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)
|
Standard Pacific Corp.
|
||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer x
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Page No.
|
|||||
PART I. | Financial Information | ||||
ITEM 1.
|
|||||
2 | |||||
3
|
|||||
4
|
|||||
5
|
|||||
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27 | |||
ITEM 3. |
40
|
||||
ITEM 4. |
40
|
||||
PART II. | Other Information |
|
|||
ITEM 1. |
43
|
||||
ITEM 1A.
|
43
|
||||
ITEM 2. |
43
|
||||
ITEM 3. |
43
|
||||
ITEM 4. |
43
|
||||
ITEM 5. | Other Information | 43 | |||
ITEM 6. | Exhibits | 44 | |||
SIGNATURES |
48
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
626,008
|
$
|
603,788
|
$
|
1,789,065
|
$
|
1,642,412
|
||||||||
Land sale revenues
|
26,182
|
1,061
|
33,035
|
15,122
|
||||||||||||
Total revenues
|
652,190
|
604,849
|
1,822,100
|
1,657,534
|
||||||||||||
Cost of home sales
|
(467,358
|
)
|
(444,898
|
)
|
(1,346,108
|
)
|
(1,207,339
|
)
|
||||||||
Cost of land sales
|
(25,076
|
)
|
(891
|
)
|
(30,190
|
)
|
(14,245
|
)
|
||||||||
Total cost of sales
|
(492,434
|
)
|
(445,789
|
)
|
(1,376,298
|
)
|
(1,221,584
|
)
|
||||||||
Gross margin
|
159,756
|
159,060
|
445,802
|
435,950
|
||||||||||||
Selling, general and administrative expenses
|
(73,260
|
)
|
(70,164
|
)
|
(219,240
|
)
|
(196,589
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
121
|
557
|
(381
|
)
|
(342
|
)
|
||||||||||
Other income (expense)
|
(11,170
|
)
|
(69
|
)
|
(16,742
|
)
|
(445
|
)
|
||||||||
Homebuilding pretax income
|
75,447
|
89,384
|
209,439
|
238,574
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
6,130
|
6,179
|
17,765
|
17,275
|
||||||||||||
Expenses
|
(4,079
|
)
|
(3,673
|
)
|
(12,626
|
)
|
(10,873
|
)
|
||||||||
Other income
|
796
|
231
|
1,734
|
606
|
||||||||||||
Financial services pretax income
|
2,847
|
2,737
|
6,873
|
7,008
|
||||||||||||
Income before taxes
|
78,294
|
92,121
|
216,312
|
245,582
|
||||||||||||
Provision for income taxes
|
(31,117
|
)
|
(35,522
|
)
|
(80,332
|
)
|
(94,361
|
)
|
||||||||
Net income
|
47,177
|
56,599
|
135,980
|
151,221
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
(11,342
|
)
|
(13,511
|
)
|
(32,818
|
)
|
(36,165
|
)
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(93
|
)
|
(77
|
)
|
(274
|
)
|
(211
|
)
|
||||||||
Net income available to common stockholders
|
$
|
35,742
|
$
|
43,011
|
$
|
102,888
|
$
|
114,845
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
0.65
|
$
|
0.77
|
$
|
1.87
|
$
|
2.06
|
||||||||
Diluted
|
$
|
0.59
|
$
|
0.70
|
$
|
1.71
|
$
|
1.87
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
55,345,443
|
55,909,542
|
55,059,683
|
55,772,603
|
||||||||||||
Diluted
|
62,292,524
|
63,423,385
|
62,152,754
|
63,338,361
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
17,562,557
|
17,562,557
|
17,562,557
|
17,562,557
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
79,855,081
|
80,985,942
|
79,715,311
|
80,900,918
|
September 30,
2015 |
December 31,
2014 |
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
97,854
|
$
|
180,428
|
||||
Restricted cash
|
37,425
|
38,222
|
||||||
Inventories:
|
||||||||
Owned
|
3,805,453
|
3,255,204
|
||||||
Not owned
|
47,333
|
85,153
|
||||||
Investments in unconsolidated joint ventures
|
121,937
|
50,111
|
||||||
Deferred income taxes, net of valuation allowance of $1,115 and $2,561 at
|
||||||||
September 30, 2015 and December 31, 2014, respectively
|
255,297
|
276,402
|
||||||
Other assets
|
52,074
|
61,597
|
||||||
Total Homebuilding Assets
|
4,417,373
|
3,947,117
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
28,868
|
31,965
|
||||||
Restricted cash
|
1,045
|
1,295
|
||||||
Mortgage loans held for sale, net
|
86,064
|
174,420
|
||||||
Mortgage loans held for investment, net
|
22,087
|
14,380
|
||||||
Other assets
|
5,772
|
5,243
|
||||||
Total Financial Services Assets
|
143,836
|
227,303
|
||||||
Total Assets
|
$
|
4,561,209
|
$
|
4,174,420
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
82,754
|
$
|
45,085
|
||||
Accrued liabilities
|
209,872
|
223,783
|
||||||
Revolving credit facility
|
268,700
|
―
|
||||||
Secured project debt and other notes payable
|
5,855
|
4,689
|
||||||
Senior notes payable
|
2,104,212
|
2,131,393
|
||||||
Total Homebuilding Liabilities
|
2,671,393
|
2,404,950
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
3,630
|
3,369
|
||||||
Mortgage credit facilities
|
78,859
|
89,413
|
||||||
Total Financial Services Liabilities
|
82,489
|
92,782
|
||||||
Total Liabilities
|
2,753,882
|
2,497,732
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; 53,565 shares
|
||||||||
issued and outstanding at September 30, 2015 and December 31, 2014
|
1
|
1
|
||||||
Common stock, $0.01 par value; 600,000,000 shares authorized; 55,444,065
|
||||||||
and 55,028,238 shares issued and outstanding at September 30, 2015 and
|
||||||||
December 31, 2014, respectively
|
554
|
550
|
||||||
Additional paid-in capital
|
1,343,560
|
1,348,905
|
||||||
Accumulated earnings
|
463,212
|
327,232
|
||||||
Total Equity
|
1,807,327
|
1,676,688
|
||||||
Total Liabilities and Equity
|
$
|
4,561,209
|
$
|
4,174,420
|
Nine Months Ended September 30,
|
||||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
135,980
|
$
|
151,221
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
(Income) loss from unconsolidated joint ventures
|
381
|
342
|
||||||
Cash distribution of income from unconsolidated joint ventures
|
592
|
1,875
|
||||||
Depreciation and amortization
|
22,369
|
18,908
|
||||||
Loss on disposal of property and equipment
|
41
|
6
|
||||||
Amortization of stock-based compensation
|
8,620
|
7,736
|
||||||
Excess tax benefits from share-based payment arrangements
|
(8,573
|
)
|
(960
|
)
|
||||
Deferred income tax provision
|
52,132
|
94,474
|
||||||
Changes in cash and equivalents due to:
|
||||||||
Mortgage loans held for sale
|
88,360
|
53,108
|
||||||
Inventories - owned
|
(521,646
|
)
|
(562,812
|
)
|
||||
Inventories - not owned
|
(21,612
|
)
|
(19,884
|
)
|
||||
Other assets
|
8,862
|
(14,645
|
)
|
|||||
Accounts payable
|
37,669
|
14,753
|
||||||
Accrued liabilities
|
(19,005
|
)
|
(2,668
|
)
|
||||
Net cash provided by (used in) operating activities
|
(215,830
|
)
|
(258,546
|
)
|
||||
Cash Flows From Investing Activities:
|
||||||||
Investments in unconsolidated homebuilding joint ventures
|
(83,288
|
)
|
(7,948
|
)
|
||||
Distributions of capital from unconsolidated joint ventures
|
10,289
|
18,010
|
||||||
Net cash paid for acquisitions
|
―
|
(33,408
|
)
|
|||||
Other investing activities
|
(11,716
|
)
|
(1,984
|
)
|
||||
Net cash provided by (used in) investing activities
|
(84,715
|
)
|
(25,330
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Change in restricted cash
|
1,047
|
(15,567
|
)
|
|||||
Borrowings from revolving credit facility
|
491,400
|
―
|
||||||
Principal payments on revolving credit facility
|
(222,700
|
)
|
―
|
|||||
Principal payments on secured project debt and other notes payable
|
(569
|
)
|
(1,399
|
)
|
||||
Principal payments on senior notes payable
|
(29,789
|
)
|
(4,971
|
)
|
||||
Payment of debt issuance costs
|
―
|
(2,387
|
)
|
|||||
Net proceeds from (payments on) mortgage credit facilities
|
(10,554
|
)
|
(36,169
|
)
|
||||
Repurchases of common stock
|
(22,073
|
)
|
―
|
