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0001193125-09-153206.txt : 20090722
0001193125-09-153206.hdr.sgml : 20090722
20090722170914
ACCESSION NUMBER: 0001193125-09-153206
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20090722
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20090722
DATE AS OF CHANGE: 20090722
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: 09957584
BUSINESS ADDRESS:
STREET 1: 26 TECHNOLOGY DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92618
BUSINESS PHONE: 9497891600
MAIL ADDRESS:
STREET 1: 26 TECHNOLOGY DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92618
8-K
1
d8k.htm
FORM 8-K
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 22, 2009
STANDARD PACIFIC CORP.
(Exact Name of Registrant as Specified in Charter)
|
|
|
|
|
Delaware |
|
1-10959 |
|
33-0475989 |
(State or Other Jurisdiction of Incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
|
|
|
26 Technology Drive Irvine, California |
|
92618 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrants telephone number, including area code: (949) 789-1600
Not Applicable
(Former Name or
Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
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)) |
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 2.02 |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On July 22,
2009, Standard Pacific Corp. (the Company) issued a press release announcing financial results for the quarter ended June 30, 2009 (the Press Release). Attached hereto as Exhibit 99.1 and incorporated by reference herein
is a copy of the Press Release.
ITEM 9.01 |
FINANCIAL STATEMENTS AND EXHIBITS |
|
|
|
EXHIBIT NUMBER |
|
DESCRIPTION |
99.1 |
|
Press Release announcing financial results for the quarter ended June 30, 2009. |
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 22, 2009
|
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|
STANDARD PACIFIC CORP. |
|
|
By: |
|
/s/ JOHN M. STEPHENS |
|
|
John M. Stephens |
|
|
Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
|
|
|
EXHIBIT NUMBER |
|
DESCRIPTION |
99.1 |
|
Press Release announcing financial results for the quarter ended June 30, 2009. |
EX-99.1
2
dex991.htm
PRESS RELEASE
Press Release
Exhibit 99.1
News Release
STANDARD
PACIFIC CORP. REPORTS 2009 SECOND QUARTER RESULTS
IRVINE, CALIFORNIA, July 22, 2009. Standard Pacific Corp. (NYSE:SPF) today announced operating
results for its second quarter ended June 30, 2009. Homebuilding revenues from continuing operations for the 2009 second quarter were $289.7 million, down 29% from $410.6 million last year. The Company generated a net loss of $23.1 million, or
$0.10 per diluted share, versus a net loss of $249.0 million, or $3.44 per diluted share, for the year earlier period. The 2009 second quarter results included asset impairment charges of $21.3 million, of which $13.1 million related to real estate
inventories and $8.2 million related to a joint venture. Impairment related charges for the 2008 second quarter totaled $149.2 million. The 2009 second quarter results also included $5.5 million in restructuring charges and an $8.9
million charge related to the Companys deferred tax asset valuation allowance. Excluding asset impairment and restructuring charges, the Company generated 2009 second quarter net income of approximately $2.2 million*, or $0.01 per diluted
share.*
During the quarter the Company generated $68.6 million of cash flows from operating activities, driven primarily from a $95.3
million decrease in inventories that was largely attributable to a 48% reduction in the number of completed spec homes (excluding podium projects). These cash flows were partially offset by other changes in working capital. The Company reduced its
homebuilding debt during the quarter by $136.0 million (after assuming $25.2 million of secured project debt in connection with a joint venture unwind) and ended the quarter with $573.0 million of homebuilding cash (including $4.2 million of
restricted cash). The debt reduction was driven primarily by the repayment of the remaining $124.6 million balance of the Companys 5 1/8% senior notes and the repayment of $10.0 million of credit facility indebtedness. The Companys homebuilding restricted cash balance decreased by $120.8 million
during the quarter as a result of the Company meeting its bank credit facility cash flow coverage requirement.
The Companys 2009 second
quarter selling, general and administrative (SG&A) expenses decreased $33.1 million, or 42%, from the year earlier period resulting in an SG&A rate of 15.9% versus 19.3% in the prior year period. Excluding restructuring charges,
the Companys 2009 second quarter SG&A rate was 14.3%* versus 19.1%* for the 2008 second quarter despite a 29% decrease in revenues.
Ken
Campbell, President and CEO stated, We are pleased with the progress we have made to date, particularly with respect to reducing our SG&A both in absolute dollars and as a percent of revenues. Our SG&A reductions demonstrate our
ability to vary our costs in line with our sales volumes, a capability that may get tested further if the recession continues for an extended period of time. We are also pleased with the $69 million of cash flows generated from operations during the
quarter that resulted largely from the reduction of our completed spec inventory levels and improved order and delivery activity. These were improvements we told investors we were going to make, so I guess its not a big surprise, but all of us
here at Standard Pacific feel good about our progress to date.
Mr. Campbell added, While we still obviously have not achieved the level
of profitability that we ultimately need, we are a lot closer than we were a couple of quarters ago and believe that we are in pretty good shape in the short run because of our higher backlog level. However, if we need to adjust further, we
will.
Homebuilding Operations
The Company generated a homebuilding pretax loss from continuing operations for the 2009 second quarter of $24.3 million compared to a pretax loss of $185.9 million in the year earlier period. The Companys homebuilding pretax loss
from continuing operations for the 2009 second quarter included $21.3 million of asset impairment charges and $5.3 million in restructuring charges. The decrease in pretax loss was primarily the result of a $127.9 million decrease in impairment
charges, a $33.1 million decrease in the Companys SG&A expenses (which included approximately $4.6 million in restructuring charges related to severance and facilities reductions), a $12.2 million decrease in joint venture loss and a $13.0
million decrease in other expense. These changes were partially offset by a 29% decrease in homebuilding revenues to $289.7 million (due to a 24% decrease in new home deliveries to 942 homes and an 8% decline in our consolidated average home price
to $302,000) and the expensing of $11.7 million of non-capitalized interest expense during the 2009 second quarter.
Gross Margin
The Companys homebuilding gross margin percentage from continuing operations (including land sales) for the 2009 second quarter was 13.5% compared to
a negative 18.5% in the prior year period. The 2009 second quarter gross margin included $13.1 million in inventory impairment charges related to 10 projects. The impairments, which were included in cost of sales, related primarily to four projects
in California totaling $8.2 million. Excluding the housing inventory impairment charges from continuing operations, the Companys 2009 second quarter gross margin from home sales would have been 18.5%* versus 12.9%* for the 2008 second quarter.
