x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
33-0475989
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
Title
of each class
|
Name
of each exchange on which registered
|
Common
Stock, $0.01 par value
(and
accompanying Preferred Share Purchase Rights)
|
New
York Stock Exchange
|
6¼%
Senior Notes due 2014
(and
related guarantees)
|
New
York Stock Exchange
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨ (Do not check if
a smaller reporting company)
|
Smaller
reporting company ¨
|
Page No.
|
||
PART
I
|
||
Item 1.
|
1
|
|
Item 1A.
|
5
|
|
Item 1B.
|
13
|
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Item 2.
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13
|
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Item 3.
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13
|
|
Item 4.
|
||
PART
II
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||
Item 5.
|
15
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Item 6.
|
17
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Item 7.
|
18
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Item 7A.
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42
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Item 8.
|
44
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Item 9.
|
86
|
|
Item 9A.
|
86
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Item 9B.
|
88
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PART
III
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||
Item 10.
|
88
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|
Item 11.
|
88
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Item 12.
|
88
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Item 13.
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88
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Item 14.
|
88
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PART
IV
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||
Item 15.
|
90
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ITEM 1.
|
State
|
Percentage of
Deliveries
|
|
California
|
41%
|
|
Florida
|
22
|
|
Texas
|
12
|
|
Carolinas
|
12
|
|
Arizona
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8
|
|
Colorado
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4
|
|
Nevada
|
1
|
|
Total
|
100%
|
|
·
|
Align
overhead structure with current and projected delivery
levels;
|
·
|
Manage
speculative starts and new community openings to align production with
sales;
|
·
|
Be
among the leaders in each of our markets allowing better access to land
opportunities and the potential for a lower cost
structure;
|
·
|
Centralize
key administrative functions, such as finance and treasury, information
technology, legal and risk management, and human resources, in our
corporate headquarters to facilitate control and minimize
costs;
|
·
|
Use
the downturn in the economy as an opportunity to improve our operating
model to be positioned to offer better value to our customers as industry
conditions improve;
|
·
|
Value
engineer our homes with a sharpened focus on preferred customer
features;
|
·
|
Accelerate
our national and regional purchasing, re-bidding and other purchasing
initiatives; and
|
·
|
Focus
on our historical strength, single family detached and attached homes
(including condominiums) configured in three or fewer stories and which
are offered at multiple price points to appeal to a broad range of
homebuyers.
|
·
|
Take
advantage of the distressed land market to acquire land positions in
markets that are expected to be high growth in the
future;
|
·
|
Invest
in our land position while prices are depressed with a long-term goal of
having a 2 to 3 year land supply when market conditions normalize;
and
|
·
|
Focus
on our existing geographic footprint (we currently operate in 11 of the
top 25 markets in the country based on building permits) and exceptional
opportunities that become available in additional high growth
markets.
|
·
|
Preserve
sufficient cash resources to meet debt repayment obligations until market
conditions improve and re-financing alternatives become available;
and
|
·
|
Pursue
land acquisition opportunities through use of excess cash, equity or
potential partnerships with external financial
partners.
|
State
|
Average
Selling
Price
|
|
California
|
$ 434,000
|
|
Texas
|
$
282,000
|
|
Florida
|
$ 190,000
|
|
Arizona
|
$ 211,000
|
|
Carolinas
|
$ 218,000
|
|
Colorado
|
$ 305,000
|
|
Nevada
|
$ 225,000
|
ITEM 1A.
|
·
|
permitted
land uses, levels of density and architectural
designs;
|
·
|
the
installation of utility services, such as water and waste
disposal;
|
·
|
the
dedication of acreage for open space, parks, schools and other community
services; and
|
·
|
the
preservation of habitat for endangered species and wetlands, storm water
control and other environmental
matters.
|
·
|
Restricted Payment Risk.
Our public note indentures prohibit us from making restricted
payments, including investments in joint ventures, when we are unable to
meet either a leverage condition or an interest coverage condition and
when making such a payment will cause us to exceed a basket limitation. As
of December 31, 2009, we did not satisfy the leverage condition or the
interest coverage condition. As a result, we are unable to make payments
to satisfy our joint venture obligations, other than through funds
available from our unrestricted subsidiaries. If we become unable to fund
our joint venture obligations this could result in, among other things,
defaults under our joint venture operating agreements, loan agreements,
and credit enhancements.
|
·
|
Entitlement Risk.
Certain of our joint ventures acquire parcels of unentitled raw
land. If the joint venture is unable to timely obtain entitlements at a
reasonable cost, project delay or even project termination may occur
resulting in an impairment of the value of our
investment.
|
·
|
Development Risk. The
projects we build through joint ventures are often larger and have a
longer time horizon than the typical project developed by our wholly-owned
homebuilding operations. Time delays associated with obtaining
entitlements, unforeseen development issues, unanticipated labor and
material cost increases, and general market deterioration and other
changes are more likely to impact larger, long-term projects, all of which
may negatively impact the profitability of these ventures and our
proportionate share of income.
|
·
|
Financing Risk. There
are currently a limited number of sources willing to provide acquisition,
development and construction financing to land development and
homebuilding joint ventures. Due to current market conditions, it may be
difficult or impossible to obtain financing for our joint ventures on
commercially reasonable terms, or to refinance existing borrowings as such
borrowings mature. As a result, we may
be
|
|
required
to expend corporate funds to finance acquisition and development and/or
construction costs following termination or step-down of joint venture
financing that the joint venture is unable to restructure, extend, or
refinance with another third party lender. In addition, our
ability to expend such funds to or for the joint venture is limited as a
result of the restricted payment risk discussed
above.
|
·
|
Contribution Risk.
Under credit enhancements that we typically provide with respect to joint
venture borrowings, we and our partners could be required to make
additional unanticipated investments in these joint ventures, either in
the form of capital contributions or loan repayments, to reduce such
outstanding borrowings. We may have to make additional
contributions that exceed our proportional share of capital if our
partners fail to contribute any or all of their share. While in
most instances we would be able to exercise remedies available under the
applicable joint venture documentation if a partner fails to contribute
its proportional share of capital, our partner’s financial condition may
preclude any meaningful cash recovery on the
obligation.
|
·
|
Completion Risk. We
often sign a completion agreement in connection with obtaining financing
for our joint ventures. Under such agreements, we may be compelled to
complete a project even if we no longer have an economic interest in the
property.
|
·
|
Illiquid Investment
Risk. We lack a controlling interest in our joint ventures and
therefore are generally unable to compel our joint ventures to sell
assets, return invested capital, require additional capital contributions
or take any other action without the vote of at least one or more of our
venture partners. This means that, absent partner agreement, we will be
unable to liquidate our joint venture investments to generate
cash.
|
·
|
Partner Dispute. If we
have a dispute with one of our joint venture partners and are unable to
resolve it, a buy-sell provision in the applicable joint venture agreement
could be triggered or we may otherwise pursue a negotiated settlement
involving the unwinding of the venture. In either case, we may sell our
interest to our partner or purchase our partner’s interest. If we sell our
interest, we will forgo the profit we would have otherwise earned with
respect to the joint venture project and may be required to forfeit our
invested capital and/or pay our partner to release us from our joint
venture obligations. If we are required to purchase our partner’s
interest, we will be required to fund this purchase, as well as the
completion of the project, with corporate level capital and to consolidate
the joint venture project onto our balance sheet, which could, among other
things, adversely impact our liquidity, our leverage and other financial
conditions or covenants.
|
·
|
Consolidation Risk. The
accounting rules for joint ventures are complex and the decision as to
whether it is proper to consolidate a joint venture onto our balance sheet
is fact intensive. If the facts concerning an unconsolidated joint venture
were to change and a triggering event under applicable accounting rules
were to occur, we might be required to consolidate previously
unconsolidated joint ventures onto our balance sheet which could adversely
impact our leverage and other financial conditions or
covenants.
|
ITEM 1B.
|
ITEM 2.
|
ITEM 3.
|
ITEM 4.
|
Name
|
Age
|
Position
|
||
Kenneth
L. Campbell
|
53
|
Chief
Executive Officer, President, and Director
|
||
Scott
D. Stowell
|
52
|
Chief
Operating Officer
|
||
John
M. Stephens
|
41
|
Senior
Vice President and Chief Financial Officer
|
||
John
P. Babel
|
39
|
Senior
Vice President, General Counsel and Secretary
|
||
Todd
J. Palmaer
|
51
|
President,
California Region
|
||
Kathleen
R. Wade
|
56
|
President,
Southwest and Southeast Regions
|
Year
Ended December 31,
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
||||||||||||||
Quarter Ended
|
|||||||||||||||||||
March
31
|
$
|
2.07
|
$
|
0.65
|
$
|
―
|
$
|
5.55
|
$
|
1.47
|
$
|
―
|
|||||||
June
30
|
2.74
|
0.85
|
―
|
6.50
|
2.17
|
―
|
|||||||||||||
September
30
|
4.59
|
1.86
|
―
|
6.85
|
2.87
|
―
|
|||||||||||||
December
31
|
3.83
|
2.84
|
―
|
5.25
|
1.22
|
―
|
ITEM 6.
|
Year
Ended December 31,
|
||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||||||||||
Revenues:
|
||||||||||||||||||
Homebuilding
(1)
|
$
|
1,166,397
|
$
|
1,535,616
|
$
|
2,888,833
|
$
|
3,740,470
|
$
|
3,893,019
|
||||||||
Financial
Services
|
13,145
|
13,587
|
16,677
|
24,866
|
17,359
|
|||||||||||||
Total
revenues from continuing operations
|
$
|
1,179,542
|
$
|
1,549,203
|
$
|
2,905,510
|
$
|
3,765,336
|
$
|
3,910,378
|
||||||||
Pretax
Income (Loss):
|
||||||||||||||||||
Homebuilding
(1)(2)
|
$
|
(111,068)
|
$
|
(1,237,840)
|
$
|
(846,586)
|
$
|
220,812
|
$
|
703,164
|
||||||||
Financial
Services
|
1,586
|
1,016
|
2,293
|
8,211
|
6,314
|
|||||||||||||
Pretax
income (loss) from continuing operations
|
$
|
(109,482)
|
$
|
(1,236,824)
|
$
|
(844,293)
|
$
|
229,023
|
$
|
709,478
|
||||||||
Net Income
(Loss):
|
||||||||||||||||||
Income
(loss) from continuing operations
|
$
|
(13,217)
|
$
|
(1,231,329)
|
$
|
(695,290)
|
$
|
146,093
|
$
|
439,950
|
||||||||
Income
(loss) from discontinued operations
|
(569)
|
(2,286)
|
(72,090)
|
(22,400)
|
1,034
|
|||||||||||||
Net
income (loss)
|
$
|
(13,786)
|
$
|
(1,233,615)
|
$
|
(767,380)
|
$
|
123,693
|
$
|
440,984
|
||||||||
Basic
Earnings (Loss) Per Common Share:
|
||||||||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
$
|
2.01
|
$
|
5.84
|
||||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
(0.31)
|
0.01
|
|||||||||||||
Basic
earnings (loss) per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
$
|
1.70
|
$
|
5.85
|
||||||||
Diluted
Earnings (Loss) Per Common Share:
|
||||||||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
$
|
1.97
|
$
|
5.67
|
||||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
(0.30)
|
0.01
|
|||||||||||||
Diluted
earnings (loss) per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
$
|
1.67
|
$
|
5.68
|
||||||||
Weighted
Average Common Shares Outstanding:
|
||||||||||||||||||
Basic
|
95,623,851
|
81,439,248
|
72,157,394
|
72,644,368
|
75,357,074
|
|||||||||||||
Diluted.
|
95,623,851
|
81,439,248
|
72,157,394
|
74,213,185
|
77,704,823
|
|||||||||||||
Weighted
Average If-Converted Preferred
|
||||||||||||||||||
Shares
Outstanding: (3)
|
147,812,786
|
53,523,829
|
―
|
―
|
―
|
|||||||||||||
Balance
Sheet and Other Financial Data:
|
||||||||||||||||||
Homebuilding
cash (including restricted cash)
|
$
|
602,222
|
$
|
626,379
|
$
|
219,141
|
$
|
17,356
|
$
|
18,796
|
||||||||
Total
assets
|
$
|
1,861,011
|
$
|
2,252,488
|
$
|
3,401,904
|
$
|
4,502,941
|
$
|
4,280,842
|
||||||||
Homebuilding
debt (4)
|
$
|
1,158,626
|
$
|
1,486,437
|
$
|
1,747,730
|
$
|
1,953,880
|
$
|
1,571,554
|
||||||||
Financial
services debt
|
$
|
40,995
|
$
|
63,655
|
$
|
164,172
|
$
|
250,907
|
$
|
123,426
|
||||||||
Stockholders'
equity
|
$
|
435,798
|
$
|
407,941
|
$
|
1,034,279
|
$
|
1,764,370
|
$
|
1,739,159
|
||||||||
Stockholders'
equity per common share (5)
|
$
|
4.30
|
$
|
4.40
|
$
|
15.95
|
$
|
27.39
|
$
|
25.91
|
||||||||
Pro
forma stockholders' equity per common share (6)
|
$
|
1.75
|
$
|
1.70
|
$
|
15.95
|
$
|
27.39
|
$
|
25.91
|
||||||||
Cash
dividends declared per common share
|
$
|
―
|
$
|
―
|
$
|
0.12
|
$
|
0.16
|
$
|
0.16
|
(1)
|
Excludes
our Tucson and San Antonio divisions, which are classified as discontinued
operations.
|
(2)
|
The
2009, 2008, 2007 and 2006 homebuilding pretax income (loss) includes
pretax impairment charges totaling $71.1 million, $1,153.5 million, $984.6
million and $334.9 million, respectively. (Please see Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations—Results of Operations” and Notes 2, 4 and 13 of the
accompanying Consolidated Financial Statements for further
discussion).
|
(3)
|
In
June 2008 and September 2008, we issued 125.0 million and 22.8 million,
respectively, 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
common shares outstanding as of December 31, 2009 and 2008 would have been
243.4 million and 135.0 million,
respectively.
|
(4)
|
Homebuilding
debt includes the indebtedness related to liabilities from inventories not
owned of $1.9 million, $0, $11.4 million, $13.4 million and $43.2 million,
as of December 31, 2009, 2008, 2007, 2006 and 2005,
respectively.
|
(5)
|
At
December 31, 2009, 2008 and 2007, common shares outstanding exclude 3.9
million, 7.8 million and 7.8 million shares, respectively, issued under a
share lending facility related to our 6% convertible senior subordinated
notes issued September 28, 2007 and 147.8 million common equivalent shares
issued during the year ended December 31, 2008 in the form of preferred
stock to MP CA Homes LLC, an affiliate of MatlinPatterson Global Advisers
LLC.
|
(6)
|
At
December 31, 2009 and 2008, pro forma common shares outstanding include
147.8 million preferred shares outstanding on an if-converted
basis. In addition, at December 31, 2009, 2008 and 2007, pro
forma common shares outstanding exclude 3.9 million, 7.8 million and 7.8
million shares, respectively, issued under a share lend facility related
to our 6% convertible senior subordinated
notes.
|
Year
Ended December 31,
|
|||||||||||||||
2009
|
2008
|
2007
|
|||||||||||||
(Dollars
in thousands, except per share amounts)
|
|||||||||||||||
Homebuilding:
|
|||||||||||||||
Home
sale revenues
|
$
|
1,060,502
|
$
|
1,521,640
|
$
|
2,607,824
|
|||||||||
Land
sale revenues
|
105,895
|
13,976
|
281,009
|
||||||||||||
Total
revenues
|
1,166,397
|
1,535,616
|
2,888,833
|
||||||||||||
Cost
of home sales
|
(907,058)
|
(2,107,758)
|
(2,520,264)
|
||||||||||||
Cost
of land sales
|
(117,517)
|
(124,786)
|
(568,539)
|
||||||||||||
Total
cost of sales
|
(1,024,575)
|
(2,232,544)
|
(3,088,803)
|
||||||||||||
Gross
margin
|
141,822
|
(696,928)
|
(199,970)
|
||||||||||||
Gross
margin percentage
|
12.2%
|
(45.4%)
|
(6.9%)
|
||||||||||||
Selling,
general and administrative expenses
|
(191,488)
|
(305,480)
|
(387,981)
|
||||||||||||
Loss
from unconsolidated joint ventures
|
(4,717)
|
(151,729)
|
(190,025)
|
||||||||||||
Interest
expense
|
(47,458)
|
(10,380)
|
―
|
||||||||||||
Gain
(loss) on early extinguishment of debt
|
(6,931)
|
(15,695)
|
1,087
|
||||||||||||
Other
income (expense)
|
(2,296)
|
(57,628)
|
(69,697)
|
||||||||||||
Homebuilding
pretax loss
|
(111,068)
|
(1,237,840)
|
(846,586)
|
||||||||||||
Financial
Services:
|
|||||||||||||||
Revenues
|
13,145
|
13,587
|
16,677
|
||||||||||||
Expenses
|
(11,817)
|
(13,659)
|
(16,045)
|
||||||||||||
Income
from unconsolidated joint ventures
|
119
|
854
|
1,050
|
||||||||||||
Other
income
|
139
|
234
|
611
|
||||||||||||
Financial
services pretax income
|
1,586
|
1,016
|
2,293
|
||||||||||||
Loss
from continuing operations before income taxes
|
(109,482)
|
(1,236,824)
|
(844,293)
|
||||||||||||
Benefit
for income taxes
|
96,265
|
5,495
|
149,003
|
||||||||||||
Loss
from continuing operations
|
(13,217)
|
(1,231,329)
|
(695,290)
|
||||||||||||
Loss
from discontinued operations, net of income taxes
|
(569)
|
(2,286)
|
(52,540)
|
||||||||||||
Loss
from disposal of discontinued operations, net of income
taxes
|
―
|
―
|
(19,550)
|
||||||||||||
Net
income (loss)
|
(13,786)
|
(1,233,615)
|
(767,380)
|
||||||||||||
Less:
Net loss allocated to preferred shareholders
|
8,371
|
489,229
|
―
|
||||||||||||
Net
loss available to common stockholders
|
$
|
(5,415)
|
$
|
(744,386)
|
$
|
(767,380)
|
|||||||||
Basic
Earnings (Loss) Per Common Share:
|
|||||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
|||||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
||||||||||||
Basic
earnings (loss) per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
|||||||||
Diluted
Earnings (Loss) Per Common Share:
|
|||||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
|||||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
||||||||||||
Diluted
earnings (loss) per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
|||||||||
Weighted
Average Common Shares Outstanding:
|
|||||||||||||||
Basic
|
95,623,851
|
81,439,248
|
72,157,394
|
||||||||||||
Diluted
|
95,623,851
|
81,439,248
|
72,157,394
|
||||||||||||
Weighted
Average If-Converted Preferred Shares Outstanding: (1)
|
147,812,786
|
53,523,829
|
―
|
||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
419,830
|
$
|
263,151
|
$
|
655,558
|
|||||||||
Net
cash provided by (used in) investing activities
|
$
|
(27,301)
|
$
|
(11,579)
|
$
|
(197,815)
|
|||||||||
Net
cash provided by (used in) financing activities
|
$
|
(422,815)
|
$
|
142,712
|
$
|
(258,285)
|
|||||||||
Adjusted
Homebuilding EBITDA (2)
|
$
|
116,252
|
$
|
43,885
|
$
|
297,369
|
(1)
|
In
June 2008 and September 2008, we issued 125.0 million and 22.8 million,
respectively, 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
common shares outstanding as of December 31, 2009 and 2008 would have been
243.4 million and 135.0 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, (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.
