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| Standard Pacific Corp. Reports 2010 First Quarter Results |
IRVINE, Calif., April 19, 2010 /PRNewswire via COMTEX/ --Standard Pacific Corp. (NYSE: SPF) today announced operating results for its first quarter ended March 31, 2010. 2010 First Quarter Highlights and Comparisons to the 2009 First Quarter
The Company generated a net loss of $5.1 million, or $0.02 per diluted share, for the 2010 first quarter compared to a net loss of $49.5 million, or $0.21 per diluted share, for the year earlier period. The primary drivers of the improved operating performance were higher gross margins, reduced asset impairments, higher average sales price and lower overhead costs. The 2009 first quarter results included $30.8 million of asset impairment charges, $14.1 million of restructuring charges and a $5.2 million gain on the early extinguishment of debt. The 2010 first quarter did not include any asset impairment or restructuring charges. Homebuilding revenues for the 2010 first quarter were $175.4 million, down 16% from $209.5 million for the 2009 first quarter. The decrease in homebuilding revenues was driven primarily by a 22% decline in new home deliveries to 537 homes (exclusive of joint ventures). The decrease in deliveries was partially due to the significant reduction in the number of completed and unsold homes available for sale at the beginning of the 2010 first quarter as compared to the year earlier period and, to a lesser extent, a 7% decline in the 2010 first quarter beginning backlog as compared to the prior year period. The decline in deliveries was partially offset by a 9% increase in consolidated average home price to $326,000, largely due to a greater proportion of homes delivered within California during the quarter as compared to the 2009 first quarter. Gross margin from home sales for the 2010 first quarter was 22.7% versus an adjusted gross margin from home sales for the year earlier period of 17.4%* (excluding $26.3 million of inventory impairments for the 2009 first quarter). The 530 basis point improvement in the 2010 first quarter gross margin from home sales was primarily the result of a larger mix of California deliveries, lower direct construction costs and, to a lesser extent, price increases in California. Excluding impairments and previously capitalized interest costs, gross margin from home sales for the 2010 first quarter was 29.2%* versus 23.7%* for the 2009 first quarter. The Company's 2010 first quarter SG&A expenses (including Corporate G&A) decreased $19.6 million, or 37%, to $32.8 million from $52.4 million in the 2009 first quarter. The Company's 2009 first quarter SG&A expenses included $12.0 million in restructuring charges related to severance and lease terminations. The Company's 2010 first quarter SG&A rate from home sales was 18.7% versus an adjusted rate of 19.6%* (excluding restructuring charges for the 2009 first quarter). The reduction in the Company's SG&A expenses was primarily the result of lower personnel costs, commissions and model costs. The Company generated $33.6 million of cash flows from operations for the 2010 first quarter versus $129.0 million for the year earlier period. The decline in cash flows as compared to the 2009 first quarter was driven primarily by a $47.1 million increase in land purchases and a 22% decline in deliveries resulting from a decrease in the number of unsold completed and under construction homes available for sale as of December 31, 2009 as compared to December 31, 2008. Cash flows from operations for the three months ended March 31, 2010 and 2009 included $50.8 million and $3.7 million, respectively, of land purchases and $108 million and $114 million, respectively, of federal tax refunds. Excluding land purchases and sales, cash flows from operations for the 2010 first quarter were $83.9 million* versus $132.1 million* in the year earlier period. Net new orders (excluding joint ventures) for the 2010 first quarter increased 3% from the 2009 first quarter to 759 homes, despite a 20% decrease in the number of average active selling communities, from 158 to 126. The Company's monthly sales absorption rate for the 2010 first quarter was 2.0 per community compared to 1.5 per community for the 2009 first quarter. The Company's cancellation rate for the 2010 first quarter was 15% versus 24% for the 2009 first quarter and 21% for the 2009 fourth quarter. The total number of sales cancellations for the 2010 first quarter was 133, of which 60 cancellations