<PAGE>
EXHIBIT 99
[LETTERHEAD OF STANDARD PACIFIC CORP.]
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FOR IMMEDIATE RELEASE ON MONDAY, JULY 24, 2000
STANDARD PACIFIC CORP. REPORTS 28% INCREASE
IN SECOND QUARTER PER SHARE EARNINGS
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Financial and Operating Highlights - 2000 Second Quarter vs. 1999 Second Quarter
. Earnings per share increased 28 percent to $.69 per share
. Net new orders were up 24 percent to a record 1,146 homes
. Revenues exceeded $280 million on 860 new home deliveries
. Backlog of 1,700 homes valued at $606 million, up 27 percent
. Stockholders' equity surpasses $400 million
IRVINE, CALIFORNIA, July 24, 2000..........................................
Standard Pacific Corp. (NYSE:SPF) today reported the Company's 2000 second
quarter results. Net income from continuing operations for the 2000 second
quarter increased 23 percent to $20,023,000, or $.69 per diluted share, compared
to $16,240,000, or $.54 per diluted share, for the year earlier period.
Homebuilding revenues for the second quarter totaled $283,689,000 versus
$309,179,000 for the 1999 second quarter.
"The Company's position as one of the leading homebuilders in the strong
California housing market coupled with increasing bottom-line contributions from
the Company's Texas and Arizona operations resulted in record second quarter
pretax income and our seventeenth consecutive quarter of year-over-year earnings
per share growth," said Stephen J. Scarborough, President and Chief Executive
Officer of Standard Pacific. "Our positive outlook for the balance of 2000 is
fueled by the 24 percent jump in second quarter new home orders and the 27
percent higher backlog of presold homes at June 30, 2000 compared to last year."
Mr. Scarborough further noted that, "continued increases in new home prices in
California coupled with a stabilizing labor and material cost environment have
contributed to an improving gross margin percentage."
Mr. Scarborough noted that, "our strong operating performance has generated
a 19% return on stockholders' equity for the latest twelve months and a 270
basis point improvement over the prior year second quarter in our pretax margin
to 11.6%. Furthermore, we ended the quarter with a debt-to-capital ratio of 48
percent and $78 million borrowed under the Company's $450 million revolving
credit facility."
Commenting on the pending acquisition of Denver-based The Writer
Corporation, Mr. Scarborough stated that, "we look forward to the expected
closing of the acquisition during the third quarter and remain enthusiastic
about entering the Colorado market with such a respected company and
experienced and talented management team."
<PAGE>
"Earlier in the year we reported the formation of our newest homebuilding
division located in the growing Riverside and San Bernardino County areas of
Southern California (the "Inland Empire"). We are pleased to report that our
first deliveries from this division occurred during the second quarter. We are
also encouraged by our growing position of well located lots in desirable Inland
Empire communities," Mr. Scarborough added.
Mr. Scarborough further noted that, "during the second quarter the Company
formed a new operating subsidiary to further our efforts in the growing active
adult housing market. This new division will manage our existing active adult
project in the Talega master plan in South Orange County, while pursuing new
developments in our existing markets. We believe that our knowledge of local
markets combined with our strong reputation and long-standing relationships will
provide the Company with new opportunities in this vibrant market segment."
Homebuilding Operations
-----------------------
Homebuilding pretax income was up 20 percent to $33.2 million for the three
months ended June 30, 2000 compared to $27.6 million last year. The higher
level of operating income was attributable to a 100 basis point improvement in
the homebuilding gross margin and an increase of $6.8 million in joint venture
income. These improvements were partially offset by an 8 percent decline in
homebuilding revenues.
Homebuilding revenues for the second quarter were $283.7 million compared to
$309.2 million in the prior year second quarter. The lower revenue total was due
to a 9.6 percent decline in new home deliveries (exclusive of joint ventures)
which was partially offset by a 1.4 percent higher average home selling price.
During the quarter the Company delivered 497 new homes in California compared to
563 homes last year. Deliveries were up 9 percent in Southern California but
down 32 percent in Northern California. On a full year basis, the Company
anticipates that deliveries in this important market will result in one of the
highest levels achieved in the Northern California division's history. The
anticipated moderation from the record setting volume generated last year is due
to fewer active selling communities and to our focus on maximizing per home
revenues and gross margins. The Company's Arizona division delivered 236 new
homes compared to 228 homes in the year earlier period. Deliveries in our Dallas
and Austin divisions continue to outpace previous periods as reflected by their
38 percent and 6 percent gains, respectively, while deliveries in Houston
declined by 21 homes.
