Standard Pacific reports Q3 net income of US$58.9M, up from US$21.7M a year earlier, on home sales revenue up 61% to US$511.1M, net new orders up 12% to 1,110; CEO credits disciplined land buying, moving up market, new home designs for solid performance

IRVINE, California , October 31, 2013 (press release) – Q3 2013 Pretax Income of $70.1 million, up 220% vs. Q3 2012
Q3 2013 Net New Order Value up 38% and Backlog Value up 93% vs. Q3 2012


Standard Pacific Corp. (NYSE: SPF) today announced results for the third quarter ended September 30, 2013.

2013 Third Quarter Highlights and Comparisons to the 2012 Third Quarter

  • Net income of $58.9 million, or $0.15 per diluted share, vs. $21.7 million, or $0.05 per diluted share
  • Pretax income of $70.1 million, vs. $21.9 million
  • Net new orders of 1,110, up 12%; Dollar value of net new orders up 38%
  • Backlog of 2,165 homes, up 55%; Dollar value of backlog up 93%
  • 168 average active selling communities, up 8%
  • Home sale revenues up 61%
  • Average selling price of $420 thousand, up 14%
  • 1,217 new home deliveries, up 41%
  • Gross margin from home sales of 25.3%, compared to 20.2%
  • SG&A rate from home sales of 12.1%, a 150 basis point improvement
  • Operating margin from home sales of $67.4 million, or 13.2%, compared to $20.9 million, or 6.6%
  • $141.7 million of land purchases and development costs, compared to $246.2 million

Scott Stowell, the Company's Chief Executive Officer commented, "The positive performance we achieved during the first half of 2013 continued into the third quarter." Mr. Stowell added, "Notwithstanding the tempered approach to homebuying that impacted the market during the third quarter, the benefit of our long-term growth strategy continued to unfold as disciplined land buying, moving up market, and new home designs, all led to a solid third quarter performance."

Net income for the 2013 third quarter was $58.9 million, or $0.15 per diluted share, compared to $21.7 million, or $0.05 per diluted share. Pretax income for the 2013 third quarter increased 220% to $70.1 million compared to $21.9 million for the prior year period. The provision for income taxes for the 2013 third quarter included a non-cash tax benefit of $16.1 million related to the reduction of the Company's accrual for unrecognized tax benefits.

Revenues from home sales for the 2013 third quarter increased 61%, to $511.1 million, as compared to the prior year period, resulting primarily from a 41% increase in new home deliveries and a 14% increase in the Company's consolidated average home price to $420 thousand. The increase in average home price was primarily attributable to our move-up market focus and general price increases within most of our markets. The increase in new home deliveries was driven by a 62% year-over-year increase in the number of homes in beginning backlog expected to close during the quarter, partially offset by a decrease in speculative homes sold and closed in the quarter.

Gross margin from home sales for the 2013 third quarter increased to 25.3% compared to 20.2% in the prior year period. The 510 basis point year-over-year increase was primarily attributable to price increases and a decrease in the use of sales incentives. Excluding previously capitalized interest costs, gross margin from home sales was 31.2%* for the 2013 third quarter versus 28.7%* for the 2012 third quarter.

The Company's 2013 third quarter SG&A expenses (including Corporate G&A) were $61.9 million compared to $43.1 million, down 150 basis points as a percentage of home sale revenues to 12.1%, compared to 13.6% for the 2012 third quarter. The improvement in the Company's SG&A rate was primarily due to a 61% increase in revenues from home sales and reflects the operating leverage inherent in our business.

Net new orders for the 2013 third quarter increased 12% from the 2012 third quarter to 1,110 homes. The year-over-year growth is primarily attributable to an increase in the Company's monthly sales absorption rate to 2.2 per community for the 2013 third quarter, compared to 2.1 per community for the 2012 third quarter. The Company's cancellation rate for the 2013 third quarter was 20%, compared to 14% for the 2012 third quarter and 11% for the 2013 second quarter. Our 2013 third quarter cancellation rate increased from the historically low levels we experienced in the prior quarter and the prior year period, but was consistent with our average historical cancellation rate over the last 10 years. As a percentage of beginning backlog our cancellation rate was 6.5% in the quarter, a 90 basis point reduction from the same period last year.