related to homes in the Company's 2010 first quarter beginning backlog and 73 related to orders generated during the quarter. The dollar value of the Company's backlog (excluding joint ventures) increased 31% to $278.3 million, or 821 homes, compared to $212.2 million, or 689 homes, for the 2009 first quarter. The increase in backlog value was driven primarily by an increase in the number and average price of California homes in backlog and, to a lesser extent, increased sales during the quarter. During the 2010 first quarter, the Company approved the purchase of $105 million of land, comprised of approximately 1,800 lots, 76% of which are finished, 11% partially developed and 13% raw. Approximately 56% of the approved purchases are transactions with developers and 25% with banks. During the same period, the Company purchased approximately 940 lots valued at $51 million. Approximately 42% of the $51 million in land purchases related to land located in California and 37% in the Carolinas, with the balance spread throughout the Company's other operations. As of March 31, 2010, the Company had outstanding approximately $179 million of approved land purchases and option contracts, of which $113 million is expected to be purchased in 2010 and $66 million expected to be purchased in 2011 and beyond. Ken Campbell, the Company's President and CEO commented, "I am pleased with our strong gross margins and reduced spending on overhead. I am also encouraged by the growth in our land opportunities at prices that meet our return thresholds." Earnings Conference Call A conference call to discuss the Company's 2010 first quarter will be held at 1:00 p.m. Eastern time Monday, April 19, 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 (800) 289-0517 (domestic) or (913) 312-0862 (international); Passcode: 2530604. 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: 2530604. 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: www.standardpacifichomes.com. This news release contains forward-looking statements. These statements include but are not limited to the availability of land opportunities that meet our return threshold and our ability to consummate these opportunities; statements regarding trends in new home orders, deliveries, average home price, backlog, gross margins and overhead expenses; 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 debt agreements; our ability to repay our 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, 2009 and subsequent Quarterly Reports on Form 10-Q. The Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements. The Company nonetheless reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
Contact:
John Stephens, SVP & CFO (949) 789-1641, jstephens@stanpac.com
*Please see "Reconciliation of Non-GAAP Financial Measures" on page 8. (Note: Tables follow)
KEY STATISTICS AND FINANCIAL DATA(1)
As of or For the Three Months Ended
-----------------------------------
% or
March 31, March 31, Percentage
2010 2009 Change
---- ---- ------
Operating Data (Dollars in thousands, except average selling price)
--------------
Deliveries 537 687 (22%)
Average selling
price $326,000 $300,000 9%
Homebuilding
revenues $175,369 $209,535 (16%)
Gross margin % 22.7% 3.9% 18.8%
Gross margin %
from home sales
(excluding
impairments)* 22.7% 17.4% 5.3%
Gross margin %
from home sales
(excluding
impairments
and interest
amortized to
cost of home
sales)* 29.2% 23.7% 5.5%
Impairments and
write-offs $ - $30,805 (100%)
Restructuring
charges $ - $14,119 (100%)
SG&A % 18.7% 25.0% (6.3%)
SG&A % (excluding
restructuring
charges and land
sales)* 18.7% 19.6% (0.9%)
Net new orders 759 734 3%
Average active
selling
communities 126 158 (20%)
Monthly sales
absorption rate
per community 2.0 1.5 33%
Cancellation rate 15% 24% (9%)
Gross
cancellations 133 229 (42%)
Backlog (homes) 821 689 19%
Backlog (dollar
value) $278,269 $212,208 31%
Cash flows (uses)
from operating
activities $33,570 $128,998 (74%)
Cash flows (uses)
from investing
activities $(1,008) $(1,500) (33%)
Cash flows (uses)
from financing
activities $(41,863) $(204,723) (80%)
Land purchases
(excl. JV
unwinds) $50,779 $3,730 1,261%
Land sale
proceeds $452 $598 (24%)
Adjusted
Homebuilding
EBITDA* $21,879 $2,069 957%
Homebuilding
interest
incurred $26,230 $28,396 (8%)
Homebuilding
interest
capitalized to
inventories
owned $13,599 $16,495 (18%)
Homebuilding
interest
capitalized to
investments in
unconsolidated
joint ventures $646 $860 (25%)
Interest
amortized to
cost of sales
(incl. cost of
land sales) $11,796 $14,677 (20%)