The 560 basis point increase in the year-over-year adjusted gross margin was driven primarily by higher margins in California and lower direct construction costs as a result of value engineering and the rebidding of contracts. These factors were
partially offset by lower home prices.
Restructuring
The Companys 2009 second quarter results included approximately $5.3 million in homebuilding restructuring charges related to severance ($3.0 million) and lease terminations and fixed asset write offs ($2.3
million), of which approximately $4.6 million was included in the Companys SG&A expenses and $0.7 million in other expense. Since December 31, 2008, the Company has reduced its total headcount by 33%, or 425 employees.
Net New Orders and Backlog
Net new orders (excluding
joint ventures and discontinued operations) for the 2009 second quarter decreased 6% from the 2008 second quarter to 1,169 new homes on a 29% decrease in the number of average active selling communities from the prior year period. The Companys
cancellation rate for the three months ended June 30, 2009 was 16%, down from 24% for the 2009 first quarter and 25% for the 2008 second quarter. The Companys sales absorption rate for the 2009 second quarter was 2.7 per month per
community, up from the prior year second quarter rate of 2.0 per month per community, and up from 1.5 per month per community for the 2009 first quarter. The improvement in the Companys sales absorption rate during the quarter as
compared to the 2008 second quarter was due to increases in most of its markets on a per community basis with absorption rates particularly stronger in California and Arizona.
As a result of the improved order trends experienced during the 2009 second quarter, the dollar value of the Companys backlog (excluding joint ventures) increased 45% from the 2009 first quarter to $308.5
million, or 982 homes.
Joint Ventures
During the 2009 second quarter the Company unwound one Southern California joint venture for a $1.1 million cash payment and the assumption of approximately $25.2 million of secured project debt. The Company also made
a $9.1 million loan remargin payment related to another Southern California joint venture. As of June 30, 2009, the Companys unconsolidated joint ventures had $361.1 million in outstanding borrowings, $112.1 million of which were recourse
to the Company, and remaining land takedown obligations of approximately $21.1 million related to a single unconsolidated joint venture. In addition, the Company recorded an $8.2 million impairment charge during the quarter related to its remaining
investment in its North Las Vegas joint venture.
Income Taxes
The Company recorded a noncash valuation allowance of $8.9 million against the net deferred tax asset created as a result of the net loss generated during the three months ended June 30, 2009. As of June 30,
2009, the total deferred tax valuation allowance was $682.2 million.
* |
Please see Reconciliation of Non-GAAP Financial Measures on page 10. |
KEY STATISTICS AND FINANCIAL DATA**
|
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|
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|
|
|
|
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|
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|
|
|
|
|
As of or For The Three Months Ended |
|
|
|
June 30, 2009 |
|
|
June 30, 2008 |
|
|
% or Percentage Change |
|
|
March 31, 2009 |
|
|
% or Percentage Change |
|
|
|
(Dollars in thousands, except average selling price) |
|
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries (1) |
|
|
942 |
|
|
|
1,237 |
|
|
(24 |
)% |
|
|
687 |
|
|
37 |
% |
Average selling price (1) |
|
$ |
302,000 |
|
|
$ |
327,000 |
|
|
(8 |
)% |
|
$ |
300,000 |
|
|
1 |
% |
Homebuilding revenues |
|
$ |
289,672 |
|
|
$ |
410,634 |
|
|
(29 |
)% |
|
$ |
209,535 |
|
|
38 |
% |
Gross margin % |
|
|
13.5 |
% |
|
|
(18.5 |
)% |
|
32.0 |
% |
|
|
3.9 |
% |
|
9.6 |
% |
Gross margin % from home sales (excluding impairments) |
|
|
18.5 |
% |
|
|
12.9 |
% |
|
5.6 |
% |
|
|
17.4 |
% |
|
1.1 |
% |
Impairments |
|
$ |
21,270 |
|
|
$ |
149,185 |
|
|
(86 |
)% |
|
$ |
30,805 |
|
|
(31 |
)% |
Restructuring charges |
|
$ |
5,504 |
|
|
$ |
913 |
|
|
503 |
% |
|
$ |
14,119 |
|
|
(61 |
)% |
SG&A % |
|
|
15.9 |
% |
|
|
19.3 |
% |
|
(3.4 |
)% |
|
|
25.0 |
% |
|
(9.1 |
)% |
SG&A % (excluding restructuring charges) |
|
|
14.3 |
% |
|
|
19.1 |
% |
|
(4.8 |
)% |
|
|
19.3 |
% |
|
(5.0 |
)% |
|
|
|
|
|
|
Net new orders (1) |
|
|
1,169 |
|
|
|
1,241 |
|
|
(6 |
)% |
|
|
734 |
|
|
59 |
% |
Monthly sales absorption rate per community (1) |
|
|
2.7 |
|
|
|
2.0 |
|
|
35 |
% |
|
|
1.5 |
|
|
80 |
% |
Cancellation rate (1) |
|
|
16 |
% |
|
|
25 |
% |
|
(9 |
)% |
|
|
24 |
% |
|
(8 |
)% |
Average active selling communities (1) |
|
|
144 |
|
|
|
203 |
|
|
(29 |
)% |
|
|
158 |
|
|
(9 |
)% |
Backlog (homes) (1) |
|
|
982 |
|
|
|
1,515 |
|
|
(35 |
)% |
|
|
689 |
|
|
43 |
% |
Backlog (dollar value) (1) |
|
$ |
308,540 |
|
|
$ |
522,484 |
|
|
(41 |
)% |
|
$ |
212,208 |
|
|
45 |
% |
