Releases

William Lyon Homes Reports Third Quarter 2019 Results

NEWPORT BEACH, Calif., Nov. 6, 2019 /PRNewswire/ -- William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for its third quarter ended September 30, 2019.

2019 Third Quarter Highlights

  • Net income available to common stockholders of $9.5 million, or $0.24 per diluted share compared to $26.6 million, or $0.68 per diluted share in the prior year
  • Adjusted net income available to common stockholders of $16.1 million, or $0.41 per diluted share compared to $26.6 million, or $0.68 per diluted share in the prior year; adjusted for
    • $1.4 million loss on extinguishment of debt (net of tax)
    • $5.2 million one-time inventory charge (net of tax)
  • Pre-tax income of $22.3 million and adjusted pre-tax income of $30.8 million
  • Home sales revenue of $464.8 million, down 13%
  • New home deliveries of 995 homes, down 6%
  • Homebuilding gross margin percentage of 15.1%
    • Gross margin percentage, excluding one-time inventory charge, of 16.5%
    • Adjusted gross margin percentage, excluding capitalized interest, of 20.6%
  • Average sales price (ASP) of new homes delivered of $467,100, compared to $506,700
  • Net new home orders of 940, down 6%
  • Average sales locations of 114
  • Units in backlog of 1,368
  • SG&A percentage of 11.9%, compared to 11.0%
  • Adjusted EBITDA of $41.7 million

Matthew R. Zaist, President and Chief Executive Officer, stated, "We are pleased with our financial results for the quarter with adjusted net income of $16.1 million, or $0.41 per diluted share.  Our strong bottom line results were driven by our homebuilding gross margins, excluding the one-time inventory charge, of 16.5%, and the profitability of our ancillary operations."  Mr. Zaist continued, "Income from our financial services segment was $3.7 million, above our expectations, as the team performed exceptionally well at fully integrating our wholly-owned mortgage platform.  Additionally, we recorded our first multi-family apartment sale from our recently launched mixed-use redevelopment platform, which we closed on in the third quarter for a profit of $4.3 million."

Operating Results
Home sales revenue for the third quarter of 2019 was $464.8 million, as compared to $533.5 million in the year-ago period, a decrease of 13%.  The decrease was driven by a 6% decrease in the number of homes closed in 2019, as compared to the prior year period, as well as a decrease in ASP from $506,700 in the third quarter of 2018, to approximately $467,100 in 2019.  

Net new home orders for the quarter were 940, a decrease of 6% from 1,001 in the third quarter of 2018.  Our average community count decreased 2% to 114 averages sales location during the third quarter of 2019, compared to 116 during the third quarter of 2018.  Overall, our monthly absorption rate for the quarter was 2.7 sales per community, compared to 2.9 sales per community in the third quarter of last year.  Our monthly absorption pace during the quarter was 2.8 in July, 2.5 in August and 2.8 in September. 

Adjusted gross margin percentage was 20.6% during the quarter, excluding capitalized interest and a one-time inventory charge of $6.6 million ($5.2 million, net of tax), related to costs associated with certain previously closed out projects. 

Sales and marketing expense during the third quarter of 2019 was 5.4% of homebuilding revenue.  This was consistent with the prior year quarter and reflected 10 basis points of sequential improvement from the second quarter.  General and administrative expenses increased to 6.5% of homebuilding revenue, compared to 5.6% in the year-ago quarter.  The increase in general and administrative expense percentage over the prior year is primarily due to lower revenue as our general and administrative dollars were consistent with the prior year.  

Pre-tax income was $22.3 million and adjusted pre-tax income was $30.8 million. Provision for income tax was $4.8 million, for an effective tax rate of 21.5%, compared to a provision of $9.0 million, or 22.0%, in the prior year.  Net income attributable to non-controlling interest was $8.0 million during the third quarter, as compared to $5.3 million in the prior year. 

Financial Services
In July 2019, we announced the formation of ClosingMark Financial Group, LLC, a wholly-owned subsidiary operating a full suite of financial services offerings, including title agency, settlement, and mortgage services for our homebuyers and other retail customers, which operates as ClosingMark Home Loans.  During the third quarter, we completed the integration of our previous mortgage joint venture operations and loan pipeline into this platform under the ClosingMark Home Loans brand.

