Standard Pacific Corp. (SPF)

[eastunder]

Standard Pacific Corp. Reports 2012 Second Quarter Results

http://www.streetinsider.com/Press+Releases/Standard+Pacific+Corp.+Reports+2012+Second+Quarter+Results/7608108.html


Standard Pacific Corp. (NYSE: SPF) today announced results for the second quarter ended June 30, 2012.

2012 Second Quarter Highlights and Comparisons to the 2011 Second Quarter:

Net income of $14.3 million, or $0.04 per diluted share, vs. net loss of $10.5 million, or $0.03 per diluted share

Net new orders of 1,108, up 45%

Backlog of 1,266 homes, up 62%

157 average active selling communities, up 3%

Homebuilding revenues up 35%

Average selling price of $337 thousand, up 1%

815 new home deliveries, up 34%

Gross margin from home sales of 20.5%, compared to 17.0% (20.0%* excluding impairments in Q2 2011)

SG&A rate from home sales of 15.3%, a 350 basis point improvement

Operating cash outflows of $56.6 million, a $65.4 million improvement from $122.0 million

$131.1 million of land purchases and development costs, compared to $123.8 million

Adjusted Homebuilding EBITDA of $41.8 million*, or 15.2%* of homebuilding revenues, compared to $23.7 million*, or 11.6%* of homebuilding revenues

Homebuilding cash balance of $317 million

Scott Stowell, the Company's Chief Executive Officer and President commented, "We are pleased that the positive momentum we experienced during the first quarter of 2012 continued into the second quarter. We earned $14.3 million, or $0.04 cents per share, with deliveries up 34%, revenues up 35%, orders up 45% and homes in backlog up 62% over the prior year period. Our solid second quarter results reflect the execution of our strategy and continued improvement in housing market conditions during the quarter."

Home sale revenues for the 2012 second quarter increased 35% from $204.2 million for the 2011 second quarter to $274.9 million, primarily due to a 34% increase in new home deliveries (excluding joint ventures) to 815 homes. The increase in new home deliveries was driven by a 55% increase in the number of homes in backlog at the beginning of the quarter as compared to the prior year period and a 13% increase in speculative homes sold and delivered during the quarter to 285 homes, compared to 253 homes.

Gross margin from home sales for the 2012 second quarter increased to 20.5% compared to 17.0% (20.0%* excluding $6.0 million of inventory impairment charges) in the prior year period, primarily attributable to the improvement in gross margins from speculative homes sold and delivered during the quarter, offset by an increase in previously capitalized interest included in cost of home sales. Excluding inventory impairment charges and previously capitalized interest costs, gross margin from home sales was 29.4%* for the 2012 second quarter versus 27.9%* for the 2011 second quarter.

The Company's 2012 second quarter SG&A expenses (including Corporate G&A) were $42.0 million compared to $38.4 million for the prior year period, down 350 basis points as a percentage of home sale revenues to 15.3%, compared to 18.8% (17.8%* excluding $2.2 million of severance and other charges related to executive management changes) for the 2011 second quarter. The improvement in the Company's SG&A rate was primarily due to a 35% increase in revenues from home sales and the operating leverage inherent in our business. The Company's G&A expenses (excluding incentive and stock-based compensation and charges related to executive management changes) were $21.0 million for the 2012 second quarter, compared to $20.8 million for the 2011 second quarter and $20.9 million for the 2012 first quarter.

Net new orders (excluding joint ventures) for the 2012 second quarter increased 45% from the 2011 second quarter to 1,108 homes on a slight increase in the number of average active selling communities, from 153 to 157, reflecting an increase in the Company's monthly sales absorption rate for the 2012 second quarter to 2.4 per community, compared to 1.7 per community for the 2011 second quarter and 2.0 per community for the 2012 first quarter. The Company's cancellation rate for the 2012 second quarter was 11%, compared to 14% for the 2011 second quarter and 13% for the 2012 first quarter.

The dollar value of homes in backlog (excluding joint ventures) increased 50% to $439.7 million, or 1,266 homes, compared to $293.8 million, or 781 homes, for the 2011 second quarter, and increased 32% compared to $331.9 million, or 973 homes, for the 2012 first quarter. The increase in year over year backlog value was driven primarily by a 45% increase in net new orders.

The Company used $56.6 million of cash in operating activities for the 2012 second quarter versus $122.0 million in the 2011 second quarter. Cash flows used in operating activities for the 2012 second quarter included $96.6 million of cash land purchases and $34.5 million of land development costs, compared to $92.2 million and $31.6 million, respectively, for the 2011 second quarter. Excluding land purchases and development costs, cash inflows from operating activities for the 2012 second quarter were $74.5 million* versus $1.9 million* in the 2011 second quarter. The year over year increase in cash inflows from operating activities (excluding land purchases and development costs) was primarily due to a 35% increase in home sale revenues.

The Company purchased $96.6 million of land (2,238 homesites) during the 2012 second quarter. Approximately 36% of land purchases (based on land value) were located in California and 32% in Florida, with the balance spread throughout the Company's other operations. As of June 30, 2012, the Company owned or controlled 27,757 homesites, of which 14,966 owned homesites are actively selling or under development. The homesites owned that are actively selling or under development represent a 5.1 year supply based on the Company's deliveries for the trailing twelve months ended June 30, 2012.