Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - WILLIAM LYON HOMES | d137492dex992.htm |
| 8-K - FORM 8-K - WILLIAM LYON HOMES | d137492d8k.htm |
Exhibit 99.1
WILLIAM LYON HOMES REPORTS FOURTH QUARTER AND FULL YEAR 2015 RESULTS
46% INCREASE IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS; 35% INCREASE IN
COMMUNITY COUNT; AND 13% INCREASE IN HOMEBUILDING REVENUE FOR THE QUARTER
NEWPORT BEACH, CA — February 25, 2016 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for the fourth quarter and year ended December 31, 2015.
2015 Fourth Quarter Highlights (Comparison to 2014 Fourth Quarter)
| • | Net income available to common stockholders of $26.3 million, or $0.68 per diluted share, up 46% |
| • | Home sales revenue of $397.2 million, up 13% |
| • | Consolidated revenue of $403.0 million, up 12% |
| • | New home deliveries of 809 homes, up 13% |
| • | Average sales locations of 74, up 35% |
| • | Units in backlog of 739, up 55% |
| • | Dollar value of homes in backlog of $391.8 million, up 51% |
| • | Net new home orders of 516, up 10% |
| • | Dollar value of orders of $243.8 million, up 12% |
| • | Homebuilding gross margin of $72.8 million, up 9% |
| • | Average sales price (ASP) of new homes delivered of $490,900 |
| • | Homebuilding gross margin percentage of 18.3% |
| • | Adjusted homebuilding gross margin percentage of 24.2% |
| • | SG&A percentage of 9.3%, compared to 10.4% |
| • | Operating Income of $36.0 million, up 18% |
| • | Adjusted EBITDA of $61.9 million, up 27% |
2015 Full Year Highlights (Comparison to 2014 Full Year)
| • | Net income available to common stockholders of $57.3 million, or $1.48 per diluted share, up 28% |
| • | Home sales revenue of $1,078.9 million, up 26% |
| • | Consolidated revenue of $1,106.6 million, up 23% |
| • | New home deliveries of 2,314 homes, up 32% |
| • | Net new home orders of 2,575, up 54% |
| • | Dollar value of orders of $1.2 billion, up 46% |
| • | Average sales locations of 68, up 55% |
| • | Homebuilding gross margin of $199.9 million, up 11% |
| • | Average sales price (ASP) of new homes delivered of $466,300 |
| • | Homebuilding gross margin percentage of 18.5% |
| • | Adjusted homebuilding gross margin percentage of 24.8% |
| • | SG&A percentage of 11.2%, compared to 11.7% |
| • | Income before provision for income taxes of $87.1 million, up 11% |
| • | Adjusted EBITDA of $158.5 million, up 29% |
“Our 2015 fourth quarter results continued to demonstrate consistent year-over-year improvement in key operating metrics, including deliveries, net new home orders, the dollar value of orders, community count, and both units and dollar value of backlog,” said William H. Lyon, Co-Chief Executive Officer. Mr. Lyon added, “Home sales revenue and deliveries each increased by 13% to $397.2 million and 809 units, respectively, both the highest since 2006, and we generated $26.3 million of net income, or $0.68 per diluted share, a 46% increase.”
Matthew R. Zaist, Co-Chief Executive Officer and President, stated, “2015 was a year of significant growth for William Lyon Homes, and we are encouraged by the start to 2016 with net new home orders in January up 21% year-over-year and up 33% sequentially from December. While the industry has experienced certain challenges such as labor constraints, cycle time increases and volatility in the global and U.S. financial markets, we continue to see strong housing fundamentals in our core markets. We will continue to focus on execution of our strategic initiatives for this year, which include maximizing revenue from our existing communities, maintaining disciplined cost controls at our projects and at the corporate level, utilizing free cash flow to reduce overall leverage and growing our community count from our significant land position.”
Operating Results
Home sales revenue for the fourth quarter of 2015 was $397.2 million, as compared to $352.5 million in the year-ago period, an increase of 13%. The increase was driven by a 13% increase in deliveries to 809 homes, compared to 717 in the fourth quarter of 2014, as the average sales price of homes delivered was $490,900, consistent with prior year. ASPs were relatively consistent due to shifts in product mix, with more homes delivered in Arizona and Oregon.