|||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
(461
|
)
|
5,786
|
|||||
Excess tax benefits from share-based payment arrangements
|
8,573
|
960
|
||||||
Net cash provided by (used in) financing activities
|
214,874
|
(53,747
|
)
|
|||||
Net increase (decrease) in cash and equivalents
|
(85,671
|
)
|
(337,623
|
)
|
||||
Cash and equivalents at beginning of period
|
212,393
|
363,291
|
||||||
Cash and equivalents at end of period
|
$
|
126,722
|
$
|
25,668
|
||||
Cash and equivalents at end of period
|
$
|
126,722
|
$
|
25,668
|
||||
Homebuilding restricted cash at end of period
|
37,425
|
37,027
|
||||||
Financial services restricted cash at end of period
|
1,045
|
1,295
|
||||||
Cash and equivalents and restricted cash at end of period
|
$
|
165,192
|
$
|
63,990
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||
2015
|
2014
|
2015
|
2014
|
||||||||||
(Dollars in thousands)
|
|||||||||||||
Homebuilding revenues
|
|
$
|
1,344,969
|
$
|
1,273,087
|
$
|
3,656,924
|
$
|
3,373,501
|
As of
|
Split/Exchange
|
As Adjusted
|
||||
October 1, 2015
|
Ratio
|
October 1, 2015
|
||||
Common Stock - Standard Pacific
|
277,220,324
|
5
|
55,444,065
|
|||
Common Stock - Ryland
|
|
46,856,558
|
1.0191
|
47,751,518
|
||
Accelerated Vesting of Ryland Equity Awards
|
234,751
|
1.0191
|
239,235
|
|||
Preferred Stock - Standard Pacific
|
87,812,786
|
5
|
17,562,557
|
|||
Fractional Shares Paid Out
|
―
|
(661)
|
||||
Total
|
412,124,419
|
120,996,714
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Homebuilding revenues:
|
||||||||||||||||
Southeast
|
$
|
211,759
|
$
|
171,091
|
$
|
556,330
|
$
|
474,601
|
||||||||
Southwest
|
155,595
|
128,916
|
461,304
|
329,930
|
||||||||||||
West
|
284,836
|
304,842
|
804,466
|
853,003
|
||||||||||||
Total homebuilding revenues
|
$
|
652,190
|
$
|
604,849
|
$
|
1,822,100
|
$
|
1,657,534
|
||||||||
Homebuilding pretax income:
|
||||||||||||||||
Southeast
|
$
|
19,379
|
$
|
16,312
|
$
|
44,909
|
$
|
45,051
|
||||||||
Southwest
|
16,552
|
12,407
|
49,817
|
32,738
|
||||||||||||
West
|
39,516
|
60,665
|
114,713
|
160,785
|
||||||||||||
Total homebuilding pretax income
|
$
|
75,447
|
$
|
89,384
|
$
|
209,439
|
$
|
238,574
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Homebuilding assets:
|
||||||||
Southeast
|
$
|
1,290,874
|
$
|
1,060,343
|
||||
Southwest
|
666,391
|
624,765
|
||||||
West
|
2,073,094
|
1,744,308
|
||||||
Corporate
|
387,014
|
517,701
|
||||||
Total homebuilding assets
|
$
|
4,417,373
|
$
|
3,947,117
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$
|
47,177
|
$
|
56,599
|
$
|
135,980
|
$
|
151,221
|
||||||||
Less: Net income allocated to preferred shareholder
|
(11,342
|
)
|
(13,511
|
)
|
(32,818
|
)
|
(36,165
|
)
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(93
|
)
|
(77
|
)
|
(274
|
)
|
(211
|
)
|
||||||||
Net income available to common stockholders for basic
|
||||||||||||||||
earnings per common share
|
35,742
|
43,011
|
102,888
|
114,845
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Net income allocated to preferred shareholder
|
11,342
|
13,511
|
32,818
|
36,165
|
||||||||||||
Interest on 1¼% convertible senior notes due 2032,
|
||||||||||||||||
capitalized and amortized in cost of sales
|
41
|
41
|
490
|
490
|
||||||||||||
Net income available to common and preferred stock for diluted
|
||||||||||||||||
earnings per share
|
$
|
47,125
|
$
|
56,563
|
$
|
136,196
|
$
|
151,500
|
||||||||
Denominator:
|
||||||||||||||||
Weighted average basic common shares outstanding
|
55,345,443
|
55,909,542
|
55,059,683
|
55,772,603
|
||||||||||||
Weighted average additional common shares outstanding if preferred shares
|
||||||||||||||||
converted to common shares (if dilutive)
|
17,562,557
|
17,562,557
|
17,562,557
|
17,562,557
|
||||||||||||
Total weighted average common shares outstanding if preferred shares
|
||||||||||||||||
converted to common shares
|
72,908,000
|
73,472,099
|
72,622,240
|
73,335,160
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Share-based awards
|
684,511
|
1,251,273
|
830,501
|
1,303,188
|
||||||||||||
1¼% convertible senior notes due 2032
|
6,262,570
|
6,262,570
|
6,262,570
|
6,262,570
|
||||||||||||
Weighted average diluted shares outstanding
|
79,855,081
|
80,985,942
|
79,715,311
|
80,900,918
|
||||||||||||
Income per common share:
|
||||||||||||||||
Basic
|
$
|
0.65
|
$
|
0.77
|
$
|
1.87
|
$
|
2.06
|
||||||||
Diluted
|
$
|
0.59
|
$
|
0.70
|
$
|
1.71
|
$
|
1.87
|
September 30, 2015
|
||||||||||||||||
Southeast
|
Southwest
|
West
|
Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Land and land under development
|
$
|
840,926
|
$
|
340,918
|
$
|
1,079,353
|
$
|
2,261,197
|
||||||||
Homes completed and under construction
|
346,696
|
269,667
|
683,248
|
1,299,611
|
||||||||||||
Model homes
|
77,201
|
35,844
|
131,600
|
244,645
|
||||||||||||
Total inventories owned
|
$
|
1,264,823
|
$
|
646,429
|
$
|
1,894,201
|
$
|
3,805,453
|
||||||||
December 31, 2014
|
||||||||||||||||
Southeast
|
Southwest
|
West
|
Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Land and land under development
|
$
|
722,166
|
$
|
339,625
|
$
|
1,186,498
|
$
|
2,248,289
|
||||||||
Homes completed and under construction
|
258,132
|
223,032
|
346,448
|
827,612
|
||||||||||||
Model homes
|
53,103
|
36,199
|
90,001
|
179,303
|
||||||||||||
Total inventories owned
|
$
|
1,033,401
|
$
|
598,856
|
$
|
1,622,947
|
$
|
3,255,204
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Land purchase and lot option deposits
|
$
|
44,241
|
$
|
47,472
|
||||
Other lot option contracts, net of deposits
|
3,092
|
37,681
|
||||||
Total inventories not owned
|
$
|
47,333
|
$
|
85,153
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Total interest incurred
|
$
|
42,304
|
$
|
37,308
|
$
|
125,964
|
$
|
113,735
|
||||||||
Less: Interest capitalized to inventories owned
|
(41,611
|
)
|
(36,927
|
)
|
(124,520
|
)
|
(112,368
|
)
|
||||||||
Less: Interest capitalized to investments in unconsolidated joint ventures
|
(693
|
)
|
(381
|
)
|
(1,444
|
)
|
(1,367
|
)
|
||||||||
Interest expense
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
||||||||
Interest previously capitalized to inventories owned, included in cost of home sales
|
$
|
30,275
|
$
|
28,872
|
$
|
87,721
|
$
|
83,052
|
||||||||
Interest previously capitalized to inventories owned, included in cost of land sales
|
$
|
3,048
|
$
|
87
|
$
|
4,803
|
$
|
706
|
||||||||
Interest previously capitalized to investments in unconsolidated joint ventures,
|
||||||||||||||||
included in income (loss) from unconsolidated joint ventures
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
30
|
||||||||
Interest capitalized in ending inventories owned (1)
|
$
|
307,603
|
$
|
275,367
|
$
|
307,603
|
$
|
275,367
|
||||||||
Interest capitalized as a percentage of inventories owned
|
8.1
|
%
|
8.8
|
%
|
8.1
|
%
|
8.8
|
%
|
||||||||
Interest capitalized in ending investments in unconsolidated joint ventures (1)
|
$
|
2,109
|
$
|
299
|
$
|
2,109
|
$
|
299
|
||||||||
Interest capitalized as a percentage of investments in unconsolidated joint ventures
|
1.7
|
%
|
0.6
|
%
|
1.7
|
%
|
0.6
|
%
|
(1)
|
During the three and nine months ended September 30, 2014, in connection with lot purchases from our joint ventures, $2.0 million and $6.0 million, respectively, of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned.