|
(2)
|
Continued
|
Year
Ended December 31,
|
|||||||||||||||
2009
|
2008
|
2007
|
|||||||||||||
(Dollars
in thousands)
|
|||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
419,830
|
$
|
263,151
|
$
|
655,558
|
|||||||||
Add:
|
|||||||||||||||
Provision
for (benefit from) income taxes
|
(96,563)
|
(6,795)
|
(188,954)
|
||||||||||||
Deferred
tax valuation allowance
|
51,429
|
(473,627)
|
(180,480)
|
||||||||||||
Homebuilding
interest amortized to cost of sales and interest expense
|
134,293
|
94,452 | 131,289 | ||||||||||||
Excess
tax benefits from share-based payment arrangements
|
297
|
―
|
1,498
|
||||||||||||
Less:
|
|||||||||||||||
Income
(loss) from financial services subsidiary
|
1,328
|
(72)
|
632
|
||||||||||||
Depreciation
and amortization from financial services subsidiary
|
678
|
783
|
703
|
||||||||||||
Loss
on disposal of property and equipment
|
2,611
|
2,792
|
1,439
|
||||||||||||
Net
changes in operating assets and liabilities:
|
|||||||||||||||
Trade
and other receivables
|
(8,440)
|
(6,408)
|
(45,083)
|
||||||||||||
Mortgage
loans held for sale
|
(24,718)
|
(91,380)
|
(99,618)
|
||||||||||||
Inventories-owned
|
(326,062)
|
(34,567)
|
(399,432)
|
||||||||||||
Inventories-not
owned
|
2,805
|
(1,049)
|
(10,449)
|
||||||||||||
Deferred
income taxes
|
45,133
|
343,754
|
135,741
|
||||||||||||
Other
assets
|
(118,265)
|
(142,834)
|
245,723
|
||||||||||||
Accounts
payable
|
18,554
|
57,949
|
13,105
|
||||||||||||
Accrued
liabilities
|
22,576
|
44,742
|
41,245
|
||||||||||||
Adjusted
Homebuilding EBITDA
|
$
|
116,252
|
$
|
43,885
|
$
|
297,369
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Homebuilding
revenues:
|
||||||||||||
California
|
$
|
665,414
|
$
|
796,737
|
$
|
1,484,047
|
||||||
Southwest
(1)
|
238,249
|
416,749
|
793,455
|
|||||||||
Southeast
|
262,734
|
322,130
|
611,331
|
|||||||||
Total
homebuilding revenues
|
$
|
1,166,397
|
$
|
1,535,616
|
$
|
2,888,833
|
||||||
Homebuilding
pretax income (loss):
|
||||||||||||
California
|
$
|
(16,817)
|
$
|
(724,047)
|
$
|
(524,913)
|
||||||
Southwest
(1)
|
(28,950)
|
(257,031)
|
(165,714)
|
|||||||||
Southeast
|
(30,880)
|
(222,586)
|
(150,829)
|
|||||||||
Corporate
|
(34,421)
|
(34,176)
|
(5,130)
|
|||||||||
Total
homebuilding pretax income (loss)
|
$
|
(111,068)
|
$
|
(1,237,840)
|
$
|
(846,586)
|
||||||
Homebuilding
pretax impairment charges:
|
||||||||||||
California
|
$
|
43,313
|
$
|
690,890
|
$
|
577,990
|
||||||
Southwest
(1)
|
16,426
|
252,877
|
211,075
|
|||||||||
Southeast
|
11,342
|
209,763
|
195,527
|
|||||||||
Total
homebuilding pretax impairment charges
|
$
|
71,081
|
$
|
1,153,530
|
$
|
984,592
|
||||||
Homebuilding
pretax impairment charges by type:
|
||||||||||||
Deposit
write-offs
|
$
|
2,490
|
$
|
25,649
|
$
|
22,539
|
||||||
Inventory
impairments
|
60,450
|
943,094
|
705,420
|
|||||||||
Joint
venture impairments
|
8,141
|
149,265
|
202,309
|
|||||||||
Goodwill
impairments
|
―
|
35,522
|
54,324
|
|||||||||
Total
homebuilding pretax impairment charges
|
$
|
71,081
|
$
|
1,153,530
|
$
|
984,592
|
As
of December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars in thousands) | ||||||||||||
Total
Assets:
|
||||||||||||
California
|
$
|
671,887
|
$
|
810,619
|
$
|
1,376,000
|
||||||
Southwest
(1)
|
210,058
|
299,039
|
622,873
|
|||||||||
Southeast
|
181,931
|
275,893
|
544,162
|
|||||||||
Corporate
|
730,046
|
777,256
|
648,569
|
|||||||||
Total
homebuilding
|
1,793,922
|
2,162,807
|
3,191,604
|
|||||||||
Financial
services
|
67,089
|
88,464
|
190,573
|
|||||||||
Discontinued
operations
|
―
|
1,217
|
19,727
|
|||||||||
Total
Assets
|
$
|
1,861,011
|
$
|
2,252,488
|
$
|
3,401,904
|
(1)
|
Excludes
our Tucson and San Antonio divisions, which are classified as discontinued
operations.
|
Year
Ended December 31,
|
||||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
||||||||||
New
homes delivered:
|
||||||||||||||
California
|
1,344
|
(19%)
|
1,668
|
(24%)
|
2,189
|
|||||||||
Arizona
(1)
|
303
|
(44%)
|
540
|
(48%)
|
1,029
|
|||||||||
Texas
(1)
|
419
|
(38%)
|
677
|
(31%)
|
984
|
|||||||||
Colorado
|
147
|
(36%)
|
229
|
(41%)
|
388
|
|||||||||
Nevada
|
15
|
(76%)
|
62
|
(9%)
|
68
|
|||||||||
Total
Southwest
|
884
|
(41%)
|
1,508
|
(39%)
|
2,469
|
|||||||||
Florida
|
797
|
(10%)
|
883
|
(33%)
|
1,314
|
|||||||||
Carolinas
|
440
|
(20%)
|
548
|
(42%)
|
946
|
|||||||||
Total
Southeast
|
1,237
|
(14%)
|
1,431
|
(37%)
|
2,260
|
|||||||||
Consolidated
total
|
3,465
|
(25%)
|
4,607
|
(33%)
|
6,918
|
|||||||||
Unconsolidated
joint ventures (2)
|
112
|
(59%)
|
270
|
(46%)
|
499
|
|||||||||
Discontinued
operations (including joint ventures) (2)
|
4
|
(97%)
|
148
|
(77%)
|
634
|
|||||||||
Total
(including joint ventures) (2)
|
3,581
|
(29%)
|
5,025
|
(38%)
|
8,051
|
(1)
|
Arizona
and Texas exclude our Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(2)
|
Numbers
presented regarding unconsolidated joint ventures reflect total deliveries
of such joint ventures. Our ownership interests in these joint
ventures vary but are generally less than or equal to
50%.
|
Year
Ended December 31,
|
||||||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
||||||||||||
Average
selling prices of homes delivered:
|
||||||||||||||||
California
|
$
|
434,000
|
(9%)
|
$
|
475,000
|
(21%)
|
$
|
601,000
|
||||||||
Arizona
(1)
|
211,000
|
(7%)
|
228,000
|
(25%)
|
304,000
|
|||||||||||
Texas
(1)
|
282,000
|
1%
|
280,000
|
11%
|
253,000
|
|||||||||||
Colorado
|
305,000
|
(12%)
|
348,000
|
(2%)
|
355,000
|
|||||||||||
Nevada
|
225,000
|
(21%)
|
285,000
|
(10%)
|
316,000
|
|||||||||||
Total
Southwest
|
260,000
|
(4%)
|
272,000
|
(7%)
|
292,000
|
|||||||||||
Florida
|
190,000
|
(9%)
|
209,000
|
(22%)
|
267,000
|
|||||||||||
Carolinas
|
218,000
|
(11%)
|
246,000
|
6%
|
232,000
|
|||||||||||
Total
Southeast
|
200,000
|
(10%)
|
223,000
|
(12%)
|
253,000
|
|||||||||||
Consolidated
total
|
306,000
|
(7%)
|
330,000
|
(12%)
|
377,000
|
|||||||||||
Unconsolidated
joint ventures (2)
|
517,000
|
(2%)
|
525,000
|
(7%)
|
565,000
|
|||||||||||
Discontinued
operations (including joint ventures) (2)
|
201,000
|
15%
|
175,000
|
(13%)
|
200,000
|
|||||||||||
Total
(including joint ventures) (2)
|
$
|
313,000
|
(7%)
|
$
|
336,000
|
(14%)
|
$
|
390,000
|
(1)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(2)
|
Numbers
presented regarding unconsolidated joint ventures reflect total average
selling prices of such joint ventures. Our ownership interests
in these joint ventures vary but are generally less than or equal to
50%.
|
Year
Ended December 31,
|
|||||||||||||||
2009
|
Gross
Margin
%
|
2008
|
Gross
Margin
%
|
2007
|
Gross
Margin
%
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||||
Homebuilding
gross margin
|
$
|
141,822
|
12.2%
|
$
|
(696,928)
|
(45.4%)
|
$
|
(199,970)
|
(6.9%)
|
||||||
Less:
Land sale revenues
|
105,895
|
13,976
|
281,009
|
||||||||||||
Add:
Cost of land sales
|
117,517
|
124,786
|
568,539
|
||||||||||||
Gross
margin from home sales
|
153,444
|
14.5%
|
(586,118)
|
(38.5%)
|
87,560
|
3.4%
|
|||||||||
Add:
Housing inventory impairment charges
|
46,063
|
827,611
|
414,244
|
||||||||||||
Gross
margin from home sales, as adjusted
|
$
|
199,507
|
18.8%
|
$
|
241,493
|
15.9%
|
$
|
501,804
|
19.2%
|
Year
Ended December 31,
|
|||||||||||||||
2009
|
SG&A
% (excl. land sales)
|
2008
|
SG&A
% (excl. land sales)
|
2007
|
SG&A
% (excl. land sales)
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||||
Selling,
general and administrative expenses
|
$
|
191,488
|
18.1%
|
$
|
305,480
|
20.1%
|
$
|
387,981
|
14.9%
|
||||||
Less:
Restructuring charges
|
(19,125)
|
(1.8%)
|
(19,179)
|
(1.3%)
|
―
|
―
|
|||||||||
Selling,
general and administrative expenses,
|
|||||||||||||||
excluding
restructuring charges
|
$
|
172,363
|
16.3%
|
$
|
286,301
|
18.8%
|
$
|
387,981
|
14.9%
|
Year
Ended December 31,
|
|||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
|||||||||
Net
new orders (1):
|
|||||||||||||
California
|
1,358
|
(9%)
|
1,495
|
(29%)
|
2,112
|
||||||||
Arizona
(2)
|
274
|
(35%)
|
422
|
(29%)
|
593
|
||||||||
Texas
(2)
|
398
|
(21%)
|
506
|
(40%)
|
844
|
||||||||
Colorado
|
123
|
(33%)
|
184
|
(49%)
|
363
|
||||||||
Nevada
|
11
|
(70%)
|
37
|
(57%)
|
86
|
||||||||
Total
Southwest
|
806
|
(30%)
|
1,149
|
(39%)
|
1,886
|
||||||||
Florida
|
728
|
(10%)
|
810
|
(3%)
|
837
|
||||||||
Carolinas
|
451
|
(8%)
|
492
|
(43%)
|
862
|
||||||||
Total
Southeast
|
1,179
|
(9%)
|
1,302
|
(23%)
|
1,699
|
||||||||
Consolidated
total
|
3,343
|
(15%)
|
3,946
|
(31%)
|
5,697
|
||||||||
Unconsolidated
joint ventures (3)
|
174
|
(12%)
|
197
|
(62%)
|
518
|
||||||||
Discontinued
operations
|
3
|
(97%)
|
105
|
(80%)
|
522
|
||||||||
Total
(including joint ventures) (3)
|
3,520
|
(17%)
|
4,248
|
(37%)
|
6,737
|
(1)
|
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.
|
(2)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(3)
|
Numbers
presented regarding unconsolidated joint ventures reflect total net new
orders of such joint ventures. Our ownership interests in these
joint ventures vary but are generally less than or equal to
50%.
|
Year
Ended December 31,
|
|||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
|||||||||
Average
number of selling communities during the year:
|
|||||||||||||
California
|
50
|
(21%)
|
63
|
(2%)
|
64
|
||||||||
Arizona
(1)
|
8
|
(47%)
|
15
|
(17%)
|
18
|
||||||||
Texas
(1)
|
19
|
(34%)
|
29
|
16%
|
25
|
||||||||
Colorado
|
6
|
(25%)
|
8
|
(27%)
|
11
|
||||||||
Nevada
|
2
|
(33%)
|
3
|
(25%)
|
4
|
||||||||
Total
Southwest
|
35
|
(36%)
|
55
|
(5%)
|
58
|
||||||||
Florida
|
31
|
(31%)
|
45
|
(4%)
|
47
|
||||||||
Carolinas
|
24
|
(17%)
|
29
|
7%
|
27
|
||||||||
Total
Southeast
|
55
|
(26%)
|
74
|
0%
|
74
|
||||||||
Consolidated
total
|
140
|
(27%)
|
192
|
(2%)
|
196
|
||||||||
Unconsolidated
joint ventures (2)
|
7
|
(42%)
|
12
|
(48%)
|
23
|
||||||||
Discontinued
operations
|
―
|
(100%)
|
2
|
(92%)
|
25
|
||||||||
Total
(including joint ventures) (2)
|
147
|
(29%)
|
206
|
(16%)
|
244
|
(1)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(2)
|
Numbers
presented regarding unconsolidated joint ventures reflect total average
selling communities of such joint ventures. Our ownership
interests in these joint ventures vary but are generally less than or
equal to 50%.
|
Year
Ended December 31,
|
||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||
Backlog
($ in thousands):
|
Homes
|
Dollar
Value
|
Homes
|
Dollar
Value
|
Homes
|
Dollar
Value
|
||||||||||||
California
|
247
|
$
|
117,536
|
154
|
$
|
69,522
|
303
|
$
|
163,813
|
|||||||||
Arizona
(1)
|
47
|
9,686
|
76
|
17,083
|
194
|
50,091
|
||||||||||||
Texas
(1)
|
109
|
33,708
|
130
|
38,782
|
301
|
92,030
|
||||||||||||
Colorado
|
54
|
15,587
|
78
|
24,017
|
123
|
44,311
|
||||||||||||
Nevada
|
―
|
―
|
4
|
893
|
29
|
8,160
|
||||||||||||
Total
Southwest
|
210
|
58,981
|
288
|
80,775
|
647
|
194,592
|
||||||||||||
Florida
|
78
|
15,033
|
147
|
30,408
|
220
|
52,787
|
||||||||||||
Carolinas
|
64
|
16,337
|
53
|
12,735
|
109
|
31,476
|
||||||||||||
Total
Southeast
|
142
|
31,370
|
200
|
43,143
|
329
|
84,263
|
||||||||||||
Consolidated
total
|
599
|
207,887
|
642
|
193,440
|
1,279
|
442,668
|
||||||||||||
Unconsolidated
|
||||||||||||||||||
joint
ventures (2)
|
9
|
4,601
|
26
|
11,929
|
123
|
82,006
|
||||||||||||
Discontinued
operations
|
―
|
―
|
1
|
208
|
44
|
8,099
|
||||||||||||
Total
(including joint ventures)
(2)
|
608
|
$
|
212,488
|
669
|
$
|
205,577
|
1,446
|
$
|
532,773
|
(1)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(2)
|
Numbers
presented regarding unconsolidated joint ventures reflect total backlog of
such joint ventures. Our ownership interests in these joint
ventures vary but are generally less than or equal to
50%.
|
At
December 31,
|
|||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
|||||||||
Building
sites owned or controlled:
|
|||||||||||||
California
|
7,685
|
(9%)
|
8,491
|
(28%)
|
11,814
|
||||||||
Arizona
(1)
|
1,831
|
(20%)
|
2,303
|
(23%)
|
2,997
|
||||||||
Texas
(1)
|
1,714
|
(9%)
|
1,881
|
(44%)
|
3,370
|
||||||||
Colorado
|
255
|
(32%)
|
374
|
(51%)
|
771
|
||||||||
Nevada
|
1,218
|
(39%)
|
1,994
|
(17%)
|
2,390
|
||||||||
Total
Southwest
|
5,018
|
(23%)
|
6,552
|
(31%)
|
9,528
|
||||||||
Florida
|
4,678
|
(33%)
|
6,986
|
(17%)
|
8,462
|
||||||||
Carolinas
|
1,809
|
(11%)
|
2,042
|
(47%)
|
3,885
|
||||||||
Illinois
|
―
|
(100%)
|
60
|
(3%)
|
62
|
||||||||
Total
Southeast
|
6,487
|
(29%)
|
9,088
|
(27%)
|
12,409
|
||||||||
Discontinued
operations
|
1
|
(80%)
|
5
|
(100%)
|
1,007
|
||||||||
Total
(including joint ventures)
|
19,191
|
(20%)
|
24,136
|
(31%)
|
34,758
|
||||||||
Building
sites owned
|
15,826
|
(18%)
|
19,306
|
(10%)
|
21,371
|
||||||||
Building
sites optioned or subject to contract
|
2,361
|
(6%)
|
2,519
|
(55%)
|
5,619
|
||||||||
Joint
venture lots (2)
|
1,003
|
(57%)
|
2,306
|
(66%)
|
6,761
|
||||||||
Total
continuing operations
|
19,190
|
(20%)
|
24,131
|
(29%)
|
33,751
|
||||||||
Discontinued
operations
|
1
|
(80%)
|
5
|
(100%)
|
1,007
|
||||||||
Total
(including joint ventures) (2)
|
19,191
|
(20%)
|
24,136
|
(31%)
|
34,758
|
(1)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
(2)
|
Joint
venture lots represent our expected share of land development joint
venture lots and all of the lots of our homebuilding joint
ventures.
