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TWST: What is Standard Pacific?
Mr. Parnes: We are currently the 11th largest homebuilder in the United
States. Our coast-to-coast homebuilding operations currently span 31
markets in the major metropolitan areas of California, Florida, Arizona,
Texas, the Carolinas, Colorado, and Nevada. We construct homes within a
wide range of product and price points, targeting a broad range of
homebuyers, including a number of specialty niches such as active adult
and age restricted communities, urban infill high density housing and
luxury homes. Over our 40-year history, we have built homes for more
than 82,000 families, including over 11,000 deliveries in 2005. We
operated exclusively in California until the late 1970s, at which time
we entered the Texas market. While we have pursued growth opportunities
within and adjacent to our well established California operations, we
have also diversified geographically by expanding into some of the
largest homebuilding markets in the US. Since 1998, we have entered six
new states and 19 new markets. Over this period, we have expanded
through acquisition into Arizona, Colorado, Florida, and the Carolinas,
while we entered Las Vegas, Nevada and San Antonio, Texas via startups,
hiring experienced local managers to build a local infrastructure. We
believe that acquiring or hiring strong and knowledgeable local
management has been a key to our successful geographic expansion
efforts. We strongly believe that leveraging our experienced management
team and our decentralized operating structure have been integral to our
success over the years. Our senior corporate and division operating
managers average over 20 years of experience in the homebuilding
business. And, since homebuilding is a local business, our decentralized
structure allows our managers to compete for the best land positions,
work with the strongest subcontractors and hire quality staff to
effectively compete in each of our markets. TWST: As you look at your markets, what are some of the more macro
trends and issues that you are facing? How do they have an impact on
your own goals and strategies?
Mr. Parnes: As we sit here today, we are clearly in a different market
environment than we were a year to a year and a half ago. Overall, many
of our markets have cooled down from what were unsustainable paces. Some
of the largest markets in the country ' including Florida, Arizona and
California ' had a tremendous run over the last several years, with
demand at record levels fueling home price appreciation and eventually
stretching affordability. With that being said, some of our other
markets experienced slow conditions during the earlier part of this
decade, notably Colorado, Texas, and the Carolinas. Starting last year,
we began to see Texas and the Carolinas show noticeable signs of
improvement. We believe that these changing market conditions, both
positive and negative, demonstrate the benefit of being diversified and
in a number of markets. Looking at our markets from a longer-term
perspective, we strongly feel that we are in many of the largest and
most dynamic housing markets in the country. We are in the three largest
states with respect to new home production volume and the three fastest
growing states with respect to job and population growth. We are also in
16 of the top 25 metro housing markets in the country and some of the
fastest growing regions in the United States.
Tickers included in this excerpt: SPF
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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