IRVINE, Calif., Feb. 3, 2010 /PRNewswire-FirstCall/ -- Standard
Pacific Corp. (NYSE:SPF) today announced operating results for its
fourth quarter ended December 31, 2009. Homebuilding revenues for
the quarter were $339.8 million, down 10% from $376.4 million for
the fourth quarter of last year. The Company generated net income
of $82.7 million, or $0.31 per diluted share, for the 2009 fourth
quarter compared to a net loss of $397.8 million, or $1.65 per
diluted share, for the year earlier period. Net income for the 2009
fourth quarter included an income tax benefit of $94.1 million
related to recently enacted tax legislation that extended the
carryback of net operating losses from two years to five years. The
2009 fourth quarter results included asset impairment charges of
$11.2 million versus $443.6 million in the prior year quarter and
also included $5.1 million in debt refinancing and other
restructuring charges. Excluding asset impairment and restructuring
charges and the tax benefit, the Company generated net income of
$4.0 million* during the 2009 fourth quarter. Homebuilding revenues
for the year ended December 31, 2009 were $1.17 billion versus
$1.54 billion in the prior year. The Company generated a net loss
of $13.8 million, or $0.06 per diluted share, for 2009, compared to
a net loss of $1.23 billion, or $9.14 per diluted share, for 2008.
The Company's average home price for the fourth quarter was up 5%
to $318,000 versus $302,000 for the 2009 third quarter and down 3%
from the prior year quarter. On a same plan community basis, which
adjusts for shifts in product mix, the fourth quarter average home
price was up 1% over the 2009 third quarter and down 5% versus the
2008 fourth quarter. Gross margin from home sales for the fourth
quarter was 18.1% versus 18.6% for the 2009 third quarter and,
excluding impairments, was 20.3%* versus 18.6%* for the same
periods. The Company generated $100.9 million of cash flows from
operations during the 2009 fourth quarter which included $39.3
million of proceeds from land sales and $35.3 million in land
purchases. For the full year 2009, the Company generated $411.1
million of cash flows from operations and ended the year with
$602.2 million of homebuilding cash (including $15.1 million of
restricted cash). Excluding land purchases and proceeds from land
sales, cash flows from operations for the year ended December 31,
2009 were $372.1 million*. In addition, the Company expects to
receive a $103 million federal tax refund during the 2010 first
quarter. The Company reduced the principal amount of its
homebuilding debt during 2009 by $322 million, from $1.51 billion
to $1.19 billion. Homebuilding debt due before 2013 declined from
$838 million to $239 million, and the Company ended the year with
an adjusted net homebuilding debt to total adjusted book capital
ratio of 56.0%* versus 67.8%* as of December 31, 2008.
Unconsolidated joint venture recourse debt was reduced by $135.1
million during the year, bringing total joint venture recourse debt
to $38.8 million as of December 31, 2009. Ken Campbell, the
Company's President and CEO stated, "We are pleased with our fourth
quarter results, particularly with the improvement in our gross
margin and average selling price as compared to the 2009 third
quarter, as well as with the significant level of cash generation
we achieved. Notwithstanding the challenging economic and housing
market conditions that exist, we look ahead to 2010 with the goals
of returning to profitability and rebuilding our land portfolio."
Mr. Campbell continued, "With over $600 million of cash, an
anticipated tax refund in excess of $100 million and our ability to
generate cash flows from operations, we believe we are well
positioned to support our growth prospects and to withstand a
further decline if the market takes longer to recover."
Homebuilding Operations The Company's homebuilding pretax loss of
$14.2 million for the 2009 fourth quarter included $11.2 million of
asset impairment charges, $3.5 million of loss on early
extinguishment of debt and $1.6 million in restructuring charges.
