Delaware
|
33-0475989
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
1100 Wilson Boulevard, #2100, Arlington, Virginia
(Address of principal executive offices)
|
22209
(Zip Code)
|
N/A
|
||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer x
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Emerging growth company ¨ |
Page No.
|
|||||
PART I. | Financial Information | ||||
ITEM 1.
|
|||||
2 | |||||
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2017 and 2016 | 3 | ||||
4
|
|||||
5
|
|||||
6
|
|||||
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 | |||
ITEM 3. |
39
|
||||
ITEM 4. |
40
|
||||
PART II. | Other Information |
|
|||
ITEM 1. |
42
|
||||
ITEM 1A.
|
42
|
||||
ITEM 2. |
42
|
||||
ITEM 3. |
42
|
||||
ITEM 4. |
42
|
||||
ITEM 5. | Other Information | 42 | |||
ITEM 6. | Exhibits | 43 | |||
SIGNATURES |
44
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
1,620,614
|
$
|
1,558,701
|
$
|
2,958,313
|
$
|
2,737,866
|
||||||||
Land sale revenues
|
500
|
19,661
|
500
|
26,179
|
||||||||||||
Total revenues
|
1,621,114
|
1,578,362
|
2,958,813
|
2,764,045
|
||||||||||||
Cost of home sales
|
(1,297,249
|
)
|
(1,217,793
|
)
|
(2,360,104
|
)
|
(2,149,921
|
)
|
||||||||
Cost of land sales
|
(7
|
)
|
(19,212
|
)
|
(7
|
)
|
(25,579
|
)
|
||||||||
Total cost of sales
|
(1,297,256
|
)
|
(1,237,005
|
)
|
(2,360,111
|
)
|
(2,175,500
|
)
|
||||||||
Gross margin
|
323,858
|
341,357
|
598,702
|
588,545
|
||||||||||||
Selling, general and administrative expenses
|
(173,997
|
)
|
(165,694
|
)
|
(330,273
|
)
|
(302,395
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
446
|
223
|
4,334
|
1,412
|
||||||||||||
Other income (expense)
|
(2,675
|
)
|
(4,415
|
)
|
(2,844
|
)
|
(7,823
|
)
|
||||||||
Homebuilding pretax income
|
147,632
|
171,471
|
269,919
|
279,739
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
20,277
|
20,539
|
40,233
|
38,091
|
||||||||||||
Expenses
|
(11,661
|
)
|
(12,393
|
)
|
(24,036
|
)
|
(23,009
|
)
|
||||||||
Financial services pretax income
|
8,616
|
8,146
|
16,197
|
15,082
|
||||||||||||
Income before taxes
|
156,248
|
179,617
|
286,116
|
294,821
|
||||||||||||
Provision for income taxes
|
(57,254
|
)
|
(66,857
|
)
|
(104,502
|
)
|
(109,400
|
)
|
||||||||
Net income
|
98,994
|
112,760
|
181,614
|
185,421
|
||||||||||||
Less: Net income allocated to unvested restricted stock
|
(408
|
)
|
(251
|
)
|
(705
|
)
|
(350
|
)
|
||||||||
Net income available to common stockholders
|
$
|
98,586
|
$
|
112,509
|
$
|
180,909
|
$
|
185,071
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
0.87
|
$
|
0.95
|
$
|
1.59
|
$
|
1.55
|
||||||||
Diluted
|
$
|
0.75
|
$
|
0.83
|
$
|
1.38
|
$
|
1.36
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
113,689,435
|
118,419,937
|
114,086,136
|
119,617,438
|
||||||||||||
Diluted
|
131,636,412
|
136,088,146
|
132,079,976
|
137,277,899
|
||||||||||||
Cash Dividends Declared Per Common Share
|
$
|
0.04
|
$
|
0.04
|
$
|
0.08
|
$
|
0.08
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Net income
|
$
|
98,994
|
$
|
112,760
|
$
|
181,614
|
$
|
185,421
|
||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Unrealized gain on marketable securities, available for sale
|
―
|
―
|
―
|
39
|
||||||||||||
Total comprehensive income
|
$
|
98,994
|
$
|
112,760
|
$
|
181,614
|
$
|
185,460
|
June 30,
2017 |
December 31,
2016 |
|||||||
(Dollars in thousands)
|
||||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Homebuilding:
|
||||||||
Cash and equivalents
|
$
|
167,833
|
$
|
191,086
|
||||
Restricted cash
|
32,367
|
28,321
|
||||||
Inventories:
|
||||||||
Owned
|
6,654,990
|
6,438,792
|
||||||
Not owned
|
86,618
|
66,267
|
||||||
Investments in unconsolidated joint ventures
|
125,768
|
127,127
|
||||||
Deferred income taxes, net of valuation allowance of $1,925 and $2,456
|
||||||||
at June 30, 2017 and December 31, 2016, respectively
|
312,471
|
330,378
|
||||||
Goodwill
|
985,185
|
970,185
|
||||||
Other assets
|
233,785
|
204,489
|
||||||
Total Homebuilding Assets
|
8,599,017
|
8,356,645
|
||||||
Financial Services:
|
||||||||
Cash and equivalents
|
47,861
|
17,041
|
||||||
Restricted cash
|
21,375
|
21,710
|
||||||
Mortgage loans held for sale, net
|
155,180
|
262,058
|
||||||
Mortgage loans held for investment, net
|
25,613
|
24,924
|
||||||
Other assets
|
17,750
|
26,666
|
||||||
Total Financial Services Assets
|
267,779
|
352,399
|
||||||
Total Assets
|
$
|
8,866,796
|
$
|
8,709,044
|
||||
LIABILITIES AND EQUITY
|
||||||||
Homebuilding:
|
||||||||
Accounts payable
|
$
|
146,383
|
$
|
211,780
|
||||
Accrued liabilities
|
542,568
|
599,905
|
||||||
Revolving credit facility
|
―
|
―
|
||||||
Secured project debt and other notes payable
|
27,041
|
27,579
|
||||||
Senior notes payable
|
3,735,232
|
3,392,208
|
||||||
Total Homebuilding Liabilities
|
4,451,224
|
4,231,472
|
||||||
Financial Services:
|
||||||||
Accounts payable and other liabilities
|
19,374
|
22,559
|
||||||
Mortgage credit facility
|
149,828
|
247,427
|
||||||
Total Financial Services Liabilities
|
169,202
|
269,986
|
||||||
Total Liabilities
|
4,620,426
|
4,501,458
|
||||||
Equity:
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued
|
||||||||
and outstanding at June 30, 2017 and December 31, 2016
|
―
|
―
|
||||||
Common stock, $0.01 par value; 600,000,000 shares authorized; 110,204,353
|
||||||||
and 114,429,297 shares issued and outstanding at June 30, 2017 and
|
||||||||
December 31, 2016, respectively
|
1,102
|
1,144
|
||||||
Additional paid-in capital
|
3,060,402
|
3,204,835
|
||||||
Accumulated earnings
|
1,174,374
|
1,001,779
|
||||||
Accumulated other comprehensive income (loss), net of tax
|
(172
|
)
|
(172
|
)
|
||||
Total Stockholders' Equity
|
4,235,706
|
4,207,586
|
||||||
Noncontrolling Interest
|
10,664
|
―
|
||||||
Total Equity
|
4,246,370
|
4,207,586
|
||||||
Total Liabilities and Equity
|
$
|
8,866,796
|
$
|
8,709,044
|
Six Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
181,614
|
$
|
185,421
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
(Income) loss from unconsolidated joint ventures
|
(4,334
|
)
|
(1,412
|
)
|
||||
Depreciation and amortization
|
27,672
|
27,428
|
||||||
Amortization of stock-based compensation
|
9,216
|
7,512
|
||||||
Deferred income tax provision
|
14,866
|
4,315
|
||||||
Other operating activities
|
3,104
|
97
|
||||||
Changes in cash and equivalents due to:
|
||||||||
Mortgage loans held for sale
|
106,893
|
136,903
|
||||||
Inventories - owned
|
(178,314
|
)
|
(271,304
|
)
|
||||
Inventories - not owned
|
(34,472
|
)
|
(19,254
|
)
|
||||
Other assets
|
(13,043
|
)
|
(1,758
|
)
|
||||
Accounts payable
|
(65,397
|
)
|
24,080
|
|||||
Accrued liabilities
|
(47,213
|
)
|
(28,414
|
)
|
||||
Net cash provided by (used in) operating activities
|
592
|
63,614
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Investments in unconsolidated homebuilding joint ventures
|
(25,002
|
)
|
(22,592
|
)
|
||||
Distributions of capital from unconsolidated homebuilding joint ventures
|
8,045
|
8,115
|
||||||
Net cash paid for acquisitions
|
(44,477
|
)
|
―
|
|||||
Other investing activities
|
(9,793
|
)
|
(4,166
|
)
|
||||
Net cash provided by (used in) investing activities
|
(71,227
|
)
|
(18,643
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Change in restricted cash
|
(3,711
|
)
|
6,063
|
|||||
Borrowings from revolving credit facility
|
264,450
|
693,700
|
||||||
Principal payments on revolving credit facility
|
(264,450
|
)
|
(693,700
|
)
|
||||
Principal payments on secured project debt and other notes payable
|
(615
|
)
|
(10,169
|
)
|
||||
Principal payment on senior notes payable
|
(230,000
|
)
|
―
|
|||||
Proceeds from the issuance of senior notes payable
|
579,125
|
300,000
|
||||||
Payment of debt issuance costs
|
(4,595
|
)
|
(2,195
|
)
|
||||
Net proceeds from (payments on) mortgage credit facility
|
(97,599
|
)
|
(128,908
|
)
|
||||
Repurchases of common stock
|
(150,014
|
)
|
(99,829
|
)
|
||||
Common stock dividend payments
|
(9,019
|
)
|
(9,527
|
)
|
||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
(5,303
|
)
|
1,069
|
|||||
Other financing activities
|
(67
|
)
|
(199
|
)
|
||||
Net cash provided by (used in) financing activities
|
78,202
|
56,305
|
||||||
Net increase (decrease) in cash and equivalents
|
7,567
|
101,276
|
||||||
Cash and equivalents at beginning of period
|
208,127
|
186,594
|
||||||
Cash and equivalents at end of period
|
$
|
215,694
|
$
|
287,870
|
||||
Cash and equivalents at end of period
|
$
|
215,694
|
$
|
287,870
|
||||
Homebuilding restricted cash at end of period
