Exhibit 99.1
UCP REPORTS FIRST QUARTER 2016 RESULTS
- Net Income Improved to $0.01 Per Share -
- Revenue from Homebuilding Increased 60.0% to $68.2 million -
- Adjusted Homebuilding Gross Margin Expanded 130 basis points to 19.9% -
San Jose, California, May 9, 2016. UCP, Inc. (NYSE: UCP) today announced its results of operations for the three months ended March 31, 2016.
First Quarter 2016 Highlights Compared to First Quarter 2015
| |
| • | Net income increased to $0.2 million, or net income attributable to shareholders of UCP of $0.01 per share |
| |
| • | Total consolidated revenue grew 56.8% to $68.2 million |
| |
| • | Revenue from homebuilding operations increased 60.0% to $68.2 million |
| |
| • | Homes delivered grew 36.9% to 167 units |
| |
| • | Adjusted homebuilding gross margin percentage increased 130 basis points to 19.9% |
| |
| • | Selling, general and administrative expense as a percentage of total revenue improved to 16.6%, compared to 26.5% |
| |
| • | General and administrative expense reduced by 0.6% to $7.3 million |
| |
| • | Backlog on a dollar basis increased 64.7% to $136.2 million |
| |
| • | Backlog units expanded 37.7% to 307 units |
| |
| • | Average active selling communities of 28, compared to 25 |
“We are pleased to start the year with significant homebuilding revenue growth, margin improvement and positive earnings,” stated Dustin Bogue, President and Chief Executive Officer of UCP. “We capitalized on positive momentum to grow home deliveries 36.9% and homebuilding revenue 60.0% compared to a year ago. We accomplished this while remaining disciplined to gain additional gross margin and significant G&A leverage on our scalable platform. We ended the quarter on a stronger footing with backlog on a dollar basis up 64.7%, primarily in the West. This collective improvement demonstrates the continued transformation of our company into a leading homebuilder in our markets. As we move forward in 2016, we are committed to accomplishing our goal to grow homebuilding revenue and gain additional leverage on our cost base to drive earnings improvement.”
First Quarter 2016 Operating Results
Net income grew to $0.2 million in the first quarter 2016, compared to a net loss of $4.2 million in the first quarter 2015. Net income attributable to shareholders of UCP was $0.1 million, or $0.01 per share, compared to a net loss attributable to shareholders of UCP of $1.8 million, or a $0.23 loss per share, in the prior year period. The Company’s weighted average basic and diluted shares outstanding attributable to shareholders of UCP was 8.0 million, compared to 7.9 million shares in the prior year period.
Revenue from homebuilding operations grew 60.0% to $68.2 million, compared to $42.6 million for the prior year period. The improvement was primarily the result of a 36.9% increase in the number of homes delivered to 167 during the first quarter, compared to 122 homes during the prior year period due to a stronger backlog at the beginning of the first quarter 2016 compared to the prior year period. The average selling price for home sales was approximately $409,000, compared to approximately $349,000 during the prior year period. The increase in average selling price was primarily a result of favorable geographic mix and core price gains.
Consolidated gross margin percentage was 16.9%, compared to 16.6% in the prior year period. Homebuilding gross margin percentage was 17.6%, compared to 16.5% in the prior year period. Adjusted homebuilding gross margin percentage was 19.9%, compared to 18.6% in the prior year period, due to a shift in product mix of the homes sold, along with ongoing cost initiatives.
Sales and marketing expense was $4.1 million, compared to $4.2 million in the same prior year period. As a percentage of total revenue, sales and marketing expense decreased to 6.0% in the first quarter, compared to roughly 9.6% in the prior year period, primarily due to higher overall revenues and deferred expenses related to opening fewer communities.
General and administrative expense was approximately $7.3 million for both the current and prior year period. As a percentage of total revenue, general and administrative expense was 10.7% for the first quarter, compared to 16.8% for the prior year period, primarily driven by higher revenues.
