Standard Pacific Corp. Reports 2015 First Quarter Results

Net new orders of 1,571, up 20%, net new order value up 31%

Q1 2015 backlog value of $1.3 billion, up 29% from Q1 2014

News provided by

Standard Pacific Corp.

Apr 30, 2015, 04:02 ET

IRVINE, Calif., April 30, 2015 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced results for the first quarter ended March 31, 2015.

2015 First Quarter Highlights and Comparisons to 2014 First Quarter

  • Net new orders of 1,571, up 20%; Dollar value of net new orders up 31%
  • Backlog of 2,310 homes, up 15%; Dollar value of backlog up 29%
  • 198 average active selling communities, up 14%
  • 972 new home deliveries, down 2%
  • Average selling price of $482 thousand, up 7%
  • Home sale revenues of $468.4 million, up 5%
  • Gross margin from home sales of 24.2%, compared to 26.6%
  • Operating margin from home sales of $47.5 million, or 10.1%, compared to $60.1 million, or 13.4%
  • Net income of $31.6 million, or $0.08 per diluted share, vs. net income of $38.2 million, or $0.09 per diluted share
  • $160.1 million of land purchases and development costs, compared to $224.1 million

Scott Stowell, the Company's President and Chief Executive Officer commented, "I'm pleased with our first quarter results and the start to the spring selling season.  With our orders up 20%, backlog value up 29% and the solid improvement we are seeing in our backlog gross margin, 2015 is setting up to be another year of solid growth and performance for the Company."

Orders.  Net new orders for the 2015 first quarter were up 20% from the 2014 first quarter, to 1,571 homes, with the dollar value of these orders up 31%.  The Company's monthly sales absorption rate was 2.6 per community for the 2015 first quarter, up 5% from the 2014 first quarter and up 49% compared to the 2014 fourth quarter.  The increase in sales absorption rate from the 2014 fourth quarter to the 2015 first quarter was above the seasonality we typically experience in our business.  The Company's cancellation rate for the 2015 first quarter was 11% compared to 14% for the 2014 first quarter and 21% for the 2014 fourth quarter.

Backlog.  The dollar value of homes in backlog increased 29% to $1.3 billion, or 2,310 homes, compared to $1.0 billion, or 2,016 homes, for the 2014 first quarter, and increased 41% compared to $916.4 million, or 1,711 homes, for the 2014 fourth quarter.  The increase in year-over-year backlog value was driven primarily by a 13% increase in the average selling price of the homes in backlog, reflecting the continued execution of our move-up homebuyer focused strategy and a favorable pricing environment in select markets.

Revenue.  Revenues from home sales for the 2015 first quarter increased 5%, to $468.4 million, as compared to the prior year period, resulting primarily from a 7% increase in the Company's average home price to $482 thousand, partially offset by a 2% decrease in new home deliveries.  The increase in average home price was primarily attributable to a shift to more move-up product and general price increases within a majority of the Company's markets.  The decrease in new home deliveries compared to the prior year period was driven primarily by a 14% decrease in deliveries from the Company's California region, partially offset by an 11% increase from the Company's Southwest region. 

Gross Margin.  Gross margin percentage from home sales for the 2015 first quarter was 24.2%, down 100 basis points from last quarter, consistent with the Company's expectations.  As previously disclosed, we anticipate our full year gross margin will be in the 24-25% range.

Land.  During the 2015 first quarter, the Company spent $160.1 million on land purchases and development costs, compared to $224.1 million for the 2014 first quarter. The Company purchased $78.5 million of land, consisting of 971 homesites, of which 31% (based on homesites) is located in California, 28% in Texas, 21% in the Carolinas, 19% in Florida, and 1% in Colorado.  As of March 31, 2015, the Company owned or controlled 35,183 homesites, of which 24,771 were owned and actively selling or under development, 5,999 were controlled or under option, and the remaining 4,413 homesites were held for future development or for sale.  The homesites owned that are actively selling or under development represent a 5.0 year supply based on the Company's deliveries for the trailing twelve months ended March 31, 2015.

