Exhibit 99.1
Contact: | Colin T. Severn | |
William Lyon Homes | ||
(949) 833-3600 |
WILLIAM LYON HOMES REPORTS SECOND QUARTER 2009 RESULTS
Financial Highlights
2009 Second Quarter
• | Net new home orders of 269, down 36% |
• | New home deliveries of 202, down 37% |
• | Consolidated operating revenue of $77.4 million, down 45% |
• | Homebuilding gross margin of $9.2 million, up 55% |
• | Homebuilding gross margin percentage of 13.7%, up 920 basis points |
• | Backlog of homes sold but not closed at June 30, 2009 of 301, down 33% from 446 at June 30, 2008 |
• | Gain from repurchase of Senior Notes of $49.0 million |
• | Net income of $39.4 million compared to net loss of $38.9 million in the second quarter of 2008 |
NEWPORT BEACH, CA—August 12, 2009—William Lyon Homes today reported net income of $39,387,000 for the three months ended June 30, 2009, compared to net loss of $38,930,000 for the comparable period a year ago. Consolidated operating revenue decreased 45% to $77,407,000 for the three months ended June 30, 2009 as compared to $140,089,000 for the comparable period a year ago.
The Company reported net loss for the six months ended June 30, 2009 of $29,614,000 compared to net loss of $39,736,000 for the comparable period a year ago. Consolidated operating revenue decreased 47% to $146,746,000 for the six months ended June 30, 2009, as compared to $277,526,000 for the comparable period a year ago.
Operating revenue for the three months ended June 30, 2009 and 2008 included $883,000 and $6,848,000, respectively, from the sales of land resulting in gross loss of approximately $1,420,000 in the 2009 period, compared to a gross loss of approximately $543,000 in the 2008 period. Operating revenue for the six months ended June 30, 2009 and 2008 included $7,415,000 and $31,569,000, respectively, from the sales of land resulting in gross loss of $39,150,000 in the 2009 period, compared to a gross loss of $707,000 in the 2008 period. The Company incurred the write-off of land deposits and pre-acquisition costs of $37,900,000 and $100,000, for the six months ended June 30, 2009 and 2008, respectively, related to future projects which the Company has concluded are not currently economically viable. These costs are included in cost of sales-lots, land and other in the accompanying statements of operations.
The Company incurred impairment losses on real estate assets of $20,918,000 for the three months ended June 30, 2008 with no comparable amount in the 2009 period. During the six months ended June 30, 2009 and 2008, the Company incurred impairment losses on real estate assets of $24,171,000 and $46,118,000, respectively. The impairments were primarily attributable to slower than anticipated home sales and lower than anticipated net revenue due to depressed market conditions in the housing industry. The future undiscounted cash flows estimated to be generated were determined to be less than the carrying amount of the assets. Accordingly, the real estate assets were written-down to their estimated fair value.
The Company’s consolidated results including joint ventures were as follows: The number of homes closed for the three months ended June 30, 2009 was 202 homes, down 37% from 319 homes closed for the three months ended June 30, 2008. The number of homes closed for the six months ended June 30, 2009 was 390, down 37% from 622 homes closed for the six months ended June 30, 2008.
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Net new home orders for the three months ended June 30, 2009 decreased 36% to 269 homes as compared to 418 homes for the three months ended June 30, 2008. The average number of sales locations during the three months ended June 30, 2009 was 26, down 40% from 43 during the three months ended June 30, 2008. The Company’s number of new home orders per average sales location increased slightly to 10.3 for the three months ended June 30, 2009, as compared to 9.7 for the three months ended June 30, 2008. Net new home orders for the six months ended June 30, 2009 were 451 homes, down 43% from 789 homes for the six months ended June 30, 2008. The average number of sales locations during the six months ended June 30, 2009 was 27, down 45% from 49 during the six months ended June 30, 2008. The Company’s number of new home orders per average sales location increased to 16.7 for the six months ended June 30, 2009, as compared to 16.1 for the six months ended June 30, 2008.