Net new home orders were 225, compared to 254 in the prior year period, primarily as the result of a greater number of higher-paced communities in the East during 2015. The Company has since adjusted the price structure across most communities to moderate the order pace in the East. Net new home orders in the West increased 11.4% to 176, compared to the prior year period. Unit backlog at the end of the quarter was 307, compared to 223 at the end of prior year period and backlog on a dollar basis increased to $136.2 million, compared to $82.7 million at the end of prior year period.
Total lots owned and controlled decreased to 5,349, from 6,886 at March 31, 2015 as the Company continues to improve its return on equity and return on assets by reducing its supply of owned lots.
Webcast and Conference Call
The Company will host a conference call for investors and other interested parties on Monday, May 9, 2016, 12:00 p.m. Eastern Time, 9:00 a.m. Pacific Time. Interested parties can listen to the call live on the Internet and locate accompanying presentation slides through the Investor Relations section of the Company’s website at www.unioncommunityllc.com.
Listeners are advised to log on to the website at least 15 minutes prior to the call to download and / or install any necessary audio software. The conference call can also be accessed by dialing 1-877-407-3982 for domestic participants or 1-201-493-6780 for international participants. Participants should ask for the UCP First Quarter 2016 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the conference call. A replay of the conference call will be available through June 9, 2016, by dialing 1-877-870-5176 for domestic participants or 1-858-384-5517 for international participants and entering the pass code 13635401. An archive of the webcast will be available on the Company’s website for a limited time.
About UCP, Inc.
UCP is a leading homebuilder and land developer with expertise in residential land acquisition, development and entitlement, as well as home design, construction and sales. UCP operates in the States of California, Washington, North Carolina, South Carolina and Tennessee. UCP designs and builds high-quality, sustainable single-family homes for a variety of lifestyles and budgets through its wholly-owned subsidiary, Benchmark Communities, LLC. The Benchmark Communities brand is recognized by homebuyers for its high-quality construction and craftsmanship, cutting-edge home design and customer-centric service and warranty programs.
Forward-Looking Statements
This press release contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, including descriptions of the Company's business strategy. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are based on assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Although the Company believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance they will prove to be correct. Therefore, you should be aware that many factors could affect the Company's actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.
Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which it was made. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.
Homebuilding adjusted gross margin, land development adjusted gross margin and net debt to capital are non-U.S. GAAP financial measures. A reconciliation to the most comparable U.S. GAAP financial measures is presented in Appendix A hereto.
Contact:
Investor Relations:
Investorrelations@unioncommunityllc.com
408-207-9499 Ext. 476
Media:
Phil Denning/Jason Chudoba
Phil.denning@icrinc.com / Jason.chudoba@icrinc.com
