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As Of Filer Filing For·On·As Docs:Size 11/01/11 CalAtlantic Group, Inc. 10-Q 9/30/11 40:9.7M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report -- form10q HTML 1.22M 2: EX-31.1 Section 302 CEO Certification HTML 21K 3: EX-31.2 Section 302 CFO Certification HTML 21K 4: EX-32.1 Section 906 CEO and CFO Certifications HTML 16K 14: R1 Document And Entity Information HTML 36K 38: R2 Condensed Consolidated Statements of Operations HTML 107K (Unaudited) 11: R3 Condensed Consolidated Balance Sheets (Unaudited) HTML 115K 12: R4 Condensed Consolidated Balance Sheets (Unaudited) HTML 40K (Parentheticals) 32: R5 Condensed Consolidated Statements of Cash Flows HTML 142K (Unaudited) 25: R6 Note 1 - Basis of Presentation HTML 16K 35: R7 Note 2 - Recent Accounting Pronouncements HTML 17K 20: R8 Note 3 - Segment Reporting HTML 152K 26: R9 Note 4 - Earnings (Loss) Per Common Share HTML 90K 27: R10 Note 5 - Comprehensive Income (Loss) HTML 37K 29: R11 Note 6 - Stock-Based Compensation HTML 37K 16: R12 Note 7 - Restricted Cash HTML 15K 24: R13 Note 8 - Inventories HTML 69K 21: R14 Note 9 - Capitalization of Interest HTML 60K 23: R15 Note 10 - Investments in Unconsolidated Land HTML 69K Development and Homebuilding Joint Ventures 36: R16 Note 11 - Warranty Costs HTML 27K 19: R17 Note 12 - Revolving Credit Facility and Letter of HTML 16K Credit Facilities 28: R18 Note 13 - Secured Project Debt and Other Notes HTML 17K Payable 22: R19 Note 14 - Senior and Senior Subordinated Notes HTML 44K Payable 37: R20 Note 15 - Preferred Stock HTML 16K 30: R21 Note 16 - Derivative Instruments and Hedging HTML 29K Activities 33: R22 Note 17 - Mortgage Credit Facilities HTML 15K 13: R23 Note 18 - Disclosures about Fair Value HTML 94K 34: R24 Note 19 - Commitments and Contingencies HTML 92K 18: R25 Note 20 - Income Taxes HTML 42K 15: R26 Note 21 - Supplemental Disclosures to Condensed HTML 25K Consolidated Statements of Cash Flows 17: R27 Note 22 - Supplemental Guarantor Information HTML 721K 39: XML IDEA XML File -- Filing Summary XML 54K 40: EXCEL IDEA Workbook of Financial Reports (.xls) XLS 1.93M 5: EX-101.INS XBRL Instance -- spf-20110930 XML 2.20M 7: EX-101.CAL XBRL Calculations -- spf-20110930_cal XML 73K 8: EX-101.DEF XBRL Definitions -- spf-20110930_def XML 269K 9: EX-101.LAB XBRL Labels -- spf-20110930_lab XML 364K 10: EX-101.PRE XBRL Presentations -- spf-20110930_pre XML 303K 6: EX-101.SCH XBRL Schema -- spf-20110930 XSD 84K 31: ZIP XBRL Zipped Folder -- 0000878560-11-000036-xbrl Zip 112K
Delaware
|
33-0475989
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
15360 Barranca Parkway, Irvine, CA
(Address of principal executive offices)
|
92618-2215
(Zip Code)
|
Large accelerated filer ¨
|
Accelerated filer x
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Page No.
|
|||||
|
|||||
PART 1. | Financial Information | ||||
Item 1.
|
|
||||
2 | |||||
3
|
|||||
4
|
|||||
5
|
|||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 | |||
Item 3. |
42
|
||||
Item 4. |
43
|
||||
PART 2. | Other Information |
|
|||
Item 1. |
45
|
||||
Item 1A.
|
45
|
||||
Item 2. |
45
|
||||
Item 3. |
45
|
||||
Item 4. |
45
|
||||
Item 5. | Other Information | 45 | |||
Item 6. | Exhibits | 45 | |||
SIGNATURES |
46
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||||||||
(Unaudited)
|
|||||||||||||||
Homebuilding:
|
|
||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
$
|
589,369
|
$
|
698,138
|
||||||
Land sale revenues
|
|
359
|
950
|
468
|
1,856
|
||||||||||
Total revenues
|
|
241,793
|
207,466
|
589,837
|
699,994
|
||||||||||
Cost of home sales
|
|
(203,188)
|
(157,677)
|
(486,933)
|
(543,400)
|
||||||||||
Cost of land sales
|
|
(359)
|
(954)
|
(473)
|
(1,628)
|
||||||||||
Total cost of sales
|
|
(203,547)
|
(158,631)
|
(487,406)
|
(545,028)
|
||||||||||
Gross margin
|
|
38,246
|
48,835
|
102,431
|
154,966
|
||||||||||
Selling, general and administrative expenses
|
(39,124)
|
(36,339)
|
(109,828)
|
(112,504)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
(455)
|
1,801
|
(1,091)
|
1,141
|
|||||||||||
Interest expense
|
(4,250)
|
(10,257)
|
(22,209)
|
(32,721)
|
|||||||||||
Loss on early extinguishment of debt
|
―
|
(999)
|
―
|
(6,189)
|
|||||||||||
Other income (expense)
|
(1,948)
|
1,035
|
(679)
|
4,277
|
|||||||||||
Homebuilding pretax income (loss)
|
(7,531)
|
4,076
|
(31,376)
|
8,970
|
|||||||||||
Financial Services:
|
|||||||||||||||
Revenues
|
3,529
|
3,430
|
7,124
|
9,711
|
|||||||||||
Expenses
|
(2,324)
|
(2,721)
|
(7,171)
|
(8,026)
|
|||||||||||
Other income
|
42
|
30
|
98
|
111
|
|||||||||||
Financial services pretax income
|
1,247
|
739
|
51
|
1,796
|
|||||||||||
Income (loss) before income taxes
|
(6,284)
|
4,815
|
(31,325)
|
10,766
|
|||||||||||
Provision for income taxes
|
(150)
|
(272)
|
(425)
|
(633)
|
|||||||||||
Net income (loss)
|
(6,434)
|
4,543
|
(31,750)
|
10,133
|
|||||||||||
Less: Net (income) loss allocated to preferred shareholder
|
2,780
|
(2,676)
|
13,743
|
(5,982)
|
|||||||||||
Net income (loss) available to common stockholders
|
$
|
(3,654)
|
$
|
1,867
|
$
|
(18,007)
|
$
|
4,151
|
|||||||
Income (Loss) Per Common Share:
|
|||||||||||||||
Basic
|
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Weighted Average Common Shares Outstanding:
|
|||||||||||||||
Basic
|
|
194,311,129
|
103,100,974
|
193,686,614
|
102,582,491
|
||||||||||
Diluted
|
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||
|
|||||||||||||||
Weighted average additional common shares outstanding
|
|
||||||||||||||
if preferred shares converted to common shares
|
|
147,812,786
|
147,812,786
|
147,812,786
|
147,812,786
|
(Dollars in thousands)
|
||||||||||
(Unaudited)
|
||||||||||
ASSETS
|
||||||||||
Homebuilding:
|
||||||||||
Cash and equivalents
|
|
$
|
420,010
|
$
|
720,516
|
|||||
Restricted cash
|
|
31,182
|
28,238
|
|||||||
Trade and other receivables
|
|
18,476
|
6,167
|
|||||||
Inventories:
|
|
|||||||||
Owned
|
|
1,450,827
|
1,181,697
|
|||||||
Not owned
|
|
61,603
|
18,999
|
|||||||
Investments in unconsolidated joint ventures
|
|
76,058
|
73,861
|
|||||||
Deferred income taxes, net of valuation allowance of $520,285 and $516,366 at
|
||||||||||
September 30, 2011 and December 31, 2010, respectively
|
|
6,320
|
9,269
|
|||||||
Other assets
|
|
38,650
|
38,175
|
|||||||
Total Homebuilding Assets
|
|
2,103,126
|
2,076,922
|
|||||||
Financial Services:
|
|
|||||||||
Cash and equivalents
|
|
11,339
|
10,855
|
|||||||
Restricted cash
|
|
1,745
|
2,870
|
|||||||
Mortgage loans held for sale, net
|
|
50,049
|
30,279
|
|||||||
Mortgage loans held for investment, net
|
|
10,329
|
9,904
|
|||||||
Other assets
|
|
5,210
|
2,293
|
|||||||
Total Financial Services Assets
|
|
78,672
|
56,201
|
|||||||
Total Assets
|
|
$
|
2,181,798
|
$
|
2,133,123
|
|||||
|
||||||||||
LIABILITIES AND EQUITY
|
|
|||||||||
Homebuilding:
|
|
|||||||||
Accounts payable
|
|
$
|
22,605
|
$
|
16,716
|
|||||
Accrued liabilities
|
|
176,698
|
143,127
|
|||||||
Secured project debt and other notes payable
|
|
3,899
|
4,738
|
|||||||
Senior notes payable
|
|
1,274,532
|
1,272,977
|
|||||||
Senior subordinated notes payable
|
|
45,293
|
42,539
|
|||||||
Total Homebuilding Liabilities
|
|
1,523,027
|
1,480,097
|
|||||||
Financial Services:
|
|
|||||||||
Accounts payable and other liabilities
|
|
1,312
|
820
|
|||||||
Mortgage credit facilities
|
|
52,528
|
30,344
|
|||||||
Total Financial Services Liabilities
|
|
53,840
|
31,164
|
|||||||
Total Liabilities
|
|
1,576,867
|
1,511,261
|
|||||||
|
||||||||||
Equity:
|
|
|||||||||
Stockholders' Equity:
|
||||||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 shares
|
|
|||||||||
issued and outstanding at September 30, 2011 and December 31, 2010
|
|
5
|
5
|
|||||||
Common stock, $0.01 par value; 600,000,000 shares authorized; 198,456,463
|
|
|||||||||
and 196,641,551 shares issued and outstanding at September 30, 2011 and
|
|
|||||||||
December 31, 2010, respectively
