Standard Pacific Corp. Reports 2012 Third Quarter Results

          Standard Pacific Corp. Reports 2012 Third Quarter Results

Q3 2012 Net Income of $21.7 million, or $0.05 per diluted share

Q3 2012 Net New Orders up 29% and Backlog up 64% vs. Q3 2011

PR Newswire

IRVINE, Calif., Oct. 25, 2012

IRVINE, Calif., Oct. 25, 2012 /PRNewswire/ --Standard Pacific Corp. (NYSE:
SPF) today announced results for the third quarter ended September 30, 2012.

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

  oNet income of $21.7 million, or $0.05 per diluted share, vs. net loss of
    $6.4 million, or $0.02 per diluted share
  oNet new orders of 989, up 29%
  oBacklog of 1,394 homes, up 64%
  o156 average active selling communities, down 2%
  oHomebuilding revenues up 32%

       oAverage selling price of $369 thousand, up 7%
       o861 new home deliveries, up 24%

  oGross margin from home sales of 20.2%, compared to 15.8% (18.8%* excluding
    impairment charges)
  oSG&A rate from home sales of 13.6%, a 260 basis point improvement
  o$246.2 million of land purchases and development costs compared to $106.4
    million
  oAdjusted Homebuilding EBITDA of $51.5 million*, or 16.2%* of homebuilding
    revenues, compared to $28.4 million*, or 11.7%* of homebuilding revenues
  oHomebuilding cash balance of $500 million
  oAmended undrawn revolving credit facility in October 2012 to increase
    capacity to $350 million

Scott Stowell, the Company's Chief Executive Officer and President commented,
"We are pleased that the positive momentum we experienced during the first
half of 2012 continued into the third quarter. We earned $21.7 million, with
deliveries up 24%, orders up 29% and homebuilding revenues up 32% over the
prior year period. We are most pleased by the significant 64% year-over-year
increase in the dollar value and number of homes in backlog to approximately
$500 million, or 1,400 homes. Our solid third quarter results reflect the
execution of our strategy and improved housing market conditions during the
quarter."

Revenues from home sales for the 2012 third quarter increased 31%, to $317.4
million from $241.4 million, as compared to the prior year period, primarily
due to a 24% increase in new home deliveries (excluding joint ventures) to 861
homes and a 7% increase in our consolidated average home price to $369
thousand. The increase in new home deliveries was driven by a 62% increase in
the number of homes in backlog at the beginning of the quarter as compared to
the prior year period.

Gross margin from home sales for the 2012 third quarter increased to 20.2%
compared to 15.8% (18.8%* excluding $7.2 million of inventory impairment
charges) in the prior year period. Excluding inventory impairment charges and
previously capitalized interest costs, gross margin from home sales was 28.7%*
for the 2012 third quarter versus 26.6%* for the 2011 third quarter. This 210
basis point improvement was primarily attributable to a mix shift to more
deliveries from higher margin communities, price increases in certain
communities with higher sales absorption, and improved margins from
speculative homes sold and delivered during the quarter.

The Company's 2012 third quarter SG&A expenses (including Corporate G&A) were
$43.1 million compared to $39.1 million for the prior year period, down 260
basis points as a percentage of home sale revenues to 13.6%, compared to 16.2%
for the 2011 third quarter. The improvement in the Company's SG&A rate was
primarily due to a 31% increase in revenues from home sales and the operating
leverage inherent in our business.

Net new orders (excluding joint ventures) for the 2012 third quarter increased
29% from the 2011 third quarter to 989 homes. The 29% year-over-year growth
is attributable to a 32% increase in the Company's monthly sales absorption
rate, partially offset by a 2% decrease in the number of average active
selling communities. The Company's monthly sales absorption rate for the
2012 third quarter was 2.1 per community, compared to 1.6 per community for
the 2011 third quarter and 2.4 per community for the 2012 second quarter. The
10% decrease in absorption rate from the 2012 second quarter to the 2012 third
quarter is slightly better than the historical seasonality for the Company.
The Company's cancellation rate for the 2012 third quarter was 14%, compared
to 16% for the 2011 third quarter and 11% for the 2012 second quarter.

The dollar value of homes in backlog (excluding joint ventures) increased 64%
to $498.7 million, or 1,394 homes, compared to $304.8 million, or 848 homes,
for the 2011 third quarter, and increased 13% compared to $439.7 million, or
1,266 homes, for the 2012 second quarter. The increase in year over year
backlog value was driven primarily by a 29% increase in net new orders and a
shift to more to-be-built homes.