|
|
|
|
|
|
Cash flows (uses) from operating activities |
|
$ |
68,595 |
|
|
$ |
(62,852 |
) |
|
(209 |
)% |
|
$ |
128,998 |
|
|
(47 |
)% |
Cash flows (uses) from investing activities |
|
$ |
(10,128 |
) |
|
$ |
18,923 |
|
|
(154 |
)% |
|
$ |
(1,500 |
) |
|
575 |
% |
Cash flows (uses) from financing activities |
|
$ |
(32,681 |
) |
|
$ |
278,151 |
|
|
(112 |
)% |
|
$ |
(204,723 |
) |
|
(84 |
)% |
Land purchases, net |
|
$ |
7,857 |
|
|
$ |
19,819 |
|
|
(60 |
)% |
|
$ |
680 |
|
|
1055 |
% |
Adjusted Homebuilding EBITDA (2) |
|
$ |
33,139 |
|
|
$ |
(10,859 |
) |
|
(405 |
)% |
|
$ |
7,260 |
|
|
356 |
% |
|
|
|
|
As of |
|
|
|
June 30, 2009 |
|
|
March 31, 2009 |
|
|
% or Percentage Change |
|
|
December 31, 2008 |
|
|
% or Percentage Change |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding cash (including restricted cash) |
|
$ |
573,038 |
|
|
$ |
668,300 |
|
|
(14 |
)% |
|
$ |
626,379 |
|
|
(9 |
)% |
Inventories owned |
|
$ |
1,115,556 |
|
|
$ |
1,195,483 |
|
|
(7 |
)% |
|
$ |
1,262,521 |
|
|
(12 |
)% |
Building sites owned or controlled |
|
|
22,012 |
|
|
|
22,775 |
|
|
(3 |
)% |
|
|
24,136 |
|
|
(9 |
)% |
Homes under construction (1) |
|
|
1,041 |
|
|
|
999 |
|
|
4 |
% |
|
|
1,326 |
|
|
(21 |
)% |
Completed specs (excluding podium projects) (1) |
|
|
258 |
|
|
|
500 |
|
|
(48 |
)% |
|
|
589 |
|
|
(56 |
)% |
Completed specs - podium projects (1) |
|
|
193 |
|
|
|
104 |
|
|
86 |
% |
|
|
|
|
|
|
|
Deferred tax asset valuation allowance |
|
$ |
682,186 |
|
|
$ |
673,274 |
|
|
1 |
% |
|
$ |
654,107 |
|
|
4 |
% |
Homebuilding debt |
|
$ |
1,275,300 |
|
|
$ |
1,411,290 |
|
|
(10 |
)% |
|
$ |
1,486,437 |
|
|
(14 |
)% |
Joint venture recourse debt |
|
$ |
112,141 |
|
|
$ |
157,492 |
|
|
(29 |
)% |
|
$ |
173,894 |
|
|
(36 |
)% |
Stockholders equity |
|
$ |
346,512 |
|
|
$ |
361,028 |
|
|
(4 |
)% |
|
$ |
407,941 |
|
|
(15 |
)% |
Stockholders equity per share (including as-converted preferred stock) (3) |
|
$ |
1.44 |
|
|
$ |
1.50 |
|
|
(4 |
)% |
|
$ |
1.70 |
|
|
(15 |
)% |
Total debt to book capitalization (4) |
|
|
79.3 |
% |
|
|
80.2 |
% |
|
(0.9 |
)% |
|
|
79.2 |
% |
|
0.1 |
% |
Adjusted net homebuilding debt to book capitalization (5) |
|
|
67.1 |
% |
|
|
67.4 |
% |
|
(0.3 |
)% |
|
|
68.0 |
% |
|
(0.9 |
)% |
** |
Please see Notes to Key Statistics and Financial Data beginning on page 11. |
Earnings Conference Call
A conference call to discuss the Companys 2009 second quarter will be held at 1:00 p.m. Eastern Time Thursday, July 23, 2009. The call will be broadcast live over the Internet and can be accessed through the Companys
website at http://standardpacifichomes.com/ir. The call will also be accessible via telephone by dialing (888) 791-4315 (domestic) or (913) 981-5567 (international); Passcode: 5410511. The entire audio transmission with the
synchronized slide presentation will be available on our website for replay within 2 to 3 hours following the live broadcast, and can be accessed by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international); Passcode: 5410511.
About Standard Pacific
Standard Pacific, one of the
nations largest homebuilders, has built more than 105,000 homes during its 43-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the
largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada. The Company provides mortgage financing and title services to its homebuyers through
Standard Pacific Mortgage 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: our ability to align our cost structure with demand for new homes; trends in new home
orders and deliveries; our progress toward achieving profitability; and orders and backlog. Forward-looking statements are based on our 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 the Companys 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; our significant amount of debt and the impact of restrictive covenants in our credit agreements, public notes, and private term loans and
our ability to comply with their covenants and repay such debt as it comes due; a negative change in our credit rating or outlook; the demand for and affordability of single-family homes; the supply of housing for sale; cancellations of purchase
contracts by homebuyers; the cyclical and competitive nature of the Companys 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 the Companys mortgage banking operations; future business decisions and the Companys ability
to successfully implement the Companys operational and other strategies; litigation and warranty claims; and other risks discussed in the Companys filings with the Securities and Exchange Commission, including in the Companys
Annual Report on Form 10-K for the year ended Dec. 31, 2008 and subsequent Quarterly Reports on Form 10-Q. The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements. The
Company nonetheless reserves 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.
Contact:
John Stephens, SVP & CFO (949) 789-1641, jstephens@stanpac.com or
Lloyd McKibbin, SVP & Treasurer (949) 789-1603, lmckibbin@stanpac.com.
