Ohio (State or other jurisdiction of incorporation) | 1-12434 (Commission File Number) | 31-1210837 (I.R.S. Employer Identification No.) |
3 Easton Oval, Suite 500, Columbus, Ohio (Address of principal executive offices) | 43,219 (Zip Code) |
Exhibit No. | Description of Documents | |
99.1 | Press release dated July 23, 2015. |
By: | /s/Ann Marie W. Hunker |
Ann Marie W. Hunker | |
Vice President and Corporate Controller | |
(Principal Accounting Officer) |
Exhibit No. | Description of Documents | |
99.1 | Press release dated July 23, 2015. |
• | Pre-tax income of $21.9 million - a 43% increase over 2014’s second quarter |
• | Revenue increased 15% to $323 million; average closing price increased 11% |
• | Gross margin of 21.8%, up 60 basis points from 2014’s second quarter |
• | Net income of $13.4 million ($0.43 per diluted share) |
• | New contracts increased 8%; homes delivered increased 3% |
• | Backlog sales value increased 20% |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
New contracts | 1,100 | 1,016 | 2,208 | 1,998 | |||||||||||
Average community count | 154 | 152 | 153 | 155 | |||||||||||
Cancellation rate | 14 | % | 15 | % | 14 | % | 15 | % | |||||||
Backlog units | 1,794 | 1,647 | |||||||||||||
Backlog value | $ | 656,935 | $ | 546,221 | |||||||||||
Homes delivered | 919 | 894 | 1,636 | 1,631 | |||||||||||
Average home closing price | $ | 340 | $ | 306 | $ | 333 | $ | 303 | |||||||
Homebuilding revenue: | |||||||||||||||
Housing revenue | $ | 312,112 | $ | 273,374 | $ | 545,112 | $ | 494,084 | |||||||
Land revenue | 1,810 | 1,764 | 23,871 | 8,030 | |||||||||||
Total homebuilding revenue | $ | 313,922 | $ | 275,138 | $ | 568,983 | $ | 502,114 | |||||||
Financial services revenue | 8,934 | 6,470 | 17,032 | 14,335 | |||||||||||
Total revenue | $ | 322,856 | $ | 281,608 | $ | 586,015 | $ | 516,449 | |||||||
Cost of sales - operations | 252,595 | 221,217 | 458,778 | 405,181 | |||||||||||
Cost of sales - impairment | — | 804 | — | 804 | |||||||||||
Gross margin | $ | 70,261 | $ | 59,587 | $ | 127,237 | $ | 110,464 | |||||||
General and administrative expense | 21,705 | 21,281 | 41,039 | 39,596 | |||||||||||
Selling expense | 22,935 | 20,251 | 40,621 | 36,220 | |||||||||||
Operating income | $ | 25,621 | $ | 18,055 | $ | 45,577 | $ | 34,648 | |||||||
Equity in (income) loss of unconsolidated joint ventures | (14 | ) | 22 | (212 | ) | (40 | ) | ||||||||
Interest expense | 3,750 | 2,730 | 8,212 | 6,900 | |||||||||||
Income before income taxes | $ | 21,885 | $ | 15,303 | $ | 37,577 | $ | 27,788 | |||||||
Provision for income taxes | 8,535 | 1,749 | 14,659 | 1,602 | |||||||||||
Net income | $ | 13,350 | $ | 13,554 | $ | 22,918 | $ | 26,186 | |||||||
Preferred dividends | 1,219 | 1,219 | 2,438 | 2,438 | |||||||||||
Net income to common shareholders | $ | 12,131 | $ | 12,335 | $ | 20,480 | $ | 23,748 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.50 | $ | 0.84 | $ | 0.97 | |||||||
Diluted | $ | 0.43 | $ | 0.44 | $ | 0.74 | $ | 0.85 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 24,531 | 24,470 | 24,523 | 24,444 | |||||||||||
Diluted | 30,023 | 29,913 | 30,002 | 29,891 |
As of | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 26,947 | $ | 43,719 | |||
Mortgage loans held for sale | 75,063 | 64,782 | |||||
Inventory: | |||||||
Lots, land and land development | 486,895 | 366,945 | |||||
Land held for sale | 5,754 | 3,450 | |||||
Homes under construction | 444,855 | 384,930 | |||||
Other inventory | 103,440 | 60,815 | |||||
Total Inventory | $ | 1,040,944 | $ | 816,140 | |||
Property and equipment - net | 11,819 | 11,283 | |||||
Investments in unconsolidated joint ventures | 28,357 | 42,182 | |||||
Deferred income taxes, net of valuation allowance | 81,054 | 109,558 | |||||
Other assets | 50,805 | 39,042 | |||||
Total Assets | $ | 1,314,989 | $ | 1,126,706 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 228,669 | $ | 228,269 | |||