|
32,367
|
30,833
|
||||||
Financial services restricted cash at end of period
|
21,375
|
22,008
|
||||||
Cash and equivalents and restricted cash at end of period
|
$
|
269,436
|
$
|
340,711
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Homebuilding revenues:
|
||||||||||||||||
North
|
$
|
331,071
|
$
|
241,274
|
$
|
565,847
|
$
|
427,829
|
||||||||
Southeast
|
429,269
|
386,836
|
780,372
|
664,318
|
||||||||||||
Southwest
|
406,636
|
433,603
|
742,851
|
776,637
|
||||||||||||
West
|
454,138
|
516,649
|
869,743
|
895,261
|
||||||||||||
Total homebuilding revenues
|
$
|
1,621,114
|
$
|
1,578,362
|
$
|
2,958,813
|
$
|
2,764,045
|
||||||||
Homebuilding pretax income (1):
|
||||||||||||||||
North
|
$
|
29,732
|
$
|
17,980
|
$
|
48,597
|
$
|
27,550
|
||||||||
Southeast
|
31,885
|
31,772
|
55,601
|
52,822
|
||||||||||||
Southwest
|
38,932
|
46,907
|
69,109
|
73,833
|
||||||||||||
West
|
47,083
|
74,812
|
96,612
|
125,534
|
||||||||||||
Total homebuilding pretax income
|
$
|
147,632
|
$
|
171,471
|
$
|
269,919
|
$
|
279,739
|
||||||||
Homebuilding income (loss) from unconsolidated joint ventures:
|
||||||||||||||||
North
|
$
|
155
|
$
|
67
|
$
|
447
|
$
|
374
|
||||||||
Southeast
|
―
|
(19
|
)
|
―
|
437
|
|||||||||||
Southwest
|
154
|
257
|
263
|
824
|
||||||||||||
West
|
137
|
(82
|
)
|
3,624
|
(223
|
)
|
||||||||||
Total homebuilding income (loss) from unconsolidated joint ventures
|
$
|
446
|
$
|
223
|
$
|
4,334
|
$
|
1,412
|
(1)
|
Homebuilding pretax income includes depreciation and amortization expense of $2.2 million, $4.2 million, $3.0 million and $5.5 million, respectively, in the North, Southeast, Southwest and West for the quarter ended June 30, 2017 and $1.5 million, $4.2 million, $3.2 million and $6.5 million, respectively, in the North, Southeast, Southwest and West for the quarter ended June 30, 2016. Homebuilding pretax income includes depreciation and amortization expense of $3.6 million, $7.7 million, $5.5 million and $10.8 million, respectively, in the North, Southeast, Southwest and West for the six months ended June 30, 2017 and $2.7 million, $7.0 million, $5.9 million and $11.8 million, respectively, in the North, Southeast, Southwest and West for the six months ended June 30, 2016.
|
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
(Dollars in thousands)
|
||||||||
Homebuilding assets:
|
||||||||
North
|
$
|
1,279,502
|
$
|
1,181,544
|
||||
Southeast
|
2,342,138
|
2,253,289
|
||||||
Southwest
|
1,839,474
|
1,842,869
|
||||||
West
|
2,537,127
|
2,500,163
|
||||||
Corporate
|
600,776
|
578,780
|
||||||
Total homebuilding assets
|
$
|
8,599,017
|
$
|
8,356,645
|
||||
Homebuilding investments in unconsolidated joint ventures:
|
||||||||
North
|
$
|
5,726
|
$
|
5,691
|
||||
Southeast
|
162
|
334
|
||||||
Southwest
|
5,393
|
6,085
|
||||||
West
|
114,487
|
115,017
|
||||||
Total homebuilding investments in unconsolidated joint ventures
|
$
|
125,768
|
$
|
127,127
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$
|
98,994
|
$
|
112,760
|
$
|
181,614
|
$
|
185,421
|
||||||||
Less: Net income allocated to unvested restricted stock
|
(408
|
)
|
(251
|
)
|
(705
|
)
|
(350
|
)
|
||||||||
Net income available to common stockholders for basic
|
||||||||||||||||
earnings per common share
|
98,586
|
112,509
|
180,909
|
185,071
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Interest on 1.625% convertible senior notes due 2018
|
94
|
91
|
468
|
453
|
||||||||||||
Interest on 0.25% convertible senior notes due 2019
|
85
|
82
|
423
|
410
|
||||||||||||
Interest on 1.25% convertible senior notes due 2032
|
64
|
62
|
320
|
310
|
||||||||||||
Net income available to common stock for diluted
|
||||||||||||||||
earnings per share
|
$
|
98,829
|
$
|
112,744
|
$
|
182,120
|
$
|
186,244
|
||||||||
Denominator:
|
||||||||||||||||
Weighted average basic common shares outstanding
|
113,689,435
|
118,419,937
|
114,086,136
|
119,617,438
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Share-based awards
|
821,628
|
583,264
|
868,491
|
575,516
|
||||||||||||
1.625% convertible senior notes due 2018
|
7,171,943
|
7,163,865
|
7,171,943
|
7,163,865
|
||||||||||||
0.25% convertible senior notes due 2019
|
3,641,157
|
3,637,091
|
3,641,157
|
3,637,091
|
||||||||||||
1.25% convertible senior notes due 2032
|
6,312,249
|
6,283,989
|
6,312,249
|
6,283,989
|
||||||||||||
Weighted average diluted shares outstanding
|
131,636,412
|
136,088,146
|
132,079,976
|
137,277,899
|
||||||||||||
Income per common share:
|
||||||||||||||||
Basic
|
$
|
0.87
|
$
|
0.95
|
$
|
1.59
|
$
|
1.55
|
||||||||
Diluted
|
$
|
0.75
|
$
|
0.83
|
$
|
1.38
|
$
|
1.36
|
|
June 30, 2017
|
December 31, 2016
|
|||||||||||
|
Amortized Cost
|
Gross Unrealized Losses
|
Estimated Fair Value
|
Amortized Cost
|
Gross Unrealized Losses
|
Estimated Fair Value
|
|||||||
|
(Dollars in thousands)
|
||||||||||||
Type of security:
|
|
||||||||||||
Municipal bond and metropolitan district securities
|
|
$ 24,994
|
$ (465)
|
$ 24,529
|
$ 18,563
|
$ (465)
|
$ 18,098
|
|
June 30, 2017
|
|||
|
(Dollars in thousands)
|
|||
Contractual maturity:
|
|
|||
Maturing in one year or less
|
|
$
|
―
|
|
Maturing after three years
|
|
24,529
|
||
Total marketable securities, available-for-sale
|
|
$
|
24,529
|
June 30, 2017
|
||||||||||||||||||||
North
|
Southeast
|
Southwest
|
West
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Land and land under development (1)
|
$
|
356,324
|
$
|
1,079,342
|
$
|
434,607
|
$
|
1,286,105
|
$
|
3,156,378
|
||||||||||
Homes completed and under construction
|
514,386
|
789,607
|
890,181
|
847,383
|
3,041,557
|
|||||||||||||||
Model homes
|
59,446
|
130,048
|
113,436
|
154,125
|
457,055
|
|||||||||||||||
Total inventories owned
|
$
|
930,156
|
$
|
1,998,997
|
$
|
1,438,224
|
$
|
2,287,613
|
$
|
6,654,990
|
||||||||||
December 31, 2016
|
||||||||||||||||||||
North
|
Southeast
|
Southwest
|
West
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Land and land under development (1)
|
$
|
445,245
|
$
|
1,177,646
|
$
|
594,585
|
$
|
1,410,264
|
$
|
3,627,740
|
||||||||||
Homes completed and under construction
|
327,421
|
585,938
|
710,509
|
680,241
|
2,304,109
|
|||||||||||||||
Model homes
|
79,306
|
132,968
|
116,575
|
178,094
|
506,943
|
|||||||||||||||
Total inventories owned
|
$
|
851,972
|
$
|
1,896,552
|
$
|
1,421,669
|
$
|
2,268,599
|
$
|
6,438,792
|
(1)
|
During the six months ended June 30, 2017, we purchased $427.7 million of land (6,651 homesites), of which 33% (based on homesites) were located in the North, 30% in the Southeast, 17% in the Southwest, and 20% in the West. During the year ended December 31, 2016, we purchased $960.8 million of land (13,566 homesites), of which 25% (based on homesites) were located in the North, 25% in the Southeast, 24% in the Southwest, and 26% in the West.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Total interest incurred (1)
|
$
|
52,168
|
$
|
55,610
|
$
|
103,873
|
$
|
118,335
|
||||||||
Less: Interest capitalized to inventories owned (1)
|
(51,338
|
)
|
(54,564
|
)
|
(102,213
|
)
|
(116,409
|
)
|
||||||||
Less: Interest capitalized to investments in unconsolidated joint ventures
|
(830
|
)
|
(1,046
|
)
|
(1,660
|
)
|
(1,926
|
)
|
||||||||
Interest expense
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
||||||||
Interest previously capitalized to inventories owned, included in cost of home sales
|
$
|
52,347
|
$
|
40,528
|
$
|
91,775
|
$
|
70,731
|
||||||||
Interest previously capitalized to inventories owned, included in cost of land sales
|
$
|
―
|
$
|
1,302
|
$
|
―
|
$
|
1,481
|
||||||||
Interest previously capitalized to investments in unconsolidated joint ventures,
|
||||||||||||||||
included in income (loss) from unconsolidated joint ventures
|
$
|
8
|
$
|
―
|
$
|
8
|
$
|
―
|
||||||||
Interest capitalized in ending inventories owned (2)
|
$
|
376,638
|
$
|
350,210
|
$
|
376,638
|
$
|
350,210
|
||||||||
Interest capitalized as a percentage of inventories owned
|
5.7
|
%
|
5.5
|
%
|
5.7
|
%
|
5.5
|
%
|
||||||||
Interest capitalized in ending investments in unconsolidated joint ventures (2)
|
$
|
4,515
|
$
|
4,313
|
$
|
4,515
|
$
|
4,313
|
||||||||
Interest capitalized as a percentage of investments in unconsolidated joint ventures
|
3.6
|
%
|
2.9
|
%
|
3.6
|
%
|
2.9
|
%
|
(1)
|
Total interest incurred and interest capitalized to inventories owned during the six months ended June 30, 2016 includes a $9 million increase related to the valuation of the 1.625% convertible senior notes that was completed during the 2016 first quarter.