As of or For the Three Months Ended
-----------------------------------
December % or
31, Percentage
2009 Change
---- ------
Operating Data (Dollars in thousands, except average selling price)
--------------
Deliveries 943 (43%)
Average selling
price $318,000 3%
Homebuilding
revenues $339,779 (48%)
Gross margin % 15.3% 7.4%
Gross margin %
from home sales
(excluding
impairments)* 20.3% 2.4%
Gross margin %
from home sales
(excluding
impairments
and interest
amortized to
cost of home
sales)* 26.9% 2.3%
Impairments and
write-offs $11,192 (100%)
Restructuring
charges $1,637 (100%)
SG&A % 14.5% 4.2%
SG&A % (excluding
restructuring
charges and land
sales)* 16.1% 2.6%
Net new orders 547 39%
Average active
selling
communities 124 2%
Monthly sales
absorption rate
per community 1.5 33%
Cancellation rate 21% (6%)
Gross
cancellations 146 (9%)
Backlog (homes) 599 37%
Backlog (dollar
value) $207,887 34%
Cash flows (uses)
from operating
activities $109,665 (69%)
Cash flows (uses)
from investing
activities $(6,432) (84%)
Cash flows (uses)
from financing
activities $(37,679) 11%
Land purchases
(excl. JV
unwinds) $35,256 44%
Land sale
proceeds $39,273 (99%)
Adjusted
Homebuilding
EBITDA* $49,471 (56%)
Homebuilding
interest
incurred $26,566 (1%)
Homebuilding
interest
capitalized to
inventories
owned $13,901 (2%)
Homebuilding
interest
capitalized to
investments in
unconsolidated
joint ventures $616 5%
Interest
amortized to
cost of sales
(incl. cost of
land sales) $27,255 (57%)
As of
-----
% or
March 31, December 31, Percentage
2010 2009 Change
---------- ------------- -----------
Balance Sheet (Dollars in thousands, except per
Data share amounts)
-------------
Homebuilding
cash
(including
restricted
cash) $591,663 $602,222 (2%)
Inventories
owned $1,030,158 $986,322 4%
Building sites
owned or
controlled 20,505 19,191 7%
Homes under
construction 1,104 934 18%
Completed
specs 254 282 (10%)
Deferred tax
asset
valuation
allowance $536,645 $534,596 0%
Homebuilding
debt $1,124,266 $1,156,726 (3%)
Joint venture
recourse debt $37,470 $38,835 (4%)
Stockholders'
equity $434,568 $435,798 (0%)
Stockholders'
equity per
share
(including
if-converted
preferred
stock)* $1.74 $1.75 (1%)
Total debt to
book
capitalization* 72.7% 73.4% (0.7%)
Adjusted net
homebuilding
debt to total
adjusted book
capitalization* 55.1% 56.0% (0.9%)
(1) All statistical numbers exclude unconsolidated joint ventures and discontinued operations unless noted otherwise. *Please see "Reconciliation of Non-GAAP Financial Measures" beginning on page 8.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
----------------------------
2010 2009
---- ----
(Dollars in thousands, except
per share amounts)
(Unaudited)
Homebuilding:
Home sale revenues $174,913 $206,233
Land sale revenues 456 3,302
--- -----
Total revenues 175,369 209,535
------- -------
Cost of home sales (135,253) (196,702)
Cost of land sales (253) (4,735)
---- ------
Total cost of sales (135,506) (201,437)
-------- --------
Gross margin 39,863 8,098
------ -----
Gross margin % 22.7% 3.9%
---- ---
Selling, general and administrative
expenses (32,752) (52,379)
Income (loss) from unconsolidated joint
ventures (434) 3,089
Interest expense (11,985) (11,041)
Gain on early extinguishment of debt - 5,191
Other income (expense) 424 (767)
--- ----
Homebuilding pretax loss (4,884) (47,809)
------ -------
Financial Services:
Revenues 2,298 2,050
Expenses (2,429) (2,995)
Other income 33 41
--- ---
Financial services pretax loss (98) (904)
--- ----
Loss from continuing operations before
income taxes (4,982) (48,713)
Provision for income taxes (89) (255)
--- ----
Loss from continuing operations (5,071) (48,968)
Loss from discontinued operations, net
of income taxes - (504)
--- ----
Net loss (5,071) (49,472)
Less: Net loss allocated to preferred
stockholders 3,002 30,394
----- ------
Net loss available to common
stockholders $(2,069) $(19,078)
======= ========
Basic loss per common share:
Continuing operations $(0.02) $(0.21)
Discontinued operations - -
Basic loss per common share $(0.02) $(0.21)
====== ======
Diluted loss per common share:
Continuing operations $(0.02) $(0.21)
Discontinued operations - -
Diluted loss per common share $(0.02) $(0.21)
====== ======
Weighted average common shares
outstanding:
Basic 101,836,408 92,784,541
Diluted 101,836,408 92,784,541
Weighted average additional common
shares outstanding if preferred shares
converted to common shares 147,812,786 147,812,786
REGIONAL OPERATING DATA
Three Months Ended March 31,
----------------------------
2010 2009
---- ----
Homes Avg. Homes Avg.
