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Press release from PR Newswire

Standard Pacific Corp. Reports 2011 First Quarter Results

Thursday, April 28, 2011

Standard Pacific Corp. Reports 2011 First Quarter Results16:15 EDT Thursday, April 28, 2011IRVINE, Calif., April 28, 2011 /PRNewswire/ -- Standard Pacific Corp. (NYSE: SPF) today announced operating results for its first quarter.2011 First Quarter Highlights and Comparisons to the 2010 First QuarterNet loss of $14.8 million, or $0.04 per share, vs. net loss of $5.1 million, or $0.02 per shareRevenues from home sales of $143.7 million, down 18% from $174.9 million439 new home deliveries, down 18% from 537 homes Average home price of $327,000 vs. $326,000Gross margin from home sales of 20.5% vs. 22.7% SG&A rate from home sales of 22.5% (22.1%* excluding restructuring charges) vs. 18.7%Net new orders down 14% to 652 homesBacklog value down 24% to $211.8 million from $278.3 million627 homes in backlog, down 24% from 821 homesCash outflows from operating activities of $110.2 million vs. cash inflows of $33.6 million (2010 included $108 million tax refund)Cash outflows from operating activities before land purchases and land sales was $23.1 million* vs. cash inflows of $84.0 million*Homebuilding cash balance of $619.8 million vs. $591.7 millionAdjusted net homebuilding debt to total adjusted capitalization ratio of 53.4%* vs. 55.1%*Total debt to book capitalization of 68.6% vs. 72.7%Ken Campbell, the Company's CEO commented, "Despite challenging housing market conditions, we continued to make progress with our strategy of opening new communities.  We opened 18 new communities during the quarter and expect to open another 22 communities by the middle of the year, representing a 20% increase in community count compared to last year and bringing our total community count to north of 155."  Mr. Campbell added, "While home pricing has been under pressure over the last few quarters, our gross margin has remained above 20% for the sixth consecutive quarter.  In addition, we increased the dollar value of our backlog by 54% over the 2010 fourth quarter while holding the line on our margins in backlog."  Mr. Campbell continued, "Consistent with our land strategy, we approved the purchase of 2,000 lots totaling $122 million and purchased 1,100 lots for $87 million during the quarter.  With $620 million of cash on hand and the additional liquidity provided by our new senior unsecured revolving credit facility, we believe we have ample liquidity to navigate through the market downturn."For the 2011 first quarter, the Company generated a net loss of $14.8 million, or $0.04 per diluted share, compared to net loss of $5.1 million, or $0.02 per diluted share, for the year earlier period.  The increase in the quarterly loss was driven primarily by an 18% decrease in home sale revenues from $174.9 million for the 2010 first quarter to $143.7 million for the 2011 first quarter and a 220 basis point decline in the Company's gross margin to 20.5%.  The decrease in revenues was primarily the result of an 18% decline in new home deliveries to 439 homes.  The 2011 first quarter also included $0.6 million of restructuring charges related to employee severance.  The Company's consolidated average home price for the 2011 first quarter was $327,000, up slightly from $326,000 for the year earlier period largely due to a mix shift, which was partially offset by slightly lower pricing and fewer California deliveries.  Gross margin from home sales for the 2011 first quarter was 20.5% versus 22.7% for the year earlier period.  The 220 basis point decline in the 2011 first quarter gross margin from home sales was driven by lower margins in substantially all of the Company's markets due to competitive pricing pressure, a mix shift to more deliveries from lower margin projects and, to a lesser extent, a reduction in the percentage of California deliveries as compared to the 2010 first quarter.  Excluding previously capitalized interest costs, gross margin from home sales for the 2011 first quarter was 28.1%* versus 29.2%* for the 2010 first quarter.    