The dollar value of orders for the fourth quarter of 2015 was $243.8 million, an increase of 12%, from $216.8 million in the year-ago period. Net new home orders for the quarter were 516, up 10% from the fourth quarter of 2014. The increase in net new home orders was driven by a 35% increase in community count to 74 average sales locations, from 55 in the year-ago period, offset by a year-over-year decline in the average monthly absorption rate to 2.3 sales per community, from 2.8 in the fourth quarter of 2014.
The dollar value of homes in backlog was $391.8 million as of December 31, 2015, an increase of 51% compared to $260.1 million as of December 31, 2014. The increase was driven by a 55% increase in units in backlog to 739 from 478 in the year-ago period. In addition, our ASP in backlog as of December 31, 2015 was 8% higher than the ASP of homes closed in the fourth quarter.
Adjusted homebuilding gross margin percentage was 24.2% during the fourth quarter of 2015. Homebuilding gross margin percentage for the quarter was 18.3%. SG&A expense during the fourth quarter of 2015 was 9.3% of homebuilding revenue, an improvement of 110 basis points from 10.4% in the fourth quarter of 2014. Breaking down the components of SG&A, sales and marketing expense was 4.8% of homebuilding revenue during the quarter, compared to 5.1% in the year-ago quarter. General and administrative expenses decreased to 4.5% of homebuilding revenue, compared to 5.3% in the year-ago quarter, as we continued to benefit from a larger operating platform with a lower relative cost structure.
Balance Sheet Update
At year end, cash, cash equivalents and restricted cash totaled $50.7 million, real estate inventories totaled $1.7 billion, total assets were $1.9 billion and total equity was $671.5 million. Net debt to net book capitalization was 61.1%, and total debt to total book capitalization was 62.2% at December 31, 2015, compared to 63.6% and 64.2%, respectively, as of September 30, 3015.
Conference Call
The Company will host a conference call to discuss these results today, Thursday, February 25, 2016 at 10:00 a.m. Pacific Time. The call will be available via both the telephone at (855) 851-4524 or (720) 634-2900, passcode #42334171, or through the Company’s website at www.lyonhomes.com in the Investor Relations section of the site.
A replay of the call will be available through March 3, 2016 by dialing (855) 859-2056 or (404) 537-3406, passcode #42334171. A webcast replay of the call will also be available on the Company’s website approximately two hours after the broadcast.
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 and Oregon. Its core markets include Orange County, Los Angeles, the Inland Empire, the San Francisco Bay Area, Phoenix, Las Vegas, Denver, Seattle and Portland. The Company has a distinguished legacy of more than 59 years of homebuilding operations, over which time it has sold in excess of 96,000 homes. The Company markets and sells its homes under the William Lyon Homes brand in all of its markets except for Colorado, where the Company operates under the Village Homes brand, and Washington and Oregon, where the Company operates under the Polygon Northwest brand.
Forward-Looking Statements
Information presented herein for the fourth quarter and year ended December 31, 2015 is subject to finalization of the Company’s regulatory filings, related financial and accounting reporting procedures and external auditor procedures.