----- Selling ----- Selling
Price Price
----- -----
New homes
delivered:
California 218 $454,000 218 $453,000
Arizona 47 198,000 72 225,000
Texas (1) 90 299,000 128 274,000
Colorado 25 298,000 30 299,000
Nevada - - 2 234,000
Florida 86 188,000 160 192,000
Carolinas 71 227,000 77 211,000
--- ------- --- -------
Consolidated
total 537 326,000 687 300,000
Unconsolidated
joint ventures 13 492,000 19 538,000
Discontinued
operations - - 3 224,000
--- --- --- -------
Total
(including
joint
ventures) 550 $330,000 709 $306,000
=== ======== === ========
Three Months Ended March 31,
----------------------------
2010 2009
---- ----
% Change
Homes Avg. Homes Avg. Same Store
----- ---- ----- ---- -----------
Selling Selling
Communities Communities
------------ ------------
Net new orders:
California 290 44 263 53 33%
Arizona 60 8 40 11 106%
Texas (1) 106 18 108 20 9%
Colorado 29 6 29 7 17%
Nevada 3 1 - 2 -
Florida 141 24 179 39 28%
Carolinas 130 25 115 26 18%
--- --- --- --- ---
Consolidated
total 759 126 734 158 30%
Unconsolidated
joint ventures 15 3 50 10 0%
Discontinued
operations - - 2 - -
--- --- --- --- ---
Total (including
joint ventures) 774 129 786 168 28%
=== === === === ===
At March 31,
------------
2010 2009
---- ----
Backlog ($ in
thousands): Homes Value Homes Value
----- ----- ----- -----
California 319 $154,630 199 $89,954
Arizona 60 12,518 44 9,535
Texas 125 37,415 110 33,468
Colorado 58 16,847 77 23,814
Nevada 3 591 2 458
Florida 133 25,709 166 33,930
Carolinas 123 30,559 91 21,049
--- ------ --- ------
Consolidated total 821 278,269 689 212,208
Unconsolidated joint
ventures 11 5,072 57 33,744
--- ----- --- ------
Total (including joint
ventures) 832 $283,341 746 $245,952
=== ======== === ========
(1) Texas excludes the San Antonio division, which is classified as a
discontinued operation.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2010 2009
(Dollars in thousands,
except per share amounts)
ASSETS (Unaudited)
Homebuilding:
Cash and equivalents $577,535 $587,152
Restricted cash 14,128 15,070
Trade and other receivables 20,756 12,676
Inventories:
Owned 1,030,158 986,322
Not owned 15,785 11,770
Investments in unconsolidated
joint ventures 40,784 40,415
Deferred income taxes, net 9,834 9,431
Other assets 27,422 131,086
------ -------
1,736,402 1,793,922
Financial Services:
Cash and equivalents 8,723 8,407
Restricted cash 3,195 3,195
Mortgage loans held for sale,
net 32,838 41,048
Mortgage loans held for
investment, net 10,510 10,818
Other assets 3,067 3,621
----- -----
58,333 67,089
------ ------
Total Assets $1,794,735 $1,861,011
========== ==========
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable and accrued
liabilities $202,021 $222,550
Secured project debt and other
notes payable 25,662 59,531
Senior notes payable 993,576 993,018
Senior subordinated notes
payable 105,028 104,177
------- -------
1,326,287 1,379,276
--------- ---------
Financial Services:
Accounts payable and other
liabilities 1,446 1,436
Mortgage credit facilities 32,434 40,995
------ ------
33,880 42,431
------ ------
Total Liabilities 1,360,167 1,421,707
--------- ---------
Equity:
Stockholders' Equity 434,568 435,798
Noncontrolling Interests - 3,506
--- -----
Total Equity 434,568 439,304
------- -------
Total Liabilities and Equity $1,794,735 $1,861,011
========== ==========
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 homebuilding gross margin percentage 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 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, Gross
--------- -----
2010 Margin %
---- --------
(Dollars in thousands)
Homebuilding gross margin $39,863 22.7%
Less: Land sale revenues (456)
Add: Cost of land sales 253
---
Gross margin from home sales 39,660 22.7%
Add: Housing inventory
impairment charges -
---
Gross margin from home sales,
excluding
impairment charges 39,660 22.7%
Add: Capitalized interest
included in cost
of home sales 11,363 6.5%
------
Gross margin from home sales,
excluding
impairment charges and
interest amortized
to cost of home sales $51,023 29.2%
=======
Three Months Ended
------------------
March 31, Gross
--------- -----
2009 Margin %
---- --------
(Dollars in thousands)
Homebuilding gross margin $8,098 3.9%
Less: Land sale revenues (3,302)
Add: Cost of land sales 4,735
-----
Gross margin from home sales 9,531 4.6%
Add: Housing inventory
impairment charges 26,332
------
Gross margin from home sales,
excluding
impairment charges 35,863 17.4%
Add: Capitalized interest
included in cost
of home sales 12,958 6.3%
------
Gross margin from home sales,
excluding
impairment charges and
interest amortized
to cost of home sales $48,821 23.7%
=======
Three Months Ended
------------------
December 31, Gross
----------- -----
2009 Margin %
---- --------
(Dollars in thousands)
Homebuilding gross margin $51,993 15.3%
Less: Land sale revenues (39,589)
Add: Cost of land sales 41,939
------
Gross margin from home sales 54,343 18.1%
Add: Housing inventory
impairment charges 6,601
-----
Gross margin from home sales,
excluding
impairment charges 60,944 20.3%
Add: Capitalized interest
included in cost
of home sales 19,769 6.6%
------
Gross margin from home sales,
excluding
impairment charges and
interest amortized
to cost of home sales $80,713 26.9%
=======
The table set forth below reconciles the Company's SG&A expenses to SG&A expenses, excluding restructuring charges. 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.