The decrease in quarterly pretax loss from $445.5 million in the
2008 fourth quarter was primarily the result of a $432.4 million
decrease in impairment charges and a $20.6 million decrease in the
Company's selling, general and administrative ("SG&A")
expenses. These improvements were partially offset by a $5.6
million increase in non-capitalized interest expense from $6.4
million to $12.0 million. Revenues and Average Selling Price
Homebuilding revenues decreased 10% from the 2008 fourth quarter to
$339.8 million during the 2009 fourth quarter primarily due to an
18% decrease in new home deliveries to 943 homes (exclusive of
joint ventures) and a 3% decline in consolidated average home price
to $318,000. These decreases were offset in part by a $39.2 million
increase in land sale revenues as compared to the 2008 fourth
quarter. The 2009 fourth quarter land sale revenues included $34.8
million attributable to the bulk sale of a finished podium project
in Southern California, which resulted in a $2.9 million loss that
was included in cost of land sales as an inventory impairment
charge. The year over year decrease in the fourth quarter average
home price was primarily due to general price declines offset in
part by a slight mix shift to more California deliveries. The
Company's 2009 fourth quarter average home price increased 5% to
$318,000 as compared to $302,000 for the 2009 third quarter. The
increase was primarily due to a greater distribution of homes
delivered within California during the fourth quarter at higher
average home prices. Gross Margin The Company's homebuilding gross
margin (including land sales) for the 2009 fourth quarter was 15.3%
compared to a negative 78.6% in the prior year quarter. The 2009
fourth quarter gross margin included $10.9 million in inventory
impairment charges, of which $6.6 million was included in cost of
home sales related to one Southern California project and $4.3
million was included in cost of land sales related to a parcel of
land in Florida and the sale of a Southern California podium
project. Excluding land sales and the inventory impairment charges,
the Company's 2009 fourth quarter gross margin from home sales was
20.3%* versus 21.6%* for the 2008 fourth quarter and 18.6%* for the
2009 third quarter. The Company's 2008 fourth quarter gross margin
from home sales benefited from a $10.7 million reduction in its
warranty accrual. The 170 basis point improvement in the 2009
fourth quarter gross margin from homes sales as compared to the
2009 third quarter was largely the result of a larger mix of
California deliveries in the 2009 fourth quarter, lower direct
construction costs and, to a lesser extent, price increases
primarily in California. Adjusted gross margins from homes sales
excluding impairments and previously capitalized interest included
in cost of home sales for the 2009 fourth quarter was 26.9%* versus
24.3%* for the 2009 third quarter. SG&A The Company's 2009
fourth quarter SG&A expenses (including Corporate G&A)
decreased $20.6 million, from $70.0 million to $49.4 million, or
29%, from the year earlier period resulting in an SG&A rate of
14.5% versus 18.6% for the prior year period. The Company's 2009
fourth quarter SG&A expenses included approximately $1.0
million in restructuring charges related primarily to severance and
lease terminations versus $13.8 million in the prior year quarter.
Excluding land sale revenues and restructuring charges, the
Company's 2009 fourth quarter SG&A rate was 16.1%* compared to
15.0%* in the 2008 fourth quarter. The higher SG&A rate was
primarily due to a $7.0 million expense recorded during the 2009
fourth quarter related to incentive compensation (of which $4.1
million represented stock-based compensation). The 2008 fourth
quarter SG&A rate benefited from the reversal of $9.5 million
of incentive compensation expense. Adjusting the SG&A rate
further to exclude the impact of compensation expense related to
annual bonuses for these periods, our SG&A rate would have been
13.8%* for the 2009 fourth quarter versus 17.5%* for the year
earlier period. The 2009 fourth quarter also included the
amortization of $1.5 million in other stock-based compensation
expense versus $778,000 in the year earlier period. Net New Orders
and Backlog Net new orders (excluding joint ventures and
discontinued operations) for the 2009 fourth quarter increased 1%
from the 2008 fourth quarter to 547 new homes on a 28% decrease in
the number of average active selling communities from 172 in the
2008 fourth quarter to 124 for the 2009 fourth quarter. The
Company's monthly sales absorption rate for the 2009 fourth quarter
was 1.5 per community, up from the prior year fourth quarter rate
of 1.0 per community, but down from 2.2 per community for the 2009
third quarter. The Company's cancellation rate for the three months
ended December 31, 2009 was 21%, down from 33% for the 2008 fourth
quarter, but up from 15% for the 2009 third quarter. The Company's
cancellation rate as a percentage of beginning backlog was 15% for
the 2009 fourth quarter, compared to 21% in the year earlier period
and 17% in the 2009 third quarter. The dollar value of the
Company's backlog (excluding joint ventures) increased 7% to $207.9
million, or 599 homes, as compared to the 2008 fourth quarter
value, but was down 37% from the 2009 third quarter backlog value.
Earnings Conference Call A conference call to discuss the Company's
2009 fourth quarter will be held at 1:00 p.m. Eastern Time
Thursday, February 4, 2010. The call will be broadcast live over
the Internet and can be accessed through the Company's website at
http://standardpacifichomes.com/ir. The call will also be
accessible via telephone by dialing (888) 599-4883 (domestic) or
(913) 312-1475 (international); Passcode: 8400892. 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: 8400892.
About Standard Pacific Standard Pacific, one of the nation's
largest homebuilders, has built more than 110,000 homes during its
44-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. For
more information about the Company and its new home developments,
please visit our website at: http://www.standardpacifichomes.com/.
