Standard Pacific Corp. Reports 2013 First Quarter Results

          Standard Pacific Corp. Reports 2013 First Quarter Results

Q1 2013 Pretax Income of $35.4 million, up 306% vs. Q1 2012

Q1 2013 Net New Order Value up 74% and Backlog Value up 117% vs. Q1 2012

PR Newswire

IRVINE, Calif., May 2, 2013

IRVINE, Calif., May 2, 2013 /PRNewswire/ --Standard Pacific Corp. (NYSE: SPF)
today announced results for the first quarter ended March 31, 2013.

2013 First Quarter Highlights and Comparisons to the 2012 First Quarter

  oNet income of $21.8 million, or $0.05 per diluted share, vs. $8.5 million,
    or $0.02 per diluted share

       oPretax income of $35.4 million, vs. $8.7 million

  oNet new orders of 1,394, up 49%; Dollar value of net new orders up 74%
  oBacklog of 1,851 homes, up 90%; Dollar value of backlog up 117%
  o158 average active selling communities, flat compared to the prior year
  oHome salerevenues up 61%

       oAverage selling price of $375 thousand, up 9%
       o947 new home deliveries, up 48%

  oGross margin from home sales of 21.0%, compared to 20.3%
  oSG&A rate from home sales of 13.0%, a 410 basis point improvement
  o$118.7 million of land purchases and development costs, compared to $65.8
    million
  oAdjusted Homebuilding EBITDA of $63.8 million*, or 17.8%* of homebuilding
    revenues, compared to $31.8 million*, or 14.2%* of homebuilding revenues
  oHomebuilding cash balance of $308 million

Scott Stowell, the Company's Chief Executive Officer commented, "Reflecting
the significant progress we've made as we continue to execute our strategy and
the lift we've experienced from the current housing market recovery, the
strong performance we demonstrated in 2012 has continued into 2013." Mr.
Stowell added, "I am pleased with the strong start to the year and look
forward to the remainder of 2013."

Revenues from home sales for the 2013 first quarter increased 61%, to $355.1
million, as compared to the prior year period, resulting primarily from a 48%
increase in new home deliveries and a 9% increase in the Company's
consolidated average home price to $375 thousand. The increase in average
home price was primarily attributable to our increasing focus on the move-up
market segment and price increases within most of our markets. The increase
in new home deliveries was driven by a 70% year-over-year increase in the
number of homes in beginning backlog expected to close during the quarter,
partially offset by a decrease in specs sold and closed in the quarter.

Gross margin from home sales for the 2013 first quarter increased to 21.0%
compared to 20.3% in the prior year period. The 70 basis point year-over-year
increase was primarily attributable to price increases, a mix shift to higher
margin communities, and improved margins from speculative homes sold and
delivered during the quarter. Excluding previously capitalized interest
costs, gross margin from home sales was 28.8%* for the 2013 first quarter
versus 28.7%* for the 2012 first quarter. 

The Company's 2013 first quarter SG&A expenses (including Corporate G&A) were
$46.3 million compared to $37.7 million, down 410 basis points as a percentage
of home sale revenues to 13.0%, compared to 17.1% for the 2012 first quarter.
The improvement in the Company's SG&A rate was primarily due to a 61% increase
in revenues from home sales and reflects the operating leverage inherent in
our business.

Net new orders for the 2013 first quarter increased 49% from the 2012 first
quarter to 1,394 homes. The year-over-year growth is primarily attributable
to a 49% increase in the Company's monthly sales absorption rate to 2.9 per
community for the 2013 first quarter, compared to 2.0 per community for the
2012 first quarter, and a 35% increase from 2.2 per community for the 2012
fourth quarter. 

The dollar value of homes in backlog increased 117% to $719.7 million, or
1,851 homes, compared to $331.9 million, or 973 homes, for the 2012 first
quarter, and increased 40% compared to $515.5 million, or 1,404 homes, for the
2012 fourth quarter. The increase in year-over-year backlog value was driven
primarily by a 49% increase in net new orders, a 14% increase in the average
selling price of the homes in backlog and a shift to more to-be-built homes
that have a longer construction cycle. The gross margin of our homes in
backlog was 23.1% at the end of the quarter as compared to 20.2% at the end of
the first quarter of 2012.