Three Months Ended
------------------
December
March 31, March 31, 31,
--------- --------- ---------
2010 2009 2009
---- ---- ----
(Dollars in thousands)
Selling, general and
administrative expenses $32,752 $52,379 $49,388
Less: Restructuring charges - (12,001) (980)
--- ------- ----
Selling, general and
administrative expenses,
excluding restructuring
charges $32,752 $40,378 $48,408
======= ======= =======
SG&A % from home sales,
excluding restructuring
charges 18.7% 19.6% 16.1%
==== ==== ====
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 management and investors to provide perspective on underlying cash flow generation excluding swings related to the timing of land purchases and land sales.
Three Months Ended
------------------
March 31, March 31, December 31,
--------- --------- ------------
2010 2009 2009
---- ---- ----
(Dollars in thousands)
Cash flows from operations $33,570 $128,998 $109,665
Add: Land purchases 50,779 3,730 35,256
Less: Land sale proceeds (452) (598) (39,273)
---- ---- -------
Cash flows from operations
(excluding land purchases
and land sales) $83,897 $132,130 $105,648
======= ======== ========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) 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 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 included in liabilities from inventories not owned, indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents.
March 31, December 31, March 31,
2010 2009 2009
---- ---- ----
(Dollars in thousands)
Total
consolidated
debt $1,156,700 $1,199,621 $1,458,230
Less:
Indebtedness
included in
liabilities
from
inventories
not owned - (1,900) -
Financial
services
indebtedness (32,434) (40,995) (46,940)
Homebuilding
cash (591,663) (602,222) (668,300)
-------- -------- --------
Adjusted net
homebuilding
debt 532,603 554,504 742,990
Stockholders'
equity 434,568 435,798 361,028
------- ------- -------
Total adjusted
book
capitalization $967,171 $990,302 $1,104,018
======== ======== ==========
Total debt to
book
capitalization 72.7% 73.4% 80.2%
==== ==== ====
Adjusted net
homebuilding
debt to total
adjusted book
capitalization
ratio 55.1% 56.0% 67.3%
==== ==== ====
The table set forth below calculates pro forma stockholders' equity per common share. The pro forma common shares outstanding include the if-converted Series B Preferred Stock. In addition, this calculation excludes 3.9 million shares issued under a share lending agreement related to the Company's 6% Convertible Senior Subordinated Notes issued on September 28, 2007. The Company believes that the pro forma stockholders' equity per common share information is useful to management and 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:
March 31, December 31,
--------- ------------
2010 2009
---- ----
Actual common shares outstanding 106,165,483 105,293,180
Add: Conversion of preferred shares to
common shares 147,812,786 147,812,786
Less: Common shares outstanding under
share lending facility (3,919,904) (3,919,904)
Pro forma common shares outstanding 250,058,365 249,186,062
=========== ===========
Stockholders' equity (actual amounts
rounded to nearest thousand) $434,568,000 $435,798,000
Divided by pro forma common shares
outstanding / 250,058,365 / 249,186,062
----------- -----------
Pro forma stockholders' equity per common
share $1.74 $1.75
===== =====
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA. 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 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
------------------
December
March 31, March 31, 31,
--------- --------- ---------
2010 2009 2009
---- ---- ----
(Dollars in thousands)
Net income (loss) $(5,071) $(49,472) $82,663
Provision (benefit)
for income taxes 89 - (96,563)
Homebuilding interest
amortized to cost of
sales and interest
expense 23,781 25,718 39,304
Homebuilding