This news release contains forward-looking statements. These
statements include but are not limited to our ability to rebuild
our land portfolio; statements regarding trends in new home orders,
deliveries, average home price and backlog; anticipated cash flows
and future profitability; the sufficiency of our liquidity to
support growth and to withstand further market declines; an
expected tax refund; the value of our deferred tax asset; and the
future condition of 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 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 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, 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, *Please see "Reconciliation of Non-GAAP Financial
Measures" on page 10. (Note: Tables follow) KEY STATISTICS AND
FINANCIAL DATA** Operating Data As of or For the Three Months Ended
------------------------------------------------------------- % or
% or December 31, December 31, Percentage September 30, Percentage
2009 2008 Change 2009 Change -------- -------- ------ --------
------ (Dollars in thousands, except average selling price)
Deliveries (1) 943 1,146 (18%) 893 6% Average selling price (1)
$318,000 $328,000 (3%) $302,000 5% Homebuilding revenues $339,779
$376,399 (10%) $327,411 4% Gross margin % 15.3% (78.6%) 93.9% 13.0%
2.3% Gross margin % from home sales (excluding impairments)* 20.3%
21.6% (1.3%) 18.6% 1.7% Impairments and write- offs $11,192
$443,646 (97%) $7,814 43% Restructuring charges $1,637 $17,563
(91%) $1,315 24% SG&A % 14.5% 18.6% (4.1%) 13.3% 1.2% SG&A
% (excluding restructuring charges and land sales)* 16.1% 15.0%
1.1% 15.6% 0.5% Net new orders (1) 547 539 1% 893 (39%) Average
active selling communities (1) 124 172 (28%) 134 (7%) Monthly sales
absorption rate per community (1) 1.5 1.0 50% 2.2 (32%)
Cancellation rate (1) 21% 33% (12%) 15% 6% Backlog (homes) (1) 599
642 (7%) 995 (40%) Backlog (dollar value) (1) $207,887 $193,440 7%
$329,661 (37%) Cash flows (uses) from operating activities $100,901
$65,188 55% $112,572 (10%) Cash flows (uses) from investing
activities $(6,432) $(27,999) (77%) $(9,241) (30%) Cash flows
(uses) from financing activities $(28,915) $(123,985) (77%)
$(147,732) (80%) Land purchases (excl. JV unwinds) $35,256 $27,847
27% $21,595 63% Land sale proceeds $39,273 $1,405 2,695% $56,273
(30%) Adjusted Homebuilding EBITDA (2) $49,471 $38,607 28% $31,749
56% Homebuilding interest incurred $26,566 $25,760 3% $26,218 1%
Homebuilding interest capitalized to inventories owned $13,901
$18,464 (25%) $12,836 8% Homebuilding interest capitalized to
investments in unconsolidated joint ventures $616 $854 (28%) $749
(18%) For the Year Ended -------------------------------------- %
or December 31, December 31, Percentage 2009 2008 Change ---- ----
------ (Dollars in thousands, except average selling price)
Deliveries (1) 3,465 4,607 (25%) Average selling price (1) $306,000
$330,000 (7%) Homebuilding revenues $1,166,397 $1,535,616 (24%)
Gross margin % 12.2% (45.4%) 57.6% Gross margin % from home sales
(excluding impairments)* 18.8% 15.9% 2.9% Impairments and
write-offs $71,081 $1,153,530 (94%) Restructuring charges $22,575
$25,143 (10%) SG&A % 16.4% 19.9% (3.5%) SG&A % (excluding
restructuring charges and land sales)* 16.3% 18.8% (2.5%) Net new
orders (1) 3,343 3,946 (15%) Monthly sales absorption rate per
community (1) 2.0 1.7 18% Cancellation rate (1) 18% 26% (8%)
Average active selling communities (1) 140 192 (27%) Cash flows
(uses) from operating activities $411,066 $263,151 56% Cash flows
(uses) from investing activities $(27,301) $(11,579) 136% Cash
flows (uses) from financing activities $(414,051) $142,712 (390%)
Land purchases (excl. JV unwinds) $64,804 $146,967 (56%) Land sale
proceeds $103,770 $15,709 561% Adjusted Homebuilding EBITDA (2)
$116,252 $43,885 165% KEY STATISTICS AND FINANCIAL DATA
(Continued)** Balance Sheet Data As of
--------------------------------------------------- December
September % or December % or 31, 30, Percentage 31, Percentage 2009
2009 Change 2008 Change ---- ---- ------ ---- ------ (Dollars in
thousands, except per share amounts) Homebuilding cash (including
restricted cash) $602,222 $806,766 (25%) $626,379 (4%) Inventories
owned $986,322 $1,074,153 (8%) $1,262,521 (22%) Building sites
owned or controlled 19,191 20,020 (4%) 24,136 (20%) Homes under
construction (1) 934 1,106 (16%) 1,326 (30%) Completed specs
(excluding podium projects) (1) 233 163 43% 589 (60%) Completed
specs - podium projects (1) 49 193 (75%) - - Deferred tax asset
