|
$
|
1,665,030
|
||||||||
Less: Cost of home sales
|
|
(1,526,729)
|
|
(1,330,558)
|
|
(1,290,628)
|
||||||||
Gross margin from home sales
|
425,244
|
21.8%
|
329,424
|
19.8%
|
374,402
|
22.5%
|
||||||||
Add: Purchase accounting adjustments included
|
||||||||||||||
in cost of home sales
|
|
―
|
n/a
|
|
64,170
|
3.9%
|
|
―
|
n/a
|
|||||
Adjusted gross margin from home sales, excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales
|
|
425,244
|
21.8%
|
|
393,594
|
23.7%
|
|
374,402
|
22.5%
|
|||||
Add: Capitalized interest included in cost
|
||||||||||||||
of home sales
|
|
54,738
|
2.8%
|
|
43,890
|
2.7%
|
|
44,636
|
2.7%
|
|||||
Adjusted gross margin from home sales, excluding
|
||||||||||||||
purchase accounting adjustments and interest
|
||||||||||||||
amortized to cost of home sales
|
$
|
479,982
|
24.6%
|
$
|
437,484
|
26.4%
|
$
|
419,038
|
25.2%
|
|||||
Adjusted gross margin from home sales, excluding purchase
|
||||||||||||||
accounting adjustments included in cost of home sales
|
$
|
425,244
|
21.8%
|
$
|
393,594
|
23.7%
|
$
|
374,402
|
22.5%
|
|||||
Less: Selling, general and administrative expenses
|
|
(191,249)
|
(9.8%)
|
|
(171,470)
|
(10.3%)
|
|
(170,815)
|
(10.3%)
|
|||||
Adjusted operating margin from home sales, excluding
|
||||||||||||||
purchase accounting adjustments
|
$
|
233,995
|
12.0%
|
$
|
222,124
|
13.4%
|
$
|
203,587
|
12.2%
|
Year Ended
|
|||||||||
December 31,
2016 |
Gross
Margin % |
December 31,
2015 |
Gross
Margin % |
||||||
(Dollars in thousands)
|
|||||||||
Home sale revenues
|
$
|
6,354,869
|
$
|
3,449,047
|
|||||
Less: Cost of home sales
|
|
(4,967,278)
|
|
(2,676,666)
|
|||||
Gross margin from home sales
|
1,387,591
|
21.8%
|
772,381
|
22.4%
|
|||||
Add: Purchase accounting adjustments included
|
|||||||||
in cost of home sales
|
|
18,535
|
0.3%
|
|
64,170
|
1.9%
|
|||
Adjusted gross margin from home sales, excluding purchase
|
|||||||||
accounting adjustments included in cost of home sales
|
|
1,406,126
|
22.1%
|
|
836,551
|
24.3%
|
|||
Add: Capitalized interest included in cost
|
|||||||||
of home sales
|
|
170,105
|
2.7%
|
|
131,611
|
3.8%
|
|||
Adjusted gross margin from home sales, excluding
|
|||||||||
purchase accounting adjustments and interest
|
|||||||||
amortized to cost of home sales
|
$
|
1,576,231
|
24.8%
|
$
|
968,162
|
28.1%
|
|||
Adjusted gross margin from home sales, excluding purchase
|
|||||||||
accounting adjustments included in cost of home sales
|
$
|
1,406,126
|
22.1%
|
$
|
836,551
|
24.3%
|
|||
Less: Selling, general and administrative expenses
|
|
(664,459)
|
(10.5%)
|
|
(390,710)
|
(11.3%)
|
|||
Adjusted operating margin from home sales, excluding
|
|||||||||
purchase accounting adjustments
|
$
|
741,667
|
11.6%
|
$
|
445,841
|
13.0%
|
Year Ended
|
|||||||
December 31, 2016
|
December 31, 2015
|
||||||
(Dollars in thousands)
|
|||||||
Pretax income
|
$
|
753,116
|
$
|
342,489
|
|||
Add:
|
|||||||
Purchase accounting adjustments included in cost of home sales
|
18,535
|
64,170
|
|||||
Merger and other one-time transaction related costs
|
16,485
|
61,737
|
|||||
Adjusted pretax income