Liquidity.  The Company ended the quarter with $516 million of available liquidity, including $81 million of unrestricted homebuilding cash and $435 million available to borrow under the revolving credit facility. The revolving credit facility has an accordion feature under which the aggregate commitment may be increased from $450 million to a maximum amount of $750 million, subject to the Company's future needs and the availability of additional bank capacity.  The Company's homebuilding debt to book capitalization as of March 31, 2015 and 2014 was 56.0% and 54.9%, respectively, and adjusted net homebuilding debt to adjusted book capitalization was 54.6%* and 51.7%*, respectively.  In addition, the Company's homebuilding debt to adjusted homebuilding EBITDA for the LTM period ending March 31, 2015 and 2014 was 4.6x* and 4.5x*, respectively.  

Earnings Conference Call

A conference call to discuss the Company's 2015 first quarter results will be held at 12:00 p.m. Eastern time May 1, 2015.  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 (888) 299-7230 (domestic) or (719) 325-2359 (international); Passcode: 7558033.  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: 7558033.  

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; cancellation rates; average home price; revenue; profitability; cash flow; liquidity; gross margin; operating margin; product mix; land supply; the benefit of, and execution on, our strategy; our future cash needs and the availability of additional bank commitments; the spring selling season; and our future growth and performance.  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, 2014 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:
Jeff McCall, EVP & CFO (949) 789-1655, [email protected]

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

(Note: Tables Follow)

KEY STATISTICS AND FINANCIAL DATA1




As of or For the Three Months Ended



March 31,

March 31,

Percentage

December 31,

Percentage



2015

2014

or % Change

2014

or % Change

Operating Data

(Dollars in thousands)















Deliveries

972

995

(2%)

1,475

(34%)

Average selling price

$

482

$

449

7%

$

491

(2%)

Home sale revenues

$

468,379

$

446,918

5%

$

724,342

(35%)

Gross margin % (including land sales)

24.3%

25.8%

(1.5%)

24.2%

0.1%

Gross margin % from home sales

24.2%

26.6%

(2.4%)

25.2%

(1.0%)

Adjusted gross margin % from home sales (excluding interest amortized to cost of home sales)*












29.0%

32.0%

(3.0%)

30.2%

(1.2%)

Incentive and stock-based compensation expense

$

4,422

$

5,028

(12%)

$

7,364

(40%)

Selling expenses

$

26,123

$

22,699

15%

$

35,746

(27%)

G&A expenses (excluding incentive and stock-based 

compensation expenses)











$

35,525

$

30,863

15%

$

36,162

(2%)

SG&A expenses

$

66,070

$

58,590

13%

$

79,272

(17%)

SG&A % from home sales

14.1%

13.1%

1.0%

10.9%

3.2%

Operating margin from home sales

$

47,492

$

60,083

(21%)

$

103,455

(54%)

Operating margin % from home sales

10.1%

13.4%

(3.3%)

14.3%

(4.2%)

Net new orders (homes)

1,571

1,311

20%

978

61%

Net new orders (dollar value)

$

829,930

$

633,818

31%

$

494,064

68%

Average active selling communities

198

174

14%

184

8%

Monthly sales absorption rate per community

2.6

2.5

5%

1.8

49%

Cancellation rate

11%

14%

(3%)

21%

(10%)

Gross cancellations

200

221

(10%)

258

(22%)

Cancellations from current quarter sales

84

90

(7%)

70

20%

Backlog (homes)

2,310

2,016

15%

1,711

35%

Backlog (dollar value)

$

1,293,272

$

1,001,385

29%

$

916,376

41%















Cash flows (uses) from operating activities

$

(94,071)

$

(117,563)

20%

$

(103,851)

9%

Cash flows (uses) from investing activities

$

(7,884)

$

10,286


$

(5,690)

(39%)

Cash flows (uses) from financing activities

$

(6,840)

$

(50,902)

87%

$

296,266

Land purchases (incl. seller financing)

$

78,494

$

144,744

(46%)

$

172,320

(54%)

Adjusted Homebuilding EBITDA*

$

74,457

$

89,008

(16%)

$

143,529

(48%)

Adjusted Homebuilding EBITDA Margin %*

15.8%

19.3%

(3.5%)

19.0%

(3.2%)