###
(Note: Tables follow)
STANDARD PACIFIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(2008 as Adjusted(1))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2009 |
|
|
2008 |
|
|
% Change |
|
|
2009 |
|
|
2008 |
|
|
% Change |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sale revenues |
|
$ |
284,206 |
|
|
$ |
404,678 |
|
|
(30 |
)% |
|
$ |
490,439 |
|
|
$ |
750,666 |
|
|
(35 |
)% |
Land sale revenues |
|
|
5,466 |
|
|
|
5,956 |
|
|
(8 |
)% |
|
|
8,768 |
|
|
|
8,211 |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
289,672 |
|
|
|
410,634 |
|
|
(29 |
)% |
|
|
499,207 |
|
|
|
758,877 |
|
|
(34 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of home sales |
|
|
(244,868 |
) |
|
|
(479,690 |
) |
|
(49 |
)% |
|
|
(441,570 |
) |
|
|
(914,032 |
) |
|
(52 |
)% |
Cost of land sales |
|
|
(5,696 |
) |
|
|
(6,834 |
) |
|
(17 |
)% |
|
|
(10,431 |
) |
|
|
(38,329 |
) |
|
(73 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of sales |
|
|
(250,564 |
) |
|
|
(486,524 |
) |
|
(48 |
)% |
|
|
(452,001 |
) |
|
|
(952,361 |
) |
|
(53 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
39,108 |
|
|
|
(75,890 |
) |
|
(152 |
)% |
|
|
47,206 |
|
|
|
(193,484 |
) |
|
(124 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin % |
|
|
13.5 |
% |
|
|
(18.5 |
)% |
|
|
|
|
|
9.5 |
% |
|
|
(25.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(46,026 |
) |
|
|
(79,135 |
) |
|
(42 |
)% |
|
|
(98,405 |
) |
|
|
(158,579 |
) |
|
(38 |
)% |
Loss from unconsolidated joint ventures |
|
|
(5,578 |
) |
|
|
(17,817 |
) |
|
(69 |
)% |
|
|
(2,489 |
) |
|
|
(38,385 |
) |
|
(94 |
)% |
Interest expense |
|
|
(11,735 |
) |
|
|
|
|
|
|
|
|
|
(22,776 |
) |
|
|
|
|
|
|
|
Other income (expense) |
|
|
(61 |
) |
|
|
(13,098 |
) |
|
(100 |
)% |
|
|
4,363 |
|
|
|
(12,543 |
) |
|
(135 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding pretax loss |
|
|
(24,292 |
) |
|
|
(185,940 |
) |
|
(87 |
)% |
|
|
(72,101 |
) |
|
|
(402,991 |
) |
|
(82 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
4,283 |
|
|
|
2,164 |
|
|
98 |
% |
|
|
6,333 |
|
|
|
8,405 |
|
|
(25 |
)% |
Expenses |
|
|
(3,261 |
) |
|
|
(3,514 |
) |
|
(7 |
)% |
|
|
(6,256 |
) |
|
|
(7,957 |
) |
|
(21 |
)% |
Income from unconsolidated joint ventures |
|
|
119 |
|
|
|
172 |
|
|
(31 |
)% |
|
|
119 |
|
|
|
375 |
|
|
(68 |
)% |
Other income |
|
|
48 |
|
|
|
53 |
|
|
(9 |
)% |
|
|
89 |
|
|
|
111 |
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services pretax income (loss) |
|
|
1,189 |
|
|
|
(1,125 |
) |
|
(206 |
)% |
|
|
285 |
|
|
|
934 |
|
|
(69 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes |
|
|
(23,103 |
) |
|
|
(187,065 |
) |
|
(88 |
)% |
|
|
(71,816 |
) |
|
|
(402,057 |
) |
|
(82 |
)% |
Provision for income taxes |
|
|
(10 |
) |
|
|
(61,186 |
) |
|
(100 |
)% |
|
|
(265 |
) |
|
|
(61,870 |
) |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
|
(23,113 |
) |
|
|
(248,251 |
) |
|
(91 |
)% |
|
|
(72,081 |
) |
|
|
(463,927 |
) |
|
(84 |
)% |
Loss from discontinued operations, net of income taxes |
|
|
(20 |
) |
|
|
(745 |
) |
|
(97 |
)% |
|
|
(524 |
) |
|
|
(1,936 |
) |
|
(73 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(23,133 |
) |
|
|
(248,996 |
) |
|
(91 |
)% |
|
|
(72,605 |
) |
|
|
(465,863 |
) |
|
(84 |
)% |
Less: Net loss allocated to preferred stockholders |
|
|
14,191 |
|
|
|
|
|
|
|
|
|
|
44,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to common stockholders |
|
$ |
(8,942 |
) |
|
$ |
(248,996 |
) |
|
(96 |
)% |
|
$ |
(28,032 |
) |
|
$ |
(465,863 |
) |
|
(94 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.10 |
) |
|
$ |
(3.43 |
) |
|
(97 |
)% |
|
$ |
(0.30 |
) |
|
$ |
(6.41 |
) |
|
(95 |
)% |
Discontinued operations |
|
|
|
|
|
|
(0.01 |
) |
|
(100 |
)% |
|
|
|
|
|
|
(0.03 |
) |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.10 |
) |
|
$ |
(3.44 |
) |
|
(97 |
)% |
|
$ |
(0.30 |
) |
|
$ |
(6.44 |
) |
|
(95 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.10 |
) |
|
$ |
(3.43 |
) |
|
(97 |
)% |
|
$ |
(0.30 |
) |
|
$ |
(6.41 |
) |
|
(95 |
)% |
Discontinued operations |
|
|
|
|
|
|
(0.01 |
) |
|
(100 |
)% |
|
|
|
|
|
|
(0.03 |
) |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share |
|
$ |
(0.10 |
) |
|
$ |
(3.44 |
) |
|
(97 |
)% |
|
$ |
(0.30 |
) |
|
$ |
(6.44 |
) |
|
(95 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
93,134,612 |
|
|
|
72,418,288 |
|
|
29 |
% |
|
|
92,959,116 |
|
|
|
72,361,505 |
|
|
28 |
% |
Diluted |
|
|
240,947,398 |
|
|
|
72,418,288 |
|
|
233 |
% |
|
|
240,771,902 |
|
|
|
72,361,505 |
|
|
233 |
% |
(1) |
Certain 2008 amounts have been retroactively adjusted to reflect the adoption of APB No. 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash
upon Conversion (Including Partial Cash Settlement). |
STANDARD PACIFIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share
amounts)
(2008 as Adjusted(1))
|
|
|
|
|
|
|
|
|
|
|
June 30, 2009 |
|
|
December 31, 2008 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
568,816 |
|
|
$ |
622,157 |
|
Restricted cash |
|
|
4,222 |
|
|
|
4,222 |
|
Trade and other receivables |
|
|
19,831 |
|
|
|
21,008 |
|
Inventories: |
|
|
|
|
|
|
|
|
Owned |
|
|
1,115,556 |
|
|
|
1,262,521 |
|
Not owned |
|
|
35,815 |
|
|
|
42,742 |
|
Investments in unconsolidated joint ventures |
|
|
50,850 |
|
|
|
50,468 |
|
Deferred income taxes |
|
|
10,715 |
|
|
|
14,122 |
|
Other assets |
|
|
22,990 |
|
|
|
145,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,828,795 |
|
|
|
2,162,807 |
|
|
|
|
|
|
|
|
|
|
Financial Services: |
|
|
|
|
|
|
|
|
Cash and equivalents |
|
|
5,583 |
|
|
|
3,681 |
|
Restricted cash |
|
|
2,745 |
|
|
|
4,295 |
|
Mortgage loans held for sale |
|
|
58,393 |
|
|
|
63,960 |
|
Mortgage loans held for investment |
|
|
10,337 |
|
|
|
11,736 |
|
Other assets |
|
|
5,964 |
|
|
|
4,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
83,022 |
|
|
|
88,464 |
|
|
|
|
|
|
|
|
|
|
Assets of discontinued operations |
|
|
331 |
|
|
|
1,217 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
1,912,148 |
|
|
$ |
2,252,488 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
22,301 |
|
|
$ |
40,225 |
|
Accrued liabilities |
|
|
182,509 |
|
|
|
216,418 |
|
Liabilities from inventories not owned |
|
|
24,409 |
|
|
|
24,929 |
|
Revolving credit facility |
|
|
22,870 |
|
|
|
47,500 |
|
Secured project debt and other notes payable |
|
|
95,960 |
|
|
|
111,214 |
|
Senior notes payable |
|
|
1,030,702 |
|
|
|
1,204,501 |
|
Senior subordinated notes payable |
|
|
125,768 |
|
|
|
123,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,504,519 |
|
|
|
1,768,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services: |
|
|
|
|
|
|
|
|
Accounts payable and other liabilities |
|
|
2,298 |
|
|
|
3,657 |
|
Mortgage credit facilities |
|
|
55,640 |
|
|
|
63,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
57,938 |
|
|
|
67,312 |
|
|
|
|
|
|
|
|
|
|
Liabilities of discontinued operations |
|
|
1,114 |
|
|
|
1,331 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
1,563,571 |
|
|
|
1,836,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Stockholders Equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares issued and outstanding at June 30, 2009 and
December 31, 2008, respectively |
|
|
5 |
|
|
|
5 |
|
Common stock, $0.01 par value; 600,000,000 shares authorized; 101,110,072 and 100,624,350 shares issued and outstanding at June 30, 2009
and December 31, 2008, respectively |
|
|
1,011 |
|
|
|
1,006 |
|
Additional paid-in capital |
|
|
1,002,227 |
|
|
|
996,492 |
|
Accumulated deficit |
|
|
(639,447 |
) |
|
|
(566,842 |
) |
Accumulated other comprehensive loss, net of tax |
|
|
(17,284 |
) |
|
|
(22,720 |
) |
|
|
|
|
|
|
|
|
|
Total Stockholders Equity |
|
|
346,512 |
|
|
|
407,941 |
|
Noncontrolling Interests |
|
|
2,065 |
|
|
|
7,895 |
|
|
|
|
|
|
|
|
|
|
Total Equity |
|
|
348,577 |
|
|
|
415,836 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
1,912,148 |
|
|
$ |
2,252,488 |
|
|
|
|
|
|
|
|
|
|
(1) |
Certain 2008 amounts have been retroactively adjusted to reflect the adoption of APB No. 14-1, Accounting for Convertible Debt Instruments That May be Settled in Cash
upon Conversion (Including Partial Cash Settlement). |
REGIONAL OPERATING DATA
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
2009 |
|
2008 |
|
% Change |
|
New homes delivered: |
|
|
|
|
|
|
|
|
|
California |
|
|
383 |
|
|
469 |
|
(18 |
)% |
Arizona |
|
|
62 |
|
|
149 |
|
(58 |
)% |
Texas (1) |
|
|
118 |
|
|
176 |
|
(33 |
)% |
Colorado |
|
|
46 |
|
|
72 |
|
(36 |
)% |
Nevada |
|
|
6 |
|
|
12 |
|
(50 |
)% |
Florida |
|
|
208 |
|
|
224 |
|
(7 |
)% |
Carolinas |
|
|
119 |
|
|
135 |
|
(12 |
)% |
|
|
|
|
|
|
|
|
|
|
Consolidated total |
|
|
942 |
|
|
1,237 |
|
(24 |
)% |
Unconsolidated joint ventures |
|
|
58 |
|
|
57 |
|
2 |
% |
Discontinued operations |
|
|
|
|
|
46 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
Total (including joint ventures) |
|
|
1,000 |
|
|
1,340 |
|
(25 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling prices of homes delivered: |
|
|
|
|
|
|
|
|
|
California |
|
$ |
403,000 |
|
$ |
442,000 |
|
(9 |
)% |
Arizona |
|
|
203,000 |
|
|
236,000 |
|
(14 |
)% |
Texas (1) |
|
|
293,000 |
|
|
280,000 |
|
5 |
% |
Colorado |
|
|
303,000 |
|
|
374,000 |
|
(19 |
)% |
Nevada |
|
|
222,000 |
|
|
280,000 |
|
(21 |
)% |
Florida |
|
|
195,000 |
|
|
215,000 |
|
(9 |
)% |
Carolinas |
|
|
224,000 |
|
|
258,000 |
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
Consolidated (excluding joint ventures) |
|
|
302,000 |
|
|
327,000 |
|
(8 |
)% |
Unconsolidated joint ventures |
|
|
513,000 |
|
|
468,000 |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
Total continuing operations (including joint ventures) |
|
$ |
314,000 |
|
$ |
333,000 |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations (including joint ventures) |
|
$ |
|
|
$ |
195,000 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
2009 |
|
2008 |
|
% Change |
|
|
% Change Same Store |
|
Net new orders: |
|
|
|
|
|
|
|
|
|
|
California |
|
499 |
|
488 |
|
2 |
% |
|
33 |
% |
Arizona |
|
116 |
|
139 |
|
(17 |
)% |
|
48 |
% |
Texas (1) |
|
131 |
|
164 |
|
(20 |
)% |
|
33 |
% |
Colorado |
|
32 |
|
39 |
|
(18 |
)% |
|
9 |
% |
Nevada |
|
8 |
|
12 |
|
(33 |
)% |
|
0 |
% |
Florida |
|
249 |
|
252 |
|
(1 |
)% |
|
45 |
% |
Carolinas |
|
134 |
|
147 |
|
(9 |
)% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
Consolidated total |
|
1,169 |
|
1,241 |
|
(6 |
)% |
|
33 |
% |
Unconsolidated joint ventures |
|
89 |
|
69 |
|
29 |
% |
|
93 |
% |
Discontinued operations |
|
|
|
25 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (including joint ventures) |