During the quarter, our wholly-owned financial services operations recorded income of $3.4 million and our unconsolidated mortgage joint ventures recorded income of $0.3 million.  Going forward, we have ceased further business operations out of our unconsolidated mortgage joint ventures and would expect to benefit from improved financial performance out of the financial services segment for the fourth quarter based on operating efficiencies and earnings capture on an exclusively wholly-owned basis.

Senior Notes Issuance
On July 9, 2019, we closed on a $300 million Senior Notes offering at a coupon of 6.625%.  The proceeds from the offering were used to redeem the majority of the $350 million 7% Senior Notes due 2022 on August 15, 2019.  In conjunction with the transaction, the company recorded a loss on extinguishment of debt, net, of $1.4 million.    

Balance Sheet Update
At quarter end, cash and cash equivalents totaled $42.1 million, owned real estate inventories totaled $2.3 billion, total assets were $3.0 billion and total equity was $1.0 billion. Total debt to book capitalization was 57.7%, and net debt to net book capitalization was 56.9% at September 30, 2019, compared to 56.6% and 55.9% at December 31, 2018, respectively.

Conference Call Postponement
The Company is postponing its previously scheduled conference call, which was scheduled for today, Wednesday, November 6, 2019 due to a forthcoming announcement.  It now expects to hold the conference call to discuss its third quarter 2019 results on a later date to be announced.

About William Lyon Homes
William Lyon Homes is one of the largest Western U.S. regional homebuilders. Headquartered in Newport Beach, California, the Company is primarily engaged in the design, construction, marketing and sale of single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington, Oregon and Texas. Its core markets include Orange County, Los Angeles, San Diego, Riverside, San Bernardino, the South and East Bay Areas of San Francisco, Phoenix, Las Vegas, Denver, Fort Collins, Portland, Seattle, Houston, Austin and San Antonio. The Company has a distinguished legacy of more than 60 years of homebuilding operations, over which time it has sold in excess of 111,000 homes. The Company markets and sells its homes under the William Lyon Homes brand in all of its markets except for Washington and Oregon, where the Company operates under the Polygon Northwest brand.

Forward-Looking Statements
Certain statements contained in this release and the accompanying comments during our conference call that are not historical information may constitute "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, but not limited to, forward-looking statements related to: anticipated deliveries and revenue, gross margin performance, backlog conversion rates, operating and financial results for the third quarter of 2019 and full year 2019, community count growth and project performance, market and industry trends, average sale price of homes to be closed in various periods, SG&A percentage, future cash needs and liquidity, minority interest from our homebuilding joint ventures, leverage ratios and reduction strategies, land acquisitions, financial services and ancillary business performance and strategies. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied.  The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate.  Factors that may impact such forward-looking statements include, among others: changes in mortgage and other interest rates; affordability pressures; adverse weather conditions; the availability of labor and homebuilding materials and increased construction cycle times; our financial leverage and level of indebtedness and any inability to comply with financial and other covenants under our debt instruments; continued volatility and worsening in general economic conditions either internationally, nationally or in regions in which we operate; increased housing supply in our markets; increased outside broker costs; increased costs of homebuilding materials; changes in governmental laws and regulations and compliance, increased costs, fees and delays associated therewith; government actions, policies, programs and regulations directed at or affecting the housing market (including the Tax Cuts and Jobs Act ("TCJA"), the Dodd-Frank Act, tax benefits associated with purchasing and owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by government-sponsored enterprises and government agencies), the homebuilding industry, or construction activities; changes in existing tax laws or enacted corporate income tax rates, including pursuant to the TCJA; worsening in markets for residential housing; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals, and the applicability and sufficiency of our insurance coverage; defects in manufactured products or other homebuilding materials; decline in real estate values resulting in impairment of our real estate assets; volatility in the banking industry, credit and capital markets; restraints on foreign investment; terrorism or other hostilities involving the United States and other geopolitical risk as well as restrictive policies such as tariffs or capital investment restrictions; building moratorium or "slow-growth" or "no-growth" initiatives that could be implemented in states in which we operate; conditions in the capital, credit and financial markets, including mortgage lending standards and the availability and timing of mortgage financing; changes in generally accepted accounting principles or interpretations of those principles; competition for home sales from other sellers of new and resale homes; cancellations and our ability to realize our backlog; the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements; limitations on our ability to utilize our tax attributes; whether an ownership change occurred that could, under certain circumstances, have resulted in the limitation of our ability to offset prior years' taxable income with net operating losses; the timing of receipt of regulatory approvals and the opening of projects; the availability and cost of land for future development; and additional factors discussed under the sections captioned "Risk Factors" included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Investor/Media Contacts:
Larry Clark
Financial Profiles, Inc.
(310) 622-8223
WLH@finprofiles.com