|
Nine Months Ended
September 30, |
||||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
Revenues
|
$
|
22,350
|
$
|
31,225
|
||||
Cost of sales and expenses
|
(25,444
|
)
|
(35,943
|
)
|
||||
Income (loss) of unconsolidated joint ventures
|
$
|
(3,094
|
)
|
$
|
(4,718
|
)
|
||
Income (loss) from unconsolidated joint ventures reflected in the
|
||||||||
accompanying condensed consolidated statements of operations
|
$
|
(381
|
)
|
$
|
(342
|
)
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Cash
|
$
|
28,218
|
$
|
29,472
|
||||
Inventories
|
403,953
|
197,727
|
||||||
Other assets
|
13,975
|
10,372
|
||||||
Total assets
|
$
|
446,146
|
$
|
237,571
|
||||
Liabilities and Equity:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
12,502
|
$
|
16,173
|
||||
Non-recourse debt
|
30,000
|
30,000
|
||||||
Standard Pacific equity
|
124,966
|
54,347
|
||||||
Other members' equity
|
278,678
|
137,051
|
||||||
Total liabilities and equity
|
$
|
446,146
|
$
|
237,571
|
||||
Investments in unconsolidated joint ventures reflected in
|
||||||||
the accompanying condensed consolidated balance sheets
|
$
|
121,937
|
$
|
50,111
|
Nine Months Ended September 30,
|
||||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Warranty accrual, beginning of the period
|
$
|
13,584
|
$
|
13,811
|
||||
Warranty costs accrued during the period
|
7,403
|
4,950
|
||||||
Warranty costs paid during the period
|
(7,119
|
)
|
(5,615
|
)
|
||||
Warranty accrual, end of the period
|
$
|
13,868
|
$
|
13,146
|
September 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
7% Senior Notes due August 2015
|
$
|
―
|
$
|
29,789
|
||||
10¾% Senior Notes due September 2016, net of discount
|
275,707
|
272,684
|
||||||
8⅜% Senior Notes due May 2018, net of premium
|
577,629
|
578,278
|
||||||
8⅜% Senior Notes due January 2021, net of discount
|
397,876
|
397,642
|
||||||
6¼% Senior Notes due December 2021
|
300,000
|
300,000
|
||||||
5⅞% Senior Notes due November 2024
|
300,000
|
300,000
|
||||||
1¼% Convertible Senior Notes due August 2032
|
253,000
|
253,000
|
||||||
$
|
2,104,212
|
$
|
2,131,393
|
Fair Value at
|
|||||||||
Description
|
Fair Value
Hierarchy
|
September 30,
2015 |
December 31,
2014 |
||||||
(Dollars in thousands) | |||||||||
|
|||||||||
Mortgage loans held for sale
|
|
Level 2
|
|
$
|
88,163
|
$
|
176,511
|
September 30, 2015
|
December 31, 2014
|
||||||||||||||
Description
|
Fair Value Hierarchy
|
|
Carrying
Amount |
|
Fair Value
|
|
Carrying
Amount |
|
Fair Value
|
||||||
(Dollars in thousands) | |||||||||||||||
|
|||||||||||||||
Financial services assets:
|
|
||||||||||||||
Mortgage loans held for investment, net
|
|
Level 2
|
|
$
|
22,087
|
$
|
22,087
|
$
|
14,380
|
$
|
14,380
|
||||
Homebuilding liabilities:
|
|
||||||||||||||
Senior notes payable, net
|
|
Level 2
|
|
$
|
2,104,212
|
$
|
2,328,899
|
$
|
2,131,393
|
$
|
2,337,839
|
Nine Months Ended
September 30, |
||||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$
|
66,310
|
$
|
6,766
|
||||
Supplemental Disclosures of Noncash Activities:
|
||||||||
Liabilities assumed in connection with acquisitions
|
$
|
―
|
$
|
4,170
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
172,420
|
$
|
296,420
|
$
|
183,350
|
$
|
―
|
$
|
652,190
|
||||||||||
Cost of sales
|
(132,775
|
)
|
(226,945
|
)
|
(132,714
|
)
|
―
|
(492,434
|
)
|
|||||||||||
Gross margin
|
39,645
|
69,475
|
50,636
|
―
|
159,756
|
|||||||||||||||
Selling, general and administrative expenses
|
(21,582
|
)
|
(37,660
|
)
|
(14,018
|
)
|
―
|
(73,260
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
14
|
―
|
107
|
―
|
121
|
|||||||||||||||
Equity income of subsidiaries
|
48,155
|
―
|
―
|
(48,155
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
3,109
|
(2,160
|
)
|
(949
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(11,782
|
)
|
(212
|
)
|
824
|
―
|
(11,170
|
)
|
||||||||||||
Homebuilding pretax income
|
57,559
|
29,443
|
36,600
|
(48,155
|
)
|
75,447
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
2,847
|
―
|
2,847
|
|||||||||||||||
Income before taxes
|
57,559
|
29,443
|
39,447
|
(48,155
|
)
|
78,294
|
||||||||||||||
Provision for income taxes
|
(10,382
|
)
|
(13,931
|
)
|
(6,804
|
)
|
―
|
(31,117
|
)
|
|||||||||||
Net income
|
$
|
47,177
|
$
|
15,512
|
$
|
32,643
|
$
|
(48,155
|
)
|
$
|
47,177
|
Three Months Ended September 30, 2014
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
197,617
|
$
|
246,839
|
$
|
160,393
|
$
|
―
|
$
|
604,849
|
||||||||||
Cost of sales
|
(145,278
|
)
|
(188,601
|
)
|
(111,910
|
)
|
―
|
(445,789
|
)
|
|||||||||||
Gross margin
|
52,339
|
58,238
|
48,483
|
―
|
159,060
|
|||||||||||||||
Selling, general and administrative expenses
|
(24,974
|
)
|
(32,465
|
)
|
(12,725
|
)
|
―
|
(70,164
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
64
|
142
|
351
|
―
|
557
|
|||||||||||||||
Equity income of subsidiaries
|
41,821
|
―
|
―
|
(41,821
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
3,204
|
(2,875
|
)
|
(329
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(1,128
|
)
|
(45
|
)
|
1,104
|
―
|
(69
|
)
|
||||||||||||
Homebuilding pretax income
|
71,326
|
22,995
|
36,884
|
(41,821
|
)
|
89,384
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
2,737
|
―
|
2,737
|
|||||||||||||||
Income before taxes
|
71,326
|
22,995
|
39,621
|
(41,821
|
)
|
92,121
|
||||||||||||||
Provision for income taxes
|
(14,727
|
)
|
(10,169
|
)
|
(10,626
|
)
|
―
|
(35,522
|
)
|
|||||||||||
Net income
|
$
|
56,599
|
$
|
12,826
|
$
|
28,995
|
$
|
(41,821
|
)
|
$
|
56,599
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
500,500
|
$
|
840,513
|
$
|
481,087
|
$
|
―
|
$
|
1,822,100
|
||||||||||
Cost of sales
|
(380,929
|
)
|
(646,798
|
)
|
(348,571
|
)
|
―
|
(1,376,298
|
)
|
|||||||||||
Gross margin
|
119,571
|
193,715
|
132,516
|
―
|
445,802
|
|||||||||||||||
Selling, general and administrative expenses
|
(69,121
|
)
|
(110,934
|
)
|
(39,185
|
)
|
―
|
(219,240
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
36
|
―
|
(417
|
)
|
―
|
(381
|
)
|
|||||||||||||
Equity income of subsidiaries
|
121,691
|
―
|
―
|
(121,691
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
9,507
|
(7,369
|
)
|
(2,138
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(19,223
|
)
|
(435
|
)
|
2,916
|
―
|
(16,742
|
)
|
||||||||||||
Homebuilding pretax income
|
162,461
|
74,977
|
93,692
|
(121,691
|
)
|
209,439
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
6,873
|
―
|
6,873
|
|||||||||||||||
Income before taxes
|
162,461
|
74,977
|
100,565
|
(121,691
|
)
|
216,312
|
||||||||||||||
Provision for income taxes
|
(26,481
|
)
|
(34,502
|
)
|
(19,349
|
)
|
―
|
(80,332
|
)
|
|||||||||||
Net income
|
$
|
135,980
|
$
|
40,475
|
$
|
81,216
|
$
|
(121,691
|
)
|
$
|
135,980
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