UCP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and per share data)
|
| | | | | | | |
| March 31,
2016 |
| December 31,
2015 |
| Assets |
|
|
|
| Cash and cash equivalents | $ | 29,769 |
|
| $ | 39,829 |
|
| Restricted cash | 900 |
|
| 900 |
|
| Real estate inventories | 371,545 |
|
| 360,989 |
|
| Fixed assets, net | 1,189 |
|
| 1,314 |
|
| Intangible assets, net | 207 |
|
| 236 |
|
| Goodwill | 4,223 |
|
| 4,223 |
|
| Receivables | 1,388 |
|
| 1,317 |
|
| Other assets | 4,934 |
|
| 5,889 |
|
| Total assets | $ | 414,155 |
|
| $ | 414,697 |
|
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
|
| Accounts payable | $ | 12,185 |
|
| $ | 14,882 |
|
| Accrued liabilities | 23,329 |
|
| 24,616 |
|
| Customer deposits | 2,279 |
|
| 1,825 |
|
| Notes payable, net | 84,890 |
|
| 82,486 |
|
| Senior notes, net | 73,694 |
|
| 73,480 |
|
| Total liabilities | 196,377 |
|
| 197,289 |
|
|
|
|
|
|
|
| Commitments and contingencies (Note 12) |
|
|
|
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
| Preferred stock, par value $0.01 per share, 50,000,000 authorized, no shares issued and outstanding as of March 31, 2016; no shares issued and outstanding as of December 31, 2015 | — |
|
| — |
|
| Class A common stock, $0.01 par value; 500,000,000 authorized, 8,025,591 issued and outstanding as of March 31, 2016; 8,014,434 issued and outstanding as of December 31, 2015 | 80 |
|
| 80 |
|
| Class B common stock, $0.01 par value; 1,000,000 authorized, 100 issued and outstanding as of March 31, 2016; 100 issued and outstanding as of December 31, 2015 | — |
|
| — |
|
| Additional paid-in capital | 94,743 |
|
| 94,683 |
|
| Accumulated deficit | (4,467 | ) |
| (4,563 | ) |
| Total UCP, Inc. stockholders’ equity | 90,356 |
|
| 90,200 |
|
| Noncontrolling interest | 127,422 |
|
| 127,208 |
|
| Total equity | 217,778 |
|
| 217,408 |
|
| Total liabilities and equity | $ | 414,155 |
|
| $ | 414,697 |
|
UCP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME OR LOSS
(In thousands, except shares and per share data)
|
| | | | | | | |
| Three Months Ended March 31, |
| 2016 |
| 2015 |
| REVENUE: |
|
|
|
| Homebuilding | $ | 68,225 |
|
| $ | 42,635 |
|
| Land development | — |
|
| 120 |
|
| Other revenue | — |
|
| 768 |
|
| Total revenue: | 68,225 |
|
| 43,523 |
|
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
| Cost of sales - homebuilding | 56,206 |
|
| 35,618 |
|
| Cost of sales - land development | 461 |
|
| 5 |
|
| Cost of sales - other revenue | — |
|
| 663 |
|
| Total cost of sales | 56,667 |
|
| 36,286 |
|
| Gross margin - homebuilding | 12,019 |
|
| 7,017 |
|
| Gross margin - land development | (461 | ) |
| 115 |
|
| Gross margin - other revenue | — |
|
| 105 |
|
| Sales and marketing | 4,076 |
|
| 4,196 |
|
| General and administrative | 7,275 |
|
| 7,320 |
|
| Total costs and expenses | 68,018 |
|
| 47,802 |
|
| Income (loss) from operations | 207 |
|
| (4,279 | ) |
| Other income, net | 28 |
|
| 102 |
|
| Net income (loss) before income taxes | $ | 235 |
|
| $ | (4,177 | ) |
| Provision for income taxes | (5 | ) |
| — |
|
| Net income (loss) | $ | 230 |
|
| $ | (4,177 | ) |
| Net income (loss) attributable to noncontrolling interest | $ | 134 |
|
| $ | (2,337 | ) |
| Net income (loss) attributable to UCP, Inc. | 96 |
|
| (1,840 | ) |
| Other comprehensive income (loss), net of tax | — |
|
| — |
|
| Comprehensive income (loss) | $ | 230 |
|
| $ | (4,177 | ) |
| Comprehensive income (loss) attributable to noncontrolling interest | $ | 134 |
|
| $ | (2,337 | ) |
| Comprehensive income (loss) attributable to UCP, Inc. | $ | 96 |
|
| $ | (1,840 | ) |
|
|
|
|
| Earnings (loss) per share of Class A common stock: |