At June 30, 2009, the backlog of homes sold but not closed totaled 301 homes, down 33% from 446 homes at June 30, 2008. At June 30, 2009, the dollar amount of backlog of homes sold but not closed totaled $74,183,000, down 54% from $160,364,000 at June 30, 2008, and up slightly from $74,122,000 at March 31, 2009.
During the three months ended June 30, 2009, the average sales price of homes closed (including joint ventures) was $333,700, down 20% from $417,700 for the comparable period a year ago. The lower average sales price was primarily due to (1) price depreciation in certain markets resulting from the slowing of new orders and competitive pressures and (2) a change in product mix.
The consolidated homebuilding gross margin percentage increased to 13.7% for the three months ended June 30, 2009 from 4.5% for the three months ended June 30, 2008. These higher gross margin percentages were primarily due to home closings in projects where previous impairment losses had been incurred.
On June 8, 2009 the Company announced the closing of its cash tender offer to purchase its outstanding senior notes. The principal amount tendered by the Company on settlement of the tender offer totaled $53,135,000, including $29,050,000 of the 7 5/8% Senior Notes, $2,376,000 of the 10 3/4% Senior Notes, and $21,709,000 of the 7 1/2% Senior Notes. The aggregate consideration paid totaled $14,925,300, plus accrued interest. The net gain resulting from the transaction totaled $37,040,000.
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During the six months ended June 30, 2009, the Company purchased, in a limited number of privately negotiated transactions, separate from the tender offer described above, $31,271,000 principal amount of its outstanding senior notes at a cost of $9,787,000, plus accrued interest. The net gain resulting from these transactions, after giving effect to amortization of related deferred loan costs, was $20,933,000. Upon settlement of the transactions, the Company authorized these Senior Notes to be cancelled.
Effective on January 1, 2008, the Company and its shareholders made a revocation of the “S” corporation election. As a result of this revocation, the Company will be taxed as a “C” corporation. The shareholders will not be able to elect “S” corporation status for at least five years. The revocation of the “S” corporation election will allow taxable losses generated in 2008 to be carried back to the 2006 “C” corporation year. As a result of the change in tax status, the Company recorded a deferred tax asset and related income tax benefit of $41,602,000 as of January 1, 2008. The recorded deferred tax asset reflected the tax refund for the anticipated carry back of the estimated 2008 tax loss to 2006 as a result of the reversal of temporary differences in 2008. The Company received the tax refund in early 2009. In addition, the Company has unused built-in losses of $19,414,000 which are available to offset future income and expire between 2010 and 2011. The Company’s ability to utilize the foregoing tax benefits will depend upon the amount of its future taxable income and may be limited under certain circumstances.
Selected financial and operating information for the Company including joint ventures is set forth in greater detail in a schedule attached to this release.
The Company will hold a conference call on Monday, August 17, 2009 at 11:00 a.m. Pacific Time to discuss the second quarter 2009 earnings results. The dial-in number is (800) 299-9630 (enter passcode number 48764348). Participants may call in beginning at 10:45 a.m. Pacific Time. In addition, the call will be broadcast from William Lyon Homes’ website atwww.lyonhomes.com in the “Investor Relations” section of the site. The call will be recorded and replayed beginning on August 17, 2009 at 5:00 p.m. Pacific Time through midnight on August 31, 2009. The dial-in number for the replay is (888) 286-8010 (enter passcode number 45260552). Replays of the call will also be available on the Company’s website approximately two hours after broadcast.
William Lyon Homes is primarily engaged in the design, construction and sale of single family detached and attached homes in California, Arizona and Nevada and at June 30, 2009 had 24 sales locations. The Company’s corporate headquarters are located in Newport Beach, California. For more information about the Company and its new home developments, please visit the Company’s website at www.lyonhomes.com.