576,620
|
$
|
702,868
|
$
|
378,046
|
$
|
―
|
$
|
1,657,534
|
||||||||||
Cost of sales
|
(422,399
|
)
|
(531,224
|
)
|
(267,961
|
)
|
―
|
(1,221,584
|
)
|
|||||||||||
Gross margin
|
154,221
|
171,644
|
110,085
|
―
|
435,950
|
|||||||||||||||
Selling, general and administrative expenses
|
(74,416
|
)
|
(92,599
|
)
|
(29,574
|
)
|
―
|
(196,589
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
(49
|
)
|
170
|
(463
|
)
|
―
|
(342
|
)
|
||||||||||||
Equity income of subsidiaries
|
107,894
|
―
|
―
|
(107,894
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
10,163
|
(8,529
|
)
|
(1,634
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(2,180
|
)
|
(298
|
)
|
2,033
|
―
|
(445
|
)
|
||||||||||||
Homebuilding pretax income
|
195,633
|
70,388
|
80,447
|
(107,894
|
)
|
238,574
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
7,008
|
―
|
7,008
|
|||||||||||||||
Income before taxes
|
195,633
|
70,388
|
87,455
|
(107,894
|
)
|
245,582
|
||||||||||||||
Provision for income taxes
|
(44,412
|
)
|
(27,713
|
)
|
(22,236
|
)
|
―
|
(94,361
|
)
|
|||||||||||
Net income
|
$
|
151,221
|
$
|
42,675
|
$
|
65,219
|
$
|
(107,894
|
)
|
$
|
151,221
|
September 30, 2015
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Cash and equivalents
|
$
|
61,416
|
$
|
9,803
|
$
|
26,635
|
$
|
―
|
$
|
97,854
|
||||||||||
Restricted cash
|
―
|
―
|
37,425
|
―
|
37,425
|
|||||||||||||||
Intercompany receivables
|
1,830,064
|
―
|
105,856
|
(1,935,920
|
)
|
―
|
||||||||||||||
Inventories:
|
||||||||||||||||||||
Owned
|
1,228,171
|
1,319,062
|
1,258,220
|
―
|
3,805,453
|
|||||||||||||||
Not owned
|
14,879
|
16,382
|
16,072
|
―
|
47,333
|
|||||||||||||||
Investments in unconsolidated joint ventures
|
(1,618
|
)
|
(69
|
)
|
123,624
|
―
|
121,937
|
|||||||||||||
Investments in subsidiaries
|
1,065,251
|
―
|
―
|
(1,065,251
|
)
|
―
|
||||||||||||||
Deferred income taxes, net
|
264,667
|
―
|
―
|
(9,370
|
)
|
255,297
|
||||||||||||||
Other assets
|
36,824
|
11,103
|
4,147
|
―
|
52,074
|
|||||||||||||||
Total Homebuilding Assets
|
4,499,654
|
1,356,281
|
1,571,979
|
(3,010,541
|
)
|
4,417,373
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Cash and equivalents
|
―
|
―
|
28,868
|
―
|
28,868
|
|||||||||||||||
Restricted cash
|
―
|
―
|
1,045
|
―
|
1,045
|
|||||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
86,064
|
―
|
86,064
|
|||||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
22,087
|
―
|
22,087
|
|||||||||||||||
Other assets
|
―
|
―
|
7,448
|
(1,676
|
)
|
5,772
|
||||||||||||||
Total Financial Services Assets
|
―
|
―
|
145,512
|
(1,676
|
)
|
143,836
|
||||||||||||||
Total Assets
|
$
|
4,499,654
|
$
|
1,356,281
|
$
|
1,717,491
|
$
|
(3,012,217
|
)
|
$
|
4,561,209
|
|||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Accounts payable
|
$
|
22,040
|
$
|
33,958
|
$
|
26,756
|
$
|
―
|
$
|
82,754
|
||||||||||
Accrued liabilities and intercompany payables
|
193,756
|
923,146
|
921,004
|
(1,828,034
|
)
|
209,872
|
||||||||||||||
Revolving credit facility
|
268,700
|
―
|
―
|
―
|
268,700
|
|||||||||||||||
Secured project debt, other notes payable and
|
||||||||||||||||||||
intercompany loans
|
103,619
|
―
|
4,131
|
(101,895
|
)
|
5,855
|
||||||||||||||
Senior notes payable
|
2,104,212
|
―
|
―
|
―
|
2,104,212
|
|||||||||||||||
Total Homebuilding Liabilities
|
2,692,327
|
957,104
|
951,891
|
(1,929,929
|
)
|
2,671,393
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
20,667
|
(17,037
|
)
|
3,630
|
||||||||||||||
Mortgage credit facilities
|
―
|
―
|
78,859
|
―
|
78,859
|
|||||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
99,526
|
(17,037
|
)
|
82,489
|
||||||||||||||
Total Liabilities
|
2,692,327
|
957,104
|
1,051,417
|
(1,946,966
|
)
|
2,753,882
|
||||||||||||||
Equity:
|
||||||||||||||||||||
Total Equity
|
1,807,327
|
399,177
|
666,074
|
(1,065,251
|
)
|
1,807,327
|
||||||||||||||
Total Liabilities and Equity
|
$
|
4,499,654
|
$
|
1,356,281
|
$
|
1,717,491
|
$
|
(3,012,217
|
)
|
$
|
4,561,209
|
December 31, 2014
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Cash and equivalents
|
$
|
133,304
|
$
|
1,061
|
$
|
46,063
|
$
|
―
|
$
|
180,428
|
||||||||||
Restricted cash
|
―
|
―
|
38,222
|
―
|
38,222
|
|||||||||||||||
Intercompany receivables
|
1,637,226
|
―
|
184,772
|
(1,821,998
|
)
|
―
|
||||||||||||||
Inventories:
|
||||||||||||||||||||
Owned
|
1,059,197
|
1,234,233
|
961,774
|
―
|
3,255,204
|
|||||||||||||||
Not owned
|
17,360
|
28,520
|
39,273
|
―
|
85,153
|
|||||||||||||||
Investments in unconsolidated joint ventures
|
(1,653
|
)
|
497
|
51,267
|
―
|
50,111
|
||||||||||||||
Investments in subsidiaries
|
957,933
|
―
|
―
|
(957,933
|
)
|
―
|
||||||||||||||
Deferred income taxes, net
|
283,890
|
―
|
―
|
(7,488
|
)
|
276,402
|
||||||||||||||
Other assets
|
42,224
|
11,234
|
8,139
|
―
|
61,597
|
|||||||||||||||
Total Homebuilding Assets
|
4,129,481
|
1,275,545
|
1,329,510
|
(2,787,419
|
)
|
3,947,117
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Cash and equivalents
|
―
|
―
|
31,965
|
―
|
31,965
|
|||||||||||||||
Restricted cash
|
―
|
―
|
1,295
|
―
|
1,295
|
|||||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
174,420
|
―
|
174,420
|
|||||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
14,380
|
―
|
14,380
|
|||||||||||||||
Other assets
|
―
|
―
|
6,980
|
(1,737
|
)
|
5,243
|
||||||||||||||
Total Financial Services Assets
|
―
|
―
|
229,040
|
(1,737
|
)
|
227,303
|
||||||||||||||
Total Assets
|
$
|
4,129,481
|
$
|
1,275,545
|
$
|
1,558,550
|
$
|
(2,789,156
|
)
|
$
|
4,174,420
|
|||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Accounts payable
|
$
|
13,856
|
$
|
16,202
|
$
|
15,027
|
$
|
―
|
$
|
45,085
|
||||||||||
Accrued liabilities and intercompany payables
|
206,731
|
868,922
|
783,324
|
(1,635,194
|
)
|
223,783
|
||||||||||||||
Secured project debt, other notes payable and
|
||||||||||||||||||||
intercompany loans
|
100,813
|
―
|
4,689
|
(100,813
|
)
|
4,689
|
||||||||||||||
Senior notes payable
|
2,131,393
|
―
|
―
|
―
|
2,131,393
|
|||||||||||||||
Total Homebuilding Liabilities
|
2,452,793
|
885,124
|
803,040
|
(1,736,007
|
)
|
2,404,950
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
18,585
|
(15,216
|
)
|
3,369
|
||||||||||||||
Mortgage credit facilities
|
―
|
―
|
169,413
|
(80,000
|
)
|
89,413
|
||||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
187,998
|
(95,216
|
)
|
92,782
|
||||||||||||||
Total Liabilities
|
2,452,793
|
885,124
|
991,038
|
(1,831,223
|
)
|
2,497,732
|
||||||||||||||
Equity:
|
||||||||||||||||||||
Total Equity
|
1,676,688
|
390,421
|
567,512
|
(957,933
|
)
|
1,676,688
|
||||||||||||||
Total Liabilities and Equity
|
$
|
4,129,481
|
$
|
1,275,545
|
$
|
1,558,550
|
$
|
(2,789,156
|
)
|
$
|
4,174,420
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(116,827
|
)
|
$
|
(14,645