During the second quarter the average home price in California was up 3.5
percent from the prior year to $444,000 primarily reflecting the upward trend of
new home prices in the state. The average home price in Texas was up 22 percent
to $285,000 reflecting a greater percentage of deliveries from the Company's
Dallas and Austin divisions where prices are generally higher than in Houston
and the delivery of larger more expensive homes in all three of the Company's
Texas markets. The average home price in Arizona was up slightly to $169,000.
The homebuilding gross margin was up 100 basis points to 18.2 percent
versus 17.2 percent in the year earlier quarter. The gross margin percentage
improved in all three of the Company's operating regions. The higher margin in
California was primarily due to a general rise in home prices while labor and
material costs stabilized. The improved margins in Texas and Arizona are
primarily attributable to higher delivery volumes and, in Austin, rising home
prices.
<PAGE>
Selling, general and administrative expenses for the second quarter were
8.5 percent of revenues, up from 8.1 percent in the year earlier period. The
fluctuation in SG&A expenses as a percentage of revenues is primarily due to the
timing of certain sales and marketing costs incurred in connection with the
opening of new communities. During the second quarter the Company opened 22 new
communities compared to 9 last year.
Income from unconsolidated joint ventures for the second quarter was
generated from the delivery of 31 homes from our three project joint venture in
Fullerton, California in Orange County and a $5.1 million gain on the sale of an
adjacent parcel of land. The Company is expecting to recognize additional joint
venture income through the balance of the year from land sales from the Talega
venture and from new home deliveries from the Fullerton venture.
Net new home orders for the quarter were up 24 percent over the year
earlier period to a second quarter record of 1,146 new homes on a 25 percent
increase in average community count. Orders were up 46 percent in Southern
California on a 30 percent increase in average community count, up 1 percent in
Northern California on a 7 percent decrease in community count, up 32 percent in
Texas on a 47 percent increase in active selling communities and up 14 percent
in Arizona on a 25 percent higher community count. The higher order levels
contributed to an increase in the Company's backlog to 1,700 presold homes with
an estimated sales value of $606 million, up 27 percent from the backlog value
at June 30, 1999. Assuming there are no significant changes in the economy,
consumer confidence or interest rates, the Company expects to be in a position
to increase unit deliveries in 2000.
Through the first half of the year the Company opened 35 new communities.
The Company is scheduled to open approximately 25 new communities through the
balance of the year, of which approximately 16 will be located in California, 5
in Texas and 4 in Arizona. By the end of the year the Company is expected to
have opened approximately 100 new communities since the beginning of 1999.
The Company's diversified portfolio of buildable lots, which is consistent
with its general goal of maintaining a 3 to 4 year supply, totaled approximately
15,600 lots owned or controlled of which 9,400 were located in California, 2,600
in Texas and 3,600 in Arizona.
Other
-----
Net income for the second quarter including discontinued operations in 1999
increased to $20,023,000, or $.69 per diluted share, compared to $16,775,000, or
$.56 per diluted share, for the 1999 second quarter. The discontinued
operations in 1999 reflect the Company's former savings and loan subsidiary,
which was sold during the 1999 second quarter for an after-tax gain of $618,000,
or $.02 per diluted share.
Net income from continuing operations for the six months ended June 30,
2000 increased 13 percent to $33,919,000, or $1.17 per diluted share, compared
to $30,110,000, or $1.01 per diluted share, last year. Revenues for the first
two quarters of 2000 were $515,808,000 compared to $523,659,000 in the prior
year first half. Net income for the first six months of 2000 including the
discontinued operations was $33,919,000, or $1.17 per diluted share, versus
$30,569,000, or $1.02 per diluted share, in the year earlier period.
<PAGE>
Second quarter 2000 earnings before interest, taxes, depreciation and
amortization ("EBITDA") was $36.7 million compared to $35.8 million for the same
period in 1999. Interest incurred for the second quarter totaled $8.8 million
versus $8.6 million last year, while interest included in cost of sales was $5.9
million compared to $7.2 million in the year earlier period.
Standard Pacific, one of the largest builders in the western United States,
has built homes for more than 40,000 families during its 34-year history. The
Company focuses its efforts on constructing move-up homes within a wide range of
price and size with homes generally selling for $150,000 to over $1 million.
Standard Pacific operates in some of the strongest housing markets in the
country with operations throughout the major metropolitan areas in California,
Texas and Arizona. The Company also provides mortgage financing and title
services to its homebuyers through its subsidiaries, Family Lending Services,
SPH Mortgage and SPH Title.