The Company used $72.4 million of cash in operating activities for the 2012
third quarter versus $78.5 million in the 2011 third quarter. During the 2012
third quarter, the Company spent $246.2 million on land purchases and
development costs, of which $140.8 million of cash land purchases and
development costs were included in cash flows used in operating activities,
compared to $106.4 million for the 2011 third quarter. Excluding land
purchases and development costs, cash inflows from operating activities for
the 2012 third quarter were $68.4 million* versus $27.9 million* in the 2011
third quarter. The year over year increase in cash inflows from operating
activities (excluding land purchases and development costs) was primarily due
to a 31% increase in home sale revenues.

The Company purchased $206.7 million of land (3,497 homesites) during the 2012
third quarter, of which 76% (based on homesites) was located in California and
11% in Texas, with the balance spread throughout the Company's other
operations. The Company purchased $337.3 million of land (6,259 homesites)
during the nine months ended September 30, 2012, of which 47% (based on
homesites) was located in California, 24% in the Carolinas, 13% in Texas and
13% in Florida, with the balance spread throughout the Company's other
operations. As of September 30, 2012, the Company owned or controlled 30,154
homesites, of which 17,718 are owned and actively selling or under
development, 6,180 are controlled or under option, and the remaining 6,256
homesites are held for future development or for sale. The homesites owned
that are actively selling or under development represent a 5.7 year supply
based on the Company's deliveries for the trailing twelve months ended
September 30, 2012.

Earnings Conference Call

A conference call to discuss the Company's 2012 third quarter results will be
held at 12:00 p.m. Eastern time October 26, 2012. The call will be broadcast
live over the Internet and can be accessed through the Company's website at
http://ir.standardpacifichomes.com. The call will also be accessible via
telephone by dialing(888) 811-5448 (domestic) or (913) 905-3226
(international); Passcode: 8191394. The audio transmission with the slide
presentation will be available on our website for replay within 2 to 3 hours
following the live broadcast, and can be accessed by dialing (888) 203-1112
(domestic) or (719) 457-0820 (international); Passcode: 8191394.

About Standard Pacific

Standard Pacific, one of the nation's largest homebuilders, has built more
than 115,000 homes during its 47-year history. The Company constructs homes
within a wide range of price and size targeting a broad range of homebuyers.
Standard Pacific operates in many of the largest housing markets in the
country with operations in major metropolitan areas in California, Florida,
Arizona, the Carolinas, Texas and Colorado. For more information about the
Company and its new home developments, please visit our website at:
www.standardpacifichomes.com.

This news release contains forward-looking statements. These statements
include but are not limited to statements regarding new home orders,
deliveries, backlog, average home price, revenue, profitability, cash flow,
liquidity, gross margins, overhead expenses and other costs; community count;
product mix; execution on our strategy; and the future condition of the
economy and the housing market. Forward-looking statements are based on our
current expectations or beliefs regarding future events or circumstances, and
you should not place undue reliance on these statements. Such statements
involve known and unknown risks, uncertainties, assumptions and other factors
many of which are out of the Company's control and difficult to forecast that
may cause actual results to differ materially from those that may be described
or implied. Such factors include but are not limited to: local and general
economic and market conditions, including consumer confidence, employment
rates, interest rates, the cost and availability of mortgage financing, and
stock market, home and land valuations; the impact on economic conditions,
terrorist attacks or the outbreak or escalation of armed conflict involving
the United States; the cost and availability of suitable undeveloped land,
building materials and labor; the cost and availability of construction
financing and corporate debt and equity capital; our significant amount of
debt and the impact of restrictive covenants in our debt agreements; our
ability to repay our debt as it comes due; changes in our credit rating or
outlook; the demand for and affordability of single-family homes; the supply
of housing for sale; cancellations of purchase contracts by homebuyers; the
cyclical and competitive nature of the Company's business; governmental
regulation, including the impact of "slow growth" or similar initiatives;
delays in the land entitlement process, development, construction, or the
opening of new home communities; adverse weather conditions and natural
disasters; environmental matters; risks relating to the Company's mortgage
banking operations; future business decisions and the Company's ability to
successfully implement the Company's operational and other strategies;
litigation and warranty claims; and other risks discussed in the Company's
filings with the Securities and Exchange Commission, including in the
Company's Annual Report on Form 10-K for the year ended Dec. 31, 2011 and
subsequent Quarterly Reports on Form 10-Q. The Company assumes no, and hereby
disclaims any, obligation to update any of the foregoing or any other
forward-looking statements. The Company nonetheless reserves the right to
make such updates from time to time by press release, periodic report or other
method of public disclosure without the need for specific reference to this
press release. No such update shall be deemed to indicate that other
statements not addressed by such update remain correct or create an obligation
to provide any other updates.

Contact:
Jeff McCall, EVP & CFO (949) 789-1655, jmccall@stanpac.com

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this
release.