|
)
|
$
|
(84,358
|
)
|
$
|
―
|
$
|
(215,830
|
)
|
||||||
Cash Flows From Investing Activities:
|
||||||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
―
|
―
|
(83,288
|
)
|
―
|
(83,288
|
)
|
|||||||||||||
Distributions of capital from unconsolidated homebuilding joint ventures
|
―
|
―
|
10,289
|
―
|
10,289
|
|||||||||||||||
Loan to subsidiaries
|
―
|
―
|
80,000
|
(80,000
|
)
|
―
|
||||||||||||||
Other investing activities
|
(2,308
|
)
|
(1,605
|
)
|
(7,803
|
)
|
―
|
(11,716
|
)
|
|||||||||||
Net cash provided by (used in) investing activities
|
(2,308
|
)
|
(1,605
|
)
|
(802
|
)
|
(80,000
|
)
|
(84,715
|
)
|
||||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||||||
Change in restricted cash
|
―
|
―
|
1,047
|
―
|
1,047
|
|||||||||||||||
Borrowings from revolving credit facility
|
491,400
|
―
|
―
|
―
|
491,400
|
|||||||||||||||
Principal payments on revolving credit facility
|
(222,700
|
)
|
―
|
―
|
―
|
(222,700
|
)
|
|||||||||||||
Principal payments on secured project debt and other notes payable
|
―
|
―
|
(569
|
)
|
―
|
(569
|
)
|
|||||||||||||
Principal payments on senior notes payable
|
(29,789
|
)
|
―
|
―
|
―
|
(29,789
|
)
|
|||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
(90,554
|
)
|
80,000
|
(10,554
|
)
|
|||||||||||||
(Contributions to) distributions from Corporate and subsidiaries
|
14,373
|
(31,719
|
)
|
17,346
|
―
|
―
|
||||||||||||||
Repurchase of common stock
|
(22,073
|
)
|
―
|
―
|
―
|
(22,073
|
)
|
|||||||||||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
(461
|
)
|
―
|
―
|
―
|
(461
|
)
|
|||||||||||||
Excess tax benefits from share-based payment arrangements
|
8,573
|
―
|
―
|
―
|
8,573
|
|||||||||||||||
Intercompany advances, net
|
(192,076
|
)
|
56,711
|
135,365
|
―
|
―
|
||||||||||||||
Net cash provided by (used in) financing activities
|
47,247
|
24,992
|
62,635
|
80,000
|
214,874
|
|||||||||||||||
Net increase (decrease) in cash and equivalents
|
(71,888
|
)
|
8,742
|
(22,525
|
)
|
―
|
(85,671
|
)
|
||||||||||||
Cash and equivalents at beginning of period
|
133,304
|
1,061
|
78,028
|
―
|
212,393
|
|||||||||||||||
Cash and equivalents at end of period
|
$
|
61,416
|
$
|
9,803
|
$
|
55,503
|
$
|
―
|
$
|
126,722
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
14,398
|
$
|
(174,601
|
)
|
$
|
(83,784
|
)
|
$
|
(14,559
|
)
|
$
|
(258,546
|
)
|
||||||
Cash Flows From Investing Activities:
|
||||||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
144
|
2
|
(8,094
|
)
|
―
|
(7,948
|
)
|
|||||||||||||
Distributions of capital from unconsolidated homebuilding joint ventures
|
227
|
229
|
17,554
|
―
|
18,010
|
|||||||||||||||
Net cash paid for acquisitions
|
(35,685
|
)
|
―
|
2,277
|
―
|
(33,408
|
)
|
|||||||||||||
Loan to parent
|
―
|
―
|
(190,000
|
)
|
190,000
|
―
|
||||||||||||||
Other investing activities
|
(1,367
|
)
|
(1,108
|
)
|
491
|
―
|
(1,984
|
)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(36,681
|
)
|
(877
|
)
|
(177,772
|
)
|
190,000
|
(25,330
|
)
|
|||||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||||||
Change in restricted cash
|
―
|
―
|
(15,567
|
)
|
―
|
(15,567
|
)
|
|||||||||||||
Principal payments on secured project debt and other notes payable
|
―
|
―
|
(1,399
|
)
|
―
|
(1,399
|
)
|
|||||||||||||
Principal payments on senior notes payable
|
(4,971
|
)
|
―
|
―
|
―
|
(4,971
|
)
|
|||||||||||||
Payment of debt issuance costs
|
(2,387
|
)
|
―
|
―
|
―
|
(2,387
|
)
|
|||||||||||||
Loan from subsidiary
|
190,000
|
―
|
―
|
(190,000
|
)
|
―
|
||||||||||||||
Net proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
(36,169
|
)
|
―
|
(36,169
|
)
|
|||||||||||||
(Contributions to) distributions from Corporate and subsidiaries
|
3,650
|
―
|
(3,650
|
)
|
―
|
―
|
||||||||||||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
5,786
|
―
|
―
|
―
|
5,786
|
|||||||||||||||
Excess tax benefits from share-based payment arrangements
|
960
|
―
|
―
|
―
|
960
|
|||||||||||||||
Intercompany advances, net
|
(345,307
|
)
|
175,834
|
169,473
|
―
|
―
|
||||||||||||||
Net cash provided by (used in) financing activities
|
(152,269
|
)
|
175,834
|
112,688
|
(190,000
|
)
|
(53,747
|
)
|
||||||||||||
Net increase (decrease) in cash and equivalents
|
(174,552
|
)
|
356
|
(148,868
|
)
|
(14,559
|
)
|
(337,623
|
)
|
|||||||||||
Cash and equivalents at beginning of period
|
175,289
|
494
|
187,508
|
―
|
363,291
|
|||||||||||||||
Cash and equivalents at end of period
|
$
|
737
|
$
|
850
|
$
|
38,640
|
$
|
(14,559
|
)
|
$
|
25,668
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
626,008
|
$
|
603,788
|
$
|
1,789,065
|
$
|
1,642,412
|
||||||||
Land sale revenues
|
26,182
|
1,061
|
33,035
|
15,122
|
||||||||||||
Total revenues
|
652,190
|
604,849
|
1,822,100
|
1,657,534
|
||||||||||||
Cost of home sales
|
(467,358
|
)
|
(444,898
|
)
|
(1,346,108
|
)
|
(1,207,339
|
)
|
||||||||
Cost of land sales
|
(25,076
|
)
|
(891
|
)
|
(30,190
|
)
|
(14,245
|
)
|
||||||||
Total cost of sales
|
(492,434
|
)
|
(445,789
|
)
|
(1,376,298
|
)
|
(1,221,584
|
)
|
||||||||
Gross margin
|
159,756
|
159,060
|
445,802
|
435,950
|
||||||||||||
Gross margin percentage
|
24.5
|
%
|
26.3
|
%
|
24.5
|
%
|
26.3
|
%
|
||||||||
Selling, general and administrative expenses
|
(73,260
|
)
|
(70,164
|
)
|
(219,240
|
)
|
(196,589
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
121
|
557
|
(381
|
)
|
(342
|
)
|
||||||||||
Other income (expense)
|
(11,170
|
)
|
(69
|
)
|
(16,742
|
)
|
(445
|
)
|
||||||||
Homebuilding pretax income
|
75,447
|
89,384
|
209,439
|
238,574
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
6,130
|
6,179
|
17,765
|
17,275
|
||||||||||||
Expenses
|
(4,079
|
)
|
(3,673
|
)
|
(12,626
|
)
|
(10,873
|
)
|
||||||||
Other income
|
796
|
231
|
1,734
|
606
|
||||||||||||
Financial services pretax income
|
2,847
|
2,737
|
6,873
|
7,008
|
||||||||||||
Income before taxes
|
78,294
|
92,121
|
216,312
|
245,582
|
||||||||||||
Provision for income taxes
|
(31,117
|
)
|
(35,522
|
)
|
(80,332
|
)
|
(94,361
|
)
|
||||||||
Net income
|
47,177
|
56,599
|
135,980
|
151,221
|
||||||||||||
Less: Net income allocated to preferred shareholder
|
(11,342
|
)
|
(13,511
|
)
|
(32,818
|
)
|
(36,165
|
)
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(93
|
)
|
(77
|
)
|
(274
|
)
|
(211
|
)
|
||||||||
Net income available to common stockholders
|
$
|
35,742
|
$
|
43,011
|
$
|
102,888
|
$
|
114,845
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
0.65
|
$
|
0.77
|
$
|
1.87
|
$
|
2.06
|
||||||||
Diluted
|
$
|
0.59
|
$
|
0.70
|
$
|
1.71
|
$
|
1.87
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
55,345,443
|
55,909,542
|
55,059,683
|
55,772,603
|
||||||||||||
Diluted
|
62,292,524
|
63,423,385
|
62,152,754
|
63,338,361
|
||||||||||||
Weighted average additional common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
