-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dp5RbrXUc0417ZgUbmN9k2BTBd1kv/agp3K2mJE5tdshw5n3wLBgEgdjlvUx7JGK CDeIpNKJXalLOgf089f1ww== 0000891092-03-001723.txt : 20030725 0000891092-03-001723.hdr.sgml : 20030725 20030725093147 ACCESSION NUMBER: 0000891092-03-001723 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030725 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STANDARD PACIFIC CORP /DE/ CENTRAL INDEX KEY: 0000878560 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 330475989 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10959 FILM NUMBER: 03802109 BUSINESS ADDRESS: STREET 1: 15326 ALTON PARKWAY CITY: IRVINE STATE: CA ZIP: 92618 BUSINESS PHONE: 9497891600 MAIL ADDRESS: STREET 1: 15326 ALTON PARKWAY CITY: IRVINE STATE: CA ZIP: 92618 8-K 1 e15294_8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): July 25, 2003 STANDARD PACIFIC CORP. (Exact Name of Registrant as Specified in Charter) Delaware 1-10959 86-0077724 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 15326 Alton Parkway Irvine, California 92618 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (949) 789-1600 Not Applicable (Former Name or Former Address, if Changed Since Last Report) INFORMATION TO BE INCLUDED IN THE REPORT Item 9. Disclosure of Results of Operations and Financial Condition The following information is being furnished pursuant to Item 12 in accordance with Final Rule 33-8216. On July 25, 2003, Standard Pacific Corp. issued a press release announcing financial results for the quarter ended June 30, 2003 (the "Press Release"). Attached hereto as Exhibit 99.1 and incorporated by reference herein is a copy of the Press Release. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 25, 2003 STANDARD PACIFIC CORP. By: /s/ Andrew H. Parnes --------------------------------------- Andrew H. Parnes Senior Vice President - Finance & Chief Financial Officer 2 EXHIBIT INDEX Exhibit Number Description 99.1 Press Release reporting first quarter earnings for the period ended June 30, 2003. 3 EX-99.1 3 e15294ex99_1.txt PRESS RELEASE Exhibit 99.1 Standard Pacific Corp. Reports a 56% Increase in Second Quarter Earnings To A Record $1.26 Per Share and Raises Guidance for Full Year To $5.35 to $5.45 Per Share Financial and Operating Highlights - 2003 Second Quarter vs. 2002 Second Quarter - Earnings per share rose 56% to a record $1.26 - Record homebuilding revenues of $515 million, up 16% year-over-year - Record deliveries of 1,822 new homes, up 28% from last year - Gross margin improves 330 bp's year-over-year to 20.7% - EBITDA of $80.3 million, an increase of 40% over 2002* - LTM return on average equity improves 190 bp's year-over-year to 18.3% - New orders rise 40% to an all-time high of 2,583 homes, driven by Southeastern acquisitions - Record backlog of 4,780 presold homes valued at $1.5 billion, up 41% - Raising 2003 full year guidance to $5.35 to $5.45 per share, up from $4.65 to $4.75 per share last quarter, a potential increase of 49% from last year IRVINE, Calif., July 25 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today reported the Company's 2003 second quarter results. Net income for the three months ended June 30, 2003 increased 61% to $42.0 million, or $1.26 per diluted share, compared to $26.0 million, or $0.81 per diluted share last year. Stephen J. Scarborough, Chairman and Chief Executive Officer, commented, "Our record operating results for the second quarter reflect the success of the Company's long-term growth and diversification strategy. Our coast-to- coast operations now cover 5 of the 6 largest states in the country as measured by new housing starts, including California, Arizona and Florida which are experiencing robust market conditions." "We have continued to experience strong volume and price appreciation in California, where we have generated a record backlog of over 1,800 presold homes with an estimated sales value in excess of $900 million," Mr. Scarborough continued. "In Phoenix, Arizona we have become one of the market leaders and are experiencing strong order momentum, up over 40% for the quarter. In addition, our operations in Florida and the Carolinas are expected to deliver over 2,600 homes, or 33% of our volume companywide, in our first full year on the East Coast." "As a result of our strong order and operating trends, we are raising our full year guidance for 2003 to $5.35 to $5.45 per share which would represent up to a 49% increase in earnings over our 2002 level. We are targeting homebuilding revenues of $2.2 billion for the year driven by the projected delivery of 7,325 new homes, excluding 575 joint venture deliveries. For the 2003 third quarter, our earnings are expected to be between $1.35 and $1.45 per share, representing up to a 113% year-over-year increase, based on the delivery of 1,950 new homes, excluding 150 joint venture deliveries, with homebuilding revenues of $550 million to $575 million." "As we execute our growth strategy, we continue to carefully manage our balance sheet. We ended the quarter with a net homebuilding debt-to-capital ratio of 50.3%, and nearly $500 million of liquidity available between the borrowing capacity under our $450 million revolving credit facility and $84 million in available cash. Our liquidity was enhanced during the quarter through the issuance of $175 million of 6.875% senior notes due 2011." Mr. Scarborough concluded, "An integral part of our growth strategy is to maintain a three to four year supply of buildable lots. At June 30, 2003, we owned or controlled nearly 36,000 lots, an increase of 69% over the same period last year. The increase reflects our expansion into the Southeastern United States last year as well as growth in our California holdings, a region that is experiencing robust new home demand and an extremely tight supply of developable land. At the same time, we have been successful in minimizing the level of completed and unsold homes companywide. At quarter end we had 145 standing unsold homes over 143 active selling communities compared to 280 homes at year end 2002." Homebuilding Homebuilding pretax income for the 2003 second quarter was up 59% to $66.1 million compared to $41.5 million last year. The higher level of pretax income was driven by a 16% increase in homebuilding revenues, a 330 basis point improvement in our homebuilding gross margin percentage and a $10.0 million increase in joint venture income. These increases were partially offset by a 150 basis point increase in the Company's SG&A rate. Homebuilding revenues for the 2003 second quarter were $515.2 million compared to $444.7 million in the year earlier period. The 16% increase in revenues was driven by a 24% increase in new home deliveries (exclusive of joint ventures) and a $17 million increase in land sales to $17.5 million. Excluding the 665 homes delivered from our new Florida and Carolina operations, consolidated deliveries declined 10%. The impact of the higher delivery volume was offset in part by a 10% decrease in the Company's average home price. During the quarter the Company delivered 524 new homes in California (exclusive of joint ventures), a 9% decrease over the 2002 second quarter. Including joint ventures, deliveries were up 3% in California to 649 homes, which reflects strong housing market conditions in most areas of the state. Deliveries were up 4% in Southern California to 494 new homes and flat in Northern California at 155 new homes. In Arizona, new home deliveries were off 15% to 315 new homes. The decrease was due to the timing of new home sales and project openings. Deliveries for the full year in Arizona are expected to be in line with the record 2002 volume levels. Deliveries were up 3% in Texas and down 11% in Colorado, to 119 homes and 74 homes, respectively, with these unit volume levels continuing to reflect slower demand for new housing. The Company delivered 533 new homes in Florida and 132 new homes in the Carolinas for the 2003 second quarter. These delivery levels reflect healthy demand for new homes in these markets. During the second quarter the Company's average home price declined 10% to $293,000. Our consolidated average home price for the full year is expected to be around $300,000 compared to $314,000 in 2002 and reflects the Company's efforts to broaden its price points in its existing markets as well as our expansion into the Southeastern United States where our average price is expected to be approximately $170,000. The average home price in California (exclusive of joint ventures) was up 9% to $512,000. The higher price primarily reflects general increases in new home prices in the state. The average home price in Arizona increased 8% to $185,000 reflecting a change in the mix of new homes delivered. The Company's average home prices in Texas and Colorado were down 5% and 11%, respectively, and primarily reflect a