The Company used $58.5 million of cash in operating activities for the 2013
first quarter versus $42.1 million in the 2012 first quarter. During the 2013
first quarter, the Company spent $118.7 million on land purchases and
development costs, compared to $65.8 million for the 2012 first quarter.
Excluding land purchases and development costs, cash inflows from operating
activities for the 2013 first quarter were $60.2 million* versus $23.6
million* in the 2012 first quarter. The year-over-year increase in cash
inflows from operating activities (excluding land purchases and development
costs) was primarily due to a 61% increase in home sale revenues.

The Company purchased $71.5 million of land (1,167 homesites) during the 2013
first quarter, of which 34% (based on homesites) was located in Florida, 31%
in California and 26% in Texas, with the balance spread throughout the
Company's other operations. As of March 31, 2013, the Company owned or
controlled 32,123 homesites, of which 20,213 are owned and actively selling or
under development,6,434 are controlled or under option, and the remaining
5,476 homesites are held for future development or for sale. The homesites
owned that are actively selling or under development represent a 5.6 year
supply based on the Company's deliveries for the trailing twelve months ended
March 31, 2013.

Scott Stowell, the Company's Chief Executive Officer concluded, "I am pleased
with our first quarter results and am excited about the strong spring selling
season that has continued into the month of April. In April, we recorded 527
net new orders, raising our April 30 ending backlog to 2,096 units (up 89%
from last year) with an average selling price of $396 thousand and gross
margin in backlog of 23.8%."

Earnings Conference Call

A conference call to discuss the Company's 2013 first quarter results will be
held at 12:00 p.m. Eastern time May 3, 2013. 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 (800) 390-5311 (domestic) or (719) 325-2316
(international); Passcode: 4768857. 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: 4768857.

About Standard Pacific

Standard Pacific Homes (NYSE: SPF) has been building beautiful, high-quality
homes and neighborhoods since its founding in Southern California in 1965.
With a trusted reputation for quality craftsmanship, an outstanding customer
experience and exceptional architectural design, the Company utilizes its
decades of land acquisition, development and homebuilding expertise to
successfully navigate today's complex landscape to acquire and build desirable
communities in locations that meet the high expectations of the Company's
targeted move-up homebuyers. Currently offering new homes in major
metropolitan areas in Arizona, California, Colorado, Florida, North Carolina,
South Carolina, and Texas, we invite you to learn more about us by visiting
standardpacifichomes.com.

This news release contains forward-looking statements. These statements
include but are not limited to statements regarding new home orders,
deliveries, backlog, absorption rates, average home price, revenue,
profitability, cash flow, liquidity, gross margin, overhead expenses and other
costs; community count; product mix; execution on our strategy; our future
performance 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, 2012 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
                 March 31,   March 31,   Percentage   December 31,  Percentage
                 2013        2012        or % Change  2012          or %
                                                                    Change
Operating Data   (Dollars in thousands)
Deliveries         947         642       48%             973        (3%)
Average selling  $ 375       $ 343       9%           $  388        (3%)
price
Home sale        $ 355,126   $ 220,317   61%          $  377,674    (6%)
revenues
Gross margin %
(including land    20.8%       20.0%     0.8%            18.7%      2.1%
sales)
Gross margin %     21.0%       20.3%     0.7%            20.8%      0.2%
from home sales
Gross margin %
from home sales
(excluding
interest           28.8%       28.7%     0.1%            28.9%      (0.1%)
amortized to
cost of home
sales)*
Incentive and
stock-based      $ 4,848     $ 3,905     24%          $  7,013      (31%)
compensation
expense
Selling expenses $ 18,444    $ 12,866    43%          $  19,362     (5%)
G&A expenses
(excluding
incentive and
stock-based      $ 23,002    $ 20,921    10%          $  23,067     (0%)