17,562,557
|
17,562,557
|
17,562,557
|
17,562,557
|
||||||||||||
Total weighted average diluted common shares outstanding
|
||||||||||||||||
if preferred shares converted to common shares
|
79,855,081
|
80,985,942
|
79,715,311
|
80,900,918
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(104,633
|
)
|
$
|
(115,034
|
)
|
$
|
(215,830
|
)
|
$
|
(258,546
|
)
|
||||
Net cash provided by (used in) investing activities
|
$
|
(60,675
|
)
|
$
|
434
|
$
|
(84,715
|
)
|
$
|
(25,330
|
)
|
|||||
Net cash provided by (used in) financing activities
|
$
|
203,717
|
$
|
(7,271
|
)
|
$
|
214,874
|
$
|
(53,747
|
)
|
||||||
Adjusted Homebuilding EBITDA (1)
|
$
|
119,553
|
$
|
127,371
|
$
|
333,844
|
$
|
351,697
|
(1)
|
Adjusted Homebuilding EBITDA means net income (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense, (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) gain (loss) on early extinguishment of debt, (f) homebuilding depreciation and amortization, including amortization of capitalized model costs, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiaries. Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently. We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of 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
September 30, |
LTM Ended
September 30, |
||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(104,633
|
)
|
$
|
(115,034
|
)
|
$
|
(215,830
|
)
|
$
|
(258,546
|
)
|
$
|
(319,681
|
)
|
$
|
(286,366
|
)
|
||||||
Add:
|
||||||||||||||||||||||||
Provision (benefit) for income taxes, net of
|
||||||||||||||||||||||||
deferred component
|
28,183
|
53
|
28,200
|
(113
|
)
|
63,414
|
367
|
|||||||||||||||||
Homebuilding interest amortized to cost of
|
||||||||||||||||||||||||
sales and interest expense
|
33,323
|
28,959
|
92,524
|
83,758
|
131,878
|
116,667
|
||||||||||||||||||
Excess tax benefits from share-based
|
||||||||||||||||||||||||
payment arrangements
|
2,210
|
960
|
8,573
|
960
|
21,017
|
960
|
||||||||||||||||||
Less:
|
||||||||||||||||||||||||
Income from financial services subsidiaries
|
2,847
|
2,506
|
6,873
|
6,402
|
9,345
|
8,620
|
||||||||||||||||||
Depreciation and amortization from financial
|
||||||||||||||||||||||||
services subsidiaries
|
19
|
35
|
81
|
102
|
117
|
134
|
||||||||||||||||||
Loss on disposal of property and equipment
|
7
|
5
|
41
|
6
|
46
|
7
|
||||||||||||||||||
Net changes in operating assets and liabilities:
|
||||||||||||||||||||||||
Mortgage loans held for sale
|
(23,178
|
)
|
(10,534
|
)
|
(88,360
|
)
|
(53,108
|
)
|
17,586
|
(6,386
|
)
|
|||||||||||||
Inventories-owned
|
179,752
|
237,201
|
521,646
|
562,812
|
623,261
|
669,505
|
||||||||||||||||||
Inventories-not owned
|
9,551
|
5,090
|
21,612
|
19,884
|
34,755
|
31,503
|
||||||||||||||||||
Other assets
|
(2,985
|
)
|
1,537
|
(8,862
|
)
|
14,645
|
(28,036
|
)
|
8,863
|
|||||||||||||||
Accounts payable
|
(3,035
|
)
|
(8,604
|
)
|
(37,669
|
)
|
(14,753
|
)
|
(32,230
|
)
|
(21,223
|
)
|
||||||||||||
Accrued liabilities
|
3,238
|
(9,711
|
)
|
19,005
|
2,668
|
(17,886
|
)
|
(12,207
|
)
|
|||||||||||||||
Adjusted Homebuilding EBITDA
|
$
|
119,553
|
$
|
127,371
|
$
|
333,844
|
$
|
351,697
|
$
|
484,570
|
$
|
492,922
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30, |
||||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
Homebuilding revenues:
|
|||||||||||||||||||||
Southeast
|
|
$
|
211,759
|
$
|
171,091
|
24%
|
|
$
|
556,330
|
$
|
474,601
|
17%
|
|||||||||
Southwest
|
|
155,595
|
128,916
|
21%
|
|
461,304
|
329,930
|
40%
|
|||||||||||||
West
|
|
|
284,836
|
|
304,842
|
(7%)
|
|
|
804,466
|
|
853,003
|
(6%)
|
|||||||||
Total homebuilding revenues
|
|
$
|
652,190
|
$
|
604,849
|
8%
|
|
$
|
1,822,100
|
$
|
1,657,534
|
10%
|
|||||||||
|
|
||||||||||||||||||||
Homebuilding pretax income:
|
|
|
|||||||||||||||||||
Southeast
|
|
$
|
19,379
|
$
|
16,312
|
19%
|
|
$
|
44,909
|
$
|
45,051
|
(0%)
|
|||||||||
Southwest
|
|
16,552
|
12,407
|
33%
|
|
49,817
|
32,738
|
52%
|
|||||||||||||
West
|
|
|
39,516
|
|
60,665
|
(35%)
|
|
|
114,713
|
|
160,785
|
(29%)
|
|||||||||
Total homebuilding pretax income
|
|
$
|
75,447
|
$
|
89,384
|
(16%)
|
|
$
|
209,439
|
$
|
238,574
|
(12%)
|
|||||||||
|
|
||||||||||||||||||||
Homebuilding pretax income as a percentage
|
|
|
|||||||||||||||||||
of homebuilding revenues:
|
|||||||||||||||||||||
Southeast
|
|
9.1%
|
9.5%
|
(0.4%)
|
|
8.1%
|
9.5%
|
(1.4%)
|
|||||||||||||
Southwest
|
|
10.6%
|
9.6%
|
1.0%
|
|
10.8%
|
9.9%
|
0.9%
|
|||||||||||||
West
|
|
|
13.9%
|
|
19.9%
|
(6.0%)
|
|
|
14.3%
|
|
18.9%
|
(4.6%)
|
|||||||||
Total homebuilding pretax income percentage
|
|
|
11.6%
|
|
14.8%
|
(3.2%)
|
|
|
11.5%
|
|
14.4%
|
(2.9%)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|||||||||||
New homes delivered:
|
|
|||||||||||||||
Southeast
|
|
467
|
472
|
(1%)
|
1,328
|
1,363
|
(3%)
|
|||||||||
Southwest
|
|
282
|
272
|
4%
|
858
|
711
|
21%
|
|||||||||
West
|
|
416
|
506
|
(18%)
|
1,256
|
1,407
|
(11%)
|
|||||||||
Total
|
|
1,165
|
1,250
|
(7%)
|
3,442
|
3,481
|
(1%)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Average selling prices of homes delivered:
|
|
||||||||||||||||||
Southeast
|
|
$
|
437
|
$
|
360
|
21%
|
$
|
411
|
$
|
344
|
19%
|
||||||||
Southwest
|
|
552
|
474
|
16%
|
533
|
463
|
15%
|
||||||||||||
West
|
|
641
|
602
|
6%
|
625
|
600
|
4%
|
||||||||||||
Total
|
|
$
|
537
|
$
|
483
|
11%
|
$
|
520
|
$
|
472
|
10%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
2015
|
2014
|
% Change
|
% Absorption Change (1)
|
2015
|
2014
|
% Change
|
% Absorption Change (1)
|
||||||||||||
Net new orders (2):
|
|
||||||||||||||||||
Southeast
|
|
429
|
446
|
(4%)
|
(26%)
|
1,511
|
1,446
|
4%
|
(12%)
|
||||||||||
Southwest
|
|
325
|
245
|
33%
|
30%
|
1,123
|
967
|
16%
|
8%
|
||||||||||
West
|
|
572
|
463
|
24%
|
10%
|
1,830
|
1,576
|
16%
|
5%
|
||||||||||
Total
|
|
1,326
|
1,154
|
15%
|
(1%)
|
4,464
|
3,989
|
12%
|
(1%)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||||||
Average selling prices of net new orders:
|
|
(Dollars in thousands)
|
|||||||||||||||||
Southeast
|
|
$
|
463
|
$
|
388
|
19%
|
$
|
442
|
$
|
371
|
19%
|
||||||||
Southwest
|
|
559
|
480
|
16%
|
523
|
463
|
13%
|
||||||||||||
West
|
|
679
|
601
|
13%
|
656
|
591
|
11%
|
||||||||||||
Total
|
|
$
|
580
|
$
|
493
|
18%
|
$
|
550
|
$
|
480
|
15%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
||||||||||
Average number of selling communities during the period:
|
|
||||||||||||||
Southeast
|
|
96
|
74
|
30%
|
88
|
74
|
19%
|
||||||||
Southwest
|
|
54
|
53
|
2%
|
54
|
50
|
8%
|
||||||||
West
|
|
65
|
58
|
12%
|
63
|
57
|
11%
|
||||||||
Total
|
|
215
|
185
|
16%
|
205
|
181
|
13%
|
(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 during such period of existing contracts for the purchase of homes.