shift in mix to lower priced homes. The Company's average home prices in Florida and the Carolinas were $185,000 and $133,000, respectively, and reflect a product orientation towards the entry level and first-time move-up buyer. The Company's gross margin percentage was up 330 basis points to 20.7%. The increase in the year-over-year gross margin percentage was driven primarily by higher margins in both Southern and Northern California and in Arizona and above average margins in Florida. Margins were off in Texas and Colorado reflecting the impact of slower economic conditions in those regions. For the full year, the Company expects its homebuilding gross margin percentage to be approximately 21% compared to 18.3% last year. The higher gross margin percentage reflects our ability to raise home prices in most of our California and Florida markets and improving margins in Arizona due to volume and cost efficiencies. Selling, general and administrative expenses (including corporate G&A) for the 2003 second quarter were 10.2% of homebuilding revenues compared to 8.7% last year. The increase in SG&A expenses as a percentage of homebuilding revenues was due primarily to the increase in deliveries from markets outside of California, which generally incur higher levels of sales and marketing costs and G&A expense, and to higher incentive compensation expense companywide. We expect that our full year SG&A rate will be approximately 10%. Income from unconsolidated joint ventures was up 255% to $13.9 million driven primarily by an increase in joint venture deliveries from 55 last year to 125 this year and from an increase in joint venture income from land sales to other builders. For the full year we expect to generate approximately $50 million in joint venture income from 575 deliveries and land sales to other builders. New orders for the quarter were up 40% to 2,583 new homes on a 29% increase in average community count. Orders were up 7% even excluding the strong contribution from our 2002 Florida and Carolina acquisitions. The Company's cancellation rate declined for the quarter to 15% versus 17% last year. Orders were off 3% in Southern California on a 11% decline in average new home communities, down 7% in Northern California on a 12% higher community count, up 42% in Arizona on a 15% higher community count, down 15% in Texas on a 25% lower community count and up 21% in Colorado on a 20% increase in community count. For the 2003 second quarter the Company generated 760 net new orders in Florida from 32 active selling communities and 144 orders in the Carolinas from 10 communities. The order trends in California, Arizona, Florida and the Carolinas generally reflect healthy housing market conditions in those regions while the order levels in Texas and Colorado still reflect the impact of generally weak economic conditions on the demand for new housing. During the first half of 2003 the Company opened 39% fewer new communities in its existing markets compared to the same period last year. The record level of new home orders for the second quarter resulted in an all-time high quarter-end backlog of 4,780 presold homes (including 358 joint venture homes) valued at an estimated $1.5 billion (including $183 million of joint venture backlog), an increase of 41% from the June 30, 2002 backlog value. The higher level of orders and backlog was driven primarily by our new Southeastern operations. The Company ended the second quarter with 143 active selling communities, a 31% increase over the year earlier period. The Company is planning to open approximately 50 new communities over the second half of the year compared to 25 last year which would result in a total of approximately 90 new community openings for all of 2003, a 40% to 45% increase over the total number of communities opened in 2002. By the end of 2003 the Company expects to have approximately 155 active subdivisions, which would be a 14% increase over the 2002 year-end community count level. Financial Services Second quarter revenues for the Company's financial services segment, which represents our mortgage banking operations throughout California and in South Florida, were up 79% to $5.5 million compared to $3.1 million last year. The higher level of revenues was driven by a 76% increase in the volume of mortgage loans sold, a slight increase in the profit margin on loans sold and an increase in net interest income. The higher level