The dollar value of homes in backlog increased 93% to $964.1 million, or 2,165 homes, compared to $498.7 million, or 1,394 homes, for the 2012 third quarter, and increased 2% compared to $947.6 million, or 2,272 homes, for the 2013 second quarter. The increase in year-over-year backlog value was driven primarily by a 24% increase in the average selling price of the homes in backlog, a 12% increase in net new orders and a shift to more to-be-built homes that have a longer construction cycle.

Cash provided by operating activities was $22.8 million for the 2013 third quarter versus cash used in operating activities of $72.4 million in the 2012 third quarter. During the 2013 third quarter, the Company spent $141.7 million on land purchases and development costs, compared to $246.2 million for the 2012 third quarter, of which $140.8 million of cash land purchases and development costs were included in cash flows used in operating activities. Excluding land purchases and development costs, cash inflows from operating activities for the 2013 third quarter were $164.5 million* versus $68.4 million* in the 2012 third quarter. The year-over-year increase in cash inflows from operating activities (excluding land purchases and development costs) was primarily due to a 61% increase in home sale revenues.

The Company purchased $69.2 million of land (628 homesites) during the 2013 third quarter, of which 46% (based on homesites) was located in Florida, 21% in the Carolinas and 18% in California, with the balance spread throughout the Company's other operations. As of September 30, 2013, the Company owned or controlled 35,643 homesites, of which 21,993 are owned and actively selling or under development, 8,707 are controlled or under option, and the remaining 4,943 homesites are held for future development or for sale. The homesites owned that are actively selling or under development represent a 5.2 year supply based on the Company's deliveries for the trailing twelve months ended September 30, 2013.

Earnings Conference Call

A conference call to discuss the Company's 2013 third quarter results will be held at 12:00 p.m. Eastern time November 1, 2013. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://ir.standardpacifichomes.com. The call will also be accessible via telephone by dialing (800) 768-6490 (domestic) or (785) 830-7987 (international); Passcode: 8782855. The audio transmission with the 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: 8782855.

About Standard Pacific

Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality homes and neighborhoods since its founding in Southern California in 1965. With a trusted reputation for quality craftsmanship, an outstanding customer experience and exceptional architectural design, the Company utilizes its decades of land acquisition, development and homebuilding expertise to successfully navigate today's complex landscape to acquire and build desirable communities in locations that meet the high expectations of the Company's targeted move-up homebuyers. Currently offering new homes in major metropolitan areas in Arizona, California, Colorado, Florida, North Carolina, South Carolina, and Texas, we invite you to learn more about us by visiting standardpacifichomes.com.

This news release contains forward-looking statements. These statements include but are not limited to statements regarding new home orders, deliveries, backlog, absorption rates, average home price, pricing power, revenue, profitability, cash flow, liquidity, gross margin, overhead expenses and other costs; community count; product mix; the benefit of, and execution on, our strategy; supply; demand; our future performance and the future condition of the economy and the housing market. 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 Company's 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, 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 debt agreements; our ability to repay our debt as it comes due; changes 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 Company's 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 Company's mortgage banking operations; future business decisions and the Company's ability to successfully implement the Company's operational and other strategies; litigation and warranty claims; and other risks discussed in the Company's filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2012 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.

(Note: Tables Follow)
 

 

KEY STATISTICS AND FINANCIAL DATA1

 
     

As of or For the Three Months Ended

     

September 30,

 

September 30,

 

Percentage

 

June 30,

 

Percentage

     

2013

 

2012

 

or % Change

 

2013

 

or % Change

Operating Data

(Dollars in thousands)

                             

Deliveries

 

1,217

   

861

 

41%

   

1,095

 

11%

Average selling price

$

420

 

$

369

 

14%

 

$

397

 

6%

Home sale revenues

$

511,059

 

$

317,389

 

61%

 

$

434,308

 

18%

Gross margin % (including land sales)

 

25.3%

   

20.1%

 

5.2%

   

23.4%

 

1.9%

Gross margin % from home sales

 

25.3%

   

20.2%

 

5.1%

   

23.7%

 

1.6%

Gross margin % from home sales (excluding interest amortized

to cost of home sales)*

 

