Standard Pacific Corp. Reports 2007 Fourth Quarter And Fiscal Year Loss

Company Generates Substantial Cash, Reduces Debt

IRVINE, Calif., Feb 4 /PRNewswire-FirstCall/ -- Standard Pacific Corp.
(NYSE: SPF) today reported the Company's unaudited 2007 fourth quarter and
fiscal year operating results.
2007 Fourth Quarter Financial and Operating Highlights From Continuing and
Discontinued Operations: -- Cash flows from operating activities of $348
million;
-- Homebuilding cash on balance sheet of $219 million compared to
$5 million at Sept. 30, 2007;
-- Homebuilding debt reduction of $251.1 million during the 2007 fourth
quarter;
-- Loss per share of $6.80 vs. loss per share of $1.53 last year;
-- Net loss of $440.9 million compared to a net loss of $98.4 million last
year;
-- Earnings per share of $0.07, excluding fourth quarter after-tax
impairment and tax valuation allowance charges totaling $6.87 per
share;
-- $433.5 million of pretax charges related to inventory, joint venture
and goodwill impairments and land deposit write-offs (including
$40.6 million related to discontinued operations) and a $180.5 million
noncash charge related to the establishment of a valuation allowance
for the Company's deferred tax asset;
-- Substantially exited Tucson and San Antonio markets as part of
right-sizing footprint; and
-- Tax refund of approximately $235 million expected during first quarter
of 2008 as a result of NOL carryback for federal income taxes.

2007 Fourth Quarter Financial and Operations Highlights From Continuing
Operations Resulted in the Following: -- Homebuilding revenues of $933.6
million vs. $1.2 billion last year;
-- New home deliveries of 2,150*, down 23% from 2,804* last year;
-- 1,002* net new home orders, down 11% from 1,129* last year;
-- Cancellation rate of 37%* versus 44%* last year;
-- Quarter-end backlog of 1,279* homes, valued at $443 million compared to
2,443* homes valued at $885 million a year ago.

The net loss for the quarter ended Dec. 31, 2007 was $440.9 million, or
$6.80 per share, compared to a net loss of $98.4 million, or $1.53 per share,
in the year earlier period. Homebuilding revenues from continuing operations
for the 2007 fourth quarter were $933.6 million versus $1.2 billion last year.
The Company's results for the 2007 fourth quarter include pretax
impairment charges (including discontinued operations) of $433.5 million, or
$265.2 million or $4.09 per share after tax, related to homebuilding market
conditions, including the Company's rationalization of its homebuilding
portfolio as it implements its plan to work its way through today's
challenging environment. The impairment charges consisted of: $96.1 million
related to ongoing consolidated real estate inventories; $211.4 million
related to land sold or held for sale; $77.8 million related to the Company's
share of joint venture inventory impairment charges; $11.8 million related to
land deposit and capitalized preacquisition cost write-offs for abandoned
projects; and $36.4 million related to goodwill impairment charges. In
addition, the fourth quarter operating results also included a noncash charge
of $180.5 million, or $2.78 per share, related to a deferred tax asset
valuation allowance that was established in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"("FAS
109"). Excluding these charges, the Company's earnings would have been $0.07
per share.**
"In the face of unprecedented housing market conditions, Standard Pacific
delivered measurable progress on our plan to generate cash, pay down debt and
improve our liquidity position," commented Stephen J. Scarborough, Chairman,
Chief Executive and President of the Company. "We reduced inventory levels and
generated cash across a number of different fronts. We exceeded our home
delivery target for the fourth quarter. We also sold lots in a number of
markets in order to generate cash from both sale proceeds and from our ability
to monetize the loss on sale through NOL carrybacks for federal income tax
purposes. In addition, we tightened our geographic footprint by substantially
exiting two non-core markets, Tucson and San Antonio. Finally, we continued to
adjust and improve the Company's overhead and cost structure to right-size the
organization and produce homes more efficiently."
Mr. Scarborough went on to state that, "As we enter 2008, we anticipate
that housing market conditions will continue to weaken, resulting in a
decrease in companywide deliveries. In response, we plan to cut new home
starts, new community openings and spends for land acquisitions and site
development costs, and continue to balance overhead to sales levels. Based on
our current view of market conditions, we expect to generate positive cash
flow during the year even after paying off the remaining balance of the 2008
senior notes."
Cash Generation and Debt Reduction Results
Standard Pacific ended the year with more than $219 million of
homebuilding cash on its balance sheet while reducing the balance outstanding
under the Company's revolving credit facility during the 2007 fourth quarter
by more than $163 million to $90 million. In addition, the Company began to
retire its $150 million of 6 1/2% senior notes due October 1, 2008 through the
open market purchase in the fourth quarter of $24 million of those notes, and
the Company paid down its trust deed notes payable by nearly $66 million. As a
result of Standard Pacific's NOL carrybacks for federal income taxes, the
Company expects to receive a tax refund of approximately $235 million during
the 2008 first quarter.
Inventory Reduction
As a result of the aforementioned inventory reduction initiatives,
Standard Pacific's owned or controlled lot position stood at approximately
35,000 lots (including discontinued operations) at Dec. 31, 2007, a 43%
reduction from the year ago level and a 53% decrease from the peak lot count
at Dec. 31, 2005.
Joint Venture Project Rationalization
The Company also made meaningful progress with respect to its joint
ventures. The Company exited six joint ventures during the fourth quarter for
aggregate net cash payments totaling approximately $3.0 million. In addition,
the Company accelerated the take down of lots from one Southern California
venture while acquiring its share of unstarted lots from another Southern
California joint venture, both moves to maximize tax cash flow benefits. As a
result of these actions, combined with activity in previous quarters, the
Company saw its absolute level of joint venture debt (including discontinued
operations) decline year over year by 39% to $771 million. Since the end of
2006, the Company has reduced the number of lots in its joint ventures
(including discontinued operations) by 45%. Looking ahead, the Company will
continue to carefully monitor its joint venture portfolio. During the fourth
quarter Standard Pacific made joint venture loan remargin payments of
approximately $46 million; the Company estimates its share of additional
remargin obligations currently to be $45 million to $55 million, based on
present asset values. These amounts, which are reflected in the Company's cash
flow projections, do not reflect the impact of any further reductions in asset
values which may continue until market conditions stabilize and also do not
reflect additional ordinary course joint venture capital contributions, also
reflected in our cash flow projections, related to acquisition, development
and construction costs, loan step downs, and loan maturities. In addition,
during the fourth quarter we unwound the joint venture in California that we
mentioned in our last earnings release by acquiring the interest of our joint
venture partners and paying off approximately $40 million of the related joint
venture debt. Over the course of this downturn the Company may find it
necessary to exit additional joint ventures, which may be accomplished by
acquiring our partner's interest, disposing of our interest or other means. We
are not currently in discussions with any of our joint venture partners to
acquire their interests.
Credit Facility
As a result of the impact of the $180.5 million FAS 109 deferred tax asset
valuation allowance charge the Company was required to take for the quarter
ended Dec. 31, 2007, the Company was not in compliance with the consolidated
tangible net worth covenant contained in its $900 Million Revolving Credit
Facility, $100 million Term Loan A and $225 million Term Loan B as of the end
of the quarter. The Company sought and obtained from its bank group a waiver
of any default arising from the noncompliance through March 30, 2008. The
Company intends to commence further discussions with its banks to amend its
covenant package.
Financial and Operating Results -- 2007 Fiscal Year vs. 2006 Fiscal Year
The net loss for the year ended Dec. 31, 2007 was $767.3 million, or
$11.85 per share, compared to net income of $123.7 million, or $1.85 per
share, for 2006. Homebuilding revenues for the year were $2.9 billion versus
$3.7 billion last year. The Company's fiscal year results included pretax
impairment charges (including discontinued operations) of $1,092.7 million, or
$670.7 million or $10.36 per share after tax, delineated as follows:
$456.1 million for ongoing consolidated real estate inventories;
$336.0 million for land sold or held for sale; $211.8 million for the
Company's share of joint venture inventory impairment charges; $23.1 million
for land deposit and capitalized preacquisition cost write-offs for abandoned
projects; and $65.8 million for goodwill impairment charges. The 2007 full
year results also included a noncash charge of $180.5 million, or $2.79 per
share, for the deferred tax asset valuation allowance discussed above.
Excluding the after-tax impairment and tax valuation charges totaling $13.15
per share, the Company's earnings for 2007 would have been $1.30 per share.**
Homebuilding Operations