|
|
1,984
|
1,966
|
|||||||
Additional paid-in capital
|
|
1,237,304
|
1,227,292
|
|||||||
Accumulated deficit
|
|
(624,102)
|
(592,352)
|
|||||||
Accumulated other comprehensive loss, net of tax
|
|
(10,260)
|
(15,049)
|
|||||||
Total Equity
|
|
604,931
|
621,862
|
|||||||
Total Liabilities and Equity
|
|
$
|
2,181,798
|
$
|
2,133,123
|
Nine Months Ended
|
||||||||||
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||
(Unaudited)
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||
Net income (loss)
|
$
|
(31,750)
|
$
|
10,133
|
||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|||||||||
Loss (income) from unconsolidated joint ventures
|
|
1,091
|
(1,141)
|
|||||||
Cash distributions of income from unconsolidated joint ventures
|
20
|
―
|
||||||||
Depreciation and amortization
|
2,606
|
2,159
|
||||||||
(Gain) loss on disposal of property and equipment
|
|
184
|
(35)
|
|||||||
Loss on early extinguishment of debt
|
|
―
|
6,189
|
|||||||
Amortization of stock-based compensation
|
|
8,094
|
8,598
|
|||||||
Excess tax benefits from share-based payment arrangements
|
―
|
(27)
|
||||||||
Inventory impairment charges and deposit write-offs
|
14,918
|
―
|
||||||||
Changes in cash and equivalents due to:
|
||||||||||
Trade and other receivables
|
(12,309)
|
(983)
|
||||||||
Mortgage loans held for sale
|
|
(19,737)
|
5,846
|
|||||||
Inventories - owned
|
|
(261,777)
|
(120,420)
|
|||||||
Inventories - not owned
|
|
(17,659)
|
(24,070)
|
|||||||
Other assets
|
|
(313)
|
108,846
|
|||||||
Accounts payable
|
5,889
|
(6,576)
|
||||||||
Accrued liabilities
|
166
|
(17,014)
|
||||||||
Net cash provided by (used in) operating activities
|
|
(310,577)
|
(28,495)
|
|||||||
|
||||||||||
Cash Flows From Investing Activities:
|
|
|||||||||
Investments in unconsolidated homebuilding joint ventures
|
|
(11,304)
|
(37,434)
|
|||||||
Distributions from unconsolidated homebuilding joint ventures
|
|
7,786
|
113
|
|||||||
Other investing activities
|
|
(1,752)
|
(1,133)
|
|||||||
Net cash provided by (used in) investing activities
|
|
(5,270)
|
(38,454)
|
|||||||
Cash Flows From Financing Activities:
|
|
|||||||||
Change in restricted cash
|
|
(1,819)
|
(1,588)
|
|||||||
Net proceeds from (principal payments on) secured project debt and other notes payable
|
|
(839)
|
(83,407)
|
|||||||
Principal payments on senior notes payable
|
|
―
|
(195,869)
|
|||||||
Proceeds from the issuance of senior notes payable
|
|
―
|
300,000
|
|||||||
Payment of debt issuance costs
|
|
(4,575)
|
(5,506)
|
|||||||
Net proceeds from (payments on) mortgage credit facilities
|
|
22,184
|
(5,393)
|
|||||||
Excess tax benefits from share-based payment arrangements
|
|
―
|
27
|
|||||||
Payment of common stock issuance costs
|
|
(324)
|
―
|
|||||||
Proceeds from the exercise of stock options
|
|
1,198
|
2,454
|
|||||||
Net cash provided by (used in) financing activities
|
|
15,825
|
10,718
|
|||||||
Net increase (decrease) in cash and equivalents
|
|
(300,022)
|
(56,231)
|
|||||||
Cash and equivalents at beginning of period
|
|
731,371
|
595,559
|
|||||||
Cash and equivalents at end of period
|
|
$
|
431,349
|
$
|
539,328
|
|||||
Cash and equivalents at end of period
|
|
$
|
431,349
|
$
|
539,328
|
|||||
Homebuilding restricted cash at end of period
|
|
31,182
|
16,983
|
|||||||
Financial services restricted cash at end of period
|
|
1,745
|
2,870
|
|||||||
Cash and equivalents and restricted cash at end of period
|
|
$
|
464,276
|
$
|
559,181
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||
2010
|
2011
|
2010
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
Homebuilding revenues:
|
|
||||||||||||
California
|
|
$
|
146,441
|
$
|
118,989
|
$
|
339,088
|
$
|
414,613
|
||||
Southwest
|
|
47,342
|
47,956
|
130,274
|
147,491
|
||||||||
Southeast
|
|
48,010
|
40,521
|
120,475
|
137,890
|
||||||||
Total homebuilding revenues
|
|
$
|
241,793
|
$
|
207,466
|
$
|
589,837
|
$
|
699,994
|
||||
Homebuilding pretax income (loss):
|
|
||||||||||||
California
|
|
$
|
(364)
|
$
|
11,874
|
$
|
(2,898)
|
$
|
27,841
|
||||
Southwest
|
|
(2,592)
|
(1,484)
|
(10,126)
|
(2,153)
|
||||||||
Southeast
|
|
(3,396)
|
(2,214)
|
(9,500)
|
(5,042)
|
||||||||
Corporate
|
|
(1,179)
|
(4,100)
|
(8,852)
|
(11,676)
|
||||||||
Total homebuilding pretax income (loss)
|
|
$
|
(7,531)
|
$
|
4,076
|
$
|
(31,376)
|
$
|
8,970
|
||||
Homebuilding income (loss) from unconsolidated joint ventures:
|
|
||||||||||||
California
|
|
$
|
(389)
|
$
|
1,826
|
$
|
(994)
|
$
|
1,202
|
||||
Southwest
|
|
(7)
|
(15)
|
(23)
|
(38)
|
||||||||
Southeast
|
|
(59)
|
(10)
|
(74)
|
(23)
|
||||||||
Total homebuilding income (loss) from unconsolidated joint ventures
|
|
$
|
(455)
|
$
|
1,801
|
$
|
(1,091)
|
$
|
1,141
|
||||
Restructuring charges:
|
|
||||||||||||
California
|
|
$
|
174
|
$
|
―
|
$
|
598
|
$
|
―
|
||||
Southwest
|
|
118
|
―
|
165
|
―
|
||||||||
Southeast
|
|
279
|
―
|
279
|
―
|
||||||||
Corporate
|
|
60
|
―
|
150
|
―
|
||||||||
Total restructuring charges
|
|
$
|
631
|
$
|
―
|
$
|
1,192
|
$
|
―
|
Three Months Ended September 30, 2011
|
||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Deposit write-offs
|
|
$
|
876
|
$
|
495
|
$
|
358
|
$
|
1,729
|
|||
Inventory impairments
|
|
5,653
|
756
|
821
|
7,230
|
|||||||
Total impairments and deposit write-offs
|
|
$
|
6,529
|
$
|
1,251
|
$
|
1,179
|
$
|
8,959
|
|||
|
||||||||||||
|
Nine Months Ended September 30, 2011
|
|||||||||||
|
California
|
Southwest
|
Southeast
|
Total
|
||||||||
|
(Dollars in thousands)
|
|||||||||||
|
||||||||||||
Deposit write-offs
|
|
$
|
876
|
$
|
495
|
$
|
358
|
$
|
1,729
|
|||
Inventory impairments
|
|
9,490
|
2,878
|
821
|
13,189
|
|||||||
Total impairments and deposit write-offs
|
|
$
|
10,366
|
$
|
3,373
|
$
|
1,179
|
$
|
14,918
|
|
September 30,
|
||||||
|
2010
|
||||||
|
(Dollars in thousands)
|
||||||
Homebuilding assets:
|
|
||||||
California
|
|
$
|
988,054
|
$
|
819,376
|
||
Southwest
|
|
334,310
|
233,120
|
||||
Southeast
|
|
291,210
|
237,635
|
||||
Corporate
|
|
489,552
|
786,791
|
||||
Total homebuilding assets
|
|
$
|
2,103,126
|
$
|
2,076,922
|
||
|
|||||||
Homebuilding investments in unconsolidated joint ventures:
|
|
||||||
California
|
|
$
|
71,268
|
$
|
69,968
|
||
Southwest
|
|
2,755
|
2,743
|
||||
Southeast
|
|
2,035
|
1,150
|
||||
Total homebuilding investments in unconsolidated joint ventures
|
|
$
|
76,058
|
$
|
73,861
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||
|
2010
|
2011
|
|
2010
|
||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||
|
||||||||||||||
Numerator:
|
||||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
4,543
|
$
|
(31,750)
|
$
|
10,133
|
|||||
Less: Net (income) loss allocated to preferred shareholder
|
|
2,780
|
(2,676)
|
13,743
|
(5,982)
|
|||||||||
Net income (loss) available to common shareholders
|
|
$
|
(3,654)
|
$
|
1,867
|
$
|
(18,007)
|
$
|
4,151
|
|||||
Denominator:
|
||||||||||||||
Weighted average basic common shares outstanding
|
194,311,129
|
103,100,974
|
193,686,614
|
102,582,491
|
||||||||||
Effect of dilutive securities:
|
||||||||||||||
Warrant
|
―
|
―
|
―
|
4,587,239
|
||||||||||
Stock options
|
―
|
3,036,397
|
―
|
3,835,867
|
||||||||||
Weighted average diluted common shares outstanding
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||
Income (loss) per common share:
|
||||||||||||||
Basic
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
$
|
(0.02)
|
$
|
0.02
|
$
|
(0.09)
|
$
|
0.04
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2010
|
2011
|
2010
|
||||||||||||||
|
||||||||||||||||
Weighted average diluted common shares outstanding
|
194,311,129
|
106,137,371
|
193,686,614
|
111,005,597
|
||||||||||||
Additional weighted average common shares outstanding if the Series B
|
||||||||||||||||
Preferred Stock converted to common shares
|
147,812,786
|
147,812,786
|
147,812,786
|
147,812,786
|
||||||||||||
Total potential weighted average diluted common shares outstanding
|
||||||||||||||||