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Certain statements contained in this release that are not historical information contain forward- looking statements. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. Factors that may impact such forward-looking statements include, among others, changes or continued weakness in general economic conditions and in the markets in which the Company competes, the outbreak, continuation or escalation of war or other hostilities, including terrorism, involving the United States, changes in mortgage and other interest rates, changes in prices of homebuilding materials, weather, the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements, the availability of labor and homebuilding materials, changes in governmental laws and regulations, the timing of receipt of regulatory approvals and the opening of projects, and the availability and cost of land for future development, as well as the other factors discussed in the Company’s reports filed with the Securities and Exchange Commission.
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WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING INFORMATION
(unaudited)
Three Months Ended June 30, | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||
Wholly-Owned | Joint Ventures | Consolidated Total | Wholly-Owned | Joint Ventures | Consolidated Total | |||||||||||||||||||
Selected Financial Information (dollars in thousands) | ||||||||||||||||||||||||
Homes closed | 193 | 9 | 202 | 308 | 11 | 319 | ||||||||||||||||||
Home sales revenue | $ | 64,329 | $ | 3,079 | $ | 67,408 | $ | 128,971 | $ | 4,270 | $ | 133,241 | ||||||||||||
Cost of sales | (55,702 | ) | (2,496 | ) | (58,198 | ) | (122,849 | ) | (4,453 | ) | (127,302 | ) | ||||||||||||
Gross margin | $ | 8,627 | $ | 583 | $ | 9,210 | $ | 6,122 | $ | (183 | ) | $ | 5,939 | |||||||||||
Gross margin percentage | 13.4 | % | 18.9 | % | 13.7 | % | 4.7 | % | (4.3 | )% | 4.5 | % | ||||||||||||
Number of homes closed | ||||||||||||||||||||||||
California | 119 | 9 | 128 | 200 | 11 | 211 | ||||||||||||||||||
Arizona | 40 | — | 40 | 73 | — | 73 | ||||||||||||||||||
Nevada | 34 | — | 34 | 35 | — | 35 | ||||||||||||||||||
Total | 193 | 9 | 202 | 308 | 11 | 319 | ||||||||||||||||||
Average sales price | ||||||||||||||||||||||||
California | $ | 415,200 | $ | 341,300 | $ | 410,000 | $ | 510,000 | $ | 388,200 | $ | 503,600 | ||||||||||||
Arizona | 185,400 | — | 185,400 | 233,300 | — | 233,300 | ||||||||||||||||||
Nevada | 220,900 | — | 220,900 | 284,300 | — | 284,300 | ||||||||||||||||||
Total | $ | 333,400 | $ | 341,300 | $ | 333,700 | $ | 418,700 | $ | 388,200 | $ | 417,700 | ||||||||||||
Number of net new home orders | ||||||||||||||||||||||||
California | 163 | 4 | 167 | 255 | 22 | 277 | ||||||||||||||||||
Arizona | 70 | — | 70 | 78 | — | 78 | ||||||||||||||||||
Nevada | 32 | — | 32 | 63 | — | 63 | ||||||||||||||||||
Total | 265 | 4 | 269 | 396 | 22 | 418 | ||||||||||||||||||
Average number of sales locations during period | ||||||||||||||||||||||||
California | 13 | — | 13 | 25 | 3 | 28 | ||||||||||||||||||
Arizona | 5 | — | 5 | 4 | — | 4 | ||||||||||||||||||
Nevada | 8 | — | 8 | 11 | — | 11 | ||||||||||||||||||
Total | 26 | — | 26 | 40 | 3 | 43 | ||||||||||||||||||
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WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING INFORMATION (Continued)
(unaudited)
As of June 30, | ||||||||||||||||||