(Note: Tables Follow)



^

KEY STATISTICS AND FINANCIAL DATA^1
                   As of or For the Three Months Ended
                   September   September   Percentage  June 30,    Percentage
                   30,         30,
                   2012        2011        or %        2012        or %
                                           Change                  Change
Operating Data     (Dollars in thousands)
Deliveries           861         697       24%           815       6%
Average selling    $ 369       $ 346       7%          $ 337       9%
price
Home sale revenues $ 317,389   $ 241,434   31%         $ 274,872   15%
Gross margin %       20.1%       15.8%     4.3%          20.5%     (0.4%)
Gross margin %
from home sales      20.2%       18.8%     1.4%          20.5%     (0.3%)
(excluding
impairments)*
Gross margin %
from home sales
(excluding
impairments and      28.7%       26.6%     2.1%          29.4%     (0.7%)

interest amortized
to cost of home
sales)*
Inventory
impairments and    $  ―     $ 8,959     (100%)      $  ―      ―
deposit write-offs
Restructuring      $  ―     $ 631       (100%)      $  ―      ―
charges
Incentive and
stock-based        $ 4,768     $ 4,380     9%          $ 4,676     2%
compensation
expense
Selling expenses   $ 17,069    $ 12,985    31%         $ 16,311    5%
G&A expenses
(excluding
incentive and
stock-based
compensation       $ 21,284    $ 21,128    1%          $ 20,965    2%

expenses and
restructuring
charges)
SG&A expenses      $ 43,121    $ 39,124    10%         $ 41,952    3%
SG&A % from home     13.6%       16.2%     (2.6%)        15.3%     (1.7%)
sales
Net new orders       989         764       29%           1,108     (11%)
Average active
selling              156         159       (2%)          157       (1%)
communities
Monthly sales
absorption rate      2.1         1.6       32%           2.4       (10%)
per community
Cancellation rate    14%         16%       (2%)          11%       3%
Gross                161         144       12%           138       17%
cancellations
Cancellations from
current quarter      67          63        6%            72        (7%)
sales
Backlog (homes)      1,394       848       64%           1,266     10%
Backlog (dollar    $ 498,739   $ 304,846   64%         $ 439,694   13%
value)
Cash flows (uses)
from operating     $ (72,418)  $ (78,464)  8%          $ (56,600)  (28%)
activities
Cash flows (uses)
from investing     $ (95,704)  $ 4,254                 $ (5,545)   (1,626%)
activities
Cash flows (uses)
from financing     $ 348,696   $ 21,884    1,493%      $ (11,638)
activities
Land purchases
(incl. seller      $ 206,740   $ 74,736    177%        $ 96,584    114%
financing and JV
purchases)
Adjusted
Homebuilding       $ 51,523    $ 28,350    82%         $ 41,810    23%
EBITDA*
Adjusted
Homebuilding         16.2%       11.7%     4.5%          15.2%     1.0%
EBITDA Margin %*
Homebuilding       $ 36,112    $ 35,273    2%          $ 35,305    2%
interest incurred
Homebuilding
interest           $ 32,604    $ 29,329    11%         $ 31,876    2%
capitalized to
inventories owned
Homebuilding
interest           $ 1,839     $ 1,694     9%          $ 1,812     1%
capitalized to
investments in JVs
Interest amortized
to cost of sales   $ 27,078    $ 18,853    44%         $ 24,465    11%
(incl. cost of
land sales)



                 As of
                 September    June 30,     Percentage  December     Percentage
                 30,                                   31,
                 2012         2012         or %        2011         or %
                                           Change                   Change
Balance Sheet    (Dollars in thousands, except per share amounts)
Data
Homebuilding
cash (including  $ 499,572    $ 317,242    57%         $ 438,157    14%
restricted cash)
Inventories      $ 1,829,996  $ 1,605,138  14%         $ 1,477,239  24%
owned
Homesites owned    30,154       27,757     9%            26,444     14%
and controlled
Homes under        1,507        1,317      14%           940        60%
construction
Completed specs    212          239        (11%)         383        (45%)
Deferred tax
asset valuation  $ 488,490    $ 499,701    (2%)        $ 510,621    (4%)
allowance
Homebuilding     $ 1,581,076  $ 1,319,682  20%         $ 1,324,948  19%
debt
Stockholders'    $ 760,017    $ 656,624    16%         $ 623,754    22%
equity
Stockholders'
equity per share
(including
if-converted
 preferred       $ 2.11       $ 1.91       10%         $ 1.82       16%
 stock)*
Total
consolidated       68.5%        67.5%      1.0%          68.7%      (0.2%)
debt to book
capitalization
Adjusted net
homebuilding
debt to total
adjusted
 book              58.7%        60.4%      (1.7%)        58.7%      0.0%
 capitalization*

^1All statistical numbers exclude unconsolidated joint ventures unless noted
otherwise.
*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this
release.