|
At September 30,
|
|||||||||||||||||||||
|
2015
|
2014
|
% Change
|
||||||||||||||||||
|
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||
Backlog ($ in thousands): | |||||||||||||||||||||
Southeast
|
|
954
|
$
|
511,449
|
884
|
$
|
398,946
|
8%
|
28%
|
||||||||||||
Southwest
|
|
811
|
438,753
|
654
|
324,358
|
24%
|
35%
|
||||||||||||||
West
|
|
968
|
705,294
|
670
|
402,821
|
44%
|
75%
|
||||||||||||||
Total
|
|
|
2,733
|
$
|
1,655,496
|
|
2,208
|
$
|
1,126,125
|
|
24%
|
|
47%
|
At September 30,
|
|||||||||
2015
|
2014
|
% Change
|
|||||||
Homesites owned and controlled:
|
|
||||||||
Southeast
|
|
16,098
|
16,961
|
(5%)
|
|||||
Southwest
|
|
6,537
|
7,292
|
(10%)
|
|||||
West
|
|
12,880
|
12,054
|
7%
|
|||||
Total (including joint ventures)
|
|
35,515
|
36,307
|
(2%)
|
|||||
|
|||||||||
Homesites owned
|
|
28,343
|
28,937
|
(2%)
|
|||||
Homesites optioned or subject to contract
|
|
5,792
|
7,172
|
(19%)
|
|||||
Joint venture homesites (1)
|
|
1,380
|
198
|
597%
|
|||||
Total (including joint ventures)
|
|
35,515
|
36,307
|
(2%)
|
|||||
|
|||||||||
Homesites owned:
|
|
||||||||
Raw lots
|
|
6,916
|
6,745
|
3%
|
|||||
Homesites under development
|
|
7,717
|
9,379
|
(18%)
|
|||||
Finished homesites
|
|
7,674
|
6,448
|
19%
|
|||||
Under construction or completed homes
|
|
4,323
|
3,594
|
20%
|
|||||
Held for sale
|
|
1,713
|
2,771
|
(38%)
|
|||||
Total
|
|
28,343
|
28,937
|
(2%)
|
(1)
|
Joint venture homesites represent our expected share of land development joint venture homesites and all of the homesites of our homebuilding joint ventures.
|
At September 30,
|
||||||||||||
2015
|
2014
|
% Change
|
||||||||||
Homes under construction:
|
|
|||||||||||
Homes under construction (excluding specs)
|
|
1,914
|
1,520
|
26%
|
||||||||
Speculative homes under construction
|
|
1,338
|
1,030
|
30%
|
||||||||
Total homes under construction
|
|
3,252
|
2,550
|
28%
|
||||||||
Completed homes:
|
|
|||||||||||
Completed and unsold homes (excluding models)
|
|
377
|
406
|
(7%)
|
||||||||
Completed and under contract (excluding models)
|
|
287
|
315
|
(9%)
|
||||||||
Model homes
|
|
407
|
323
|
26%
|
||||||||
Total completed homes
|
|
1,071
|
1,044
|
3%
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||
(Dollars in thousands)
|
||||||||||||||
Total Originations:
|
|
|||||||||||||
Loans
|
|
691
|
726
|
2,102
|
2,016
|
|||||||||
Principal
|
|
$251,163
|
$245,114
|
$766,326
|
$663,068
|
|||||||||
Capture Rate
|
|
72%
|
77%
|
74%
|
76%
|
|||||||||
Loans Sold to Third Parties:
|
|
|||||||||||||
Loans
|
|
729
|
755
|
2,354
|
2,186
|
|||||||||
Principal
|
|
$275,417
|
$253,678
|
$842,642
|
$713,716
|
|||||||||
Mortgage Loan Origination Product Mix:
|
|
|||||||||||||
FHA loans
|
|
8%
|
9%
|
8%
|
9%
|
|||||||||
Other government loans (VA & USDA)
|
|
9%
|
11%
|
8%
|
10%
|
|||||||||
Total government loans
|
|
17%
|
20%
|
16%
|
19%
|
|||||||||
Conforming loans
|
|
72%
|
71%
|
72%
|
74%
|
|||||||||
Jumbo loans
|
|
11%
|
9%
|
12%
|
7%
|
|||||||||
100%
|
100%
|
100%
|
100%
|
|||||||||||
Loan Type:
|
|
|||||||||||||
Fixed
|
|
89%
|
92%
|
91%
|
92%
|
|||||||||
ARM
|
|
11%
|
8%
|
9%
|
8%
|
|||||||||
Credit Quality:
|
|
|||||||||||||
Avg. FICO score
|
|
753
|
751
|
752
|
752
|
|||||||||
Other Data:
|
|
|||||||||||||
Avg. combined LTV ratio
|
|
79%
|
80%
|
79%
|
81%
|
|||||||||
Full documentation loans
|
|
100%
|
100%
|
100%
|
100%
|
· land acquisition
· homebuilder acquisitions
· construction and development
· operating expenses
|
· principal and interest payments on debt
· cash collateralization
· stock repurchases
|
· internally generated funds
· bank revolving credit and term loans
· land option contracts and seller notes
· public and private sales of our equity
· public and private note offerings
|
· joint venture financings
· assessment district bond financings
· letters of credit and surety bonds
· mortgage credit facilities
· tax refunds
|
Covenant and Other Requirements
|
Actual at
September 30, 2015
|
Covenant
Requirements at
September 30, 2015
|
||||
(Dollars in millions) | ||||||
Consolidated Tangible Net Worth (1)
|
$1,807.3 | ≥ | $1,051.2 | |||
Leverage Ratio:
|
||||||
Net Homebuilding Debt to Adjusted Consolidated Tangible Net Worth Ratio (2)
|
1.27 | ≤ | 2.00 | |||
Land Not Under Development Ratio:
|
||||||
Land Not Under Development to Consolidated Tangible Net Worth Ratio (3) | 0.20 | ≤ |
1.00
|
|||
Liquidity or Interest Coverage Ratio (4): | ||||||
Liquidity | $89.0 | ≥ | $155.2 | |||
EBITDA (as defined in the Revolving Facility) to Consolidated Interest Incurred (5) | 2.61 | ≥ | 1.25 | |||
Investments in Homebuilding Joint Ventures or Consolidated Homebuilding Non-Guarantor Entities (6) | $390.3 | ≤ | $712.5 | |||
Actual/Permitted Borrowings under the Revolving Facility (7) | $268.7 | ≤ | $450.0 |
(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)
|
Net Homebuilding Debt represents Consolidated Homebuilding Debt reduced for certain cash balances in excess of $5 million.
|
(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 incurred for the previous four fiscal quarters or (ii) satisfy a minimum interest coverage ratio. At September 30, 2015, we met the condition described in clause (ii).
|
(5)
|
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, 2015, our availability under the Revolving Facility was $181.3 million.
|
September 30, 2015
|
||||
(Dollars in thousands)
|
||||
|
||||
10¾% Senior Notes due September 2016
|
|
$
|
280,000
|
|
8⅜% Senior Notes due May 2018
|
|
575,000
|
||
8⅜% Senior Notes due January 2021
|
|
400,000
|
||
6¼% Senior Notes due December 2021
|
|
300,000
|
||
5⅞% Senior Notes due November 2024
|
|
300,000
|
||
1¼% Convertible Senior Notes due August 2032
|
|
|
253,000
|
|
$
|
2,108,000
|
Covenant Requirements
|
Actual at
September 30, 2015
|
Covenant
Requirements at
September 30, 2015
|
||||
Total Leverage Ratio:
|
||||||
Indebtedness to Consolidated Tangible Net Worth Ratio
|
1.44
|
≤
|
2.25
|
|||
Interest Coverage Ratio:
|
||||||
EBITDA (as defined in the indenture) to Consolidated Interest Incurred
|
2.45
|
≥
|
2.00
|
October 1, 2015
|
||||
(Dollars in thousands)
|
||||
|
||||
8.4% Senior Notes due May 2017
|
|
$
|
230,000
|
|
1.625% Convertible Senior Notes due May 2018
|
|
225,000
|
||
0.25% Convertible Senior Notes due June 2019
|
|
267,500
|
||
6.625% Convertible Senior Notes due May 2020
|
|
300,000
|
||
5.375% Convertible Senior Notes due October 2022
|
|
250,000
|
||
$
|
1,272,500
|
· accessing larger or highly desirable lot positions
· establishing strategic alliances
· leveraging our capital base
|
· expanding our market opportunities
· managing the financial and market risk associated with land holdings
|
·
|
Segment reporting;
|
·
|
Inventories and impairments;
|
·
|
Stock-based compensation;
|
·
|
Homebuilding revenue and cost of sales;
|
·
|
Variable interest entities;
|
·
|
Unconsolidated homebuilding and land development joint ventures;
|
·
|
Warranty accruals;
|
·
|
Insurance and litigation accruals; and
|
·
|
Income taxes.