Homebuilding interest incurred

$

41,803

$

38,786

8%

$

39,960

5%

Homebuilding interest capitalized to inventories owned

$

41,401

$

38,213

8%

$

39,594

5%

Homebuilding interest capitalized to investments in JVs

$

402

$

573

(30%)

$

366

10%

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

$

22,638

$

24,983

(9%)

$

39,354

(42%)



As of 



March 31,

December 31,

Percentage



2015

2014

or % Change

Balance Sheet Data

(Dollars in thousands, except per share amounts)










Homebuilding cash (including restricted cash)

$

120,167

$

218,650

(45%)

Inventories owned

$

3,480,777

$

3,255,204

7%

Homesites owned and controlled

35,183

35,430

(1%)

Homes under construction

2,317

2,032

14%

Completed specs

424

515

(18%)

Deferred tax asset valuation allowance

$

1,375

$

2,561

(46%)

Homebuilding debt

$

2,151,607

$

2,136,082

1%

Stockholders' equity

$

1,688,355

$

1,676,688

1%








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

$

4.66

$

4.62

1%

Total consolidated debt to book capitalization

57.1%

57.0%

0.1%








Adjusted net homebuilding debt to total adjusted book capitalization*

54.6%

53.3%

1.3%

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 March 31,




2015

2014




(Dollars in thousands, except per share amounts)




(Unaudited)

Homebuilding:





Home sale revenues

$

468,379

$

446,918

Land sale revenues

1,899

13,281


Total revenues

470,278

460,199

Cost of home sales

(354,817)

(328,245)

Cost of land sales

(1,356)

(13,004)


Total cost of sales

(356,173)

(341,249)



Gross margin

114,105

118,950



Gross margin %

24.3%

25.8%

Selling, general and administrative expenses

(66,070)

(58,590)

Income (loss) from unconsolidated joint ventures

(451)

(437)

Other income (expense)

(296)

(13)



Homebuilding pretax income 

47,288

59,910

Financial Services:





Revenues

4,919

4,984

Expenses

(4,101)

(3,440)

Other income

390

161



Financial services pretax income

1,208

1,705

Income before taxes

48,496

61,615

Provision for income taxes

(16,891)

(23,456)

Net income 

31,605

38,159

  Less: Net income allocated to preferred shareholder

(7,662)

(9,147)

  Less: Net income allocated to unvested restricted stock

(67)

(59)

Net income available to common stockholders

$

23,876

$

28,953









Income Per Common Share:





Basic

$

0.09

$

0.10

Diluted

$

0.08

$

0.09









Weighted Average Common Shares Outstanding:





Basic

273,635,605

277,948,342

Diluted

310,391,822

315,894,969









Weighted average additional common shares outstanding





if preferred shares converted to common shares

87,812,786

87,812,786









Total weighted average diluted common shares outstanding





if preferred shares converted to common shares

398,204,608

403,707,755

CONDENSED CONSOLIDATED BALANCE SHEETS

 





March 31,

December 31,





2015

2014





(Dollars in thousands)

ASSETS

(Unaudited)


Homebuilding:





Cash and equivalents

$

80,926

$

180,428

Restricted cash

39,241

38,222

Trade and other receivables

25,970

19,005

Inventories:







Owned

3,480,777

3,255,204


Not owned

50,856

85,153

Investments in unconsolidated joint ventures

51,362

50,111

Deferred income taxes, net

273,678

276,402

Other assets

39,872

42,592



Total Homebuilding Assets

4,042,682

3,947,117

Financial Services:





Cash and equivalents

22,672

31,965

Restricted cash

1,295

1,295

Mortgage loans held for sale, net

98,692

174,420

Mortgage loans held for investment, net

18,518

14,380

Other assets

8,290

5,243



Total Financial Services Assets

149,467

227,303




Total Assets

$

4,192,149

$

4,174,420










LIABILITIES AND EQUITY




Homebuilding:





Accounts payable

$

58,564

$

45,085

Accrued liabilities

199,846

223,783

Revolving credit facility

15,000

        ―    

Secured project debt and other notes payable

4,378

4,689

Senior notes payable

2,132,229

2,131,393



Total Homebuilding Liabilities

2,410,017

2,404,950

Financial Services:





Accounts payable and other liabilities

2,240

3,369

Mortgage credit facilities

91,537

89,413



Total Financial Services Liabilities

93,777

92,782




Total Liabilities

2,503,794

2,497,732

Equity:





Stockholders' Equity:






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






    authorized; 267,829 shares issued and outstanding






    at March 31, 2015 and December 31, 2014

3

3


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






    authorized; 274,390,765 and 275,141,189 shares 






    issued and outstanding at March 31, 2015 and






    December 31, 2014, respectively

2,744

2,751


Additional paid-in capital

1,326,771

1,346,702


Accumulated earnings

358,837

327,232



Total Equity

1,688,355

1,676,688




Total Liabilities and Equity

$

4,192,149

$

4,174,420










INVENTORIES







March 31,

December 31,


2015

2014


(Dollars in thousands)

Inventories Owned:

(Unaudited)






     Land and land under development

$     2,287,004

$     2,248,289

     Homes completed and under construction

1,007,853

827,612

     Model homes

185,920

179,303

        Total inventories owned

$     3,480,777

$     3,255,204





Inventories Owned by Segment:








     California

$     1,520,677

$     1,422,330

     Southwest

852,540

799,473

     Southeast

1,107,560

1,033,401

        Total inventories owned

$     3,480,777

$     3,255,204

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS











Three Months Ended March 31,





2015

2014





(Dollars in thousands)





(Unaudited)

Cash Flows From Operating Activities:





Net income

$

31,605

$

38,159

Adjustments to reconcile net income to net cash 






provided by (used in) operating activities:







Amortization of stock-based compensation

2,695

2,372



Excess tax benefits from share-based payment arrangements

(3,369)

       ―   



Deferred income tax provision

16,874

23,622



Other operating activities

1,892

1,616



Changes in cash and equivalents due to:








Trade and other receivables

(7,008)

(17,549)




Mortgage loans held for sale

75,724

51,938




Inventories - owned

(199,972)

(188,759)




Inventories - not owned

(5,878)

(8,165)




Other assets

76

(833)




Accounts payable

13,479

1,376




Accrued liabilities

(20,189)

(21,340)


Net cash provided by (used in) operating activities

(94,071)

(117,563)










Cash Flows From Investing Activities:





Investments in unconsolidated homebuilding joint ventures

(7,639)

(2,787)

Distributions of capital from unconsolidated joint ventures

5,732

14,808

Other investing activities

(5,977)

(1,735)


Net cash provided by (used in) investing activities

(7,884)

10,286










Cash Flows From Financing Activities:





Change in restricted cash

(1,019)

(5,238)

Net proceeds from (payments on) revolving credit facility

15,000

       ―   

Principal payments on secured project debt and other notes payable

(311)

(890)

Net proceeds from (payments on) mortgage credit facilities

2,124

(48,370)

Repurchases of common stock

(22,073)

       ―   

Issuance of common stock under employee stock plans

(3,930)

3,596

Excess tax benefits from share-based payment arrangements

3,369

       ―   


Net cash provided by (used in) financing activities

(6,840)

(50,902)










Net increase (decrease) in cash and equivalents

(108,795)

(158,179)

Cash and equivalents at beginning of period

212,393

363,291

Cash and equivalents at end of period

$

103,598

$

205,112










Cash and equivalents at end of period

$

103,598

$

205,112

Homebuilding restricted cash at end of period

39,241

26,698

Financial services restricted cash at end of period

1,295

1,295

Cash and equivalents and restricted cash at end of period

$

144,134

$

233,105

REGIONAL OPERATING DATA











Three Months Ended March 31,





2015

2014

% Change





Homes

ASP

Homes

ASP

Homes

ASP





(Dollars in thousands)

New homes delivered:


















California

292

$

634

339

$

624

(14%)

2%


Arizona

57

322

63

305

(10%)

6%


Texas

198

494

149

415

33%

19%


Colorado

40

552

53

484

(25%)

14%

Southwest

295

469

265

403

11%

16%


Florida

201

414

235

350

(14%)

18%


Carolinas

184

337

156

298

18%

13%

Southeast

385

377

391

329

(2%)

15%



Consolidated total

972

$

482

995

$

449

(2%)

7%





Three Months Ended March 31,





2015

2014

% Change





Homes

ASP

Homes

ASP

Homes

ASP





(Dollars in thousands)