of loan volume was driven by an increase in our California capture rate to 63% and the commencement of loan originations in South Florida during the third quarter of last year. The higher margin on loans sold benefited from the favorable interest rate environment. Expenses for the financial services segment were up 77% during the quarter and were the result of higher revenue and earnings levels and from expenses incurred in connection with our expansion into the South Florida market. Financial services joint venture income, which is derived from mortgage banking joint ventures with third party financial institutions which operate in conjunction with our homebuilding divisions in Arizona, Texas, Colorado, the Carolinas, and Tampa and Southwestern Florida, was up 70% to $735,000. The higher level of income was primarily due to the addition of the Florida and Carolina joint venture last year through the acquisition of Westfield Homes. FIN 46 In January 2003, the Financial Accounting Standards Board issued FASB Interpretation No. 46 "Consolidation of Variable Interest Entities" ("FIN 46"). Pursuant to FIN 46, an enterprise that is deemed the primary beneficiary of a Variable Interest Entity ("VIE") must consolidate the VIE. VIE's include certain homebuilding and land development joint ventures, and certain entities in which the Company enters into land option contracts and land purchase contracts where it makes a non-refundable deposit. Application of FIN 46 is effective immediately for VIE's in which the Company obtained a variable interest after January 31, 2003 and will be applied during the Company's fiscal quarter ended September 30, 2003 to VIE's in which the Company obtained a variable interest before January 31, 2003. At June 30, 2003, we consolidated four VIE's as a result of entering into contracts to option or purchase lots. Included in the Company's consolidated balance sheet at June 30, 2003 are inventories not owned of $12.3 million, liabilities from inventories not owned of $1.6 million and minority interests of $10.7 million related to VIE's. A conference call to discuss the Company's second quarter earnings will be held at 11:00 a.m. Eastern time today. The call will be broadcast live over the Internet and can be accessed through the Company's website at www.standardpacifichomes.com/investor/investors.asp . The call will also be accessible via telephone by dialing (800) 915-4836. The entire audio transmission with the synchronized slide presentation will also be available on our website for replay within 2 to 3 hours following the live broadcast. A replay of the conference call will also be available by dialing (800) 428-6051 (Code 300033). Standard Pacific, one of the nation's largest homebuilders, has built homes for more than 56,000 families during its 37-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in some of the strongest housing markets in the country with operations in major metropolitan areas in California, Texas, Arizona, Colorado, Florida and the Carolinas. The Company provides mortgage financing and title services to its homebuyers through its subsidiaries and joint ventures, Family Lending Services, SPH Mortgage, WRT Financial, Westfield Home Mortgage, Universal Land Title of South Florida and SPH Title. For more information about the Company and its new home developments please visit our website at: www.standardpacifichomes.com . This news release contains forward-looking statements. These statements include but are not limited to statements regarding: orders and backlog; the strength of the overall housing market and the visibility of our expected operating results for the balance of the year; the Company's strategy of maintaining a three to four year supply of buildable lots; expected new community openings and active sub-divisions at year end; the Company's earnings, deliveries and revenue estimates for the third quarter and full year 2003; the Company's expected SG&A rate for 2003; expected average home prices; the Company's expected homebuilding gross margin percentage for 2003; and expected joint venture income and deliveries for 2003. Forward-looking statements are based on current expectations or beliefs regarding future events or circumstances, and you should not place undue reliance on these statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors -- many of which are out of our control and difficult to forecast -- that may cause