|
·
|
our strategy;
|
·
|
housing market and economic conditions and trends in the geographic markets in which we operate;
|
·
|
our land acquisition strategy and our sources of funds relating thereto;
|
·
|
trends in new home deliveries, orders, backlog, home pricing, leverage and gross margins;
|
·
|
litigation outcomes and related costs;
|
·
|
amounts remaining to complete relating to existing surety bonds;
|
·
|
our interest rate hedging and derivatives strategy; and
|
·
|
the impact of recent accounting standards.
|
·
|
integration risk relating to our merger with Ryland:
|
·
|
the market value and availability of land;
|
·
|
our dependence on the California market;
|
·
|
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;
|
·
|
adverse economic developments that negatively impact the demand for homes;
|
·
|
high cancellation rates;
|
·
|
the risk of our longer term acquisition strategy;
|
·
|
the cost and availability of labor and materials;
|
·
|
our ability to obtain suitable bonding for development of our communities;
|
·
|
adverse weather conditions and natural disasters;
|
·
|
drought conditions in California;
|
·
|
litigation and warranty claims;
|
·
|
the inherent danger of our building sites;
|
·
|
our reliance on subcontractors and their ability to construct our homes;
|
·
|
risks relating to our mortgage financing activities, including our obligation to repurchase loans we previously sold in the secondary market;
|
·
|
our dependence on key employees;
|
·
|
risks relating to acquisitions, including integration risks;
|
·
|
our failure to maintain the security of our electronic and other confidential information;
|
·
|
the adverse effects of negative media publicity;
|
·
|
government regulation, including environmental, building, climate change, worker health, safety, mortgage lending, title insurance, zoning and land use regulation;
|
·
|
increased regulation of the mortgage industry;
|
·
|
changes to tax laws that make homeownership more expensive;
|
·
|
the impact of "slow growth", "no growth" and similar initiatives;
|
·
|
our ability to obtain additional capital when needed and at an acceptable cost;
|
·
|
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;
|
·
|
the amount of, and our ability to repay, renew or extend, our outstanding debt and its impact on our operations and our ability to obtain financing;
|
·
|
our ability to generate cash, including to service our debt;
|
·
|
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 ventures, 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;
|
·
|
the influence of our principal stockholder;
|
·
|
the provisions of our charter, bylaws, stockholders' rights agreements and debt covenants that could prevent a third party from acquiring us or limit the price investors might be willing to pay for shares of our common stock; 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, 2014.
|
·
|
we may be unable to integrate successfully the businesses and workforces of the Company and Ryland and many of the anticipated benefits of combining the Company and Ryland may not be realized;
|
·
|
we may lose management personnel and other key employees and be unable to attract and retain such personnel and employees;
|
·
|
management's attention and other Company resources may be focused on integration activities instead of on day-to-day management activities, including pursuing other opportunities beneficial to the Company;
|
·
|
we may incur substantial unexpected integration related costs; and
|
·
|
launching branding or rebranding initiatives may involve substantial costs and may not be favorably received by customers.
|
3.1 | Third Amended and Restated Certificate of Incorporation of CalAtlantic Group, Inc. dated as of October 1, 2015, incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
3.2 | Amended and Restated Bylaws of CalAtlantic Group, Inc. dated as of October 1, 2015, incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
3.3 | Certificate of Designations of CalAtlantic Group, Inc. dated as of October 1, 2015, incorporated by reference to Exhibit 3.3 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.1 | Indenture dated as of June 28, 1996, between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as successor to JPMorgan Chase Bank, N.A., formerly known as The Chase Manhattan Bank, incorporated by reference to Exhibit 4.1 to the Post-Effective Amendment No. 1 to the Form S-3 Registration Statement filed by The Ryland Group, Inc. on May 15, 1996 (No. 33-50933). |
4.2 | Fifth Supplemental Indenture dated as of May 5, 2009, by and among The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on May 5, 2009 (File No. 001-08029). |
4.3 | Sixth Supplemental Indenture dated as of April 29, 2010, by and among The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on April 29, 2010 (File No. 001-08029). |
4.4 | Seventh Supplemental Indenture dated as of May 16, 2012 by and among The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on May 16, 2012 (File No. 001-08029). |
4.5 | Eighth Supplemental Indenture dated as of September 21, 2012, by and among The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on September 21, 2012 (File No. 001-08029). |
4.6 | Ninth Supplemental Indenture dated as of May 20, 2013, by and among The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on May 20, 2013 (File No. 001-08029). |
4.7 | Tenth Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.8 | Eleventh Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.3 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.9 | Twelfth Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.4 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.10 | Thirteenth Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.5 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.11 | Fourteenth Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.6 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.12 | Fifteenth Supplemental Indenture to the Indenture, dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.7 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.13 | Second Supplemental Indenture to the Indenture, dated as of September 17, 2009, by and between Standard Pacific Escrow LLC (obligations assumed by the Registrant pursuant to the First Supplemental Indenture) and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.8 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.14 | Twenty-Second Supplemental Indenture to the Indenture, dated as of April 1, 1999, by and between the Registrant and The Bank of New York Mellon Trust Company N.A., as trustee, incorporated by reference to Exhibit 4.9 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.15 | Twenty-Third Supplemental Indenture to the Indenture, dated as of April 1, 1999, by and between the Registrant and The Bank of New York Mellon Trust Company N.A., as trustee, incorporated by reference to Exhibit 4.10 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.16 | Twenty-Fourth Supplemental Indenture to the Indenture, dated as of April 1, 1999, by and between the Registrant and The Bank of New York Mellon Trust Company N.A., as trustee, incorporated by reference to Exhibit 4.11 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.17 | Twenty-Fifth Supplemental Indenture to the Indenture, dated as of April 1, 1999, by and between the Registrant and The Bank of New York Mellon Trust Company N.A., as trustee, incorporated by reference to Exhibit 4.12 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.18 | Twenty-Sixth Supplemental Indenture to the Indenture, dated as of April 1, 1999, by and between the Registrant and The Bank of New York Mellon Trust Company N.A., as trustee, incorporated by reference to Exhibit 4.13 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.19 | Guarantee of 8.4% Senior Notes due 2017 issued pursuant to the Indenture dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.14 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.20 | Guarantee of 0.25% Convertible Senior Notes due 2019 issued pursuant to the Indenture dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.15 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.21 | Guarantee of 1.625% Convertible Senior Notes due 2018 issued pursuant to the Indenture dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.16 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.22 | Guarantee of 10.75% Senior Notes due 2016 issued pursuant to the Indenture dated as of September 17, 2009, by and between Standard Pacific Escrow LLC (obligations assumed by the Registrant pursuant to the First Supplemental Indenture) and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.17 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.23 | Guarantee of 5.37% Senior Notes due 2022 issued pursuant to the Indenture dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.18 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
4.24 | Guarantee of 6.625% Senior Notes due 2020 issued pursuant to the Indenture dated as of June 28, 1996, by and between The Ryland Group, Inc. and The Bank of New York Mellon Trust Company, N.A. as trustee, incorporated by reference to Exhibit 4.19 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
10.1 | Credit Agreement, dated as of October 5, 2015, among the Registrant, the lenders or other financial institutions that are parties as lenders, and JPMorgan Chase Bank, N.A., as administrative agent , incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed on October 5, 2015. |
10.2 | Amendment and Restatement of The Ryland Group, Inc. 2008 Equity Incentive Plan, incorporated by reference to Exhibit 10.11 of the Annual Report on Form 10-K for the year ended December 31, 2008 filed by The Ryland Group, Inc. (File No. 001-08029). |
10.3 | The Ryland Group, Inc. 2011 Equity and Incentive Plan, incorporated by reference to Exhibit 99 to the Current Report on Form 8-K filed by The Ryland Group, Inc. on March 24, 2011 (File No. 001-08029). |
10.4 | The Ryland Group, Inc. Executive and Director Deferred Compensation Plan II, incorporated by reference to Exhibit 10.30 of the Annual Report on Form 10-K for the year ended December 31, 2008 filed by The Ryland Group, Inc. (File No. 001-08029). |
10.5 | The Ryland Group, Inc. 2004 Non-Employee Director Equity Plan, incorporated by reference to Exhibit 10.15 of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 filed by The Ryland Group, Inc. (File No. 001-08029). |
31.1
|
Certification of the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101 | The following materials from CalAtlantic Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, 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. |
* | The annexes, schedules and certain exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant will furnish copies of any such schedules to the U.S. Securities and Exchange Commission upon request. |
Dated: November 5, 2015
|
By:
|
/s/ Larry T. Nicholson
|
Larry T. Nicholson
President and Chief Executive Officer
(Principal Executive Officer)
|
||
Dated: November 5, 2015
|
By:
|
/s/ Jeff J. McCall
|
Jeff J. McCall
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|