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except number of shares and per share data)

(unaudited)



 Three Months Ended 


 Nine Months Ended 


September 30,


September 30,


September 30,


September 30,


2019


2018


2019


2018

Operating revenue








Home sales 

$     464,765


$     533,514


$  1,382,057


$  1,424,331

Construction services

2,124


1,190


6,165


3,193


466,889


534,704


1,388,222


1,427,524

Operating costs








Cost of sales — homes 

(394,658)


(436,311)


(1,165,185)


(1,169,191)

Construction services

(1,978)


(1,121)


(5,732)


(3,063)

Sales and marketing 

(25,244)


(28,879)


(75,887)


(80,420)

General and administrative 

(30,292)


(30,039)


(88,890)


(83,067)

Transaction expenses

-


-


-


(3,907)

Other 

(600)


(591)


(1,639)


(1,510)


(452,772)


(496,941)


(1,337,333)


(1,341,158)

Operating income

14,117


37,763


50,889


86,366









Financial services








Equity in income of unconsolidated joint ventures 

353


531


2,643


1,996

Income (loss) from financial services operations

3,390


-


2,168


-

Transaction expenses

-


-


(990)


-

Financial services income (loss)

3,743


531


3,821


1,996









Other (expense) income, net

6,261


2,510


7,345


2,856

Income before extinguishment of debt

24,121


40,804


62,055


91,218

(Loss) gain on extinguishment of debt

(1,816)


-


(1,433)


-

Income before provision for income taxes

22,305


40,804


60,622


91,218

Provision for income taxes

(4,795)


(8,990)


(13,548)


(19,580)

Net income

17,510


31,814


47,074


71,638

Less: Net income attributable to noncontrolling interests

(8,030)


(5,256)


(19,024)


(14,297)

Net income available to common stockholders

$         9,480


$       26,558


$       28,050


$       57,341









Income per common share:








    Basic

$           0.25


$           0.70


$              0.74


$              1.51

    Diluted

$           0.24


$           0.68


$              0.72


$              1.45

   Weighted average common shares outstanding:








    Basic 

37,836,265


37,847,743


37,755,879


37,931,764

    Diluted

39,171,746


39,160,894


38,944,008


39,581,986


 

 

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

(in thousands except number of shares and per share data)

(unaudited)




September 30,


December 31,



2019


2018



 (unaudited) 



ASSETS





Cash and cash equivalents


$       42,118


$       33,779

Receivables


12,569


13,502

Escrow proceeds receivable


2,764


-

Real estate inventories





Owned


2,327,582


2,333,207

Not owned 


215,541


315,576

Investment in unconsolidated joint ventures


1,552


5,542

Goodwill


123,695


123,695

Intangibles, net of accumulated amortization of $4,640 as of September 30, 2019 and December 31, 2018


6,700


6,700

Deferred income taxes


46,254


47,241

Lease right-of-use assets


37,000


13,561

Financial services assets


168,093


-

Other assets, net


35,136


36,971

Total assets


$  3,019,004


$  2,929,774

LIABILITIES AND EQUITY





Accounts payable 


$     114,810


$     128,371

Accrued expenses 


102,263


150,155

Financial services liabilities


146,836


-

Liabilities from inventories not owned


215,541


315,576

Revolving credit facility


150,000


45,000

Construction notes payable


1,252


1,231

Joint venture notes payable


137,729


151,788

7% Senior Notes due August 15, 2022


49,762


347,456

6% Senior Notes due September 1, 2023


344,654


343,878

5.875% Senior Notes due January 31, 2025


429,121


431,992

6.625% Senior Notes due July 15, 2027


294,673


-



1,986,641


1,915,447

Commitments and contingencies





Equity:





William Lyon Homes stockholders' equity





Preferred stock, par value $0.01 per share; 10,000,000 shares authorized and no shares issued and outstanding at September 30, 2019 and December 31, 2018


-


-

Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 33,983,093 and 33,904,972 shares issued, 33,029,026 and 32,690,378 shares outstanding at September 30, 2019 and December 31, 2018, respectively


340


339

Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 4,817,394 shares issued and outstanding at September 30, 2019 and December 31, 2018


48


48

Additional paid-in capital 


450,137


445,545

Retained earnings


445,440


417,390

Total William Lyon Homes stockholders' equity


895,965


863,322

Noncontrolling interests


136,398


151,005

Total equity


1,032,363


1,014,327

Total liabilities and equity


$  3,019,004


$  2,929,774

 

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)




Three Months Ended September 30,


Nine Months Ended September 30,



2019


2018


% Chg


2019


2018


% Chg

Selected Financial Information









(dollars in thousands)













Homes closed

995


1,053


(6%)


2,977


2,875


4%


Home sales revenue

$ 464,765


$ 533,514


(13%)


$ 1,382,057


$ 1,424,331


(3%)


Cost of sales (excluding interest, purchase accounting adjustments, and one-time inventory charge)

(368,878)


(410,908)


(10%)


(1,098,944)


(1,096,535)


0%


Adjusted homebuilding gross margin (1)

$   95,887


$ 122,606


(22%)


$    283,113


$    327,796


(14%)


Adjusted homebuilding gross margin percentage (1)

20.6%


23.0%


(10%)


20.5%


23.0%


(11%)


Interest in cost of sales

(19,149)


(21,548)


(11%)


(59,610)


(62,681)


(5%)


Purchase accounting adjustments

-


(3,855)


(100%)


-


(9,975)


(100%)


Gross margin, exlcuding one-time inventory charge

$   76,738


$   97,203


(21%)


$    223,503


$    255,140


(12%)


Gross margin percentage, excluding one-time inventory charge

16.5%


18.2%


(9%)


16.2%


17.9%


(10%)


One-time inventory charge

$    (6,631)


-


-


$       (6,631)


-


-


Gross margin

$   70,107


$   97,203


(28%)


$    216,872


$    255,140


(15%)


Gross margin percentage

15.1%


18.2%


(17%)


15.7%


17.9%


(12%)














Number of homes closed













California

292


301


(3%)


860


779


10%


Arizona

128


108


19%


322


336


(4%)


Nevada

78


80


(3%)


219


245


(11%)


Colorado

92


124


(26%)


376


362


4%


Washington

90


118


(24%)


242


350


(31%)


Oregon

110


159


(31%)


313


403


(22%)


Texas

205


163


26%


645


400


61%


     Total

995


1,053


(6%)


2,977


2,875


4%














Average sales price of homes closed













California

$ 614,800


$ 668,800


(8%)


$    620,300


$    655,400


(5%)


Arizona

352,600


317,500


11%


340,800


312,800


9%


Nevada

506,600


622,700


(19%)


510,500


592,700


(14%)


Colorado

460,300


440,100


5%


439,600


433,900


1%


Washington

665,400


686,300


(3%)


656,600


628,900


4%


Oregon

394,000


436,700


(10%)


411,600


452,900


(9%)


Texas

268,400


264,400


2%


269,800


259,400


4%


     Average

$ 467,100


$ 506,700


(8%)


$    464,200


$    495,400


(6%)














Number of net new home orders













California

279


295


(5%)


923


915


1%


Arizona

125


118


6%


370


344


8%


Nevada

90


94


(4%)


250


318


(21%)


Colorado

104


100


4%


459


404


14%


Washington

64


77


(17%)


277


392


(29%)


Oregon

85


145


(41%)


295


553


(47%)