Three Months Ended December 31,
2007 2006 % Change
(Dollars in thousands)
Homebuilding revenues:
California $602,457 $615,521 (2%)
Southwest (1) 166,156 294,408 (44%)
Southeast 164,995 253,678 (35%)
Total homebuilding revenues $933,608 $1,163,607 (20%)

Homebuilding pretax income (loss)(2):
California $(197,338) $(153,442) 29%
Southwest (1) (113,460) (16,897) 571%
Southeast (73,687) 26,423 (379%)
Corporate (794) 14,321 (106%)
Total homebuilding pretax
income (loss) $(385,279) $(129,595) 197%

Year Ended December 31,
2007 2006 % Change
(Dollars in thousands)
Homebuilding revenues:
California $1,484,047 $1,931,164 (23%)
Southwest (1) 793,455 853,653 (7%)
Southeast 611,331 955,653 (36%)
Total homebuilding revenues $2,888,833 $3,740,470 (23%)

Homebuilding pretax income (loss)(2):
California $(524,856) $45,914 (1,243%)
Southwest (1) (165,685) 41,195 (502%)
Southeast (150,808) 130,267 (216%)
Corporate (5,130) 3,436 (249%)
Total homebuilding pretax
income (loss) $(846,479) $220,812 (483%)

(1) Excludes the Company's San Antonio and Tucson divisions, which are
classified as discontinued operations.
(2) Homebuilding pretax income (loss) from continuing operations for the
three months and year ended Dec. 31, 2007 includes a total of
$393.0 million and $984.6 million, respectively, of pretax inventory,
joint venture, land option deposit, and goodwill impairment charges
recorded in the following segments: $196.5 million and $578.0 million,
respectively, in California, $114.4 million and $211.1 million,
respectively, in the Southwest, and $82.1 million and $195.5 million,
respectively, in the Southeast. Homebuilding pretax income (loss) for
the three months and year ended Dec. 31, 2006 includes a total of
$255.9 million and $334.9 million, respectively, of pretax inventory,
deposit, joint venture and goodwill impairment charges recorded in the
following segments: $203.7 million and $264.0 million, respectively,
in California, $41.3 million and $47.5 million, respectively, in the
Southwest, and $10.9 million and $23.4 million, respectively, in the
Southeast.

The Company generated a homebuilding pretax loss from continuing
operations for the 2007 fourth quarter of $385.3 million compared to a pretax
loss of $129.6 million in the year earlier period. The increase in pretax
loss was driven by a 20% decrease in homebuilding revenues to $933.6 million,
a negative 17.0% homebuilding gross margin percentage, a $36.3 million
increase in joint venture loss (to a loss of $71.0 million) and an
$18.4 million increase in other expense, which was partially offset by a
$5.3 million decrease in the Company's absolute level of selling, general and
administrative ("SG&A") expenses. The Company's homebuilding operations for
the 2007 fourth quarter included the following pretax charges from continuing
operations: a $276.2 million inventory impairment charge including
$180.1 million for land sold or held for sale; a $68.5 million charge related
to the Company's share of joint venture inventory impairments; an
$11.8 million charge related to the write-off of land option deposits and
capitalized preacquisition costs for abandoned projects; and a $36.4 million
goodwill impairment charge. The inventory impairment charges were included in
cost of sales while the land deposit and capitalized preacquisition cost
write-offs and goodwill impairment charges were included in other expense for
the quarter.
The 20% decrease in homebuilding revenues for the 2007 fourth quarter was
primarily attributable to a 23% decrease in new home deliveries (exclusive of
joint ventures) and, to a lesser extent, a 6% decrease in the Company's
consolidated average home price to $384,000. These decreases were partially
offset by a $90.2 million year-over-year increase in land sale revenues. Land
sale revenues from continuing operations totaled $108.5 million for the 2007
fourth quarter and represented the disposition of approximately 2,600 lots,
which were primarily in the Bay area, Phoenix, Tampa and Las Vegas, and which
exclude lots sold related to the Company's Tucson and San Antonio operations
which were classified as discontinued operations. Including our Tucson and
San Antonio divisions, total companywide land sale revenues for the 2007
fourth quarter totaled approximately $145.3 million related to the disposal of
approximately 5,900 lots that had a net book value of approximately
$328.7 million.

Three Months Ended Year Ended
December 31, % December 31, %
2007 2006 Change 2007 2006 Change
New homes delivered:
Southern California 712 687 4% 1,476 2,060 (28%)
Northern California 261 189 38% 713 643 11%
Total California 973 876 11% 2,189 2,703 (19%)
Arizona (1) 167 545 (69%) 1,029 1,400 (27%)
Texas (1) 235 334 (30%) 984 1,100 (11%)
Colorado 118 104 13% 388 466 (17%)
Nevada 25 - - 68 - -
Total Southwest 545 983 (45%) 2,469 2,966 (17%)
Florida 299 654 (54%) 1,314 2,710 (52%)
Carolinas 333 291 14% 946 1,008 (6%)
Total Southeast 632 945 (33%) 2,260 3,718 (39%)
Consolidated total 2,150 2,804 (23%) 6,918 9,387 (26%)

Unconsolidated joint ventures:
Southern California 146 49 198% 348 93 274%
Northern California 41 49 (16%) 123 118 4%
Illinois 3 40 (93%) 28 41 (32%)
Total unconsolidated joint
ventures 190 138 38% 499 252 98%

Discontinued operations 161 283 (43%) 634 1,124 (44%)

Total (including joint
ventures) 2,501 3,225 (22%) 8,051 10,763 (25%)