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    Three Months Ended            Nine Months Ended
                    September 30,                 September 30,
                    2012           2011           2012           2011
                    (Dollars in thousands, except per share amounts)
                    (Unaudited)
Homebuilding:
 Home sale revenues $ 317,389      $ 241,434      $ 812,578      $ 589,369
 Land sale revenues   1,152          359            4,537          468
    Total revenues    318,541        241,793        817,115        589,837
 Cost of home sales   (253,344)      (203,188)      (647,525)      (486,933)
 Cost of land sales   (1,092)        (359)          (4,458)        (473)
    Total cost of     (254,436)      (203,547)      (651,983)      (487,406)
    sales
       Gross margin   64,105         38,246         165,132        102,431
       Gross margin   20.1%          15.8%          20.2%          17.4%
       %
 Selling, general
 and administrative   (43,121)       (39,124)       (122,765)      (109,828)
 expenses
 Loss from
 unconsolidated       (39)           (455)          (2,707)        (1,091)
 joint ventures
 Interest expense     (1,669)        (4,250)        (5,816)        (22,209)
 Other income         117            (1,948)        4,708          (679)
 (expense)
       Homebuilding
       pretax         19,393         (7,531)        38,552         (31,376)
       income
       (loss)
Financial Services:
 Revenues             5,218          3,529          14,249         7,124
 Expenses             (2,777)        (2,324)        (7,952)        (7,171)
 Other income         70             42             217            98
       Financial
       services       2,511          1,247          6,514          51
       pretax
       income
Income (loss)         21,904         (6,284)        45,066         (31,325)
before income taxes
Provision for         (194)          (150)          (570)          (425)
income taxes
Net income (loss)     21,710         (6,434)        44,496         (31,750)
 Less: Net
(income) loss
allocated to          (9,100)        2,780          (18,980)       13,743
preferred
shareholder
 Less: Net
(income) loss
allocated to          (22)           ―          (31)           ―
unvested restricted
stock
Net income (loss)
available to common $ 12,588       $ (3,654)      $ 25,485       $ (18,007)
stockholders
Income (Loss) Per
Common Share:
 Basic              $ 0.06         $ (0.02)       $ 0.13         $ (0.09)
 Diluted            $ 0.05         $ (0.02)       $ 0.12         $ (0.09)
Weighted Average
Common Shares
Outstanding:
 Basic                204,485,294    194,311,129    198,469,130    193,686,614
 Diluted              235,273,648    194,311,129    210,441,932    193,686,614
Weighted average
additional common
shares outstanding
 if preferred
 shares converted     147,812,786    147,812,786    147,812,786    147,812,786
 to common shares
Total weighted
average diluted
common shares
outstanding
 if preferred
 shares converted     383,086,434    342,123,915    358,254,718    341,499,400
 to common shares



CONDENSED CONSOLIDATED BALANCE SHEETS
                                                   September 30,  December 31,
                                                   2012           2011
                                                   (Dollars in thousands)
ASSETS                                             (Unaudited)
Homebuilding:
 Cash and equivalents                              $  473,859     $  406,785
 Restricted cash                                      25,713         31,372
 Trade and other receivables                          23,668         11,525
 Inventories:
    Owned                                             1,829,996      1,477,239
    Not owned                                         52,112         59,840
 Investments in unconsolidated joint ventures         52,630         81,807
 Deferred income taxes, net                           2,366          5,326
 Other assets                                         40,833         35,693
          Total Homebuilding Assets                   2,501,177      2,109,587
Financial Services:
 Cash and equivalents                                 5,597          3,737
 Restricted cash                                      1,920          1,295
 Mortgage loans held for sale, net                    88,136         73,811
 Mortgage loans held for investment, net              9,652          10,115
 Other assets                                         3,871          1,838
          Total Financial Services Assets             109,176        90,796
                 Total Assets                      $  2,610,353   $  2,200,383
LIABILITIES AND EQUITY
Homebuilding:
 Accounts payable                                  $  16,458      $  17,829
 Accrued liabilities                                  179,658        185,890
 Secured project debt and other notes payable         11,600         3,531
 Senior notes payable                                 1,529,863      1,275,093
 Senior subordinated notes payable                    39,613         46,324
          Total Homebuilding Liabilities              1,777,192      1,528,667
Financial Services:
 Accounts payable and other liabilities               2,109          1,154
 Mortgage credit facilities                           71,035         46,808
          Total Financial Services Liabilities        73,144         47,962
                 Total Liabilities                    1,850,336      1,576,629
Equity:
 Stockholders' Equity:
    Preferred stock, $0.01 par value; 10,000,000
    shares
     authorized; 450,829 shares issued and
    outstanding
     at September 30, 2012 and December 31,        5              5
    2011
    Common stock, $0.01 par value; 600,000,000
    shares
     authorized; 215,576,688 and 198,563,273
    shares
     issued and outstanding at September 30,
    2012 and
     and December 31, 2011, respectively           2,156          1,985
    Additional paid-in capital                        1,325,970      1,239,180
    Accumulated deficit                               (564,273)      (608,769)
    Accumulated other comprehensive loss, net of      (3,841)        (8,647)
    tax
          Total Equity                                760,017        623,754
                 Total Liabilities and Equity      $  2,610,353   $  2,200,383



INVENTORIES
                                           September 30,     December 31,
                                           2012              2011
                                           (Dollars in thousands)
Inventories Owned:                         (Unaudited)
 Land and land under development       $   1,301,857  $   1,036,829
 Homes completed and under             416,759           339,849
construction
 Model homes                           111,380           100,561
 Total inventories owned            $   1,829,996  $   1,477,239
Inventories Owned by Segment:
 California                            $   1,082,181  $     890,300
 Southwest                             378,954           302,686
 Southeast                             368,861           284,253
 Total inventories owned            $   1,829,996  $   1,477,239



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              Three Months Ended      Nine Months Ended
                              September 30,           September 30,
                              2012        2011        2012         2011
                              (Dollars in thousands)
                              (Unaudited)
Cash Flows From Operating
Activities:
 Net income (loss)            $ 21,710    $ (6,434)   $ 44,496     $ (31,750)
 Adjustments to reconcile net
 income (loss) to net cash
    provided by (used in)
    operating activities:
       Amortization of
       stock-based              1,559       2,635       4,518        8,094
       compensation
       Inventory impairment
       charges and deposit      ―       8,959       133          14,918
       write-offs
       Other operating          1,798       1,343       5,838        3,901
       activities
       Changes in cash and
       equivalents due to:
          Trade and other       (4,681)     (816)       (12,143)     (12,309)
          receivables
          Mortgage loans held   (18,119)    (14,967)    (14,016)     (19,737)
          for sale
          Inventories - owned   (70,645)    (67,719)    (185,832)    (261,777)
          Inventories - not     (7,191)     (4,859)     (10,690)     (17,659)
          owned
          Other assets          999         (2,341)     922          (313)
          Accounts payable      82          6,027       (1,371)      5,889
          Accrued liabilities   2,070       (292)       (2,991)      166
    Net cash provided by
    (used in) operating         (72,418)    (78,464)    (171,136)    (310,577)
    activities
Cash Flows From Investing
Activities:
 Investments in
 unconsolidated homebuilding    (44,797)    (2,484)     (53,078)     (11,304)
 joint ventures
 Distributions of
 capitalfrom unconsolidated    10,145      7,737       11,940       7,786
 joint ventures
 Net cash paid for              (60,752)    ―       (60,752)     ―
 acquisitions
 Other investing activities     (300)       (999)       (1,705)      (1,752)
    Net cash provided by
    (used in) investing         (95,704)    4,254       (103,595)    (5,270)
    activities
Cash Flows From Financing
Activities:
 Change in restricted cash      (1,203)     3,757       5,034        (1,819)
 Principal payments on
 secured project debt and       (138)       (316)       (782)        (839)
 other notes payable
 Principal payments on senior   ―       ―       (9,990)      ―
 subordinated notes payable
 Proceeds from the issuance     253,000     ―       253,000      ―
 of senior notes payable
 Payment of debt issuance       (8,081)     ―       (8,081)      (4,575)
 costs
 Net proceeds from (payments
 on) mortgage credit            26,608      17,655      24,227       22,184
 facilities
 Proceeds from the issuance     75,849      ―       75,849       ―
 of common stock
 Payment of common stock        (3,913)     ―       (3,913)      ―
 issuance costs
 Proceeds from the exercise     6,574       788         8,321        874
 of stock options
    Net cash provided by
    (used in) financing         348,696     21,884      343,665      15,825
    activities
Net increase (decrease) in      180,574     (52,326)    68,934       (300,022)
cash and equivalents
Cash and equivalents at         298,882     483,675     410,522      731,371
beginning of period
Cash and equivalents at end   $ 479,456   $ 431,349   $ 479,456    $ 431,349
of period
Cash and equivalents at end   $ 479,456   $ 431,349   $ 479,456    $ 431,349
of period
Homebuilding restricted cash    25,713      31,182      25,713       31,182
at end of period
Financial services restricted   1,920       1,745       1,920        1,745
cash at end of period
Cash and equivalents and
restricted cash at end of     $ 507,089   $ 464,276   $ 507,089    $ 464,276
period



REGIONAL OPERATING DATA
                               Three Months Ended       Nine Months Ended
                               September 30,           September 30,
                               2012     2011  % Change  2012   2011   % Change
New homes delivered:
 California                    363      295   23%       904    696    30%
 Arizona                       66       37    78%       176    115    53%
 Texas                         107      113   (5%)      368    285    29%
 Colorado                      33       25    32%       80     69     16%
 Nevada                         ―  2     (100%)    9      12     (25%)
 Florida                       151      120   26%       411    293    40%
 Carolinas                     141      105   34%       370    276    34%
   Consolidated total          861      697   24%       2,318  1,746  33%
 Unconsolidated joint          14       13    8%        28     27     4%
 ventures
   Total (including joint      875      710   23%       2,346  1,773  32%
   ventures)



                 Three Months Ended      Nine Months Ended
                 September 30,          September 30,
                 2012     2011   %       2012   2011   %
                                 Change                Change
                 (Dollars in thousands)
Average selling
prices of homes
delivered:
 California      $ 505    $ 496  2%      $ 489  $ 487  0%
 Arizona           204      195  5%        206    204  1%
 Texas             328      281  17%       307    290  6%
 Colorado          399      307  30%       386    308  25%
 Nevada                192  --        192    194  (1%)
                   ―
 Florida           256      202  27%       244    200  22%
 Carolinas         241      226  7%        238    225  6%
   Consolidated    369      346  7%        351    338  4%
 Unconsolidated    450      356  26%       443    409  8%
 joint ventures
   Total
   (including    $ 370    $ 347  7%      $ 352  $ 339  4%
   joint
   ventures)



                               Three Months Ended       Nine Months Ended
                               September 30,            September 30,
                               2012     2011  % Change  2012   2011   % Change
Net new orders:
 California                    417      286   46%       1,169  831    41%
 Arizona                       61       57    7%        237    136    74%
 Texas                         132      117   13%       424    376    13%
 Colorado                      45       24    88%       113    75     51%
 Nevada                         ―  4     (100%)    6      7      (14%)
 Florida                       174      154   13%       568    411    38%
 Carolinas                     160      122   31%       514    344    49%
   Consolidated total          989      764   29%       3,031  2,180  39%
 Unconsolidated joint          18       7     157%      42     23     83%
 ventures
   Total (including joint      1,007    771   31%       3,073  2,203  39%
   ventures)



                            Three Months Ended        Nine Months Ended
                            September 30,             September 30,
                            2012      2011  % Change  2012      2011  % Change
Average number of selling
communities
 during the period:
  California                50        52    (4%)      51        50    2%
  Arizona                   5         10    (50%)     7         9     (22%)
  Texas                     22        22     ―  20        21    (5%)
  Colorado                  7         5     40%       6         5     20%
  Nevada                     ―  1     (100%)     ―  1     (100%)
  Florida                   38        38     ―  37        36    3%
  Carolinas                 34        31    10%       35        28    25%
      Consolidated total    156       159   (2%)      156       150   4%
  Unconsolidated joint      1         3     (67%)     2         3     (33%)
  ventures
      Total (including      157       162   (3%)      158       153   3%
      joint ventures)



                       At September 30,
                       2012                2011              % Change
                       Homes    Dollar     Homes  Dollar     Homes    Dollar
                                Value             Value               Value
                       (Dollars in thousands)
Backlog:
 California             439     $ 217,549    254  $ 145,043   73%      50%
 Arizona                118       28,357     57     11,229    107%     153%
 Texas                  205       74,736     190    57,468    8%       30%
 Colorado               66        26,406     36     12,362    83%      114%
 Nevada                          3      565       (100%)   (100%)
                        ―       ―
 Florida                319       81,950     185    45,781    72%      79%
 Carolinas              247       69,741     123    32,398    101%     115%
    Consolidated        1,394     498,739    848    304,846   64%      64%
    total
 Unconsolidated joint   17        6,836      1      409       1,600%   1,571%
 ventures
    Total (including    1,411   $ 505,575    849  $ 305,255   66%      66%
    joint ventures)



                                             At September 30,
                                             2012    2011    % Change
Homesites owned and controlled:
 California                                  9,806   9,527   3%
 Arizona                                     1,844   1,860   (1%)
 Texas                                       4,451   4,120   8%
 Colorado                                    669     718     (7%)
 Nevada                                      1,124   1,136   (1%)
 Florida                                     8,211   6,554   25%
 Carolinas                                   4,049   2,911   39%
     Total (including joint ventures)        30,154  26,826  12%
 Homesites owned                             23,974  20,139  19%
 Homesites optioned or subject to contract  5,605   5,392   4%
 Joint venture homesites                     575     1,295   (56%)
     Total (including joint ventures)        30,154  26,826  12%
Homesites owned:
 Raw lots                                    4,503   4,202   7%
 Homesites under development                 8,773   4,326   103%
 Finished homesites                          5,304   5,982   (11%)
 Under construction or completed homes       2,170   1,961   11%
 Held for sale                               3,224   3,668   (12%)
     Total                                   23,974  20,139  19%



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Each of the below measures are non-GAAP financial measures and other companies
may calculate such non-GAAP measures differently. Due to the significance of
the GAAP components excluded, such measures should not be considered in
isolation or as an alternative to operating performance measures prescribed by
GAAP.

The table set forth below reconciles the Company's gross margin percentage
from home sales to the gross margin percentage from home sales, excluding
inventory impairment charges and interest amortized to cost of home sales. We
believe these measures are useful to management and investors as they provide
perspective on the underlying operating performance of the business excluding
these charges and provide comparability with the Company's peer group.

               Three Months Ended
               September 30,  Gross   September    Gross   June 30,     Gross
               2012           Margin  30,          Margin  2012         Margin
                              %       2011         %                    %
               (Dollars in thousands)
Home sale      $  317,389             $ 241,434            $ 274,872
revenues
Less: Cost of     (253,344)             (203,188)            (218,586)
home sales
Gross margin
from home         64,045      20.2%     38,246     15.8%     56,286     20.5%
sales
Add: Inventory
impairment         ―             7,230                 ―
charges
Gross margin
from home
sales,
excluding
 impairment      64,045      20.2%     45,476     18.8%     56,286     20.5%
charges
Add:
Capitalized
interest
included in
cost
 of home         27,071      8.5%      18,776     7.8%      24,465     8.9%
sales
Gross margin
from home
sales,
excluding
 impairment
charges and
interest
amortized
 to cost of   $  91,116      28.7%   $ 64,252     26.6%   $ 80,751     29.4%
home sales

The table set forth below reconciles the Company's cash flows used in
operations to cash inflows from operations excluding land purchases and
development costs. We believe this measure is useful to management and
investors to provide perspective on underlying cash flow generation excluding
swings related to the timing of land purchases and development costs.

                                      Three Months Ended
                                      September 30,  September 30,  June 30,
                                      2012           2011           2012
                                      (Dollars in thousands)
Cash flows used in operations         $   (72,418)   $   (78,464)   $ (56,600)
Add: Land purchases (excl. seller         101,363        74,736       96,584
financing and JV purchases)
Add: Land development costs               39,422         31,673       34,514
Cash inflows from operations
(excluding land purchases and         $   68,367     $   27,945     $ 74,498
development costs)

The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA.
Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions
of income from unconsolidated joint ventures) before (a) income taxes, (b)
homebuilding interest expense (c) expensing of previously capitalized interest
included in cost of sales, (d) impairment charges and deposit write-offs, (e)
(gain) loss on early extinguishment of debt (f) homebuilding depreciation and
amortization, (g) amortization of stock-based compensation, (h) income (loss)
from unconsolidated joint ventures and (i) income (loss) from financial
services subsidiary. Other companies may calculate Adjusted Homebuilding
EBITDA (or similarly titled measures) differently. We believe Adjusted
Homebuilding EBITDA information is useful to management and investors as one
measure of the Company's ability to service debt and obtain financing.
Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the
significance of the GAAP components excluded, should not be considered in
isolation or as an alternative to net income, cash flow from operations or any
other operating or liquidity performance measure prescribed by GAAP.

                      Three Months Ended               LTM Ended September 30,
                      September  September  June 30,
                      30,        30,        2012         2012         2011
                      2012       2011
                      (Dollars in thousands)
Net income (loss)     $ 21,710   $ (6,434)  $ 14,263   $ 59,829     $ (53,607)
   Provision
   (benefit) for        194        150        189        89           (765)
   income taxes
   Homebuilding
   interest amortized
   to cost of sales     28,747     23,103     26,082     102,550      90,539
   and interest
   expense
   Homebuilding
   depreciation and     590        687        575        2,386        2,512
   amortization
   Amortization of
   stock-based          1,559      2,635      1,885      7,663        11,344
   compensation
EBITDA                  52,800     20,141     42,994     172,517      50,023
Add:
   Cash distributions
   of income from       1,125           160        1,285        20
   unconsolidated                  ―
   joint ventures
   Impairment charges                   
   and deposit          ―        8,959      ―        549          16,836
   write-offs
   Loss on early                       
   extinguishment of    ―        ―        ―        ―          23,839
   debt
Less:
   Income (loss) from
   unconsolidated       (39)       (455)      (1,146)    (1,409)      (1,066)
   joint ventures
   Income (loss) from
   financial services   2,441      1,205      2,490      7,850        (154)
   subsidiary
Adjusted Homebuilding $ 51,523   $ 28,350   $ 41,810   $ 167,910    $ 91,938
EBITDA
Homebuilding revenues $ 318,541  $ 241,793  $ 274,872  $ 1,110,271  $ 802,261
Adjusted Homebuilding   16.2%      11.7%      15.2%      15.1%        11.5%
EBITDA Margin %