The Company's 2011 first quarter SG&A expenses (including Corporate G&A) were $32.3 million compared to $32.8 million for the 2010 first quarter and included noncash stock-based compensation expenses of $1.9 million and $2.0 million, respectively.  The Company's 2011 first quarter SG&A expenses included approximately $0.6 million in restructuring charges related to employee severance costs incurred in connection with further adjusting the Company's workforce to align with lower sales volumes.  The Company's 2011 first quarter SG&A rate from home sales was 22.5% versus 18.7% for the 2010 first quarter.  Excluding restructuring charges, the Company's 2011 first quarter SG&A rate was 22.1%*.  The increase in the Company's SG&A rate was primarily the result of an 18% decrease in revenues from home sales and higher sales and marketing costs associated with new community openings.Net new orders (excluding joint ventures) for the 2011 first quarter decreased 14% from the 2010 first quarter to 652 homes on a 10% increase in the number of average active selling communities from 126 to 138.  The Company's monthly sales absorption rate for the 2011 first quarter was 1.6 per community compared to 2.0 per community for the 2010 first quarter.  The Company's cancellation rate for the 2011 first quarter was 14% versus 15% for the 2010 first quarter and 23% for the 2010 fourth quarter.  The total number of sales cancellations for the 2011 first quarter was 106, of which 59 cancellations related to homes in the Company's 2011 first quarter beginning backlog and 47 related to orders generated during the quarter.  The dollar value of homes in backlog (excluding joint ventures) decreased 24% to $211.8 million, or 627 homes, compared to $278.3 million, or 821 homes, for the 2010 first quarter.  The decrease in backlog value was driven primarily by a 14% decrease in net new orders.The Company used $110.2 million of cash flows from operating activities for the 2011 first quarter versus generating $33.6 million of cash flows from operating activities in the 2010 first quarter.  The decline in cash flows from operations as compared to the 2010 first quarter was driven primarily by a $31.7 million decrease in homebuilding revenues, a $36.3 million increase in land purchases and a $108 million decrease attributable to the federal tax refund that was received in the 2010 first quarter.  Cash outflows from operations for the three months ended March 31, 2011 and 2010 included $87.1 million and $50.8 million, respectively, of cash land purchases.  Excluding cash land purchases and land sales, cash outflows from operating activities for the 2011 first quarter were $23.1 million* versus cash inflows of $84.0 million* in the 2010 first quarter.Earnings Conference CallA conference call to discuss the Company's 2011 first quarter results will be held at 12:00 p.m. Eastern time April 29, 2011.  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) 801-6497 (domestic) or (913) 312-0652 (international); Passcode: 3913688. 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: 3913688. About Standard PacificStandard Pacific, one of the nation's largest homebuilders, has built more than 113,000 homes during its 45-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, Colorado and Nevada.  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, strategy, profitability, cash flow, liquidity, gross margins, overhead expenses and other costs; the opening of new communities; the dollar value and timing of anticipated land purchases; the availability of land opportunities and our ability to consummate these opportunities; and the future condition of 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 of 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, 2010 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: John Stephens, SVP & CFO (949) 789-1641, jstephens@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 EndedMarch 31,March 31,PercentageDecember 31,Percentage20112010or % Change2010or % ChangeOperating Data(Dollars in thousands, except average selling price)Deliveries439537(18%)619(29%)Average selling