if the Series B Preferred Stock converted to common shares
|
342,123,915
|
253,950,157
|
341,499,400
|
258,818,383
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||
2010
|
2011
|
2010
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|
||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
4,543
|
|
$
|
(31,750)
|
$
|
10,133
|
|||
Unrealized gain (loss) on interest rate swaps,
|
|
||||||||||||
net of related income tax effects
|
|
1,614
|
(558)
|
4,789
|
(2,080)
|
||||||||
Comprehensive income (loss)
|
|
$
|
(4,820)
|
$
|
3,985
|
|
$
|
(26,961)
|
$
|
8,053
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||
2010
|
2011
|
2010
|
|||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Stock options
|
|
$
|
1,570
|
$
|
1,819
|
$
|
5,588
|
$
|
4,602
|
||||
Common stock grants
|
|
1,065
|
1,296
|
2,506
|
3,996
|
||||||||
Total
|
|
$
|
2,635
|
$
|
3,115
|
$
|
8,094
|
$
|
8,598
|
California
|
Southwest
|
Southeast
|
Total
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Land and land under development
|
$ | 585,886 | $ | 195,978 | $ | 189,798 | $ | 971,662 | |||||||
Homes completed and under construction
|
224,715 | 72,632 | 73,169 | 370,516 | |||||||||||
Model homes
|
78,761 | 12,991 | 16,897 | 108,649 | |||||||||||
Total inventories owned
|
$ | 889,362 | $ | 281,601 | $ | 279,864 | $ | 1,450,827 | |||||||
California
|
Southwest
|
Southeast
|
Total
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Land and land under development
|
$ | 492,501 | $ | 158,324 | $ | 150,856 | $ | 801,681 | |||||||
Homes completed and under construction
|
164,237 | 51,382 | 66,161 | 281,780 | |||||||||||
Model homes
|
70,579 | 13,085 | 14,572 | 98,236 | |||||||||||
Total inventories owned
|
$ | 727,317 | $ | 222,791 | $ | 231,589 | $ | 1,181,697 |
September 30,
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
Land purchase and lot option deposits
|
$ | 26,142 | $ | 18,499 | |||
Other lot option contracts, net of deposits
|
35,461 | 500 | |||||
Total inventories not owned
|
$ | 61,603 | $ | 18,999 |
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||
2010
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
|
||||||||||||
Total interest incurred (1)
|
$
|
35,273
|
$
|
28,070
|
$
|
105,480
|
$
|
82,030
|
||||
Less: Interest capitalized to inventories owned
|
|
(29,329)
|
(17,126)
|
(78,225)
|
(47,240)
|
|||||||
Less: Interest capitalized to investments in unconsolidated joint ventures
|
|
(1,694)
|
(687)
|
(5,046)
|
(2,069)
|
|||||||
Interest expense
|
$
|
4,250
|
$
|
10,257
|
$
|
22,209
|
$
|
32,721
|
||||
|
||||||||||||
Interest previously capitalized to inventories owned, included in cost of home sales
|
$
|
18,776
|
$
|
12,546
|
$
|
45,864
|
$
|
44,852
|
||||
Interest previously capitalized to inventories owned, included in cost of land sales
|
$
|
77
|
$
|
―
|
$
|
115
|
$
|
815
|
||||
Interest previously capitalized to investments in unconsolidated joint ventures,
|
|
|||||||||||
included in income (loss) from unconsolidated joint ventures
|
$
|
300
|
$
|
342
|
$
|
558
|
$
|
441
|
||||
Interest capitalized in ending inventories owned (2)
|
$
|
181,310
|
$
|
143,111
|
$
|
181,310
|
$
|
143,111
|
||||
Interest capitalized as a percentage of inventories owned
|
|
12.5%
|
12.4%
|
12.5%
|
12.4%
|
|||||||
Interest capitalized in ending investments in unconsolidated joint ventures (2)
|
$
|
7,836
|
$
|
3,492
|
$
|
7,836
|
$
|
3,492
|
||||
Interest capitalized as a percentage of investments in unconsolidated joint ventures
|
|
10.3%
|
4.4%
|
10.3%
|
4.4%
|
(1)
|
For the three and nine months ended September 30, 2011, interest incurred included the noncash amortization of $2.6 million and $7.7 million, respectively, of interest related to the Term Loan B swap that was unwound in the 2010 fourth quarter (please see Note 16 “Derivative Instruments and Hedging Activities”).
|
(2)
|
During the three and nine months ended September 30, 2011, in connection with lot purchases from our unconsolidated joint ventures, $1.1 million of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned. During the three and nine months ended September 30, 2010, $10 thousand and $75 thousand, respectively, of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned.
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||
2010
|
2011
|
2010
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
|
||||||||||||
Revenues
|
|
$
|
26,709
|
$
|
33,043
|
$
|
45,082
|
$
|
52,379
|
|||
Cost of sales and expenses
|
|
(23,944)
|
(23,505)
|
(39,710)
|
(43,787)
|
|||||||
Income of unconsolidated joint ventures
|
|
$
|
2,765
|
$
|
9,538
|
$
|
5,372
|
$
|
8,592
|
|||
Income (loss) from unconsolidated joint ventures reflected in the
|
|
|||||||||||
accompanying condensed consolidated statements of operations
|
|
$
|
(455)
|
$
|
1,801
|
$
|
(1,091)
|
$
|
1,141
|
September 30,
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
Assets:
|
|
||||||
Cash
|
|
$
|
14,722
|
$
|
19,202
|
||
Inventories
|
|
236,279
|
240,492
|
||||
Other assets
|
|
12,136
|
7,964
|
||||
Total assets
|
|
$
|
263,137
|
$
|
267,658
|
||
|
|||||||
Liabilities and Equity:
|
|
||||||
Accounts payable and accrued liabilities
|
|
$
|
31,454
|
$
|
37,124
|
||
Recourse debt
|
|
―
|
3,865
|
||||
Standard Pacific equity
|
|
72,737
|
74,793
|
||||
Other members' equity
|
|
158,946
|
151,876
|
||||
Total liabilities and equity
|
|
$
|
263,137
|
$
|
267,658
|
||
|
|||||||
Investments in unconsolidated joint ventures reflected in
|
|
||||||
the accompanying condensed consolidated balance sheets
|
|
$
|
76,058
|
$
|
73,861
|
Nine Months Ended
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
|
|||||||
Warranty accrual, beginning of the period
|
|
$
|
20,866
|
$
|
22,606
|
||
Warranty costs accrued during the period
|
|
2,327
|
3,263
|
||||
Warranty costs paid during the period
|
|
(2,505)
|
(3,112)
|
||||
Warranty accrual, end of the period
|
|
$
|
20,688
|
$
|
22,757
|
September 30,
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
|
|||||||
6¼% Senior Notes due April 2014
|
|
$
|
4,971
|
$
|
4,971
|
||
7% Senior Notes due August 2015
|
|
29,789
|
29,789
|
||||
10¾% Senior Notes due September 2016, net of discount
|
|
262,301
|
260,439
|
||||
8⅜% Senior Notes due May 2018, net of premium
|
|
580,687
|
581,162
|
||||
8⅜% Senior Notes due January 2021, net of discount
|
|
396,784
|
396,616
|
||||
|
$
|
1,274,532
|
$
|
1,272,977
|
September 30,
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
|
|||||||
6% Convertible Senior Subordinated Notes due October 2012, net of discount
|
|
$
|
35,311
|
$
|
32,564
|
||
9¼% Senior Subordinated Notes due April 2012, net of discount
|
|
9,982
|
9,975
|
||||
|
$
|
45,293
|
$
|
42,539
|
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
|||||||||||
(Dollars in thousands)
|
||||||||||||||
Financial assets:
|
|
|
||||||||||||
Homebuilding:
|
|
|
||||||||||||
Cash and equivalents
|
|
$
|
451,192
|
$
|
451,192
|
$
|
748,754
|
$
|
748,754
|
|||||
Financial services:
|
|
|
|
|
|
|||||||||
Cash and equivalents
|
|
$
|
13,084
|
$
|
13,084
|
$
|
13,725
|
$
|
13,725
|
|||||
Mortgage loans held for investment, net
|
|
$
|
10,329
|
$
|
10,329
|
$
|
9,904
|
$
|
9,904
|
|||||
Financial liabilities:
|
|
|
|
|
|
|||||||||
Homebuilding:
|
|
|
|
|
|
|||||||||
Secured project debt and other notes payable
|
|
$
|
3,899
|
$
|
3,899
|
$
|
4,738
|
$
|
4,738
|
|||||
Senior notes payable, net
|
|
$
|
1,274,532
|
$
|
1,137,334
|
$
|
1,272,977
|
$
|
1,283,611
|
|||||
Senior subordinated notes payable, net
|
|
$
|
45,293
|
$
|
50,334
|
$
|
42,539
|
$
|
51,369
|
|||||
Financial services:
|
|
|
|
|
|
|||||||||
Mortgage credit facilities
|
|
$
|
52,528
|
$
|
52,528
|
$
|
30,344
|
$
|
30,344
|
|||||
Off-balance sheet financial instruments:
|
|
|
|
|
|
|||||||||
Mortgage loan commitments
|
|
$
|
49,405
|
$
|
50,667
|
$
|
25,126
|
$
|
25,543
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Quoted Prices in
|
Significant Other
|
Significant
|
||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||