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

In California, new home deliveries (exclusive of joint ventures) increased
11% during the 2007 fourth quarter as compared to the prior year period.
Deliveries were up 4% in Southern California, reflecting an increase in order
activity in the region in the latter half of 2007 as compared to the year
earlier period. Deliveries increased 38% in Northern California and were
driven by an increase in order trends experienced throughout 2007 in this
region as compared to the extremely low level of orders generated in the year
earlier period.
In the Southwest, new home deliveries (exclusive of joint venture)
decreased 45% in the fourth quarter of 2007 compared to the year earlier
period. Deliveries in Arizona were down 69% in the 2007 fourth quarter
reflecting the decrease in order activity in 2007 combined with a significant
decrease in our backlog levels in the state due to high cancellation rates
experienced during the latter half of 2006. New home deliveries were off 30%
in Texas, driven primarily by a significant drop in demand in the Dallas
market, and to a lesser extent, a decline in deliveries from our Austin
operation. In Colorado, deliveries increased 13% for the 2007 fourth quarter
in what has continued to be a challenging housing market.
New home deliveries in the Company's Southeast region declined 33% during
the 2007 fourth quarter compared to the year earlier period. This decrease
was primarily due to a 54% year-over-year decline in Florida deliveries due to
weaker housing demand experienced throughout the state, which resulted in high
cancellation rates during 2007. In the Carolinas, deliveries increased 14%
driven primarily by a 43% increase in deliveries from our Raleigh division,
which was offset in part by a modest decline in deliveries from our Charlotte
operation during the 2007 fourth quarter as compared to the year earlier
period.

Three Months Ended Year Ended
December 31, % December 31, %
2007 2006 Change 2007 2006 Change
Average selling
prices of homes
delivered:
Southern California $575,000 $732,000 (21%) $651,000 $718,000 (9%)
Northern California 440,000 594,000 (26%) 498,000 701,000 (29%)
Total California 538,000 702,000 (23%) 601,000 714,000 (16%)
Arizona (1) 245,000 301,000 (19%) 304,000 299,000 2%
Texas (1) 254,000 243,000 5% 253,000 242,000 5%
Colorado 367,000 315,000 17% 355,000 312,000 14%
Nevada 309,000 - - 316,000 - -
Total Southwest 278,000 283,000 (2%) 292,000 280,000 4%
Florida 238,000 295,000 (19%) 267,000 279,000 (4%)
Carolinas 235,000 204,000 15% 232,000 193,000 20%
Total Southeast 237,000 267,000 (11%) 253,000 255,000 (1%)
Consolidated
(excluding joint
ventures) 384,000 408,000 (6%) 377,000 395,000 (5%)
Unconsolidated joint
ventures 652,000 587,000 11% 565,000 689,000 (18%)

Total continuing
operations
(including
joint ventures) $406,000 $417,000 (3%) $390,000 $403,000 (3%)

Discontinued
operations
(including joint
ventures) $205,000 $212,000 (3%) $200,000 $183,000 9%

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

During the 2007 fourth quarter, the Company's consolidated average home
price from continuing operations (excluding joint ventures) decreased 6% to
$384,000 compared to the year earlier period. The overall decrease was due
primarily to the level of incentives and discounts required to sell homes in
most of our markets partially offset by changes in the Company's geographic
mix during the 2007 fourth quarter as compared to the prior year period.
The Company's average home price in California for the 2007 fourth quarter
decreased 23% from the year earlier period driven by the increased use of
incentives and discounts and the following regional changes. In Southern
California our average home price was off 21% compared to the prior year
period primarily due to increased incentives and discounts required to
generate sales coupled with an increase in deliveries in the 2007 fourth
quarter from our more affordable Los Angeles and Bakersfield divisions. This
decrease in average price was offset in part by a slightly higher proportion
of deliveries generated from the Company's Orange County division, which
generally delivers more expensive homes (including the delivery of 6 homes
during the 2007 fourth quarter from a high-end coastal project where sales
prices were in the $6 million to $8 million range). In Northern California,
the average home price was down 26% as a result of the increased level of
incentives and discounts used to sell homes combined with a greater
distribution of deliveries from the Company's more affordable Sacramento and
Central Valley markets during the 2007 fourth quarter.
In the Southwest, the Company's average home price was off 2% from the
year earlier period. The Company's average price in Arizona decreased 19%
year-over-year reflecting increased incentives utilized in the 2007 fourth
quarter. In Texas, the average price increased 5% as compared to the year
earlier period reflecting an increase in our average home price in our Dallas
division due to a shift in product mix. The 17% increase in average price in
Colorado was also the result of a shift in product mix.
The Company's average home price in the Southeast for the 2007 fourth
quarter decreased 11% from the year earlier period. In Florida, the average
sales price was down 19% from the year ago period and primarily reflected the
increase in the level of incentives and discounts used to sell homes across
all of the Company's Florida markets, and to a lesser degree, geographic and
product mix shift within the state. The Company's average price was up 15% in
the Carolinas from the 2006 fourth quarter which primarily reflected a change
in product mix towards larger, more expensive homes.
Homebuilding Gross Margin Percentage
The Company's 2007 fourth quarter homebuilding gross margin percentage
from continuing operations (including land sales) was down year-over-year to a
negative 17.0% from a positive 4.1% in the prior year period. The 2007 fourth
quarter gross margin reflected a $276.2 million pretax inventory impairment
charge related to 62 projects, of which $96.1 million related to ongoing
projects while $180.1 million related to land or lots that have been or are
intended to be sold to third parties. These impairments related primarily to
projects located in California, Arizona, Florida and Nevada. Our gross margin
from home sales from continuing operations was $20.5 million, or 2.5%, for the
2007 fourth quarter versus $90.2 million, or 7.9%, for the year earlier
period. Excluding the housing inventory impairment charges of $96.1 million
and $140.1 million, respectively, for the three month periods ended Dec. 31,
2007 and 2006, the Company's 2007 fourth quarter gross margin from home sales
would have been $116.6 million, or 14.1%, versus $230.3 million, or 20.1% in
2006.** The 600 basis point decrease in the year-over-year gross margin
percentage as adjusted was driven primarily by lower gross margins in
California, Arizona and Florida. The lower gross margins in these markets
were driven by increased incentives and discounts resulting from weaker demand
during last year and this year related to decreased affordability, more
limited availability of mortgage credit, and an increased level of new and
existing homes available for sale in the marketplace. These factors have
created a much more competitive market for new homes, which has continued to
put downward pressure on home prices. Until market conditions stabilize, the
Company may continue to incur additional inventory impairment charges.
SG&A Expenses
The Company's SG&A expense rate from continuing operations (including
corporate G&A) for the 2007 fourth quarter increased 190 basis points to 11.7%
of homebuilding revenues compared to 9.8% for the same period last year. The
higher level of SG&A expenses as a percentage of homebuilding revenues was due
primarily to a lower level of revenues to spread these costs over as well as
due to a higher level of sales and marketing costs as a percentage of revenues
as a result of the Company's focus on generating sales in these challenging
market conditions and an increase in stock-based compensation expense. These
increases were partially offset by a reduction in personnel costs to better
align our overhead with the weaker housing market as well as due to a
reduction in the level of profit-based incentive compensation expense in 2007.
Homebuilding Joint Ventures
The Company recognized a $71.0 million loss from unconsolidated joint
ventures during the 2007 fourth quarter compared to loss of $34.7 million in
the year earlier period. The loss in the 2007 fourth quarter reflected a
$68.5 million pretax charge related to the Company's share of joint venture
inventory impairments related to 22 projects located primarily in California
and Arizona, and to a lesser degree Texas and Illinois. Excluding the
impairment charges, the Company incurred a joint venture loss of $2.5 million
for the 2007 fourth quarter,** of which approximately $3.7 million of loss was
generated from land development activity while approximately
$1.2 million of income was generated from new home deliveries. Deliveries
from the Company's unconsolidated homebuilding joint ventures included in
continuing operations totaled 190 new homes in the 2007 fourth quarter versus
138 last year.
Other Expense
Included in other expense for the three months ended Dec. 31, 2007 and
2006 are pretax charges of approximately $11.8 million and $25.9 million,
respectively, related to the write-off of option deposits and capitalized
preacquisition costs for abandoned projects. Also included in other expense
for the three months ended Dec. 31, 2007 and 2006 are goodwill impairment
charges of approximately $36.4 million and $6.2 million, respectively, related
to four and two divisions, respectively. These charges were partially offset
by a $2.8 million gain related to the early extinguishment of $24 million of
the Company's 6 1/2% senior notes due 2008 through open market purchases. The
Company continues to carefully evaluate each land purchase in its acquisition
pipeline in light of weakened market conditions and any decision to abandon
additional land purchase transactions could lead to further deposit and
capitalized preacquisition cost write-offs. Until market conditions stabilize,
the Company may also incur additional goodwill impairment charges.