2009 | 2008 | |||||||||||||||||
Wholly-Owned | Joint Ventures | Consolidated Total | Wholly-Owned | Joint Ventures | Consolidated Total | |||||||||||||
Backlog of homes sold but not closed at end of period | ||||||||||||||||||
California | 224 | 2 | 226 | 278 | 26 | 304 | ||||||||||||
Arizona | 57 | — | 57 | 77 | — | 77 | ||||||||||||
Nevada | 18 | — | 18 | 65 | — | 65 | ||||||||||||
Total | 299 | 2 | 301 | 420 | 26 | 446 | ||||||||||||
Dollar amount of homes sold but not closed at end of period (in thousands) | ||||||||||||||||||
California | $ | 60,009 | $ | 610 | $ | 60,619 | $ | 117,935 | $ | 8,524 | $ | 126,459 | ||||||
Arizona | 9,510 | — | 9,510 | 15,579 | — | 15,579 | ||||||||||||
Nevada | 4,054 | — | 4,054 | 18,326 | — | 18,326 | ||||||||||||
Total | $ | 73,573 | $ | 610 | $ | 74,183 | $ | 151,840 | $ | 8,524 | $ | 160,364 | ||||||
Lots controlled at end of period | ||||||||||||||||||
Owned lots | ||||||||||||||||||
California | 1,520 | 741 | 2,261 | 2,745 | 795 | 3,540 | ||||||||||||
Arizona | 5,470 | 5,470 | 4,362 | 1,745 | 6,107 | |||||||||||||
Nevada | 2,767 | — | 2,767 | 2,960 | — | 2,960 | ||||||||||||
Total | 9,757 | 741 | 10,498 | 10,067 | 2,540 | 12,607 | ||||||||||||
Optioned lots (1) | ||||||||||||||||||
California | 406 | 534 | ||||||||||||||||
Arizona | 713 | 328 | ||||||||||||||||
Nevada | — | — | ||||||||||||||||
Total | 1,119 | 862 | ||||||||||||||||
Total lots controlled | ||||||||||||||||||
California | 2,667 | 4,074 | ||||||||||||||||
Arizona | 6,183 | 6,435 | ||||||||||||||||
Nevada | 2,767 | 2,960 | ||||||||||||||||
Total | 11,617 | 13,469 | ||||||||||||||||
(1) | Optioned lots may be purchased by the Company as wholly-owned projects or may be purchased by newly formed joint ventures. |
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WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING INFORMATION
(unaudited)
Six Months Ended June 30, | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||
Wholly-Owned | Joint Ventures | Consolidated Total | Wholly-Owned | Joint Ventures | Consolidated Total | |||||||||||||||||||
Selected Financial Information (dollars in thousands) | ||||||||||||||||||||||||
Homes closed | 375 | 15 | 390 | 597 | 25 | 622 | ||||||||||||||||||
Home sales revenue | $ | 119,020 | $ | 4,936 | $ | 123,956 | $ | 236,454 | $ | 9,503 | $ | 245,957 | ||||||||||||
Cost of sales | (104,966 | ) | (4,094 | ) | (109,060 | ) | (224,895 | ) | (10,191 | ) | (235,086 | ) | ||||||||||||
Gross margin | $ | 14,054 | $ | 842 | $ | 14,896 | $ | 11,559 | $ | (688 | ) | $ | 10,871 | |||||||||||
Gross margin percentage | 11.8 | % | 17.1 | % | 12.0 | % | 4.9 | % | (7.2 | )% | 4.4 | % | ||||||||||||
Number of homes closed | ||||||||||||||||||||||||
California | 226 | 15 | 241 | 382 | 25 | 407 | ||||||||||||||||||
Arizona | 77 | — | 77 | 119 | — | 119 | ||||||||||||||||||
Nevada | 72 | — | 72 | 96 | — | 96 | ||||||||||||||||||
Total | 375 | 15 | 390 | 597 | 25 | 622 | ||||||||||||||||||
Average sales price | ||||||||||||||||||||||||
California | $ | 388,400 | $ | 329,100 | $ | 384,700 | $ | 477,400 | $ | 380,100 | $ | 471,500 | ||||||||||||
Arizona | 190,200 | — | 190,200 | 236,600 | — | 236,600 | ||||||||||||||||||
Nevada | 230,400 | — | 230,400 | 270,000 | — | 270,000 | ||||||||||||||||||
Total | $ | 317,400 | $ | 329,100 | $ | 317,800 | $ | 396,100 | $ | 380,100 | $ | 395,400 | ||||||||||||
Number of net new home orders | ||||||||||||||||||||||||