compensation
expenses)
SG&A expenses    $ 46,294    $ 37,692    23%          $  49,442     (6%)
SG&A % from home   13.0%       17.1%     (4.1%)          13.1%      (0.1%)
sales
Net new orders     1,394       934       49%             983        42%
(homes)
Net new orders   $ 548,561   $ 315,946   74%          $  385,461    42%
(dollar value)
Average active
selling            158         158        ―          150        5%
communities
Monthly sales
absorption rate    2.9         2.0       49%             2.2        35%
per community
Cancellation       10%         13%       (3%)            15%        (5%)
rate
Gross              162         144       13%             178        (9%)
cancellations
Cancellations
from current       86          79        9%              71         21%
quarter sales
Backlog (homes)    1,851       973       90%             1,404      32%
Backlog (dollar  $ 719,652   $ 331,884   117%         $  515,469    40%
value)
Cash flows
(uses) from      $ (58,461)  $ (42,118)  (39%)        $  (111,980)  48%
operating
activities
Cash flows
(uses) from      $ (1,601)   $ (2,346)   32%          $  (1,610)    1%
investing
activities
Cash flows
(uses) from      $ (180)     $ 6,607                  $  (19,311)   99%
financing
activities
Land purchases   $ 71,541    $ 33,986    111%         $  204,796    (65%)
Adjusted
Homebuilding     $ 63,823    $ 31,768    101%         $  68,802     (7%)
EBITDA*
Adjusted
Homebuilding       17.8%       14.2%     3.6%            16.4%      1.4%
EBITDA Margin %*
Homebuilding
interest         $ 35,027    $ 35,315    (1%)         $  35,095     (0%)
incurred
Homebuilding
interest
capitalized to   $ 34,201    $ 30,992    10%          $  33,664     2%
inventories
owned
Homebuilding
interest
capitalized to   $ 826       $ 1,793     (54%)        $  851        (3%)
investments in
JVs
Interest
amortized to
cost of sales    $ 27,885    $ 18,575    50%          $  33,784     (17%)
(incl. cost of
land sales)



                                       As of
                                       March 31,     December 31,  Percentage
                                       2013          2012          or % Change
Balance Sheet Data                     (Dollars in thousands, except per share
                                       amounts)
Homebuilding cash (including           $  308,029    $  366,808    (16%)
restricted cash)
Inventories owned                      $  2,049,702  $  1,971,418  4%
Homesites owned and controlled            32,123        30,767     4%
Homes under construction                  1,907         1,574      21%
Completed specs                           200           215        (7%)
Deferred tax asset valuation allowance $  22,696     $  22,696      ―
Homebuilding debt                      $  1,535,570  $  1,542,018  (0%)
Stockholders' equity                   $  1,287,207  $  1,255,816  2%
Stockholders' equity per share
(including if-convertedpreferred      $  3.55       $  3.48       2%
stock)*
Total consolidated debt to book           55.9%         56.5%      (0.6%)
capitalization
Adjusted net homebuilding debt to         48.8%         48.3%      0.5%
total adjustedbook capitalization*