Net new orders:


















California

526

$

688

473

$

646

11%

7%


Arizona

95

346

67

305

42%

13%


Texas

309

503

235

464

31%

8%


Colorado

83

527

53

480

57%

10%

Southwest

487

477

355

436

37%

9%


Florida

313

469

283

395

11%

19%


Carolinas

245

363

200

307

23%

18%

Southeast

558

423

483

359

16%

18%



Consolidated total

1,571

$

528

1,311

$

483

20%

9%





Three Months Ended March 31,





2015

2014

% Change

Average number of selling communities 





  during the period:






California

48

46

4%


Arizona

13

11

18%


Texas

47

35

34%


Colorado

9

10

(10%)

Southwest

69

56

23%


Florida

53

41

29%


Carolinas

28

31

(10%)

Southeast

81

72

13%



Consolidated total

198

174

14%





At March 31,





2015

2014

% Change





Homes

Dollar Value

Homes

Dollar Value

Homes

Dollar Value





(Dollars in thousands)

Backlog:


















California

532

$

408,967

530

$

360,371

0%

13%


Arizona

134

48,814

109

38,032

23%

28%


Texas

582

306,326

376

184,452

55%

66%


Colorado

118

67,576

108

55,930

9%

21%

Southwest

834

422,716

593

278,414

41%

52%


Florida

563

320,119

552

248,543

2%

29%


Carolinas

381

141,470

341

114,057

12%

24%

Southeast

944

461,589

893

362,600

6%

27%



Consolidated total

2,310

$

1,293,272

2,016

$

1,001,385

15%

29%





At March 31,





2015

2014

% Change

Homesites owned and controlled:






California

9,880

9,545

4%


Arizona

2,041

2,302

(11%)


Texas

4,640

4,555

2%


Colorado

1,047

1,254

(17%)


Nevada

1,124

1,124

          ―   

Southwest

8,852

9,235

(4%)


Florida

12,372

12,257

1%


Carolinas

4,079

4,678

(13%)

Southeast

16,451

16,935

(3%)


Total (including joint ventures)

35,183

35,715

(1%)











Homesites owned

29,184

28,743

2%

Homesites optioned or subject to contract 

5,801

6,707

(14%)

Joint venture homesites

198

265

(25%)


Total (including joint ventures)

35,183

35,715

(1%)




















Homesites owned:






Raw lots

8,221

6,892

19%

Homesites under development

7,659

9,811

(22%)

Finished homesites

7,654

6,341

21%

Under construction or completed homes

3,428

3,198

7%

Held for sale

2,222

2,501

(11%)


Total

29,184

28,743

2%

   

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 adjusted 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

March 31,
2015

Gross
Margin %

March 31,
2014

Gross
Margin %

December 31,
2014

Gross
Margin %

(Dollars in thousands)















Home sale revenues

$

468,379


$

446,918


$

724,342

Less: Cost of home sales

(354,817)



(328,245)



(541,615)

Gross margin from home sales

113,562

24.2%

118,673

26.6%

182,727

25.2%

Add: Capitalized interest included in cost 













  of home sales

22,395

4.8%

24,368

5.4%

36,370

5.0%

Adjusted gross margin from home sales, excluding interest amortized to cost of home sales













$

135,957

29.0%

$

143,041

32.0%

$

219,097

30.2%

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.  In addition, the table set forth below calculates homebuilding debt to adjusted homebuilding EBITDA.  We believe these ratios are 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. 




March 31,
2015

December 31,
2014

March 31,
2014



(Dollars in thousands)











Total consolidated debt

$

2,243,144

$

2,225,495

$

1,892,491

Less:









Financial services indebtedness

(91,537)

(89,413)

(52,497)

Homebuilding cash

(120,167)

(218,650)

(221,400)

Adjusted net homebuilding debt

2,031,440

1,917,432

1,618,594

Stockholders' equity

1,688,355

1,676,688

1,513,087

Total adjusted book capitalization

$

3,719,795

$

3,594,120

$

3,131,681











Total consolidated debt to book capitalization

57.1%

57.0%

55.6%











Adjusted net homebuilding debt to total adjusted book capitalization

54.6%

53.3%

51.7%






















Homebuilding debt

$

2,151,607

$

2,136,082

$

1,839,994

LTM adjusted homebuilding EBITDA

$

465,453

$

480,004

$

408,806











Homebuilding debt to adjusted homebuilding EBITDA

 4.6x 

 4.5x 

 4.5x 

The table set forth below calculates adjusted stockholders' equity per common share.  The Company believes that the adjusted stockholders' equity per common share information is useful to management and investors as a measure to determine the book value per common share after giving the pro forma effect to the conversion of our outstanding preferred shares assuming full conversion to common stock.