valuation allowance $534,596 $691,464 (23%) $654,107 (18%)
Homebuilding debt $1,156,726 $1,451,336 (20%) $1,486,437 (22%)
Joint venture recourse debt $38,835 $45,189 (14%) $173,894 (78%)
Stockholders' equity $435,798 $349,591 25% $407,941 7%
Stockholders' equity per share (including if- converted preferred
stock) (3) $1.75 $1.40 25% $1.70 3% Total debt to book
capitalization (4) 73.4% 81.0% (7.6%) 79.2% (5.8%) Adjusted net
homebuilding debt to total adjusted book capitalization* 56.0%
64.8% (8.8%) 67.8% (11.8%) * Please see "Reconciliation of Non-GAAP
Financial Measures" beginning on page 10. ** Please see "Notes to
Key Statistics and Financial Data" beginning on page 12. STANDARD
PACIFIC CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (2008 as Adjusted(1)) Three Months Ended
Year Ended December 31, December 31, ----------------
---------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Dollars
in thousands, except per share amounts) Homebuilding: Home sale
revenues $300,190 $376,032 $1,060,502 $1,521,640 Land sale revenues
39,589 367 105,895 13,976 -------- -------- ---------- ----------
Total revenues 339,779 376,399 1,166,397 1,535,616 --------
-------- ---------- ---------- Cost of home sales (245,847)
(645,104) (907,058) (2,107,758) Cost of land sales (41,939)
(27,082) (117,517) (124,786) -------- -------- ----------
---------- Total cost of sales (287,786) (672,186) (1,024,575)
(2,232,544) Gross margin 51,993 (295,787) 141,822 (696,928)
-------- -------- ---------- ---------- Gross margin % 15.3%
(78.6%) 12.2% (45.4%) -------- -------- ---------- ----------
Selling, general and administrative expenses (49,388) (70,007)
(191,488) (305,480) Loss from unconsolidated joint ventures (268)
(21,407) (4,717) (151,729) Interest expense (12,049) (6,442)
(47,458) (10,380) Loss on early extinguishment of debt (3,474)
(4,356) (6,931) (15,695) Other income (expense) (987) (47,483)
(2,296) (57,628) -------- -------- ---------- ----------
Homebuilding pretax loss (14,173) (445,482) (111,068) (1,237,840)
-------- -------- ---------- ---------- Financial Services:
Revenues 3,050 2,690 13,145 13,587 Expenses (2,808) (2,596)
(11,817) (13,659) Income from unconsolidated joint ventures - 195
119 854 Other income 31 106 139 234 -------- -------- ----------
---------- Financial services pretax income 273 395 1,586 1,016
-------- -------- ---------- ---------- Loss from continuing
operations before income taxes (13,900) (445,087) (109,482)
(1,236,824) Benefit for income taxes 96,563 47,525 96,265 5,495
-------- -------- ---------- ---------- Income (loss) from
continuing operations 82,663 (397,562) (13,217) (1,231,329) Loss
from discontinued operations, net of income taxes - (281) (569)
(2,286) -------- -------- ---------- ---------- Net income (loss)
82,663 (397,843) (13,786) (1,233,615) Less: Net (income) loss
allocated to preferred stockholders (49,060) 244,518 8,371 489,229
-------- -------- ---------- ---------- Net income (loss) available
to common stockholders $33,603 $(153,325) $(5,415) $(744,386)
======== ========= ========== ========== Basic earnings (loss) per
common share: Continuing operations $0.33 $(1.65) $(0.06) $(9.12)
Discontinued operations - - - (0.02) -------- -------- ----------
---------- Basic earnings (loss) per common share $0.33 $(1.65)
$(0.06) $(9.14) ======== ========= ========== ========== Diluted
earnings (loss) per common share: Continuing operations $0.31
$(1.65) $(0.06) $(9.12) Discontinued operations - - - (0.02)
-------- -------- ---------- ---------- Diluted earnings (loss) per
common share $0.31 $(1.65) $(0.06) $(9.14) ======== =========
========== ========== Weighted average common shares outstanding:
Basic 101,239,928 92,686,226 95,623,851 81,439,248 Diluted
109,348,514 92,686,226 95,623,851 81,439,248 Weighted average if-
converted preferred shares outstanding 147,812,786 147,812,786
147,812,786 53,523,829 ------------------- (1) Certain 2008 amounts
have been retroactively adjusted to reflect the adoption of certain
provisions of ASC Topic 470, "Debt." STANDARD PACIFIC CORP. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in
thousands, except per share amounts) (2008 as Adjusted(1)) December
31, -------------------- 2009 2008 ---- ---- ASSETS (unaudited)
Homebuilding: Cash and equivalents $587,152 $622,157 Restricted
cash 15,070 4,222 Trade and other receivables 12,676 21,008
Inventories: Owned 986,322 1,262,521 Not owned 11,770 42,742
Investments in unconsolidated joint ventures 40,415 50,468 Deferred
income taxes 9,431 14,122 Other assets 131,086 145,567 -------