actual results to differ materially from those that may be described or implied. Such factors include but are not limited to: local and general economic and market conditions, including consumer confidence, employment rates, interest rates, the cost and availability of mortgage financing, and stock market, home and land valuations; the impact on economic conditions of terrorist attacks or the outbreak or escalation of armed conflict involving the United States; the cost and availability of suitable undeveloped land, building materials and labor; the cost and availability of construction financing and corporate debt and equity capital; the demand for single-family homes; cancellations of purchase contracts by homebuyers; the cyclical and competitive nature of our business; governmental regulation, including the impact of "slow growth" or similar initiatives; delays in the land entitlement process, development, construction, or the opening of new home communities; adverse weather conditions and natural disasters; environmental matters; risks relating to our mortgage banking operations, including hedging activities; future business decisions and our ability to successfully implement our operational, growth and other strategies; litigation and warranty claims; and other risks discussed in our filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2002. We assume no, and hereby disclaim any, obligation to update any of the foregoing or any other forward-looking statements. We nonetheless reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates. * For a definition of EBITDA and a reconciliation of net income to EBITDA and cash flows from operating activities to EBITDA, please see the Selected Financial Data included herewith. STANDARD PACIFIC CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended June 30, Homebuilding: 2003 2002 Revenues $515,197 $444,731 Cost of sales (408,800) (367,185) Gross margin 106,397 77,546 Selling, general and administrative expenses (52,693) (38,612) Income from unconsolidated joint ventures 13,899 3,918 Interest expense (1,831) (1,495) Other income 312 171 Homebuilding pretax income 66,084 41,528 Financial Services: Revenues 5,545 3,092 Expenses (3,554) (2,008) Income from unconsolidated joint ventures 735 433 Other income 68 37 Financial services pretax income 2,794 1,554 Income before taxes 68,878 43,082 Provision for income taxes (26,915) (17,093) Net Income $41,963 $25,989 Earnings Per Share: Basic $1.30 $0.84 Diluted $1.26 $0.81 Weighted Average Common Shares Outstanding: Basic 32,341,042 31,122,042 Diluted 33,347,970 32,219,686 Selected Operating Data Three Months Ended June 30, New homes delivered: 2003 2002 Southern California 406 419 Northern California 118 155 Total California 524 574 Texas 119 116 Arizona 315 372 Colorado 74 83 Florida 533 228 Carolinas 132 -- Consolidated total 1,697 1,373 Unconsolidated joint ventures: Southern California 88 55 Northern California 37 -- Total unconsolidated joint ventures 125 55 Total 1,822 1,428 Average selling price of homes delivered: California (excluding joint ventures) $512,000 $468,000 Texas $271,000 $285,000 Arizona $185,000 $172,000 Colorado $308,000 $345,000 Florida $185,000 $218,000 Carolinas $133,000 $-- Consolidated (excluding joint ventures) $293,000 $324,000 Unconsolidated joint ventures (California) $553,000 $498,000 Total (including joint ventures) $311,000 $330,000 Net new orders: Southern California 561 567 Northern California 184 223 Total California 745 790 Texas 128 150 Arizona 545 383 Colorado 82 68 Florida 760 281 Carolinas 144 -- Consolidated total 2,404 1,672 Unconsolidated joint ventures: Southern California 105 123 Northern California 74 54 Total unconsolidated joint ventures 179 177 Total 2,583 1,849 Average number of selling communities during the period: Southern California 21 22 Northern California 14 14 Texas 18 24 Arizona 23 20 Colorado 12 10 Florida 32 9 Carolinas 10 -- Consolidated total 130 99 Unconsolidated joint ventures: Southern California 4 6 Northern California 5 3 Total unconsolidated joint ventures 9 9 Total 139 108 Selected Operating Data (continued) At June 30, Backlog (in homes): 2003 2002 Southern California 1,201 1,016 Northern California 247 241 Total California 1,448 1,257 Texas 163 190 Arizona 852 743 Colorado 147 103 Florida 1,661 679 Carolinas 151 -- Consolidated total 4,422 2,972 Unconsolidated joint ventures: Southern California 249 122 Northern