^1 All 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 March 31,
                                       2013                  2012
                                       (Dollars in thousands, except per share
                                       amounts)
                                       (Unaudited)
Homebuilding:
    Home sale revenues                 $    355,126          $   220,317
    Land sale revenues                      2,595                3,385
          Total revenues                    357,721              223,702
    Cost of home sales                      (280,612)            (175,595)
    Cost of land sales                      (2,583)              (3,366)
          Total cost of sales               (283,195)            (178,961)
               Gross margin                 74,526               44,741
               Gross margin %               20.8%                20.0%
    Selling, general and                    (46,294)             (37,692)
    administrative expenses
    Income (loss) from unconsolidated       1,134                (1,522)
    joint ventures
    Interest expense                         ―               (2,530)
    Other income (expense)                  3,570                4,284
               Homebuilding pretax          32,936               7,281
               income
Financial Services:
    Revenues                                5,677                3,626
    Expenses                                (3,322)              (2,260)
    Other income                            102                  63
               Financial services           2,457                1,429
               pretax income
Income before taxes                         35,393               8,710
Provision for income taxes                  (13,569)             (187)
Net income                                 21,824               8,523
 Less: Net income allocated to             (8,903)              (3,674)
preferred shareholder
 Less: Net income allocated to             (22)                 ―
unvested restricted stock
Net income available to common         $    12,899           $   4,849
stockholders
Income Per Common Share:
    Basic                              $    0.06             $   0.02
    Diluted                            $    0.05             $   0.02
Weighted Average Common Shares
Outstanding:
    Basic                                   214,166,912          195,109,252
    Diluted                                 252,947,416          199,873,977
Weighted average additional common
shares outstanding if preferred shares      147,812,786          147,812,786
converted to common shares
Total weighted average diluted common
shares outstanding if preferred shares      400,760,202          347,686,763
converted to common shares



CONDENSED CONSOLIDATED BALANCE SHEETS
                                                     March 31,    December 31,
                                                     2013         2012
                                                     (Dollars in thousands)
ASSETS                                               (Unaudited)
Homebuilding:
 Cash and equivalents                                $ 280,467    $  339,908
 Restricted cash                                       27,562        26,900
 Trade and other receivables                           19,640        10,724
 Inventories:
  Owned                                                2,049,702     1,971,418
  Not owned                                            72,019        71,295
 Investments in unconsolidated joint ventures          53,024        52,443
 Deferred income taxes, net                            441,344       455,372
 Other assets                                          39,322        41,918
        Total Homebuilding Assets                      2,983,080     2,969,978
Financial Services:
 Cash and equivalents                                  5,846         6,647
 Restricted cash                                       2,420         2,420
 Mortgage loans held for sale, net                     119,246       119,549
 Mortgage loans held for investment, net               9,716         9,923
 Other assets                                          5,391         4,557
        Total Financial Services Assets                142,619       143,096
                    Total Assets                     $ 3,125,699  $  3,113,074
LIABILITIES AND EQUITY
Homebuilding:
 Accounts payable                                    $ 20,868     $  22,446
 Accrued liabilities                                   186,712       198,144
 Secured project debt and other notes payable          4,423         11,516
 Senior notes payable                                  1,531,147     1,530,502
        Total Homebuilding Liabilities                 1,743,150     1,762,608
Financial Services:
 Accounts payable and other liabilities                2,066         2,491
 Mortgage credit facilities                            93,276        92,159
        Total Financial Services Liabilities           95,342        94,650
                    Total Liabilities                  1,838,492     1,857,258
Equity:
 Stockholders' Equity:
  Preferred stock, $0.01 par value; 10,000,000
  sharesauthorized; 450,829 shares issued and         5             5
  outstanding at March 31, 2013 and December 31,
  2012
  Common stock, $0.01 par value; 600,000,000
  sharesauthorized; 215,210,139 and 213,245,488       2,152         2,132
  sharesissued and outstanding at March 31, 2013
  andDecember 31, 2012, respectively
  Additional paid-in capital                           1,341,223     1,333,255
  Accumulated deficit                                  (55,524)      (77,348)
  Accumulated other comprehensive loss, net of tax     (649)         (2,228)
        Total Equity                                   1,287,207     1,255,816
                    Total Liabilities and Equity     $ 3,125,699  $  3,113,074



INVENTORIES
                                            March 31,    December 31,
                                            2013         2012
                                            (Dollars in thousands)
Inventories Owned:                          (Unaudited)
 Land and land under development        $ 1,450,962  $ 1,444,161
 Homes completed and under construction 495,110      427,196
 Model homes                            103,630      100,061
 Total inventories owned             $ 2,049,702  $ 1,971,418
Inventories Owned by Segment:
 California                             $ 1,087,285  $ 1,086,159
 Southwest                              504,391      461,201
 Southeast                              458,026      424,058
 Total inventories owned             $ 2,049,702  $ 1,971,418



