IRVINE, CA -- Homebuilder Standard Pacific Corp. announced that it generated net income of $10.7 million in the 2010 second quarter compared to a net loss of $23.1 million for the year earlier period. The primary drivers of the improved operating performance for the 2010 second quarter were higher revenues, higher gross margins, higher average sales prices and lower asset impairments and overhead costs. The 2009 second quarter results included $21.3 million of asset impairment charges and $5.5 million of restructuring charges. The 2010 second quarter included a $5.2 million charge related to the early extinguishment of debt and did not include any asset impairments. Excluding the loss on the early extinguishment of debt, the Company generated net income of $15.9 million, or $0.05* per diluted share, for the 2010 second quarter.
Homebuilding revenues for the 2010 second quarter were $317.2 million, up 9% from $289.7 million for the 2009 second quarter. The increase in homebuilding revenues was driven primarily by an 18% increase in consolidated average home price to $355,000, largely due to the delivery of more higher priced California homes during the quarter as compared to the 2009 second quarter. The increase in average home price was offset in part by a 5% decline in new home deliveries to 891 homes (exclusive of joint ventures).
Ken Campbell, the Company's President and CEO commented, "I am pleased that our strategy appears to be working well. Our average sales price is moving up. The gross margins in our backlog are steady. The average gross margin we are earning on new communities, although still a small percentage of the total, is above our older communities." Mr. Campbell continued, "Achieving this level of profitability at these sales rates bodes particularly well for our financial performance when the market begins to recover. I am looking forward to that recovery.... anxiously."