|
At
December 31,
|
||||||||||||||||
2009
|
%
Change
|
2008
|
%
Change
|
2007
|
||||||||||||
Homes
under construction (including specs):
|
||||||||||||||||
Consolidated
(excluding podium projects)
|
934
|
(14%)
|
1,081
|
(48%)
|
2,085
|
|||||||||||
Podium
projects
|
―
|
(100%)
|
245
|
―
|
―
|
|||||||||||
Total
consolidated
|
934
|
(30%)
|
1,326
|
(36%)
|
2,085
|
|||||||||||
Joint
ventures
|
25
|
(86%)
|
183
|
(58%)
|
440
|
|||||||||||
Total
continuing operations (1)
|
959
|
(36%)
|
1,509
|
(40%)
|
2,525
|
|||||||||||
Discontinued
operations
|
―
|
―
|
―
|
(100%)
|
64
|
|||||||||||
Total
|
959
|
(36%)
|
1,509
|
(42%)
|
2,589
|
|||||||||||
Spec
homes under construction:
|
||||||||||||||||
Consolidated
(excluding podium projects)
|
530
|
(15%)
|
620
|
(43%)
|
1,089
|
|||||||||||
Podium
projects
|
―
|
(100%)
|
245
|
―
|
―
|
|||||||||||
Total
consolidated
|
530
|
(39%)
|
865
|
(21%)
|
1,089
|
|||||||||||
Joint
ventures
|
20
|
(87%)
|
154
|
(58%)
|
368
|
|||||||||||
Total
continuing operations (1)
|
550
|
(46%)
|
1,019
|
(30%)
|
1,457
|
|||||||||||
Discontinued
operations
|
―
|
―
|
―
|
(100%)
|
31
|
|||||||||||
Total
|
550
|
(46%)
|
1,019
|
(32%)
|
1,488
|
|||||||||||
Completed
and unsold homes:
|
||||||||||||||||
Consolidated
(excluding podium projects)
|
233
|
(60%)
|
589
|
(15%)
|
695
|
|||||||||||
Podium
projects
|
49
|
―
|
―
|
―
|
―
|
|||||||||||
Total
consolidated
|
282
|
(52%)
|
589
|
(15%)
|
695
|
|||||||||||
Joint
ventures
|
6
|
(77%)
|
26
|
(42%)
|
45
|
|||||||||||
Total
continuing operations (1)
|
288
|
(53%)
|
615
|
(17%)
|
740
|
|||||||||||
Discontinued
operations
|
―
|
(100%)
|
1
|
(98%)
|
54
|
|||||||||||
Total
|
288
|
(53%)
|
616
|
(22%)
|
794
|
(1)
|
Arizona
and Texas exclude the Tucson and San Antonio divisions, which are
classified as discontinued
operations.
|
Year
Ended December 31,
|
||||||
2009
|
2008
|
2007
|
||||
Mortgage
Loan Origination Product Mix:
|
||||||
Conforming
loans
|
40%
|
46%
|
61%
|
|||
Government
loans (FHA and VA)
|
60%
|
44%
|
7%
|
|||
Jumbo
loans
|
―
|
9%
|
26%
|
|||
Other
loans
|
―
|
1%
|
6%
|
|||
100%
|
100%
|
100%
|
||||
Loan
Type:
|
||||||
Fixed
|
98%
|
93%
|
80%
|
|||
ARM
|
2%
|
7%
|
20%
|
|||
Credit
Quality:
|
||||||
FICO
score ≥ 700
|
96%
|
94%
|
81%
|
|||
FICO
score between 620 - 699
|
4%
|
6%
|
18%
|
|||
FICO
score < 620 (sub-prime loans)
|
―
|
―
|
1%
|
|||
Avg.
FICO score
|
733
|
732
|
733
|
|||
Other
Data:
|
||||||
Avg.
combined LTV ratio
|
89%
|
87%
|
86%
|
|||
Full
documentation loans
|
100%
|
96%
|
61%
|
|||
Non-Full
documentation loans
|
―
|
4%
|
39%
|
|||
Loan Capture
Rates
|
80%
|
78%
|
76%
|
· land
acquisitions
· operating
expenses
· joint
ventures (including capital contributions, remargin
payments and purchases of assets and partner interests)
|
· construction
and development expenditures
· principal
and interest payments on debt (including market
repurchases)
· market
expansion (including acquisitions)
· share
repurchases
· dividends
to our stockholders
|
· internally
generated funds
· bank
revolving credit facility
· land
option contracts
· land
seller notes
· sales
of our equity through public and private offerings
· proceeds
received upon the exercise of employee stock options
|
· public
and private note offerings (including convertible notes)
· bank
term loans
· joint
venture financings
· assessment
district bond financings
· issuance
of common stock as acquisition consideration
· mortgage
credit facilities
· tax
refunds
|
Covenant
Requirements
|
Actual
at
December
31, 2009
|
Covenant
Requirements
at
December
31, 2009
|
|||
Cash
Flow Coverage Ratio:
|
|||||
Cash
Flow from Operations to Consolidated Homebuilding
|
|||||
Interest
Incurred
|
4.94
|
≥
1.00
|
|||
Interest
Coverage Ratio:
|
|||||
Adjusted
Homebuilding EBITDA (as defined in the Term Loan B credit
facility) to Consolidated
|
|||||
Homebuilding
Interest Incurred
|
1.14
|
≥
1.00
|
|||
Total
Leverage Ratio:
|
|||||
Net
Homebuilding Debt to Adjusted Consolidated
|
|||||
Tangible
Net Worth Ratio
|
1.40
|
≤
3.00
|
Covenant
and Other Requirements
|
Actual
at
December
31, 2009
|
Covenant
Requirements
at
December
31, 2009
|
|||||
Total
Leverage Ratio:
|
|||||||
Indebtedness
to Consolidated Tangible Net Worth Ratio
|
3.02
|
≤
|
2.25
|
(1)
|
|||
Interest
Coverage Ratio:
|
|||||||
EBITDA
(as defined in the indenture) to Consolidated Interest
Incurred
|
1.08
|
≥
|
2.00
|
(1)
|
The
leverage ratio under the indenture governing our 9¼% Senior Subordinated
Notes due 2012
is ≤ 2.50.
|
Payments
Due by Period
|
|||||||||||||||||||
Total
|
Less
Than 1 Year
|
1-3
Years
|
4-5
Years
|
After
5
Years
|
|||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Contractual Obligations
|
|||||||||||||||||||
Long-term
debt principal payments (1)
|
$ | 1,190,899 | $ | 58,256 | $ | 181,060 | $ | 496,583 | $ | 455,000 | |||||||||
Long-term
debt interest payments
|
426,463 | 93,597 | 169,947 | 103,842 | 59,077 | ||||||||||||||
Operating
leases (2)
|
17,105 | 7,254 | 7,803 | 1,640 | 408 | ||||||||||||||
Purchase
obligations (3)
|
297,771 | 255,647 | 36,867 | 5,257 | ― | ||||||||||||||
Total
(4)
|
$ | 1,932,238 | $ | 414,754 | $ | 395,677 | $ | 607,322 | $ | 514,485 |
(1)
|
Long-term
debt represents senior and senior subordinated notes payable and secured
project debt and other notes payable. For a more detailed description of
our long-term debt, please see Note 7 in our accompanying consolidated
financial statements.
|
(2)
|
For
a more detailed description of our operating leases, please see Note 13.e.
in our accompanying consolidated financial
statements.
|
(3)
|
Includes
approximately $75.3 million (net of deposits) in non-refundable land
purchase and option contracts and $221.0 million in commitments under
development and construction contracts. For a more detailed description of
our land purchase and option contracts, please see “—Off-Balance Sheet
Arrangements” below and Note 13.a. in our accompanying consolidated
financial statements.
|
(4)
|
The
table above excludes $11.4 million of nonrecognized tax benefits as of
December 31, 2009. Due to the uncertainty of the timing of
settlement with taxing authorities, we are unable to make reasonable
estimates of the period of cash settlements. For a more
detailed description of our unrecognized tax benefit, please see Note 14
to our accompanying consolidated financial
statements.
|
· accessing
lot positions
· establishing
strategic alliances
· leveraging
our capital base
|
· expanding
our market opportunities
· managing
the financial and market risk associated with land
holdings
|
·
|
joint
venture loans (including to replace expiring loans, to satisfy loan
remargin and land development and construction completion obligations, and
to satisfy environmental indemnity
obligations)
|
·
|
joint
venture development and construction costs and cost overruns (including
the funding of the joint venture partner’s share when the partner is
unable or unwilling to make the required
contribution)
|
·
|
indemnity
obligations to joint venture surety
providers
|
·
|
joint
venture land takedown obligations
|
·
|
joint
venture unwinds (including the satisfaction of joint venture indebtedness
either through repayment or the assumption of such indebtedness, payments
required to be made to our partners in connection with the unwind, and the
remaining cost to complete former joint venture
projects)
|
·
|
Renegotiation/Loan Extension
& Loan-to-Value Maintenance Related Payments. During
the year ended December 31, 2009, we extended the loan maturity dates for
four of our joint ventures and made $14.7 million in remargin payments
related to two of these joint ventures. As of the date hereof,
the maturity dates of our three joint venture recourse loans range from
June 2010 to January 2011.
|
·
|
Purchases and
Consolidation. During the year ended December 31, 2009,
we purchased and unwound three Southern California joint
ventures. In connection with these transactions, we made
aggregate payments of approximately $1.1 million, assumed $77.3 million of
joint venture indebtedness, assumed 120 completed podium units, 57
finished lots, 16 completed or partially completed homes, and six model
homes. As of December 31, 2009, we had sold and delivered 102
of the assumed podium units and five of the completed
homes.
|
·
|
Joint Ventures
Exited. During the year ended December 31, 2009, we
exited our Chicago joint venture for a $7.3 million cash payment and
eliminated $19.8 million of joint venture recourse debt. In
addition, our Tucson, Arizona joint venture (included in discontinued
operations) forfeited the joint venture’s remaining real estate to the
lender in exchange for the elimination of approximately $23.8 million of
joint venture non-recourse debt.
|
·
|
North Las Vegas Joint
Venture. In May 2009, our joint venture in Las Vegas
filed for reorganization under Chapter 11 of the Bankruptcy
Code. The bankruptcy court confirmed the plan in October 2009,
which became effective subject to the resolution of any appeals on
November 19, 2009. The reorganization resulted in a reduction
of the joint venture’s debt balance to $178.4 million, all of which is
nonrecourse to us. In connection with implementation of the
plan we funded approximately $7.8 million to the joint venture during the
2009 fourth quarter, including $6.2 million to purchase approximately 59
acres of residential land from the venture. As of the date
hereof, there are two matters, which are not expected to impact the
confirmation of the plan, that require resolution before the bankruptcy
court is able to formally close the
case.
|
·
|
selecting,
terminating or setting compensation levels for management that sets
policies and procedures for the
entity;
|
·
|
establishing
and approving operating and capital decisions of the entity, including
budgets, in the ordinary course of
business;
|
·
|
setting
and approving sales price releases;
and
|
·
|
approving
material contracts.
|
·
|
determining
whether there are significant barriers that would prevent the limited
partners or non-managing members from exercising their
rights;
|
·
|
analyzing
the level of participatory rights possessed by the limited partners or
non-managing members relative to the rights retained by the general
partner or managing member;
|
·
|
evaluating
whether the limited partners or non-managing members exercise their rights
in the ordinary course of business;
and
|
·
|
evaluating
the ownership and economic interests of the general partner or managing
member relative to the limited partners’ or non-managing members’
ownership interests.
|
·
|
historical
and projected revenue and volume
levels;
|
·
|
historical
and projected gross margins and pretax income
levels;
|
·
|
historical
and projected inventory turn ratio;
and
|
·
|
estimated
capital requirements.
|
·
|
the
alignment of our overhead structure with current delivery levels and our
speculative starts with sales;
|
·
|
our
belief that our restructuring activities are substantially complete and
the amount of savings that will result from such
restructuring;
|
·
|
our
efforts to generate cash, reduce real estate inventories and to better
align our land supply with the current levels of new housing
demand;
|
·
|
the
potential need for, and magnitude of, unanticipated joint venture
expenditures requiring the use of our
funds;
|
·
|
our
ability to obtain reimbursement from our partners for their share of joint
venture remargin obligations;
|
·
|
the
potential for additional impairments and further deposit and capitalized
preacquisition cost write-offs;
|
·
|
our
ability to renegotiate, restructure or extend joint venture loans on
acceptable terms;
|
·
|
a
slowdown in demand and a decline in new home
orders;
|
·
|
housing
market conditions and trends in the geographic markets in which we
operate;
|
·
|
our
expectations about sales orders, sales cancellation rates, the value and
delivery of our backlog;
|
·
|
the
likelihood that we will be required to complete lot takedowns on
uneconomic terms;
|
·
|
the
future availability of lot option
structures;
|
·
|
our
ability to obtain surety bonds, the need to provide security to obtain
surety bonds, and the impact on our
liquidity;
|
·
|
the
sufficiency of our capital resources and ability to access additional
capital, including the sufficiency of unrestricted funds available to
satisfy joint venture obligations and make other restricted
payments;
|
·
|
continuation
of our historical leverage trends;
|
·
|
our
exposure to loss with respect to land under purchase contract and optioned
property;
|
·
|
the
extent of our liability for VIE obligations and the estimates we utilize
in making VIE determinations;
|
·
|
expected
performance by derivative
counterparties;
|
·
|
estimated
remaining cost to complete the infrastructure of our
projects;
|
·
|
future
warranty costs;
|
·
|
litigation
outcomes and related costs;
|
·
|
our
ability to comply with the covenants contained in our debt
instruments;
|
·
|
the
estimated fair value of our swap
agreements;
|
·
|
the
market risk associated with loans originated by Standard Pacific Mortgage,
Inc.;
|
·
|
plans
to purchase our notes prior to maturity and to engage in debt exchange
transactions;
|
·
|
our
intention to continue to utilize joint venture
arrangements;
|
·
|
our
future marketing plans and
strategies;
|
·
|
trends
relating to forced mortgage loan
repurchases;
|
·
|
the
extent and magnitude of our exposure to defective Chinese
drywall;
|
·
|
changes
to our unrealized tax benefits;
|
·
|
the
expected equity award forfeiture rates and vesting periods of unrecognized
compensation expense;
|
·
|
our
ability to realize the value of our deferred tax assets;
and
|
·
|
the
impact of recent accounting
standards.
|
Expected
Maturity Date
|
||||||||||||||||||||||||||||
Estimated
|
||||||||||||||||||||||||||||
December
31,
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
Fair
Value
|
||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||
Mortgage
loans held for sale (1)
|
$
|
41,048
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
41,048
|
$
|
41,048
|
||||||||||||
Average
interest rate
|
4.9%
|
―
|
―
|
―
|
―
|
―
|
4.9%
|
|||||||||||||||||||||
Mortgage loans held for investment |
$
|
141
|
$
|
151
|
$
|
162
|
$
|
174
|
$
|
187
|
$
|
10,003
|
$
|
10,818
|
$
|
10,818
|
||||||||||||
Average
interest rate
|
7.3%
|
7.3%
|
7.4%
|
7.4%
|
7.4%
|
7.8%
|
7.8%
|
|||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||
Fixed
rate debt
|
$
|
58,256
|
$
|
64,943
|
$
|
116,117
|
$
|
121,583
|
$
|
150,000
|
$
|
455,000
|
$
|
965,899
|
$
|
914,719
|
||||||||||||
Average
interest rate
|
5.3%
|
6.3%
|
8.0%
|
7.8%
|
6.3%
|
9.3%
|
7.9%
|
|||||||||||||||||||||
Variable
rate debt
|
$
|
40,995
|
$
|
―
|
$
|
―
|
$
|
225,000
|
$
|
―
|
$
|
―
|
$
|
265,995
|
$
|
227,745
|
||||||||||||
Average
interest rate
|
4.6%
|
―
|
―
|
7.3%
|
―
|
―
|
6.8%
|
|||||||||||||||||||||
Off-Balance
Sheet Financial Instruments:
|
||||||||||||||||||||||||||||
Commitments
to originate mortgage
loans:
|
||||||||||||||||||||||||||||
Notional
amount
|
$
|
45,774
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
45,774
|
$
|
46,481
|
||||||||||||
Average
interest rate
|
4.9%
|
―
|
―
|
―
|
―
|
―
|
4.9%
|
(1)
|
Substantially
all of the amounts presented in this line item for 2010 reflect the
expected date of disposition of certain loans rather than the actual
scheduled maturity dates of these
mortgages.
|
|
/s/
ERNST &
YOUNG
LLP
|
|
Irvine,
California
|
|
March
5, 2010
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||||
Homebuilding:
|
||||||||||||
Home
sale revenues
|
$
|
1,060,502
|
$
|
1,521,640
|
$
|
2,607,824
|
||||||
Land
sale revenues
|
105,895
|
13,976
|
281,009
|
|||||||||
Total
revenues
|
1,166,397
|
1,535,616
|
2,888,833
|
|||||||||
Cost
of home sales
|
(907,058)
|
(2,107,758)
|
(2,520,264)
|
|||||||||
Cost
of land sales
|
(117,517)
|
(124,786)
|
(568,539)
|
|||||||||
Total
cost of sales
|
(1,024,575)
|
(2,232,544)
|
(3,088,803)
|
|||||||||
Gross
margin
|
141,822
|
(696,928)
|
(199,970)
|
|||||||||
Selling,
general and administrative expenses
|
(191,488)
|
(305,480)
|
(387,981)
|
|||||||||
Loss
from unconsolidated joint ventures
|
(4,717)
|
(151,729)
|
(190,025)
|
|||||||||
Interest
expense
|
(47,458)
|
(10,380)
|
―
|
|||||||||
Gain
(loss) on early extinguishment of debt
|
(6,931)
|
(15,695)
|
1,087
|
|||||||||
Other
income (expense)
|
(2,296)
|
(57,628)
|
(69,697)
|
|||||||||
Homebuilding
pretax loss
|
(111,068)
|
(1,237,840)
|
(846,586)
|
|||||||||
Financial
Services:
|
||||||||||||
Revenues
|
13,145
|
13,587
|
16,677
|
|||||||||
Expenses
|
(11,817)
|
(13,659)
|
(16,045)
|
|||||||||
Income
from unconsolidated joint ventures
|
119
|
854
|
1,050
|
|||||||||
Other
income
|
139
|
234
|
611
|
|||||||||
Financial
services pretax income
|
1,586
|
1,016
|
2,293
|
|||||||||
Loss
from continuing operations before income taxes
|
(109,482)
|
(1,236,824)
|
(844,293)
|
|||||||||
Benefit
for income taxes
|
96,265
|
5,495
|
149,003
|
|||||||||
Loss
from continuing operations
|
(13,217)
|
(1,231,329)
|
(695,290)
|
|||||||||
Loss
from discontinued operations, net of income taxes
|
(569)
|
(2,286)
|
(52,540)
|
|||||||||
Loss
from disposal of discontinued operations, net of income
taxes
|
―
|
―
|
(19,550)
|
|||||||||
Net
loss
|
(13,786)
|
(1,233,615)
|
(767,380)
|
|||||||||
Less:
Net loss allocated to preferred shareholders
|
8,371
|
489,229
|
―
|
|||||||||
Net
loss available to common stockholders
|
$
|
(5,415)
|
$
|
(744,386)
|
$
|
(767,380)
|
||||||
Basic
Loss Per Common Share:
|
||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
|||||||||
Basic
loss per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
||||||
Diluted
Loss Per Common Share:
|
||||||||||||
Continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
||||||
Discontinued
operations
|
―
|
(0.02)
|
(1.00)
|
|||||||||
Diluted
loss per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
||||||
Weighted
Average Common Shares Outstanding:
|
||||||||||||
Basic
|
95,623,851
|
81,439,248
|
72,157,394
|
|||||||||
Diluted
|
95,623,851
|
81,439,248
|
72,157,394
|
|||||||||
Weighted
Average If-Converted Preferred Shares Outstanding:
|
147,812,786
|
53,523,829
|
―
|
|||||||||
Cash dividends per
share
|
$
|
―
|
$
|
―
|
$
|
0.12
|
December
31,
|
|||||||||
2009
|
2008
|
||||||||
(Dollars
in thousands)
|
|||||||||
ASSETS
|
|||||||||
Homebuilding:
|
|||||||||
Cash
and equivalents
|
$
|
587,152
|
$
|
622,157
|
|||||
Restricted
cash
|
15,070
|
4,222
|
|||||||
Trade
and other receivables
|
12,676
|
21,008
|
|||||||
Inventories:
|
|||||||||
Owned
|
986,322
|
1,262,521
|
|||||||
Not
owned
|
11,770
|
42,742
|
|||||||
Investments
in unconsolidated joint ventures
|
40,415
|
50,468
|
|||||||
Deferred
income taxes, net
|
9,431
|
14,122
|
|||||||
Other
assets
|
131,086
|
145,567
|
|||||||
1,793,922
|
2,162,807
|
||||||||
Financial
Services:
|
|||||||||
Cash
and equivalents
|
8,407
|
3,681
|
|||||||
Restricted
cash
|
3,195
|
4,295
|
|||||||
Mortgage
loans held for sale, net
|
41,048
|
63,960
|
|||||||
Mortgage
loans held for investment, net
|
10,818
|
11,736
|
|||||||
Other
assets
|
3,621
|
4,792
|
|||||||
67,089
|
88,464
|
||||||||
Assets
of discontinued operations
|
―
|
1,217
|
|||||||
Total
Assets
|
$
|
1,861,011
|
$
|
2,252,488
|
|||||
LIABILITIES
AND EQUITY
|
|||||||||
Homebuilding:
|
|||||||||
Accounts
payable
|
$
|
22,702
|
$
|
40,225
|
|||||
Accrued
liabilities
|
196,135
|
216,418
|
|||||||
Liabilities
from inventories not owned
|
3,713
|
24,929
|
|||||||
Revolving
credit facility
|
―
|
47,500
|
|||||||
Secured
project debt and other notes payable
|
59,531
|
111,214
|
|||||||
Senior
notes payable
|
993,018
|
1,204,501
|
|||||||
Senior
subordinated notes payable
|
104,177
|
123,222
|
|||||||
1,379,276
|
1,768,009
|
||||||||
Financial
Services:
|
|||||||||
Accounts
payable and other liabilities
|
1,436
|
3,657
|
|||||||
Mortgage
credit facilities
|
40,995
|
63,655
|
|||||||
42,431
|
67,312
|
||||||||
Liabilities
of discontinued operations
|
―
|
1,331
|
|||||||
Total
Liabilities
|
1,421,707
|
1,836,652
|
|||||||
Equity:
|
|||||||||
Stockholders'
Equity:
|
|||||||||
Preferred
stock, $0.01 par value; 10,000,000 shares authorized;
450,829
|
|||||||||
issued
and outstanding at December 31, 2009 and 2008,
respectively
|
5
|
5
|
|||||||
Common
stock, $0.01 par value; 600,000,000 shares authorized;105,293,180
and
|
|||||||||
100,624,350
shares issued and outstanding at December 31, 2009 and 2008,
respectively
|
1,053
|
1,006
|
|||||||
Additional
paid-in capital
|
1,030,664
|
996,492
|
|||||||
Accumulated
deficit
|
(580,628)
|
(566,842)
|
|||||||
Accumulated
other comprehensive loss, net of tax
|
(15,296)
|
(22,720)
|
|||||||
Total
Stockholders' Equity
|
435,798
|
407,941
|
|||||||
Noncontrolling
interest
|
3,506
|
7,895
|
|||||||
Total
Equity
|
439,304
|
415,836
|
|||||||
Total
Liabilities and Equity
|
$
|
1,861,011
|
$
|
2,252,488
|
Years
Ended December 31, 2007, 2008 and 2009
|
Number
of Preferred
Shares
|
Preferred
Stock
|
Number
of Common
Shares
|
Common
Stock
|
Additional
Paid in Capital
|
Retained
Earnings (Deficit)
|
Accumulated
Other Comprehensive Loss
|
Total
Stockholders'
Equity
|
Noncontrolling
Interest
|
Total
Equity
|
|||||||||||||||||||
(Dollars
in thousands, except per share amounts)
|
|||||||||||||||||||||||||||||
Balance,
December 31, 2006
|
―
|
$
|
―
|
64,422,548
|
$
|
644
|
$
|
323,099
|
$
|
1,446,043
|
$
|
(5,416)
|
$
|
1,764,370
|
$
|
69,287
|
$
|
1,833,657
|
|||||||||||
ASC
Topic 740 adoption (FIN 48)
|
―
|
―
|
―
|
―
|
―
|
(4,112)
|
―
|
(4,112)
|
―
|
(4,112)
|
|||||||||||||||||||
Net
loss
|
―
|
―
|
―
|
―
|
―
|
(767,380)
|
―
|
(767,380)
|
―
|
(767,380)
|
|||||||||||||||||||
Change
in fair value of interest rate swaps,
|
|||||||||||||||||||||||||||||
net
of tax
|
―
|
―
|
―
|
―
|
―
|
―
|
(7,267)
|
(7,267)
|
―
|
(7,267)
|
|||||||||||||||||||
Comprehensive
loss
|
(774,647)
|
―
|
(774,647)
|
||||||||||||||||||||||||||
Stock
issuances under employee plans,
|
|||||||||||||||||||||||||||||
including
income tax benefits
|
―
|
―
|
533,231
|
5
|
5,373
|
―
|
―
|
5,378
|
―
|
5,378
|
|||||||||||||||||||
Issuance
of common stock under share
|
|||||||||||||||||||||||||||||
lending
facility
|
―
|
―
|
7,839,809
|
79
|
―
|
―
|
―
|
79
|
―
|
79
|
|||||||||||||||||||
Convertible
Note issuance (Note 2.x.)
|
―
|
―
|
―
|
―
|
39,395
|
―
|
―
|
39,395
|
―
|
39,395
|
|||||||||||||||||||
Repurchase
of and retirement of common
|
|||||||||||||||||||||||||||||
stock,
net of expenses
|
―
|
―
|
(105,993)
|
(1)
|
(2,900)
|
―
|
―
|
(2,901)
|
―
|
(2,901)
|
|||||||||||||||||||
Cash
dividends declared ($0.12 per share)
|
―
|
―
|
―
|
―
|
―
|
(7,778)
|
―
|
(7,778)
|
―
|
(7,778)
|
|||||||||||||||||||
Senior
subordinated convertible notes
|
|||||||||||||||||||||||||||||
hedge
payments, net of taxes
|
―
|
―
|
―
|
―
|
(5,655)
|
―
|
―
|
(5,655)
|
―
|
(5,655)
|
|||||||||||||||||||
Amortization
of stock-based compensation
|
―
|
―
|
―
|
―
|
20,150
|
―
|
―
|
20,150
|
―
|
20,150
|
|||||||||||||||||||
Change
in noncontrolling interest
|
|||||||||||||||||||||||||||||
attributable
to lot option contracts
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
(31,086)
|
(31,086)
|
|||||||||||||||||||
Balance,
December 31, 2007
|
―
|
―
|
72,689,595
|
727
|
379,462
|
666,773
|
(12,683)
|
1,034,279
|
38,201
|
1,072,480
|
|||||||||||||||||||
Net
loss
|
―
|
―
|
―
|
―
|
―
|
(1,233,615)
|
―
|
(1,233,615)
|
―
|
(1,233,615)
|
|||||||||||||||||||
Change
in fair value of interest rate swaps,
|
|||||||||||||||||||||||||||||
net
of tax
|
―
|
―
|
―
|
―
|
―
|
―
|
(10,037)
|
(10,037)
|
―
|
(10,037)
|
|||||||||||||||||||
Comprehensive
loss
|
(1,243,652)
|
―
|
(1,243,652)
|
||||||||||||||||||||||||||
Issuance
of Preferred Stock, net of
|
|||||||||||||||||||||||||||||
issuance
costs
|
450,829
|
5
|
―
|
―
|
410,844
|
―
|
―
|
410,849
|
―
|
410,849
|
|||||||||||||||||||
Issuance
of Warrant, net of issuance costs
|
―
|
―
|
―
|
―
|
131,759
|
―
|
―
|
131,759
|
―
|
131,759
|
|||||||||||||||||||
Convertible
Note exchanged for
|
|||||||||||||||||||||||||||||
Warrant
(Note 2.x.)
|
―
|
―
|
―
|
―
|
(7,633)
|
―
|
―
|
(7,633)
|
―
|
(7,633)
|
|||||||||||||||||||
Issuance
of common shares in connection
|
|||||||||||||||||||||||||||||
with
rights offering, net of issuance costs
|
―
|
―
|
27,187,137
|
272
|
78,160
|
―
|
―
|
78,432
|
―
|
78,432
|
|||||||||||||||||||
Stock
issuances under employee plans,
|
|||||||||||||||||||||||||||||
including
income tax benefits
|
―
|
―
|
963,149
|
9
|
(6,486)
|
―
|
―
|
(6,477)
|
―
|
(6,477)
|
|||||||||||||||||||
Repurchase
of and retirement of common
|
|||||||||||||||||||||||||||||
stock,
net of expenses
|
―
|
―
|
(215,531)
|
(2)
|
(724)
|
―
|
―
|
(726)
|
―
|
(726)
|
|||||||||||||||||||
Amortization
of stock-based compensation
|
―
|
―
|
―
|
―
|
11,110
|
―
|
―
|
11,110
|
―
|
11,110
|
|||||||||||||||||||
Change
in noncontrolling interest
|
|||||||||||||||||||||||||||||
attributable
to lot option contracts
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
(30,306)
|
(30,306)
|
|||||||||||||||||||
Balance,
December 31, 2008
|
450,829
|
5
|
100,624,350
|
1,006
|
996,492
|
(566,842)
|
(22,720)
|
407,941
|
7,895
|
415,836
|
|||||||||||||||||||
Net
loss
|
―
|
―
|
―
|
―
|
―
|
(13,786)
|
―
|
(13,786)
|
―
|
(13,786)
|
|||||||||||||||||||
Change
in fair value of interest rate swaps,
|
|||||||||||||||||||||||||||||
net
of tax
|
―
|
―
|
―
|
―
|
―
|
―
|
7,424
|
7,424
|
―
|
7,424
|
|||||||||||||||||||
Comprehensive
loss
|
(6,362)
|
―
|
(6,362)
|
||||||||||||||||||||||||||
Issuance of
common stock in connection
|
|||||||||||||||||||||||||||||
with
debt for equity exchange
|
―
|
―
|
7,640,463
|
76
|
24,455
|
―
|
―
|
24,531
|
―
|
24,531
|
|||||||||||||||||||
Stock
issuances under employee plans,
|
|||||||||||||||||||||||||||||
including
income tax benefits
|
―
|
―
|
948,272
|
10
|
929
|
―
|
―
|
939
|
―
|
939
|
|||||||||||||||||||
Common
stock returned under share lending
|
|||||||||||||||||||||||||||||
facility
|
―
|
―
|
(3,919,905)
|
(39)
|
39
|
―
|
―
|
―
|
―
|
―
|
|||||||||||||||||||
Amortization
of stock-based compensation
|
―
|
―
|
―
|
―
|
8,749
|
―
|
―
|
8,749
|
―
|
8,749
|
|||||||||||||||||||
Change
in noncontrolling interest
|
|||||||||||||||||||||||||||||
attributable
to lot option contracts
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
―
|
(4,389)
|
(4,389)
|
|||||||||||||||||||
Balance,
December 31, 2009
|
450,829
|
$
|
5
|
105,293,180
|
$
|
1,053
|
$
|
1,030,664
|
$
|
(580,628)
|
$
|
(15,296)
|
$
|
435,798
|
$
|
3,506
|
$
|
439,304
|
Year
Ended December 31,
|
|||||||||||||
2009
|
2008
|
2007
|
|||||||||||
(Dollars
in thousands)
|
|||||||||||||
Cash
Flows From Operating Activities:
|
|||||||||||||
Income
(loss) from continuing operations
|
$
|
(13,217)
|
$
|
(1,231,329)
|
$
|
(695,290)
|
|||||||
Income
(loss) from discontinued operations, net of income taxes
|
(569)
|
(2,286)
|
(52,540)
|
||||||||||
Loss
from disposal of discontinued operations, net of income
taxes
|
―
|
―
|
(19,550)
|
||||||||||
Adjustments
to reconcile net income (loss) to net cash provided by (used
in)
|
|||||||||||||
operating
activities:
|
|||||||||||||
Loss
from unconsolidated joint ventures
|
4,598
|
150,875
|
198,674
|
||||||||||
Cash
distributions of income from unconsolidated joint ventures
|
3,465
|
1,975
|
16,717
|
||||||||||
Depreciation
and amortization
|
3,516
|
6,634
|
8,396
|
||||||||||
Loss
on disposal of property and equipment
|
2,611
|
2,792
|
1,439
|
||||||||||
(Gain)
loss on early extinguishment of debt
|
6,931
|
15,695
|
(1,087)
|
||||||||||
Amortization
of stock-based compensation
|
12,864
|
11,110
|
20,150
|
||||||||||
Excess
tax benefits from share-based payment arrangements
|
(297)
|
―
|
(1,498)
|
||||||||||
Deferred
income taxes
|
(45,133)
|
(343,754)
|
(135,741)
|
||||||||||
Deferred
tax asset valuation allowance
|
(51,429)
|
473,627
|
180,480
|
||||||||||
Inventory
impairment charges and write-offs of deposits and
capitalized
|
|||||||||||||
preacquisition
costs
|
62,940
|
968,743
|
815,145
|
||||||||||
Goodwill
impairment charges
|
―
|
35,522
|
65,754
|
||||||||||
Changes
in cash and equivalents due to:
|
|||||||||||||
Trade
and other receivables
|
8,440
|
6,408
|
45,083
|
||||||||||
Mortgage
loans held for sale
|
24,718
|
91,380
|
99,618
|
||||||||||
Inventories
- owned
|
326,062
|
34,567
|
399,432
|
||||||||||
Inventories
- not owned
|
(2,805)
|
1,049
|
10,449
|
||||||||||
Other
assets
|
118,265
|
142,834
|
(245,723)
|
||||||||||
Accounts
payable
|
(18,554)
|
(57,949)
|
(13,105)
|
||||||||||
Accrued
liabilities
|
(22,576)
|
(44,742)
|
(41,245)
|
||||||||||
Net
cash provided by (used in) operating activities
|
419,830
|
263,151
|
655,558
|
||||||||||
Cash
Flows From Investing Activities:
|
|||||||||||||
Proceeds
from disposition of discontinued operations
|
―
|
―
|
40,850
|
||||||||||
Investments
in unconsolidated homebuilding joint ventures
|
(28,600)
|
(113,493)
|
(329,258)
|
||||||||||
Distributions
from unconsolidated homebuilding joint ventures
|
3,524
|
104,164
|
115,412
|
||||||||||
Other
investing activities
|
(2,225)
|
(2,250)
|
(24,819)
|
||||||||||
Net
cash provided by (used in) investing activities
|
(27,301)
|
(11,579)
|
(197,815)
|
||||||||||
Cash
Flows From Financing Activities:
|
|||||||||||||
Change
in restricted cash
|
(9,748)
|
(8,517)
|
―
|
||||||||||
Net
proceeds from (payments on) revolving credit facility
|
(47,500)
|
(42,500)
|
(199,500)
|
||||||||||
Principal
payments on secured project debt and other notes
payable
|
(125,984)
|
(20,318)
|
(8,512)
|
||||||||||
Redemption
of senior notes payable
|
(466,689)
|
(167,375)
|
(46,235)
|
||||||||||
Proceeds
from the issuance of senior subordinated convertible notes
|
―
|
―
|
100,000
|
||||||||||
Proceeds
from the issuance of senior notes payable
|
257,592
|
―
|
―
|
||||||||||
Payment of debt issuance costs | (8,764) | ― | (3,000) | ||||||||||
Purchase
of senior subordinated convertible note hedge
|
―
|
―
|
(9,120)
|
||||||||||
Net
proceeds from (payments on) mortgage credit facilities
|
(22,660)
|
(100,517)
|
(86,735)
|
||||||||||
Excess
tax benefits from share-based payment arrangements
|
297
|
―
|
1,555
|
||||||||||
Dividends
paid
|
―
|
―
|
(7,778)
|
||||||||||
Repurchases
of common stock
|
―
|
(726)
|
(2,901)
|
||||||||||
Net
proceeds from the issuance of preferred stock and the issuance of
warrant
|
―
|
404,233
|
―
|
||||||||||
Net
proceeds from the issuance of common stock
|
―
|
78,432
|
79
|
||||||||||
Proceeds
from the exercise of stock options
|
641
|
―
|
3,862
|
||||||||||
Net
cash provided (used in) by financing activities
|
(422,815)
|
142,712
|
(258,285)
|
||||||||||
Net
increase (decrease) in cash and equivalents
|
(30,286)
|
394,284
|
199,458
|
||||||||||
Cash
and equivalents at beginning of year
|
625,845
|
231,561
|
32,103
|
||||||||||
Cash
and equivalents at end of year
|
$
|
595,559
|
$
|
625,845
|
$
|
231,561
|
|||||||
Cash
and equivalents at end of year
|
$
|
595,559
|
$
|
625,845
|
$
|
231,561
|
|||||||
Homebuilding
restricted cash at end of year
|
15,070
|
4,222
|
―
|
||||||||||
Financial
services restricted cash at end of year
|
3,195
|
4,295
|
―
|
||||||||||
Cash
and equivalents and restricted cash at end of year
|
$
|
613,824
|
$
|
634,362
|
$
|
231,561
|
Year Ended December 31,
|
||||||
State
|
2009
|
2008
|
2007
|
|||
California
|
41%
|
38%
|
33%
|
|||
Florida
|
22
|
18
|
16
|
|||
Arizona
|
8
|
11
|
13
|
|||
Texas
|
12
|
13
|
12
|
|||
Carolinas
|
12
|
11
|
12
|
|||
Colorado
|
4
|
5
|
5
|
|||
Nevada
|
1
|
1
|
1
|
|||
Discontinued
operations
|
―
|
3
|
8
|
|||
Total
|
100%
|
100%
|
100%
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Warranty
accrual, beginning of the year
|
$ | 19,998 | $ | 30,790 | $ | 32,384 | ||||||
Warranty
costs accrued during the year
|
5,931 | 10,512 | 14,195 | |||||||||
Warranty
costs paid during the year
|
(4,232 | ) | (9,215 | ) | (12,427 | ) | ||||||
Adjustments
to warranty accrual during the year
|
909 | (12,089 | ) | (3,362 | ) | |||||||
Warranty
accrual, end of the year
|
$ | 22,606 | $ | 19,998 | $ | 30,790 |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
Total
|
||||||||||
(Dollars in thousands) | ||||||||||||
Employee
severance costs
|
$ | 14,844 | $ | 14,066 | $ | 28,910 | ||||||
Lease
termination and other exit costs
|
5,480 | 7,937 | 13,417 | |||||||||
Property
and equipment disposals
|
2,048 | 2,290 | 4,338 | |||||||||
$ | 22,372 | $ | 24,293 | $ | 46,665 |
Year
Ended December 31, 2009
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination
and
Other
Costs
|
Property
and
Equipment
Disposals
|
Total
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Restructuring
accrual, beginning of the year
|
$
|
4,917
|
$
|
6,045
|
$
|
―
|
$
|
10,962
|
|||||
Restructuring
costs accrued and other adjustments during the year
|
14,844
|
5,480
|
2,048
|
22,372
|
|||||||||
Restructuring
costs paid during the year
|
(18,344)
|
(5,715)
|
―
|
(24,059)
|
|||||||||
Non-cash
settlements
|
―
|
―
|
(2,048)
|
(2,048)
|
|||||||||
Restructuring
accrual, end of the year
|
$
|
1,417
|
$
|
5,810
|
$
|
―
|
$
|
7,227
|
|||||
Year
Ended December 31, 2008
|
|||||||||||||
Employee
Severance
Costs
|
Lease
Termination
and
Other
Costs
|
Property
and
Equipment
Disposals
|
Total
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Restructuring
accrual, beginning of the year
|
$
|
―
|
$
|
1,164
|
$
|
―
|
$
|
1,164
|
|||||
Restructuring
costs accrued and other adjustments during the year
|
14,066
|
7,937
|
2,290
|
24,293
|
|||||||||
Restructuring
costs paid during the year
|
(9,149)
|
(3,056)
|
―
|
(12,205)
|
|||||||||
Non-cash
settlements
|
―
|
―
|
(2,290)
|
(2,290)
|
|||||||||
Restructuring
accrual, end of the year
|
$
|
4,917
|
$
|
6,045
|
$
|
―
|
$
|
10,962
|
Year
Ended December 31,
|
|||||||||
2009
|
2008
|
2007
|
|||||||
(Dollars
in thousands)
|
|||||||||
Total
interest incurred
|
$
|
107,976
|
$
|
135,693
|
$
|
138,553
|
|||
Less:
Interest capitalized to inventories owned
|
(57,338)
|
(115,107)
|
(124,259)
|
||||||
Less:
Interest capitalized to investments in unconsolidated joint
ventures
|
(3,180)
|
(10,206)
|
(14,294)
|
||||||
Interest
expense
|
$
|
47,458
|
$
|
10,380
|
$
|
―
|
|||
Interest
previously capitalized to inventories owned, included in home cost of
sales
|
$
|
67,522
|
$
|
83,053
|
$
|
98,497
|
|||
Interest
previously capitalized to inventories owned, included in land cost of
sales
|
$
|
19,313
|
$
|
1,019
|
$
|
32,792
|
|||
Interest
previously capitalized to investments in unconsolidated
joint
|
|||||||||
ventures,
included in loss from unconsolidated joint ventures
|
$
|
5,680
|
$
|
4,438
|
$
|
8,138
|
|||
Interest
capitalized in ending inventories owned (1)
|
$
|
141,463
|
$
|
169,431
|
$
|
127,335
|
|||
Interest
capitalized as a percentage of inventories owned
|
14.3%
|
13.4%
|
6.2%
|
||||||
Interest
capitalized in ending investments in unconsolidated joint ventures
(1)
|
$
|
1,939
|
$
|
5,968
|
$
|
11,261
|
|||
Interest
capitalized as a percentage of investments in unconsolidated joint
ventures
|
4.8%
|
11.8%
|
3.8%
|
(1)
|
During
the years ended December 31, 2009, 2008 and 2007, in connection with lot
purchases from our unconsolidated joint ventures and joint venture
purchases and unwinds, $1.5 million, $11.1 million and $4.6 million,
respectively, of capitalized interest was transferred from investments in
unconsolidated joint ventures to inventories
owned.