depreciation and
amortization 551 824 632
Amortization of stock-
based compensation 1,964 1,529 5,605
----- ----- -----
EBITDA 21,314 (21,401) 31,641
Add:
Cash distributions of
income from
unconsolidated joint
ventures - - 3,139
Impairment charges - 30,805 11,192
(Gain) loss on early
extinguishment of
debt - (5,191) 3,474
Less:
Income (loss) from
unconsolidated joint
ventures (434) 3,089 (267)
Income (loss) from
financial services
subsidiary (131) (945) 242
---- ---- ---
Adjusted Homebuilding
EBITDA $21,879 $2,069 $49,471
======= ====== =======
LTM Ended March 31,
-------------------
2010 2009
---- ----
(Dollars in thousands)
Net income (loss) $30,615 $(1,066,220)
Provision (benefit) for income
taxes (96,474) (6,795)
Homebuilding interest amortized to
cost of sales and interest
expense 132,356 106,811
Homebuilding depreciation and
amortization 2,566 5,024
Amortization of stock-based
compensation 13,299 8,483
------ -----
EBITDA 82,362 (952,697)
Add:
Cash distributions of income from
unconsolidated joint ventures 3,465 1,618
Impairment charges 32,135 862,780
(Gain) loss on early
extinguishment of debt 12,122 10,620
Less:
Income (loss) from unconsolidated
joint ventures (8,120) (127,421)
Income (loss) from financial
services subsidiary 2,142 (2,815)
----- ------
Adjusted Homebuilding EBITDA $136,062 $52,557
======== =======
The table set forth below reconciles net cash provided by (used in) operating activities, from continuing and discontinued operations, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
Three Months Ended
------------------
December
March 31, March 31, 31,
--------- --------- ---------
2010 2009 2009
---- ---- ----
(Dollars in thousands)
Net cash provided by
(used in) operating
activities $33,570 $128,998 $109,665
Add:
Provision (benefit)
for income taxes 89 - (96,563)
Deferred tax
valuation allowance (2,048) (19,167) 88,787
Homebuilding interest
amortized to cost of
sales and interest
expense 23,781 25,718 39,304
Excess tax benefits
from share-based
payment arrangements 27 - 297
Less:
Income (loss) from
financial services
subsidiary (131) (945) 242
Depreciation and
amortization from
financial services
subsidiary 157 175 163
(Gain) loss on
disposal of property
and equipment (36) 663 1,272
Net changes in
operating assets and
liabilities:
Trade and other
receivables 8,080 6,393 (4,976)
Mortgage loans held
for sale (8,544) (15,799) (1,702)
Inventories-owned 40,826 (41,822) (84,537)
Inventories-not
owned 11,062 678 1,343
Deferred income taxes 1,959 19,167 7,775
Other assets (108,412) (120,274) (1,587)
Accounts payable and
accrued liabilities 21,479 18,070 (6,658)
------ ------ ------
Adjusted Homebuilding
EBITDA $21,879 $2,069 $49,471
======= ====== =======
LTM Ended March 31,
-------------------
2010 2009
---- ----
(Dollars in thousands)
Net cash provided by (used in)
operating activities $324,402 $163,267
Add:
Provision (benefit) for income
taxes (96,474) (6,795)
Deferred tax valuation allowance 68,548 (409,048)
Homebuilding interest amortized to
cost of sales and interest
expense 132,356 106,811
Excess tax benefits from share-
based payment arrangements 324 -
Less:
Income (loss) from financial
services subsidiary 2,142 (2,815)
Depreciation and amortization from
financial services subsidiary 660 751
(Gain) loss on disposal of
property and equipment 1,912 3,455
Net changes in operating assets
and liabilities:
Trade and other receivables (6,753) (3,592)
Mortgage loans held for sale (17,463) (7,396)
Inventories-owned (243,414) (112,447)
Inventories-not owned 13,189 (316)
Deferred income taxes 27,924 302,072
Other assets (106,403) (43,117)
Accounts payable and accrued
liabilities 44,540 64,509
------ ------
Adjusted Homebuilding EBITDA $136,062 $52,557
======== =======
SOURCE Standard Pacific Corp. |
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