As of
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Assets:
|
||||||||||||
Inventories owned
|
|
$
|
17,226
|
$
|
―
|
$
|
―
|
$
|
17,226
|
|||
Mortgage loans held for sale
|
|
$
|
53,007
|
$
|
―
|
$
|
53,007
|
$
|
―
|
Three Months Ended
|
Nine Months Ended
|
Incurred
|
|||||||||
to Date
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
Employee severance costs
|
$ | 400 | $ | 961 | $ | 29,871 | |||||
Lease termination and other exit costs
|
231 | 231 | 13,648 | ||||||||
Property and equipment disposals
|
― | ― | 4,338 | ||||||||
$ | 631 | $ | 1,192 | $ | 47,857 |
Nine Months Ended September 30, 2011
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination and
Other Costs
|
Property and
Equipment
Disposals
|
Total | ||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Restructuring accrual, beginning of the period
|
|
$
|
22
|
$
|
2,251
|
$
|
―
|
$
|
2,273
|
||||
Restructuring costs accrued and other adjustments during the period
|
|
961
|
231
|
―
|
1,192
|
||||||||
Restructuring costs paid during the period
|
|
(635)
|
(982)
|
―
|
(1,617)
|
||||||||
Non-cash settlements
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring accrual, end of the period
|
|
$
|
348
|
$
|
1,500
|
$
|
―
|
$
|
1,848
|
||||
Nine Months Ended September 30, 2010
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination and
Other Costs
|
Property and
Equipment
Disposals
|
Total
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
|
|||||||||||||
Restructuring accrual, beginning of the period
|
|
$
|
1,417
|
$
|
5,810
|
$
|
―
|
$
|
7,227
|
||||
Restructuring costs accrued and other adjustments during the period
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring costs paid during the period
|
|
(1,331)
|
(2,561)
|
―
|
(3,892)
|
||||||||
Non-cash settlements
|
|
―
|
―
|
―
|
―
|
||||||||
Restructuring accrual, end of the period
|
|
$
|
86
|
$
|
3,249
|
$
|
―
|
$
|
3,335
|
September 30,
|
|||||||
2010
|
|||||||
(Dollars in thousands)
|
|||||||
Inventory
|
$ | 189,562 | $ | 216,028 | |||
Financial accruals
|
50,726 | 49,605 | |||||
Net operating loss carryforwards
|
263,670 | 237,496 | |||||
Goodwill impairment charges
|
22,327 | 22,327 | |||||
Other, net
|
320 | 179 | |||||
Subtotal
|
526,605 | 525,635 | |||||
Less: Valuation allowance
|
(520,285 | ) | (516,366) | ||||
Deferred income taxes
|
$ | 6,320 | $ | 9,269 |
Nine Months Ended September 30,
|
||||||||
2010
|
||||||||
(Dollars in thousands)
|
||||||||
Supplemental Disclosures of Cash Flow Information:
|
|
|||||||
Cash paid during the period for:
|
|
|||||||
Interest
|
$
|
77,772
|
$
|
73,968
|
||||
Income taxes
|
$
|
39
|
$
|
70
|
Three Months Ended September 30, 2011
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-
Guarantor
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
97,409
|
$
|
128,523
|
$
|
15,861
|
$
|
―
|
$
|
241,793
|
|||||||
Cost of sales
|
|
(82,666)
|
(107,523)
|
(13,358)
|
―
|
(203,547)
|
||||||||||||
Gross margin
|
|
14,743
|
21,000
|
2,503
|
―
|
38,246
|
||||||||||||
Selling, general and administrative expenses
|
|
(19,708)
|
(17,760)
|
(1,656)
|
―
|
(39,124)
|
||||||||||||
Loss from unconsolidated joint ventures
|
|
(94)
|
(106)
|
(255)
|
―
|
(455)
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
217
|
―
|
―
|
(217)
|
―
|
||||||||||||
Interest expense
|
|
1,203
|
(4,946)
|
(507)
|
―
|
(4,250)
|
||||||||||||
Other income (expense)
|
|
(1,184)
|
(949)
|
185
|
―
|
(1,948)
|
||||||||||||
Homebuilding pretax income (loss)
|
|
(4,823)
|
(2,761)
|
270
|
(217)
|
(7,531)
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(42)
|
42
|
1,247
|
―
|
1,247
|
||||||||||||
Income (loss) before income taxes
|
|
(4,865)
|
(2,719)
|
1,517
|
(217)
|
(6,284)
|
||||||||||||
(Provision) benefit for income taxes
|
|
(1,569)
|
2,041
|
(622)
|
―
|
(150)
|
||||||||||||
Net income (loss)
|
|
$
|
(6,434)
|
$
|
(678)
|
$
|
895
|
$
|
(217)
|
$
|
(6,434)
|
Three Months Ended September 30, 2010
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-
Guarantor
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
84,506
|
$
|
110,176
|
$
|
12,784
|
$
|
―
|
$
|
207,466
|
|||||||
Cost of sales
|
|
(59,782)
|
(89,785)
|
(9,064)
|
―
|
(158,631)
|
||||||||||||
Gross margin
|
|
24,724
|
20,391
|
3,720
|
―
|
48,835
|
||||||||||||
Selling, general and administrative expenses
|
|
(19,847)
|
(15,452)
|
(1,040)
|
―
|
(36,339)
|
||||||||||||
Income (loss) from unconsolidated joint ventures
|
|
1,078
|
(27)
|
750
|
―
|
1,801
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
2,681
|
―
|
―
|
(2,681)
|
―
|
||||||||||||
Interest expense
|
|
(4,619)
|
(5,225)
|
(413)
|
―
|
(10,257)
|
||||||||||||
Loss on early extinguishment of debt
|
|
(999)
|
―
|
―
|
―
|
(999)
|
||||||||||||
Other income (expense)
|
|
(311)
|
360
|
986
|
―
|
1,035
|
||||||||||||
Homebuilding pretax income (loss)
|
|
2,707
|
47
|
4,003
|
(2,681)
|
4,076
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(30)
|
30
|
739
|
―
|
739
|
||||||||||||
Income (loss) before income taxes
|
|
2,677
|
77
|
4,742
|
(2,681)
|
4,815
|
||||||||||||
(Provision) benefit for income taxes
|
|
1,866
|
(1,053)
|
(1,085)
|
―
|
(272)
|
||||||||||||
Net income (loss)
|
|
$
|
4,543
|
$
|
(976)
|
$
|
3,657
|
$
|
(2,681)
|
$
|
4,543
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-
Guarantor
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
242,109
|
$
|
314,418
|
$
|
33,310
|
$
|
―
|
$
|
589,837
|
|||||||
Cost of sales
|
|
(196,074)
|
(264,303)
|
(27,029)
|
―
|
(487,406)
|
||||||||||||
Gross margin
|
|
46,035
|
50,115
|
6,281
|
―
|
102,431
|
||||||||||||
Selling, general and administrative expenses
|
|
(57,463)
|
(49,099)
|
(3,266)
|
―
|
(109,828)
|
||||||||||||
Loss from unconsolidated joint ventures
|
|
(24)
|
(142)
|
(925)
|
―
|
(1,091)
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
(8,065)
|
―
|
―
|
8,065
|
―
|
||||||||||||
Interest expense
|
|
(5,704)
|
(14,978)
|
(1,527)
|
―
|
(22,209)
|
||||||||||||
Other income (expense)
|
|
(790)
|
(927)
|
1,038
|
―
|
(679)
|
||||||||||||
Homebuilding pretax income (loss)
|
|
(26,011)
|
(15,031)
|
1,601
|
8,065
|
(31,376)
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(98)
|
98
|
51
|
―
|
51
|
||||||||||||
Income (loss) before income taxes
|
|
(26,109)
|
(14,933)
|
1,652
|
8,065
|
(31,325)
|
||||||||||||
(Provision) benefit for income taxes
|
|
(5,641)
|
5,293
|
(77)
|
―
|
(425)
|
||||||||||||
Net income (loss)
|
|
$
|
(31,750)
|
$
|
(9,640)
|
$
|
1,575
|
$
|
8,065
|
$
|
(31,750)
|
Nine Months Ended September 30, 2010
|
||||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-
Guarantor
|
Consolidating Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Homebuilding:
|
|
|||||||||||||||||
Revenues
|
|
$
|
307,651
|
$
|
337,276
|
$
|
55,067
|
$
|
―
|
$
|
699,994
|
|||||||
Cost of sales
|
|
(227,312)
|
(273,484)
|
(44,232)
|
―
|
(545,028)
|
||||||||||||
Gross margin
|
|
80,339
|
63,792
|
10,835
|
―
|
154,966
|
||||||||||||
Selling, general and administrative expenses
|
|
(59,373)
|
(49,469)
|
(3,662)
|
―
|
(112,504)
|
||||||||||||
Income (loss) from unconsolidated joint ventures
|
|
560
|
(63)
|
644
|
―
|
1,141
|
||||||||||||
Equity income (loss) of subsidiaries
|
|
1,254
|
―
|
―
|
(1,254)
|
―
|
||||||||||||
Interest expense
|
|
(14,550)
|
(16,885)
|
(1,286)
|
―
|
(32,721)
|
||||||||||||
Loss on early extinguishment of debt
|
|
(6,189)
|
―
|
―
|
―
|
(6,189)
|
||||||||||||
Other income (expense)
|
|
(172)
|
392
|
4,057
|
―
|
4,277
|
||||||||||||
Homebuilding pretax income (loss)
|
|
1,869
|
(2,233)
|
10,588
|
(1,254)
|
8,970
|
||||||||||||
Financial Services:
|
|
|||||||||||||||||
Financial services pretax income (loss)
|
|
(111)
|
111
|
1,796
|
―
|
1,796
|
||||||||||||
Income (loss) before income taxes
|
|
1,758
|
(2,122)
|
12,384
|
(1,254)
|
10,766
|
||||||||||||
(Provision) benefit for income taxes
|
|
8,375
|
(1,924)
|
(7,084)
|
―
|
(633)
|
||||||||||||
Net income (loss)
|
|
$
|
10,133
|
$
|
(4,046)
|
$
|
5,300
|
$
|
(1,254)
|
$
|
10,133
|
Standard
Pacific Corp.