31.2%

   

28.7%

 

2.5%

   

30.7%

 

0.5%

Incentive and stock-based compensation expense

$

8,023

 

$

4,768

 

68%

 

$

5,927

 

35%

Selling expenses

$

24,301

 

$

17,069

 

42%

 

$

22,146

 

10%

G&A expenses (excluding incentive and stock-based compensation expenses)

$

29,615

 

$

21,284

 

39%

 

$

26,525

 

12%

SG&A expenses

$

61,939

 

$

43,121

 

44%

 

$

54,598

 

13%

SG&A % from home sales

 

12.1%

   

13.6%

 

(1.5%)

   

12.6%

 

(0.5%)

Operating margin

$

67,426

 

$

20,924

 

222%

 

$

48,207

 

40%

Operating margin % from home sales

 

13.2%

   

6.6%

 

6.6%

   

11.1%

 

2.1%

Net new orders (homes)

 

1,110

   

989

 

12%

   

1,516

 

(27%)

Net new orders (dollar value)

$

510,668

 

$

368,772

 

38%

 

$

648,299

 

(21%)

Average active selling communities

 

168

   

156

 

8%

   

164

 

2%

Monthly sales absorption rate per community

 

2.2

   

2.1

 

4%

   

3.1

 

(29%)

Cancellation rate

 

20%

   

14%

 

6%

   

11%

 

9%

Gross cancellations

 

272

   

161

 

69%

   

184

 

48%

Cancellations from current quarter sales

 

124

   

67

 

85%

   

87

 

43%

Backlog (homes)

 

2,165

   

1,394

 

55%

   

2,272

 

(5%)

Backlog (dollar value)

$

964,148

 

$

498,739

 

93%

 

$

947,584

 

2%

                             

Cash flows (uses) from operating activities

$

22,808

 

$

(72,418)

     

$

(90,743)

   

Cash flows (uses) from investing activities

$

(2,296)

 

$

(95,704)

 

98%

 

$

(125,253)

 

98%

Cash flows (uses) from financing activities

$

261,980

 

$

348,696

 

(25%)

 

$

10,319

 

2,439%

Land purchases (incl. seller financing and JV purchases)

$

69,196

 

$

206,740

 

(67%)

 

$

235,991

 

(71%)

Adjusted Homebuilding EBITDA*

$

101,953

 

$

51,523

 

98%

 

$

82,376

 

24%

Adjusted Homebuilding EBITDA Margin %*

 

19.9%

   

16.2%

 

3.7%

   

18.8%

 

1.1%

Homebuilding interest incurred

$

34,766

 

$

36,112

 

(4%)

 

$

33,526

 

4%

Homebuilding interest capitalized to inventories owned

$

34,118

 

$

32,604

 

5%

 

$

32,782

 

4%

Homebuilding interest capitalized to investments in JVs

$

648

 

$

1,839

 

(65%)

 

$

744

 

(13%)

Interest amortized to cost of sales (incl. cost of land sales)

$

30,322

 

$

27,078

 

12%

 

$

30,662

 

(1%)

                         
                         
     

As of 

     

September 30,

 

June 30,

 

Percentage

 

December 31,

 

Percentage

     

2013

 

2013

 

or % Change

 

2012

 

or % Change

Balance Sheet Data

(Dollars in thousands, except per share amounts)

                             

Homebuilding cash (including restricted cash)

$

373,523

 

$

90,589

 

312%

 

$

366,808

 

2%

Inventories owned

$

2,410,649

 

$

2,325,490

 

4%

 

$

1,971,418

 

22%

Homesites owned and controlled

 

35,643

   

35,126

 

1%

   

30,767

 

16%

Homes under construction

 

2,373

   

2,277

 

4%

   

1,574

 

51%

Completed specs

 

183

   

139

 

32%

   

215

 

(15%)

Deferred tax asset valuation allowance

$

10,510

 

$

10,510

 

   ―  

 

$

22,696

 

(54%)

Homebuilding debt

$

1,837,622

 

$

1,537,021

 

20%

 

$

1,542,018

 

19%

Stockholders' equity

$

1,400,026

 

$

1,337,468

 

5%

 

$

1,255,816

 

11%

Stockholders' equity per share (including if-converted preferred stock)*

$

3.84

 

$

3.67

 

5%

 

$

3.48

 

10%

Total consolidated debt to book capitalization

 

57.6%

   

55.0%

 

2.6%

   

56.5%

 

1.1%

Adjusted net homebuilding debt to total adjusted book capitalization*

 

51.1%

   

52.0%

 

(0.9%)

   

48.3%

 

2.8%

 

1All statistical numbers exclude unconsolidated joint ventures unless noted otherwise.