|
1,258 |
|
1,335 |
|
(6 |
)% |
|
35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of selling communities during the period: |
|
|
|
|
|
|
|
|
|
|
California |
|
53 |
|
69 |
|
(23 |
)% |
|
|
|
Arizona |
|
9 |
|
16 |
|
(44 |
)% |
|
|
|
Texas (1) |
|
18 |
|
30 |
|
(40 |
)% |
|
|
|
Colorado |
|
6 |
|
8 |
|
(25 |
)% |
|
|
|
Nevada |
|
2 |
|
3 |
|
(33 |
)% |
|
|
|
Florida |
|
32 |
|
47 |
|
(32 |
)% |
|
|
|
Carolinas |
|
24 |
|
30 |
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total |
|
144 |
|
203 |
|
(29 |
)% |
|
|
|
Unconsolidated joint ventures |
|
8 |
|
12 |
|
(33 |
)% |
|
|
|
Discontinued operations |
|
|
|
2 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (including joint ventures) |
|
152 |
|
217 |
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Texas excludes the San Antonio division, which is classified as a discontinued operation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, |
|
|
|
2009 |
|
2008 |
|
% Change |
|
Backlog ($ in thousands): |
|
Homes |
|
Dollar Value |
|
Homes |
|
Dollar Value |
|
Homes |
|
|
Dollar Value |
|
California |
|
381 |
|
$ |
164,807 |
|
479 |
|
$ |
247,050 |
|
(20 |
)% |
|
(33 |
)% |
Arizona |
|
98 |
|
|
21,144 |
|
172 |
|
|
42,212 |
|
(43 |
)% |
|
(50 |
)% |
Texas (1) |
|
123 |
|
|
37,618 |
|
267 |
|
|
82,098 |
|
(54 |
)% |
|
(54 |
)% |
Colorado |
|
63 |
|
|
19,432 |
|
111 |
|
|
38,681 |
|
(43 |
)% |
|
(50 |
)% |
Nevada |
|
4 |
|
|
917 |
|
21 |
|
|
6,037 |
|
(81 |
)% |
|
(85 |
)% |
Florida |
|
207 |
|
|
39,843 |
|
313 |
|
|
68,688 |
|
(34 |
)% |
|
(42 |
)% |
Carolinas |
|
106 |
|
|
24,779 |
|
152 |
|
|
37,718 |
|
(30 |
)% |
|
(34 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total |
|
982 |
|
|
308,540 |
|
1,515 |
|
|
522,484 |
|
(35 |
)% |
|
(41 |
)% |
Unconsolidated joint ventures |
|
22 |
|
|
17,706 |
|
66 |
|
|
46,201 |
|
(67 |
)% |
|
(62 |
)% |
Discontinued operations |
|
|
|
|
|
|
6 |
|
|
1,183 |
|
(100 |
)% |
|
(100 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (including joint ventures) |
|
1,004 |
|
$ |
326,246 |
|
1,587 |
|
$ |
569,868 |
|
(37 |
)% |
|
(43 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Texas excludes the San Antonio division, which is classified as a discontinued operation. |
|
|
|
|
|
|
|
|
|
|
At June 30, |
|
|
|
2009 |
|
2008 |
|
% Change |
|
Building sites owned or controlled: |
|
|
|
|
|
|
|
Building sites owned |
|
17,508 |
|
21,000 |
|
(17 |
)% |
Building sites optioned or subject to contract |
|
2,413 |
|
3,843 |
|
(37 |
)% |
Joint venture lots |
|
2,089 |
|
4,272 |
|
(51 |
)% |
|
|
|
|
|
|
|
|
Total continuing operations (including joint ventures) |
|
22,010 |
|
29,115 |
|
(24 |
)% |
Discontinued operations |
|
2 |
|
20 |
|
(90 |
)% |
|
|
|
|
|
|
|
|
Total |
|
22,012 |
|
29,135 |
|
(24 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Total homes under construction (including specs): |
|
|
|
|
|
|
|
Consolidated (excluding podium projects) |
|
1,041 |
|
2,248 |
|
(54 |
)% |
Podium projects |
|
|
|
134 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
Total consolidated |
|
1,041 |
|
2,382 |
|
(56 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Spec homes under construction: |
|
|
|
|
|
|
|
Consolidated (excluding podium projects) |
|
480 |
|
1,009 |
|
(52 |
)% |
Podium projects |
|
|
|
134 |
|
(100 |
)% |
|
|
|
|
|
|
|
|
Total consolidated |
|
480 |
|
1,143 |
|
(58 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Completed and unsold homes: |
|
|
|
|
|
|
|
Consolidated (excluding podium projects) |
|
258 |
|
421 |
|
(39 |
)% |
Podium projects |
|
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated |
|
451 |
|
421 |
|
7 |
% |
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The table set forth below reconciles the Companys earnings (loss) for the three months ended June 30, 2009 and 2008 to earnings (loss) excluding the after-tax
impairment, restructuring and deferred tax asset valuation charges:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
2009 |
|
|
2008 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Net income (loss) |
|
$ |
(23,133 |
) |
|
$ |
(248,996 |
) |
Add: Impairment charges, net of income taxes |
|
|
13,081 |
|
|
|
93,539 |
|
Add: Restructuring charges, net of income taxes |
|
|
3,384 |
|
|
|
572 |
|
Add: Deferred tax asset charge |
|
|
8,912 |
|
|
|
130,871 |
|
Add: Loss on early extinguishment of debt |
|
|
|
|
|
|
9,144 |
|
|
|
|
|
|
|
|
|
|
Net income (loss), as adjusted |
|
$ |
2,244 |
|
|
$ |
(14,870 |
) |
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
|
$ |
0.01 |
|
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
|
|
240,947,398 |
|
|
|
72,418,288 |
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Companys homebuilding gross margin percentage and gross margin
percentage from home sales for the three months ended June 30, 2009 and 2008, and March 31, 2009, excluding housing inventory impairment charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2009 |
|
|
Gross Margin % |
|
|
June 30, 2008 |
|
|
Gross Margin % |
|
|
March 31, 2009 |
|
|
Gross Margin % |
|
|
|
(Dollars in thousands) |
|
Homebuilding gross margin |
|
$ |
39,108 |
|
|
13.5 |
% |
|
$ |
(75,890 |
) |
|
(18.5 |
)% |
|
$ |
8,098 |
|
|
3.9 |
% |
Less: Land sale revenues |
|
|
(5,466 |
) |
|
|
|
|
|
(5,956 |
) |
|
|
|
|
|
(3,302 |
) |
|
|
|