price$327,000$326,0000%$340,000(4%)Home sale revenues$143,699$174,913(18%)$210,424(32%)Gross margin %20.5%22.7%(2.2%)22.1%(1.6%)Gross margin % from home sales (excluding impairments)*20.5%22.7%(2.2%)23.1%(2.6%)Gross margin % from home sales (excluding impairments andinterest amortized to cost of home sales)*28.1%29.2%(1.1%)30.2%(2.1%)Asset impairments $-$--$2,289(100%)Restructuring charges (excluding debt refinance)$561$--$--SG&A expenses$32,261$32,752(1%)$38,038(15%)SG&A % from home sales22.5%18.7%3.8%18.1%4.4%SG&A % from home sales (excluding restructuring charges)*22.1%18.7%3.4%18.1%4.0%Net new orders652759(14%)42852%Average active selling communities13812610%1343%Monthly sales absorption rate per community1.62.0(20%)1.145%Cancellation rate14%15%(1%)23%(9%)Gross cancellations106133(20%)130(18%)Cancellations from current quarter sales4773(36%)59(20%)Backlog (homes)627821(24%)41451%Backlog (dollar value)$211,813$278,269(24%)$137,42354%Cash flows (uses) from operating activities$(110,150)$33,570(428%)$(52,463)110%Cash flows (uses) from investing activities$(4,049)$(1,008)302%$4,999(181%)Cash flows (uses) from financing activities$(18,997)$(41,863)(55%)$239,507(108%)Land purchases (incl. seller financing and excl. JV investments)$87,110$50,84971%$33,552160%Land sale proceeds$-$452(100%)$1,757(100%)Adjusted Homebuilding EBITDA*$11,018$21,879(50%)$28,892(62%)Adjusted Homebuilding EBITDA Margin %*7.7%12.5%(4.8%)13.6%(5.9%)Homebuilding interest incurred$34,854$26,23033%$28,32823%Homebuilding interest capitalized to inventories owned$22,710$13,59967%$19,42517%Homebuilding interest capitalized to investments in JVs$1,629$646152%$1,45012%Interest amortized to cost of sales (incl. cost of land sales)$10,980$11,796(7%)$14,898(26%)As of March 31,December 31,Percentage20112010or % ChangeBalance Sheet Data(Dollars in thousands, except per share amounts)Homebuilding cash (including restricted cash)$619,807$748,754(17%)Inventories owned$1,292,365$1,181,6979%Lots owned and controlled25,50523,5498%Homes under construction80156841%Completed specs409512(20%)Deferred tax asset valuation allowance$522,025$516,3661%Homebuilding debt$1,321,212$1,320,2540%Joint venture recourse debt$995$3,865(74%)Stockholders' equity$613,252$621,862(1%)Stockholders' equity per share (including if-converted preferred stock)*$1.80$1.83(2%)Total debt to book capitalization*68.6%68.5%0.1%Adjusted net homebuilding debt to total adjusted book capitalization*53.4%47.9%5.5%(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 OPERATIONSThree Months Ended March 31,20112010(Dollars in thousands, except per share amounts)(Unaudited)Homebuilding:Home sale revenues$143,699$174,913Land sale revenues-456Total revenues143,699175,369Cost of home sales(114,312)(135,253)Cost of land sales-(253)Total cost of sales(114,312)(135,506)Gross margin29,38739,863Gross margin %20.5%22.7%Selling, general and administrative expenses(32,261)(32,752)Loss from unconsolidated joint ventures(257)(434)Interest expense(10,515)(11,985)Other income (expense)292424Homebuilding pretax loss(13,354)(4,884)Financial Services:Revenues1,0602,298Expenses(2,418)(2,429)Other income1533Financial services pretax loss(1,343)(98)Loss before income taxes(14,697)(4,982)Provision for income taxes(100)(89)Net loss(14,797)(5,071)    Less: Net loss allocated to preferred shareholder6,4153,002Net loss available to common stockholders$(8,382)$(2,069)Loss per common share:Basic$(0.04)$(0.02)Diluted$(0.04)$(0.02)Weighted average common shares outstanding:Basic193,158,727101,836,408Diluted193,158,727101,836,408Weighted average additional common shares outstanding if preferred shares converted to common shares147,812,786147,812,786CONDENSED CONSOLIDATED BALANCE SHEETSMarch 31,December 31,20112010(Dollars in thousands)ASSETS(Unaudited)Homebuilding:Cash and equivalents$587,394$720,516Restricted cash32,41328,238Trade and other receivables7,3306,167Inventories:Owned1,292,3651,181,697Not owned20,01318,999Investments in unconsolidated joint ventures77,09173,861Deferred income taxes, net8,2979,269Other assets40,03538,1752,064,9382,076,922Financial Services:Cash and equivalents10,78110,855Restricted