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
       

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

       

2013

 

2012

 

2013

 

2012

       

(Dollars in thousands, except per share amounts)

       

(Unaudited)

Homebuilding:

                     
 

Home sale revenues

$

511,059

 

$

317,389

 

$

1,300,493

 

$

812,578

 

Land sale revenues

 

697

   

1,152

   

7,665

   

4,537

   

Total revenues

 

511,756

   

318,541

   

1,308,158

   

817,115

 

Cost of home sales

 

(381,694)

   

(253,344)

   

(993,809)

   

(647,525)

 

Cost of land sales

 

(672)

   

(1,092)

   

(7,671)

   

(4,458)

   

Total cost of sales

 

(382,366)

   

(254,436)

   

(1,001,480)

   

(651,983)

     

Gross margin

 

129,390

   

64,105

   

306,678

   

165,132

     

Gross margin %

 

25.3%

   

20.1%

   

23.4%

   

20.2%

 

Selling, general and administrative expenses

 

(61,939)

   

(43,121)

   

(162,831)

   

(122,765)

 

Income (loss) from unconsolidated joint ventures

 

(32)

   

(39)

   

1,249

   

(2,707)

 

Interest expense

 

 ―   

   

(1,669)

   

 ―   

   

(5,816)

 

Other income (expense)

 

301

   

117

   

2,624

   

4,708

     

Homebuilding pretax income 

 

67,720

   

19,393

   

147,720

   

38,552

Financial Services:

                     
 

Revenues

 

5,839

   

5,218

   

18,927

   

14,249

 

Expenses

 

(3,590)

   

(2,777)

   

(10,394)

   

(7,952)

 

Other income

 

167

   

70

   

420

   

217

     

Financial services pretax income

 

2,416

   

2,511

   

8,953

   

6,514

Income before taxes

 

70,136

   

21,904

   

156,673

   

45,066

Provision for income taxes

 

(11,201)

   

(194)

   

(32,778)

   

(570)

Net income 

 

58,935

   

21,710

   

123,895

   

44,496

  Less: Net income allocated to preferred shareholder

 

(14,166)

   

(9,100)

   

(40,353)

   

(18,980)

  Less: Net income allocated to unvested restricted stock

 

(90)

   

(22)

   

(169)

   

(31)

Net income available to common stockholders

$

44,679

 

$

12,588

 

$

83,373

 

$

25,485

                             

Income Per Common Share:

                     
 

Basic

 

$

0.16

 

$

0.06

 

$

0.34

 

$

0.13

 

Diluted

$

0.15

 

$

0.05

 

$

0.31

 

$

0.12

                             

Weighted Average Common Shares Outstanding:

                     
 

Basic

   

276,966,995

   

204,485,294

   

244,998,581

   

198,469,130

 

Diluted

 

314,897,098

   

235,273,648

   

283,189,878

   

210,441,932

                             

Weighted average additional common shares outstanding

if preferred shares converted to common shares

                     
 

87,812,786

   

147,812,786

   

118,582,017

   

147,812,786

                             

Total weighted average diluted common shares outstanding

if preferred shares converted to common shares

                     
 

402,709,884

   

383,086,434

   

401,771,895

   

358,254,718

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
           

September 30,

 

December 31,

           

2013

 

2012

           

(Dollars in thousands)

ASSETS

(Unaudited)

     

Homebuilding:

         
 

Cash and equivalents

$

345,999

 

$

339,908

 

Restricted cash

   

27,524

   

26,900

 

Trade and other receivables

 

19,186

   

10,724

 

Inventories:

             
   

Owned

     

2,410,649

   

1,971,418

   

Not owned

   

103,734

   

71,295

 

Investments in unconsolidated joint ventures

 