|
Guarantor
|
Non-Guarantor
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash and equivalents
|
$
|
51,240
|
$
|
210
|
$
|
368,560
|
$
|
―
|
$
|
420,010
|
||||||||
Restricted cash
|
―
|
―
|
31,182
|
―
|
31,182
|
|||||||||||||
Trade and other receivables
|
490,014
|
5,575
|
7,695
|
(484,808)
|
18,476
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
626,553
|
627,168
|
197,106
|
―
|
1,450,827
|
|||||||||||||
Not owned
|
8,100
|
51,485
|
2,018
|
―
|
61,603
|
|||||||||||||
Investments in unconsolidated joint ventures
|
21,708
|
2,335
|
52,015
|
―
|
76,058
|
|||||||||||||
Investments in subsidiaries
|
767,675
|
―
|
―
|
(767,675)
|
―
|
|||||||||||||
Deferred income taxes, net
|
6,172
|
―
|
―
|
148
|
6,320
|
|||||||||||||
Other assets
|
35,255
|
3,264
|
296
|
(165)
|
38,650
|
|||||||||||||
Total Homebuilding Assets
|
2,006,717
|
690,037
|
658,872
|
(1,252,500)
|
2,103,126
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Cash and equivalents
|
―
|
―
|
11,339
|
―
|
11,339
|
|||||||||||||
Restricted cash
|
―
|
―
|
1,745
|
―
|
1,745
|
|||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
50,049
|
―
|
50,049
|
|||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
10,329
|
―
|
10,329
|
|||||||||||||
Other assets
|
―
|
―
|
8,365
|
(3,155)
|
5,210
|
|||||||||||||
Total Financial Services Assets
|
―
|
―
|
|
81,827
|
|
(3,155)
|
|
78,672
|
||||||||||
Total Assets
|
$
|
2,006,717
|
$
|
690,037
|
$
|
740,699
|
$
|
(1,255,655)
|
$
|
2,181,798
|
||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts payable
|
$
|
10,299
|
$
|
10,575
|
$
|
1,731
|
$
|
―
|
$
|
22,605
|
||||||||
Accrued liabilities
|
71,662
|
416,405
|
170,756
|
(482,125)
|
176,698
|
|||||||||||||
Secured project debt and other notes payable
|
―
|
―
|
3,899
|
―
|
3,899
|
|||||||||||||
Senior notes payable
|
1,274,532
|
―
|
―
|
―
|
1,274,532
|
|||||||||||||
Senior subordinated notes payable
|
45,293
|
―
|
―
|
―
|
45,293
|
|||||||||||||
Total Homebuilding Liabilities
|
1,401,786
|
426,980
|
176,386
|
(482,125)
|
1,523,027
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
5,667
|
(4,355)
|
1,312
|
|||||||||||||
Mortgage credit facilities
|
―
|
―
|
54,028
|
(1,500)
|
52,528
|
|||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
59,695
|
(5,855)
|
53,840
|
|||||||||||||
Total Liabilities
|
1,401,786
|
426,980
|
236,081
|
(487,980)
|
1,576,867
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total Stockholders' Equity
|
604,931
|
263,057
|
504,618
|
(767,675)
|
604,931
|
|||||||||||||
Total Liabilities and Equity
|
$
|
2,006,717
|
$
|
690,037
|
$
|
740,699
|
$
|
(1,255,655)
|
$
|
2,181,798
|
Standard
Pacific Corp.
|
Guarantor
|
Non-Guarantor
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash and equivalents
|
$
|
260,869
|
$
|
217
|
$
|
459,430
|
$
|
―
|
$
|
720,516
|
||||||||
Restricted cash
|
―
|
―
|
28,238
|
―
|
28,238
|
|||||||||||||
Trade and other receivables
|
411,804
|
2,225
|
7,555
|
(415,417)
|
6,167
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
429,951
|
617,641
|
134,105
|
―
|
1,181,697
|
|||||||||||||
Not owned
|
10,405
|
5,239
|
3,355
|
―
|
18,999
|
|||||||||||||
Investments in unconsolidated joint ventures
|
17,203
|
2,316
|
54,342
|
―
|
73,861
|
|||||||||||||
Investments in subsidiaries
|
867,740
|
―
|
―
|
(867,740)
|
―
|
|||||||||||||
Deferred income taxes, net
|
9,121
|
―
|
―
|
148
|
9,269
|
|||||||||||||
Other assets
|
33,994
|
4,024
|
168
|
(11)
|
38,175
|
|||||||||||||
Total Homebuilding Assets
|
2,041,087
|
631,662
|
687,193
|
(1,283,020)
|
2,076,922
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Cash and equivalents
|
―
|
―
|
10,855
|
―
|
10,855
|
|||||||||||||
Restricted cash
|
―
|
―
|
2,870
|
―
|
2,870
|
|||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
30,279
|
―
|
30,279
|
|||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
9,904
|
―
|
9,904
|
|||||||||||||
Other assets
|
―
|
―
|
5,003
|
(2,710)
|
2,293
|
|||||||||||||
Total Financial Services Assets
|
―
|
―
|
|
58,911
|
|
(2,710)
|
|
56,201
|
||||||||||
Total Assets
|
$
|
2,041,087
|
$
|
631,662
|
$
|
746,104
|
$
|
(1,285,730)
|
$
|
2,133,123
|
||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts payable
|
$
|
5,971
|
$
|
8,371
|
$
|
2,594
|
$
|
(220)
|
$
|
16,716
|
||||||||
Accrued liabilities
|
97,738
|
350,321
|
107,347
|
(412,279)
|
143,127
|
|||||||||||||
Secured project debt and other notes payable
|
―
|
273
|
4,465
|
―
|
4,738
|
|||||||||||||
Senior notes payable
|
1,272,977
|
―
|
―
|
―
|
1,272,977
|
|||||||||||||
Senior subordinated notes payable
|
42,539
|
―
|
―
|
―
|
42,539
|
|||||||||||||
Total Homebuilding Liabilities
|
1,419,225
|
358,965
|
114,406
|
(412,499)
|
1,480,097
|
|||||||||||||
Financial Services:
|
||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
4,811
|
(3,991)
|
820
|
|||||||||||||
Mortgage credit facilities
|
―
|
―
|
31,844
|
(1,500)
|
30,344
|
|||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
36,655
|
(5,491)
|
31,164
|
|||||||||||||
Total Liabilities
|
1,419,225
|
358,965
|
151,061
|
(417,990)
|
1,511,261
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total Stockholders' Equity
|
621,862
|
272,697
|
595,043
|
(867,740)
|
621,862
|
|||||||||||||
Total Liabilities and Equity
|
$
|
2,041,087
|
$
|
631,662
|
$
|
746,104
|
$
|
(1,285,730)
|
$
|
2,133,123
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-Guarantor
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Cash Flows From Operating Activities:
|
|||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(293,052)
|
$
|
530
|
$
|
(18,055)
|
$
|
―
|
$
|
(310,577)
|
|||||||
Cash Flows From Investing Activities:
|
|||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(3,691)
|
(161)
|
(7,452)
|
―
|
(11,304)
|
||||||||||||
Distributions from unconsolidated homebuilding joint ventures
|
―
|
―
|
7,786
|
―
|
7,786
|
||||||||||||
Other investing activities
|
(1,185)
|
(103)
|
(464)
|
―
|
(1,752)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(4,876)
|
(264)
|
(130)
|
―
|
(5,270)
|
||||||||||||
Cash Flows From Financing Activities:
|
|||||||||||||||||
Change in restricted cash
|
―
|
―
|
(1,819)
|
―
|
(1,819)
|
||||||||||||
Net proceeds from (principal payments on) secured project debt
|
|||||||||||||||||
and other notes payable
|
―
|
(273)
|
(566)
|
―
|
(839)
|
||||||||||||
Payment of debt issuance costs
|
(4,575)
|
―
|
―
|
―
|
(4,575)
|
||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
22,184
|
―
|
22,184
|
||||||||||||
Distributions from (contributions to) Corporate and subsidiaries
|
92,000
|
(92,000)
|
―
|
―
|
|||||||||||||
Payment of issuance costs in connection with exercise
|
|||||||||||||||||
of Warrant for common stock
|
(324)
|
―
|
―
|
―
|
(324)
|
||||||||||||
Proceeds from the exercise of stock options
|
1,198
|
―
|
―
|
―
|
1,198
|
||||||||||||
Net cash provided by (used in) financing activities
|
88,299
|
(273)
|
(72,201)
|
―
|
15,825
|
||||||||||||
Net increase (decrease) in cash and equivalents
|
(209,629)
|
(7)
|
(90,386)
|
―
|
(300,022)
|
||||||||||||
Cash and equivalents at beginning of period
|
260,869
|
217
|
470,285
|
―
|
731,371
|
||||||||||||
Cash and equivalents at end of period
|
$
|
51,240
|
$
|
210
|
$
|
379,899
|
$
|
―
|
$
|
431,349
|
Nine Months Ended September 30, 2010
|
|||||||||||||||||
Standard
Pacific Corp.
|
Guarantor
|
Non-Guarantor
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific Corp.
