William Lyon Homes Reports First Quarter 2013 Results

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William Lyon Homes Reports First Quarter 2013 Results

Financial Highlights

2013 First Quarter and Comparison to 2012 First Quarter


Net loss available to common stockholders of $(3.5) million, or $(0.03) per share

Consolidated operating revenue of $80.9 million, up 84%

Homebuilding gross margin of $13.1 million, up 217%

Homebuilding gross margin percentage of 17.1%, up 410 basis points

New home deliveries of 268 homes, up 109%

Net new home orders of 361, up 12%

Backlog of homes sold but not closed of 498, up 50%

Dollar amount of backlog of homes sold but not closed of $170.8 million, up 115%

Adjusted EBITDA of $4.6 million, an increase of 150%

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- William Lyon Homes reported improved operating results for the first quarter ended March 31, 2013. Home sales revenue increased 140% to $76.4 million for the quarter ended March 31, 2013, or the 2013 period, as compared to $31.8 million for the quarter ended March 31, 2012, or the 2012 period. The increase in revenues is due to a 109% increase in deliveries, as well as a 15% increase in average sales price of homes closed. The increase in deliveries was driven by a 192% increase in the number of homes in backlog at the beginning of the 2013 period compared to the 2012 period. On a same store basis, which represents projects that were open during the comparable periods, average sales prices increased 8% from $299,200 in the first quarter of 2012 to $323,600 in the first quarter of 2013.

Net new home orders for the 2013 period were 361, up 12%, from 321 for the 2012 period. The increase in net new home orders is primarily attributable to a full quarter of results from our Colorado division of 49 orders, and an increase of 63% in Nevada. Our total orders for Southern California and Northern California decreased 18% and 4%, respectively, with an increase on a sales per community basis, of 64% in Southern California and 93% in Northern California.

Due to improving revenues and absorption, which translates into lower period costs, the Company reported improved adjusted homebuilding gross margins to 23.2% during the 2013 period, compared to 20.8% in the 2012 period. In addition, our divisions have shown improvement in homebuilding gross margins during the period compared to the fourth quarter of 2012, including our Southern California division which is up 250 basis points, Northern California which is up 50 basis points, Arizona which is up 330 basis points and Nevada which is up 260 basis points.

As of March 31, 2013, the Company reported backlog units of 498, a 50% increase compared to 332 units as of March 31, 2012. In addition, the dollar value of homes in backlog climbed to $170.8 million, a 115% increase over $79.4 million as of March 31, 2012. As of April 28, 2013, the Company had units in backlog of over 550 units with a value of over $200 million. The Company continued to add to its lot supply, ending the quarter with over 13,000 lots owned and controlled.

Operating loss improved to $(0.8) million during the 2013 period from $(5.5) million in the combined 2012 period. The Company recorded net loss available to common stockholders of $(3.5) million, or $(0.03) per share, in the 2013 period, compared to prior year net loss available to common stockholders of $(5.4) million, or $(0.06) per share in the Successor period, as defined below. The Company improved its adjusted EBITDA 150% to $4.6 million during the 2013 period, compared to negative adjusted EBITDA of $(9.2) million in the combined 2012 period.

Financial data included herein as of December 31, 2012, includes Colorado operations from December 7, 2012 (date of acquisition) through December 31, 2012. There were no operations in our Colorado division for the three months ended March 31, 2012, therefore quarter over quarter comparisons are not meaningful ("N/M") as indicated in the comparative tables in a schedule attached to this release.

Selected financial and operating information for the Company is set forth in greater detail in a schedule attached to this release. The Company will hold a conference call on Friday, May 3, 2013 at 11:00 a.m. Pacific Time to discuss the first quarter of 2013 results. The dial-in number is (800) 237-9752 (enter passcode number 98631883). Participants may call in beginning at 10:45 a.m. Pacific Time. In addition, the call will be broadcast from William Lyon Homes' website at www.lyonhomes.com in the "Investor Relations" section of the site. The call will be recorded and replayed beginning on May 3, 2013 at 1:00 p.m. Pacific Time through midnight on May 31, 2013. The dial-in number for the replay is (888) 286-8010 (enter passcode number 66098165). Replays of the call will also be available on the Company's website approximately two hours after broadcast.