March 31,

December 31,

2015

2014






Actual common shares outstanding

274,390,765

275,141,189

Add: Conversion of preferred shares to common shares

87,812,786

87,812,786

Pro forma common shares outstanding

362,203,551

362,953,975






Stockholders' equity (Dollars in thousands)

$

1,688,355

$

1,676,688

Divided by pro forma common shares outstanding

÷

362,203,551

÷

362,953,975

Adjusted stockholders' equity per common share

$

4.66

$

4.62

The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA.  Adjusted Homebuilding EBITDA means net income (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (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 subsidiaries.  Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently.  We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing.  Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, 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.

Three Months Ended

LTM Ended March 31,



March 31,
2015

March 31,
2014

December 31,
2014

2015

2014



(Dollars in thousands)

















Net income 

$

31,605

$

38,159

$

64,644

$

209,311

$

205,050

Provision for income taxes

16,891

23,456

39,738

127,534

78,870

Homebuilding interest amortized to cost of sales and interest expense

22,638

24,983

39,354

120,767

118,876

Homebuilding depreciation and amortization

1,385

1,145

1,206

5,030

3,972

Amortization of stock-based compensation

2,695

2,372

733

8,792

9,856

EBITDA

75,214

90,115

145,675

471,434

416,624

Add:














Cash distributions of income from unconsolidated joint ventures

         ―    

         ―    

         ―    

1,875

1,500

Less:















Income (loss) from unconsolidated joint ventures

(451)

(437)

(326)

(682)

(622)

Income from financial services subsidiaries

1,208

1,544

2,472

8,538

9,940

Adjusted Homebuilding EBITDA

$

74,457

$

89,008

$

143,529

$

465,453

$

408,806

















Homebuilding revenues

$

470,278

$

460,199

$

753,644

$

2,421,257

$

2,017,087

















Adjusted Homebuilding EBITDA Margin %

15.8%

19.3%

19.0%

19.2%

20.3%

The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:


Three Months Ended

LTM Ended March 31,




March 31,
2015

March 31,
2014

December 31,
2014

2015

2014




(Dollars in thousands)


















Net cash provided by (used in) operating activities

$

(94,071)

$

(117,563)

$

(103,851)

$

(338,905)

$

(213,318)

Add:














Provision for income taxes

16,891

23,456

39,738

127,534

78,870

Deferred income tax provision

(16,874)

(23,622)

(4,524)

(92,250)

(94,462)

Homebuilding interest amortized to cost of sales and interest expense

22,638

24,983

39,354

120,767

118,876

Excess tax benefits from share-based payment arrangements

3,369

        ―   

12,444

16,773

        ―   

Less:















Income from financial services subsidiaries

1,208

1,544

2,472

8,538

9,940

Depreciation and amortization from financial services subsidiaries

37

33

36

142

126

Loss on disposal of property and equipment

19

1

5

29

3

Net changes in operating assets and liabilities:















Trade and other receivables

7,008

17,549

(11,820)

(5,764)

11,877


Mortgage loans held for sale

(75,724)

(51,938)

105,946

29,052

(49,255)


Inventories-owned

199,972

188,759

94,418

653,221

531,041


Inventories-not owned

5,878

8,165

13,143

30,740

46,544


Other assets

(76)

833

(7,354)

(10,215)

1,697


Accounts payable 

(13,479)

(1,376)

5,439

(21,417)

(16,279)


Accrued liabilities

20,189

21,340

(36,891)

(35,374)

3,284

Adjusted Homebuilding EBITDA

$

74,457

$

89,008

$

143,529

$

465,453

$

408,806

SOURCE Standard Pacific Corp.

Related Links

http://www.standardpacifichomes.com

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