Add: Cost of land sales |
|
|
5,696 |
|
|
|
|
|
|
6,834 |
|
|
|
|
|
|
4,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin from home sales |
|
|
39,338 |
|
|
13.8 |
% |
|
|
(75,012 |
) |
|
(18.5 |
)% |
|
|
9,531 |
|
|
4.6 |
% |
Add: Housing inventory impairment charges |
|
|
13,129 |
|
|
|
|
|
|
127,386 |
|
|
|
|
|
|
26,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin from home sales, as adjusted |
|
$ |
52,467 |
|
|
18.5 |
% |
|
$ |
52,374 |
|
|
12.9 |
% |
|
$ |
35,863 |
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles the Companys SG&A rate for the three months ended June 30,
2009 and 2008, and March 31, 2009 to the SG&A rate excluding restructuring charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2009 |
|
|
SG&A% |
|
|
June 30, 2008 |
|
|
SG&A% |
|
|
March 31, 2009 |
|
|
SG&A% |
|
|
|
(Dollars in thousands) |
|
Selling, general and administrative expenses |
|
$ |
46,026 |
|
|
15.9 |
% |
|
$ |
79,135 |
|
|
19.3 |
% |
|
$ |
52,379 |
|
|
25.0 |
% |
Less: Restructuring charges |
|
|
(4,650 |
) |
|
(1.6 |
)% |
|
|
(569 |
) |
|
(0.2 |
)% |
|
|
(12,001 |
) |
|
(5.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, excluding restructuring charges |
|
$ |
41,376 |
|
|
14.3 |
% |
|
$ |
78,566 |
|
|
19.1 |
% |
|
$ |
40,378 |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that the measures described above, which exclude the effect of impairment, tax valuation and restructuring charges, and loss on early extinguishment of debt, are useful to investors as they provide investors with a perspective on
the underlying operating performance of the business by isolating the impact of charges related to impairments, tax valuation and restructuring charges, and loss on early extinguishment of debt. However, it should be noted that such measures are not
GAAP financial measures. Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP.
NOTES TO KEY STATISTICS AND FINANCIAL DATA
(1) |
Excludes unconsolidated joint ventures and discontinued operations. |
(2) |
Adjusted Homebuilding EBITDA means net income (loss) (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) impairment charges, (e) homebuilding depreciation and amortization, (f) amortization of stock-based compensation, (g) income
(loss) from unconsolidated joint ventures and (h) income (loss) from 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 one measure of the Companys ability to service debt and obtain financing. However, it should be noted that Adjusted Homebuilding EBITDA is not a U.S. generally accepted accounting principles
(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 GAAP. |
For the three and twelve months ended June 30, 2009 and 2008, and
three months ended March 31, 2009, EBITDA and Adjusted Homebuilding EBITDA from continuing and discontinued operations was calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
LTM Ended June 30, |
|
|
|
June 30, 2009 |
|
|
June 30, 2008 |
|
|
March 31, 2009 |
|
|
2009 |
|
|
2008 |
|
|
|
(Dollars in thousands) |
|
Net income (loss) |
|
$ |
(23,133 |
) |
|
$ |
(248,996 |
) |
|
$ |
(49,472 |
) |
|
$ |
(840,357 |
) |
|
$ |
(1,026,533 |
) |
Provision (benefit) for income taxes |
|
|
|
|
|
|
60,769 |
|
|
|
|
|
|
|
(67,564 |
) |
|
|
390 |
|
Homebuilding interest amortized to cost of sales and interest expense |
|
|
33,590 |
|
|
|
20,689 |
|
|
|
25,718 |
|
|
|
123,606 |
|
|
|
115,876 |
|
Homebuilding depreciation and amortization |
|
|
711 |
|
|
|
1,613 |
|
|
|
824 |
|
|
|
4,122 |
|
|
|
7,326 |
|
Amortization of stock-based compensation |
|
|
4,079 |
|
|
|
1,002 |
|
|
|
1,529 |
|
|
|
11,560 |
|
|
|
18,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
15,247 |
|
|
|
(164,923 |
) |
|
|
(21,401 |
) |
|
|
(768,633 |
) |
|
|
(884,267 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions of income from unconsolidated joint ventures |
|
|
326 |
|
|
|
185 |
|
|
|
|
|
|
|
1,759 |
|
|
|
7,155 |
|
Impairment charges |
|
|
13,129 |
|
|
|
134,884 |
|
|
|
30,805 |
|
|
|
741,025 |
|
|
|
844,582 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated joint ventures |
|
|
(5,459 |
) |
|
|
(17,645 |
) |
|
|
3,089 |
|
|
|
(115,235 |
) |
|
|
(156,502 |
) |
Income (loss) from financial services subsidiary |
|
|
1,022 |
|
|
|
(1,350 |
) |
|
|
(945 |
) |
|
|
(443 |
) |
|
|
(269 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA |
|
$ |
33,139 |
|
|
$ |
(10,859 |
) |
|
$ |
7,260 |
|
|
$ |
89,829 |
|
|
$ |
124,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table set forth below reconciles net cash provided by (used in) operating activities, from
continuing and discontinued operations, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
LTM Ended June 30, |
|
|
|
June 30, 2009 |
|
|
June 30, 2008 |
|
|
March 31, 2009 |
|
|
2009 |
|
|
2008 |
|
|
|
(Dollars in thousands) |
|
Net cash provided by (used in) operating activities |
|
$ |
68,595 |
|
|
$ |
(62,852 |
) |
|
$ |
128,998 |
|
|
$ |
294,714 |
|
|
$ |
499,385 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
|
|
|
|
60,769 |
|
|
|
|
|
|
|
(67,564 |
) |
|
|
390 |
|
Deferred tax valuation allowance |
|
|
(8,913 |
) |
|
|
(130,871 |
) |
|
|
(19,167 |
) |
|
|
(287,090 |
) |
|
|
(395,097 |
) |
Homebuilding interest amortized to cost of sales and interest expense |
|
|
33,590 |
|
|
|
20,689 |
|
|
|
25,718 |
|
|
|
123,606 |
|