California | 274 | 11 | 285 | 485 | 41 | 526 | ||||||||||||||||||
Arizona | 100 | — | 100 | 129 | — | 129 | ||||||||||||||||||
Nevada | 66 | — | 66 | 134 | — | 134 | ||||||||||||||||||
Total | 440 | 11 | 451 | 748 | 41 | 789 | ||||||||||||||||||
Average number of sales locations during period | ||||||||||||||||||||||||
California | 15 | — | 15 | 31 | 3 | 34 | ||||||||||||||||||
Arizona | 4 | — | 4 | 4 | — | 4 | ||||||||||||||||||
Nevada | 8 | — | 8 | 11 | — | 11 | ||||||||||||||||||
Total | 27 | — | 27 | 46 | 3 | 49 | ||||||||||||||||||
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WILLIAM LYON HOMES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Operating revenue | ||||||||||||||||
Home sales | $ | 67,408 | $ | 133,241 | $ | 123,956 | $ | 245,957 | ||||||||
Lots, land and other sales | 883 | 6,848 | 7,415 | 31,569 | ||||||||||||
Construction services | 9,116 | — | 15,375 | — | ||||||||||||
77,407 | 140,089 | 146,746 | 277,526 | |||||||||||||
Operating costs | ||||||||||||||||
Cost of sales - homes | (58,198 | ) | (127,302 | ) | (109,060 | ) | (235,086 | ) | ||||||||
Cost of sales - lots, land and other | (2,303 | ) | (7,391 | ) | (46,565 | ) | (32,276 | ) | ||||||||
Impairment loss on real estate assets | — | (20,918 | ) | (24,171 | ) | (46,118 | ) | |||||||||
Construction services | (7,842 | ) | — | (13,611 | ) | — | ||||||||||
Sales and marketing | (4,538 | ) | (10,999 | ) | (8,664 | ) | (22,103 | ) | ||||||||
General and administrative | (4,523 | ) | (6,515 | ) | (10,553 | ) | (13,499 | ) | ||||||||
Other | (687 | ) | (332 | ) | (2,547 | ) | (1,774 | ) | ||||||||
(78,091 | ) | (173,457 | ) | (215,171 | ) | (350,856 | ) | |||||||||
Equity in income (loss) of unconsolidated joint ventures | 413 | (714 | ) | (1,310 | ) | (805 | ) | |||||||||
Operating loss | (271 | ) | (34,082 | ) | (69,735 | ) | (74,135 | ) | ||||||||
Interest expense, net of amounts capitalized | (8,321 | ) | (6,088 | ) | (17,033 | ) | (9,254 | ) | ||||||||
Gain on retirement of debt | 49,043 | — | 57,973 | — | ||||||||||||
Other (loss) income, net | (775 | ) | 450 | (722 | ) | 346 | ||||||||||
Income (loss) before benefit (provision) for income taxes | 39,676 | (39,720 | ) | (29,517 | ) | (83,043 | ) | |||||||||
Benefit (provision) for income taxes: | ||||||||||||||||
Benefit (provision) for income taxes | — | — | 22 | (10 | ) | |||||||||||
Recordation of deferred tax assets as a result of revocation of election to be taxed as an “S” corporation for income tax purposes effective January 1, 2008 | — | — | — | 41,602 | ||||||||||||
— | — | 22 | 41,592 | |||||||||||||
Consolidated net income (loss) | 39,676 | (39,720 | ) | (29,495 | ) | (41,451 | ) | |||||||||
Less: Net income (loss) - non-controlling interest | (289 | ) | 790 | (119 | ) | 1,715 | ||||||||||
Net income (loss) attributable to Lyon Homes | $ | 39,387 | $ | (38,930 | ) | $ | (29,614 | ) | $ | (39,736 | ) | |||||
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WILLIAM LYON HOMES
CONSOLIDATED BALANCE SHEETS
(in thousands except number of shares and par value per share)
June 30, 2009 | December 31, 2008 | |||||
(unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 65,824 | $ | 67,017 | ||
Restricted cash | 5,158 | 5,079 | ||||
Receivables | 7,814 | 29,985 | ||||
Income tax refunds receivable | 5,104 | 46,696 | ||||
Real estate inventories | ||||||
Owned | 643,732 | 754,489 | ||||
Not owned | 70,770 | 107,763 | ||||
Investments in and advances to unconsolidated joint ventures | 1,646 | 2,769 | ||||