California 109 78 Total unconsolidated joint ventures 358 200 Total 4,780 3,172 Backlog (estimated dollar value in thousands): Consolidated total $1,333,850 $968,894 Unconsolidated joint ventures (California) 183,374 106,835 Total $1,517,224 $1,075,729 Building sites owned or controlled: Southern California 9,810 5,754 Northern California 3,532 3,015 Total California 13,342 8,769 Texas 2,758 2,591 Arizona 4,671 4,350 Colorado 1,681 1,817 Florida 10,216 3,818 Carolinas 3,300 -- Total 35,968 21,345 Total building sites owned 17,458 13,716 Total building sites optioned 12,267 4,978 Total joint venture lots 6,243 2,651 Total 35,968 21,345 Completed and unsold homes 145 163 Homes under construction 4,237 2,939 Selected Financial Data (Dollars in thousands) Three Months Ended June 30, 2003 2002 Net cash provided by (used in) operating activities(1) $(63,742) $39,733 Net cash provided by (used in) investing activities(1) $8,648 $(123,488) Net cash provided by (used in) financing activities(1) $131,986 $95,042 Adjusted Homebuilding EBITDA(2) $80,252 $57,392 Homebuilding SG&A as a percentage of homebuilding revenues 10.2% 8.7% Homebuilding interest incurred $18,864 $14,744 Homebuilding interest capitalized to inventories owned $17,033 $13,249 Ratio of LTM Adjusted Homebuilding EBITDA to homebuilding interest incurred 4.3x 4.3x _______________________ (1) As determined in accordance with accounting principles generally accepted in the United States. (2) Adjusted Homebuilding EBITDA means net income (plus cash distributions of income from unconsolidated joint ventures) before(a) income taxes, (b) homebuilding interest expense, (c) expensing of previously capitalized interest included in cost of sales, (d) noncash impairment charges, if any, (e) homebuilding depreciation and amortization, (f) income (loss) from unconsolidated joint ventures, and (g) income (loss) from our financial services subsidiary. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to investors as a measure of our ability to service debt and obtain financing. However, it should be noted that Adjusted Homebuilding EBITDA is a non-GAAP financial measure.Due to the significance of the GAAP components excluded, Adjusted Homebuilding EBITDA should not be considered in isolation or as an alternative to net income, cash flow from operations, or any other operating or liquidity performance measure prescribed by accounting principles generally accepted in the United States. The tables set forth below reconcile net cash provided by (used in) operating activities and net income, calculated and presented in accordance with accounting principles generally accepted in the United States, to Adjusted Homebuilding EBITDA: Three Months Ended June 30, 2003 2002 (Dollars in thousands) Net cash provided by (used in) operating activities $(63,742) $39,733 Add: Income taxes 26,915 17,093 Homebuilding interest expense 1,831 1,495 Expensing of previously capitalized interest included in cost of sales 14,590 12,512 Less: Income from our financial services subsidiary 1,991 1,084 Depreciation and amortization from financial services subsidiary 79 41 Net changes in operating assets and liabilities: Mortgages, other notes and receivables (1,037) 1,823 Inventories - owned 146,428 61,287 Inventories - not owned (6,658) (1,406) Deferred income taxes 1,273 5,664 Other assets 2,110 (927) Accounts payable (5,643) (4,751) Accrued liabilities (33,745) (74,006) Adjusted Homebuilding EBITDA $80,252 $57,392 Three Months Ended June 30, 2003 2002 (Dollars in thousands) Net income $41,963 $25,989 Add: Cash distributions of income from unconsolidated joint ventures 10,788 5,186 Income taxes 26,915 17,093 Homebuilding interest expense 1,831 1,495 Expensing of previously capitalized interest included in cost of sales 14,590 12,512 Homebuilding depreciation and amortization 790 552 Less: Income from unconsolidated joint ventures 14,634 4,351 Income from our financial services subsidiary 1,991 1,084 Adjusted Homebuilding EBITDA $80,252 $57,392 Balance Sheet Data (Dollars in thousands, except per share amounts) At June 30, 2003 2002 Stockholders' equity per share $25.88 $21.75 Ratio of net homebuilding debt to total book capitalization 50.3% 47.3% Ratio of net homebuilding debt to LTM Adjusted Homebuilding EBITDA 3.0x 2.7x Homebuilding interest capitalized in inventories owned $39,129 $31,722 Homebuilding interest capitalized as a percentage of inventories owned 