cash2,8702,870Mortgage loans held for sale, net20,01630,279Mortgage loans held for investment, net9,9389,904Other assets1,5242,29345,12956,201Total Assets$2,110,067$2,133,123LIABILITIES AND EQUITYHomebuilding:Accounts payable$15,785$16,716Accrued liabilities138,342143,127Secured project debt and other notes payable4,3334,738Senior notes payable1,273,4751,272,977Senior subordinated notes payable43,40442,5391,475,3391,480,097Financial Services:Accounts payable and other liabilities781820Mortgage credit facilities20,69530,34421,47631,164Total Liabilities1,496,8151,511,261Equity:Stockholders' Equity:Preferred stock, $0.01 par value; 10,000,000 shares authorized; 450,829 sharesissued and outstanding at March 31, 2011 and December 31, 2010, respectively55Common stock, $0.01 par value; 600,000,000 shares authorized; 197,422,268and 196,641,551 shares issued and outstanding at March 31, 2011and December 31, 2010, respectively1,9741,966Additional paid-in capital1,231,8921,227,292Accumulated deficit(607,149)(592,352)Accumulated other comprehensive loss, net of tax(13,470)(15,049)Total Equity613,252621,862Total Liabilities and Equity$2,110,067$2,133,123INVENTORIESMarch 31,December 31,20112010(Dollars in thousands)Inventories Owned:  (Unaudited)     Land and land under development  $         876,853$         801,681     Homes completed and under construction312,189281,780     Model homes103,32398,236        Total inventories owned$      1,292,365$      1,181,697Inventories Owned by Segment:     California$         798,447$         727,317     Southwest239,025222,791     Southeast254,893231,589        Total inventories owned$      1,292,365$      1,181,697CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSThree Months Ended March 31,20112010(Dollars in thousands)(Unaudited)Cash Flows From Operating Activities:Net income (loss)$(14,797)$(5,071)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:Amortization of stock-based compensation1,9221,964Other operating activities1,2851,079Changes in cash and equivalents due to:Trade and other receivables(1,163)(8,080)Mortgage loans held for sale10,2948,544Inventories - owned(105,146)(40,826)Inventories - not owned(2,810)(11,062)Other assets3,140108,412Accounts payable and accrued liabilities(2,875)(21,390)Net cash provided by (used in) operating activities(110,150)33,570Cash Flows From Investing Activities:Investments in unconsolidated homebuilding joint ventures(3,369)(845)Other investing activities(680)(163)Net cash provided by (used in) investing activities(4,049)(1,008)Cash Flows From Financing Activities:Change in restricted cash(4,175)942Principal payments on secured project debt and other notes payable(405)(34,758)Net proceeds from (payments on) mortgage credit facilities(9,649)(8,561)Other financing activities(4,768)514Net cash provided by (used in) financing activities(18,997)(41,863)Net increase (decrease) in cash and equivalents(133,196)(9,301)Cash and equivalents at beginning of period731,371595,559Cash and equivalents at end of period$598,175$586,258Cash and equivalents at end of period$598,175$586,258Homebuilding restricted cash at end of period32,41314,128Financial services restricted cash at end of period2,8703,195Cash and equivalents and restricted cash at end of period$633,458$603,581REGIONAL OPERATING DATAThree Months Ended March 31,20112010HomesAvg. Selling PriceHomesAvg. Selling PriceNew homes delivered:California170$464,000218$454,000Arizona35205,00047198,000Texas76294,00090299,000Colorado17311,00025298,000Nevada5192,000--Florida62203,00086188,000Carolinas74222,00071227,000Consolidated total439327,000537326,000Unconsolidated joint ventures8391,00013492,000Total (including joint ventures)447$328,000550$330,000Three Months Ended March 31,20112010HomesAvg. Selling CommunitiesHomesAvg. Selling CommunitiesNet new orders:California2324529044Arizona469608Texas1202110618Colorado265296Nevada1131Florida1153314124Carolinas1122413025Consolidated total652138759126Unconsolidated joint ventures83153Total (including joint ventures)660141774129At March 31,20112010Backlog ($ in