Standard Pacific’s 4th Quarter Surprisingly Successful
Standard Pacific Corp., one of the largest home builders in the U.S., said fourth-quarter earnings more than doubled, beating expectations.
The Costa Mesa company said earnings were boosted by acquisitions and the strong housing market.
Profit from continuing operations rose to $20.9 million, or 70 cents a share, from $9.4 million, or 31 cents, in the fourth quarter of 1997. The figures are before a $56,000 loss from discontinued operations in 1998 and a $780,000 loss in 1997.
Analysts polled by First Call estimated per-share earnings of 61 cents for the three months.
“Our strong presence . . . in California enabled the company to capitalize on the strength of the country’s largest domestic economy and housing market,” Arthur Svendsen, chairman and chief executive, said in a statement.
The company’s stock on Monday rose nearly 11%, or $1.44 a share, to $14.75.
Standard Pacific has benefited from a booming housing market that has pushed new construction to record levels this year. It is also taking advantage of a growing economy in California that is increasing demand for its large, upscale homes.
The company said home building revenue for the quarter rose to $315.4 million from $155.6 million. Net orders for the fourth quarter rose 14% to 495 homes, including 119 orders from the company’s newly acquired Arizona operations. Without Arizona, net orders fell 14% because of a lower inventory of homes for sale after strong demand earlier in the year.
The company’s backlog of homes ordered but not yet completed rose 75% to 1,111 homes, worth $336 million. The average price of Standard Pacific homes rose 4% to $337,000.
For the full year, profit from continuing operations rose 98% to $47.4 million, or $1.58 a share, from $24 million, or 81 cents a share, the previous year. The 1998 figures are before an extraordinary charge of $1.3 million for the early retirement of debt and a $199,000 loss from discontinued operations.
Revenue rose 29% to a record $759.6 million from $584.6 million.