Property and equipment, less accumulated depreciation of $13,454 and $14,124 at June 30, 2009 and December 31, 2008, respectively | 13,432 | 14,403 | ||||
Deferred loan costs | 4,436 | 6,264 | ||||
Other assets | 10,713 | 10,378 | ||||
$ | 828,629 | $ | 1,044,843 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Accounts payable | $ | 8,147 | $ | 16,331 | ||
Accrued expenses | 47,692 | 62,987 | ||||
Liabilities from inventories not owned | 70,770 | 80,079 | ||||
Notes payable | 157,552 | 194,629 | ||||
7 5/8% Senior Notes due December 15, 2012 | 98,824 | 133,800 | ||||
10 3/4% Senior Notes due April 1, 2013 | 191,089 | 218,176 | ||||
7 1/2% Senior Notes due February 15, 2014 | 102,341 | 124,300 | ||||
676,415 | 830,302 | |||||
Stockholders’ equity | ||||||
Common stock, par value $0.01 per share; 3,000 shares authorized; 1,000 shares outstanding at June 30, 2009 and December 31, 2008, respectively | — | — | ||||
Additional paid-in capital | 48,867 | 48,867 | ||||
Retained earnings | 92,644 | 122,258 | ||||
Non-controlling interest | 10,703 | 43,416 | ||||
152,214 | 214,541 | |||||
$ | 828,629 | $ | 1,044,843 | |||
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WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL INFORMATION
SELECTED FINANCIAL DATA (dollars in thousands):
Three Months Ended June 30, | Last Twelve Months Ended June 30, | ||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||
Net income (loss) | $ | 39,387 | $ | (38,930 | ) | $ | (101,576 | ) | $ | (285,688 | ) | ||||
Net cash provided by operating activities | $ | 4,454 | $ | 59,836 | $ | 88,207 | $ | 221,212 | |||||||
Interest incurred | $ | 12,041 | $ | 17,023 | $ | 56,249 | $ | 75,443 | |||||||
Adjusted EBITDA (1) | $ | 3,729 | $ | 2,156 | $ | (27,923 | ) | $ | (65,641 | ) | |||||
Ratio of Adjusted EBITDA to interest incurred | — | — |
Balance Sheet Data
June 30, | ||||||||
2009 | 2008 | |||||||
Stockholders’ equity | $ | 152,214 | $ | 293,004 | ||||
Total debt | 549,806 | 778,799 | ||||||
Total book capitalization | $ | 702,020 | $ | 1,071,803 | ||||
Ratio of debt to total book capitalization | 78.3 | % | 72.7 | % | ||||
Ratio of debt to total book capitalization (net of cash) | 76.1 | % | 70.1 | % |
(1) | Adjusted EBITDA means net income (loss) plus (i) (benefit) provision for income taxes, (ii) interest expense, (iii) amortization of capitalized interest included in cost of sales, (iv) non-cash impairment charges, (v) gain on retirement of debt, (vi) depreciation and amortization and (vii) cash distributions of income from unconsolidated joint ventures less equity in loss (income) of unconsolidated joint ventures. Other companies may calculate Adjusted EBITDA differently. Adjusted EBITDA is not a financial measure prepared in accordance with U.S. generally accepted accounting principles. Adjusted EBITDA is presented herein because it is a component of certain covenants in the indentures governing the Company’s 7 5/8% Senior Notes, 10 3/4% Senior Notes and 7 1/2% Senior Notes (“Indentures”). In addition, management believes the presentation of Adjusted EBITDA provides useful information to the Company’s investors regarding the Company’s financial condition and results of operations because Adjusted EBITDA is a widely utilized financial indicator of a company’s ability to service and/or incur debt. The calculations of Adjusted EBITDA below are presented in accordance with the requirements of the Indentures. Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other |