------- 1,793,922 2,162,807 --------- --------- Financial Services:
Cash and equivalents 8,407 3,681 Restricted cash 3,195 4,295
Mortgage loans held for sale 41,048 63,960 Mortgage loans held for
investment 10,818 11,736 Other assets 3,621 4,792 ----- -----
67,089 88,464 ------ ------ Assets of discontinued operations -
1,217 --- ----- Total Assets $1,861,011 $2,252,488 ==========
========== LIABILITIES AND EQUITY Homebuilding: Accounts payable
$22,702 $40,225 Accrued liabilities 196,135 216,418 Liabilities
from inventories not owned 3,713 24,929 Revolving credit facility -
47,500 Secured project debt and other notes payable 59,531 111,214
Senior notes payable 993,018 1,204,501 Senior subordinated notes
payable 104,177 123,222 ------- ------- 1,379,276 1,768,009
--------- --------- Financial Services: Accounts payable and other
liabilities 1,436 3,657 Mortgage credit facilities 40,995 63,655
------ ------ 42,431 67,312 ------ ------ Liabilities of
discontinued operations - 1,331 --- ----- Total Liabilities
1,421,707 1,836,652 --------- --------- Equity: Stockholders'
Equity: Preferred stock, $0.01 par value; 10,000,000 shares
authorized; 450,829 shares issued and outstanding at December 31,
2009 and 2008, respectively 5 5 Common stock, $0.01 par value;
600,000,000 shares authorized; 105,293,180 and 100,624,350 shares
issued and outstanding at December 31, 2009 and 2008, respectively
1,053 1,006 Additional paid-in capital 1,030,664 996,492
Accumulated deficit (580,628) (566,842) Accumulated other
comprehensive loss, net of tax (15,296) (22,720) ------- -------
Total Stockholders' Equity 435,798 407,941 Noncontrolling Interests
3,506 7,895 ----- ----- Total Equity 439,304 415,836 -------
------- Total Liabilities and Equity $1,861,011 $2,252,488
========== ========== (1) Certain 2008 amounts have been
retroactively adjusted to reflect the adoption of certain
provisions of ASC Topic 470, "Debt." REGIONAL OPERATING DATA Three
Months Ended December 31, ----------------------------------- 2009
2008 ---------------- ---------------- Avg. Avg. Selling Selling
Homes Price Homes Price ----- -------- ----- -------- New homes
delivered: California 396 $447,000 460 $464,000 Arizona 94 211,000
104 208,000 Texas (1) 91 293,000 157 282,000 Colorado 34 305,000 49
312,000 Nevada 2 222,000 7 261,000 Florida 194 192,000 237 203,000
Carolinas 132 218,000 132 238,000 --- ------- --- -------
Consolidated total 943 318,000 1,146 328,000 Unconsolidated joint
ventures 20 486,000 48 587,000 Discontinued operations - - 1
260,000 --- --- --- ------- Total (including joint ventures) 963
$322,000 1,195 $338,000 === ======== ===== ======== Year Ended
December 31, ----------------------------------- 2009 2008
---------------- ---------------- Avg. Avg. Selling Selling Homes
Price Homes Price ----- -------- ----- -------- New homes
delivered: California 1,344 $434,000 1,668 $475,000 Arizona 303
211,000 540 228,000 Texas (1) 419 282,000 677 280,000 Colorado 147
305,000 229 348,000 Nevada 15 225,000 62 285,000 Florida 797
190,000 883 209,000 Carolinas 440 218,000 548 246,000 --- -------
--- ------- Consolidated total 3,465 306,000 4,607 330,000
Unconsolidated joint ventures 112 517,000 270 525,000 Discontinued
operations 4 201,000 148 175,000 --- ------- --- ------- Total
(including joint ventures) 3,581 $313,000 5,025 $336,000 =====
======== ===== ======== Three Months Ended December 31,
----------------------------------------------------- 2009 2008
------------------- --------------------- % Change Avg. Selling
Avg. Selling Same Homes Communities Homes Communities Store -----
---------- ----- ------------ ---------- Net new orders: California
219 45 229 55 17% Arizona 39 6 40 12 95% Texas (1) 63 19 68 27 32%
Colorado 28 6 24 7 36% Nevada 1 1 (3) 2 (167%) Florida 111 24 123
41 54% Carolinas 86 23 58 28 81% --- --- --- --- --- Consolidated
total 547 124 539 172 41% Unconsolidated joint ventures 7 4 26 11
(26%) Discontinued operations - - 2 - - --- --- --- --- --- Total
(including joint ventures) 554 128 567 183 40% === === === === ===
Year Ended December 31,
------------------------------------------------------ 2009 2008
-------------------- -------------------- Avg. Selling Avg. Selling
% Change Homes Communities Homes Communities Same Store -----
---------- ----- ------------ ----------- Net new orders:
California 1,358 50 1,495 63 14% Arizona 274 8 422 15 22% Texas (1)
398 19 506 29 20% Colorado 123 6 184 8 (11%) Nevada 11 2 37 3 (55%)
Florida 728 31 810 45 30% Carolinas 451 24 492 29 11% --- --- ---