|
|
115,876 |
|
Excess tax benefits from share-based payment arrangements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28 |
|
Gain (loss) on early extinguishment of debt |
|
|
55 |
|
|
|
(9,144 |
) |
|
|
5,333 |
|
|
|
5,388 |
|
|
|
(5,254 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from financial services subsidiary |
|
|
1,022 |
|
|
|
(1,350 |
) |
|
|
(945 |
) |
|
|
(443 |
) |
|
|
(269 |
) |
Depreciation and amortization from financial services subsidiary |
|
|
171 |
|
|
|
203 |
|
|
|
175 |
|
|
|
719 |
|
|
|
832 |
|
Loss on disposal of property and equipment |
|
|
675 |
|
|
|
|
|
|
|
663 |
|
|
|
4,130 |
|
|
|
1,439 |
|
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(7,666 |
) |
|
|
396 |
|
|
|
6,393 |
|
|
|
(11,654 |
) |
|
|
(1,230 |
) |
Mortgage loans held for sale |
|
|
8,854 |
|
|
|
(9,020 |
) |
|
|
(15,799 |
) |
|
|
10,478 |
|
|
|
(36,850 |
) |
Inventories-owned |
|
|
(95,734 |
) |
|
|
49,968 |
|
|
|
(41,822 |
) |
|
|
(258,149 |
) |
|
|
(214,539 |
) |
Inventories-not owned |
|
|
460 |
|
|
|
29 |
|
|
|
678 |
|
|
|
115 |
|
|
|
(5,554 |
) |
Deferred income taxes |
|
|
8,913 |
|
|
|
26,108 |
|
|
|
19,167 |
|
|
|
284,877 |
|
|
|
122,638 |
|
Other assets |
|
|
1,599 |
|
|
|
32,910 |
|
|
|
(120,274 |
) |
|
|
(78,323 |
) |
|
|
14,615 |
|
Accounts payable |
|
|
10,336 |
|
|
|
3,340 |
|
|
|
7,793 |
|
|
|
44,681 |
|
|
|
14,126 |
|
Accrued liabilities |
|
|
14,918 |
|
|
|
5,672 |
|
|
|
10,135 |
|
|
|
33,156 |
|
|
|
17,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Homebuilding EBITDA |
|
$ |
33,139 |
|
|
$ |
(10,859 |
) |
|
$ |
7,260 |
|
|
$ |
89,829 |
|
|
$ |
124,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO KEY STATISTICS AND FINANCIAL DATA (Continued)
(3) |
The pro forma common shares outstanding include the as-converted Series B Preferred Stock. In addition, this calculation excludes 7.8 million shares issued under a share
lending agreement related to the Companys 6% Convertible Senior Subordinated Notes issued on September 28, 2007. The Company believes that the pro forma stockholders equity per common share information is useful to investors as a
measure to determine the book value per common share after giving effect of the issuance of Preferred Shares assuming full conversion to common stock and excluding shares outstanding under the share lending agreement. This is a non-GAAP financial
measure and due to the significance of items adjusted and excluded from this calculation, such measure should not be considered in isolation or as an alternative to operating performance measures. The following table reconciles actual common shares
outstanding to pro forma common shares outstanding and calculates pro forma stockholders equity per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2009 |
|
|
March 31, 2009 |
|
|
December 31, 2008 |
|
Actual common shares outstanding |
|
|
101,110,072 |
|
|
|
100,851,622 |
|
|
|
100,624,350 |
|
Add: Conversion of Preferred shares to common shares |
|
|
147,812,786 |
|
|
|
147,812,786 |
|
|
|
147,812,786 |
|
Less: Common shares outstanding under share lending facility |
|
|
(7,839,809 |
) |
|
|
(7,839,809 |
) |
|
|
(7,839,809 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma common shares outstanding |
|
|
241,083,049 |
|
|
|
240,824,599 |
|
|
|
240,597,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity (actual amounts rounded to nearest thousand) |
|
$ |
346,512,000 |
|
|
$ |
361,028,000 |
|
|
$ |
407,941,000 |
|
Divided by pro forma common shares outstanding |
|
÷ |
241,083,049 |
|
|
÷ |
240,824,599 |
|
|
÷ |
240,597,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma stockholders equity per common share |
|
$ |
1.44 |
|
|
$ |
1.50 |
|
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
Total debt at June 30, 2009, March 31, 2009 and December 31, 2008 includes $55.6 million, $46.9 million and $63.7 million, respectively, of indebtedness of the
Companys financial services subsidiary. |
(5) |
Adjusted net homebuilding debt excludes indebtedness of the Companys financial services subsidiary and additionally reflects the offset of cash and equivalents in excess of $5
million. We believe that the adjusted net homebuilding debt to total book capitalization ratio is useful to investors as a measure of the Companys ability to obtain financing. This is a non-GAAP ratio and other companies may calculate this
ratio differently. For purposes of the ratio of adjusted net homebuilding debt to total book capitalization, total book capitalization is adjusted net homebuilding debt plus stockholders equity. Adjusted net homebuilding debt is calculated as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2009 |
|
|
March 31, 2009 |
|
|
December 31, 2008 |
|
|
|
(Dollars in thousands) |
|
Total consolidated debt |
|
$ |
1,330,940 |
|
|
$ |
1,458,230 |
|
|
$ |
1,550,092 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Financial services indebtedness |
|
|
(55,640 |
) |
|
|
(46,940 |
) |
|
|
(63,655 |
) |
Homebuilding cash in excess of $5 million |
|
|
(568,038 |
) |
|
|
(663,300 |
) |
|
|
(621,386 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net homebuilding debt |
|
$ |
707,262 |
|
|
$ |
747,990 |
|
|
$ |
865,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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