|
(2)
|
During the three and six months ended June 30, 2017, in connection with lot purchases from our joint ventures, $0 and $0.5 million, respectively, of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned.
|
Six Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
(Dollars in thousands)
|
||||||||
Warranty accrual, beginning of the period
|
$
|
43,932
|
$
|
40,691
|
||||
Warranty costs accrued during the period
|
10,699
|
10,823
|
||||||
Warranty costs paid during the period
|
(11,986
|
)
|
(9,941
|
)
|
||||
Warranty accrual, end of the period
|
$
|
42,645
|
$
|
41,573
|
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
(Dollars in thousands)
|
||||||||
8.4% Senior Notes due May 2017
|
$
|
―
|
$
|
235,175
|
||||
8.375% Senior Notes due May 2018
|
574,695
|
574,501
|
||||||
1.625% Convertible Senior Notes due May 2018
|
221,916
|
220,236
|
||||||
0.25% Convertible Senior notes due June 2019
|
256,616
|
253,777
|
||||||
6.625% Senior Notes due May 2020
|
316,923
|
319,909
|
||||||
8.375% Senior Notes due January 2021
|
395,804
|
395,246
|
||||||
6.25% Senior Notes due December 2021
|
297,861
|
297,623
|
||||||
5.375% Senior Notes due October 2022
|
249,297
|
249,230
|
||||||
5.875% Senior Notes due November 2024
|
426,633
|
296,982
|
||||||
5.25% Senior Notes due June 2026
|
395,204
|
297,483
|
||||||
5.00% Senior Notes due June 2027
|
347,419
|
―
|
||||||
1.25% Convertible Senior Notes due August 2032
|
252,864
|
252,046
|
||||||
$
|
3,735,232
|
$
|
3,392,208
|
Fair Value at
|
||||||||
Description
|
Fair Value Hierarchy
|
June 30,
2017 |
December 31,
2016 |
|||||
(Dollars in thousands) | ||||||||
|
||||||||
Marketable securities, available-for-sale
|
||||||||
Municipal debt securities
|
|
Level 2
|
|
$
|
9,387
|
$
|
9,387
|
|
Metropolitan district bond securities
|
|
Level 3
|
$
|
15,142
|
$
|
8,711
|
||
Mortgage loans held for sale
|
|
Level 2
|
|
$
|
158,804
|
$
|
265,542
|
June 30, 2017
|
December 31, 2016
|
||||||||||||||
Description
|
Fair Value Hierarchy
|
|
Carrying
Amount |
|
Fair Value
|
|
Carrying
Amount |
|
Fair Value
|
||||||
(Dollars in thousands) | |||||||||||||||
|
|||||||||||||||
Financial services assets:
|
|
||||||||||||||
Mortgage loans held for investment, net
|
|
Level 2
|
|
$
|
25,613
|
$
|
25,613
|
$
|
24,924
|
$
|
24,924
|
||||
Homebuilding liabilities:
|
|
||||||||||||||
Senior and convertible senior notes payable, net
|
|
Level 2
|
|
$
|
3,735,232
|
$
|
4,014,703
|
$
|
3,392,208
|
$
|
3,617,838
|
Six Months Ended June 30,
|
|||||||||||
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
|||||||||||
Supplemental Disclosures of Cash Flow Information:
|
|
||||||||||
Cash paid during the period for:
|
|
||||||||||
Income taxes
|
|
$
|
116,638
|
$
|
84,335
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
731,311
|
$
|
662,781
|
$
|
227,022
|
$
|
―
|
$
|
1,621,114
|
||||||||||
Cost of sales
|
(592,162
|
)
|
(531,235
|
)
|
(173,859
|
)
|
―
|
(1,297,256
|
)
|
|||||||||||
Gross margin
|
139,149
|
131,546
|
53,163
|
―
|
323,858
|
|||||||||||||||
Selling, general and administrative expenses
|
(70,729
|
)
|
(83,694
|
)
|
(19,574
|
)
|
―
|
(173,997
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
351
|
165
|
(70
|
)
|
―
|
446
|
||||||||||||||
Equity income of subsidiaries
|
58,400
|
―
|
―
|
(58,400
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
720
|
(525
|
)
|
(195
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(3,911
|
)
|
(228
|
)
|
1,464
|
―
|
(2,675
|
)
|
||||||||||||
Homebuilding pretax income
|
123,980
|
47,264
|
34,788
|
(58,400
|
)
|
147,632
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
8,616
|
―
|
8,616
|
|||||||||||||||
Income before taxes
|
123,980
|
47,264
|
43,404
|
(58,400
|
)
|
156,248
|
||||||||||||||
Provision for income taxes
|
(24,986
|
)
|
(21,900
|
)
|
(10,368
|
)
|
―
|
(57,254
|
)
|
|||||||||||
Net income
|
$
|
98,994
|
$
|
25,364
|
$
|
33,036
|
$
|
(58,400
|
)
|
$
|
98,994
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
648,800
|
$
|
676,049
|
$
|
253,513
|
$
|
―
|
$
|
1,578,362
|
||||||||||
Cost of sales
|
(516,882
|
)
|
(535,832
|
)
|
(184,291
|
)
|
―
|
(1,237,005
|
)
|
|||||||||||
Gross margin
|
131,918
|
140,217
|
69,222
|
―
|
341,357
|
|||||||||||||||
Selling, general and administrative expenses
|
(71,235
|
)
|
(76,915
|
)
|
(17,544
|
)
|
―
|
(165,694
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
57
|
256
|
(90
|
)
|
―
|
223
|
||||||||||||||
Equity income of subsidiaries
|
79,867
|
―
|
―
|
(79,867
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
1,273
|
(934
|
)
|
(339
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(3,668
|
)
|
(668
|
)
|
(79
|
)
|
―
|
(4,415
|
)
|
|||||||||||
Homebuilding pretax income
|
138,212
|
61,956
|
51,170
|
(79,867
|
)
|
171,471
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
8,146
|
―
|
8,146
|
|||||||||||||||
Income before taxes
|
138,212
|
61,956
|
59,316
|
(79,867
|
)
|
179,617
|
||||||||||||||
Provision for income taxes
|
(25,452
|
)
|
(26,074
|
)
|
(15,331
|
)
|
―
|
(66,857
|
)
|
|||||||||||
Net income
|
$
|
112,760
|
$
|
35,882
|
$
|
43,985
|
$
|
(79,867
|
)
|
$
|
112,760
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
1,308,579
|
$
|
1,203,305
|
$
|
446,929
|
$
|
―
|
$
|
2,958,813
|
||||||||||
Cost of sales
|
(1,063,459
|
)
|
(962,787
|
)
|
(333,865
|
)
|
―
|
(2,360,111
|
)
|
|||||||||||
Gross margin
|
245,120
|
240,518
|
113,064
|
―
|
598,702
|
|||||||||||||||
Selling, general and administrative expenses
|
(135,437
|
)
|
(157,085
|
)
|
(37,751
|
)
|
―
|
(330,273
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
1,025
|
298
|
3,011
|
―
|
4,334
|
|||||||||||||||
Equity income of subsidiaries
|
115,997
|
―
|
―
|
(115,997
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
1,594
|
(1,205
|
)
|
(389
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(5,898
|
)
|
(256
|
)
|
3,310
|
―
|
(2,844
|
)
|
||||||||||||
Homebuilding pretax income
|
222,401
|
82,270
|
81,245
|
(115,997
|
)
|
269,919
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
16,197
|
―
|
16,197
|
|||||||||||||||
Income before taxes
|
222,401
|
82,270
|
97,442
|
(115,997
|
)
|
286,116
|
||||||||||||||
Provision for income taxes
|
(40,787
|
)
|
(38,623
|
)
|
(25,092
|
)
|
―
|
(104,502
|
)
|
|||||||||||
Net income
|
$
|
181,614
|
$
|
43,647
|
$
|
72,350
|
$
|
(115,997
|
)
|
$
|
181,614
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor Subsidiaries
|
Non-
Guarantor Subsidiaries |
Consolidating Adjustments
|
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Revenues
|
$
|
1,110,538
|
$
|
1,210,503
|
$
|
443,004
|
$
|
―
|
$
|
2,764,045
|
||||||||||
Cost of sales
|
(889,723
|
)
|
(965,834
|
)
|
(319,943
|
)
|
―
|
(2,175,500
|
)
|
|||||||||||
Gross margin
|
220,815
|
244,669
|
123,061
|
―
|
588,545
|
|||||||||||||||
Selling, general and administrative expenses
|
(126,286
|
)
|
(144,761
|
)
|
(31,348