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: community count growth, market and industry trends, the continued housing market recovery, operating results for the first quarter of 2016 and full year 2016, average sale price of homes to be closed in various periods, SG&A percentage, gross margins, future cash needs and liquidity, leverage ratios and reduction strategies, land acquisition spending and backlog conversion rates. 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: the availability of labor and homebuilding materials and increased construction cycle times; adverse weather conditions, including but not limited to the continued drought in California and the Southwest; 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; conditions in our newly entered markets and newly acquired operations; 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; decline in real estate values resulting in impairment of our real estate assets; volatility in the banking industry and credit markets; uncertainties in the capital and securities markets; terrorism or other hostilities involving the United States; building moratorium or “slow-growth” or “no-growth” initiatives that could be implemented in states in which we operate; changes in mortgage and other interest rates; conditions in the capital, credit and financial markets, including mortgage lending standards and the availability of mortgage financing; changes in generally accepted accounting principles or interpretations of those principles; changes in prices of homebuilding materials; 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; changes in governmental laws and regulations; whether we are able to pay off or refinance the outstanding balances of our debt obligations at their maturity; 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; our ability to integrate successfully the Polygon Northwest operation with our existing operations; 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 December 31, 2015 |
Three Months Ended December 31, 2014 |
|||||||
| Operating revenue |
||||||||
| Home sales |
$ | 397,162 | $ | 352,479 | ||||
| Construction services |
5,820 | 7,542 | ||||||
|
|
|
|
|
|||||
| 402,982 | 360,021 | |||||||
|
|
|
|
|
|||||
| Operating costs |
||||||||
| Cost of sales — homes |
(324,338 | ) | (285,448 | ) | ||||
| Construction services |
(5,108 | ) | (5,965 | ) | ||||
| Sales and marketing |
(19,059 | ) | (17,945 | ) | ||||
| General and administrative |
(17,817 | ) | (18,745 | ) | ||||
| Transaction expenses |
— | (64 | ) | |||||
| Amortization of intangible assets |
(248 | ) | (520 | ) | ||||
| Other |
(422 | ) | (983 | ) | ||||
|
|
|
|
|
|||||
| (366,992 | ) | (329,670 | ) | |||||
|
|
|
|
|
|||||
| Operating income |
35,990 | 30,351 | ||||||
| Equity in income of unconsolidated joint ventures |
1,458 | 409 | ||||||
| Other income, net |
706 | 1,068 | ||||||
|
|
|
|
|
|||||
| Income before provision for income taxes |
38,154 | 31,828 | ||||||
| Provision for income taxes |
(11,026 | ) | (11,018 | ) | ||||
|
|
|
|
|
|||||
| Net income |
27,128 | 20,810 | ||||||
| Less: Net income attributable to noncontrolling interests |
(833 | ) | (2,805 | ) | ||||
|
|
|
|
|
|||||
| Net income available to common stockholders |
$ | 26,295 | $ | 18,005 | ||||
|
|
|
|
|
|||||
| Income per common share: |
||||||||
| Basic |
$ | 0.72 | $ | 0.54 | ||||
| Diluted |
$ | 0.68 | $ | 0.52 | ||||
| Weighted average common shares outstanding: |
||||||||
| Basic |
36,580,867 | 33,439,411 | ||||||
| Diluted |
38,546,342 | 34,851,823 | ||||||
WILLIAM LYON HOMES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except number of shares and per share data)
| Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
|||||||
| Operating revenue |
||||||||
| Home sales |
$ | 1,078,928 | $ | 857,025 | ||||
| Lots, land and other sales |
2,500 | 1,926 | ||||||
| Construction services |
25,124 | 37,728 | ||||||
|
|
|
|
|
|||||