thousands):HomesValueHomesValueCalifornia181$97,424319$154,630Arizona4710,3316012,518Texas14343,33512537,415Colorado3912,3025816,847Nevada48593591Florida12024,63213325,709Carolinas9322,93012330,559Consolidated total627211,813821278,269Unconsolidated joint ventures52,361115,072Total (including joint ventures)632$214,174832$283,341At March 31,20112010Lots owned and controlled:California9,5778,174Arizona1,9261,974Texas3,4781,681Colorado768271Nevada1,1431,218Florida5,9164,881Carolinas2,6972,306Total (including joint ventures)25,50520,505Lots owned18,22116,220Lots optioned or subject to contract5,8443,295Joint venture lots1,440990Total (including joint ventures)25,50520,505Lots owned:Raw lots4,9335,110Lots under development4,4392,389Finished lots7,1696,893Under construction or completed homes1,6801,828Total18,22116,220RECONCILIATION OF NON-GAAP FINANCIAL MEASURESEach 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 housing 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 EndedMarch 31, 2011GrossMargin %March 31,2010GrossMargin %December 31, 2010GrossMargin %(Dollars in thousands)Home sale revenues$143,699$174,913$210,424Less: Cost of home sales(114,312)(135,253)(163,606)Gross margin from home sales29,38720.5%39,66022.7%46,81822.2%Add: Housing inventory impairment charges--1,818Gross margin from home sales, excluding  impairment charges29,38720.5%39,66022.7%48,63623.1%Add: Capitalized interest included in cost   of home sales10,9807.6%11,3636.5%14,8987.1%Gross margin from home sales, excluding   impairment charges and interest amortized   to cost of home sales$40,36728.1%$51,02329.2%$63,53430.2%The table set forth below reconciles the Company's SG&A expenses to SG&A expenses excluding restructuring charges.  We believe this measure is useful to management and investors as it provides perspective on the underlying operating performance of the business excluding these charges.  Three Months EndedMarch 31,2011March 31,2010December 31,2010(Dollars in thousands)Selling, general and administrative expenses$32,261$32,752$38,038Less: Restructuring charges(561)--Selling, general and administrative expenses, excluding restructuring charges$31,700$32,752$38,038SG&A % from home sales, excluding restructuring charges22.1%18.7%18.1%The table set forth below reconciles the Company's cash flows from operations to cash flows from operations excluding land purchases, proceeds from land sales, payments made to extinguish swap arrangements related to early extinguishment of debt and accelerated interest payments related to debt restructure.  We believe this measure is useful to management and investors to provide perspective on underlying cash flow generation excluding swings related to the timing of land purchases, land sales and debt restructuring activities.Three Months EndedMarch 31,2011March 31,2010December 31,2010(Dollars in thousands)Cash flows from (used in) operations$(110,150)$33,570$(52,463)Add: Cash land purchases87,05550,84933,552Less: Land sale proceeds-(452)(1,757)Add: Swap unwind payments related to debt restructure--24,545Add: Accelerated interest payments related to debt restructure--6,541Cash flows from operations (excluding land purchases,   land sales and debt restructuring payments)$(23,095)$83,967$10,418The table set forth below calculates EBITDA and Adjusted Homebuilding EBITDA.  Adjusted Homebuilding EBITDA means net income (loss) (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges and deposit write-offs, (e) (gain) loss on early extinguishment of debt (f) homebuilding depreciation and amortization, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures and (i) income (loss) from financial services subsidiary.  Other companies may calculate Adjusted Homebuilding EBITDA (or similarly titled measures) differently.  We believe Adjusted Homebuilding EBITDA information is useful to management and investors as one measure of the Company's ability to service debt and obtain financing.  