58,330

   

52,443

 

Deferred income taxes, net

 

405,912

   

455,372

 

Other assets

     

48,812

   

41,918

     

Total Homebuilding Assets

 

3,420,146

   

2,969,978

Financial Services:

         
 

Cash and equivalents

 

17,129

   

6,647

 

Restricted cash

   

1,795

   

2,420

 

Mortgage loans held for sale, net

 

75,211

   

119,549

 

Mortgage loans held for investment, net

 

10,989

   

9,923

 

Other assets

     

4,926

   

4,557

     

Total Financial Services Assets

 

110,050

   

143,096

       

Total Assets

$

3,530,196

 

$

3,113,074

                     

LIABILITIES AND EQUITY

         

Homebuilding:

         
 

Accounts payable

 

$

29,301

 

$

22,446

 

Accrued liabilities

   

196,478

   

198,144

 

Secured project debt and other notes payable

 

5,105

   

11,516

 

Senior notes payable

 

1,832,517

   

1,530,502

     

Total Homebuilding Liabilities

 

2,063,401

   

1,762,608

Financial Services:

         
 

Accounts payable and other liabilities

 

2,589

   

2,491

 

Mortgage credit facilities

 

64,180

   

92,159

     

Total Financial Services Liabilities

 

66,769

   

94,650

       

Total Liabilities

 

2,130,170

   

1,857,258

Equity:

         
 

Stockholders' Equity:

         
   

Preferred stock, $0.01 par value; 10,000,000 shares 

         
   

    authorized; 267,829 and 450,829 shares issued and outstanding

         
   

    at September 30, 2013 and December 31, 2012, respectively

 

3

   

5

   

Common stock, $0.01 par value; 600,000,000 shares 

         
   

    authorized; 277,064,975 and 213,245,488 shares 

         
   

    issued and outstanding at September 30, 2013 and 

         
   

    December 31, 2012, respectively

 

2,770

   

2,132

   

Additional paid-in capital

 

1,350,706

   

1,333,255

   

Accumulated earnings (deficit)

 

46,547

   

(77,348)

   

Accumulated other comprehensive loss, net of tax

 

  ―    

   

(2,228)

     

Total Equity

 

1,400,026

   

1,255,816

       

Total Liabilities and Equity

$

3,530,196

 

$

3,113,074

 

 

INVENTORIES

 
       

September 30,

 

December 31,

       

2013

 

2012

       

(Dollars in thousands)

Inventories Owned:

     

(Unaudited)

   
             

     Land and land under development

     

$     1,636,011

 

$     1,444,161

     Homes completed and under construction

     

647,271

 

427,196

     Model homes

     

127,367

 

100,061

        Total inventories owned

     

$     2,410,649

 

$     1,971,418

             

Inventories Owned by Segment:

           
             

     California

     

$     1,151,866

 

$     1,086,159

     Southwest

     

581,280

 

461,201

     Southeast

     

677,503

 

424,058

        Total inventories owned

     

$     2,410,649

 

$     1,971,418

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 
         

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

         

2013

 

2012

 

2013

 

2012

         

(Dollars in thousands)

         

(Unaudited)

Cash Flows From Operating Activities:

                     
 

Net income

$

58,935

 

$

21,710

 

$

123,895

 

$

44,496

 

Adjustments to reconcile net income to net cash 

                     
   

provided by (used in) operating activities:

                     
     

Amortization of stock-based compensation

 

2,681

   

1,559

   

6,656

   

4,518

     

Deposit write-offs

 

 ―   

   

 ―   

   

 ―   

   

133

     

Deferred income taxes

 

27,306

   

 ―   

   

48,489

   

 ―   

     

Other operating activities

 

1,096

   

1,798

   

4,592

   

5,838

     

Changes in cash and equivalents due to:

                     
       

Trade and other receivables

 

11,186

   

(4,681)

   

(8,462)

   

(12,143)

       

Mortgage loans held for sale

 

32,221

   

(18,119)

   

44,179

   

(14,016)

       

Inventories - owned

 

(84,352)

   

(70,645)

   

(314,375)

   

(185,832)

       

Inventories - not owned

 

(21,990)

   

(7,191)

   

(31,700)