|
)
|
―
|
(302,395
|
)
|
|||||||||||
Income (loss) from unconsolidated joint ventures
|
746
|
400
|
266
|
―
|
1,412
|
|||||||||||||||
Equity income of subsidiaries
|
134,034
|
―
|
―
|
(134,034
|
)
|
―
|
||||||||||||||
Interest income (expense), net
|
2,610
|
(1,899
|
)
|
(711
|
)
|
―
|
―
|
|||||||||||||
Other income (expense)
|
(7,283
|
)
|
(479
|
)
|
(61
|
)
|
―
|
(7,823
|
)
|
|||||||||||
Homebuilding pretax income
|
224,636
|
97,930
|
91,207
|
(134,034
|
)
|
279,739
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Financial services pretax income
|
―
|
―
|
15,082
|
―
|
15,082
|
|||||||||||||||
Income before taxes
|
224,636
|
97,930
|
106,289
|
(134,034
|
)
|
294,821
|
||||||||||||||
Provision for income taxes
|
(39,215
|
)
|
(43,548
|
)
|
(26,637
|
)
|
―
|
(109,400
|
)
|
|||||||||||
Net income
|
$
|
185,421
|
$
|
54,382
|
$
|
79,652
|
$
|
(134,034
|
)
|
$
|
185,421
|
June 30, 2017
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Cash and equivalents
|
$
|
41,081
|
$
|
31,168
|
$
|
95,584
|
$
|
―
|
$
|
167,833
|
||||||||||
Restricted cash
|
―
|
―
|
32,367
|
―
|
32,367
|
|||||||||||||||
Intercompany receivables
|
2,118,245
|
―
|
320,924
|
(2,439,169
|
)
|
―
|
||||||||||||||
Inventories:
|
||||||||||||||||||||
Owned
|
2,970,751
|
2,278,861
|
1,405,378
|
―
|
6,654,990
|
|||||||||||||||
Not owned
|
42,190
|
32,927
|
11,501
|
―
|
86,618
|
|||||||||||||||
Investments in unconsolidated joint ventures
|
4,889
|
4,228
|
116,651
|
―
|
125,768
|
|||||||||||||||
Investments in subsidiaries
|
2,069,205
|
―
|
―
|
(2,069,205
|
)
|
―
|
||||||||||||||
Deferred income taxes, net
|
319,114
|
―
|
―
|
(6,643
|
)
|
312,471
|
||||||||||||||
Goodwill
|
970,185
|
―
|
15,000
|
―
|
985,185
|
|||||||||||||||
Other assets
|
171,854
|
41,231
|
20,700
|
―
|
233,785
|
|||||||||||||||
Total Homebuilding Assets
|
8,707,514
|
2,388,415
|
2,018,105
|
(4,515,017
|
)
|
8,599,017
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Cash and equivalents
|
―
|
―
|
47,861
|
―
|
47,861
|
|||||||||||||||
Restricted cash
|
―
|
―
|
21,375
|
―
|
21,375
|
|||||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
155,180
|
―
|
155,180
|
|||||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
25,613
|
―
|
25,613
|
|||||||||||||||
Other assets
|
―
|
―
|
19,551
|
(1,801
|
)
|
17,750
|
||||||||||||||
Total Financial Services Assets
|
―
|
―
|
269,580
|
(1,801
|
)
|
267,779
|
||||||||||||||
Total Assets
|
$
|
8,707,514
|
$
|
2,388,415
|
$
|
2,287,685
|
$
|
(4,516,818
|
)
|
$
|
8,866,796
|
|||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Accounts payable
|
$
|
67,733
|
$
|
58,565
|
$
|
20,085
|
$
|
―
|
$
|
146,383
|
||||||||||
Accrued liabilities and intercompany payables
|
323,820
|
1,276,865
|
1,068,572
|
(2,126,689
|
)
|
542,568
|
||||||||||||||
Secured project debt and other notes payable
|
345,023
|
―
|
2,942
|
(320,924
|
)
|
27,041
|
||||||||||||||
Senior notes payable
|
3,735,232
|
―
|
―
|
―
|
3,735,232
|
|||||||||||||||
Total Homebuilding Liabilities
|
4,471,808
|
1,335,430
|
1,091,599
|
(2,447,613
|
)
|
4,451,224
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
19,374
|
―
|
19,374
|
|||||||||||||||
Mortgage credit facility
|
―
|
―
|
149,828
|
―
|
149,828
|
|||||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
169,202
|
―
|
169,202
|
|||||||||||||||
Total Liabilities
|
4,471,808
|
1,335,430
|
1,260,801
|
(2,447,613
|
)
|
4,620,426
|
||||||||||||||
Equity:
|
||||||||||||||||||||
Total Stockholders' Equity
|
4,235,706
|
1,052,985
|
1,016,220
|
(2,069,205
|
)
|
4,235,706
|
||||||||||||||
Noncontrolling interest
|
―
|
―
|
10,664
|
―
|
10,664
|
|||||||||||||||
Total Equity
|
4,235,706
|
1,052,985
|
1,026,884
|
(2,069,205
|
)
|
4,246,370
|
||||||||||||||
Total Liabilities and Equity
|
$
|
8,707,514
|
$
|
2,388,415
|
$
|
2,287,685
|
$
|
(4,516,818
|
)
|
$
|
8,866,796
|
December 31, 2016
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Cash and equivalents
|
$
|
105,261
|
$
|
38,211
|
$
|
47,614
|
$
|
―
|
$
|
191,086
|
||||||||||
Restricted cash
|
―
|
―
|
28,321
|
―
|
28,321
|
|||||||||||||||
Intercompany receivables
|
2,045,773
|
―
|
334,926
|
(2,380,699
|
)
|
―
|
||||||||||||||
Inventories:
|
||||||||||||||||||||
Owned
|
2,825,234
|
2,277,840
|
1,335,718
|
―
|
6,438,792
|
|||||||||||||||
Not owned
|
30,953
|
32,596
|
2,718
|
―
|
66,267
|
|||||||||||||||
Investments in unconsolidated joint ventures
|
4,469
|
4,923
|
117,735
|
―
|
127,127
|
|||||||||||||||
Investments in subsidiaries
|
1,954,418
|
―
|
―
|
(1,954,418
|
)
|
―
|
||||||||||||||
Deferred income taxes, net
|
337,021
|
―
|
―
|
(6,643
|
)
|
330,378
|
||||||||||||||
Goodwill
|
970,185
|
―
|
―
|
―
|
970,185
|
|||||||||||||||
Other assets
|
165,214
|
36,725
|
2,550
|
―
|
204,489
|
|||||||||||||||
Total Homebuilding Assets
|
8,438,528
|
2,390,295
|
1,869,582
|
(4,341,760
|
)
|
8,356,645
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Cash and equivalents
|
―
|
―
|
17,041
|
―
|
17,041
|
|||||||||||||||
Restricted cash
|
―
|
―
|
21,710
|
―
|
21,710
|
|||||||||||||||
Mortgage loans held for sale, net
|
―
|
―
|
262,058
|
―
|
262,058
|
|||||||||||||||
Mortgage loans held for investment, net
|
―
|
―
|
24,924
|
―
|
24,924
|
|||||||||||||||
Other assets
|
―
|
―
|
28,467
|
(1,801
|
)
|
26,666
|
||||||||||||||
Total Financial Services Assets
|
―
|
―
|
354,200
|
(1,801
|
)
|
352,399
|
||||||||||||||
Total Assets
|
$
|
8,438,528
|
$
|
2,390,295
|
$
|
2,223,782
|
$
|
(4,343,561
|
)
|
$
|
8,709,044
|
|||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Homebuilding:
|
||||||||||||||||||||
Accounts payable
|
$
|
92,611
|
$
|
78,729
|
$
|
40,440
|
$
|
―
|
$
|
211,780
|
||||||||||
Accrued liabilities and intercompany payables
|
387,098
|
1,302,228
|
964,796
|
(2,054,217
|
)
|
599,905
|
||||||||||||||
Secured project debt and other notes payable
|
359,025
|
―
|
3,480
|
(334,926
|
)
|
27,579
|
||||||||||||||
Senior notes payable
|
3,392,208
|
―
|
―
|
―
|
3,392,208
|
|||||||||||||||
Total Homebuilding Liabilities
|
4,230,942
|
1,380,957
|
1,008,716
|
(2,389,143
|
)
|
4,231,472
|
||||||||||||||
Financial Services:
|
||||||||||||||||||||
Accounts payable and other liabilities
|
―
|
―
|
22,559
|
―
|
22,559
|
|||||||||||||||
Mortgage credit facility
|
―
|
―
|
247,427
|
―
|
247,427
|
|||||||||||||||
Total Financial Services Liabilities
|
―
|
―
|
269,986
|
―
|
269,986
|
|||||||||||||||
Total Liabilities
|
4,230,942
|
1,380,957
|
1,278,702
|
(2,389,143
|
)
|
4,501,458
|
||||||||||||||
Equity:
|
||||||||||||||||||||
Total Equity
|
4,207,586
|
1,009,338
|
945,080
|
(1,954,418
|
)
|
4,207,586
|
||||||||||||||
Total Liabilities and Equity
|
$
|
8,438,528
|
$
|
2,390,295
|
$
|
2,223,782
|
$
|
(4,343,561
|
)
|
$
|
8,709,044
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(161,020
|
)
|
$
|
10,352
|
$
|
151,260
|
$
|
―
|
$
|
592
|
|||||||||
Cash Flows From Investing Activities:
|