| 1,106,552 | 896,679 | |||||||
|
|
|
|
|
|||||
| Operating costs |
||||||||
| Cost of sales — homes |
(878,995 | ) | (677,531 | ) | ||||
| Cost of sales — lots, land and other |
(1,729 | ) | (1,529 | ) | ||||
| Construction services |
(21,181 | ) | (30,700 | ) | ||||
| Sales and marketing |
(61,539 | ) | (45,903 | ) | ||||
| General and administrative |
(59,161 | ) | (54,626 | ) | ||||
| Transaction expenses |
— | (5,832 | ) | |||||
| Amortization of intangible assets |
(958 | ) | (1,814 | ) | ||||
| Other |
(1,971 | ) | (2,874 | ) | ||||
|
|
|
|
|
|||||
| (1,025,534 | ) | (820,809 | ) | |||||
|
|
|
|
|
|||||
| Operating income |
81,018 | 75,870 | ||||||
| Equity in income of unconsolidated joint ventures |
3,239 | 555 | ||||||
| Other income, net |
2,810 | 1,898 | ||||||
|
|
|
|
|
|||||
| Income before provision for income taxes |
87,067 | 78,323 | ||||||
| Provision for income taxes |
(26,806 | ) | (23,797 | ) | ||||
|
|
|
|
|
|||||
| Net income |
60,261 | 54,526 | ||||||
| Less: Net income attributable to noncontrolling interests |
(2,925 | ) | (9,901 | ) | ||||
|
|
|
|
|
|||||
| Net income available to common stockholders |
$ | 57,336 | $ | 44,625 | ||||
|
|
|
|
|
|||||
| Income per common share: |
||||||||
| Basic |
$ | 1.57 | $ | 1.41 | ||||
| Diluted |
$ | 1.48 | $ | 1.34 | ||||
| Weighted average common shares outstanding: |
||||||||
| Basic |
36,546,227 | 31,753,110 | ||||||
| Diluted |
38,767,556 | 33,236,343 | ||||||
WILLIAM LYON HOMES
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and par value per share)
| December 31, 2015 |
December 31, 2014 |
|||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 50,203 | $ | 52,771 | ||||
| Restricted cash |
504 | 504 | ||||||
| Receivables |
14,838 | 21,250 | ||||||
| Escrow proceeds receivable |
3,041 | 2,915 | ||||||
| Real estate inventories |
1,675,106 | 1,404,639 | ||||||
| Investment in unconsolidated joint ventures |
5,413 | 2,500 | ||||||
| Goodwill |
66,902 | 60,887 | ||||||
| Intangibles, net of accumulated amortization of $4,640 and $3,683 as of December 31, 2015 and December 31, 2014, respectively |
6,700 | 7,657 | ||||||
| Deferred income taxes, net, including valuation allowance of $0 and $1,626 at December 31, 2015 and December 31, 2014, respectively |
79,726 | 88,039 | ||||||
| Other assets, net |
21,017 | 18,562 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,923,450 | $ | 1,659,724 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND EQUITY | ||||||||
| Accounts payable |
$ | 75,881 | $ | 51,814 | ||||
| Accrued expenses |
70,324 | 85,366 | ||||||
| Notes payable |
175,181 | 39,235 | ||||||
| Subordinated amortizing note |
14,066 | 20,717 | ||||||
| 5 3⁄4% Senior Notes due April 15, 2019 |
148,295 | 147,766 | ||||||
| 8 1⁄2% Senior Notes due November 15, 2020 |
422,896 | 422,889 | ||||||
| 7% Senior Notes due August 15, 2022 |
345,338 | 294,791 | ||||||
|
|
|
|
|
|||||
| 1,251,981 | 1,062,578 | |||||||
|
|
|
|
|
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| Commitments and contingencies |
||||||||
| Equity: |
||||||||
| William Lyon Homes stockholders’ equity |
||||||||
| Preferred stock, par value $0.01 per share; 10,000,000 and no shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
— | — | ||||||
| Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,363,879 and 28,073,438 shares issued, 27,657,435 and 27,487,257 outstanding at December 31, 2015 and December 31, 2014, respectively |
284 | 281 | ||||||
| Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
38 | 38 | ||||||
| Additional paid-in capital |
413,810 | 408,969 | ||||||
| Retained earnings |
217,963 | 160,627 | ||||||
|
|
|
|
|
|||||
| Total William Lyon Homes stockholders’ equity |
632,095 | 569,915 | ||||||
| Noncontrolling interests |
39,374 | 27,231 | ||||||
|
|
|
|
|
|||||
| Total equity |
671,469 | 597,146 | ||||||
|
|
|
|
|
|||||
| Total liabilities and equity |
$ | 1,923,450 | $ | 1,659,724 | ||||
|
|
|
|
|
|||||
WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING INFORMATION
(unaudited)
| Three Months Ended December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Consolidated Total |
Consolidated Total |
Percentage % Change |
||||||||||
| Selected Financial Information (1) |
||||||||||||
| (dollars in thousands) |
||||||||||||
| Homes closed |
809 | 717 | 13 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Home sales revenue |
$ | 397,162 | $ | 352,479 | 13 | % | ||||||
| Cost of sales (excluding interest and purchase accounting adjustments) |
(301,194 | ) | (269,543 | ) | 12 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted homebuilding gross margin (2) |
$ | 95,968 | $ | 82,936 | 16 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted homebuilding gross margin percentage (2) |
24.2 | % | 23.5 | % | 3 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Interest in cost of sales |
(14,666 | ) | (10,014 | ) | 46 | % | ||||||
| Purchase accounting adjustments |
(8,478 | ) | (5,891 | ) | 44 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Gross margin |
$ | 72,824 | $ | 67,031 | 9 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Gross margin percentage |
18.3 | % | 19.0 | % | (4 | %) | ||||||
|
|
|
|
|
|
|
|||||||
| Number of homes closed |
||||||||||||
| California |
225 | 287 | (22 | %) | ||||||||
| Arizona |
120 | 50 | 140 | % | ||||||||
| Nevada |
73 | 73 | 0 | % | ||||||||
| Colorado |
80 | 46 | 74 | % | ||||||||
| Washington |
133 | 111 | 20 | % | ||||||||
| Oregon |
178 | 150 | 19 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
809 | 717 | 13 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Average sales price of homes closed |
||||||||||||
| California |
$ | 693,300 | $ | 604,900 | 15 | % | ||||||
| Arizona |
256,100 | 254,700 | 1 | % | ||||||||
| Nevada |
560,400 | 681,300 | (18 | %) | ||||||||
| Colorado |
469,500 | 500,400 | (6 | %) | ||||||||
| Washington |
427,700 | 413,400 | 3 | % | ||||||||
| Oregon |
421,800 | 316,700 | 33 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 490,900 | $ | 491,600 | (0 | %) | ||||||
|
|
|
|
|
|
|
|||||||
| Number of net new home orders |
||||||||||||
| California |
122 | 155 | (21 | %) | ||||||||
| Arizona |
91 | 41 | 122 | % | ||||||||
| Nevada |
79 | 37 | 114 | % | ||||||||
| Colorado |
24 | 40 | (40 | %) | ||||||||
| Washington |
87 | 92 | (5 | %) | ||||||||
| Oregon |
113 | 102 | 11 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
516 | 467 | 10 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Average number of sales locations during period |
||||||||||||
| California |
19 | 19 | 0 | % | ||||||||
| Arizona |
8 | 5 | 60 | % | ||||||||
| Nevada |
13 | 9 | 44 | % | ||||||||
| Colorado |
12 | 12 | 0 | % | ||||||||
| Washington |
6 | 5 | 20 | % | ||||||||
| Oregon |
16 | 5 | 220 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
74 | 55 | 35 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (1) | For the periods presented, the Company is reporting in six segments: California, Arizona, Nevada, Colorado, Washington and Oregon. |
| (2) | 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)
| Year Ended December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Consolidated Total |
Consolidated Total |
Percentage % Change |
||||||||||
| Selected Financial Information (1) (dollars in thousands) |
||||||||||||
| Homes closed |
2,314 | 1,753 | 32 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Home sales revenue |
$ | 1,078,928 | $ | 857,025 | 26 | % | ||||||
| Cost of sales (excluding interest and purchase accounting adjustments) |
(811,660 | ) | (641,042 | ) | 27 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted homebuilding gross margin (2) |
$ | 267,268 | $ | 215,983 | 24 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted homebuilding gross margin percentage (2) |
24.8 | % | 25.2 | % | (2 | %) | ||||||
|
|
|
|
|
|
|
|||||||
| Interest in cost of sales |
(38,416 | ) | (26,510 | ) | 45 | % | ||||||
