Standard Pacific reports Q2 results: Net new orders up, revenues down

Standard Pacific reported a net loss in the 2011 second quarter of $10.5 million, or $0.03 per share, on homebuilding revenues of $204.3 million compared to net income of $10.7 million, or $0.04 per share, on homebuilding revenues of $317.2 million in the 2010 second quarter.

The net loss in the 2011 second quarter included $6.0 million of inventory impairment charges and a $2.2 million charge related to management changes. The Company's adjusted net loss of $2.4 million* in the 2011 second quarter (excluding impairment charges and the management change charge) improved significantly compared to a net loss of $14.8 million in the previous quarter.

2011 Second Quarter Highlights

• 153 average selling communities; up 11% from prior quarter and up 20% from Q2 2010
  • 157 selling communities at end of June 2011
• Net new orders of 764 up 17% from Q1 2011; up 6% from Q2 2010
• Backlog of 781 homes up 25% from Q1 2011; up 20% from Q2 2010
  • Backlog value of $294 million up 24% from $238 million in Q2 2010
• Average selling price of $335 thousand up 2% from Q1 2011
• Inventory impairment charges of $6.0 million; $2.2 million of expense related to management changes
  • Three communities impaired; two in Northern California and one in Arizona
• Gross margin from home sales of 17.0% (20.0%* excluding impairments) vs. 20.5% in Q1 2011
• SG&A rate from home sales of 18.8% (17.8%* excluding management change charge) vs. 13.7% in Q2 2010
  • G&A expenses of $22.4 million vs. $22.8 million in Q2 2010 (excluding incentive compensation and management change expenses)
• Operating cash outflows of $122.0 million and $110.2 million in Q2 2011 and Q1 2011, respectively
  • Excluding land purchases and development costs, cash inflows of $1.9 million* and $10.4 million* in Q2 2011 and Q1 2011, respectively
• Adjusted EBITDA of $23.7 million*, or 11.6%* of homebuilding revenues, in Q2 2011 ($93.3 million*, or 12.1%*, for LTM ended June 30, 2011)
• Homebuilding revenues down 36% due to 32% drop in new home deliveries from Q2 2010
• Cash balance of $507.2 million with $196 million available from revolving credit facility vs. $710.4 million in cash as of the end of Q2 2010 when the Company had no revolving credit facility
• Approved land purchases of $98.5 million for 1,493 lots; down from $121.5 million in Q1 2011

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