||||||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(137
|
)
|
(59
|
)
|
(24,806
|
)
|
―
|
(25,002
|
)
|
|||||||||||
Distributions of capital from unconsolidated homebuilding joint ventures
|
500
|
1,117
|
6,428
|
―
|
8,045
|
|||||||||||||||
Net cash paid for acquisitions
|
―
|
|
―
|
(44,477
|
)
|
―
|
(44,477
|
)
|
||||||||||||
Loan to parent and subsidiaries
|
―
|
―
|
12,596
|
(12,596
|
)
|
―
|
||||||||||||||
Other investing activities
|
(1,283
|
)
|
(979
|
)
|
(7,531
|
)
|
―
|
(9,793
|
)
|
|||||||||||
Net cash provided by (used in) investing activities
|
(920
|
)
|
79
|
(57,790
|
)
|
(12,596
|
)
|
(71,227
|
)
|
|||||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||||||
Change in restricted cash
|
―
|
―
|
(3,711
|
)
|
―
|
(3,711
|
)
|
|||||||||||||
Borrowings from revolving credit facility
|
264,450
|
―
|
―
|
―
|
264,450
|
|||||||||||||||
Principal payments on revolving credit facility
|
(264,450
|
)
|
―
|
―
|
―
|
(264,450
|
)
|
|||||||||||||
Principal payments on secured project debt and other notes payable
|
―
|
―
|
(615
|
)
|
―
|
(615
|
)
|
|||||||||||||
Principal payment on senior notes payable
|
(230,000
|
)
|
―
|
―
|
―
|
(230,000
|
)
|
|||||||||||||
Proceeds from the issuance of senior notes payable
|
579,125
|
―
|
―
|
―
|
579,125
|
|||||||||||||||
Payment of debt issuance costs
|
(4,595
|
)
|
―
|
―
|
―
|
(4,595
|
)
|
|||||||||||||
Loan from subsidiary
|
(12,596
|
)
|
―
|
―
|
12,596
|
―
|
||||||||||||||
Net proceeds from (payments on) mortgage credit facility
|
―
|
―
|
(97,599
|
)
|
―
|
(97,599
|
)
|
|||||||||||||
(Contributions to) distributions from Corporate and subsidiaries
|
1,210
|
―
|
(1,210
|
)
|
―
|
―
|
||||||||||||||
Repurchases of common stock
|
(150,014
|
)
|
―
|
―
|
―
|
(150,014
|
)
|
|||||||||||||
Common stock dividend payments
|
(9,019
|
)
|
―
|
―
|
―
|
(9,019
|
)
|
|||||||||||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
(5,303
|
)
|
―
|
―
|
―
|
(5,303
|
)
|
|||||||||||||
Other financing activities
|
―
|
―
|
(67
|
)
|
―
|
(67
|
)
|
|||||||||||||
Intercompany advances, net
|
(71,048
|
)
|
(17,474
|
)
|
88,522
|
―
|
―
|
|||||||||||||
Net cash provided by (used in) financing activities
|
97,760
|
(17,474
|
)
|
(14,680
|
)
|
12,596
|
78,202
|
|||||||||||||
Net increase (decrease) in cash and equivalents
|
(64,180
|
)
|
(7,043
|
)
|
78,790
|
―
|
7,567
|
|||||||||||||
Cash and equivalents at beginning of period
|
105,261
|
38,211
|
64,655
|
―
|
208,127
|
|||||||||||||||
Cash and equivalents at end of period
|
$
|
41,081
|
$
|
31,168
|
$
|
143,445
|
$
|
―
|
$
|
215,694
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||
CalAtlantic
Group, Inc. |
Guarantor
Subsidiaries |
Non-Guarantor
Subsidiaries |
Consolidating
Adjustments |
Consolidated
CalAtlantic Group, Inc. |
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(148,603
|
)
|
$
|
77,589
|
$
|
134,628
|
$
|
―
|
$
|
63,614
|
|||||||||
Cash Flows From Investing Activities:
|
||||||||||||||||||||
Investments in unconsolidated homebuilding joint ventures
|
(178
|
)
|
(78
|
)
|
(22,336
|
)
|
―
|
(22,592
|
)
|
|||||||||||
Distributions of capital from unconsolidated homebuilding joint ventures
|
1,107
|
110
|
6,898
|
―
|
8,115
|
|||||||||||||||
Loan to parent and subsidiaries
|
―
|
―
|
41,000
|
(41,000
|
)
|
―
|
||||||||||||||
Other investing activities
|
279
|
(976
|
)
|
(3,469
|
)
|
―
|
(4,166
|
)
|
||||||||||||
Net cash provided by (used in) investing activities
|
1,208
|
(944
|
)
|
22,093
|
(41,000
|
)
|
(18,643
|
)
|
||||||||||||
Cash Flows From Financing Activities:
|
||||||||||||||||||||
Change in restricted cash
|
―
|
―
|
6,063
|
―
|
6,063
|
|||||||||||||||
Borrowings from revolving credit facility
|
693,700
|
―
|
―
|
―
|
693,700
|
|||||||||||||||
Principal payments on revolving credit facility
|
(693,700
|
)
|
―
|
―
|
―
|
(693,700
|
)
|
|||||||||||||
Principal payments on secured project debt and other notes payable
|
(9,974
|
)
|
―
|
(195
|
)
|
―
|
(10,169
|
)
|
||||||||||||
Proceeds from the issuance of senior notes payable
|
300,000
|
―
|
―
|
―
|
300,000
|
|||||||||||||||
Payment of debt issue costs
|
(2,195
|
)
|
―
|
―
|
―
|
(2,195
|
)
|
|||||||||||||
Loan from subsidiary
|
(41,000
|
)
|
―
|
―
|
41,000
|
―
|
||||||||||||||
Net proceeds from (payments on) mortgage credit facility
|
―
|
―
|
(128,908
|
)
|
―
|
(128,908
|
)
|
|||||||||||||
(Contributions to) distributions from Corporate and subsidiaries
|
8,300
|
―
|
(8,300
|
)
|
―
|
―
|
||||||||||||||
Repurchases of common stock
|
(99,829
|
)
|
―
|
―
|
―
|
(99,829
|
)
|
|||||||||||||
Common stock dividend payments
|
(9,527
|
)
|
―
|
―
|
―
|
(9,527
|
)
|
|||||||||||||
Issuance of common stock under employee stock plans, net of tax withholdings
|
1,069
|
―
|
―
|
―
|
1,069
|
|||||||||||||||
Other financing activities
|
―
|
(199
|
)
|
―
|
―
|
(199
|
)
|
|||||||||||||
Intercompany advances, net
|
122,427
|
(130,705
|
)
|
8,278
|
―
|
―
|
||||||||||||||
Net cash provided by (used in) financing activities
|
269,271
|
(130,904
|
)
|
(123,062
|
)
|
41,000
|
56,305
|
|||||||||||||
Net increase (decrease) in cash and equivalents
|
121,876
|
(54,259
|
)
|
33,659
|
―
|
101,276
|
||||||||||||||
Cash and equivalents at beginning of period
|
6,387
|
112,852
|
67,355
|
―
|
186,594
|
|||||||||||||||
Cash and equivalents at end of period
|
$
|
128,263
|
$
|
58,593
|
$
|
101,014
|
$
|
―
|
$
|
287,870
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Homebuilding:
|
||||||||||||||||
Home sale revenues
|
$
|
1,620,614
|
$
|
1,558,701
|
$
|
2,958,313
|
$
|
2,737,866
|
||||||||
Land sale revenues
|
500
|
19,661
|
500
|
26,179
|
||||||||||||
Total revenues
|
1,621,114
|
1,578,362
|
2,958,813
|
2,764,045
|
||||||||||||
Cost of home sales
|
(1,297,249
|
)
|
(1,217,793
|
)
|
(2,360,104
|
)
|
(2,149,921
|
)
|
||||||||
Cost of land sales
|
(7
|
)
|
(19,212
|
)
|
(7
|
)
|
(25,579
|
)
|
||||||||
Total cost of sales
|
(1,297,256
|
)
|
(1,237,005
|
)
|
(2,360,111
|
)
|
(2,175,500
|
)
|
||||||||
Gross margin
|
323,858
|
341,357
|
598,702
|
588,545
|
||||||||||||
Gross margin percentage
|
20.0
|
%
|
21.6
|
%
|
20.2
|
%
|
21.3
|
%
|
||||||||
Selling, general and administrative expenses
|
(173,997
|
)
|
(165,694
|
)
|
(330,273
|
)
|
(302,395
|
)
|
||||||||
Income (loss) from unconsolidated joint ventures
|
446
|
223
|
4,334
|
1,412
|
||||||||||||
Other income (expense)
|
(2,675
|
)
|
(4,415
|
)
|
(2,844
|
)
|
(7,823
|
)
|
||||||||
Homebuilding pretax income
|
147,632
|
171,471
|
269,919
|
279,739
|
||||||||||||
Financial Services:
|
||||||||||||||||
Revenues
|
20,277
|
20,539
|
40,233
|
38,091
|
||||||||||||
Expenses
|
(11,661
|
)
|
(12,393
|
)
|
(24,036
|
)
|
(23,009
|
)
|
||||||||
Financial services pretax income
|
8,616
|
8,146
|
16,197
|
15,082
|
||||||||||||
Income before taxes
|
156,248
|
179,617
|
286,116
|
294,821
|
||||||||||||
Provision for income taxes
|
(57,254
|
)
|
(66,857
|
)
|
(104,502
|
)
|
(109,400
|
)
|
||||||||
Net income