   

(10,690)

       

Other assets

 

1,655

   

999

   

401

   

922

       

Accounts payable

 

7,235

   

82

   

6,855

   

(1,371)

       

Accrued liabilities

 

(13,165)

   

2,070

   

(6,926)

   

(2,991)

   

Net cash provided by (used in) operating activities

 

22,808

   

(72,418)

   

(126,396)

   

(171,136)

                               

Cash Flows From Investing Activities:

                     
 

Investments in unconsolidated homebuilding joint ventures

 

(2,190)

   

(44,797)

   

(12,942)

   

(53,078)

 

Distributions of capital from unconsolidated joint ventures

 

750

   

10,145

   

2,319

   

11,940

 

Net cash paid for acquisitions

 

 ―   

   

(60,752)

   

(113,793)

   

(60,752)

 

Other investing activities

 

(856)

   

(300)

   

(4,734)

   

(1,705)

   

Net cash provided by (used in) investing activities

 

(2,296)

   

(95,704)

   

(129,150)

   

(103,595)

                               

Cash Flows From Financing Activities:

                     
 

Change in restricted cash

 

(2,062)

   

(1,203)

   

1

   

5,034

 

Principal payments on secured project debt and other notes payable

 

(72)

   

(138)

   

(7,289)

   

(782)

 

Principal payments on senior subordinated notes payable

 

 ―   

   

 ―   

   

 ―   

   

(9,990)

 

Proceeds from the issuance of senior notes payable

 

300,000

   

253,000

   

300,000

   

253,000

 

Payment of debt issuance costs

 

(4,045)

   

(8,081)

   

(4,045)

   

(8,081)

 

Net proceeds from (payments on) mortgage credit facilities

 

(32,784)

   

26,608

   

(27,979)

   

24,227

 

Proceeds from the issuance of common stock

 

 ―   

   

75,849

   

 ―   

   

75,849

 

Payment of common stock issuance costs

 

 ―   

   

(3,913)

   

 ―   

   

(3,913)

 

Payment of issuance costs in connection with preferred 

                     
   

shareholder equity transactions

 

(3)

   

 ―   

   

(350)

   

 ―   

 

Proceeds from the exercise of stock options

 

946

   

6,574

   

11,781

   

8,321

   

Net cash provided by (used in) financing activities

 

261,980

   

348,696

   

272,119

   

343,665

                               

Net increase (decrease) in cash and equivalents

 

282,492

   

180,574

   

16,573

   

68,934

Cash and equivalents at beginning of period

 

80,636

   

298,882

   

346,555

   

410,522

Cash and equivalents at end of period

$

363,128

 

$

479,456

 

$

363,128

 

$

479,456

                               

Cash and equivalents at end of period

$

363,128

 

$

479,456

 

$

363,128

 

$

479,456

Homebuilding restricted cash at end of period

 

27,524

   

25,713

   

27,524

   

25,713

Financial services restricted cash at end of period

 

1,795

   

1,920

   

1,795

   

1,920

Cash and equivalents and restricted cash at end of period

$

392,447

 

$

507,089

 

$

392,447

 

$

507,089

 

REGIONAL OPERATING DATA

 
           

Three Months Ended
September 30, 

 

Nine Months Ended
September 30, 

           

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

New homes delivered:

                       
 

California

 

467

 

363

 

29%

 

1,286

 

904

 

42%

 

Arizona

 

51

 

66

 

(23%)

 

171

 

176

 

(3%)

 

Texas

 

170

 

107

 

59%

 

458

 

368

 

24%

 

Colorado

 

36

 

33

 

9%

 

117

 

80

 

46%

 

Nevada

 

       ―   

 

       ―   

 

      ―  

 

       ―   

 

9

 

(100%)

 

Florida

 

285

 

151

 

89%

 

707

 

411

 

72%

 

Carolinas

 

208

 

141

 

48%

 

520

 

370

 

41%

     

Consolidated total

 

1,217

 

861

 

41%

 

3,259

 

2,318

 

41%

 

Unconsolidated joint ventures

 

2

 

14

 

(86%)

 

23

 

28

 

(18%)

     

Total (including joint ventures)

 

1,219

 

875

 

39%

 