| Purchase accounting adjustments |
(28,919 | ) | (9,979 | ) | 190 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Gross margin |
$ | 199,933 | $ | 179,494 | 11 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Gross margin percentage |
18.5 | % | 20.9 | % | (12 | %) | ||||||
|
|
|
|
|
|
|
|||||||
| Number of homes closed |
||||||||||||
| California |
633 | 840 | (25 | %) | ||||||||
| Arizona |
252 | 217 | 16 | % | ||||||||
| Nevada |
230 | 236 | (3 | %) | ||||||||
| Colorado |
230 | 95 | 142 | % | ||||||||
| Washington |
434 | 154 | 182 | % | ||||||||
| Oregon |
535 | 211 | 154 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
2,314 | 1,753 | 32 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Average sales price of homes closed |
||||||||||||
| California |
$ | 599,200 | $ | 594,000 | 1 | % | ||||||
| Arizona |
265,900 | 264,900 | 0 | % | ||||||||
| Nevada |
568,900 | 516,200 | 10 | % | ||||||||
| Colorado |
465,300 | 489,100 | (5 | %) | ||||||||
| Washington |
417,600 | 427,800 | (2 | %) | ||||||||
| Oregon |
399,000 | 314,800 | 27 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 466,300 | $ | 488,900 | (5 | %) | ||||||
|
|
|
|
|
|
|
|||||||
| Number of net new home orders |
||||||||||||
| California |
669 | 792 | (16 | %) | ||||||||
| Arizona |
414 | 201 | 106 | % | ||||||||
| Nevada |
272 | 237 | 15 | % | ||||||||
| Colorado |
224 | 152 | 47 | % | ||||||||
| Washington |
416 | 134 | 210 | % | ||||||||
| Oregon |
580 | 161 | 260 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
2,575 | 1,677 | 54 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Average number of sales locations during period |
||||||||||||
| California |
18 | 17 | 6 | % | ||||||||
| Arizona |
7 | 6 | 17 | % | ||||||||
| Nevada |
11 | 9 | 22 | % | ||||||||
| Colorado |
13 | 8 | 63 | % | ||||||||
| Washington |
6 | 2 | 200 | % | ||||||||
| Oregon |
13 | 2 | 550 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
68 | 44 | 55 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (1) | For the periods presented, the Company is reporting in six segments: California, Arizona, Nevada, Colorado, Washington and Oregon. |
| (2) | 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 December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Consolidated Total |
Consolidated Total |
Percentage % Change |
||||||||||
| Backlog of homes sold but not closed at end of period |
||||||||||||
| California |
194 | 158 | 23 | % | ||||||||
| Arizona |
209 | 47 | 345 | % | ||||||||
| Nevada |
115 | 73 | 58 | % | ||||||||
| Colorado |
78 | 84 | (7 | %) | ||||||||
| Washington |
44 | 62 | (29 | %) | ||||||||
| Oregon |
99 | 54 | 83 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
739 | 478 | 55 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Dollar amount of homes sold but not closed at end of period (in thousands) |
||||||||||||
| California |
$ | 152,673 | $ | 93,912 | 63 | % | ||||||
| Arizona |
53,527 | 13,408 | 299 | % | ||||||||
| Nevada |
77,151 | 62,847 | 23 | % | ||||||||
| Colorado |
40,952 | 37,935 | 8 | % | ||||||||
| Washington |
24,414 | 34,309 | (29 | %) | ||||||||
| Oregon |
43,053 | 17,716 | 143 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 391,770 | $ | 260,127 | 51 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Lots owned and controlled at end of period |
||||||||||||
| Lots owned |
||||||||||||
| California |
2,200 | 2,140 | 3 | % | ||||||||
| Arizona |
5,204 | 5,421 | (4 | %) | ||||||||
| Nevada |
2,888 | 2,941 | (2 | %) | ||||||||
| Colorado |
798 | 979 | (18 | %) | ||||||||
| Washington |
1,144 | 1,427 | (20 | %) | ||||||||
| Oregon |
1,245 | 1,195 | 4 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
13,479 | 14,103 | (4 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Lots controlled |
||||||||||||
| California |
601 | 1,538 | (61 | %) | ||||||||
| Arizona |
— | — | 0 | % | ||||||||
| Nevada |
554 | 156 | 255 | % | ||||||||