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consolidated income or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. A reconciliation of net income (loss) to Adjusted EBITDA is provided in the table below. |
(2) | In December 2007, the FASB issued SFAS No. 160,Non-controlling Interests in Consolidated Financial Statements-an amendment of ARB No. 51 (“FAS 160”). FAS 160 establishes accounting and reporting standards for a parent company’s non-controlling interest in a subsidiary and for the de-consolidation of a subsidiary. FAS 160 is effective for fiscal years beginning after December 15, 2008. The Company adopted FAS 160 on January 1, 2009, whereby non-controlling interest (previously identified as minority interest) is reclassified as stockholders’ equity. |
Three Months Ended June 30, | Last Twelve Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (loss) | $ | 39,387 | $ | (38,930 | ) | $ | (101,516 | ) | $ | (285,688 | ) | |||||
Benefit from income taxes | — | — | (22 | ) | (40,408 | ) | ||||||||||
Interest expense: | ||||||||||||||||
Interest incurred | 12,041 | 17,023 | 56,249 | 75,443 | ||||||||||||
Interest capitalized | (3,720 | ) | (10,935 | ) | (24,030 | ) | (66,189 | ) | ||||||||
Amortization of capitalized interest in cost of sales | 5,005 | 12,001 | 27,703 | 58,565 | ||||||||||||
Non-cash impairment charge | — | 20,918 | 119,260 | 189,573 | ||||||||||||
Gain on retirement of debt | (49,043 | ) | — | (112,017 | ) | — | ||||||||||
Depreciation and amortization | 472 | 549 | 2,068 | 2,360 | ||||||||||||
Cash distributions of income from unconsolidated joint ventures | — | 816 | — | 816 | ||||||||||||
Equity in (income) loss of unconsolidated joint ventures | (413 | ) | 714 | 4,382 | (113 | ) | ||||||||||
Adjusted EBITDA | $ | 3,729 | $ | 2,156 | $ | (27,923 | ) | $ | (65,641 | ) | ||||||
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A reconciliation of net cash provided by operating activities to Adjusted EBITDA is provided as follows:
Three Months Ended June 30, | Last Twelve Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net cash provided by operating activities | $ | 4,454 | $ | 59,836 | $ | 88,207 | $ | 221,212 | ||||||||
Interest expense: | ||||||||||||||||
Interest incurred | 12,041 | 17,023 | 56,249 | 75,443 | ||||||||||||
Interest capitalized | (3,720 | ) | (10,935 | ) | (24,030 | ) | (66,189 | ) | ||||||||
Amortization of capitalized interest in cost of sales | 5,005 | 12,001 | 27,703 | 58,565 | ||||||||||||
Minority equity in income of consolidated entities | (289 | ) | 790 | 8,612 | (193 | ) | ||||||||||
Net changes in operating assets and liabilities: | ||||||||||||||||
Restricted cash | 54 | — | 5,158 | — | ||||||||||||
Receivables | (3,392 | ) | (5,393 | ) | (14,263 | ) | (18,310 | ) | ||||||||
Income tax refunds receivable | — | — | (42,164 | ) | — | |||||||||||
Real estate inventories – owned | (28,375 | ) | (68,017 | ) | (154,990 | ) | (354,195 | ) | ||||||||
Deferred loan costs | (311 | ) | (747 | ) | (1,894 | ) | (2,132 | ) | ||||||||
Other assets | (1,404 | ) | (3,724 | ) | 99 | (13,999 | ) | |||||||||
Accounts payable | 1,921 | (6,706 | ) | 17,145 | 27,638 | |||||||||||
Accrued expenses | 17,745 | 8,028 | 6,245 | 6,519 | ||||||||||||
Adjusted EBITDA | $ | 3,729 | $ | 2,156 | $ | (27,923 | ) | $ | (65,641 | ) | ||||||
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