|
98,994
|
112,760
|
181,614
|
185,421
|
||||||||||||
Less: Net income allocated to unvested restricted stock
|
(408
|
)
|
(251
|
)
|
(705
|
)
|
(350
|
)
|
||||||||
Net income available to common stockholders
|
$
|
98,586
|
$
|
112,509
|
$
|
180,909
|
$
|
185,071
|
||||||||
Income Per Common Share:
|
||||||||||||||||
Basic
|
$
|
0.87
|
$
|
0.95
|
$
|
1.59
|
$
|
1.55
|
||||||||
Diluted
|
$
|
0.75
|
$
|
0.83
|
$
|
1.38
|
$
|
1.36
|
||||||||
Weighted Average Common Shares Outstanding:
|
||||||||||||||||
Basic
|
113,689,435
|
118,419,937
|
114,086,136
|
119,617,438
|
||||||||||||
Diluted
|
131,636,412
|
136,088,146
|
132,079,976
|
137,277,899
|
||||||||||||
Cash dividends declared per common share
|
$
|
0.04
|
$
|
0.04
|
$
|
0.08
|
$
|
0.08
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
(91,166
|
)
|
$
|
91,236
|
$
|
592
|
$
|
63,614
|
|||||||
Net cash provided by (used in) investing activities
|
$
|
(56,868
|
)
|
$
|
(15,693
|
)
|
$
|
(71,227
|
)
|
$
|
(18,643
|
)
|
||||
Net cash provided by (used in) financing activities
|
$
|
181,735
|
$
|
19,108
|
$
|
78,202
|
$
|
56,305
|
||||||||
Adjusted Homebuilding EBITDA (1)
|
$
|
220,500
|
$
|
243,048
|
$
|
399,364
|
$
|
414,278
|
(1)
|
Adjusted Homebuilding EBITDA means net income (plus cash distributions of income from unconsolidated joint ventures) before (a) income taxes, (b) homebuilding interest expense, (c) expensing of previously capitalized interest included in cost of sales, (d) impairment charges, (e) gain (loss) on early extinguishment of debt, (f) homebuilding depreciation and amortization, including amortization of capitalized model costs, (g) amortization of stock-based compensation, (h) income (loss) from unconsolidated joint ventures, (i) income (loss) from financial services subsidiaries, (j) purchase accounting adjustments and (k) merger and other one-time transaction related costs. 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 it provides perspective on the underlying performance of the business. However, it should be noted that Adjusted Homebuilding EBITDA is not a U.S. generally accepted accounting principles ("GAAP") financial measure. Due to the significance of the GAAP components excluded, Adjusted Homebuilding EBITDA should not be considered in isolation or as an alternative to cash flows from operations or any other liquidity performance measure prescribed by GAAP.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
LTM Ended June 30,
|
||||||||||||||||||||||
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Net income
|
$
|
98,994
|
$
|
112,760
|
$
|
181,614
|
$
|
185,421
|
$
|
480,923
|
$
|
310,127
|
||||||||||||
Provision for income taxes
|
57,254
|
66,857
|
104,502
|
109,400
|
263,488
|
189,165
|
||||||||||||||||||
Homebuilding interest amortized to cost of sales
|
52,347
|
41,830
|
91,775
|
72,212
|
191,264
|
152,392
|
||||||||||||||||||
Homebuilding depreciation and amortization
|
14,915
|
15,381
|
27,591
|
27,393
|
61,750
|
53,460
|
||||||||||||||||||
EBITDA (1)
|
223,510
|
236,828
|
405,482
|
394,426
|
997,425
|
705,144
|
||||||||||||||||||
Add:
|
||||||||||||||||||||||||
Amortization of stock-based compensation (1)
|
4,922
|
3,726
|
9,216
|
7,512
|
19,498
|
18,052
|
||||||||||||||||||
Cash distributions of income from unconsolidated
|
||||||||||||||||||||||||
joint ventures
|
193
|
―
|
3,274
|
450
|
3,495
|
2,688
|
||||||||||||||||||
Merger-related purchase accounting adjustments
|
||||||||||||||||||||||||
included in cost of home sales
|
―
|
5,858
|
―
|
18,535
|
―
|
82,705
|
||||||||||||||||||
Merger and other one-time costs
|
937
|
5,005
|
1,923
|
9,849
|
8,559
|
65,914
|
||||||||||||||||||
Less:
|
||||||||||||||||||||||||
Income (loss) from unconsolidated joint ventures
|
446
|
223
|
4,334
|
1,412
|
6,979
|
3,880
|
||||||||||||||||||
Income from financial services subsidiaries
|
8,616
|
8,146
|
16,197
|
15,082
|
40,729
|
27,995
|
||||||||||||||||||
Adjusted Homebuilding EBITDA
|
$
|
220,500
|
$
|
243,048
|
$
|
399,364
|
$
|
414,278
|
$
|
981,269
|
$
|
842,628
|
(1)
|
Beginning with the 2016 third quarter, the Company removed amortization of stock-based compensation as a component of the EBITDA subtotal and began including this amount as an adjusting item to calculate Adjusted Homebuilding EBITDA. Prior periods presented have been restated to conform to this new presentation.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Homebuilding revenues:
|
||||||||||||||||||||
North
|
|
$
|
331,071
|
$
|
241,274
|
37%
|
$
|
565,847
|
$
|
427,829
|
32%
|
|||||||||
Southeast
|
|
429,269
|
386,836
|
11%
|
780,372
|
664,318
|
17%
|
|||||||||||||
Southwest
|
|
406,636
|
433,603
|
(6%)
|
742,851
|
776,637
|
(4%)
|
|||||||||||||
West
|
|
|
454,138
|
|
516,649
|
(12%)
|
|
869,743
|
|
895,261
|
(3%)
|
|||||||||
Total homebuilding revenues
|
|
$
|
1,621,114
|
$
|
1,578,362
|
3%
|
$
|
2,958,813
|
$
|
2,764,045
|
7%
|
|||||||||
|
||||||||||||||||||||
Homebuilding pretax income:
|
|
|||||||||||||||||||
North
|
|
$
|
29,732
|
$
|
17,980
|
65%
|
$
|
48,597
|
$
|
27,550
|
76%
|
|||||||||
Southeast
|
|
31,885
|
31,772
|
0%
|
55,601
|
52,822
|
5%
|
|||||||||||||
Southwest
|
|
38,932
|
46,907
|
(17%)
|
69,109
|
73,833
|
(6%)
|
|||||||||||||
West
|
|
|
47,083
|
|
74,812
|
(37%)
|
|
96,612
|
|
125,534
|
(23%)
|
|||||||||
Total homebuilding pretax income
|
|
$
|
147,632
|
$
|
171,471
|
(14%)
|
$
|
269,919
|
$
|
279,739
|
(4%)
|
|||||||||
|
||||||||||||||||||||
Homebuilding pretax income as a percentage
|
|
|||||||||||||||||||
of homebuilding revenues:
|
||||||||||||||||||||
North
|
|
9.0%
|
7.5%
|
1.5%
|
8.6%
|
6.4%
|
2.2%
|
|||||||||||||
Southeast
|
|
7.4%
|
8.2%
|
(0.8%)
|
7.1%
|
8.0%
|
(0.9%)
|
|||||||||||||
Southwest
|
|
9.6%
|
10.8%
|
(1.2%)
|
9.3%
|
9.5%
|
(0.2%)
|
|||||||||||||
West
|
|
|
10.4%
|
|
14.5%
|
(4.1%)
|
|
11.1%
|
|
14.0%
|
(2.9%)
|
|||||||||
Total homebuilding pretax income percentage
|
|
|
9.1%
|
|
10.9%
|
(1.8%)
|
|
9.1%
|
|
10.1%
|
(1.0%)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||
New homes delivered:
|
|
|||||||||||||||
North
|
|
914
|
711
|
29%
|
1,597
|
1,272
|
26%
|
|||||||||
Southeast
|
|
1,075
|
983
|
9%
|
1,956
|
1,696
|
15%
|
|||||||||
Southwest
|
|
907
|
1,003
|
(10%)
|
1,693
|
1,857
|
(9%)
|
|||||||||
West
|
|
757
|
787
|
(4%)
|
1,419
|
1,386
|
2%
|
|||||||||
Total
|
|
3,653
|
3,484
|
5%
|
6,665
|
6,211
|
7%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||
Average selling prices of homes delivered:
|
|
||||||||||||||||||
North
|
|
$
|
362
|
$
|
339
|
7%
|
$
|
354
|
$
|
336
|
5%
|
||||||||
Southeast
|
|
399
|
392
|
2%
|
399
|
391
|
2%
|
||||||||||||
Southwest
|
|
448
|
432
|
4%
|
439
|
418
|
5%
|
||||||||||||
West
|
|
600
|
634
|
(5%)
|
613
|
629
|
(3%)
|
||||||||||||
Total
|
|
$
|
444
|
$
|
447
|
(1%)
|
$
|
444
|
$
|
441
|
1%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
2017
|
2016
|
% Change
|