This news release contains forward-looking statements regarding the expected
completion of the proposed acquisition of The Writer Corporation, the Company's
potential for new opportunities in the growing active adult market, continued
increases in new home prices in California and rising labor and material costs
stabilizing, expected additional joint venture income during the year from new
home and land sales from the Company's Fullerton and Talega joint ventures, the
planned opening of new home communities, the value of the Company's backlog, the
strength of the California housing market, the prospects for continued growth
in unit volume in 2000, the Company's positive outlook for the balance of 2000,
the Company's growing position of well located lots in desirable Inland Empire
communities, the Company's expected deliveries in its Northern California
division and the adequacy of the Company's portfolio of buildable lots. Such
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially. Such factors include, but are
not limited to, changes in local and general economic and market conditions,
including consumer confidence, interest rates, stock market valuations and the
availability of construction and mortgage financing, changes in costs and
availability of material, supplies and labor, the cyclical and competitive
nature of homebuilding, the availability of debt and equity capital, changes in
the availability of suitable undeveloped land at reasonable prices, governmental
regulation, and adverse weather conditions and natural disasters. See the
Company's Annual Report on Form 10-K for the year ended December 31, 1999 for a
further discussion of these and other risks and uncertainties applicable to the
Company's business.
(end of text, tables follow)
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STANDARD PACIFIC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30,
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Homebuilding 2000 1999
--------------- ---------------
<S> <C> <C>
Revenues $ 283,689 $ 309,179
Cost of sales 232,163 256,043
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Gross margin 51,526 53,136
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Selling, general and administrative expenses 24,150 25,110
Income from unconsolidated joint ventures 7,052 266
Interest expense 825 236
Amortization of excess of cost over net assets acquired 495 495
Other income 55 62
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Homebuilding pretax income 33,163 27,623
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Financial Services:
Revenues 588 527
Income from unconsolidated joint venture 195 202
Other income 71 -
Expenses 992 775
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Financial services pretax income (loss) (138) (46)
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Income from continuing operations before income taxes 33,025 27,577
Provision for income taxes (13,002) (11,337)
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Income from continuing operations 20,023 16,240
Income (loss) from discontinued operation, net of income
taxes of $60 in 1999 - (83)
Gain on disposal of discontinued operation, net of income
taxes of $(425) in 1999 - 618
--------------- ---------------
Net Income $ 20,023 $ 16,775
=============== ===============
Basic Net Income Per Share:
Income per share from continuing operations $ 0.70 $ 0.55
Income (loss) per share from discontinued operation - (0.00)
Gain on disposal of discontinued operation - 0.02
--------------- ---------------
Net Income Per Share $ 0.70 $ 0.57
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Weighted average common shares outstanding 28,716,633 29,642,507
=============== ===============
Diluted Net Income Per Share:
Income per share from continuing operations $ 0.69 $ 0.54
Income (loss) per share from discontinued operation - (0.00)
Gain on disposal of discontinued operation - 0.02
--------------- ---------------
Net Income Per Share $ 0.69 $ 0.56
=============== ===============
Weighted average common and diluted shares outstanding 28,842,493 29,916,581
=============== ===============
</TABLE>
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<TABLE>
<CAPTION>
Three Months Ended June 30,
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New Homes Delivered: 2000 1999
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<S> <C> <C>
Southern California 272 279
Northern California 194 284
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Total California 466 563
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Dallas 73 53
Austin 38 36
Houston 16 37
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Total Texas 127 126
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Arizona 236 228
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Total consolidated 829 917
Joint ventures (Southern California) 31 -
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Total 860 917
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Average Selling Price:
California deliveries (excluding joint ventures) $443,907 $428,783
Texas deliveries $284,827 $233,090
Arizona $168,649 $165,757
Combined (excluding joint ventures) $341,176 $336,496
Combined (including joint ventures) $363,875 $336,496
Net New Orders:
Southern California 433 323
Northern California 280 277
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Total California 713 600
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Dallas 89 67
Austin 64 40
Houston 15 20
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Total Texas 168 127
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Arizona 225 197
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Total consolidated 1,106 924
Joint ventures (Southern California) 40 -
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1,146 924
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Average Selling Communities during Quarter:
Southern California 23 20
Northern California 14 15
Texas 25 17
Arizona 15 12
Joint ventures (Southern California) 3 -
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Total 80 64
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</TABLE>
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<TABLE>
<CAPTION>
As of June 30,
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Backlog (in units): 2000 1999
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<S> <C> <C>
Southern California 609 545
Northern California 413 348
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Total California 1,022 893
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Dallas 116 89
Austin 96 52
Houston 8 13
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Total Texas 220 154
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Arizona 376 353