Texas

193


172


12%


730


451


62%


     Total

940


1,001


(6%)


3,304


3,377


(2%)














Average number of sales locations













California

35


36


(3%)


37


29


28%


Arizona

9


6


50%


9


6


50%


Nevada

13


15


(13%)


13


13


0%


Colorado

11


12


(8%)


11


14


(21%)


Washington

9


10


(10%)


9


9


0%


Oregon

16


15


7%


17


15


13%


Texas

21


22


(5%)


22


16


38%


     Total

114


116


(2%)


118


102


16%



(1)

Adjusted homebuilding gross margin is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP. It is used by management in evaluating operating performance and in making strategic decisions regarding sales pricing, construction and development pace, product mix and other operating decisions. We believe this information is meaningful as it isolates the impact that interest and purchase accounting adjustments have on homebuilding gross margin and allows investors to make better comparisons with our competitors.

 

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)


As of September 30,


2019


2018


% Chg







Backlog of homes sold but not closed at end of period






California

315


451


(30%)

Arizona

206


169


22%

Nevada

125


159


(21%)

Colorado

217


214


1%

Washington

76


133


(43%)

Oregon

110


222


(50%)

Texas

319


248


29%

      Total

1,368


1,596


(14%)







Dollar amount of homes sold but not closed at end of period (in thousands)






California

$196,367


$327,838


(40%)

Arizona

75,075


53,585


40%

Nevada

55,416


94,053


(41%)

Colorado

100,754


92,315


9%

Washington

48,375


83,256


(42%)

Oregon

49,755


81,270


(39%)

Texas

88,192


68,267


29%

        Total

$613,934


$800,584


(23%)







Lots owned and controlled at end of period (1)












Lots owned






California

2,886


3,648


(21%)

Arizona

3,331


3,756


(11%)

Nevada

2,407


2,745


(12%)

Colorado

578


1,006


(43%)

Washington

1,391


1,538


(10%)

Oregon

2,588


2,613


(1%)

Texas

4,468


3,199


40%

        Total

17,649


18,505


(5%)







Lots controlled






California

1,322


1,709


(23%)

Arizona

660


651


1%

Nevada

629


-


NM

Colorado

2,260


2,368


(5%)

Washington

617


710


(13%)

Oregon

1,665


1,307


27%

Texas

4,440


3,885


14%

      Total

11,593


10,630


9%













Total lots owned and controlled






California

4,208


5,357


(21%)

Arizona

3,991


4,407


(9%)

Nevada

3,036


2,745


11%

Colorado

2,838


3,374


(16%)

Washington

2,008


2,248


(11%)

Oregon

4,253


3,920


8%

Texas

8,908


7,084


26%

      Total

29,242


29,135


0%



(1)

Certain lots in California, Texas, Arizona and Washington are consolidated on the Company's accompanying balance sheet in accordance with FASB ASC Topic 470, Debt ("ASC 470"). Included in lots owned are 425 lots in California, 1,007 lots in Texas, 1,931 lots in Arizona, and 72 lots in Washington that are associated with land banking transactions that are consolidated on the Company's accompanying balance sheet in accordance with ASC 470.

 

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)




Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2019


2018


2019


2018










Net income available to common stockholders


$       9,480


$     26,558


$      28,050


$      57,341

Interest incurred


$     25,449


$     24,725


$      73,439


$      66,791

Adjusted EBITDA (1)


$     41,746


$     66,175


$    115,373


$    170,302

Adjusted EBITDA Margin (2)


8.9%


12.4%


8.3%


11.9%

Ratio of adjusted EBITDA to interest incurred


1.6


2.7


1.6


2.5



(1)

Adjusted EBITDA means net income available to common stockholders plus (i) provision for income taxes, (ii) interest expense, (iii) amortization of capitalized interest included in cost of sales, (iv) stock based compensation, (v) depreciation and amortization, (vi) non-cash purchase accounting adjustments, (vii) cash distributions of income from unconsolidated joint ventures, (viii) equity in income of unconsolidated joint ventures, (ix) transaction expenses, and (x) (gain) loss on extinguishment of debt.  Other companies may calculate adjusted EBITDA differently.  Adjusted EBITDA is not a financial measure prepared in accordance with U.S. GAAP.  Adjusted EBITDA is presented herein because management believes the presentation of adjusted EBITDA provides useful information to the Company's investors regarding the Company's financial condition and results of operations because adjusted EBITDA is a widely utilized indicator of a company's operating performance.  Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.  A reconciliation of net income available to common stockholders to adjusted EBITDA is provided in the following table:



(2)

Calculated as Adjusted EBITDA as a percentage of operating revenue.