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                  Three Months Ended March 31,
                                                  2013            2012
                                                  (Dollars in thousands)
                                                  (Unaudited)
Cash Flows From Operating Activities:
 Net income                                       $   21,824      $  8,523
 Adjustments to reconcile net income to net
 cashprovided by (used in) operating activities:
          Amortization of stock-based                 1,531          1,074
          compensation
          Deposit write-offs                          ―          133
          Deferred income taxes                       13,374         ―
          Other operating activities                  1,412          2,128
          Changes in cash and equivalents due to:
                    Trade and other receivables       (8,916)        (6,991)
                    Mortgage loans held for sale      140            8,533
                    Inventories - owned               (73,030)       (44,201)
                    Inventories - not owned           (4,940)        (2,627)
                    Other assets                      1,829          1,028
                    Accounts payable                  (1,578)        1,915
                    Accrued liabilities               (10,107)       (11,633)
    Net cash provided by (used in) operating          (58,461)       (42,118)
    activities
Cash Flows From Investing Activities:
 Investments in unconsolidated homebuilding joint     (2,552)        (2,867)
 ventures
 Distributions of capital from unconsolidated         1,320          989
 joint ventures
 Other investing activities                           (369)          (468)
    Net cash provided by (used in) investing          (1,601)        (2,346)
    activities
Cash Flows From Financing Activities:
 Change in restricted cash                            (662)          3,574
 Principal payments on secured project debt and       (7,093)        (466)
 other notes payable
 Net proceeds from (payments on) mortgage credit      1,117          2,721
 facilities
 Proceeds from the exercise of stock options          6,458          778
    Net cash provided by (used in) financing          (180)          6,607
    activities
Net increase (decrease) in cash and equivalents       (60,242)       (37,857)
Cash and equivalents at beginning of period           346,555        410,522
Cash and equivalents at end of period             $   286,313     $  372,665
Cash and equivalents at end of period             $   286,313     $  372,665
Homebuilding restricted cash at end of period         27,562         27,798
Financial services restricted cash at end of          2,420          1,295
period
Cash and equivalents and restricted cash at end   $   316,295     $  401,758
of period



REGIONAL OPERATING DATA
                                    Three Months Ended March 31,
                                    2013           2012  % Change
New homes delivered:
 California                         400            225   78%
 Arizona                            63             46    37%
 Texas                              133            124   7%
 Colorado                           43             24    79%
 Nevada                              ―    3     (100%)
 Florida                            183            126   45%
 Carolinas                          125            94    33%
   Consolidated total               947            642   48%
 Unconsolidated joint ventures      14             4     250%
   Total (including joint ventures) 961            646   49%

                                            Three Months Ended March 31,
                                            2013         2012   % Change
                                            (Dollars in thousands)
Average selling prices of homes delivered:
   California                               $ 492        $ 498  (1%)
   Arizona                                    249          208  20%
   Texas                                      348          298  17%
   Colorado                                   400          377  6%
   Nevada                                      ―    190   ―
   Florida                                    259          246  5%
   Carolinas                                  254          226  12%
         Consolidated                         375          343  9%
   Unconsolidated joint ventures              510          460  11%
         Total (including joint ventures)   $ 377        $ 344  10%

                                     Three Months Ended March 31,
                                     2013          2012  % Change
Net new orders:
 California                          482           327   47%
 Arizona                             75            83    (10%)
 Texas                               242           141   72%
 Colorado                            62            26    138%
 Nevada                               ―   5     (100%)
 Florida                             293           186   58%
 Carolinas                           240           166   45%
   Consolidated total                1,394         934   49%
 Unconsolidated joint ventures       9             8     13%
   Total (including joint ventures)  1,403         942   49%

                                        Three Months Ended March 31,
                                        2013          2012  % Change
Average number of selling communities
 during the period:
  California                            44            51    (14%)
  Arizona                               8             9     (11%)
  Texas                                 29            19    53%
  Colorado                              7             6     17%
  Nevada                                 ―  1     (100%)
  Florida                               37            37     ―
  Carolinas                             33            35    (6%)
      Consolidated total                158           158    ―
  Unconsolidated joint ventures          ―  3     (100%)
      Total (including joint ventures)  158           161   (2%)

                      At March 31,
                      2013               2012              % Change
                      Homes   Dollar     Homes  Dollar     Homes       Dollar
                              Value             Value                  Value
                      (Dollars in thousands)
Backlog:
 California            522    $ 284,034    276  $ 142,152   89%         100%
 Arizona               89       24,886     94     18,384    (5%)        35%
 Texas                 313      126,276    166    53,438    89%         136%
 Colorado              94       42,374     35     14,118    169%        200%
 Nevada                ―     ―      5      953       (100%)      (100%)
 Florida               476      134,880    222    57,632    114%        134%
 Carolinas             357      107,202    175    45,207    104%        137%
   Consolidated        1,851    719,652    973    331,884   90%         117%
   total
 Unconsolidated        7        3,241      7      3,304        (2%)
 joint ventures                                             ―
   Total (including    1,858  $ 722,893    980  $ 335,188   90%         116%
   joint ventures)

                                             At March 31,
                                             2013    2012    % Change
Homesites owned and controlled:
 California                                  10,407  9,031   15%
 Arizona                                     1,902   1,826   4%
 Texas                                       5,165   4,199   23%
 Colorado                                    1,174   666     76%
 Nevada                                      1,124   1,130   (1%)
 Florida                                     8,445   6,276   35%
 Carolinas                                   3,906   2,989   31%
       Total (including joint ventures)      32,123  26,117  23%
 Homesites owned                             25,689  19,935  29%
 Homesites optioned or subject to contract  5,837   4,960   18%
 Joint venture homesites                     597     1,222   (51%)
       Total (including joint ventures)      32,123  26,117  23%
Homesites owned:
 Raw lots                                    5,722   2,749   108%
 Homesites under development                 8,371   5,897   42%
 Finished homesites                          5,616   5,531   2%
 Under construction or completed homes       2,583   1,872   38%
 Held for sale                               3,397   3,886   (13%)
       Total                                 25,689  19,935  29%

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
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
                   March 31,    Gross   March 31,    Gross   December     Gross
                                                             31,
                   2013         Margin  2012         Margin               Margin
                                %                    %       2012         %
                   (Dollars in thousands)
Home sale revenues $ 355,126            $ 220,317            $ 377,674
Less: Cost of home   (280,612)            (175,595)            (299,105)
sales
Gross margin from    74,514     21.0%     44,722     20.3%     78,569     20.8%
home sales
Add: Capitalized
interest included    27,696     7.8%      18,556     8.4%      30,592     8.1%
in costof home
sales
Gross margin from
home sales,
excludinginterest $ 102,210    28.8%   $ 63,278     28.7%   $ 109,161    28.9%
amortized to cost
of 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
                                          March 31,   March 31,   December 31,

                                          2013        2012        2012
                                          (Dollars in thousands)
Cash flows used in operations             $ (58,461)  $ (42,118)  $  (111,980)
Add: Cash land purchases                   71,541      33,986       204,796
Add: Land development costs                 47,152      31,778       62,806
Cash inflows from operations (excluding   $ 60,232    $ 23,646    $  155,622
land purchases and development costs)

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.



                            March 31,    December 31,  March 31,

                            2013         2012          2012
                            (Dollars in thousands)
Total consolidated debt     $ 1,628,846  $  1,634,177  $ 1,375,609
Less:
      Financial services      (93,276)      (92,159)     (49,529)
      indebtedness
      Homebuilding cash       (308,029)     (366,808)    (394,368)
Adjusted net homebuilding     1,227,541     1,175,210    931,712
debt
Stockholders' equity          1,287,207     1,255,816    637,912
Total adjusted book         $ 2,514,748  $  2,431,026  $ 1,569,624
capitalization
Total consolidated debt to    55.9%         56.5%        68.3%
book capitalization
Adjusted net homebuilding
debt to total adjusted book   48.8%         48.3%        59.4%
capitalization

The table set forth below calculates pro forma stockholders' equity per common
share. 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.