|
|
|
| Basic | $ | 0.01 |
|
| $ | (0.23 | ) |
| Diluted | $ | 0.01 |
|
| $ | (0.23 | ) |
|
|
|
|
| Weighted average shares of Class A common stock: |
|
|
|
| Basic | 8,021,747 |
|
| 7,923,329 |
|
| Diluted | 8,022,601 |
|
| 7,923,329 |
|
UCP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
| | | | | | | |
| Three months ended March 31, |
| 2016 |
| 2015 |
| Operating activities |
|
|
|
|
|
| Net income (loss) | $ | 230 |
|
| $ | (4,177 | ) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
| Stock-based compensation | 185 |
|
| 631 |
|
| Abandonment charges | 419 |
|
| 2 |
|
| Depreciation and amortization | 156 |
|
| 149 |
|
| Fair value adjustment of contingent consideration | 8 |
|
| 220 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Real estate inventories | (10,839 | ) |
| (6,587 | ) |
| Receivables | (71 | ) |
| (729 | ) |
| Other assets | 1,104 |
|
| (292 | ) |
| Accounts payable | (2,697 | ) |
| 1,887 |
|
| Accrued liabilities | (1,230 | ) |
| (4,919 | ) |
| Customer deposits | 454 |
|
| 593 |
|
| Income taxes payable | (64 | ) |
| — |
|
| Net cash used in operating activities | (12,345 | ) |
| (13,222 | ) |
| Investing activities |
|
|
|
|
|
| Purchases of fixed assets | (22 | ) |
| (181 | ) |
| Net cash used in investing activities | (22 | ) |
| (181 | ) |
| Financing activities |
|
|
|
|
|
| Distribution to noncontrolling interest | — |
|
| (726 | ) |
| Proceeds from notes payable | 35,476 |
|
| 24,003 |
|
| Repayment of notes payable | (33,112 | ) |
| (17,322 | ) |
| Debt issuance costs | (12 | ) |
| (171 | ) |
| Withholding taxes paid for vested RSU's | (45 | ) |
| (21 | ) |
| Net cash provided by financing activities | 2,307 |
|
| 5,763 |
|
| Net decrease in cash and cash equivalents | (10,060 | ) |
| (7,640 | ) |
| Cash and cash equivalents – beginning of period | 39,829 |
|
| 42,033 |
|
| Cash and cash equivalents – end of period | $ | 29,769 |
|
| $ | 34,393 |
|
|
|
|
|
|
|
| Non-cash investing and financing activity |
|
|
|
|
|
| Exercise of land purchase options acquired with acquisition of business | $ | 6 |
|
| $ | 72 |
|
|
|
|
|
|
|
| Issuance of Class A common stock for vested restricted stock units | $ | 113 |
|
| $ | 27 |
|
|
|
|
|
|
|
| Supplemental cash flow information |
|
|
|
|
|
| Income taxes paid | $ | 70 |
|
| $ | — |
|
Appendix A
Select Operating Data by Region
|
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended March 31, |
| Three months ended March 31, |
| 2016 |
| 2015 |
| % Change |
| 2016 |
| 2015 |
| % Change |
| Revenue from Homebuilding Operations (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| West | $ | 56,758 |
|
| $ | 33,227 |
|
| 70.8 | % |
| $ | 56,758 |
|
| $ | 33,227 |
|
| 70.8 | % |
| East | 11,467 |
|
| 9,408 |
|
| 21.9 | % |
| 11,467 |
|
| 9,408 |
|
| 21.9 | % |
| Total | $ | 68,225 |
|
| $ | 42,635 |
|
| 60.0 | % |
| $ | 68,225 |
|
| $ | 42,635 |
|
| 60.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Homes Delivered |
|
|
|
|
|
|
|
|
|
|
|
| West | 115 |
|
| 78 |
|
| 47.4 | % |
| 115 |
|
| 78 |
|
| 47.4 | % |
| East | 52 |
|
| 44 |
|
| 18.2 | % |
| 52 |
|
| 44 |
|
| 18.2 | % |
| Total | 167 |
|
| 122 |
|
| 36.9 | % |
| 167 |
|
| 122 |
|
| 36.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Selling Price for Home Sales (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| West | $ | 494 |
|
| $ | 426 |
|
| 16.0 | % |
| $ | 494 |
|
| $ | 426 |
|
| 16.0 | % |
| East | 221 |
|
| 214 |
|
| 3.3 | % |
| 221 |
|
| 214 |
|
| 3.3 | % |
| Total | $ | 409 |
|
| $ | 349 |
|
| 17.2 | % |
| $ | 409 |
|
| $ | 349 |
|
| 17.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Net New Home Orders |