| Colorado |
134 | 183 | (27 | %) | ||||||||
| Washington |
871 | 728 | 20 | % | ||||||||
| Oregon |
1,775 | 834 | 113 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
3,935 | 3,439 | 14 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total lots owned and controlled |
||||||||||||
| California |
2,801 | 3,678 | (24 | %) | ||||||||
| Arizona |
5,204 | 5,421 | (4 | %) | ||||||||
| Nevada |
3,442 | 3,097 | 11 | % | ||||||||
| Colorado |
932 | 1,162 | (20 | %) | ||||||||
| Washington |
2,015 | 2,155 | (6 | %) | ||||||||
| Oregon |
3,020 | 2,029 | 49 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
17,414 | 17,542 | (1 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
| Three Months Ended December 31, 2015 |
Three Months Ended December 31, 2014 |
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
|||||||||||||
| Net income attributable to William Lyon Homes |
$ | 26,295 | $ | 18,005 | $ | 57,336 | $ | 44,625 | ||||||||
| Net cash (used in) provided by operating activities |
$ | 47,446 | $ | 21,237 | $ | (172,908 | ) | $ | (159,807 | ) | ||||||
| Interest incurred |
$ | 20,307 | $ | 26,741 | $ | 76,222 | $ | 65,559 | ||||||||
| Adjusted EBITDA (1) |
$ | 61,854 | $ | 48,933 | $ | 158,546 | $ | 122,696 | ||||||||
| Adjusted EBITDA Margin (2) |
15.3 | % | 13.6 | % | 14.3 | % | 13.7 | % | ||||||||
| Ratio of adjusted EBITDA to interest incurred |
3.0 | 1.8 | 2.1 | 1.9 | ||||||||||||
Balance Sheet Data
| December 31, 2015 |
December 31, 2014 |
|||||||||||
| Cash, cash equivalents and restricted cash |
$ | 50,707 | $ | 53,275 | ||||||||
| Total William Lyon Homes stockholders’ equity |
632,095 | 569,915 | ||||||||||
| Noncontrolling interest |
39,374 | 27,231 | ||||||||||
| Total debt |
1,105,776 | 925,398 | ||||||||||
|
|
|
|
|
|||||||||
| Total book capitalization |
$ | 1,777,245 | $ | 1,522,544 | ||||||||
|
|
|
|
|
|||||||||
| Ratio of debt to total book capitalization |
62.2 | % | 60.8 | % | ||||||||
| Ratio of debt to total book capitalization (net of cash) |
61.1 | % | 59.4 | % | ||||||||
| (1) | Adjusted EBITDA means net income (loss) attributable to William Lyon Homes 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, and (viii) equity in income of unconsolidated joint ventures. 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 (loss) 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 attributable to William Lyon Homes to adjusted EBITDA is provided in the following table: |
| (2) | Calculated as Adjusted EBITDA as a percentage of operating revenue. |
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL INFORMATION
(dollars in thousands)
(unaudited)
| Three Months Ended December 31, 2015 |
Three Months Ended December 31, 2014 |
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
|||||||||||||
| Net income attributable to |
||||||||||||||||
| William Lyon Homes |
$ | 26,295 | $ | 18,005 | $ | 57,336 | $ | 44,625 | ||||||||
| Provision for income taxes |
11,026 | 11,018 | 26,806 | 23,797 | ||||||||||||
| Interest expense |
||||||||||||||||
| Interest incurred |
20,307 | 26,741 | 76,222 | 65,559 | ||||||||||||
| Interest capitalized |
(20,307 | ) | (26,741 | ) | (76,222 | ) | (65,559 | ) | ||||||||
| Amortization of capitalized interest included in cost of sales |
14,666 | 10,014 | 38,416 | 26,510 | ||||||||||||
| Stock based compensation |
1,742 | 3,342 | 6,570 | 6,114 | ||||||||||||
| Depreciation and amortization |
727 | 801 | 2,663 | 6,041 | ||||||||||||
| Transaction expenses |
— | 64 | — | 5,832 | ||||||||||||
| Non-cash purchase accounting adjustments |
8,478 | 5,891 | 28,919 | 9,979 | ||||||||||||
| Cash distributions of income from unconsolidated joint ventures |
378 | 207 | 1,075 | 353 | ||||||||||||
| Equity in income of unconsolidated joint ventures |
(1,458 | ) | (409 | ) | (3,239 | ) | (555 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 61,854 | $ | 48,933 | $ | 158,546 | $ | 122,696 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||