Convertible senior subordinated notes due 2017 | 57,500 | 57,500 | |||||
Convertible senior subordinated notes due 2018 | 86,250 | 86,250 | |||||
Notes payable bank - homebuilding | 105,600 | — | |||||
Notes payable - other | 8,230 | 7,717 | |||||
Total Debt - Homebuilding Operations | $ | 486,249 | $ | 379,736 | |||
Notes payable bank - financial services operations | 69,681 | 61,914 | |||||
Total Debt | $ | 555,930 | $ | 441,650 | |||
Accounts payable | 90,643 | 87,325 | |||||
Other liabilities | 101,243 | 77,587 | |||||
Total Liabilities | $ | 747,816 | $ | 606,562 | |||
Shareholders' Equity | 567,173 | 520,144 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,314,989 | $ | 1,126,706 | |||
Book value per common share | $ | 21.06 | $ | 19.21 | |||
Net debt/net capital ratio(2) | 48 | % | 43 | % |
(1) | 2015 and 2014 amounts include $5.2 million and $10.1 million of restricted cash and cash held in escrow, respectively. |
(2) | Net debt/net capital ratio is calculated as total debt minus total cash and cash equivalents, divided by the sum of total debt minus total cash and cash equivalents plus shareholders' equity. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Adjusted EBITDA(1) | $ | 32,760 | $ | 25,601 | $ | 59,529 | $ | 47,777 | |||||||
Cash flow used in operating activities | $ | (16,934 | ) | $ | (64,566 | ) | $ | (46,210 | ) | $ | (66,669 | ) | |||
Cash used in investing activities | $ | (3,183 | ) | $ | (328 | ) | $ | (4,028 | ) | $ | (9,207 | ) | |||
Cash provided by (used in) financing activities | $ | 11,932 | $ | 9,177 | $ | 56,476 | $ | (19,206 | ) | ||||||
Land/lot purchases | $ | 43,617 | $ | 71,880 | $ | 94,817 | $ | 124,883 | |||||||
Land development spending | $ | 44,546 | $ | 34,408 | $ | 82,227 | $ | 51,938 | |||||||
Land gross margin | $ | 218 | $ | 442 | $ | 5,459 | $ | 1,763 | |||||||
Financial services pre-tax income | $ | 4,850 | $ | 3,072 | $ | 9,843 | $ | 7,783 |
(1) | See "Non-GAAP Financial Results / Reconciliation" table below. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 13,350 | $ | 13,554 | $ | 22,918 | $ | 26,186 | |||||||
Add: | |||||||||||||||
Provision for income taxes | 8,535 | 1,749 | 14,659 | 1,602 | |||||||||||
Interest expense net of interest income | 3,265 | 2,352 | 7,368 | 6,129 | |||||||||||
Interest amortized to cost of sales | 3,780 | 3,843 | 7,319 | 6,951 | |||||||||||
Depreciation and amortization | 2,429 | 2,037 | 4,735 | 3,949 | |||||||||||
Non-cash charges | 1,401 | 2,066 | 2,530 | 2,960 | |||||||||||
Adjusted EBITDA | $ | 32,760 | $ | 25,601 | $ | 59,529 | $ | 47,777 |
NEW CONTRACTS | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||
Midwest | 397 | 394 | 1 | % | 817 | 768 | 6 | % | |||||||||
Southern | 407 | 363 | 12 | % | 821 | 699 | 17 | % | |||||||||
Mid-Atlantic | 296 | 259 | 14 | % | 570 | 531 | 7 | % | |||||||||
Total | 1,100 | 1,016 | 8 | % | 2,208 | 1,998 | 11 | % |
HOMES DELIVERED | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||
Midwest | 351 | 291 | 21 | % | 599 | 550 | 9 | % | |||||||||
Southern | 312 | 330 | (5 | )% | 587 | 605 | (3 | )% | |||||||||
Mid-Atlantic | 256 | 273 | (6 | )% | 450 | 476 | (5 | )% | |||||||||
Total | 919 | 894 | 3 | % | 1,636 | 1,631 | — | % |
BACKLOG | |||||||||||||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 723 | $ | 268 | $ | 371,000 | 763 | $ | 247 | $ | 324,000 | |||||||||||
Southern | 684 | $ | 252 | $ | 368,000 | 543 | $ | 182 | $ | 336,000 | |||||||||||
Mid-Atlantic | 387 | $ | 137 | $ | 355,000 | 341 | $ | 117 | $ | 343,000 | |||||||||||
Total | 1,794 | $ | 657 | $ | 366,000 | 1,647 | $ | 546 | $ | 332,000 |
LAND POSITION SUMMARY | ||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,260 | 4,186 | 7,446 | 3,342 | 2,688 | 6,030 | ||||||||
Southern | 4,596 | 4,653 | 9,249 | 5,003 | 4,143 | 9,146 | ||||||||
Mid-Atlantic | 2,559 | 2,484 | 5,043 | 2,582 | 3,233 | 5,815 | ||||||||
Total | 10,415 | 11,323 | 21,738 | 10,927 | 10,064 | 20,991 |
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