Three Months Ended Year Ended
December 31, % December 31, %
2007 2006 Change 2007 2006 Change
Net new orders:
Southern California 243 293 (17%) 1,377 1,246 11%
Northern California 148 151 (2%) 735 444 66%
Total California 391 444 (12%) 2,112 1,690 25%
Arizona (1) 92 53 74% 593 720 (18%)
Texas (1) 134 183 (27%) 844 1,038 (19%)
Colorado 49 72 (32%) 363 404 (10%)
Nevada 15 7 114% 86 11 682%
Total Southwest 290 315 (8%) 1,886 2,173 (13%)
Florida 173 132 31% 837 1,131 (26%)
Carolinas 148 238 (38%) 862 994 (13%)
Total Southeast 321 370 (13%) 1,699 2,125 (20%)
Consolidated total 1,002 1,129 (11%) 5,697 5,988 (5%)

Unconsolidated joint ventures:
Southern California 58 62 (6%) 392 124 216%
Northern California 9 40 (78%) 110 118 (7%)
Illinois - 2 (100%) 16 27 (41%)
Total unconsolidated joint
ventures 67 104 (36%) 518 269 93%

Discontinued operations 84 165 (49%) 522 860 (39%)

Total (including joint
ventures) 1,153 1,398 (18%) 6,737 7,117 (5%)

Average number of selling communities
during the period:
Southern California 42 38 11% 39 36 8%
Northern California 27 22 23% 25 18 39%
Total California 69 60 15% 64 54 19%
Arizona (1) 18 22 (18%) 18 22 (18%)
Texas (1) 30 21 43% 25 21 19%
Colorado 10 14 (29%) 11 14 (21%)
Nevada 4 2 100% 4 1 300%
Total Southwest 62 59 5% 58 58 -
Florida 48 47 2% 47 48 (2%)
Carolinas 31 22 41% 27 20 35%
Total Southeast 79 69 14% 74 68 9%
Consolidated total 210 188 12% 196 180 9%

Unconsolidated joint ventures:
Southern California 17 5 240% 14 3 367%
Northern California 6 6 - 7 5 40%
Illinois 2 2 - 2 1 100%
Total unconsolidated joint
ventures 25 13 92% 23 9 156%

Discontinued operations 20 24 (17%) 25 23 9%

Total (including joint
ventures) 255 225 13% 244 212 15%

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

Net new orders companywide (excluding joint ventures) for the 2007 fourth
quarter decreased 11% to 1,002 new homes. The Company's consolidated
cancellation rate for the 2007 fourth quarter was 37% compared to 44% in the
2006 fourth quarter and 35% in the 2007 third quarter, while the Company's
cancellation rate as a percentage of beginning backlog for the 2007 fourth
quarter was 25% compared to 22% in the year earlier period. The overall
decrease in net new orders during the 2007 fourth quarter resulted primarily
from decreases in orders in Texas, the Carolinas and Colorado, and to a lesser
extent, a decline in California. These decreases were partially offset by
modest order increases in Florida and Arizona. Our absolute sales absorption
rates continue to reflect difficult housing conditions in most of our markets,
resulting from reduced housing affordability, higher mortgage interest rates,
and the growing levels of completed new and existing homes available for sale,
including an increasing level of foreclosure properties in the marketplace.
These conditions have been magnified by the tightening of available mortgage
credit for homebuyers, including increased pricing for jumbo loans and the
substantial reduction in availability of "Alt-A" mortgage products. All of
these conditions have resulted in a declining home price environment which has
contributed to an erosion of homebuyer confidence.
Net new orders in California (excluding joint ventures) for the 2007
fourth quarter decreased 12% from the 2006 fourth quarter on a 15% higher
community count. Net new home orders were down 17% year-over-year in Southern
California on an 11% higher average community count. The decrease was due to
weaker overall housing demand and a slight increase in the cancellation rate
to 41% in the 2007 fourth quarter, compared to 36% in the 2006 fourth quarter
and 37% in the 2007 third quarter. Net new orders were down 2% year-over-year
in Northern California on a 23% higher community count. The Company's
cancellation rate in Northern California of 38% for the 2007 fourth quarter
was up meaningfully from 25% in the year earlier period and up modestly from
the 34% cancellation rate experienced in the 2007 third quarter.
Net new orders in the Southwest (excluding joint ventures) for the 2007
fourth quarter were down 8% year-over-year. While still at depressed levels,
net new home orders in Arizona were up 74% on an 18% lower average community
count, which was primarily the result of a decrease in the level of
cancellations in the 2007 fourth quarter as compared to the year earlier
period. In particular, the Company's cancellation rate in Phoenix, while down
sharply from the 2006 fourth quarter rate of 84%, still remains high relative
to historical levels at 37% for the 2007 fourth quarter. In Texas, net new
orders were down 27% on a 43% higher average community count reflecting
weakness experienced in the Dallas market over the past year and softer demand
experienced in the Austin market over the last few quarters. In Colorado, net
new orders were down 32% on a 29% lower community count. In Nevada, the
housing market continues to be sluggish as demonstrated by the marginal level
of new home orders generated from 4 communities in the Company's Las Vegas
division.
In the Southeast, net new orders (excluding joint ventures) decreased 13%
during the 2007 fourth quarter from the year earlier period. Despite the 31%
increase in net new orders in Florida during the 2007 fourth quarter, the
Florida market continues to experience erosion in buyer demand, a tightening
in mortgage credit underwriting standards and an increased level of available
homes on the market. Our cancellation rate in Florida decreased to 38% for
the 2007 fourth quarter which was down substantially from 64% a year ago, and
down from 49% in the 2007 third quarter. Net new orders in the Carolinas were
off 38% on a 41% higher community count as a result of a more recent slowing
in housing demand in these markets.

At December 31, %
Backlog (in homes): 2007 2006 Change
Southern California 176 224 (21%)
Northern California 127 99 28%
Total California 303 323 (6%)
Arizona (1) 194 630 (69%)
Texas (1) 301 441 (32%)
Colorado 123 148 (17%)
Nevada 29 11 164%
Total Southwest 647 1,230 (47%)
Florida 220 697 (68%)
Carolinas 109 193 (44%)
Total Southeast 329 890 (63%)
Consolidated total 1,279 2,443 (48%)

Unconsolidated joint ventures:
Southern California 94 128 (27%)
Northern California 24 43 (44%)
Illinois 5 18 (72%)
Total unconsolidated joint ventures 123 189 (35%)

Discontinued operations 44 201 (78%)

Total (including joint ventures) 1,446 2,833 (49%)

Backlog (estimated dollar value in
thousands):
Southern California $106,648 $187,062 (43%)
Northern California 57,165 59,392 (4%)
Total California 163,813 246,454 (34%)
Arizona (1) 50,091 215,653 (77%)
Texas (1) 92,030 111,425 (17%)
Colorado 44,311 57,867 (23%)
Nevada 8,160 4,086 100%
Total Southwest 194,592 389,031 (50%)
Florida 52,787 206,313 (74%)
Carolinas 31,476 43,042 (27%)
Total Southeast 84,263 249,355 (66%)
Consolidated total 442,668 884,840 (50%)

Unconsolidated joint ventures:
Southern California 60,255 63,503 (5%)
Northern California 15,773 31,517 (50%)
Illinois 5,978 10,700 (44%)
Total unconsolidated joint ventures 82,006 105,720 (22%)

Discontinued operations 8,099 40,095 (80%)

Total (including joint ventures) $532,773 $1,030,655 (48%)

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

The dollar value of the Company's backlog (excluding joint ventures)
decreased 50% from the year earlier period to $442.7 million at Dec. 31, 2007,
reflecting a slowdown in order activity and increased cancellation rates
experienced during 2007 as well as a shorter average escrow period for home
sales.
At December 31,
%
2007 2006 Change
Building sites owned or controlled:
Southern California 7,235 13,096 (45%)
Northern California 4,579 6,976 (34%)
Total California 11,814 20,072 (41%)
Arizona (1) 2,997 8,269 (64%)
Texas (1) 3,370 4,718 (29%)
Colorado 771 1,078 (28%)
Nevada 2,390 3,037 (21%)
Total Southwest 9,528 17,102 (44%)
Florida 8,462 12,226 (31%)
Carolinas 3,885 4,177 (7%)
Illinois 62 179 (65%)
Total Southeast 12,409 16,582 (25%)

Discontinued operations 1,007 6,935 (85%)

Total (including joint
ventures) 34,758 60,691 (43%)

Building sites owned 21,371 31,275 (32%)
Building sites optioned or subject
to contract 5,619 9,282 (39%)
Joint venture lots 6,761 13,199 (49%)
Total continuing operations 33,751 53,756 (37%)
Discontinued operations 1,007 6,935 (85%)
Total (including joint ventures) 34,758 60,691 (43%)

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

Total building sites owned and controlled as of Dec. 31, 2007 decreased
43% from the year earlier period, which reflects the Company's efforts to
generate cash and reduce its real estate inventories and to better align its
land supply with the current level of new housing demand. These efforts were
furthered by the sale of approximately 5,900 lots during the 2007 fourth
quarter, including the sale of substantially all of our Tucson and San Antonio
assets, and the Company's decision to abandon certain land option contracts.

At December 31,
%
2007 2006 Change
Completed and unsold homes:
Consolidated (1) 695 699 (1%)
Joint ventures (1) 45 9 400%
Total continuing operations 740 708 5%
Discontinued operations 54 101 (47%)
Total 794 809 (2%)

Spec homes under construction:
Consolidated (1) 1,089 1,380 (21%)
Joint ventures (1) 368 490 (25%)
Total continuing operations 1,457 1,870 (22%)
Discontinued operations 31 179 (83%)
Total 1,488 2,049 (27%)

Total homes under construction
(including specs):
Consolidated (1) 2,085 3,335 (37%)
Joint ventures (1) 440 675 (35%)
Total continuing operations 2,525 4,010 (37%)
Discontinued operations 64 331 (81%)
Total 2,589 4,341 (40%)

(1) Texas and Arizona exclude the San Antonio and Tucson divisions, which
are classified as discontinued operations.