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Cash Flows From Operating Activities:
|
|||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(141,083)
|
$
|
18,056
|
$
|
94,532
|
$
|
―
|
$
|
(28,495)
|
|||||||
Cash Flows From Investing Activities:
|
|||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(1,853)
|
(91)
|
(35,490)
|
―
|
(37,434)
|
||||||||||||
Distributions from unconsolidated homebuilding joint ventures
|
3
|
―
|
110
|
―
|
113
|
||||||||||||
Other investing activities
|
(520)
|
(106)
|
(507)
|
―
|
(1,133)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(2,370)
|
(197)
|
(35,887)
|
―
|
(38,454)
|
||||||||||||
Cash Flows From Financing Activities:
|
|||||||||||||||||
Change in restricted cash
|
―
|
―
|
(1,588)
|
―
|
(1,588)
|
||||||||||||
Net proceeds from (principal payments on) secured project debt
|
|||||||||||||||||
and other notes payable
|
(62,467)
|
(17,969)
|
(2,971)
|
―
|
(83,407)
|
||||||||||||
Principal payments on senior notes payable
|
(195,869)
|
―
|
―
|
―
|
(195,869)
|
||||||||||||
Proceeds from the issuance of senior notes payable
|
300,000
|
―
|
―
|
―
|
300,000
|
||||||||||||
Payment of debt issuance costs
|
(5,506)
|
―
|
―
|
―
|
(5,506)
|
||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
|
|
(5,393)
|
―
|
(5,393)
|
||||||||||
Proceeds from the exercise of stock options
|
2,454
|
―
|
|
|
―
|
―
|
2,454
|
||||||||||
Excess tax benefits from share-based payment arrangements
|
27
|
―
|
―
|
―
|
27
|
||||||||||||
Distributions from (contributions to) Corporate and subsidiaries
|
17,291
|
―
|
(17,291)
|
―
|
―
|
||||||||||||
Net cash provided by (used in) financing activities
|
55,930
|
(17,969)
|
(27,243)
|
―
|
10,718
|
||||||||||||
Net increase (decrease) in cash and equivalents
|
(87,523)
|
(110)
|
31,402
|
―
|
(56,231)
|
||||||||||||
Cash and equivalents at beginning of period
|
183,135
|
402
|
412,022
|
―
|
595,559
|
||||||||||||
Cash and equivalents at end of period
|
$
|
95,612
|
$
|
292
|
$
|
443,424
|
$
|
―
|
$
|
539,328
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2010
|
2011
|
2010
|
||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Homebuilding:
|
|
|
||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
|
$
|
589,369
|
$
|
698,138
|
||||||
Land sale revenues
|
|
359
|
950
|
|
468
|
1,856
|
||||||||||
Total revenues
|
|
241,793
|
207,466
|
|
589,837
|
699,994
|
||||||||||
Cost of home sales
|
|
(203,188)
|
(157,677)
|
|
(486,933)
|
(543,400)
|
||||||||||
Cost of land sales
|
|
(359)
|
(954)
|
|
(473)
|
(1,628)
|
||||||||||
Total cost of sales
|
|
(203,547)
|
(158,631)
|
|
(487,406)
|
(545,028)
|
||||||||||
Gross margin
|
|
38,246
|
48,835
|
|
102,431
|
154,966
|
||||||||||
Gross margin percentage
|
|
15.8%
|
23.5%
|
|
17.4%
|
22.1%
|
||||||||||
Selling, general and administrative expenses
|
|
(39,124)
|
(36,339)
|
|
(109,828)
|
(112,504)
|
||||||||||
Income (loss) from unconsolidated joint ventures
|
|
(455)
|
1,801
|
|
(1,091)
|
1,141
|
||||||||||
Interest expense
|
|
(4,250)
|
(10,257)
|
|
(22,209)
|
(32,721)
|
||||||||||
Loss on early extinguishment of debt
|
|
―
|
(999)
|
―
|
(6,189)
|
|||||||||||
Other income (expense)
|
|
(1,948)
|
1,035
|
|
(679)
|
4,277
|
||||||||||
Homebuilding pretax income (loss)
|
|
(7,531)
|
4,076
|
|
(31,376)
|
8,970
|
||||||||||
Financial Services:
|
|
|
||||||||||||||
Revenues
|
|
3,529
|
3,430
|
|
7,124
|
9,711
|
||||||||||
Expenses
|
|
(2,324)
|
(2,721)
|
|
(7,171)
|
(8,026)
|
||||||||||
Other income
|
|
42
|
30
|
|
98
|
111
|
||||||||||
Financial services pretax income
|
|
1,247
|
739
|
|
51
|
1,796
|
||||||||||
Income (loss) before income taxes
|
|
(6,284)
|
4,815
|
|
(31,325)
|
10,766
|
||||||||||
Provision for income taxes
|
|
(150)
|
(272)
|
|
(425)
|
(633)
|
||||||||||
Net income (loss)
|
|
(6,434)
|
4,543
|
|
(31,750)
|
10,133
|
||||||||||
Less: Net (income) loss allocated to preferred shareholder
|
|
2,780
|
(2,676)
|
|
13,743
|
(5,982)
|
||||||||||
Net income (loss) available to common stockholders
|
|
$
|
(3,654)
|
$
|
1,867
|
|
$
|
(18,007)
|
$
|
4,151
|
||||||
|
|
|||||||||||||||
Income (Loss) Per Common Share:
|
|
|
||||||||||||||
Basic
|
|
$
|
(0.02)
|
$
|
0.02
|
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Diluted
|
|
$
|
(0.02)
|
$
|
0.02
|
|
$
|
(0.09)
|
$
|
0.04
|
||||||
Weighted Average Common Shares Outstanding:
|
|
|
||||||||||||||
Basic
|
|
194,311,129
|
103,100,974
|
|
193,686,614
|
102,582,491
|
||||||||||
Diluted
|
|
194,311,129
|
106,137,731
|
|
193,686,614
|
111,005,597
|
||||||||||
|
|
|||||||||||||||
Weighted average additional common shares outstanding
|
|
|
||||||||||||||
if preferred shares converted to common shares (1)
|
|
147,812,786
|
147,812,786
|
|
147,812,786
|
147,812,786
|
||||||||||
|
|
|||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(78,464)
|
$
|
(67,414)
|
|
$
|
(310,577)
|
$
|
(28,495)
|
||||||
Net cash provided by (used in) investing activities
|
|
$
|
4,254
|
$
|
(35,995)
|
|
$
|
(5,270)
|
$
|
(38,454)
|
||||||
Net cash provided by (used in) financing activities
|
|
$
|
21,884
|
$
|
(61,447)
|
|
$
|
15,825
|
$
|
10,718
|
||||||
|
|
|||||||||||||||
Adjusted Homebuilding EBITDA (2)
|
|
$
|
28,350
|
$
|
29,701
|
|
$
|
63,046
|
$
|
102,684
|
(1)
|
In 2008, we issued 147.8 million equivalent shares of common stock (in the form of preferred stock) in connection with the Investment Agreement with MP CA Homes LLC, an affiliate of MatlinPatterson Global Advisers LLC. If the preferred stock was converted to common stock, the total weighted average diluted common shares outstanding for the three months ended September 30, 2011 and 2010 would have been 342.1 million and 254.0 million, respectively, and the total weighted average diluted common shares outstanding for the nine months ended September 30, 2011 and 2010 would have been 341.5 million and 258.8 million, respectively.
|
(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 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 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 our 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 cash flows from operations or any other liquidity performance measure prescribed by GAAP.
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2010
|
2011
|
2010
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(78,464)
|
$
|
(67,414)
|
$
|
(310,577)
|
$
|
(28,495)
|
|||||||
Add:
|
|
|||||||||||||||
Provision for income taxes
|
|
150
|
272
|
425
|
633
|
|||||||||||
Homebuilding interest amortized to cost of sales and interest expense
|
|
23,103
|
22,803
|
68,188
|
78,388
|
|||||||||||
Excess tax benefits from share-based payment arrangements
|
|
―
|
―
|
―
|
27
|
|||||||||||
Less:
|
|
|||||||||||||||
Income (loss) from financial services subsidiary
|
|
1,205
|
709
|
(47)
|
1,685
|
|||||||||||
Depreciation and amortization from financial services subsidiary
|
|
17
|
280
|
593
|
590
|
|||||||||||
(Gain) loss on disposal of property and equipment
|
|
184
|
1
|
184
|
(35)
|
|||||||||||
Net changes in operating assets and liabilities:
|
|
|||||||||||||||
Trade and other receivables
|
|
816
|
(579)
|
12,309
|
983
|
|||||||||||
Mortgage loans held for sale
|
|
14,967
|
(31,621)
|
19,737
|
(5,846)
|
|||||||||||
Inventories-owned
|
|
67,719
|
83,309
|
261,777
|
120,420
|
|||||||||||
Inventories-not owned
|
|
4,859
|
6,520
|
17,659
|
24,070
|
|||||||||||
Other assets
|
|
2,341
|
596
|
313
|
(108,846)
|
|||||||||||
Accounts payable
|
|
(6,027)
|
9,154
|
(5,889)
|
6,576
|
|||||||||||
Accrued liabilities
|
|
292
|
7,651
|
(166)
|
17,014
|
|||||||||||
|
||||||||||||||||
Adjusted Homebuilding EBITDA
|
|
$
|
28,350
|
$
|
29,701
|
$
|
63,046
|
$
|
102,684
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Homebuilding revenues:
|
|||||||||||||||
California
|
$
|
146,441
|
$
|
118,989
|
$
|
339,088
|
$
|
414,613
|
|||||||
Southwest
|
47,342
|
47,956
|
130,274
|
147,491
|
|||||||||||
Southeast
|
48,010
|
40,521
|
120,475
|
137,890
|
|||||||||||
Total homebuilding revenues
|
$
|
241,793
|
$
|
207,466
|
$
|
589,837
|
$
|
699,994
|
|||||||
Homebuilding pretax income (loss):
|
|||||||||||||||
California
|
$
|
(364)
|
$
|
11,874
|
$
|
(2,898)
|
$
|
27,841
|
|||||||
Southwest
|
(2,592)
|
(1,484)
|
(10,126)
|
(2,153)
|
|||||||||||
Southeast
|
(3,396)
|
(2,214)
|
(9,500)
|
(5,042)
|
|||||||||||
Corporate
|
(1,179)
|
(4,100)
|
(8,852)
|
(11,676)
|
|||||||||||
Total homebuilding pretax income (loss)
|
$
|
(7,531)
|
$
|
4,076
|
$
|
(31,376)
|
$
|
8,970
|
|||||||
Homebuilding pretax impairment charges and deposit write-offs:
|
|||||||||||||||
California
|
$
|
6,529
|
$
|
―
|
$
|
10,366
|
$
|
―
|
|||||||
Southwest
|
1,251
|
―
|
3,373
|
―
|
|||||||||||
Southeast