--- --- Consolidated total 3,343 140 3,946 192 16% Unconsolidated
joint ventures 174 7 197 12 51% Discontinued operations 3 - 105 2 -
--- --- --- --- --- Total (including joint ventures) 3,520 147
4,248 206 16% ===== === ===== === === At December 31,
------------------------------------- 2009 2008 -----------------
---------------- Backlog ($ in thousands): Homes Value Homes Value
----- -------- ----- ------- California 247 $117,536 154 $69,522
Arizona 47 9,686 76 17,083 Texas (1) 109 33,708 130 38,782 Colorado
54 15,587 78 24,017 Nevada - - 4 893 Florida 78 15,033 147 30,408
Carolinas 64 16,337 53 12,735 --- ------ --- ------ Consolidated
total 599 207,887 642 193,440 Unconsolidated joint ventures 9 4,601
26 11,929 Discontinued operations - - 1 208 --- --- --- --- Total
(including joint ventures) 608 $212,488 669 $205,577 === ========
=== ======== (1) Texas excludes the San Antonio division, which is
classified as a discontinued operation. RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES Each of the below measures are not 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 earnings (loss) for the three months and years ended
December 31, 2009 and 2008 to earnings (loss) excluding the
after-tax impairment, restructuring, loss on early extinguishment
of debt and net deferred tax asset valuation charge (benefit). We
believe this measure is useful to investors as it provides
investors with a perspective of the underlying operating
performance of the business excluding these charges and provides
comparability with the Company's peer group. Three Months Ended
Year Ended December 31, December 31, --------------
---------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Dollars
in thousands) Net income (loss) $82,663 $(397,843) $(13,786)
$(1,233,615) Add: Impairment charges, net of income taxes 6,917
271,511 43,573 705,960 Add: Restructuring charges, net of income
taxes 1,012 10,749 13,838 15,388 Add: Loss on early extinguishment
of debt, net of income taxes 2,147 2,666 4,249 15,695 Add: Net
deferred tax asset charge (benefit) (88,787) 124,922 (51,429)
473,627 ------- ------- ------- ------- Net income (loss), as
adjusted $3,952 $12,005 $(3,555) $(22,945) ====== ======= =======
======== The tables set forth below reconcile the Company's
homebuilding gross margin percentage for the three months ended
December 31, 2009 and 2008, and September 30, 2009, and the years
ended December 31, 2009 and 2008, to the gross margin percentage
from home sales, excluding housing inventory impairment charges and
interest amortized to cost of home sales. We believe these measures
are useful to investors as they provide perspective of the
underlying operating performance of the business excluding these
charges and provides comparability with the Company's peer group.
Three Months Ended
--------------------------------------------------- December
December September 31, Gross 31, Gross 30, Gross 2009 Margin % 2008
Margin % 2009 Margin % ---- ----- --------- ------ ----- ------
(Dollars in thousands) Homebuilding gross margin $51,993 15.3%
$(295,787) (78.6%) $42,623 13.0% Less: Land sale revenues (39,589)
(367) (57,538) Add: Cost of land sales 41,939 27,082 65,147 ------
------ ------ Gross margin from home sales 54,343 18.1% (269,072)
(71.6%) 50,232 18.6% Add: Housing inventory impairment charges
6,601 350,338 - ----- ------- --- Gross margin from home sales,
excluding impairment charges 60,944 20.3% 81,266 21.6% 50,232 18.6%
Add: Capitalized interest included in cost of home sales 19,769
6.6% 28,032 7.5% 15,383 5.7% ------ ------ ------ Gross margin from
home sales, excluding impairment charges and interest amortized to
cost of home sales $80,713 26.9% $109,298 29.1% $65,615 24.3%
======= ======== ======= Year Ended December 31,
------------------------------------------------- Gross Gross 2009
Margin % 2008 Margin % ---- -------- ---- -------- (Dollars in
thousands) Homebuilding gross margin $141,822 12.2% $(696,928)
(45.4%) Less: Land sale revenues (105,895) (13,976) Add: Cost of
land sales 117,517 124,786 ------- ------- Gross margin from home
sales 153,444 14.5% (586,118) (38.5%) Add: Housing inventory
impairment charges 46,063 827,611 ------ ------- Gross margin from
home sales, excluding impairment charges 199,507 18.8% 241,493
15.9% Add: Capitalized interest included in cost of home sales
67,522 6.4% 83,053 5.4% ------ ------ Gross margin from home sales,
excluding impairment charges and interest amortized to cost of home
sales $267,029 25.2% $324,546 21.3% ======== ========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) The table