The table set forth below reconciles net cash provided by (used in) operating
activities, calculated and presented in accordance with GAAP, to Adjusted
Homebuilding EBITDA:

                         Three Months Ended                  LTM Ended September 30,
                         September   September   June 30,
                         30,         30,         2012        2012         2011
                         2012        2011
                         (Dollars in thousands)
Net cash provided by
(used in) operating      $ (72,418)  $ (78,464)  $ (56,600)  $ (183,172)  $ (363,040)
activities
Add:
   Provision (benefit)     194         150         189         89           (765)
   for income taxes
   Homebuilding
   interest amortized      28,747      23,103      26,082      102,550      90,539
   to cost of sales and
   interest expense
Less:
   Income (loss) from
   financial services      2,441       1,205       2,490       7,850        (154)
   subsidiary
   Depreciation and
   amortization from       32          17          28          94           937
   financial services
   subsidiary
   (Gain) loss on
   disposal of property    12          184         3           10           182
   and equipment
Net changes in
operating assets and
liabilities:
      Trade and other      4,681       816         471         5,192        4,785
      receivables
      Mortgage loans       18,119      14,967      4,430       37,940       13,418
      held for sale
      Inventories-owned    70,645      67,719      70,986      206,502      290,063
      Inventories-not      7,191       4,859       872         12,758       21,450
      owned
      Other assets         (999)       2,341       1,105       (7,447)      (2,337)
      Accounts payable
      and accrued          (2,152)     (5,735)     (3,204)     1,452        38,790
      liabilities
Adjusted Homebuilding    $ 51,523    $ 28,350    $ 41,810    $ 167,910    $ 91,938
EBITDA

The table set forth below reconciles the Company's total consolidated debt to
adjusted net homebuilding debt and provides the Company's total consolidated
debt to book capitalization and adjusted net homebuilding debt to total
adjusted book capitalization ratios. We believe that the adjusted net
homebuilding debt to total adjusted book capitalization ratio is useful to
management and investors as a measure of the Company's ability to obtain
financing. For purposes of the ratio of adjusted net homebuilding debt to
total adjusted book capitalization, total adjusted book capitalization is
adjusted net homebuilding debt plus stockholders' equity. Adjusted net
homebuilding debt excludes indebtedness of the Company's financial services
subsidiary and additionally reflects the offset of cash and equivalents.

                September    June 30,     December     September
                30,                       31,          30,
                2012         2012         2011         2011
                (Dollars in thousands)
Total
consolidated    $ 1,652,111  $ 1,364,109  $ 1,371,756  $ 1,376,252
debt
Less:
   Financial
   services       (71,035)     (44,427)     (46,808)     (52,528)
   indebtedness
   Homebuilding   (499,572)    (317,242)    (438,157)    (451,192)
   cash
Adjusted net
homebuilding      1,081,504    1,002,440    886,791      872,532
debt
Stockholders'     760,017      656,624      623,754      604,931
equity
Total adjusted
book            $ 1,841,521  $ 1,659,064  $ 1,510,545  $ 1,477,463
capitalization
Total
consolidated      68.5%        67.5%        68.7%        69.5%
debt to book
capitalization
Adjusted net
homebuilding
debt to total     58.7%        60.4%        58.7%        59.1%
adjusted book
capitalization

The table set forth below calculates pro forma stockholders' equity per common
share. The pro forma common shares outstanding include common shares issuable
upon conversion of our outstanding Series B Preferred Stock, and excludes 3.9
million shares issued under a share lending agreement related to the Company's
6% Convertible Senior Subordinated Notes. The Company believes that the pro
forma stockholders' equity per common share information is useful to
management and investors as a measure to determine the book value per common
share after giving effect to the conversion of our outstanding preferred
shares assuming full conversion to common stock and excluding shares
outstanding under the share lending agreement.

                                   September 30,  June 30,       December 31,
                                   2012           2012           2011
Actual common shares outstanding     215,576,688    199,933,447    198,563,273
Add: Conversion of preferred         147,812,786    147,812,786    147,812,786
shares to common shares
Less: Common shares outstanding      (3,919,904)    (3,919,904)    (3,919,904)
under share lending facility
Pro forma common shares              359,469,570    343,826,329    342,456,155
outstanding
Stockholders' equity (Dollars in   $ 760,017      $ 656,624      $ 623,754
thousands)
Divided by pro forma common shares ÷ 359,469,570  ÷ 343,826,329  ÷ 342,456,155
outstanding
Pro forma stockholders' equity per $ 2.11         $ 1.91         $ 1.82
common share



SOURCE Standard Pacific Corp.

Website: http://www.standardpacifichomes.com
 
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