|
|
|
|
|
|
|
|
|
|
|
| West | 176 |
|
| 158 |
|
| 11.4 | % |
| 176 |
|
| 158 |
|
| 11.4 | % |
| East | 49 |
|
| 96 |
|
| (49.0 | )% |
| 49 |
|
| 96 |
|
| (49.0 | )% |
| Total | 225 |
|
| 254 |
|
| (11.4 | )% |
| 225 |
|
| 254 |
|
| (11.4 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Selling Communities |
|
|
|
|
|
|
|
|
|
|
|
| West | 19 |
|
| 16 |
|
| 18.8 | % |
| 19 |
|
| 16 |
|
| 18.8 | % |
| East | 9 |
|
| 9 |
|
| — | % |
| 9 |
|
| 9 |
|
| — | % |
| Total | 28 |
|
| 25 |
|
| 12.0 | % |
| 28 |
|
| 25 |
|
| 12.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Backlog Units |
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
|
|
|
|
| 246 |
|
| 141 |
|
| 74.5 | % |
| East |
|
|
|
|
|
| 61 |
|
| 82 |
|
| (25.6 | )% |
| Total |
|
|
|
|
|
| 307 |
|
| 223 |
|
| 37.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Backlog Dollar Basis (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
| West |
|
|
|
|
|
| $ | 122,026 |
|
| $ | 65,811 |
|
| 85.4 | % |
| East |
|
|
|
|
|
| 14,194 |
|
| 16,892 |
|
| (16.0 | )% |
| Total |
|
|
|
|
|
| $ | 136,220 |
|
| $ | 82,703 |
|
| 64.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| Owned Lots |
|
|
|
|
|
|
|
|
|
|
|
| West |
|
|
|
|
|
| 3,761 |
|
| 4,340 |
|
| (13.3 | )% |
| East |
|
|
|
|
|
| 861 |
|
| 1,041 |
|
| (17.3 | )% |
| Total |
|
|
|
|
|
| 4,622 |
|
| 5,381 |
|
| (14.1 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
| Controlled Lots |
|
|
|
|
|
|
|
|
|
|
|
| West |
|
|
|
|
|
| 407 |
|
| 517 |
|
| (21.3 | )% |
| East |
|
|
|
|
|
| 320 |
|
| 988 |
|
| (67.6 | )% |
| Total |
|
|
|
|
|
| 727 |
|
| 1,505 |
|
| (51.7 | )% |
Appendix B
Reconciliation of GAAP and Non-GAAP Measures
Gross Margin and Adjusted Gross Margin
|
| | | | | | | | | | | | | |
| Three Months Ended March 31, |
| 2016 |
|
| % |
|
| 2015 |
|
| % |
|
| (Dollars in thousands) |
| Consolidated Adjusted Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
| Revenue | $ | 68,225 |
|
| 100.0 | % |
| $ | 43,523 |
|
| 100.0 | % |
| Cost of Sales | 56,667 |
|
| 83.1 | % |
| 36,286 |
|
| 83.4 | % |
| Gross Margin | 11,558 |
|
| 16.9 | % |
| 7,237 |
|
| 16.6 | % |
| Add: interest in cost of sales | 1,539 |
|
| 2.3 | % |
| 924 |
|
| 2.1 | % |
| Add: impairment and abandonment charges | 419 |
|
| 0.6 | % |
| 2 |
|
| — | % |
Adjusted Gross Margin (1) | $ | 13,516 |
|
| 19.8 | % |
| $ | 8,163 |
|
| 18.8 | % |
| Consolidated Gross margin percentage | 16.9 | % |
|
|
|
| 16.6 | % |
|
|
|
Consolidated Adjusted gross margin percentage (1) | 19.8 | % |
|
|
|
| 18.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding Adjusted Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
| Homebuilding revenue | $ | 68,225 |
|
| 100.0 | % |
| $ | 42,635 |
|
| 100.0 | % |
| Cost of home sales | 56,206 |
|
| 82.4 | % |
| 35,618 |
|
| 83.5 | % |
| Homebuilding gross margin | 12,019 |
|
| 17.6 | % |
| 7,017 |
|
| 16.5 | % |
| Add: interest in cost of home sales | 1,539 |
|
| 2.3 | % |
| 924 |
|
| 2.2 | % |
| Add: impairment and abandonment charges | — |
|
| — | % |
| — |
|
| — | % |
Adjusted homebuilding gross margin(1) | $ | 13,558 |
|
| 19.9 | % |
| $ | 7,941 |
|
| 18.6 | % |
| Homebuilding gross margin percentage | 17.6 | % |
|
|
|
| 16.5 | % |
|
|
|
Adjusted homebuilding gross margin percentage (1) | 19.9 | % |
|
|
|
| 18.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Land Development Adjusted Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
| Land development revenue | $ | — |
|
| — | % |
| $ | 120 |
|
| 100.0 | % |
| Cost of land development | 461 |
|
| — | % |
| 5 |
|
| 4.2 | % |
| Land development gross margin | (461 | ) |