set forth below reconciles the Company's SG&A rate for the
three months ended December 31, 2009 and 2008, and September 30,
2009 and for the years ended December 31, 2009 and 2008, to the
SG&A rate excluding land sales and restructuring charges and,
for the three months ended December 31, 2009 and 2008, excluding
land sales, restructuring charges and compensation expense related
to 2009 and 2008 annual bonuses. We believe these measures are
useful to investors as they provide perspective on the underlying
operating performance of the business excluding these charges which
have had significant swings between the periods presented. Year
Ended Three Months Ended December 31,
---------------------------------------------------- December 31,
December 31, September 30, 2009 2008 2009 2009 2008 ---- ---- ----
---- ---- (Dollars in thousands) Selling, general and
administrative expenses $49,388 $70,007 $43,695 $191,488 $305,480
Less: Restructuring charges (980) (13,763) (1,495) (19,125)
(19,179) ------- ------- ------- -------- -------- Selling, general
and administrative expenses, excluding restructuring charges 48,408
56,244 $42,200 $172,363 $286,301 ======= ======== ======== Less:
Compensation expense related to 2009 and 2008 annual bonuses
(7,030) 9,513 ------- -------- Selling, general and administrative
expenses, excluding restructuring charges and compensation expense
related to 2009 and 2008 annual bonuses $41,378 $65,757 =======
======= SG&A % (excluding land sales and restructuring charges)
16.1% 15.0% 15.6% 16.3% 18.8% ======= ======= ======= ====== ======
SG&A % (excluding land sales and restructuring charges and
compensation expense related to 2009 and 2008 annual bonuses) 13.8%
17.5% ====== ======= The table set forth below reconciles the
Company's cash flows from operations to cash flows from operations
excluding land purchases and proceeds from land sales. We believe
this measure is useful to investors to provide perspective on
underlying cash flow generation excluding swings related to the
timing of land purchases and land sales. Year Ended Three Months
Ended December 31, ---------------------------------------
------------------ December 31, December 31, September 30, 2009
2008 2009 2009 2008 ---- ---- ---- ---- ---- (Dollars in thousands)
Cash flows from operations $100,901 $65,188 $112,572 $411,066
$263,151 Add: Land purchases 35,256 27,847 21,595 64,804 146,967
Less: Land sale proceeds (39,273) (1,405) (56,273) (103,770)
(15,709) ------- ------ ------- -------- ------- Cash flows from
operations (excluding land purchases and land sales) $96,884
$91,630 $77,894 $372,100 $394,409 ======= ======= ======= ========
======== The table set forth below reconciles the Company's total
consolidated debt to adjusted net homebuilding debt and provides
the Company's total 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 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 included in liabilities
from inventories not owned, indebtedness of the Company's financial
services subsidiary and additionally reflects the offset of cash
and equivalents. December 31, September 30, December 31, 2009 2009
2008 ---- ---- ---- (Dollars in thousands) Total consolidated debt
$1,199,621 $1,490,134 $1,550,092 Less: Indebtedness included in
liabilities from inventories not owned (1,900) - - Financial
services indebtedness (40,995) (38,798) (63,655) Homebuilding cash
(602,222) (806,766) (626,386) -------- -------- -------- Adjusted
net homebuilding debt 554,504 644,570 860,051 Stockholders' equity
435,798 349,591 407,941 ------- ------- ------- Total adjusted book
capitalization $990,302 $994,161 $1,267,992 ======== ========
========== Total debt to book capitalization 73.4% 81.0% 79.2% ====
==== ==== Adjusted net homebuilding debt to total adjusted book
capitalization ratio 56.0% 64.8% 67.8% ==== ==== ==== 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) (gain) loss on early extinguishment of debt (f)
homebuilding depreciation and amortization, (g) amortization of
stock-based compensation, (h) income (loss) from unconsolidated
joint ventures and (i) 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 Company's 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 months ended
December 31, 2009 and 2008 and September 30, 2009, and years ended
December 31, 2009 and 2008, EBITDA and Adjusted Homebuilding EBITDA
from continuing and discontinued operations was calculated as
follows: Year Ended Three Months Ended December 31,
--------------------------------------- --------------- December
