Standard Pacific reports strong Q1
Irvine, Calif.-based Standard Pacific Corp. reported first-quarter net income of $8.5 million, compared with a net loss of $14.8 million in the first quarter of 2011.
Home sale revenues for the first quarter ended March 31 increased 53% to $220.3 million from $143.7 million in year-ago period. This was driven by a 46% increase in new home deliveries (excluding joint ventures) to 642 homes and a 5% increase in the company’s consolidated average home price to $343,000.
"After a strong finish to 2011, we are pleased to report that the positive momentum has continued into the first quarter. We believe our solid first quarter results reflect the execution of our strategy and suggest that there may be some stabilization in the economy and the overall housing market," said Scott Stowell, CEO and president.
"We have achieved a profitable first quarter, with net new orders, new home deliveries, home sale revenues and homes in backlog up over the prior year by 43%, 46%, 53% and 55%, respectively,” he added.” In addition to these significant year-over-year improvements, I am also particularly pleased with our gross margin from home sales, which was 20.3% for the 2012 first quarter."
Net new orders (excluding joint ventures) for the 2012 first quarter increased 43% to 934 homes on a 14% increase in the number of average active selling communities, from 138 to 158. The Company’s cancellation rate for the 2012 first quarter was 13%, compared with 14% in the year-ago period and 19% for the 2011 fourth quarter.
PulteGroup Q1 loss narrows
Bloomfield Hills, Mich.-based PulteGroup reported a net loss of $12 million for the first quarter ended March 31, compared with a net loss of $40 million in the prior-year quarter. Reported net loss includes $6 million of land-related charges, which were offset by $6 million of land-sale gains.
Home sale revenues in the first quarter increased 4% to $814 million, compared with $782 million in the prior year. Higher revenue for the quarter reflects a 5%, or $12,000, increase in average selling price to $261,000, partially offset by a 1% decrease in closings to 3,117 homes.
"PulteGroup’s first-quarter financial results demonstrate further success in our efforts to reposition the business and drive better long term financial returns," said Richard J. Dugas Jr., PulteGroup chairman, president and CEO. "For the quarter, improved gross margins and excellent control of overhead costs within our operations, along with better results from our financial services operations, helped to drive a $32 million increase in pretax operating results. Our first quarter results reflect the benefit of initiatives launched in 2011 which are expected to deliver additional gains as we move through the remainder of 2012 and beyond."
For the quarter, the company reported a 15% increase in net signups of 4,991 homes, which were generated from 6% fewer communities. Prior-year net signups were 4,345 homes. The cancellation rate in the first quarter was 15%, down from 16% in the prior year.
PulteGroup’s contract backlog as of March 31 was 5,798 homes, with a value of $1.6 billion, compared with a prior-year contract backlog of 5,188 homes, valued at $1.4 billion.
Little change in Remodeling Market Index
The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) decreased one point to 47 from the upwardly revised 48 in the previous quarter.
In the first quarter, the RMI component measuring current market conditions dropped one point to 49, while the component measuring future indicators of remodeling business fell two points to 44.
“We are seeing that the demand for remodeling work has been pulled forward because of a mild winter,” said NAHB Remodelers Chairman George “Geep” Moore Jr., owner/president of Moore-Built Construction & Restoration in Elm Grove, La. “That is why many remodelers reported lower numbers for future activity.”
The three components measuring current market conditions moved in different directions: Major additions was even at 44, minor additions rose one point to 52, and maintenance and repair dropped four points to 51. Two of the four components measuring future market indicators decreased: Backlog of remodeling jobs dropped four points to 43, and appointments for proposals fell five points to 45. Calls for bids rose one point to 47, and amount of work committed for the next three months remained even at 42.
Regionally, remodeling market conditions in the West increased three points to 47, while the other three regions declined: the Northeast to 48 (from 55), the Midwest to 50 (from 52) and the South to 46 (from 49).
The overall RMI combines ratings of current remodeling activity with indicators of future activity. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher.