IRVINE, Calif., Sept. 8 /PRNewswire-FirstCall/ -- In anticipation of upcoming investor conferences and in compliance with Regulation FD, Standard Pacific Corp. today reported preliminary new home order comparisons for July and August 2006.
Net new home orders for the first two months of the 2006 third quarter were down 58% from the year earlier period, driven in large part by the continued increase in the Company's cancellation rate and further weakening of demand in many of the Company's larger markets. Orders were off meaningfully in Southern California, Northern California, Florida and Arizona, but up in Texas. Orders were off moderately in the Carolinas and Colorado. The Company's gross orders for the first two months of the 2006 third quarter were off 30% versus the year ago period. Our backlog at August 31, 2006, stood at 4,837 pre-sold homes valued at approximately $1.8 billion.
In light of lower than expected order levels for the first two months of the 2006 third quarter and deteriorating market conditions, the Company anticipates that third quarter earnings per share will be materially below our previously provided guidance. In addition, the Company expects to lower its earnings and delivery guidance for the full year and will provide an update in conjunction with its regularly scheduled earnings release at the end of October.
Standard Pacific, one of the nation's largest homebuilders, has built homes for more than 89,000 families during its 40-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado, and Nevada. The Company provides mortgage financing and title services to its homebuyers through its subsidiaries and joint ventures, Family Lending Services, SPH Home Mortgage, Home First Funding, Universal Land Title of South Florida and SPH Title. For more information about the Company and its new home developments, please visit our website at: http://www.standardpacifichomes.com/.
This news release contains forward-looking statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to differ materially from those that may be described or implied. Such factors include but are not limited to: local and general economic and market conditions, including consumer confidence, employment rates and interest rates. In addition, orders are typically subject to cancellation and may not result in sales. For a discussion of certain of the risks, uncertainties and other factors affecting the statements contained in this news release, see the Company's most recent Annual Report on Form 10-K.