2.5% 2.4% STANDARD PACIFIC CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Six Months Ended June 30, Homebuilding: 2003 2002 Revenues $914,930 $730,648 Cost of sales (730,707) (599,532) Gross margin 184,223 131,116 Selling, general and administrative expenses (98,528) (66,317) Income from unconsolidated joint ventures 22,127 7,506 Interest expense (3,487) (2,573) Other income 627 179 Homebuilding pretax income 104,962 69,911 Financial Services: Revenues 9,818 5,698 Expenses (6,677) (3,914) Income from unconsolidated joint ventures 1,389 826 Other income 103 96 Financial services pretax income 4,633 2,706 Income before taxes 109,595 72,617 Provision for income taxes (42,843) (28,839) Net Income $66,752 $43,778 Earnings Per Share: Basic $2.07 $1.45 Diluted $2.01 $1.40 Weighted Average Common Shares Outstanding: Basic 32,254,469 30,272,891 Diluted 33,188,967 31,302,050 Selected Operating Data Six Months Ended June 30, New homes delivered: 2003 2002 Southern California 739 714 Northern California 241 266 Total California 980 980 Texas 229 247 Arizona 643 653 Colorado 111 137 Florida 846 228 Carolinas 239 -- Consolidated total 3,048 2,245 Unconsolidated joint ventures: Southern California 191 77 Northern California 53 -- Total unconsolidated joint ventures 244 77 Total 3,292 2,322 Average selling price of homes delivered: California (excluding joint ventures) $508,000 $460,000 Texas $273,000 $280,000 Arizona $179,000 $174,000 Colorado $310,000 $339,000 Florida $183,000 $218,000 Carolinas $134,000 $-- Consolidated (excluding joint ventures) $294,000 $325,000 Unconsolidated joint ventures (California) $543,000 $516,000 Total (including joint ventures) $312,000 $331,000 Net new orders: Southern California 1,084 1,166 Northern California 331 432 Total California 1,415 1,598 Texas 246 290 Arizona 928 870 Colorado 170 162 Florida 1,473 281 Carolinas 309 -- Consolidated total 4,541 3,201 Unconsolidated joint ventures (California) Southern California 216 192 Northern California 119 78 Total unconsolidated joint ventures 335 270 Total 4,876 3,471 Average number of selling communities during the period: Southern California 22 23 Northern California 14 14 Texas 20 24 Arizona 23 21 Colorado 12 10 Florida 30 5 Carolinas 9 -- Consolidated total 130 97 Unconsolidated joint ventures: Southern California 5 6 Northern California 4 2 Total unconsolidated joint ventures 9 8 Total 139 105 STANDARD PACIFIC CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) June 30, December 31, 2003 2002 (Unaudited) ASSETS Homebuilding: Cash and equivalents $84,263 $22,245 Mortgage notes receivable and accrued interest 5,258 3,682 Other notes and receivables 38,063 34,451 Inventories: Owned 1,576,343 1,291,162 Not owned 70,375 84,601 Investments in and advances to unconsolidated joint ventures 130,813 122,460 Property and equipment, net 7,540 7,524 Deferred income taxes 13,449 18,611 Other assets 23,846 19,097 Goodwill 59,501 58,062 2,009,451 1,661,895 Financial Services: Cash and equivalents 12,908 5,406 Mortgage loans held for sale 72,671 109,861 Other assets 4,645 14,964 90,224 130,231 Total Assets $2,099,675 $1,792,126 LIABILITIES AND STOCKHOLDERS' EQUITY Homebuilding: Accounts payable $68,762 $71,439 Accrued liabilities 143,347 147,677 Trust deed and other notes payable 14,814 16,670 Senior notes payable 772,536 473,469 Senior subordinated notes payable 148,894 148,854 Liabilities from inventories not owned 27,897 46,155 1,176,250 904,264 Financial Services: Accounts payable and other liabilities 1,699 2,116 Mortgage credit facilities 69,258 111,988 70,957 114,104 Total Liabilities 1,247,207 1,018,368 Minority Interests 10,690 -- Stockholders' Equity: Preferred stock, $.01 par value; 10,000,000 shares authorized; none issued -- -- Common stock, $.01 par value; 100,000,000 shares authorized; 32,526,943 and 32,183,630 shares outstanding, respectively 325 322 Additional paid-in capital 376,148 369,723 Retained earnings 465,305 403,713 Total Stockholders' Equity 841,778 773,758 Total Liabilities and Stockholders' Equity $2,099,675 $1,792,126 SOURCE Standard Pacific Corp. -0- 07/25/2003 /CONTACT: Andrew H. Parnes, Senior Vice President of Standard Pacific Corp., +1-949-789-1616/ /Web site: http://www.standardpacifichomes.com/investor/investors.asp / /Web site: http://www.standardpacifichomes.com / (SPF) CO: Standard Pacific Corp. ST: California IN: FIN RLT SU: ERN ERP CCA -----END PRIVACY-ENHANCED MESSAGE-----