|
1,179
|
―
|
1,179
|
―
|
|||||||||||
Total homebuilding pretax impairment charges and deposit write-offs
|
$
|
8,959
|
$
|
―
|
$
|
14,918
|
$
|
―
|
|||||||
Homebuilding pretax impairment charges and deposit write-offs by type:
|
|||||||||||||||
Deposit write-offs
|
$
|
1,729
|
$
|
―
|
$
|
1,729
|
$
|
―
|
|||||||
Inventory impairments
|
7,230
|
―
|
13,189
|
―
|
|||||||||||
Total homebuilding pretax impairment charges and deposit write-offs
|
$
|
8,959
|
$
|
―
|
$
|
14,918
|
$
|
―
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||
New homes delivered:
|
|||||||||||||||
California
|
295
|
234
|
26%
|
696
|
826
|
(16%)
|
|||||||||
Arizona
|
37
|
45
|
(18%)
|
115
|
154
|
(25%)
|
|||||||||
Texas
|
113
|
95
|
19%
|
285
|
286
|
(0%)
|
|||||||||
Colorado
|
25
|
28
|
(11%)
|
69
|
93
|
(26%)
|
|||||||||
Nevada
|
2
|
6
|
(67%)
|
12
|
15
|
(20%)
|
|||||||||
Total Southwest
|
177
|
174
|
2%
|
481
|
548
|
(12%)
|
|||||||||
Florida
|
120
|
103
|
17%
|
293
|
347
|
(16%)
|
|||||||||
Carolinas
|
105
|
88
|
19%
|
276
|
306
|
(10%)
|
|||||||||
Total Southeast
|
225
|
191
|
18%
|
569
|
653
|
(13%)
|
|||||||||
Consolidated total
|
697
|
599
|
16%
|
1,746
|
2,027
|
(14%)
|
|||||||||
Unconsolidated joint ventures (1)
|
13
|
12
|
8%
|
27
|
40
|
(33%)
|
|||||||||
Total (including joint ventures) (1)
|
710
|
611
|
16%
|
1,773
|
2,067
|
(14%)
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total deliveries of such joint ventures.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||
Average selling prices of homes delivered:
|
(Dollars in thousands)
|
||||||||||||||||||
California
|
$
|
496
|
$
|
508
|
(2%)
|
$
|
487
|
$
|
502
|
(3%)
|
|||||||||
Arizona
|
195
|
214
|
(9%)
|
204
|
204
|
―
|
|||||||||||||
Texas
|
281
|
291
|
(3%)
|
290
|
294
|
(1%)
|
|||||||||||||
Colorado
|
307
|
302
|
2%
|
308
|
296
|
4%
|
|||||||||||||
Nevada
|
192
|
208
|
(8%)
|
194
|
201
|
(3%)
|
|||||||||||||
Total Southwest
|
265
|
270
|
(2%)
|
270
|
267
|
1%
|
|||||||||||||
Florida
|
202
|
196
|
3%
|
200
|
192
|
4%
|
|||||||||||||
Carolinas
|
226
|
230
|
(2%)
|
225
|
231
|
(3%)
|
|||||||||||||
Total Southeast
|
213
|
212
|
0%
|
212
|
210
|
1%
|
|||||||||||||
Consolidated
|
346
|
345
|
0%
|
338
|
344
|
(2%)
|
|||||||||||||
Unconsolidated joint ventures (1)
|
356
|
456
|
(22%)
|
409
|
467
|
(12%)
|
|||||||||||||
Total (including joint ventures) (1)
|
$
|
347
|
$
|
347
|
―
|
$
|
339
|
$
|
347
|
(2%)
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total average selling prices of such joint ventures.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||
Gross
Margin %
|
2010
|
Gross
Margin %
|
2011
|
Gross
Margin %
|
2010
|
Gross
Margin %
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Home sale revenues
|
|
$
|
241,434
|
$
|
206,516
|
|
$
|
589,369
|
$
|
698,138
|
||||||||||
Less: Cost of home sales
|
|
(203,188)
|
(157,677)
|
|
(486,933)
|
(543,400)
|
||||||||||||||
Gross margin from home sales
|
|
38,246
|
15.8%
|
48,839
|
23.6%
|
|
102,436
|
17.4%
|
154,738
|
22.2%
|
||||||||||
Add: Housing inventory impairment charges
|
|
7,230
|
―
|
|
13,189
|
―
|
||||||||||||||
Gross margin from home sales, as adjusted
|
|
$
|
45,476
|
18.8%
|
$
|
48,839
|
23.6%
|
|
$
|
115,625
|
19.6%
|
$
|
154,738
|
22.2%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||
SG&A
as a % of
home sales
|
2010
|
SG&A
as a % of
home sales
|
2011
|
SG&A
as a % of
home sales
|
2010
|
SG&A
as a % of
home sales
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Selling, general and administrative expenses
|
|
$
|
39,124
|
16.2%
|
$
|
36,339
|
17.6%
|
|
$
|
109,828
|
18.6%
|
$
|
112,504
|
16.1%
|
||||||
Less: Restructuring, severance
|
|
|||||||||||||||||||
and other charges
|
|
(631)
|
(0.3%)
|
―
|
―
|
|
(3,370)
|
(0.5%)
|
―
|
―
|
||||||||||
Selling, general and administrative expenses,
|
|
|||||||||||||||||||
excluding restructuring, severance
|
||||||||||||||||||||
and other charges
|
|
$
|
38,493
|
15.9%
|
$
|
36,339
|
17.6%
|
|
$
|
106,458
|
18.1%
|
$
|
112,504
|
16.1%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||
2010
|
% Change
|
% Absorption
Change (1)
|
2011
|
2010
|
% Change
|
% Absorption
Change (1)
|
|||||||||||||
Net new orders (2):
|
|||||||||||||||||||
California
|
286
|
223
|
28%
|
13%
|
831
|
824
|
1%
|
(9%)
|
|||||||||||
Arizona
|
57
|
39
|
46%
|
46%
|
136
|
145
|
(6%)
|
(6%)
|
|||||||||||
Texas
|
117
|
76
|
54%
|
12%
|
376
|
277
|
36%
|
10%
|
|||||||||||
Colorado
|
24
|
26
|
(8%)
|
(26%)
|
75
|
77
|
(3%)
|
(3%)
|
|||||||||||
Nevada
|
4
|
11
|
(64%)
|
(64%)
|
7
|
26
|
(73%)
|
(73%)
|
|||||||||||
Total Southwest
|
202
|
152
|
33%
|
8%
|
594
|
525
|
13%
|
1%
|
|||||||||||
Florida
|
154
|
98
|
57%
|
16%
|
411
|
356
|
15%
|
(17%)
|
|||||||||||
Carolinas
|
122
|
82
|
49%
|
25%
|
344
|
328
|
5%
|
(6%)
|
|||||||||||
Total Southeast
|
276
|
180
|
53%
|
20%
|
755
|
684
|
10%
|
(12%)
|
|||||||||||
Consolidated total
|
764
|
555
|
38%
|
13%
|
2,180
|
2,033
|
7%
|
(8%)
|
|||||||||||
Unconsolidated joint ventures (3)
|
7
|
10
|
(30%)
|
(30%)
|
23
|
38
|
(39%)
|
(39%)
|
|||||||||||
Total (including joint ventures)
|
771
|
565
|
36%
|
13%
|
2,203
|
2,071
|
6%
|
(9%)
|
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||
Average number of selling communities during the period:
|
|||||||||||||||
California
|
52
|
46
|
13%
|
50
|
45
|
11%
|
|||||||||
Arizona
|
10
|
10
|
―
|
9
|
9
|
―
|
|||||||||
Texas
|
22
|
16
|
38%
|
21
|
17
|
24%
|
|||||||||
Colorado
|
5
|
4
|
25%
|
5
|
5
|
―
|
|||||||||
Nevada
|
1
|
1
|
―
|
1
|
1
|
―
|
|||||||||
Total Southwest
|
38
|
31
|
23%
|
36
|
32
|
13%
|
|||||||||
Florida
|
38
|
28
|
36%
|
36
|
26
|
38%
|
|||||||||
Carolinas
|
31
|
26
|
19%
|
28
|
25
|
12%
|
|||||||||
Total Southeast
|
69
|
54
|
28%
|
64
|
51
|
25%
|
|||||||||
Consolidated total
|
159
|
131
|
21%
|
150
|
128
|
17%
|
|||||||||
Unconsolidated joint ventures (3)
|
3
|
3
|
―
|
3
|
3
|
―
|
|||||||||
Total (including joint ventures)
|
162
|
134
|
21%
|
153
|
131
|
17%
|
(1)
|
Represents the percentage change of net new orders per average number of selling communities during the period.
|
(2)
|
Net new orders are new orders for the purchase of homes during the period, less cancellations of existing contracts during such period.
|
(3)
|
Numbers presented regarding unconsolidated joint ventures reflect total net new orders and total average selling communities of such joint ventures.
|
2010
|
% Change
|
|||||||||||||||||||
Backlog ($ in thousands):
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||
California
|
254
|
$
|
145,043
|
245
|
$
|
123,083
|
4%
|
18%
|
||||||||||||
Arizona
|
57
|
11,229
|
38
|
8,184
|
50%
|
37%
|
||||||||||||||
Texas
|
190
|
57,469
|
100
|
30,907
|
90%
|
86%
|
||||||||||||||
Colorado
|
36
|
12,362
|
38
|
11,412
|
(5%)
|
8%
|
||||||||||||||
Nevada
|
3
|
565
|
11
|
2,220
|
(73%)
|
(75%)
|
||||||||||||||
Total Southwest
|
286
|
81,625
|
187
|
52,723
|
53%
|
55%
|
||||||||||||||
Florida
|
185
|
45,781
|
87
|
18,291
|
113%
|
150%
|
||||||||||||||
Carolinas
|
123
|
32,397
|
86
|
20,140
|
43%
|
61%
|
||||||||||||||
Total Southeast
|
308
|
78,178
|
173
|
38,431
|
78%
|
103%
|
||||||||||||||
Consolidated total
|
848
|
304,846
|
605
|
214,237
|
40%
|
42%
|
||||||||||||||
Unconsolidated joint ventures (1)
|
1
|
409
|
7
|
3,148
|
(86%)
|
(87%)
|
||||||||||||||
Total (including joint ventures)
|
849
|
$
|
305,255
|
612
|
$
|
217,385
|
39%
|
40%
|
(1)
|
Numbers presented regarding unconsolidated joint ventures reflect total backlog of such joint ventures.
|
2010
|
% Change
|
||||||||
Lots owned and controlled:
|
|||||||||
California
|
9,527
|
9,646
|
(1%)
|
||||||
Arizona
|
1,860
|
1,982
|
(6%)
|
||||||
Texas
|
4,120
|
2,448
|
68%
|
||||||
Colorado
|
718
|
392
|
83%
|
||||||
Nevada
|
1,136
|
1,203
|
(6%)
|
||||||
Total Southwest
|
7,834
|
6,025
|
30%
|
||||||
Florida
|
6,554
|
5,001
|
31%
|
||||||
Carolinas
|
2,911
|
2,578
|
13%
|
||||||
Total Southeast
|
9,465
|
7,579
|
25%
|
||||||
Total (including joint ventures)
|
26,826
|
23,250
|
15%
|
||||||
Lots owned
|
20,139
|
17,468
|
15%
|
||||||
Lots optioned or subject to contract
|
5,392
|
4,320
|
25%
|
||||||
Joint venture lots (1)
|
1,295
|
1,462
|
(11%)
|
||||||
Total (including joint ventures)
|
26,826
|
23,250
|
15%
|
||||||
Lots owned:
|
|||||||||
Raw lots
|
4,202
|
3,372
|
25%
|
||||||
Lots under development
|
4,326
|
2,878
|
50%
|
||||||
Finished lots
|
5,982
|
5,965
|
0%
|
||||||
Under construction or completed homes
|
1,961
|
1,730
|
13%
|
||||||
Held for sale
|
3,668
|
3,523
|
4%
|
||||||
Total
|
20,139
|
17,468
|
15%
|
(1)
|
Joint venture lots represent our expected share of land development joint venture lots and all of the lots of our homebuilding joint ventures.