Adjusted Homebuilding EBITDA is a non-GAAP financial measure and due to the significance of the GAAP components excluded, should not be considered in isolation or as an alternative to net income, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP.Three Months EndedLTM Ended March 31,March 31,2011March 31,2010December 31,201020112010(Dollars in thousands)Net income (loss)$(14,797)$(5,071)$(21,857)$(21,450)$30,615Provision (benefit) for income taxes10089(1,190)(546)(96,474)Homebuilding interest amortized to cost of sales and interest expense21,49523,78122,35198,453132,356Homebuilding depreciation and amortization6635514992,1802,566Amortization of stock-based compensation1,9221,9643,25011,80613,299EBITDA9,38321,3143,05390,44382,362Add:Cash distributions of income from unconsolidated joint ventures20--203,465Impairment charges and deposit write-offs--1,9181,91832,135(Gain) loss on early extinguishment of debt--23,83930,02812,122Less:Income (loss) from unconsolidated joint ventures(257)(434)251,343(8,120)Income (loss) from financial services subsidiary(1,358)(131)(107)3512,142Adjusted Homebuilding EBITDA$11,018$21,879$28,892$120,715$136,062Homebuilding revenues$143,699$175,369$212,424$880,748$1,132,231Adjusted Homebuilding EBITDA Margin %7.7%12.5%13.6%13.7%12.0%The table set forth below reconciles net cash provided by (used in) operating activities, calculated and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:Three Months EndedLTM Ended March 31,March 31,2011March 31,2010December 31,201020112010(Dollars in thousands)Net cash provided by (used in) operating activities$(110,150)$33,570$(52,463)$(224,678)$324,402Add:Provision (benefit) for income taxes10089(1,190)(546)(96,474)Homebuilding interest amortized to cost of sales and interest expense21,49523,78122,35198,453132,356Excess tax benefits from share-based payment arrangements-27--324Less:Income (loss) from financial services subsidiary(1,358)(131)(107)3512,142Depreciation and amortization from financial services subsidiary3431573441,120660(Gain) loss on disposal of property and equipment2(36)(2)11,912Net changes in operating assets and liabilities:Trade and other receivables1,1638,080(7,524)(13,458)(6,753)Mortgage loans held for sale(10,294)(8,544)(6,319)(13,915)(17,463)Inventories-owned105,14640,82628,286213,026(243,414)Inventories-not owned2,81011,0623,79119,60913,189Deferred income taxes, net of valuation allowance----96,562Other assets(3,140)(108,412)(2,650)(6,224)(106,403)Accounts payable 931929166,59411,690Accrued liabilities1,94420,46144,82943,32632,760Adjusted Homebuilding EBITDA$11,018$21,879$28,892$120,715$136,062The table set forth below reconciles the Company's total consolidated debt to adjusted net homebuilding debt and provides the Company's total 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 included in liabilities from inventories not owned, indebtedness of the Company's financial services subsidiary and additionally reflects the offset of cash and equivalents.  March 31,2011December 31,2010March 31,2010(Dollars in thousands)Total consolidated debt$1,341,907$1,350,598$1,156,700Less:Financial services indebtedness(20,695)(30,344)(32,434)Homebuilding cash(619,807)(748,754)(591,663)Adjusted net homebuilding debt701,405571,500532,603Stockholders' equity613,252621,862434,568Total adjusted book capitalization$1,314,657$1,193,362$967,171Total debt to book capitalization68.6%68.5%72.7%Adjusted net homebuilding debt to total adjusted book capitalization ratio53.4%47.9%55.1%The table set forth below calculates pro forma stockholders' equity per common share.  The pro forma common shares outstanding include the if-converted 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 of the issuance of preferred shares assuming full conversion to common stock and excluding shares outstanding under the share lending agreement. March 31,December 31,20112010Actual common shares outstanding197,422,268196,641,551Add: Conversion of preferred shares to common shares147,812,786147,812,786Less: Common shares outstanding under share lending facility(3,919,904)(3,919,904)Pro forma common shares outstanding341,315,150340,534,433Stockholders' equity (actual amounts rounded to nearest thousand)$613,252,000$621,862,000Divided by pro forma common shares outstanding÷341,315,150÷340,534,433Pro forma stockholders' equity per common share$1.80$1.83SOURCE Standard Pacific Corp.