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Homebuilding
revenues:
|
||||||||||||
California
|
$ | 665,414 | $ | 796,737 | $ | 1,484,047 | ||||||
Southwest
(1)
|
238,249 | 416,749 | 793,455 | |||||||||
Southeast
|
262,734 | 322,130 | 611,331 | |||||||||
Total
homebuilding revenues
|
$ | 1,166,397 | $ | 1,535,616 | $ | 2,888,833 | ||||||
Homebuilding
pretax income (loss):
|
||||||||||||
California
|
$ | (16,817 | ) | $ | (724,047 | ) | $ | (524,913 | ) | |||
Southwest
(1)
|
(28,950 | ) | (257,031 | ) | (165,714 | ) | ||||||
Southeast
|
(30,880 | ) | (222,586 | ) | (150,829 | ) | ||||||
Corporate
|
(34,421 | ) | (34,176 | ) | (5,130 | ) | ||||||
Total
homebuilding pretax income (loss)
|
$ | (111,068 | ) | $ | (1,237,840 | ) | $ | (846,586 | ) | |||
Homebuilding
income (loss) from unconsolidated joint ventures:
|
||||||||||||
California
|
$ | 6,727 | $ | (96,005 | ) | $ | (150,057 | ) | ||||
Southwest
(1)
|
(11,487 | ) | (46,116 | ) | (35,271 | ) | ||||||
Southeast
|
43 | (9,608 | ) | (4,697 | ) | |||||||
Total
homebuilding income (loss) from unconsolidated joint
ventures
|
$ | (4,717 | ) | $ | (151,729 | ) | $ | (190,025 | ) | |||
Restructuring
charges:
|
||||||||||||
California
|
$ | 2,167 | $ | 10,511 | $ | ― | ||||||
Southwest
(1)
|
2,172 | 2,394 | ― | |||||||||
Southeast
|
5,052 | 2,570 | ― | |||||||||
Corporate
|
12,750 | 8,691 | ― | |||||||||
Total
restructuring charges
|
$ | 22,141 | $ | 24,166 | $ | ― |
(1)
|
Excludes
our Tucson and San Antonio divisions, which are classified as discontinued
operations.
|
Year
Ended December 31, 2009
|
||||||||||||
California
|
Southwest
(1)
|
Southeast
|
Total
|
|||||||||
(Dollars
in thousands)
|
||||||||||||
Deposit
write-offs
|
$
|
―
|
$
|
1,298
|
$
|
1,192
|
$
|
2,490
|
||||
Inventory
impairments
|
43,313
|
6,987
|
10,150
|
60,450
|
||||||||
Joint
venture impairments
|
―
|
8,141
|
―
|
8,141
|
||||||||
Total
impairments and write-offs
|
$
|
43,313
|
$
|
16,426
|
$
|
11,342
|
$
|
71,081
|
||||
Year
Ended December 31, 2008
|
||||||||||||
California
|
Southwest
(1)
|
Southeast
|
Total
|
|||||||||
(Dollars
in thousands)
|
||||||||||||
Deposit
write-offs
|
$
|
14,950
|
$
|
5,463
|
$
|
5,236
|
$
|
25,649
|
||||
Inventory
impairments
|
578,057
|
192,929
|
172,108
|
943,094
|
||||||||
Joint
venture impairments
|
95,192
|
45,818
|
8,255
|
149,265
|
||||||||
Goodwill
impairments
|
2,691
|
8,667
|
24,164
|
35,522
|
||||||||
Total
impairments and write-offs
|
$
|
690,890
|
$
|
252,877
|
$
|
209,763
|
$
|
1,153,530
|
||||
Year
Ended December 31, 2007
|
||||||||||||
California
|
Southwest
(1)
|
Southeast
|
Total
|
|||||||||
(Dollars
in thousands)
|
||||||||||||
Deposit
write-offs
|
$
|
8,674
|
$
|
6,919
|
$
|
6,946
|
$
|
22,539
|
||||
Inventory
impairments
|
406,318
|
168,491
|
130,611
|
705,420
|
||||||||
Joint
venture impairments
|
162,998
|
35,665
|
3,646
|
202,309
|
||||||||
Goodwill
impairments
|
―
|
―
|
54,324
|
54,324
|
||||||||
Total
impairments and write-offs
|
$
|
577,990
|
$
|
211,075
|
$
|
195,527
|
$
|
984,592
|
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Homebuilding
assets:
|
||||||||
California
|
$ | 671,887 | $ | 810,619 | ||||
Southwest
(1)
|
210,058 | 299,039 | ||||||
Southeast
|
181,931 | 275,893 | ||||||
Corporate
|
730,046 | 777,256 | ||||||
Total
homebuilding assets
|
$ | 1,793,922 | $ | 2,162,807 | ||||
Homebuilding
investments in unconsolidated joint ventures:
|
||||||||
California
|
$ | 36,793 | $ | 39,879 | ||||
Southwest
(1)
|
2,762 | 10,073 | ||||||
Southeast
|
860 | 516 | ||||||
Total
homebuilding investments in unconsolidated joint ventures
|
$ | 40,415 | $ | 50,468 |
(1)
|
Excludes
our Tucson and San Antonio divisions, which are classified as discontinued
operations.
|
December
31, 2009
|
||||||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Land
and land under development
|
$ | 335,528 | $ | 125,823 | $ | 103,165 | $ | 564,516 | ||||||||
Homes
completed and under construction
|
207,719 | 57,641 | 50,963 | 316,323 | ||||||||||||
Model
homes
|
75,089 | 12,815 | 17,579 | 105,483 | ||||||||||||
Total
inventories owned
|
$ | 618,336 | $ | 196,279 | $ | 171,707 | $ | 986,322 | ||||||||
December
31, 2008
|
||||||||||||||||
California
|
Southwest
|
Southeast
|
Total
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Land
and land under development
|
$ | 356,854 | $ | 135,661 | $ | 136,581 | $ | 629,096 | ||||||||
Homes
completed and under construction
|
310,603 | 96,697 | 94,180 | 501,480 | ||||||||||||
Model
homes
|
79,384 | 23,864 | 28,697 | 131,945 | ||||||||||||
Total
inventories owned
|
$ | 746,841 | $ | 256,222 | $ | 259,458 | $ | 1,262,521 |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Inventory
impairments related to:
|
||||||||||||
Land
under development and homes completed and under
construction
|
$ | 46,063 | $ | 827,611 | $ | 414,244 | ||||||
Land
held for sale or sold
|
14,387 | 115,483 | 291,176 | |||||||||
Total
inventory impairments
|
$ | 60,450 | $ | 943,094 | $ | 705,420 | ||||||
Remaining
carrying value of inventory impaired at year end
|
$ | 73,844 | $ | 847,655 | $ | 736,663 | ||||||
Number
of projects impaired during the year
|
27 | 184 | 132 | |||||||||
Total
number of projects included in inventories-owned and reviewed for
impairment during the year (1)
|
262 | 326 | 390 |
(1)
|
Represents
the peak number of real estate projects that we had outstanding during
each respective year. The number of projects outstanding at the
end of each year is less than the number of projects listed
herein.
|
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Land
purchase and lot option deposits
|
$ | 4,543 | $ | 9,910 | ||||
Variable
interest entities, net of deposits
|
5,414 | 7,903 | ||||||
Other
lot option contracts, net of deposits
|
1,813 | 24,929 | ||||||
Total
inventories not owned
|
$ | 11,770 | $ | 42,742 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Income
tax receivables
|
$
|
103,219
|
$
|
115,650
|
||||
Property
and equipment, net
|
4,827
|
8,939
|
||||||
Deferred
debt issuance costs
|
12,389
|
12,175
|
||||||
Prepaid
insurance
|
2,692
|
4,575
|
||||||
Other
assets
|
7,959
|
4,228
|
||||||
Total
homebuilding other assets
|
$
|
131,086
|
$
|
145,567
|
Year
December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Revenues
|
$ | 69,900 | $ | 153,664 | $ | 412,630 | ||||||
Cost
of sales and expenses
|
(344,270 | ) | (293,205 | ) | (630,169 | ) | ||||||
Loss
of unconsolidated joint ventures
|
$ | (274,370 | ) | $ | (139,541 | ) | $ | (217,539 | ) | |||
Loss
from unconsolidated joint ventures reflected in the
|
||||||||||||
accompanying
consolidated statements of operations
|
$ | (4,717 | ) | $ | (151,729 | ) | $ | (190,025 | ) |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Joint
venture impairments related to:
|
||||||||||||
Homebuilding
joint ventures
|
$ | ― | $ | 64,379 | $ | 103,518 | ||||||
Land
development joint ventures
|
8,141 | 84,886 | 98,791 | |||||||||
Total
joint venture impairments
|
$ | 8,141 | $ | 149,265 | $ | 202,309 | ||||||
Number
of projects impaired during the year
|
1 | 20 | 30 | |||||||||
Total
number of projects included in unconsolidated joint
|
||||||||||||
ventures
and reviewed for impairment during the year (1)
|
13 | 39 | 74 |
(1)
|
Represents
the peak number of real estate projects that we had outstanding during
each respective year. The number of projects outstanding at the
end of each year is less than the number of projects listed
herein. In addition, certain unconsolidated joint ventures have
multiple real estate projects.
|
December
31,
|
|||||||
2009
|
2008
|
||||||
(Dollars
in thousands)
|
|||||||
Assets:
|
|||||||
Cash
|
$
|
26,382
|
$
|
48,566
|
|||
Inventories
|
351,267
|
843,419
|
|||||
Other
assets
|
5,433
|
4,874
|
|||||
Total
assets
|
$
|
383,082
|
$
|
896,859
|
|||
Liabilities
and Equity:
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
105,431
|
$
|
102,218
|
|||
Recourse
debt
|
38,835
|
173,894
|
|||||
Non-recourse
debt
|
178,373
|
247,954
|
|||||
Standard
Pacific equity
|
14,160
|
106,872
|
|||||
Other
Members' equity
|
46,283
|
265,921
|
|||||
Total
liabilities and equity
|
$
|
383,082
|
$
|
896,859
|
|||
Investment
in unconsolidated joint ventures reflected in the accompanying
consolidated balance sheets
|
$
|
40,415
|
$
|
50,468
|
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Maximum
month end borrowings outstanding during the year
|
$ | 330,000 | $ | 415,000 | $ | 773,500 | ||||||
Average
outstanding balance during the year
|
$ | 268,226 | $ | 371,667 | $ | 623,350 | ||||||
Weighted
average interest rate for the year
|
7.6% | 7.5 | 6.8% | |||||||||
Weighted
average interest rate on borrowings outstanding at year
end
|
7.3% | 8.0% | 7.2% |
December 31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
5⅛%
Senior Notes due April 2009
|
$ | ― | $ | 124,550 | ||||
6½%
Senior Notes due August 2010
|
15,049 | 173,000 | ||||||
6⅞%
Senior Notes due May 2011
|
48,619 | 175,000 | ||||||
7¾%
Senior Notes due March 2013, net of discount
|
121,149 | 124,451 | ||||||
6¼%
Senior Notes due April 2014
|
150,000 | 150,000 | ||||||
7%
Senior Notes due August
2015
|
175,000 | 175,000 | ||||||
10¾%
Senior Notes due September 2016, net of
discount
|
258,201 | ― | ||||||
Term
Loan A due December 2009
|
― | 57,500 | ||||||
Term
Loan B due May 2013
|
225,000 | 225,000 | ||||||
$ | 993,018 | $ | 1,204,501 |
December 31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
6%
Senior Subordinated Convertible Notes due October 2012, net of
discount
|
$ | 33,852 | $ | 52,963 | ||||
9¼% Senior Subordinated Notes due
April 2012, net of discount
|
70,325 | 70,259 | ||||||
$ | 104,177 | $ | 123,222 |
Year
Ended
December
31,
|
|||
(Dollars
in thousands)
|
|||
2010
|
$ | 58,256 | |
2011
|
64,943 | ||
2012
|
116,117 | ||
2013
|
346,583 | ||
2014
|
150,000 | ||
Thereafter
|
455,000 | ||
$ | 1,190,899 |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Net
income (loss)
|
$ | (13,786 | ) | $ | (1,233,615 | ) | $ | (767,380 | ) | |||
Unrealized
income (loss) on interest rate swaps, net of related income tax
effects
|
7,424 | (10,037 | ) | (7,267 | ) | |||||||
Comprehensive
income (loss)
|
$ | (6,362 | ) | $ | (1,243,652 | ) | $ | (774,647 | ) |
Year
Ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||
Numerator:
|
||||||||||
Net
loss from continuing operations
|
$
|
(13,217)
|
$
|
(1,231,329)
|
$
|
(695,290)
|
||||
Less:
Net loss from continuing operations allocated to preferred
shareholders
|
8,025
|
488,322
|
―
|
|||||||
Numerator
for basic and diluted loss per common share from continuing
operations
|
$
|
(5,192)
|
$
|
(743,007)
|
$
|
(695,290)
|
||||
Net
loss from discontinued operations
|
$
|
(569)
|
$
|
(2,286)
|
$
|
(72,090)
|
||||
Less:
Net loss from discontinued operations allocated to preferred
shareholders
|
346
|
907
|
―
|
|||||||
Numerator
for basic and diluted loss per common share from discontinued
operations
|
$
|
(223)
|
$
|
(1,379)
|
$
|
(72,090)
|
||||
Denominator:
|
||||||||||
Weighted
average basic and diluted common shares outstanding
|
95,623,851
|
81,439,248
|
72,157,394
|
|||||||
Basic
and diluted loss per common share from continuing
operations
|
$
|
(0.06)
|
$
|
(9.12)
|
$
|
(9.63)
|
||||
Basic
and diluted loss per common share from discontinued
operations
|
(0.00)
|
(0.02)
|
(1.00)
|
|||||||
Basic
and diluted loss per common share
|
$
|
(0.06)
|
$
|
(9.14)
|
$
|
(10.63)
|
December
31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Cash
and equivalents
|
$ | 602,222 | $ | 602,222 | $ | 626,379 | $ | 626,379 | ||||||||
Financial
services:
|
||||||||||||||||
Cash
and equivalents
|
$ | 11,602 | $ | 11,602 | $ | 7,976 | $ | 7,976 | ||||||||
Mortgage
loans held for investment
|
$ | 10,818 | $ | 10,818 | $ | 11,736 | $ | 11,736 | ||||||||
Financial
liabilities:
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Revolving
credit facility
|
$ | ― | $ | ― | $ | 47,500 | $ | 35,625 | ||||||||
Secured
project debt and other notes payable
|
$ | 59,531 | $ | 59,531 | $ | 111,214 | $ | 111,214 | ||||||||
Senior
notes payable, net
|
$ | 993,018 | $ | 931,710 | $ | 1,204,501 | $ | 769,298 | ||||||||
Senior
subordinated notes payable, net
|
$ | 104,177 | $ | 110,228 | $ | 123,222 | $ | 68,625 | ||||||||
Financial
services:
|
||||||||||||||||
Mortgage
credit facilities
|
$ | 40,995 | $ | 40,995 | $ | 63,655 | $ | 63,655 | ||||||||
Off-balance
sheet financial instruments:
|
||||||||||||||||
Forward
sale commitments of mortgage-backed securities
|
$ | ― | $ | ― | $ | 15,000 | $ | 14,762 | ||||||||
Commitments
to originate mortgage loans
|
$ | 45,774 | $ | 46,481 | $ | 12,032 | $ | 12,272 |
·
|
Level
1 – quoted prices for identical assets or
liabilities in active markets;
|
·
|
Level
2 – quoted prices for similar assets or
liabilities in active markets; quoted prices for identical or similar
assets or liabilities in markets that are not active; and model-derived
valuations in which significant inputs and significant value drivers are
observable in active markets; and
|
·
|
Level
3 – valuations derived from valuation techniques in which one or more
significant inputs or significant value drivers are unobservable.