|
2010
|
% Change
|
||||||||
Homes under construction (including speculative homes):
|
|||||||||
Consolidated
|
1,193
|
886
|
35%
|
||||||
Joint ventures
|
6
|
9
|
(33%)
|
||||||
Total
|
1,199
|
895
|
34%
|
||||||
Speculative homes under construction:
|
|||||||||
Consolidated
|
648
|
527
|
23%
|
||||||
Joint ventures
|
6
|
8
|
(25%)
|
||||||
Total
|
654
|
535
|
22%
|
||||||
Completed and unsold homes:
|
|||||||||
Consolidated
|
296
|
391
|
(24%)
|
||||||
Joint ventures
|
11
|
12
|
(8%)
|
||||||
Total
|
307
|
403
|
(24%)
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||
2010
|
2011
|
2010
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Total Originations:
|
||||||||||||
Loans
|
|
502
|
481
|
1,215
|
1,495
|
|||||||
Principal
|
$137,604
|
$130,038
|
$326,027
|
$394,710
|
||||||||
Capture Rate
|
80%
|
82%
|
79%
|
80%
|
||||||||
Loans Sold to Third Parties:
|
||||||||||||
Loans
|
457
|
597
|
1,159
|
1,516
|
||||||||
Principal
|
|
$123,021
|
$161,052
|
$305,340
|
$399,341
|
|||||||
Mortgage Loan Origination Product Mix:
|
||||||||||||
FHA loans
|
29%
|
36%
|
32%
|
41%
|
||||||||
Other government loans (VA & USDA)
|
22%
|
18%
|
20%
|
17%
|
||||||||
Total government loans
|
51%
|
54%
|
52%
|
58%
|
||||||||
Conforming loans
|
49%
|
46%
|
48%
|
42%
|
||||||||
Jumbo loans
|
|
0%
|
0%
|
0%
|
0%
|
|||||||
100%
|
100%
|
100%
|
100%
|
|||||||||
Loan Type:
|
||||||||||||
Fixed
|
95%
|
95%
|
95%
|
96%
|
||||||||
ARM
|
5%
|
5%
|
5%
|
4%
|
||||||||
Credit Quality:
|
||||||||||||
FICO score ≥ 700
|
93%
|
95%
|
94%
|
95%
|
||||||||
FICO score between 620 - 699
|
|
7%
|
5%
|
6%
|
5%
|
|||||||
FICO score < 620 (sub-prime loans)
|
0%
|
0%
|
0%
|
0%
|
||||||||
Avg. FICO score
|
743
|
743
|
742
|
741
|
||||||||
Other Data:
|
||||||||||||
Avg. combined LTV ratio
|
87%
|
86%
|
87%
|
87%
|
||||||||
Full documentation loans
|
100%
|
100%
|
100%
|
100%
|
||||||||
Non-Full documentation loans
|
|
0%
|
0%
|
0%
|
0%
|
(including warrant and employee stock option exercises)
|
Covenant and Other Requirements
|
Actual at
|
Covenant
Requirements at
|
|||||
(Dollars in millions) | |||||||
Consolidated Tangible Net Worth (1)
|
$604.9 | ≥ | $443.6 | ||||
Leverage Ratio:
|
|
|
|
||||
Net Homebuilding Debt to Adjusted Consolidated Tangible Net Worth Ratio (2)
|
1.63 | ≤ | 2.75 | ||||
Land Not Under Development Ratio:
|
|
||||||
Land Not Under Development to Consolidated Tangible Net Worth Ratio (3) | 0.29 | ≤ |
1.00
|
||||
Liquidity or Interest Coverage Ratio (4): | |||||||
Liquidity | $413.3 | ≥ | $125.8 | ||||
EBITDA (as defined in the Revolving Facility) to Consolidated Interest Incurred (5) | 0.79 | ≥ | 1.00 | ||||
Investments in Homebuilding Joint Ventures or Consolidated Homebuilding Non-Guarantor Entities (6) | $76.3 | ≤ | $291.7 | ||||
Actual/Permitted Borrowings under the Revolving Facility (7) | $0 | ≤ | $197.8 |
(1)
|
The minimum covenant requirement amount is subject to increase over time based on subsequent earnings (without deductions for losses) and proceeds from equity offerings.
|
(2)
|
This ratio decreases to 2.50 to 1.00 for the period ending September 30, 2013 and thereafter. Net Homebuilding Debt represents Consolidated Homebuilding Debt reduced for certain cash balances in excess of a required reserve amount.
|
(3)
|
Land not under development is land that has not yet undergone physical site improvement and has not been sold to a homebuyer or other third party.
|
(4)
|
Under the liquidity and interest coverage covenant, we are required to either (i) maintain an unrestricted cash balance in excess of our consolidated interest expense for the previous four fiscal quarters or (ii) satisfy a minimum interest coverage ratio.
|
(5)
|
The ratio increases to 1.25 to 1.00 beginning with the quarter ending June 30, 2012, and to 1.50 to 1.00 beginning with the quarter ending March 31, 2013. Consolidated Interest Incurred excludes noncash interest expense.
|
(6)
|
Net investments in unconsolidated homebuilding joint ventures or consolidated homebuilding non-guarantor entities must not exceed 35% of consolidated tangible net worth plus $80 million.
|
(7)
|
As of September 30, 2011 our borrowing base plus our overadvance amount exceeded our borrowing base debt by approximately $266 million. However, our borrowing base availability is limited by our total commitment, which was $210 million as of September 30, 2011. In addition, the amount we can borrow under the Revolving Facility is limited by a mandatory prepayment requirement that further limits our permitted borrowings to $197.8 million as of September 30, 2011, which represents $100 million plus 90% of the book value of our completed model home inventory.
|
(Dollars in thousands)
|
||||
|
||||
9¼% Senior Subordinated Notes due April 2012
|
|
$
|
9,990
|
|
6¼% Senior Notes due April 2014
|
|
4,971
|
||
7% Senior Notes due August 2015
|
|
29,789
|
||
10¾% Senior Notes due September 2016
|
|
280,000
|
||
8⅜% Senior Notes due May 2018
|
|
575,000
|
||
8⅜% Senior Notes due January 2021
|
|
400,000
|
||
$
|
1,299,750
|
Covenant Requirements
|
Actual at
|
Covenant
Requirements at
|
||||
Total Leverage Ratio:
|
||||||
Indebtedness to Consolidated Tangible Net Worth Ratio (1)
|
2.18
|
|
≤ 2.25
|
|||
Interest Coverage Ratio:
|
||||||
EBITDA (as defined in the indenture) to Consolidated Interest Incurred
|
0.52
|
|
≥ 2.00
|
(1)
|
Indebtedness represents consolidated homebuilding debt reduced by cash held by Standard Pacific Corp. and its restricted subsidiaries in excess of $5 million. As of September 30, 2011, our unrestricted subsidiaries had approximately $376.8 million of cash. As of September 30, 2011, we retained the ability, at our option, to distribute substantially all of this cash to Standard Pacific Corp. If such a distribution were to occur, the Leverage Ratio would be positively impacted.
|
·
|
our belief that our current restructuring activities are substantially complete but that we may incur additional restructuring charges;
|
·
|
our strategy to align new home starts with sales to manage our inventory of completed and unsold homes;
|
·
|
the willingness of customers to purchase homes at times when mortgage-financing costs are high or when credit is difficult to obtain;
|
·
|
competition with other homebuilders as well as competition from the sellers of existing homes, short-sale homes and foreclosed homes;
|
·
|
our reliance on subcontractors and the adverse impact of their ability to properly construct our homes;
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·
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risks relating to our mortgage financing activities, including our obligation to repurchase loans we previously sold in the secondary market and exposure to regulatory investigations or lawsuits claiming improper lending practices;
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·
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government regulation, including environmental, building, climate change, worker health, safety, zoning and land use regulation;
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·
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the impact of restrictive covenants in our credit agreements, public notes and private term loans and our ability to comply with these covenants, including our ability to incur additional indebtedness;
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·
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risks relating to our unconsolidated joint ventures, including our ability and the ability of our partners to contribute funds to our joint ventures when needed or contractually agreed to, entitlement and development risks for the land owned by our joint ventures, the availability of financing to the joint venture, our completion obligations to the joint venture, the illiquidity of our joint venture investments, partner disputes, and risks relating to our determinations concerning the consolidation or non-consolidation of our joint venture investments;
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·
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our inability to realize the benefit of our net deferred tax asset and other risks discussed in this report and our other filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2010.
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32.1
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Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101
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The following materials from Standard Pacific Corp.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Condensed Consolidated Financial Statements, tagged as blocks of text. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
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STANDARD PACIFIC CORP. | |||
(Registrant) | |||
Dated: November 1, 2011
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By:
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||
Chief Executive Officer
(Principal Executive Officer)
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|||
Dated: November 1, 2011
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By:
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/s/ Jeff J. McCall
|
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Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
9/30/13 | 4 | |||
6/27/13 | CORRESP | |||
3/31/13 | 10-Q, 4 | |||
10/1/12 | ||||
6/30/12 | 10-Q, 4 | |||
12/31/11 | 10-K, 4 | |||
12/15/11 | ||||
Filed on: | 11/1/11 | |||
10/31/11 | ||||
For Period end: | 9/30/11 | 4 | ||
6/30/11 | 10-Q, 4 | |||
2/28/11 | 8-K | |||
1/1/11 | ||||
12/31/10 | 10-K, 4 | |||
9/30/10 | 10-Q, 4 | |||
6/27/08 | 3, 8-K | |||
1/1/08 | ||||
12/31/06 | 10-K, ARS | |||
List all Filings |