31, December 31, September 30, 2009 2008 2009 2009 2008 ---- ----
---- ---- ---- (Dollars in thousands) Net income (loss) $82,663
$(397,843) $(23,844) $(13,786)$(1,233,615) Provision (benefit) for
income taxes (96,563) (47,678) - (96,563) (6,795) Homebuilding
interest amortized to cost of sales and interest expense 39,304
34,537 35,681 134,293 94,452 Homebuilding depreciation and
amortization 632 1,149 672 2,839 5,851 Amortization of stock-based
compensation 5,605 778 1,651 12,864 11,110 ------- -------- -------
------- ---------- EBITDA 31,641 (409,057) 14,160 39,647
(1,128,997) Add: Cash distributions of income from unconsolidated
joint ventures 3,139 1,204 - 3,465 1,975 Impairment charges 11,192
420,986 7,814 62,940 1,004,265 (Gain) loss on early extinguishment
of debt 3,474 4,356 8,824 6,931 15,695 Less: Income (loss) from
unconsolidated joint ventures (267) (21,212) (1,960) (4,597)
(150,875) Income (loss) from financial services subsidiary 242 94
1,009 1,328 (72) ------- -------- ------- ------- ----------
Adjusted Homebuilding EBITDA $49,471 $38,607 $31,749 $116,252
$43,885 ======= ======== ======= ======== ========== 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: Year Ended Three Months Ended December 31,
--------------------------------------- --------------- December
31, December 31, September 30, 2009 2008 2009 2009 2008 ---- ----
---- ---- ---- (Dollars in thousands) Net cash provided by (used
in) operating activities $100,901 $65,188 $112,572 $411,066
$263,151 Add: Provision (benefit) for income taxes (96,563)
(47,678) - (96,563) (6,795) Deferred tax valuation allowance 88,787
(124,922) (9,278) 51,429 (473,627) Homebuilding interest amortized
to cost of sales and interest expense 39,304 34,537 35,681 134,293
94,452 Excess tax benefits from share-based payment arrangements
297 - - 297 - Less: Income (loss) from financial services
subsidiary 242 94 1,009 1,328 (72) Depreciation and amortization
from financial services subsidiary 163 185 169 678 783 Loss on
disposal of property and equipment 1,272 1,891 1 2,611 2,792 Net
changes in operating assets and liabilities: Trade and other
receivables (4,976) (11,823) (2,191) (8,440) (6,408) Mortgage loans
held for sale (1,702) 2,977 (16,071) (24,718) (91,380) Inventories-
owned (84,537) (59,784) (103,969) (326,062) (34,567) Inventories-
not owned 1,343 (9,449) 324 2,805 (1,049) Deferred income taxes
7,775 131,861 9,277 45,133 343,754 Other assets 7,177 25,578 1,997
(109,501) (142,834) Accounts payable 965 25,288 (540) 18,554 57,949
Accrued liabilities (7,623) 9,004 5,126 22,576 44,742 -------
------- ------- -------- ------- Adjusted Homebuilding EBITDA
$49,471 $38,607 $31,749 $116,252 $43,885 ======= ======= =======
======== ======= NOTES TO KEY STATISTICS AND FINANCIAL DATA
(Continued) (3) The pro forma common shares outstanding include the
if-converted Series B Preferred Stock. In addition, this
calculation excludes 3.9 million shares as of December 31, 2009 and
September 30, 2009, and 7.8 million shares as of December 31, 2008,
issued under a share lending agreement related to the Company's 6%
Convertible Senior Subordinated Notes issued on September 28, 2007.
During the 2009 third quarter, 3.9 million of the shares issued
under the share lending agreement were returned to the Company. 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 used to calculate pro forma stockholders' equity per
share: December 31, September 30, December 31, 2009 2009 2008 ----
---- ---- Actual common shares outstanding 105,293,180 105,119,880
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 (3,919,904) (3,919,904) (7,839,809)
Pro forma common shares outstanding 249,186,062 249,012,762
240,597,327 =========== =========== =========== Stockholders'
equity (actual amounts rounded to nearest thousand) $435,798,000
$349,591,000 $407,941,000 Divided by pro forma common shares
outstanding / 249,186,062 / 249,012,762 / 240,597,327 -----------
----------- ----------- Pro forma stockholders' equity per common
share $1.75 $1.40 $1.70 ===== ===== ===== (4) Total debt at
December 31, 2009, September 30, 2009 and December 31, 2008
includes $41.0 million, $38.8 million and $63.7 million,
respectively, of indebtedness of the Company's financial services
subsidiary, and at December 31, 2009, includes $1.9 million of
indebtedness included in liabilities from inventories not owned.
DATASOURCE: Standard Pacific Corp. CONTACT: John Stephens, SVP
& CFO of Standard Pacific Corp., +1-949-789-1641, Web Site:
http://www.standardpacifichomes.com/
Copyright