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Total consolidated 1,618 1,400
Joint ventures (Southern California) 82 -
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Total 1,700 1,400
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Backlog at quarter end (estimated dollar
value in thousands) $606,295 $478,304
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Building Sites Owned or Controlled:
California 9,445 9,434
Texas 2,567 2,772
Arizona 3,597 4,125
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Total 15,609 16,331
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</TABLE>
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(Dollars in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
---------------------------------------
Homebuilding 2000 1999
---------------- ---------------
<S> <C> <C>
Revenues $ 515,808 $ 523,659
Cost of sales 422,368 430,684
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Gross margin 93,440 92,975
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Selling, general and administrative expenses 42,600 45,335
Income from unconsolidated joint ventures 7,958 4,884
Interest expense 1,253 527
Amortization of excess of cost over net assets acquired 989 989
Other income 89 86
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Homebuilding pretax income 56,645 51,094
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Financial Services:
Revenues 1,018 1,112
Income from unconsolidated joint venture 343 400
Other income 121 -
Expenses 1,809 1,450
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Financial services pretax income (loss) (327) 62
---------------- ---------------
Income from continuing operations before income taxes 56,318 51,156
Provision for income taxes (22,399) (21,046)
---------------- ---------------
Income from continuing operations 33,919 30,110
Income (loss) from discontinued operation, net of income
taxes of $114 in 1999 - (159)
Gain on disposal of discontinued operation, net of income
taxes of $(425) in 1999 - 618
---------------- ---------------
Net Income $ 33,919 $ 30,569
================ ===============
Basic Net Income Per Share:
Income per share from continuing operations $ 1.17 $ 1.02
Income (loss) per share from discontinued operation - (0.01)
Gain on disposal of discontinued operation - 0.02
---------------- ---------------
Net Income Per Share $ 1.17 $ 1.03
================ ===============
Weighted average common shares outstanding 28,882,521 29,639,604
================ ===============
Diluted Net Income Per Share:
Income per share from continuing operations $ 1.17 $ 1.01
Income (loss) per share from discontinued operation - (0.01)
Gain on disposal of discontinued operation - 0.02
---------------- ---------------
Net Income Per Share $ 1.17 $ 1.02
================ ===============
Weighted average common and diluted shares outstanding 29,004,124 29,903,340
================ ===============
</TABLE>
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<TABLE>
<CAPTION>
Six Months Ended June 30,
---------------------------------------
New Homes Delivered: 2000 1999
---------------- ---------------
<S> <C> <C>
Southern California 507 473
Northern California 368 452
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Total California 875 925
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Dallas 131 92
Austin 75 64
Houston 25 73
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Total Texas 231 229
---------------- ---------------
Arizona 419 416
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Total consolidated 1,525 1,570
Joint ventures (Southern California) 48 -
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Total 1,573 1,570
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Average Selling Price:
California deliveries (excluding joint ventures) $436,923 $434,007
Texas deliveries $271,257 $229,221
Arizona $166,387 $163,545
Combined (excluding joint ventures) $337,498 $332,473
Combined (including joint ventures) $351,750 $332,473
Net New Orders:
Southern California 774 641
Northern California 608 553
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Total California 1,382 1,194
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Dallas 164 130
Austin 132 79
Houston 29 55
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Total Texas 325 264
---------------- ---------------
Arizona 468 401
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Total consolidated 2,175 1,859
Joint ventures (Southern California) 84 -
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Total 2,259 1,859
================ ===============
</TABLE>
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STANDARD PACIFIC CORP. AND
SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
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<S> <C> <C>
ASSETS
Homebuilding:
Cash and equivalents $ 1,508 $ 2,865
Other notes and accounts receivable, net 14,401 10,489
Mortgage notes receivable and accrued interest 1,389 4,530
Inventories 763,339 699,489
Investments in and advances to unconsolidated joint ventures 72,592 49,116
Property and equipment, net 4,386 2,656
Deferred income taxes 14,462 12,738
Other assets 11,620 13,350
Excess of cost over net assets acquired, net 14,326 15,315
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898,023 810,548
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Financial Services:
Cash and equivalents 169 313
Mortgage loans held for sale 16,169 17,554
Other assets 935 1,553
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17,273 19,420
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Total Assets $915,296 $829,968
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LIABILITIES AND STOCKHOLDERS' EQUITY
Homebuilding:
Accounts payable $ 50,743 $ 42,344
Accrued liabilities 66,670 69,437
Revolving credit facility 77,900 23,000
Trust deed notes payable 3,499 3,531
Senior notes payable 298,901 298,847
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497,713 437,159
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Financial Services:
Accounts payable and accrued liabilities 363 620
Mortgage warehouse line of credit 11,390 10,304
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11,753 10,924
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Stockholders' Equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized;
none issued - -
Common stock, $.01 par value; 100,000,000 shares authorized;
28,689,280 and 29,208,680 shares outstanding, respectively 287 292
Paid-in capital 273,365 278,701
Retained earnings 132,178 102,892
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Total stockholders' equity 405,830 381,885
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Total Liabilities and Stockholders' Equity $915,296 $829,968
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</TABLE>