|
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
|
December
31, 2009
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
||||||||
(Dollars
in thousands)
|
||||||||||||
Assets:
|
||||||||||||
Inventories
owned
|
$
|
119,391
|
$
|
―
|
$
|
―
|
$
|
119,391
|
||||
Mortgage
loans held for sale
|
$
|
41,048
|
$
|
―
|
$
|
41,048
|
$
|
―
|
||||
Liabilities:
|
||||||||||||
Interest
rate swaps
|
$
|
24,727
|
$
|
―
|
$
|
24,727
|
$
|
―
|
Year
Ended
December
31,
|
||||
(Dollars
in thousands)
|
||||
2010
|
$
|
7,254
|
||
2011
|
4,817
|
|||
2012
|
2,986
|
|||
2013
|
1,074
|
|||
2014
|
566
|
|||
Thereafter
|
408
|
|||
Subtotal
|
17,105
|
|||
Less
- Estimated sublease income
|
(2,449)
|
|||
Net
rental obligations
|
$
|
14,656
|
Year
Ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
(Dollars
in thousands)
|
||||||||||
Current
(provision) benefit for income taxes:
|
||||||||||
Federal
|
$
|
93,861
|
$
|
(128,453)
|
$
|
235,631
|
||||
State
|
2,702
|
―
|
(985)
|
|||||||
96,563
|
(128,453)
|
234,646
|
||||||||
Deferred
(provision) benefit for income taxes:
|
||||||||||
Federal
|
|
―
|
|
135,248
|
|
(39,956)
|
||||
State
|
―
|
―
|
(5,736)
|
|||||||
―
|
135,248
|
(45,692)
|
||||||||
(Provision)
benefit for income taxes
|
$
|
96,563
|
$
|
6,795
|
$
|
188,954
|
||||
(Provision)
benefit for income taxes - continuing operations
|
$
|
96,265
|
$
|
5,495
|
$
|
149,003
|
||||
(Provision)
benefit for income taxes - discontinued operations
|
298
|
1,300
|
39,951
|
|||||||
(Provision)
benefit for income taxes
|
$
|
96,563
|
$
|
6,795
|
$
|
188,954
|
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Inventory
impairment charges
|
$ | 296,375 | $ | 441,037 | ||||
Investments
in unconsolidated joint ventures
|
(12,930 | ) | 29,259 | |||||
Financial
accruals
|
58,700 | 56,013 | ||||||
Federal
net operating loss carryforwards
|
129,507 | 44,428 | ||||||
State net operating loss carryforwards | 40,345 | 63,877 | ||||||
Goodwill
impairment charges
|
21,424 | 24,835 | ||||||
Interest
rate swap
|
9,431 | 14,122 | ||||||
Other,
net
|
1,175 | (5,342 | ) | |||||
Subtotal
|
544,027 | 668,229 | ||||||
Less:
Valuation allowance
|
(534,596 | ) | (654,107 | ) | ||||
Deferred
income taxes
|
$ | 9,431 | $ | 14,122 |
Year
Ended December 31,
|
||||||||||
2009
|
2008
|
2007
|
||||||||
(Dollars
in thousands)
|
||||||||||
Income
(loss) before taxes
|
$
|
(110,349)
|
$
|
(1,240,410)
|
$
|
(956,334)
|
||||
(Provision)
benefit for income taxes at federal statutory rate
|
$
|
38,622
|
$
|
434,144
|
$
|
334,717
|
||||
(Increases)
decreases in tax resulting from:
|
||||||||||
State
income taxes, net of federal benefit
|
4,195
|
48,168
|
34,583
|
|||||||
Net
deferred tax asset valuation (allowance) benefit
|
51,429
|
(473,627)
|
(180,480)
|
|||||||
Other,
net
|
2,317
|
(1,890)
|
134
|
|||||||
Benefit
for income taxes
|
$
|
96,563
|
$
|
6,795
|
$
|
188,954
|
||||
Effective
tax rate
|
87.5%
|
0.5%
|
19.8%
|
Year
Ended December 31,
|
||||||
2009
|
2008
|
|||||
(Dollars
in thousands)
|
||||||
Balance,
beginning of the year
|
$
|
4,613
|
$
|
5,511
|
||
Changes
based on tax positions related to the current year
|
9,126
|
―
|
||||
Changes
for tax position in prior years
|
―
|
50
|
||||
Reductions
due to lapse of statute of limitations
|
(2,307)
|
(948)
|
||||
Settlements
|
―
|
―
|
||||
Balance,
end of the year
|
$
|
11,432
|
$
|
4,613
|
2009
|
2008
|
2007
|
|||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
||||||||||
Options
outstanding, beginning of year
|
14,397,701
|
$
|
8.07
|
6,086,780
|
$
|
19.63
|
5,006,874
|
$
|
20.07
|
||||||
Granted
|
12,814,000
|
2.09
|
12,765,000
|
3.16
|
2,437,500
|
18.07
|
|||||||||
Exercised
|
(592,125)
|
1.08
|
―
|
―
|
(286,764)
|
8.12
|
|||||||||
Canceled
|
(6,227,620)
|
7.30
|
(4,454,079)
|
9.79
|
(1,070,830)
|
21.23
|
|||||||||
Options
outstanding, end of year
|
20,391,956
|
$
|
4.75
|
14,397,701
|
$
|
8.07
|
6,086,780
|
$
|
19.63
|
||||||
Options
exercisable at end of year
|
7,835,831
|
$
|
8.40
|
5,342,701
|
$
|
16.50
|
3,268,419
|
$
|
17.97
|
||||||
Options
available for future grant
|
5,624,664
|
|
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||
Exercise
Prices
|
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual Life
|
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
|||||||
Low
|
High
|
|||||||||||
$0.67
|
$8.25
|
18,702,483
|
$2.72
|
6.00
|
6,146,358
|
$3.21
|
||||||
$11.00
|
$11.69
|
304,038
|
$11.34
|
2.15
|
304,038
|
$11.34
|
||||||
$14.82
|
$27.59
|
479,385
|
$23.52
|
4.05
|
479,385
|
$23.52
|
||||||
$29.84
|
$43.53
|
906,050
|
$34.58
|
3.29
|
906,050
|
$34.58
|
2009
|
2008
|
2007
|
|||
Dividend
yield
|
0.00%
|
0.00%
|
0.29%
|
||
Expected
volatility
|
86.32%
|
66.64%
|
43.23%
|
||
Risk-free
interest rate
|
2.21%
|
3.12%
|
4.43%
|
||
Expected
life
|
4.5
years
|
4.5 years
|
2.6 years
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Stock
options
|
$ | 8,174 | $ | 6,454 | $ | 13,691 | ||||||
Performance
share awards
|
― | 3,297 | 4,926 | |||||||||
Restricted
and unrestricted stock grants
|
4,690 | 1,359 | 1,533 | |||||||||
Total
|
$ | 12,864 | $ | 11,110 | $ | 20,150 |
As
of December 31,
|
|||||||||||||||||||||
2009
|
2008
|
2007
|
|||||||||||||||||||
Unrecognized
Expense
|
Weighted
Average
Period
|
Unrecognized
Expense
|
Weighted
Average
Period
|
Unrecognized
Expense
|
Weighted
Average
Period
|
||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||
Unvested
stock options
|
$ | 13,559 |
3.1
years
|
$ | 11,169 |
3.5
years
|
$ | 3,855 |
1.8
years
|
||||||||||||
Nonvested
performance share awards
|
― | ― | ― | ― | 3,384 |
1.8
years
|
|||||||||||||||
Nonvested
restricted stock grants
|
― | ― | ― | ― | 842 |
0.9
years
|
|||||||||||||||
Total
unrecognized compensation expense
|
$ | 13,559 |
3.1
years
|
$ | 11,169 |
3.5
years
|
$ | 8,081 |
1.7
years
|
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Home
sale revenues
|
$ | 803 | $ | 25,958 | $ | 124,177 | ||||||
Land
sale revenues
|
― | 694 | 57,935 | |||||||||
Total
revenues
|
803 | 26,652 | 182,112 | |||||||||
Cost
of home sales
|
(922 | ) | (21,127 | ) | (144,921 | ) | ||||||
Cost
of land sales
|
― | (751 | ) | (96,354 | ) | |||||||
Total
cost of sales
|
(922 | ) | (21,878 | ) | (241,275 | ) | ||||||
Gross
margin
|
(119 | ) | 4,774 | (59,163 | ) | |||||||
Selling,
general and administrative expenses
|
(430 | ) | (8,180 | ) | (25,619 | ) | ||||||
Loss
from unconsolidated joint ventures
|
― | ― | (9,699 | ) | ||||||||
Other
income (expense)
|
(318 | ) | (180 | ) | (17,560 | ) | ||||||
Pretax
loss
|
(867 | ) | (3,586 | ) | (112,041 | ) | ||||||
Benefit
for income taxes
|
298 | 1,300 | 39,951 | |||||||||
Net
loss from discontinued operations
|
$ | (569 | ) | $ | (2,286 | ) | $ | (72,090 | ) |
Year
Ended
December
31, 2007
|
||||
(Dollars
in thousands)
|
||||
Write-off
of deposits and capitalized preacquisition costs
|
$ | 524 | ||
Inventory
impairments
|
86,661 | |||
Joint
venture impairments
|
9,524 | |||
Goodwill
impairments
|
11,430 | |||
Total
impairments
|
$ | 108,139 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Dollars
in thousands)
|
||||||||
Assets
|
||||||||
Cash
and equivalents
|
$ | ― | $ | 7 | ||||
Trade
and other receivables
|
― | 160 | ||||||
Inventories
|
― | 930 | ||||||
Other
assets
|
― | 120 | ||||||
Total
Assets
|
$ | ― | $ | 1,217 | ||||
Liabilities
|
||||||||
Accounts
payable
|
$ | ― | $ | 320 | ||||
Accrued
liabilities
|
― | 1,011 | ||||||
Total
Liabilities
|
$ | ― | $ | 1,331 |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Total
(1)
|
||||||||||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||||||||||||
2009:
|
||||||||||||||||||||
Revenues
|
$ | 211,585 | $ | 293,955 | $ | 331,173 | $ | 342,829 | $ | 1,179,542 | ||||||||||
Homebuilding
gross margin
|
$ | 8,098 | $ | 39,108 | $ | 42,623 | $ | 51,993 | $ | 141,822 | ||||||||||
Income
(loss) from continuing operations, net of income taxes
|
$ | (48,968 | ) | $ | (23,113 | ) | $ | (23,799 | ) | $ | 82,663 | $ | (13,217 | ) | ||||||
Loss
from discontinued operations, net of income taxes
|
(504 | ) | (20 | ) | (45 | ) | ― | (569 | ) | |||||||||||
Net
income (loss)
|
$ | (49,472 | ) | $ | (23,133 | ) | $ | (23,844 | ) | $ | 82,663 | $ | (13,786 | ) | ||||||
Basic
income (loss) per common share:
|
||||||||||||||||||||
Continuing
operations
|
$ | (0.21 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | 0.33 | $ | (0.06 | ) | ||||||
Discontinued
operations
|
― | ― | ― | ― | ― | |||||||||||||||
Basic
income (loss) per common share
|
$ | (0.21 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | 0.33 | $ | (0.06 | ) | ||||||
Diluted
income (loss) per common share
|
||||||||||||||||||||
Continuing
operations
|
$ | (0.21 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | 0.31 | $ | (0.06 | ) | ||||||
Discontinued
operations
|
― | ― | ― | ― | ― | |||||||||||||||
Diluted
income (loss) per common share
|
$ | (0.21 | ) | $ | (0.10 | ) | $ | (0.10 | ) | $ | 0.31 | $ | (0.06 | ) | ||||||
2008:
|
||||||||||||||||||||
Revenues
|
$ | 354,484 | $ | 412,798 | $ | 402,832 | $ | 379,089 | $ | 1,549,203 | ||||||||||
Homebuilding
gross margin
|
$ | (117,594 | ) | $ | (75,890 | ) | $ | (207,657 | ) | $ | (295,787 | ) | $ | (696,928 | ) | |||||
Loss
from continuing operations, net of income taxes
|
$ | (215,676 | ) | $ | (248,251 | ) | $ | (369,840 | ) | $ | (397,562 | ) | $ | (1,231,329 | ) | |||||
Loss
from discontinued operations, net of income taxes
|
(1,191 | ) | (745 | ) | (69 | ) | (281 | ) | (2,286 | ) | ||||||||||
Net
loss
|
$ | (216,867 | ) | $ | (248,996 | ) | $ | (369,909 | ) | $ | (397,843 | ) | $ | (1,233,615 | ) | |||||
Basic
loss per common share:
|
||||||||||||||||||||
Continuing
operations
|
$ | (2.98 | ) | $ | (3.43 | ) | $ | (2.54 | ) | $ | (1.65 | ) | $ | (9.12 | ) | |||||
Discontinued
operations
|
(0.02 | ) | (0.01 | ) | ― | ― | (0.02 | ) | ||||||||||||
Basic
loss per common share
|
$ | (3.00 | ) | $ | (3.44 | ) | $ | (2.54 | ) | $ | (1.65 | ) | $ | (9.14 | ) | |||||
Diluted
loss per common share:
|
||||||||||||||||||||
Continuing
operations
|
$ | (2.98 | ) | $ | (3.43 | ) | $ | (2.54 | ) | $ | (1.65 | ) | $ | (9.12 | ) | |||||
Discontinued
operations
|
(0.02 | ) | (0.01 | ) | ― | ― | (0.02 | ) | ||||||||||||
Diluted
loss per common share
|
$ | (3.00 | ) | $ | (3.44 | ) | $ | (2.54 | ) | $ | (1.65 | ) | $ | (9.14 | ) |
(1)
|
Some
amounts do not add across due to rounding differences in quarterly amounts
and due to the impact of differences between the quarterly and annual
weighted average share
calculations.