                                                  March 31,      December 31,
                                                  2013           2012
Actual common shares outstanding                    215,210,139    213,245,488
Add: Conversion of preferred shares to common       147,812,786    147,812,786
shares
Pro forma common shares outstanding                 363,022,925    361,058,274
Stockholders' equity (Dollars in thousands)       $ 1,287,207    $ 1,255,816
Divided by pro forma common shares outstanding    ÷ 363,022,925  ÷ 361,058,274
Pro forma stockholders' equity per common share   $ 3.55         $ 3.48

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 March 31,
                   March 31,  March 31,  December 31,
                                                       2013          2012
                   2013       2012       2012
                   (Dollars in thousands)
Net income        $ 21,824   $ 8,523    $ 486,925     $ 544,722     $ 6,903
 Provision
 (benefit) for       13,569     187        (453,804)     (439,852)     31
 income taxes
 Homebuilding
 interest
 amortized to cost   27,885     21,105     34,364        117,078       94,414
 of sales and
 interest expense
 Homebuilding
 depreciation and    628        590        617           2,410         2,571
 amortization
 Amortization of
 stock-based         1,531      1,074      2,633         7,608         10,391
 compensation
EBITDA               65,437     31,479     70,735        231,966       114,310
Add:
 Cash
 distributions of                                                
 income from         1,875      ―        2,625         5,785         ―
 unconsolidated
 joint ventures
 Impairment
 charges and              133         ―     ―    15,467
 deposit             ―
 write-offs
Less:
 Income (loss)
 from                1,134      (1,522)    617           566           (1,058)
 unconsolidated
 joint ventures
 Income from
 financial           2,355      1,366      3,941         11,227        4,230
 services
 subsidiary
Adjusted
Homebuilding       $ 63,823   $ 31,768   $ 68,802      $ 225,958     $ 126,605
EBITDA
Homebuilding       $ 357,721  $ 223,702  $ 419,843     $ 1,370,977   $ 962,996
revenues
Adjusted
Homebuilding         17.8%      14.2%      16.4%         16.5%         13.1%
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 March 31,
                     March 31,  March 31,   December
                                            31,          2013         2012
                     2013       2012
                                            2012
                     (Dollars in thousands)
Net cash provided
by (used in)        $ (58,461)  $ (42,118)  $ (111,980)  $ (299,459)  $ (254,581)
operating
activities
Add:
 Provision for        195         187         196          774          31
 income taxes
 Homebuilding
 interest amortized
 to cost of sales     27,885      21,105      34,364       117,078      94,414
 and interest
 expense
Less:
 Income from
 financial services   2,355       1,366       3,941        11,227       4,230
 subsidiary
 Depreciation and
 amortization from    28          16          32           120          284
 financial services
 subsidiary
 Loss on disposal                 
 of property and      15          ―        22           52           177
 equipment
Net changes in
operating assets
and liabilities:
  Trade and other     8,916       6,991       (12,944)     1,124        11,186
  receivables
  Mortgage loans      (140)       (8,533)     32,323       54,732       45,422
  held for sale
  Inventories-owned   73,030      44,201      129,807      344,468      221,502
  Inventories-not     4,940       2,627       20,861       33,864       19,544
  owned
  Other assets        (1,829)     (1,028)     (1,696)      (3,419)      (4,100)
  Accounts payable   1,578       (1,915)     (5,988)      (1,124)      (3,959)
  Accrued             10,107      11,633      (12,146)     (10,681)     1,837
  liabilities
Adjusted            $ 63,823    $ 31,768    $ 68,802     $ 225,958    $ 126,605
Homebuilding EBITDA

SOURCE Standard Pacific Corp.
 
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