The Company's number of completed and unsold homes from continuing
operations (excluding joint ventures) as of Dec. 31, 2007 increased 22% from
September 30, 2007 to 695 homes, but decreased 1% compared to the peak at
Dec. 31, 2006 as a result of the Company's efforts to move completed spec
homes. The number of homes under construction from continuing operations
(exclusive of joint ventures) as of Dec. 31, 2007 decreased 37% from the year
earlier period to 2,085 units in response to the Company's increased focus on
managing the level of its speculative inventory and its desire to better match
new construction starts with lower sales volume.
Financial Services
In the 2007 fourth quarter, the Company's financial services subsidiary
generated pretax income of approximately $540,000 compared to pretax income of
$3.9 million in the year earlier period. The decrease in profitability was
driven primarily by a 27% lower level of loan sales partially offset by an
increase in margins (in basis points) on loans sold. The decrease in loan
sales was primarily the result of a decrease in new home deliveries in the
markets in which it operates.
For the 2007 fourth quarter, financial services joint venture income,
which is derived from mortgage financing joint ventures with third party
financial institutions operating in conjunction with the Company's
homebuilding divisions in the Carolinas, and Tampa, Orlando and Southwestern
Florida, was down 43% to $270,000. The lower level of joint venture income
was due to the lower level of new home deliveries in 2007 combined with the
transition of the Company's Colorado operations during 2006 from a joint
venture arrangement to its wholly owned financial services subsidiary.
Income Taxes
As a result of the continued downturn in the housing market and the
uncertainty as to its magnitude and length, the Company recorded a valuation
allowance on its net deferred tax asset in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes." The
valuation allowance resulted in a $180.5 million noncash charge in the 2007
fourth quarter. To the extent that the Company generates eligible taxable
income in the future to utilize the tax benefits of the related deferred tax
assets, the Company will be able to reduce its effective tax rate by reducing
the valuation allowance. Conversely, any future operating losses generated by
the Company would increase the deferred tax valuation allowance and adversely
impact our income tax provision.
Discontinued Operations
During the fourth quarter of 2007, the Company sold substantially all of
its Tucson and San Antonio assets. The Company is actively marketing the
remaining assets of these divisions for sale and it is the Company's intention
to have exited these markets within the next year. The results of operations
of the Company's Tucson and San Antonio divisions have been classified as
discontinued operations in accordance with Statement of Financial Accounting
Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets," and prior periods have been reclassified to conform with current year
presentation.
Net loss from discontinued operations for the three months ended Dec. 31,
2007 and 2006 was $26.5 million and $24.1 million, respectively, of which
$19.6 million for the 2007 fourth quarter related to the loss on the disposal.
Discontinued operations included homebuilding revenues of $68.7 million and
$58.5 million for the three months ended Dec. 31, 2007 and 2006, respectively,
and $182.1 million and $198.7 million for the years ended Dec. 31, 2007 and
2006, respectively. These divisions generated pretax losses of $41.5 million
and $37.8 million for the fourth quarters of 2007 and 2006, respectively, and
pretax losses of $112.0 million and $35.3 million, respectively, for the years
then ended.
During the fourth quarter and year ended Dec. 31, 2007, the Company
recorded the following pretax charges related to its discontinued operations:
$31.3 million and $86.7 million, respectively, of inventory impairment
charges; $9.3 million and $9.5 million, respectively, of charges related to
the Company's share of joint venture inventory impairments; and approximately
$0 and $524,000, respectively, of charges related to the write-off of land
option deposits and capitalized preacquisition costs for abandoned projects.
During the fourth quarter and year ended Dec. 31, 2006, the Company
recorded the following pretax charges related to its discontinued operations:
$21.1 million and $21.2 million, respectively, of inventory impairment
charges; approximately $414,000 and $1.1 million, respectively, of charges
related to the write-off of land option deposits and capitalized
preacquisition costs for abandoned projects; and $13.3 million related to
goodwill impairment charges for the fourth quarter and year ended Dec. 31,
2007.
Earnings Conference Call
A conference call to discuss the Company's 2007 fourth quarter and fiscal
year earnings will be held at 11:00 am Eastern time tomorrow, Tuesday,
February 5, 2008. The call will be broadcast live over the Internet and can
be accessed through the Company's website at
standardpacifichomes.com/ir. The call will also be accessible via
telephone by dialing (866) 237-3252 (domestic) or (719) 457-1018
(international); Passcode: 979199. The entire audio transmission with the
synchronized slide presentation will also be available on our website for
replay within 2 to 3 hours following the live broadcast, and can be accessed
by dialing (888) 348-4629 (domestic) or (719) 884-8882 (international);
Passcode: 979199.
About Standard Pacific
Standard Pacific, one of the nation's largest homebuilders, has built
homes for more than 101,000 families during its 41-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, Standard Pacific Mortgage, Inc.,
SPH Home Mortgage, 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: www.standardpacifichomes.com.
This news release contains forward-looking statements. These statements
include but are not limited to statements regarding: our expected first
quarter tax refund; that housing market conditions will continue to decline in
2008 resulting in a decrease in Company deliveries; our plan to cut new home
starts, new community openings and spends for land acquisition and site
development costs in 2008; our plan to continue to balance overhead to sales
levels; that we expect to generate positive cash flow during the year even
after paying off the balance of our 2008 senior notes; that we may make open
market purchases of our 2008 senior notes; our intent to commence discussions
with our bank group to amend our loan covenants; our evaluation of land
purchases and the potential for further deposit and capitalized preacquisition
cost write-offs; the potential for further goodwill impairment charges; the
potential impact of future earnings or losses on our deferred tax valuation
allowance; additional joint venture loan remargining obligations; the extent
to which we expect to exit additional joint ventures; our strategy of
balancing margins, volume and cash flow generation; our focus on managing
starts and other cash outflows; our efforts to right-size the Company; the
potential need for additional inventory impairment charges; orders and
backlog; and housing market conditions. Forward-looking statements are based
on our current expectations or beliefs regarding future events or
circumstances, and you should not place undue reliance on these statements.
Such statements involve known and unknown risks, uncertainties, assumptions
and other factors -- many of which are out of the Company's control and
difficult to forecast -- 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, interest rates, the cost and
availability of mortgage financing, and stock market, home and land
valuations; the impact on economic conditions of terrorist attacks or the
outbreak or escalation of armed conflict involving the United States; the cost
and availability of suitable undeveloped land, building materials and labor;
the cost and availability of construction financing and corporate debt and
equity capital; the demand for and affordability of single-family homes; the
supply of housing for sale; cancellations of purchase contracts by homebuyers;
the cyclical and competitive nature of the Company's business; governmental
regulation, including the impact of "slow growth" or similar initiatives;
delays in the land entitlement process, development, construction, or the
opening of new home communities; adverse weather conditions and natural
disasters; environmental matters; risks relating to the Company's mortgage
banking operations, including hedging activities; future business decisions
and the Company's ability to successfully implement the Company's operational
and other strategies; litigation and warranty claims; and other risks
discussed in the Company's filings with the Securities and Exchange
Commission, including in the Company's Annual Report on Form 10-K for the year
ended Dec. 31, 2006 and subsequent Quarterly Reports on Form 10-Q. The
Company assumes no, and hereby disclaims any, obligation to update any of the
foregoing or any other forward-looking statements. The Company nonetheless
reserves the right to make such updates from time to time by press release,
periodic report or other method of public disclosure without the need for
specific reference to this press release. No such update shall be deemed to
indicate that other statements not addressed by such update remain correct or
create an obligation to provide any other updates.
* Excludes the Company's unconsolidated joint ventures and the Company's
Tucson and San Antonio operations, which are included in discontinued
operations.

** Please see "Reconciliation of Non-GAAP Financial Measures" below.

STANDARD PACIFIC CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended December 31,
2007 2006 % Change

(Dollars in thousands, except
per share amounts)

Homebuilding:
Home sale revenues $825,151 $1,145,372 (28%)
Land sale revenues 108,457 18,235 495%
Total revenues 933,608 1,163,607 (20%)
Cost of home sales (804,670) (1,055,192) (24%)
Cost of land sales (287,798) (60,955) 372%
Total cost of sales (1,092,468) (1,116,147) (2%)
Gross margin (158,860) 47,460 (435%)
Gross margin % (17.0%) 4.1%
Selling, general and
administrative expenses (109,211) (114,492) (5%)
Income (loss) from unconsolidated
joint ventures (70,976) (34,710) 104%
Other expense (46,232) (27,853) 66%
Homebuilding pretax
income (loss) (385,279) (129,595) 197%
Financial Services:
Revenues 4,662 8,721 (47%)
Expenses (4,122) (4,854) (15%)
Income from unconsolidated
joint ventures 270 476 (43%)
Other income 110 274 (60%)
Financial services pretax
income (loss) 920 4,617 (80%)
Income (loss) from continuing
operations before taxes (384,359) (124,978) 208%
(Provision) benefit for income taxes (30,022) 50,635 (159%)
Income (loss) from continuing
operations (414,381) (74,343) 457%
Loss from discontinued operations,
net of income taxes (6,966) (24,063) (71%)
Loss from disposal of discontinued
operations, net of income taxes (19,550) - -
Net income (loss) $(440,897) $(98,406) 348%

Basic earnings (loss) per share:
Continuing operations $(6.39) $(1.16) 451%
Discontinued operations (0.41) (0.37) 11%
Basic earnings (loss) per share $(6.80) $(1.53) 344%

Diluted earnings (loss) per share:
Continuing operations $(6.39) $(1.16) 451%
Discontinued operations (0.41) (0.37) 11%
Diluted earnings (loss) per share $(6.80) $(1.53) 344%