|
Year
Ended December 31,
|
|||||||||||
2009
|
2008
|
2007
|
|||||||||
(Dollars
in thousands)
|
|||||||||||
Supplemental
Disclosures of Cash Flow Information:
|
|||||||||||
Cash
paid during the period for:
|
|||||||||||
Interest
|
$
|
102,022
|
$
|
132,525
|
$
|
144,733
|
|||||
Income
taxes
|
$
|
386
|
$
|
415
|
$
|
14,179
|
|||||
Supplemental
Disclosure of Noncash Activities:
|
|||||||||||
Increase
in inventory in connection with purchase or consolidation of joint
ventures
|
$
|
85,573
|
$
|
134,659
|
$
|
21,679
|
|||||
Increase
in secured project debt in connection with purchase or consolidation of
joint ventures
|
$
|
77,272
|
$
|
115,257
|
$
|
―
|
|||||
Inventory
received as distributions from unconsolidated homebuilding joint
ventures
|
$
|
15,471
|
$
|
42,663
|
$
|
45,711
|
|||||
Senior
subordinated notes exchanged for the issuance of common
stock
|
$
|
32,837
|
$
|
―
|
$
|
―
|
|||||
Senior
and senior subordinated notes exchanged for the issuance of
warrant
|
$
|
―
|
$
|
128,496
|
$
|
―
|
|||||
Increase
in investments in unconsolidated joint ventures related to accrued joint
venture
|
|||||||||||
loan-to-value
remargin obligations
|
$
|
―
|
$
|
5,000
|
$
|
45,000
|
|||||
Reduction
in seller trust deed note payable in connection with modification of
purchase agreement
|
$
|
3,370
|
$
|
25,807
|
$
|
14,079
|
|||||
Changes
in inventories not owned
|
$
|
25,605
|
$
|
48,384
|
$
|
71,228
|
|||||
Changes
in liabilities from inventories not owned
|
$
|
21,216
|
$
|
18,078
|
$
|
40,142
|
|||||
Changes
in noncontrolling interests
|
$
|
4,389
|
$
|
30,306
|
$
|
31,086
|
Year
Ended December 31, 2009
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Revenues
|
$
|
459,876
|
$
|
570,156
|
$
|
136,365
|
$
|
―
|
$
|
1,166,397
|
||||||||
Cost
of sales
|
(403,261)
|
(502,231)
|
(119,083)
|
―
|
(1,024,575)
|
|||||||||||||
Gross
margin
|
56,615
|
67,925
|
17,282
|
―
|
141,822
|
|||||||||||||
Selling,
general and administrative expenses
|
(107,013)
|
(78,748)
|
(5,727)
|
―
|
(191,488)
|
|||||||||||||
Income
(loss) from unconsolidated joint ventures
|
6,855
|
(7,768)
|
(3,804)
|
―
|
(4,717)
|
|||||||||||||
Equity
income (loss) of subsidiaries
|
(24,266)
|
―
|
―
|
24,266
|
―
|
|||||||||||||
Interest
expense
|
(20,722)
|
(21,314)
|
(5,422)
|
―
|
(47,458)
|
|||||||||||||
Loss
on early extinguishment of debt
|
(6,931)
|
―
|
―
|
―
|
(6,931)
|
|||||||||||||
Other
income (expense)
|
(2,753)
|
(3,947)
|
4,404
|
―
|
(2,296)
|
|||||||||||||
Homebuilding
pretax income (loss)
|
(98,215)
|
(43,852)
|
6,733
|
24,266
|
(111,068)
|
|||||||||||||
Financial
Services:
|
||||||||||||||||||
Financial
services pretax income (loss)
|
(139)
|
258
|
1,467
|
―
|
1,586
|
|||||||||||||
Income
(loss) from continuing operations before income taxes
|
(98,354)
|
(43,594)
|
8,200
|
24,266
|
(109,482)
|
|||||||||||||
(Provision)
benefit for income taxes
|
84,568
|
12,403
|
(706)
|
―
|
96,265
|
|||||||||||||
Income
(loss) from continuing operations
|
(13,786)
|
(31,191)
|
7,494
|
24,266
|
(13,217)
|
|||||||||||||
Loss
from discontinued operations, net of income taxes
|
―
|
(569)
|
―
|
―
|
(569)
|
|||||||||||||
Net
income (loss)
|
$
|
(13,786)
|
$
|
(31,760)
|
$
|
7,494
|
$
|
24,266
|
$
|
(13,786)
|
Year
Ended December 31, 2008
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Revenues
|
$
|
720,106
|
$
|
801,443
|
$
|
14,067
|
$
|
―
|
$
|
1,535,616
|
||||||||
Cost
of sales
|
(1,015,504)
|
(1,157,682)
|
(59,358)
|
―
|
(2,232,544)
|
|||||||||||||
Gross
margin
|
(295,398)
|
(356,239)
|
(45,291)
|
―
|
(696,928)
|
|||||||||||||
Selling,
general and administrative expenses
|
(174,532)
|
(130,095)
|
(853)
|
―
|
(305,480)
|
|||||||||||||
Loss
from unconsolidated joint ventures
|
(76,769)
|
(56,357)
|
(18,603)
|
―
|
(151,729)
|
|||||||||||||
Equity
income (loss) of subsidiaries
|
(491,148)
|
―
|
―
|
491,148
|
―
|
|||||||||||||
Interest
expense
|
7,038
|
(16,773)
|
(645)
|
―
|
(10,380)
|
|||||||||||||
Loss
on early extinguishment of debt
|
(15,695)
|
―
|
―
|
―
|
(15,695)
|
|||||||||||||
Other
income (expense)
|
(19,439)
|
(40,751)
|
2,562
|
―
|
(57,628)
|
|||||||||||||
Homebuilding
pretax income (loss)
|
(1,065,943)
|
(600,215)
|
(62,830)
|
491,148
|
(1,237,840)
|
|||||||||||||
Financial
Services:
|
||||||||||||||||||
Financial
services pretax income (loss)
|
(274)
|
1,088
|
202
|
―
|
1,016
|
|||||||||||||
Income
(loss) from continuing operations before income taxes
|
(1,066,217)
|
(599,127)
|
(62,628)
|
491,148
|
(1,236,824)
|
|||||||||||||
(Provision)
benefit for income taxes
|
(167,398)
|
167,582
|
5,311
|
―
|
5,495
|
|||||||||||||
Income
(loss) from continuing operations
|
(1,233,615)
|
(431,545)
|
(57,317)
|
491,148
|
(1,231,329)
|
|||||||||||||
Loss
from discontinued operations, net of income taxes
|
―
|
(2,286)
|
―
|
―
|
(2,286)
|
|||||||||||||
Net
income (loss)
|
$
|
(1,233,615)
|
$
|
(433,831)
|
$
|
(57,317)
|
$
|
491,148
|
$
|
(1,233,615)
|
Year
Ended December 31, 2007
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Revenues
|
$
|
1,405,749
|
$
|
1,435,770
|
$
|
47,314
|
$
|
―
|
$
|
2,888,833
|
||||||||
Cost
of sales
|
(1,466,945)
|
(1,546,028)
|
(75,830)
|
―
|
(3,088,803)
|
|||||||||||||
Gross
margin
|
(61,196)
|
(110,258)
|
(28,516)
|
―
|
(199,970)
|
|||||||||||||
Selling,
general and administrative expenses
|
(195,826)
|
(189,660)
|
(2,495)
|
―
|
(387,981)
|
|||||||||||||
Loss
from unconsolidated joint ventures
|
(159,610)
|
(29,283)
|
(1,132)
|
―
|
(190,025)
|
|||||||||||||
Equity
income (loss) of subsidiaries
|
(384,606)
|
―
|
―
|
384,606
|
―
|
|||||||||||||
Gain
on early extinguishment of debt
|
1,087
|
―
|
―
|
―
|
1,087
|
|||||||||||||
Other
income (expense)
|
(10,172)
|
(59,525)
|
―
|
―
|
(69,697)
|
|||||||||||||
Homebuilding
pretax income (loss)
|
(810,323)
|
(388,726)
|
(32,143)
|
384,606
|
(846,586)
|
|||||||||||||
Financial
Services:
|
||||||||||||||||||
Financial
services pretax income (loss)
|
(747)
|
1,661
|
1,379
|
―
|
2,293
|
|||||||||||||
Income
(loss) from continuing operations before income taxes
|
(811,070)
|
(387,065)
|
(30,764)
|
384,606
|
(844,293)
|
|||||||||||||
(Provision)
benefit for income taxes
|
43,690
|
106,305
|
(992)
|
―
|
149,003
|
|||||||||||||
Income
(loss) from continuing operations
|
(767,380)
|
(280,760)
|
(31,756)
|
384,606
|
(695,290)
|
|||||||||||||
Loss
from discontinued operations, net of income taxes
|
―
|
(52,540)
|
―
|
―
|
(52,540)
|
|||||||||||||
Loss
from disposal of discontinued operations,
|
||||||||||||||||||
net
of income taxes
|
―
|
(19,550)
|
―
|
―
|
(19,550)
|
|||||||||||||
Net
income (loss)
|
$
|
(767,380)
|
$
|
(352,850)
|
$
|
(31,756)
|
$
|
384,606
|
$
|
(767,380)
|
December
31, 2009
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash
and equivalents
|
$
|
183,135
|
$
|
402
|
$
|
403,615
|
$
|
―
|
$
|
587,152
|
||||||||
Restricted
cash
|
―
|
―
|
15,070
|
―
|
15,070
|
|||||||||||||
Trade
and other receivables
|
233,879
|
1,612
|
95,746
|
(318,561)
|
12,676
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
307,429
|
561,923
|
116,970
|
―
|
986,322
|
|||||||||||||
Not
owned
|
823
|
10,847
|
100
|
―
|
11,770
|
|||||||||||||
Investments
in unconsolidated joint ventures
|
12,419
|
2,534
|
25,462
|
―
|
40,415
|
|||||||||||||
Investments
in subsidiaries
|
905,297
|
―
|
―
|
(905,297)
|
―
|
|||||||||||||
Deferred
income taxes, net
|
9,283
|
―
|
―
|
148
|
9,431
|
|||||||||||||
Other
assets
|
123,612
|
7,378
|
138
|
(42)
|
131,086
|
|||||||||||||
1,775,877
|
584,696
|
657,101
|
(1,223,752)
|
1,793,922
|
||||||||||||||
Financial
Services:
|
||||||||||||||||||
Cash
and equivalents
|
―
|
―
|
8,407
|
―
|
8,407
|
|||||||||||||
Restricted
cash
|
―
|
―
|
3,195
|
―
|
3,195
|
|||||||||||||
Mortgage
loans held for sale, net
|
―
|
―
|
41,048
|
―
|
41,048
|
|||||||||||||
Mortgage
loans held for investment, net
|
―
|
―
|
10,818
|
―
|
10,818
|
|||||||||||||
Other
assets
|
―
|
―
|
5,920
|
(2,299)
|
3,621
|
|||||||||||||
―
|
―
|
|
69,388
|
|
(2,299)
|
|
67,089
|
|||||||||||
Total
Assets
|
$
|
1,775,877
|
$
|
584,696
|
$
|
726,489
|
$
|
(1,226,051)
|
$
|
1,861,011
|
||||||||
LIABILITIES
AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts
payable
|
$
|
9,177
|
$
|
10,986
|
$
|
2,741
|
$
|
(202)
|
$
|
22,702
|
||||||||
Accrued
liabilities
|
167,599
|
253,294
|
11,494
|
(236,252)
|
196,135
|
|||||||||||||
Liabilities
from inventories not owned
|
―
|
3,713
|
―
|
―
|
3,713
|
|||||||||||||
Secured
project debt and other notes payable
|
66,108
|
16,978
|
55,115
|
(78,670)
|
59,531
|
|||||||||||||
Senior
notes payable
|
993,018
|
―
|
―
|
―
|
993,018
|
|||||||||||||
Senior
subordinated notes payable
|
104,177
|
―
|
―
|
―
|
104,177
|
|||||||||||||
1,340,079
|
284,971
|
69,350
|
(315,124)
|
1,379,276
|
||||||||||||||
Financial
Services:
|
||||||||||||||||||
Accounts
payable and other liabilities
|
―
|
―
|
4,566
|
(3,130)
|
1,436
|
|||||||||||||
Mortgage
credit facilities
|
―
|
―
|
43,495
|
(2,500)
|
40,995
|
|||||||||||||
―
|
―
|
48,061
|
(5,630)
|
42,431
|
||||||||||||||
Total
Liabilities
|
1,340,079
|
284,971
|
117,411
|
(320,754)
|
1,421,707
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total
Stockholders' Equity
|
435,798
|
296,219
|
609,078
|
(905,297)
|
435,798
|
|||||||||||||
Noncontrolling
interest
|
―
|
3,506
|
―
|
―
|
3,506
|
|||||||||||||
Total
Equity
|
435,798
|
299,725
|
609,078
|
(905,297)
|
439,304
|
|||||||||||||
Total
Liabilities and Equity
|
$
|
1,775,877
|
$
|
584,696
|
$
|
726,489
|
$
|
(1,226,051)
|
$
|
1,861,011
|
December
31, 2008
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Cash
and equivalents
|
$
|
111,702
|
$
|
433
|
$
|
510,022
|
$
|
―
|
$
|
622,157
|
||||||||
Restricted
cash
|
4,222
|
―
|
―
|
―
|
4,222
|
|||||||||||||
Trade
and other receivables
|
340,471
|
5,095
|
17,055
|
(341,613)
|
21,008
|
|||||||||||||
Inventories:
|
||||||||||||||||||
Owned
|
397,059
|
725,679
|
139,783
|
―
|
1,262,521
|
|||||||||||||
Not
owned
|
5,455
|
37,287
|
―
|
―
|
42,742
|
|||||||||||||
Investments
in unconsolidated joint ventures
|
24,895
|
19,830
|
5,743
|
―
|
50,468
|
|||||||||||||
Investments
in subsidiaries
|
964,757
|
―
|
―
|
(964,757)
|
―
|
|||||||||||||
Deferred
income taxes, net
|
13,975
|
―
|
―
|
147
|
14,122
|
|||||||||||||
Other
assets
|
140,174
|
5,849
|
3
|
(459)
|
145,567
|
|||||||||||||
2,002,710
|
794,173
|
672,606
|
(1,306,682)
|
2,162,807
|
||||||||||||||
Financial
Services:
|
||||||||||||||||||
Cash
and equivalents
|
―
|
―
|
3,681
|
―
|
3,681
|
|||||||||||||
Restricted
cash
|
―
|
―
|
4,295
|
―
|
4,295
|
|||||||||||||
Mortgage
loans held for sale, net
|
―
|
―
|
63,960
|
―
|
63,960
|
|||||||||||||
Mortgage
loans held for investment, net
|
―
|
―
|
11,736
|
―
|
11,736
|
|||||||||||||
Other
assets
|
―
|
―
|
4,939
|
(147)
|
4,792
|
|||||||||||||
―
|
―
|
|
88,611
|
|
(147)
|
|
88,464
|
|||||||||||
Assets
of discontinued operations
|
―
|
1,217
|
―
|
―
|
1,217
|
|||||||||||||
Total
Assets
|
$
|
2,002,710
|
$
|
795,390
|
$
|
761,217
|
$
|
(1,306,829)
|
$
|
2,252,488
|
||||||||
LIABILITIES
AND EQUITY
|
||||||||||||||||||
Homebuilding:
|
||||||||||||||||||
Accounts
payable
|
$
|
20,318
|
$
|
17,556
|
$
|
2,351
|
$
|
―
|
$
|
40,225
|
||||||||
Accrued
liabilities
|
187,927
|
368,983
|
1,121
|
(341,613)
|
216,418
|
|||||||||||||
Liabilities
from inventories not owned
|
1,873
|
23,056
|
―
|
―
|
24,929
|
|||||||||||||
Revolving
credit facility
|
47,500
|
―
|
―
|
―
|
47,500
|
|||||||||||||
Secured
project debt and other notes payable
|
9,428
|
38,214
|
63,572
|
―
|
111,214
|
|||||||||||||
Senior
notes payable
|
1,204,501
|
―
|
―
|
―
|
1,204,501
|
|||||||||||||
Senior
subordinated notes payable
|
123,222
|
―
|
―
|
―
|
123,222
|
|||||||||||||
1,594,769
|
447,809
|
67,044
|
(341,613)
|
1,768,009
|
||||||||||||||
Financial
Services:
|
||||||||||||||||||
Accounts
payable and other liabilities
|
―
|
―
|
4,116
|
(459)
|
3,657
|
|||||||||||||
Mortgage
credit facilities
|
―
|
―
|
63,655
|
―
|
63,655
|
|||||||||||||
―
|
―
|
67,771
|
(459)
|
67,312
|
||||||||||||||
Liabilities
of discontinued operations
|
―
|
1,331
|
―
|
―
|
1,331
|
|||||||||||||
Total
Liabilities
|
1,594,769
|
449,140
|
134,815
|
(342,072)
|
1,836,652
|
|||||||||||||
Equity:
|
||||||||||||||||||
Total
Stockholders' Equity
|
407,941
|
338,355
|
626,402
|
(964,757)
|
407,941
|
|||||||||||||
Noncontrolling
interest
|
―
|
7,895
|
―
|
―
|
7,895
|
|||||||||||||
Total
Equity
|
407,941
|
346,250
|
626,402
|
(964,757)
|
415,836
|
|||||||||||||
Total
Liabilities and Equity
|
$
|
2,002,710
|
$
|
795,390
|
$
|
761,217
|
$
|
(1,306,829)
|
$
|
2,252,488
|
Year
Ended December 31, 2009
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Cash
Flows From Operating Activities:
|
||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
244,354
|
$
|
33,519
|
$
|
139,457
|
$
|
2,500
|
$
|
419,830
|
||||||||
Cash
Flows From Investing Activities:
|
||||||||||||||||||
Investments
in unconsolidated homebuilding joint ventures
|
(1,127)
|
(849)
|
(26,624)
|
―
|
(28,600)
|
|||||||||||||
Distributions
from unconsolidated homebuilding joint ventures
|
340
|
―
|
3,184
|
―
|
3,524
|
|||||||||||||
Other
investing activities
|
(1,069)
|
(268)
|
(888)
|
―
|
(2,225)
|
|||||||||||||
Net
cash provided by (used in) investing activities
|
(1,856)
|
(1,117)
|
(24,328)
|
―
|
(27,301)
|
|||||||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||||
Change
in restricted cash
|
4,222
|
―
|
(13,970)
|
―
|
(9,748)
|
|||||||||||||
Net
proceeds from (payments on) revolving credit facility
|
(24,630)
|
―
|
(22,870)
|
―
|
(47,500)
|
|||||||||||||
Principal
payments on secured project debt and other notes payable
|
(6,058)
|
(22,064)
|
(97,862)
|
―
|
(125,984)
|
|||||||||||||
Redemption
of senior notes payable
|
(429,559)
|
―
|
(37,130)
|
―
|
(466,689)
|
|||||||||||||
Proceeds
from the issuance of senior notes payable
|
257,592
|
―
|
―
|
―
|
257,592
|
|||||||||||||
Payment of debt issuance costs | (8,764) | ― | ― | ― | (8,764) | |||||||||||||
Net
proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
(20,160)
|
(2,500)
|
(22,660)
|
|||||||||||||
(Contributions
to) distributions from Corporate and subsidiaries
|
35,194
|
(10,376)
|
(24,818)
|
―
|
―
|
|||||||||||||
Excess
tax benefits from share-based payment arrangements
|
297
|
―
|
―
|
―
|
297
|
|||||||||||||
Proceeds
from the exercise of stock options
|
641
|
―
|
―
|
―
|
641
|
|||||||||||||
Net
cash provided by (used in) financing activities
|
(171,065)
|
(32,440)
|
(216,810)
|
(2,500)
|
(422,815)
|
|||||||||||||
Net
decrease in cash and equivalents
|
71,433
|
(38)
|
(101,681)
|
―
|
(30,286)
|
|||||||||||||
Cash
and equivalents at beginning of year
|
111,702
|
440
|
513,703
|
―
|
625,845
|
|||||||||||||
Cash
and equivalents at end of year
|
$
|
183,135
|
$
|
402
|
$
|
412,022
|
$
|
―
|
$
|
595,559
|
Year
Ended December 31, 2008
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Cash
Flows From Operating Activities
|
||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
124,560
|
$
|
29,045
|
$
|
109,883
|
$
|
(337)
|
$
|
263,151
|
||||||||
Cash
Flows From Investing Activities:
|
||||||||||||||||||
Investments
in unconsolidated homebuilding joint ventures
|
(20,344)
|
(36,998)
|
(56,151)
|
―
|
(113,493)
|
|||||||||||||
Distributions
from unconsolidated homebuilding joint ventures
|
55,804
|
16,542
|
31,818
|
―
|
104,164
|
|||||||||||||
Other
investing activities
|
(1,380)
|
(66)
|
(804)
|
―
|
(2,250)
|
|||||||||||||
Net
cash provided by (used in) investing activities
|
34,080
|
(20,522)
|
(25,137)
|
―
|
(11,579)
|
|||||||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||||
Change
in restricted cash
|
(4,222)
|
―
|
(4,295)
|
―
|
(8,517)
|
|||||||||||||
Net
proceeds from (payments on) revolving credit facility
|
(42,500)
|
―
|
―
|
―
|
(42,500)
|
|||||||||||||
Principal
payments on secured project debt and other notes payable
|
(2,001)
|
(14,296)
|
(4,021)
|
―
|
(20,318)
|
|||||||||||||
Redemption
of senior notes payable
|
(167,375)
|
―
|
―
|
―
|
(167,375)
|
|||||||||||||
Net
proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
(100,854)
|
337
|
(100,517)
|
|||||||||||||
Repurchases
of common stock
|
(726)
|
―
|
―
|
―
|
(726)
|
|||||||||||||
(Contributions
to) distributions from Corporate and subsidiaries
|
(530,908)
|
5,450
|
525,458
|
―
|
―
|
|||||||||||||
Net
proceeds from the issuance of senior preferred stock and the
issuance
|
||||||||||||||||||
of
warrant
|
404,233
|
―
|
―
|
―
|
404,233
|
|||||||||||||
Proceeds
from the issuance of common stock
|
78,432
|
―
|
―
|
―
|
78,432
|
|||||||||||||
Net
cash provided by (used in) financing activities
|
(265,067)
|
(8,846)
|
416,288
|
337
|
142,712
|
|||||||||||||
Net
decrease in cash and equivalents
|
(106,427)
|
(323)
|
501,034
|
―
|
394,284
|
|||||||||||||
Cash
and equivalents at beginning of year
|
218,129
|
763
|
12,669
|
―
|
231,561
|
|||||||||||||
Cash
and equivalents at end of year
|
$
|
111,702
|
$
|
440
|
$
|
513,703
|
$
|
―
|
$
|
625,845
|
Year
Ended December 31, 2007
|
||||||||||||||||||
Standard
Pacific
Corp.