|
$
|
788,136
|
$
|
468,396
|
Year Ended
|
||
December 31, 2015
|
||
(Dollars in thousands)
|
||
Home sale revenues
|
$
|
3,449,047
|
Add: Ryland home sale revenues
|
|
1,831,250
|
Pro forma combined home sale revenues
|
$
|
5,280,297
|
Pretax income
|
$
|
342,489
|
Add: Ryland pretax income
|
|
173,443
|
Pro forma combined pretax income
|
$
|
515,932
|
Add:
|
||
Purchase accounting adjustments included in cost of home sales
|
64,170
|
|
Merger and other one-time transaction related costs
|
61,737
|
|
Adjusted pro forma combined pretax income
|
$
|
641,839
|
December 31,
2016 |
December 31,
2015 |
||||||
(Dollars in thousands)
|
|||||||
Total consolidated debt
|
$
|
3,667,214
|
$
|
3,791,121
|
|||
Less:
|
|||||||
Financial services indebtedness
|
(247,427)
|
(303,422)
|
|||||
Homebuilding cash, including restricted cash
|
(219,407)
|
(187,066)
|
|||||
Adjusted net homebuilding debt
|
|
3,200,380
|
|
3,300,633
|
|||
Stockholders' equity
|
|
4,207,586
|
|
3,861,436
|
|||
Total adjusted book capitalization
|
$
|
7,407,966
|
$
|
7,162,069
|
|||
Total consolidated debt to book capitalization
|
|
46.6%
|
|
49.5%
|
|||
Adjusted net homebuilding debt to total adjusted book capitalization
|
|
43.2%
|
|
46.1%
|
|||
Homebuilding debt
|
$
|
3,419,787
|
$
|
3,487,699
|
|||
LTM adjusted homebuilding EBITDA
|
$
|
996,183
|
$
|
648,313
|
|||
Homebuilding debt to adjusted homebuilding EBITDA
|
|
3.4x
|
|
5.4x
|
Three Months Ended
|
Year Ended December 31,
|
|||||||||||||||
December 31,
2016 |
December 31,
2015 |
September 30,
2016 |
2016
|
2015
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net income
|
$
|
166,961
|
$
|
77,529
|
$
|
132,348
|
$
|
484,730
|
$
|
213,509
|
||||||
Provision for income taxes
|
80,588
|
48,648
|
78,398
|
268,386
|
128,980
|
|||||||||||
Homebuilding interest amortized to cost of sales
|
54,738
|
46,857
|
44,751
|
171,701
|
139,381
|
|||||||||||
Homebuilding depreciation and amortization
|
18,424
|
18,699
|
15,735
|
61,552
|
40,987
|
|||||||||||
EBITDA
|
320,711
|
191,733
|
271,232
|
986,369
|
522,857
|
|||||||||||
Add:
|
||||||||||||||||
Amortization of stock-based compensation
|
6,578
|
7,004
|
3,704
|
17,794
|
15,624
|
|||||||||||
Cash distributions of income from unconsolidated joint ventures
|
221
|
2,238
|
―
|
671
|
2,830
|
|||||||||||
Purchase accounting adjustments included in cost of home sales
|
―
|
64,170
|
―
|
18,535
|
64,170
|
|||||||||||
Merger and other one-time costs
|
2,699
|
44,849
|
3,937
|
16,485
|
61,737
|
|||||||||||
Less:
|
||||||||||||||||
Income from unconsolidated joint ventures
|
1,414
|
2,347
|
1,231
|
4,057
|
1,966
|
|||||||||||
Income from financial services subsidiaries
|
|
14,725
|
|
10,066
|
|
9,807
|
|
39,614
|
|
16,939
|
||||||
Adjusted Homebuilding EBITDA
|
$
|
314,070
|
$
|
297,581
|
$
|
267,835
|
$
|
996,183
|
$
|
648,313
|
||||||
Homebuilding revenues
|
$
|
1,953,037
|
$
|
1,674,311
|
$
|
1,670,958
|
$
|
6,388,040
|
$
|
3,496,411
|
||||||
Adjusted Homebuilding EBITDA Margin %
|
|
16.1%
|
|
17.8%
|
|
16.0%
|
|
15.6%
|
|
18.5%
|
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
|