Standard Pacific reports $21.9 million Q4 loss
Standard Pacific, a production home builder with operations in eight states, reported a net loss of $21.9 million for the fourth quarter of 2010, compared with net income of $82.7 million for the same quarter a year ago. The 2010 fourth quarter included a $23.8 million charge related to the early extinguishment of debt and $2.3 million of asset impairments. Excluding these one-time charges, the company generated net income of $4.3 million for the 2010 fourth quarter.
For the full year, Standard Pacific reported net income of $11.7 million compared with $13.8 million in fiscal 2009. Excluding debt restructuring charges and other impairments, net income for fiscal 2010 was $20.6 million.
Home-building revenues for the 2010 fourth quarter were $212.4 million, down 37% from $339.8 million for the 2009 fourth quarter. The decrease in revenues was driven primarily by a 34% decline in new home deliveries, which dropped to 619 homes from 943 home a year ago.
Home-building revenues for 2010 were $912.4 million, compared with $1.17 billion for the prior year.
Net new orders were also down 22% in the quarter to 428 homes. The average home price rose 7%, from $318,000 to $340,000. The company said this increase was largely due to the delivery of more higher-priced homes in California and a reduction in deliveries in Florida and Arizona, as compared with the 2009 fourth quarter.
In a prepared statement, Standard Pacific’s president and CEO, Ken Campbell, said the home builder has “a substantial amount of capital and liquidity to continue our land acquisition strategy” as a result of its debt refinancing. “As a result of our land buying efforts, we expect to open over 55 new communities in 2011, 35 of which are slated for the first half of the year,” Campbell said.