% Absorption Change (1)
|
2017
|
2016
|
% Change
|
% Absorption Change (1)
|
||||||||||||
Net new orders (2):
|
|
||||||||||||||||||
North
|
|
923
|
933
|
(1%)
|
(10%)
|
1,979
|
1,824
|
8%
|
(6%)
|
||||||||||
Southeast
|
|
1,252
|
1,112
|
13%
|
11%
|
2,535
|
2,313
|
10%
|
7%
|
||||||||||
Southwest
|
|
940
|
945
|
(1%)
|
8%
|
1,927
|
2,076
|
(7%)
|
3%
|
||||||||||
West
|
|
963
|
931
|
3%
|
17%
|
1,941
|
1,843
|
5%
|
21%
|
||||||||||
Total
|
|
4,078
|
3,921
|
4%
|
6%
|
8,382
|
8,056
|
4%
|
5%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||||||
Cancellation Rates:
|
|
||||||||||||||||||
North
|
|
15%
|
13%
|
2%
|
14%
|
12%
|
2%
|
||||||||||||
Southeast
|
|
13%
|
14%
|
(1%)
|
12%
|
12%
|
–
|
||||||||||||
Southwest
|
|
15%
|
17%
|
(2%)
|
14%
|
14%
|
–
|
||||||||||||
West
|
|
14%
|
18%
|
(4%)
|
14%
|
17%
|
(3%)
|
||||||||||||
Total
|
|
|
14%
|
|
15%
|
(1%)
|
|
14%
|
|
14%
|
–
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||||||
Average selling prices of net new orders:
|
|
(Dollars in thousands)
|
|||||||||||||||||
North
|
|
$
|
355
|
$
|
331
|
7%
|
$
|
349
|
$
|
331
|
5%
|
||||||||
Southeast
|
|
402
|
377
|
7%
|
394
|
374
|
5%
|
||||||||||||
Southwest
|
|
445
|
431
|
3%
|
445
|
429
|
4%
|
||||||||||||
West
|
|
649
|
659
|
(2%)
|
640
|
645
|
(1%)
|
||||||||||||
Total
|
|
$
|
460
|
$
|
446
|
3%
|
$
|
452
|
$
|
440
|
3%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
||||||||||
Average number of selling communities during the period:
|
|
||||||||||||||
North
|
|
138
|
126
|
10%
|
139
|
121
|
15%
|
||||||||
Southeast
|
|
181
|
179
|
1%
|
184
|
180
|
2%
|
||||||||
Southwest
|
|
156
|
169
|
(8%)
|
155
|
172
|
(10%)
|
||||||||
West
|
|
82
|
93
|
(12%)
|
82
|
94
|
(13%)
|
||||||||
Total
|
|
557
|
567
|
(2%)
|
560
|
567
|
(1%)
|
(1)
|
Represents the percentage change of net new orders per average number of selling communities during the period.
|
(2)
|
Net new orders are new orders for the purchase of homes during the period, less cancellations during such period of existing contracts for the purchase of homes.
|
At June 30,
|
|||||||||||||||||||||
|
2017
|
2016
|
% Change
|
||||||||||||||||||
Backlog ($ in thousands):
|
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
Homes
|
Dollar Value
|
||||||||||||||
North
|
|
1,680
|
$
|
603,968
|
1,555
|
$
|
524,001
|
8%
|
15%
|
||||||||||||
Southeast
|
|
2,372
|
1,018,178
|
2,238
|
923,385
|
6%
|
10%
|
||||||||||||||
Southwest
|
|
1,848
|
896,335
|
2,121
|
970,020
|
(13%)
|
(8%)
|
||||||||||||||
West
|
|
1,634
|
1,042,990
|
1,542
|
1,011,307
|
6%
|
3%
|
||||||||||||||
Total
|
|
|
7,534
|
$
|
3,561,471
|
|
7,456
|
$
|
3,428,713
|
|
1%
|
|
4%
|
At June 30,
|
|||||||||
2017
|
2016
|
% Change
|
|||||||
Homesites owned and controlled:
|
|
||||||||
North
|
|
14,759
|
15,636
|
(6%)
|
|||||
Southeast
|
|
23,402
|
23,033
|
2%
|
|||||
Southwest
|
|
13,982
|
15,006
|
(7%)
|
|||||
West
|
|
15,479
|
14,066
|
10%
|
|||||
Total (including joint ventures)
|
|
67,622
|
67,741
|
(0%)
|
|||||
|
|||||||||
Homesites owned
|
|
51,120
|
50,947
|
0%
|
|||||
Homesites optioned or subject to contract
|
|
15,042
|
15,412
|
(2%)
|
|||||
Joint venture homesites (1)
|
|
1,460
|
1,382
|
6%
|
|||||
Total (including joint ventures)
|
|
67,622
|
67,741
|
(0%)
|
|||||
|
|||||||||
Homesites owned:
|
|
||||||||
Raw lots
|
|
9,860
|
8,325
|
18%
|
|||||
Homesites under development
|
|
13,694
|
12,344
|
11%
|
|||||
Finished homesites
|
|
12,761
|
14,296
|
(11%)
|
|||||
Under construction or completed homes
|
|
10,473
|
10,015
|
5%
|
|||||
Held for future development/for sale
|
|
4,332
|
5,967
|
(27%)
|
|||||
Total
|
|
51,120
|
50,947
|
0%
|
(1)
|
Joint venture homesites represent our expected share of land development joint venture homesites and all of the homesites of our homebuilding joint ventures.
|
At June 30,
|
||||||||||||
2017
|
2016
|
% Change
|
||||||||||
Homes under construction:
|
|
|||||||||||
Homes under construction (excluding specs)
|
|
4,939
|
4,769
|
4%
|
||||||||
Speculative homes under construction
|
|
2,836
|
2,569
|
10%
|
||||||||
Total homes under construction
|
|
7,775
|
7,338
|
6%
|
||||||||
Completed homes:
|
|
|||||||||||
Completed and unsold homes (excluding models)
|
|
986
|
957
|
3%
|
||||||||
Completed and under contract (excluding models)
|
|
818
|
824
|
(1%)
|
||||||||
Model homes
|
|
894
|
896
|
(0%)
|
||||||||
Total completed homes
|
|
2,698
|
2,677
|
1%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Total Originations:
|
|
|||||||||||
Loans
|
|
1,764
|
1,796
|
3,120
|
3,247
|
|||||||
Principal
|
|
$566,093
|
$569,280
|
$989,915
|
$1,021,047
|
|||||||
Capture Rate
|
|
54%
|
58%
|
52%
|
59%
|
|||||||
Loans Sold to Third Parties:
|
|
|||||||||||
Loans
|
|
1,767
|
1,774
|
3,445
|
3,621
|
|||||||
Principal
|
|
$566,174
|
$566,043
|
$1,093,391
|
$1,150,344
|
|||||||
Mortgage Loan Origination Product Mix:
|
|
|||||||||||
FHA loans
|
|
15%
|
14%
|
15%
|
15%
|
|||||||
Other government loans (VA & USDA)
|
|
9%
|
10%
|
9%
|
11%
|
|||||||
Total government loans
|
|
24%
|
24%
|
24%
|
26%
|
|||||||
Conforming loans
|
|
71%
|
71%
|
71%
|
69%
|
|||||||
Jumbo loans
|
|
5%
|
5%
|
5%
|
5%
|
|||||||
100%
|
100%
|
100%
|
100%
|
|||||||||
Loan Type:
|
|
|||||||||||
Fixed
|
|
95%
|
96%
|
95%
|
96%
|
|||||||
ARM
|
|
5%
|
4%
|
5%
|
4%
|
|||||||
Credit Quality:
|
|
|||||||||||
Avg. FICO score
|
|
740
|
741
|
739
|
739
|
|||||||
Other Data:
|
|
|||||||||||
Avg. combined LTV ratio
|
|
82%
|
83%
|
82%
|
83%
|
|||||||
Full documentation loans
|
|
100%
|
100%
|
100%
|
100%
|
· land acquisition
· homebuilder acquisitions
· investments in joint ventures
· construction and development
· operating expenses
|
· principal and interest payments on debt
· cash collateralization
· stock repurchases
· the payment of dividends
|
· internally generated funds
· bank revolving credit and term loans
· land option contracts and seller notes
· sales of our equity
· note offerings
|
· joint venture financings
· assessment district bond financings
· letters of credit and surety bonds
· mortgage credit facilities
|
Covenant and Other Requirement
|
Actual at
June 30, 2017
|
Covenant
Requirements at
June 30, 2017
|
||||
(Dollars in millions) | ||||||
Consolidated Tangible Net Worth (1)
|
$3,250.5 | ≥ | $2,024.1 | |||
Leverage Ratio:
|
||||||
Net Homebuilding Debt to Adjusted Consolidated Tangible Net Worth Ratio (2)
|
1.15 | ≤ | 2.00 | |||
Liquidity or Interest Coverage Ratio (3): | ||||||
Liquidity | $72.2 | ≥ | $216.7 | |||
EBITDA (as defined in the Revolving Facility) to Consolidated Interest Incurred (4) | 3.16 | ≥ | 1.25 | |||
Investments in Homebuilding Joint Ventures or Consolidated Homebuilding Non-Guarantor Entities (5) | $906.5 | ≤ | $1,217.7 |
(1)
|
The minimum covenant requirement amount is subject to increase over time based on subsequent earnings (without deductions for losses) and proceeds from equity offerings.
|
(2)
|
Net Homebuilding Debt represents Consolidated Homebuilding Debt reduced for certain cash balances in excess of $5 million.
|
(3)
|
Under the liquidity and interest coverage covenant, we are required to either (i) maintain an unrestricted cash balance in excess of our consolidated interest incurred for the previous four fiscal quarters or (ii) satisfy a minimum interest coverage ratio. At June 30, 2017, we met the condition described in clause (ii).
|
(4)
|
Consolidated Interest Incurred excludes noncash interest expense.
|
(5)
|
Net investments in unconsolidated homebuilding joint ventures or consolidated homebuilding non-guarantor entities must not exceed 35% of consolidated tangible net worth plus $80 million.
|
June 30, 2017
|
||||
(Dollars in thousands)
|
||||
|
||||
8.375% Senior Notes due May 2018
|
|
$ |
575,000
|
|
1.625% Convertible Senior Notes due May 2018
|
|
224,999
|
||
0.25% Convertible Senior Notes due June 2019
|
|
267,500
|
||
6.625% Senior Notes due May 2020
|
|
300,000
|
||
8.375% Senior Notes due January 2021
|
|
400,000
|
||
6.25% Senior Notes due December 2021
|
|
300,000
|
||
5.375% Senior Notes due October 2022
|
|
250,000
|
||
5.875% Senior Notes due November 2024
|
|
425,000
|
||
5.25% Senior Notes due June 2026
|
|
400,000
|
||
5.00% Senior Notes due June 2027
|
|
350,000
|
||
1.25% Convertible Senior Notes due August 2032
|
|
|
253,000
|
|
$
|
3,745,499
|
· accessing larger or highly desirable lot positions
· establishing strategic alliances
· leveraging our capital base
|
· expanding our market opportunities
· managing the financial and market risk associated with land holdings
|
·
|
Segment reporting;
|
·
|
Inventories and impairments;
|
·
|
Stock-based compensation;
|
·
|
Homebuilding revenue and cost of sales;
|
·
|
Variable interest entities;
|
·
|
Unconsolidated homebuilding and land development joint ventures;
|
·
|
Warranty accruals;
|
·
|
Insurance and litigation accruals;
|
·
|
Income taxes; and
|
·
|
Goodwill.
|
·
|
our strategy;
|
·
|
housing market and economic conditions and trends in the geographic markets in which we operate;
|
·
|
our land acquisition strategy and our sources of funds relating thereto;
|
·
|
litigation outcomes and related costs;
|
·
|
the outcome and impact relating to our remediation of an issue relating to certain fire rated I-joist products that we purchased from a third party manufacturer;
|
·
|
plans to repurchase our common stock, purchase notes prior to maturity and engage in debt exchange transactions;
|
·
|
the impact of recent accounting standards;
|
·
|
amounts remaining to complete relating to existing surety bonds; and
|
·
|
our interest rate hedging and derivatives strategy.
|
·
|
adverse economic developments that negatively impact the demand for homes;
|
·
|
the market value and availability of land;
|
·
|
the willingness of customers to purchase homes at times when mortgage-financing costs are high or when credit is difficult to obtain;
|
·
|
competition with other homebuilders as well as competition from the sellers of existing homes and rental properties;
|
·
|
the cost and availability of labor and materials;
|
·
|
our ability to obtain suitable bonding for development of our communities;
|
·
|
high cancellation rates;
|
·
|
the risk of our longer term acquisition strategy;
|
·
|
adverse weather conditions, natural disasters and climate change;
|
·
|
product liability and warranty claims;
|
·
|
the inherent danger of our building sites;
|
·
|
our reliance on subcontractors and their ability to construct our homes;
|
·
|
risks relating to our mortgage financing activities, including our obligation to repurchase loans we previously sold in the secondary market;
|
·
|
our dependence on key employees;
|
·
|
risks relating to acquisitions, including integration risks;
|
·
|
our failure to maintain the security of our electronic and other confidential information;
|
·
|
the adverse effects of negative media publicity;
|
·
|
government regulation, including environmental, building, energy efficiency, climate change, worker health, safety, mortgage lending, title insurance, zoning and land use regulation;
|
·
|
increased regulation of the mortgage industry;
|
·
|
changes to tax laws that make homeownership more expensive;
|
·
|
the impact of "slow growth", "no growth" and similar initiatives;
|
·
|
our ability to obtain additional capital when needed and at an acceptable cost;
|
·
|
the amount of, and our ability to repay, renew or extend, our outstanding debt and its impact on our operations and our ability to obtain financing;
|
·
|
our ability to generate cash, including to service our debt;
|
·
|
risks relating to our unconsolidated joint ventures, including our ability and the ability of our partners to contribute funds to our joint ventures when needed or contractually agreed to, entitlement and development risks for the land owned by our joint ventures, the availability of financing to the joint ventures, our completion obligations to the joint ventures, the illiquidity of our joint venture investments, partner disputes, and risks relating to our determinations concerning the consolidation or non-consolidation of our joint venture investments;
|
·
|
the influence of our principal stockholder;
|
·
|
the provisions of our charter, bylaws, stockholders' rights agreements and debt covenants that could prevent a third party from acquiring us or limit the price investors might be willing to pay for shares of our common stock; and
|
·
|
other risks discussed in this report and our other filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2016.
|
Total Number
|
Approximate
|
||||||||
of Shares
|
Dollar Value
|
||||||||
Purchased as
|
of Shares that
|
||||||||
Part of
|
May Yet be
|
||||||||
Average
|
Publicly
|
Purchased
|
|||||||
Total Number
|
Price
|
Announced
|
Under the
|
||||||
of Shares
|
Paid per
|
Plans or
|
Plans or
|
||||||
Period
|
Purchased (1)
|
Share
|
Programs (1)
|
Programs (1)
|
|||||
April 1, 2017 to April 30, 2017
|
|
―
|
―
|
―
|
|||||
May 1, 2017 to May 31, 2017
|
|
536,066
|
$35.44
|
536,066
|
$348,393,263
|
||||
June 1, 2017 to June 30, 2017
|
|
3,888,277
|
$33.69
|
3,888,277
|
$217,403,932
|
||||
Total
|
|
4,424,343
|
$33.90
|
4,424,343
|
(1)
|
On July 28, 2016, our Board of Directors announced a new $500 million common stock repurchase plan. The stock repurchase plan has no stated expiration date and replaces in its entirety the $200 million authorized by our Board of Directors on February 11, 2016.
|
4.1
|
Twenty-Eighth Supplemental Indenture, dated as of June 9, 2017, by and among the Company, the Guarantors and The Bank of New York Mellon Trust Company, N.A., incorporated by reference to Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed on June 9, 2017.
|
+10.1
|
Form of Severance and Change in Control Protection Agreement.
|
31.1
|
Certification of the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101 |
The following materials from CalAtlantic Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in eXtensible Business Reporting Language (XBRL): (i) Unaudited Condensed Consolidated Statements of Operations, (ii) Unaudited Condensed Consolidated Statements of Comprehensive Income, (iii) Unaudited Condensed Consolidated Balance Sheets, (iv) Unaudited Condensed Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements.
|
(+) |
Management contract, compensation plan or arrangement.
|
Dated: July 28, 2017
|
By:
|
/s/ Larry T. Nicholson
|
Larry T. Nicholson
President and Chief Executive Officer
(Principal Executive Officer)
|
||
Dated: July 28, 2017
|
By:
|
/s/ Jeff J. McCall
|
Jeff J. McCall
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|