3,282

 

2,346

 

40%

         

Three Months Ended
September 30, 

 

Nine Months Ended
September 30, 

         

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

         

(Dollars in thousands)

Average selling prices of homes delivered:

                               
 

California

 

$

586

 

$

505

 

16%

 

$

541

 

$

489

 

11%

 

Arizona

   

286

   

204

 

40%

   

260

   

206

 

26%

 

Texas

   

385

   

328

 

17%

   

379

   

307

 

23%

 

Colorado

   

484

   

399

 

21%

   

439

   

386

 

14%

 

Nevada

   

      ―  

   

      ―  

 

      ―  

   

      ―  

   

192

 

      ―  

 

Florida

   

283

   

256

 

11%

   

269

   

244

 

10%

 

Carolinas

   

284

   

241

 

18%

   

279

   

238

 

17%

     

Consolidated

   

420

   

369

 

14%

   

399

   

351

 

14%

 

Unconsolidated joint ventures

   

578

   

450

 

28%

   

505

   

443

 

14%

     

Total (including joint ventures)

 

$

420

 

$

370

 

14%

 

$

400

 

$

352

 

14%

         

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

         

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

Net new orders:

                       
 

California

 

386

 

417

 

(7%)

 

1,381

 

1,169

 

18%

 

Arizona

 

95

 

61

 

56%

 

248

 

237

 

5%

 

Texas

 

154

 

132

 

17%

 

612

 

424

 

44%

 

Colorado

 

29

 

45

 

(36%)

 

156

 

113

 

38%

 

Nevada

 

        ―  

 

        ―  

 

        ―  

 

        ―  

 

6

 

(100%)

 

Florida

 

274

 

174

 

57%

 

1,010

 

568

 

78%

 

Carolinas

 

172

 

160

 

8%

 

613

 

514

 

19%

     

Consolidated total

 

1,110

 

989

 

12%

 

4,020

 

3,031

 

33%

 

Unconsolidated joint ventures

 

2

 

18

 

(89%)

 

12

 

42

 

(71%)

     

Total (including joint ventures)

 

1,112

 

1,007

 

10%

 

4,032

 

3,073

 

31%

         

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

         

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

Average number of selling communities 

                       

  during the period:

                       
 

California

 

48

 

50

 

(4%)

 

46

 

51

 

(10%)

 

Arizona

 

10

 

5

 

100%

 

9

 

7

 

29%

 

Texas

 

30

 

22

 

36%

 

30

 

20

 

50%

 

Colorado

 

8

 

7

 

14%

 

7

 

6

 

17%

 

Florida

 

41

 

38

 

8%

 

40

 

37

 

8%

 

Carolinas

 

31

 

34

 

(9%)

 

31

 

35

 

(11%)

     

Consolidated total

 

168

 

156

 

8%

 

163

 

156

 

4%

 

Unconsolidated joint ventures

 

         ―  

 

1

 

(100%)

 

         ―  

 

2

 

(100%)

     

Total (including joint ventures)

 

168

 

157

 

7%

 

163

 

158

 

3%

 

         

At September 30,

         

2013

 

2012

 

% Change

         

Homes

 

Dollar Value

 

Homes

 

Dollar Value

 

Homes

 

Dollar Value

         

(Dollars in thousands)

Backlog:

                                   
 

California

   

535

 

$

341,743

   

439

 

$

217,549

   

22%

   

57%

 

Arizona

   

154

   

50,512

   

118

   

28,357

   

31%

   

78%

 

Texas

   

358

   

158,863

   

205

   

74,736

   

75%

   

113%

 

Colorado

   

114

   

56,528

   

66

   

26,406

   

73%

   

114%

 

Florida

   

669

   

250,241

   

319

   

81,950

   

110%

   

205%

 

Carolinas

   

335

   

106,261

   

247

   

69,741

   

36%

   

52%

     

Consolidated total

   

2,165

   

964,148

   

1,394

   

498,739

   

55%

   

93%

 

Unconsolidated joint ventures

   

1

   

599

   

17

   

6,836

   

(94%)

   

(91%)

     

Total (including joint ventures)

   

2,166

 

$

964,747

   

1,411

 

$

505,575

   

54%

   

91%

 