Weighted average common shares
outstanding:
Basic 64,849,786 64,363,447 1%
Diluted 64,849,786 64,363,447 1%

Cash dividends per share $- $0.04 (100%)

Year Ended December 31,
2007 2006 % Change

(Dollars in thousands, except
per share amounts)

Homebuilding:
Home sale revenues $2,607,824 $3,710,059 (30%)
Land sale revenues 281,009 30,411 824%
Total revenues 2,888,833 3,740,470 (23%)
Cost of home sales (2,520,157) (2,950,922) (15%)
Cost of land sales (568,539) (76,179) 646%
Total cost of sales (3,088,696) (3,027,101) 2%
Gross margin (199,863) 713,369 (128%)
Gross margin % (6.9%) 19.1%
Selling, general and administrative
expenses (387,981) (441,960) (12%)
Income (loss) from unconsolidated
joint ventures (190,025) (3,870) 4,810%
Other expense (68,610) (46,727) 47%
Homebuilding pretax
income (loss) (846,479) 220,812 (483%)
Financial Services:
Revenues 16,677 24,866 (33%)
Expenses (16,045) (19,438) (17%)
Income from unconsolidated joint
ventures 1,050 1,911 (45%)
Other income 611 872 (30%)
Financial services pretax
income (loss) 2,293 8,211 (72%)
Income (loss) from continuing
operations before taxes (844,186) 229,023 (469%)
(Provision) benefit for income taxes 149,003 (82,930) (280%)
Income (loss) from continuing
operations (695,183) 146,093 (576%)
Loss from discontinued operations,
net of income taxes (52,540) (22,400) 135%
Loss from disposal of discontinued
operations, net of income taxes (19,550) - -
Net income (loss) $(767,273) $123,693 (720%)

Basic earnings (loss) per share:
Continuing operations $(10.74) $2.24 (579%)
Discontinued operations (1.11) (0.34) 226%
Basic earnings (loss) per share $(11.85) $1.90 (724%)

Diluted earnings (loss) per share:
Continuing operations $(10.74) $2.19 (590%)
Discontinued operations (1.11) (0.34) 226%
Diluted earnings (loss) per share $(11.85) $1.85 (741%)

Weighted average common shares
outstanding:
Basic 64,750,482 65,187,469 (1%)
Diluted 64,750,482 66,756,286 (3%)

Cash dividends per share $0.12 $0.16 (25%)

SELECTED FINANCIAL DATA

Three Months Ended
December 31,
2007 2006
(Dollars in thousands)

Net income (loss) $(440,897) $(98,406)
Net cash provided by (used in)
operating activities $347,983 $216,207
Net cash provided by (used in)
investing activities $(39,712) $(24,888)
Net cash provided by (used in)
financing activities $(103,617) $(171,594)
Adjusted Homebuilding EBITDA(1) $77,846 $165,750
Homebuilding SG&A as a percentage of
homebuilding revenues 11.7% 9.8%
Homebuilding interest incurred $34,814 $39,736
Homebuilding interest capitalized to
inventories owned $30,991 $37,698
Homebuilding interest capitalized to
investments in and advances to
unconsolidated joint ventures $3,823 $2,038
Ratio of LTM Adjusted Homebuilding
EBITDA to homebuilding interest
incurred 2.2x 4.8x

(1) Adjusted Homebuilding EBITDA means net income (loss) (plus cash
distributions of income from unconsolidated joint ventures) before
(a) income taxes, (b) expensing of previously capitalized interest
included in cost of sales, (c) impairment charges, (d) homebuilding
depreciation and amortization, (e) amortization of stock-based
compensation, (f) income (loss) from unconsolidated joint ventures
and (g) income (loss) from financial services subsidiary. Other
companies may calculate Adjusted Homebuilding EBITDA (or similarly
titled measures) differently. We believe Adjusted Homebuilding
EBITDA information is useful to investors as one measure of the
Company's ability to service debt and obtain financing. However, it
should be noted that Adjusted Homebuilding EBITDA is not a U.S.
generally accepted accounting principles ("GAAP") financial measure.
Due to the significance of the GAAP components excluded, Adjusted
Homebuilding EBITDA should not be considered in isolation or as an
alternative to net income, cash flow from operations or any other
operating or liquidity performance measure prescribed by GAAP. For
the three months and year ended Dec. 31, 2006 and 2007, EBITDA from
continued and discontinued operations was calculated as follows:

Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(Dollars in thousands)

Net income (loss) $(440,897) $(98,406) $(767,273) $123,693
Add:
Cash distributions of income
from unconsolidated
joint ventures 631 9,183 16,716 75,422
Provision (benefit) for
income taxes 15,000 (64,390) (188,954) 70,040
Expensing of previously
capitalized interest
included
in cost of sales 55,337 33,757 131,182 88,933
Impairment charges 355,707 249,156 880,898 328,032
Homebuilding depreciation and
amortization 2,229 2,162 7,695 7,163
Amortization of stock-based
compensation 10,339 3,942 20,150 16,539
Less:
Income (loss) from
unconsolidated joint
ventures (80,040) (34,212) (198,674) (1,880)
Income (loss) from financial
services subsidiary 540 3,866 632 5,428

Adjusted Homebuilding EBITDA $77,846 $165,750 $298,456 $706,274

The table set forth below reconciles net cash provided by (used in)
operating activities, from continued and discontinued operations, calculated
and presented in accordance with GAAP, to Adjusted Homebuilding EBITDA:
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(Dollars in thousands)

Net cash provided by (used in)
operating activities $347,983 $216,207 $655,558 $(290,580)
Add:
Provision (benefit) for income
taxes 15,000 (64,390) (188,954) 70,040
Deferred tax valuation
allowance (180,480) - (180,480) -
Expensing of previously
capitalized interest included
in cost of sales 55,337 33,757 131,182 88,933
Excess tax benefits from share-
based payment arrangements - 257 1,498 2,697
Gain on early extinguishment of
debt 2,765 - 2,765 -

Less:
Income (loss) from financial
services subsidiary 540 3,866 632 5,428
Depreciation and amortization
from financial services
subsidiary 239 152 703 582
Loss on sale of property and
equipment 1,439 - 1,439 -

Net changes in operating assets
and liabilities:
Trade and other receivables (45,730) 20,422 (45,083) 2,739
Mortgage loans held for sale 71,388 150,253 (99,618) 125,123
Inventories-owned (358,366) (265,927) (399,325) 610,944
Inventories-not owned (784) (13,030) (10,449) (89,929)
Deferred income taxes (5,757) 120,178 135,741 126,587
Other assets 163,788 (30,815) 245,723 (189)
Accounts payable 17,874 (4,029) 13,105 5,638
Accrued liabilities (2,954) 6,885 39,567 60,281