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments
|
Consolidated
Standard
Pacific
Corp.
|
||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||
Cash
Flows From Operating Activities:
|
||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
553,950
|
$
|
(17,386)
|
$
|
118,657
|
$
|
337
|
$
|
655,558
|
||||||||
Cash
Flows From Investing Activities:
|
||||||||||||||||||
Proceeds
from disposition of discontinued operations
|
―
|
40,850
|
―
|
―
|
40,850
|
|||||||||||||
Investments
in unconsolidated homebuilding joint ventures
|
(265,602)
|
(63,656)
|
―
|
―
|
(329,258)
|
|||||||||||||
Distributions
from unconsolidated homebuilding joint ventures
|
91,890
|
44,330
|
(20,808)
|
―
|
115,412
|
|||||||||||||
Other
investing activities
|
(9,794)
|
(1,509)
|
(13,516)
|
―
|
(24,819)
|
|||||||||||||
Net
cash provided by (used in) investing activities
|
(183,506)
|
20,015
|
(34,324)
|
―
|
(197,815)
|
|||||||||||||
Cash
Flows From Financing Activities:
|
||||||||||||||||||
Net
proceeds from (payments on) revolving credit facility
|
(199,500)
|
―
|
―
|
―
|
(199,500)
|
|||||||||||||
Principal
payments on secured project debt and other notes payable
|
(5,626)
|
(2,886)
|
―
|
―
|
(8,512)
|
|||||||||||||
Redemption
of senior notes payable
|
(46,235)
|
―
|
―
|
―
|
(46,235)
|
|||||||||||||
Proceeds
from issuance of senior subordinated convertible notes
|
100,000
|
―
|
―
|
―
|
100,000
|
|||||||||||||
Payment of debt issuance costs | (3,000) | ― | ― | ― | (3,000) | |||||||||||||
Purchase
of senior subordinated convertible note hedge
|
(9,120)
|
―
|
―
|
―
|
(9,120)
|
|||||||||||||
Net
proceeds from (payments on) mortgage credit facilities
|
―
|
―
|
(86,398)
|
(337)
|
(86,735)
|
|||||||||||||
Excess
tax benefits from share-based payment arrangements
|
1,555
|
―
|
―
|
―
|
1,555
|
|||||||||||||
Dividends
paid
|
(7,778)
|
―
|
―
|
―
|
(7,778)
|
|||||||||||||
Repurchases
of common stock
|
(2,901)
|
―
|
―
|
―
|
(2,901)
|
|||||||||||||
Net
proceeds from the issuance of common stock
|
79
|
―
|
―
|
―
|
79
|
|||||||||||||
Proceeds
from the exercise of stock options
|
3,862
|
―
|
―
|
―
|
3,862
|
|||||||||||||
Net
cash provided by (used in) financing activities
|
(168,664)
|
(2,886)
|
(86,398)
|
(337)
|
(258,285)
|
|||||||||||||
Net
decrease in cash and equivalents
|
201,780
|
(257)
|
(2,065)
|
―
|
199,458
|
|||||||||||||
Cash
and equivalents at beginning of year
|
16,349
|
1,020
|
14,734
|
―
|
32,103
|
|||||||||||||
Cash
and equivalents at end of year
|
$
|
218,129
|
$
|
763
|
$
|
12,669
|
$
|
―
|
$
|
231,561
|
ITEM 9A.
|
|
/s/
ERNST & YOUNG LLP
|
ITEM 9B.
|
ITEM 11.
|
ITEM 12.
|
Page
Reference
|
||
(a)(1)
|
Financial
Statements, included in Part II of this report:
|
|
44
|
||
45
|
||
46
|
||
47
|
||
48
|
||
49
|
||
(2)
|
Financial
Statement Schedules:
|
|
Financial
Statement Schedules are omitted since the required information is not
present or is not present in the amounts sufficient to require submission
of a schedule, or because the information required is included in the
consolidated financial statements, including the notes
thereto.
|
||
(3)
|
Index
to Exhibits
|
|
See
Index to Exhibits on pages 91-94 below.
|
||
(b)
|
Index
to Exhibits. See Index to Exhibits on pages 91-94 below.
|
|
(c)
|
Financial
Statements required by Regulation S-X excluded from the annual report to
shareholders by Rule 14a-3(b). Not applicable.
|
STANDARD
PACIFIC CORP.
(Registrant)
|
|
By:
|
/s/ Kenneth L.
Campbell
|
Kenneth
L. Campbell
|
|
Chief
Executive Officer and President
|
Signature
|
Title
|
Date
|
||
/s/ Kenneth L.
Campbell
|
Chief
Executive Officer and President
|
March 5,
2010
|
||
(Kenneth L. Campbell) | ||||
/s/ RONALD R. FOELL
|
Chairman
of the Board
|
March 5,
2010
|
||
(Ronald R. Foell) | ||||
/s/ John M.
Stephens
|
Senior
Vice President and Chief Financial Officer (Principal Financial and
Accounting Officer)
|
March 5,
2010
|
||
(John M. Stephens) | ||||
/s/ Bruce A.
Choate
|
Director
|
March 5,
2010
|
||
(Bruce A. Choate) | ||||
/s/ JAMES L. DOTI
|
Director
|
March 5,
2010
|
||
(James L. Doti) | ||||
/s/ DOUGLAS C. JACOBS
|
Director
|
March 5,
2010
|
||
(Douglas C. Jacobs) | ||||
/s/ David J.
Matlin
|
Director
|
March 5,
2010
|
||
(David J. Matlin ) | ||||
/s/ F. Patt
Schiewitz
|
Director
|
March 5,
2010
|
||
(F. Patt Schiewitz) | ||||
/s/ Peter
Schoels
|
Director
|
March 5,
2010
|
||
(Peter Schoels) |
*3.1
|
Amended
and Restated Certificate of Incorporation of the Registrant, incorporated
by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on August 19,
2008.
|
*3.2
|
Certificate
of Designations of Series A Junior Participating Cumulative Preferred
Stock of the Registrant, incorporated by reference to Exhibit 3.2 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on August 19, 2008.
|
*3.3
|
Certificate
of Designations of Series B Junior Participating Convertible Preferred
Stock of the Registrant, incorporated by reference to Exhibit 3.3 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on August 19, 2008.
|
*3.4
|
Amended
and Restated Bylaws of the Registrant, incorporated by reference to
Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on October 28, 2009.
|
*4.1
|
Form
of Specimen Stock Certificate, incorporated by reference to Exhibit 28.3
of the Registrant’s Registration Statement on Form S-4 (file no. 33-42293)
filed with the Securities and Exchange Commission on August 16,
1991.
|
*4.2
|
Amended
and Restated Rights Agreement, dated as of July 24, 2003, between the
Registrant and Mellon Investor Services LLC, as Rights Agent, incorporated
by reference to Exhibit 4.1 of the Registrant’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2003.
|
*4.3
|
Amendment
No. 1 to Amended and Restated Rights Agreement, dated as of June 27, 2008,
between the Registrant and Mellon Investor Services LLC, as Rights Agent,
incorporated by reference to Exhibit 4.1 of the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
July 1, 2008.
|
*4.4
|
Senior
Debt Securities Indenture, dated as of April 1, 1999, by and between the
Registrant and The First National Bank of Chicago, as Trustee,
incorporated by reference to Exhibit 4.1 of the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 16, 1999.
|
*4.5
|
Fourth
Supplemental Indenture relating to the Registrant’s 7¾% Senior Notes due
2013, dated as of March 4, 2003, by and between the Registrant and Bank
One Trust Company, N.A., as Trustee, incorporated by reference to Exhibit
4.1 of the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on March 7, 2003.
|
*4.6
|
Fifth
Supplemental Indenture relating to the Registrant’s 6⅞% Senior Notes due
2011, dated as of May 12, 2003, by and between the Registrant and Bank One
Trust Company, N.A., as Trustee, incorporated by reference to Exhibit 4.2
of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2003.
|
*4.7
|
Eighth
Supplemental Indenture relating to the Registrant’s 6¼% Senior Notes due
2014, dated as of March 11, 2004, by and between the Registrant and J.P.
Morgan Trust Company, National Association, as Trustee, incorporated by
reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on March 16,
2004.
|
*4.8
|
Ninth
Supplemental Indenture relating to the Registrant’s 6½% Senior Notes due
2010, dated as of August 1, 2005, by and between the Registrant and J.P.
Morgan Trust Company, National Association, as Trustee, incorporated by
reference to Exhibit 4.1 to the Registrant's Current Report on Form
8-K filed with the Securities and Exchange Commission on August 5,
2005.
|
*4.9
|
Tenth
Supplemental Indenture relating to the Registrant’s 7% Senior Notes due
2015, dated as of August 1, 2005, by and between the Registrant and J.P.
Morgan Trust Company, National Association, as Trustee, incorporated by
reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on August 5,
2005.
|
*4.10
|
Eleventh
Supplemental Indenture relating to the addition of certain of the
Registrant’s wholly owned subsidiaries as guarantors of all of the
Registrant’s outstanding Senior Notes (including the form of guaranty),
dated as of February 22, 2006, by and between the Registrant and J.P.
Morgan Trust Company, National Association, as
|
Trustee incorporated by reference to Exhibit 4.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005. | |
*4.11
|
Twelfth
Supplemental Indenture, dated as of May 5, 2006, by and between the
Registrant and J.P. Morgan Trust Company, National Association, as
Trustee, incorporated by reference to Exhibit 4.1 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended March 31,
2006.
|
*4.12
|
Senior
Subordinated Debt Securities Indenture, dated as of April 10, 2002, by and
between the Registrant and Bank One Trust Company, N.A., as Trustee,
incorporated by reference to Exhibit 4.1 of the Registrant’s Current
Report on Form 8-K, filed with the Securities and Exchange Commission on
April 15, 2002.
|
*4.13
|
First
Supplemental Indenture relating to the Registrant’s 9¼% Senior
Subordinated Notes due 2012, dated as of April 10, 2002, by and between
the Registrant and Bank One Trust Company, N.A., as Trustee, with Form of
Note attached, incorporated by reference to Exhibit 4.2 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on April 15, 2002.
|
*4.14
|
Second
Supplemental Indenture relating to the addition of certain of the
Registrant’s wholly owned subsidiaries as guarantors of all of the
Registrant’s outstanding Senior Subordinated Notes (including the form of
guaranty), dated as of February 22, 2006, by and between the Registrant
and J.P. Morgan Trust Company, National Association, as Trustee,
incorporated by reference to Exhibit 4.14 to the Registrant’s Annual
Report on Form 10-K for the year ended December 31,
2005.
|
*4.15
|
Third
Supplemental Indenture relating to the Registrant’s 6% Convertible Senior
Subordinated Notes due 2012, dated as of September 24, 2007, by and among
the Registrant, the Guarantors, and the Bank of New York Trust Company
N.A., as Trustee, incorporated by reference to Exhibit 4.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on September 28, 2007.
|
*4.16
|
Fourth
Supplemental Indenture relating to the Registrant’s 9¼% Senior
Subordinated Notes due 2012, dated as of June 26, 2008, by and among the
Registrant, the guarantors named therein and the Bank of New York Trust
Company N.A., as Trustee, incorporated by reference to Exhibit 4.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 27, 2008.
|
*4.17
|
Indenture,
dated as of September 17, 2009, between Standard Pacific Escrow LLC and
The Bank of New York Mellon Trust Company, N.A., incorporated by reference
to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with
the Securities and Exchange Commission on September 17,
2009.
|
*4.18
|
First
Supplemental Indenture, dated as of October 8, 2009, between the
Registrant, Standard Pacific Escrow LLC and The Bank of New York Mellon
Trust Company, N.A., incorporated by reference to Exhibit 4.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on October 9, 2009.
|
*4.19
|
Thirteenth
Supplemental Indenture, dated as of October 8, 2009, between the
Registrant and The Bank of New York Mellon Trust Company, N.A.,
incorporated by reference to Exhibit 4.3 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
October 9, 2009.
|
*4.20
|
Registration
Rights Agreement, dated as of October 8, 2009, among the Registrant, the
subsidiary guarantors party thereto and the initial purchasers,
incorporated by reference to Exhibit 4.2 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
October 9, 2009.
|
*10.1
|
Warrant
to Purchase Shares of Series B Junior Participating Convertible Preferred
Stock, dated June 27, 2008, incorporated by reference to
Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on July 1, 2008.
|
*10.2
|
Stockholders
Agreement, dated June 27, 2008, between the Registrant and MP CA Homes,
LLC, incorporated by reference to Exhibit 10.3 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
July 1, 2008.
|
*10.3
|
Term
Loan B Credit Agreement, dated as of May 5, 2006, by and among the
Registrant, Bank of America, N.A., and the several lenders named therein,
incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended March 31,
2006.
|
*10.4
|
Pledge
Agreement, dated as of May 5, 2006, between Standard Pacific Corp.,
certain of Standard Pacific Corp.’s subsidiaries and Bank of America,
N.A., as Collateral Agent, as amended through November 1, 2009,
incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30,
2009.
|
*10.5
|
Collateral
Agent and Intercreditor Agreement dated as of May 5, 2006, between
Standard Pacific Corp., certain of Standard Pacific Corp.’s subsidiaries,
Bank of America, N.A., as Collateral Agent, and the various creditors
party thereto, as amended through November 1, 2009, incorporated by
reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2009.
|
*10.6
|
Notice
of Auto-Amendment to Term Loan B Credit Agreement, dated as of April 25,
2007, by and between the Registrant and Bank of America, N.A.,
incorporated by reference to Exhibit 99.2 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
April 26, 2007.
|
*10.7
|
Notice
of Revolver and Term Loan A Amendment and Second Amendment to Term B
Credit Agreement, dated as of September 14, 2007, by and between the
Registrant and Bank of America, N.A., incorporated by reference to Exhibit
99.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on September 18,
2007.
|
*10.8
|
Notice
of Revolver and Term Loan A Amendment and Fourth Amendment to Term B
Credit Agreement, dated as of June 30, 2008, by and between the Registrant
and Bank of America, N.A., incorporated by reference to Exhibit 10.5 to
the Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on July 1, 2008.
|
*10.9
|
Confirmation,
dated September 25, 2007, by and between the Registrant and Bank of
America, N.A., incorporated by reference to Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on September 28, 2007.
|
*10.10
|
Confirmation,
dated September 25, 2007, by and between the Registrant and JPMorgan Chase
Bank, National Association, London Branch, incorporated by reference to
Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on September 28,
2007.
|
*10.11
|
Share
Lending Agreement, dated September 24, 2007, by and between the Registrant
and Credit Suisse International, as Borrower, and Credit Suisse, New York
Branch, as agent, incorporated by reference to Exhibit 10.3 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on September 28, 2007.
|
+*10.12
|
Standard
Pacific Corp. 1997 Stock Incentive Plan, incorporated by reference to
Exhibit 99.1 of the Registrant’s Registration Statement on Form S-8 filed
with the Securities and Exchange Commission on August 21,
1997.
|
+*10.13
|
2000
Stock Incentive Plan of Standard Pacific Corp., as amended and restated,
effective May 12, 2004, incorporated by reference to Appendix A to the
Registrant’s Definitive Proxy Statement filed with the Securities and
Exchange Commission on April 2, 2004.
|
+*10.14
|
Standard
Pacific Corp. 2005 Stock Incentive Plan, incorporated by reference to
Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on May 11, 2005.
|
+*10.15
|
Standard
Pacific Corp. 2008 Equity Incentive Plan, incorporated by reference to
Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on August 19, 2008.
|
+*10.16
|
Standard
Terms and Conditions (CIC) for Non-Qualified Stock Options to be used in
connection with the Company’s 2008 Stock Incentive Plan, incorporated by
reference to Exhibit 10.28 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2008.
|
+*10.17
|
Standard
Terms and Conditions for Non-Qualified Stock Options to be used in
connection with the Company’s 2008 Stock Incentive Plan, incorporated by
reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2008.
|
|
|
+*10.18 |
Restated
Settlement Agreement and Mutual Release of Claims, dated as of February
27, 2009, between the Registrant and Andrew H. Parnes, incorporated
by reference to Exhibit 10.2 to the Registrant’s Current Report on Form
8-K filed with the Securities and Exchange Commission on March 9,
2009.
|
+*10.19
|
Form
of Executive Officers Indemnification Agreement incorporated by reference
to the Registrant’s Annual Report on Form 10-K for the year ended December
31, 2007.
|
+*10.20
|
Employment
Agreement, dated June 1, 2009, between the Registrant and Kenneth L.
Campbell, incorporated by reference to Exhibit 10.1 to the Registrant’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission on June 1, 2009.
|
+*10.21
|
Incentive
Compensation Agreement, dated February 1, 2010, between Registrant and
Kenneth L. Campbell, incorporated by reference to Exhibit 99.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on February 4, 2010.
|
+*10.22
|
Employment
Letter Agreement, dated March 26, 2009, between the Registrant and Scott
D. Stowell, incorporated by reference to Exhibit 10.1 to the Registrant’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission on April 1, 2009.
|
+*10.23
|
Incentive
Compensation Agreement, dated February 1, 2010, between Registrant and
Scott D. Stowell, incorporated by reference to Exhibit 99.2 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on February 4, 2010.
|
+*10.24
|
Retirement
and Transition Services Agreement, dated March 26, 2009, between the
Registrant and Bruce F. Dickson, incorporated by reference to Exhibit 10.1
to the Registrant’s Current Report on Form 8-K filed with the Securities
and Exchange Commission on April 3, 2009.
|
*10.25
|
Notice
of Revolver and Term A Amendment, dated August 12, 2009, incorporated by
reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on August 13,
2009.
|
*10.26
|
Third
Amendment of Term B Credit Agreement, dated as of September 3, 2009, by
and among the Registrant and Bank of America, N.A., as Administrative
Agent for the Term B Lenders, incorporated by reference to Exhibit 10.1 to
the Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on September 3, 2009.
|
*10.27
|
Instrument
of Joinder (Additional Creditor Representative), dated as of October 8,
2009, between The Bank of New York Mellon Trust Company, N.A. and Bank of
America, N.A., incorporated by reference to Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on October 9, 2009.
|
21.1
|
Subsidiaries
of the Registrant.
|
23.1
|
Consent
of Ernst & Young LLP, Independent Registered Public Accounting
Firm.
|
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.
|
(*)
|
Previously
filed.
|
(+)
|
Management
contract, compensation plan or
arrangement.
|