 




Three Months Ended


Nine Months Ended

Reconciliation of Adjusted EBITDA:


September 30, 
2019


September 30, 
2018


September 30,
2019


September 30,
 2018

Net income available to common stockholders


$        9,480


$     26,558


$      28,050


$      57,341

Provision for income taxes


4,795


8,990


13,548


19,580

Interest expense










Interest incurred


25,449


24,725


73,439


66,791


Interest capitalized


(25,449)


(24,725)


(73,439)


(66,791)

Amortization of capitalized interest included in cost of sales


19,149


22,009


59,610


 

63,227

Stock based compensation


2,233


2,406


6,961


7,593

Depreciation and amortization


815


1,807


2,356


5,779

Non-cash purchase accounting adjustments


-


3,855


-


9,975

Cash distributions of income from unconsolidated joint ventures


3,811


1,081


5,068


4,896

Equity in income of unconsolidated joint ventures


(353)


(531)


(2,643)


(1,996)

Transaction expenses


-


-


990


3,907

Loss on extinguishment of debt


1,816


-


1,433


-

Adjusted EBITDA


$      41,746


$     66,175


$    115,373


$    170,302

 

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)




Three Months Ended


Nine Months Ended

Reconcilation of Adjusted Net Income:


September 30, 
2019


September 30,
 2018


September 30,
 2019


September 30,
 2018

Net income available to common stockholders


$        9,480


$     26,558


$      28,050


$      57,341

Add: Transaction expenses


-


-


990


3,907

Add: Loss on extinguishment of debt


1,816


-


1,433


-

Add: One-time inventory charge


6,631


-


6,631


-

Add: Costs associated with staff reductions


-


-


1,173


-

Less: Income tax (provision) applicable to transaction expenses


-


-


(221)


(840)

Less: Income tax benefit applicable to loss on extinguishment of debt


(390)


-


(320)


-

Less: Income tax (provision) applicable to one-time inventory charge


(1,426)


-


(1,482)


-

Less: Income tax (provision) applicable to costs associated with staff reductions


-


-


(262)


-

Net income, adjusted for transaction expenses, loss on extinguishment of debt, one-time inventory charge, and costs associated with staff reductions, net of tax benefit (provision) 


$      16,111


$     26,558


$      35,991


$      60,408

Diluted weighted average common shares outstanding


39,171,746


39,160,894


38,944,008


39,581,986

Adjusted net income per diluted share


$          0.41


$         0.68


$          0.92


$          1.53





















Three Months Ended


Nine Months Ended

Reconcilation of Adjusted Pre-Tax Income:


September 30, 
2019


September 30, 
2018


September 30,
2019


September 30,
2018

Income before provision for income taxes


$      22,305


$     40,804


$      60,622


$      91,218

Add: Transaction expenses


-


-


990


3,907

Loss on extinguishment of debt


1,816


-


1,433


-

One-time inventory charge


6,631


-


6,631


-

Staff reorganization costs


-


-


1,173


-

Pre-tax income, adjusted for transaction expenses, loss on extinguishment of debt, and costs associated with staff reductions


$      30,752


$     40,804


$      70,849


$      95,125

 

Balance Sheet Data




September 30,


December 31,



2019


2018






Cash and cash equivalents


$      42,118


$      33,779






Total William Lyon Homes stockholders' equity


895,965


863,322

Noncontrolling interests


136,398


151,005

Total debt


1,407,191


1,321,345

Total capital


$ 2,439,554


$ 2,335,672






Ratio of debt to total capital


57.7%


56.6%

Ratio of net debt to total capital (net of cash)


56.9%


55.9%

 

SOURCE William Lyon Homes