Adjusted Homebuilding EBITDA $77,846 $165,750 $298,456 $706,274

STANDARD PACIFIC CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

December 31,
2007 2006
ASSETS (unaudited)
Homebuilding:
Cash and equivalents $219,141 $17,356
Trade and other receivables 28,599 72,654
Inventories:
Owned 2,059,235 3,101,636
Not owned 109,757 199,757
Investments in and advances to
unconsolidated joint ventures 293,967 301,635
Deferred income taxes 143,995 185,268
Goodwill and other intangibles, net 35,597 90,387
Other assets 300,135 57,128
3,190,426 4,025,821
Financial Services:
Cash and equivalents 12,413 14,727
Mortgage loans held for sale 155,340 254,958
Mortgage loans held for investment 10,973 -
Other assets 11,847 8,360
190,573 278,045
Assets of discontinued operations 19,727 199,075
Total Assets $3,400,726 $4,502,941

LIABILITIES AND STOCKHOLDERS' EQUITY
Homebuilding:
Accounts payable $95,190 $102,767
Accrued liabilities 280,513 277,154
Liabilities from inventories not owned 43,007 82,999
Revolving credit facility 90,000 289,500
Trust deed and other notes payable 34,714 52,499
Senior notes payable 1,400,344 1,449,245
Senior subordinated notes payable 249,350 149,232
2,193,118 2,403,396
Financial Services:
Accounts payable and other liabilities 5,023 4,404
Mortgage credit facilities 164,172 250,907
169,195 255,311
Liabilities of discontinued operations 5,221 10,577
Total Liabilities 2,367,534 2,669,284

Minority Interests 38,201 69,287

Stockholders' Equity:
Preferred stock, $0.01 par value;
10,000,000 shares authorized; none
issued - -
Common stock, $0.01 par value;
200,000,000 shares authorized;
72,689,595(1) and 64,422,548
shares outstanding, respectively 727 644
Additional paid-in capital 340,067 323,099
Retained earnings 666,880 1,446,043
Accumulated other comprehensive loss,
net of tax (12,683) (5,416)
Total Stockholders' Equity 994,991 1,764,370
Total Liabilities and Stockholders'
Equity $3,400,726 $4,502,941

(1) At Dec. 31, 2007, shares outstanding include 7,839,809 shares issued
under a share lending facility related to our 6% convertible senior
subordinated notes issued on September 28, 2007.

BALANCE SHEET DATA
(Dollars in thousands, except per share amounts)

At December 31,
2007 2006

Stockholders' equity per share (1) $15.34 $27.39
Ratio of total debt to total book
capitalization(2) 66.2% 55.5%
Ratio of adjusted net homebuilding
debt to total book capitalization(3) 61.1% 52.2%
Ratio of total debt to LTM adjusted
homebuilding EBITDA(2) 6.5x 3.1x
Ratio of adjusted net homebuilding
debt to LTM adjusted homebuilding
EBITDA(3) 5.2x 2.7x
Homebuilding interest capitalized in
inventories owned $126,158 $129,734
Homebuilding interest capitalized as
a percentage of inventories owned 6.1% 4.0%

(1) At Dec. 31, 2007, shares outstanding exclude 7,839,809 shares issued
under a share lending facility related to our 6% convertible senior
subordinated notes issued on September 28, 2007.

(2) Total debt at Dec. 31, 2007 and 2006 includes $164.2 million and
$250.9 million, respectively, of indebtedness of the Company's
financial services subsidiary and $11.4 million and $13.4 million,
respectively, of indebtedness included in liabilities from
inventories not owned.

(3) Adjusted net homebuilding debt excludes indebtedness included in
liabilities from inventories not owned, indebtedness of the Company's
financial services subsidiary and additionally reflects the offset of
cash and equivalents in excess of $5 million. We believe that the
adjusted net homebuilding debt to total book capitalization and
adjusted net homebuilding debt to LTM adjusted homebuilding EBITDA
ratios are useful to investors as a measure of the Company's ability
to obtain financing. These are non-GAAP ratios and other companies
may calculate these ratios differently. For purposes of the ratio of
adjusted net homebuilding debt to total book capitalization, total
book capitalization is adjusted net homebuilding debt plus
stockholders' equity. Adjusted net homebuilding debt is calculated as
follows:

At December 31,
2007 2006
(Dollars in thousands)

Total consolidated debt $1,950,012 $2,204,937
Less:
Indebtedness included in liabilities from
inventories not owned 11,432 13,405
Financial services indebtedness 164,172 250,907
Homebuilding cash in excess of
$5 million 214,148 12,376

Adjusted net homebuilding debt $1,560,260 $1,928,249

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ***

The tables set forth below reconcile the Company's earnings (loss) for
2007 excluding the after-tax impairment and tax valuation charges:

Three Months Ended December 31, 2007

Net Income
(Loss) Shares EPS

(Dollars in thousands, except per
share amounts)

Net income (loss) $(440,897) 64,849,786 $(6.80)
Impairment charges, after tax 265,211 64,849,786 4.09
Deferred tax valuation allowance 180,480 64,849,786 2.78
Net income (loss), as adjusted $4,794 64,849,786 $0.07

Year Ended December 31, 2007

Net Income
(Loss) Shares EPS

(Dollars in thousands, except per
share amounts)

Net income (loss) $(767,273) 64,750,482 $(11.85)
Impairment charges, after tax 670,743 64,750,482 10.36
Deferred tax valuation allowance 180,480 64,750,482 2.79
Net income (loss), as adjusted $83,950 64,750,482 $1.30

The tables set forth below reconcile the Company's gross margin from home
sales for the three months ended Dec. 31, 2007 and 2006, excluding pretax
impairment charges:

Three Months Ended December 31,

Gross Gross
margin margin
2007 % 2006 %

(Dollars in thousands)

Home sale revenues $825,151 $1,145,372
Cost of home sales (804,670) (1,055,192)
Gross margin from home sales 20,481 2.5% 90,180 7.9%

Add: Housing inventory impairment
charges 96,079 140,144
Gross margin from home sales, as
adjusted $116,560 14.1% $230,324 20.1%

The tables set forth below reconcile the Company's income (loss) from
homebuilding and land development joint ventures for the three months ended
Dec. 31, 2007, excluding pre-tax impairment charges:
Three Months Ended December 31, 2007

Land
Homebuilding Development Total

(Dollars in thousands)

Loss from joint ventures $(22,119) $(48,858) $(70,977)
Joint venture inventory impairment
charges 23,311 45,203 68,514
Income (loss) from joint ventures, as
adjusted $1,192 $(3,655) $(2,463)

*** We believe that the measures described above which exclude the effect
of impairment and tax valuation charges are useful to investors as
they provide investors with a perspective on the underlying operating
performance of the business by isolating the impact of charges related
to inventory impairments, land deposit and capitalized preacquisition
cost writeoffs for abandoned projects, goodwill impairment charges and
the tax valuation allowance. However, it should be noted that such
measures are not GAAP financial measures. Due to the significance of
the GAAP components excluded, such measures should not be considered
in isolation or as an alternative to operating performance measures
prescribed by GAAP.

SOURCE Standard Pacific

Andrew H. Parnes, Executive Vice President-Finance & CFO, +1-949-789-1616,
aparnes@stanpac.com, or Lloyd H. McKibbin, Vice President & Treasurer,
+1-949-789-1603, lmckibbin@stanpac.com, both of Standard Pacific