| — | % |
| 115 |
|
| 95.8 | % |
| Add: interest in cost of land development | — |
|
| — | % |
| — |
|
| — | % |
| Add: Impairment and abandonment charges | 419 |
|
| — | % |
| 2 |
|
| 1.7 | % |
Adjusted land development gross margin (1) | $ | (42 | ) |
| — | % |
| $ | 117 |
|
| 97.5 | % |
| Land development gross margin percentage | — | % |
|
|
|
| 95.8 | % |
|
|
|
Adjusted land development gross margin percentage (1) | — | % |
|
|
|
| 97.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Revenue Gross and Adjusted Margin |
|
|
|
|
|
|
|
|
|
|
|
| Revenue | $ | — |
|
| — | % |
| $ | 768 |
|
| 100.0 | % |
| Cost of revenue | — |
|
| — | % |
| 663 |
|
| 86.3 | % |
| Other revenue gross and adjusted margin | $ | — |
|
| — | % |
| $ | 105 |
|
| 13.7 | % |
| Other revenue gross and adjusted margin percentage | — | % |
|
|
|
| 13.7 | % |
|
|
|
* Percentages may not add due to rounding.
| |
| (1) | Adjusted gross margin, adjusted homebuilding gross margin and adjusted land development gross margin are non-U.S. GAAP financial measures. These metrics have been adjusted to add back capitalized interest, and impairment and abandonment charges. We use adjusted gross margin information as a supplemental measure when evaluating our operating performance. We believe this information is meaningful, because it isolates the impact that leverage and non-cash impairment and abandonment charges have on gross margin. However, because adjusted gross margin information excludes interest expense and impairment and abandonment charges, all of which have real economic effects and could materially impact our results, the utility of adjusted gross margin information as a measure of our operating performance is limited. In addition, other companies may not calculate adjusted gross margin information in the same manner that we do. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of our performance. The table above provides a reconciliation of adjusted gross margin numbers to the most comparable U.S. GAAP financial measure. |
Debt-to-Capital Ratio and Net Debt-to-Capital Ratio
|
| | | | | | | |
| | As of March 31, 2016 |
| As of December 31, 2015 |
| Debt | $ | 158,584 |
|
| $ | 155,966 |
|
| Equity | 217,778 |
|
| 217,408 |
|
| Total capital | $ | 376,362 |
|
| $ | 373,374 |
|
| Ratio of debt-to-capital | 42.1 | % |
| 41.8 | % |
| Debt | $ | 158,584 |
|
| $ | 155,966 |
|
|
|
|
|
|
|
| Net cash and cash equivalents | $ | 30,669 |
|
| $ | 40,729 |
|
| Less: restricted cash and minimum liquidity requirement | 15,900 |
|
| 15,900 |
|
| Unrestricted cash and cash equivalents | $ | 14,769 |
|
| $ | 24,829 |
|
|
|
|
|
|
|
| Net debt | $ | 143,815 |
|
| $ | 131,137 |
|
| Equity | 217,778 |
|
| 217,408 |
|
| Total adjusted capital | $ | 361,593 |
|
| $ | 348,545 |
|
Ratio of net debt-to-capital (1) | 39.8 | % |
| 37.6 | % |
| |
(1) | The ratio of net debt-to-capital is computed as the quotient obtained by dividing net debt (which is debt less cash and cash equivalents, including restricted cash balance requirements) by the sum of net debt plus stockholders’ and member's equity. The most directly comparable U.S. GAAP financial measure is the ratio of debt-to-capital. We believe the ratio of net debt-to-capital is a relevant financial measure for investors to understand the leverage employed in our operations and as an indicator of our ability to obtain financing. We reconcile this non-U.S. GAAP financial measure to the ratio of debt-to-capital in the table above. The Company’s calculation of net debt-to-capital ratio might not be comparable with other issuers or issuers in other industries. |