         

At September 30,

         

2013

 

2012

 

% Change

Homesites owned and controlled:

           
 

California

 

9,979

 

9,806

 

2%

 

Arizona

 

2,291

 

1,844

 

24%

 

Texas

 

4,468

 

4,451

 

0%

 

Colorado

 

1,216

 

669

 

82%

 

Nevada

 

1,124

 

1,124

 

          ―   

 

Florida

 

11,409

 

8,211

 

39%

 

Carolinas

 

5,156

 

4,049

 

27%

   

Total (including joint ventures)

 

35,643

 

30,154

 

18%

                   
 

Homesites owned

 

26,936

 

23,974

 

12%

 

Homesites optioned or subject to contract 

 

8,192

 

5,605

 

46%

 

Joint venture homesites

 

515

 

575

 

(10%)

   

Total (including joint ventures)

 

35,643

 

30,154

 

18%

                   
                   

Homesites owned:

           
 

Raw lots

 

6,101

 

4,503

 

35%

 

Homesites under development

 

8,549

 

8,773

 

(3%)

 

Finished homesites

 

6,871

 

5,304

 

30%

 

Under construction or completed homes

 

3,061

 

2,170

 

41%

 

Held for sale

 

2,354

 

3,224

 

(27%)

   

Total

 

26,936

 

23,974

 

12%

 


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Each of the below measures are non-GAAP financial measures and other companies may calculate such non-GAAP measures differently.  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.

The table set forth below reconciles the Company's gross margin percentage from home sales to the gross margin percentage from home sales, excluding interest amortized to cost of home sales.  We believe these measures are useful to management and investors as they provide perspective on the underlying operating performance of the business excluding these charges and provide comparability with the Company's peer group.

 

Three Months Ended

 

September 30,
2013

 

Gross
Margin %

 

September 30,
2012

 

Gross
Margin %

 

June 30,
2013

 

Gross
Margin %

 

(Dollars in thousands)

                             

Home sale revenues

$

511,059

     

$

317,389

     

$

434,308

   

Less: Cost of home sales

 

(381,694)

       

(253,344)

       

(331,503)

   

Gross margin from home sales

 

129,365

 

25.3%

   

64,045

 

20.2%

   

102,805

 

23.7%

Add: Capitalized interest included in cost 

                           

  of home sales

 

30,303

 

5.9%

   

27,071

 

8.5%

   

30,337

 

7.0%

Gross margin from home sales, excluding 

                           

  interest amortized to cost of home sales

$

159,668

 

31.2%

 

$

91,116

 

28.7%

 

$

133,142

 

30.7%

The table set forth below reconciles the Company's cash flows provided by (used in) operations to cash inflows from operations excluding land purchases and development costs.  We believe this measure is useful to management and investors to provide perspective on underlying cash flow generation excluding swings related to the timing of land purchases and development costs.

 

Three Months Ended

 

September 30,
2013

 

September 30,
2012

 

June 30,
2013

 

(Dollars in thousands)

                 

Cash flows provided by (used in) operations

$

22,808

 

$

(72,418)

 

$

(90,743)

Add: Cash land purchases included in operating activities

 

69,196

   

101,363

   

122,180

Add: Land development costs

 

72,542

   

39,422

   

63,028

Cash inflows from operations (excluding land purchases and

               

   development costs)

$

164,546

 

$

68,367

 

$

94,465

The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total consolidated debt to book capitalization and adjusted net homebuilding debt to total adjusted book capitalization ratios.  We believe that the adjusted net homebuilding debt to total adjusted book capitalization ratio is useful to management and investors as a measure of the Company's ability to obtain financing.  For purposes of the ratio of adjusted net homebuilding debt to total adjusted book capitalization, total adjusted book capitalization is adjusted net homebuilding debt plus stockholders' equity.  Adjusted net homebuilding debt excludes indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents.

     

September 30,
2013

 

June 30,
2013

 

December 31,
2012

 

September 30,
2012

     

(Dollars in thousands)

                           

Total consolidated debt

$

1,901,802

 

$

1,633,985

 

$

1,634,177

 

$

1,652,111

Less:

                     
 

Financial services indebtedness

 

(64,180)

   

(96,964)