William Lyon Homes is one of the largest Western U.S. regional homebuilders, primarily engaged in the design, construction, marketing and sale of new single-family detached and attached homes in California, Arizona, Nevada and Colorado. The Company's corporate headquarters are located in Newport Beach, California. For more information about the Company and its new home developments, please visit the Company's web-site at www.lyonhomes.com.

Certain statements contained in this release that are not historical information contain forward-looking statements.The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied.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 general economic conditions and in the markets in which the Company competes, terrorism or hostilities involving the United States, changes in mortgage and other interest rates, changes in prices of homebuilding materials, weather conditions, the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements, the availability of labor and homebuilding materials, changes in governmental laws and regulations, the timing of receipt of regulatory approvals and the opening of projects, and the availability and cost of land for future development, as well as the other factors discussed in the Company's reports filed with the Securities and Exchange Commission.

As a result of the consummation of the Prepackaged Joint Plan of Reorganization on February 25, 2012, the Company adopted Fresh Start Accounting in accordance with Accounting Standards Codification No. 852, Reorganizations. Accordingly, the financial statement information prior to February 25, 2012 is not comparable with the financial statement information for periods on and after February 25, 2012. Any reference hereinafter to the "Successor" reflects the operations of the Company post-emergence from February 25, 2012 through March 31, 2012 and any reference to the "Predecessor" refers to the operations of the Company pre-emergence prior to February 25, 2012.

 

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

 
   

Three Months Ended March 31,

2013

 

2012

 

Consolidated

Combined

Percentage %

TotalTotalChange
Selected Financial Information
(dollars in thousands)
Homes closed 268  128 109%
Home sales revenue$76,434$31,796140%
Cost of sales (excluding interest) (58,696) (25,174)133%
Adjusted homebuilding gross margin (1)$17,738 $6,622 168%

Adjusted homebuilding gross margin
percentage (1)

 23.2% 20.8%11%
Interest in cost of sales (4,632) (2,487)86%
Gross margin$13,106 $4,135 217%
Gross margin percentage 17.1% 13.0%32%
 
Number of homes closed
Southern California2223(4%)
Northern California312429%
Arizona1005292%
Nevada6629128%
Colorado 49  - N/M 
Total 268  128 109%
 
Average sales price of homes closed
Southern California$461,200$484,400(5%)
Northern California323,200282,70014%
Arizona216,300155,80039%
Nevada223,700198,80013%
Colorado 405,700  - N/M 
Total$285,200 $248,400 15%
 
Number of net new home orders
Southern California6883(18%)
Northern California5355(4%)
Arizona93123(24%)
Nevada986063%
Colorado 49  - N/M 
Total 361  321 12%
 
Average number of sales locations during period
Southern California48(50%)
Northern California24(50%)
Arizona62200%
Nevada660%
Colorado 5  - N/M 
Total 23  20 15%
 
 

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

   
As of March 31,
2013 2012 
ConsolidatedCombinedPercentage %
TotalTotalChange

Backlog of homes sold but not
closed at end of period

Southern California7882(5%)
Northern California5056(11%)
Arizona16514613%
Nevada12348156%
Colorado 82 -N/M 
Total 498 33250%
 

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

Southern California$46,513$34,02537%
Northern California17,56117,2312%
Arizona40,88920,369101%
Nevada33,8327,783335%
Colorado 32,003 -N/M 
Total$170,798$79,408115%
 

Lots owned and controlled at end of
period

Lots owned
Southern California1,09269058%
Northern California265743(64%)
Arizona5,9826,142(3%)
Nevada2,8452,6477%
Colorado 498 -N/M 
Total 10,682 10,2225%
 
Lots controlled
Southern California96307(69%)
Northern California637-100%
Arizona1,396-100%
Nevada192-100%
Colorado 208 -N/M 
Total 2,529 307724%
 

Total lots owned and
controlled

Southern California1,18899719%
Northern California90274321%
Arizona7,3786,14220%
Nevada3,0372,64715%
Colorado 706 -N/M 
Total 13,211 10,52925%
 
 

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(unaudited)

 
   Successor Predecessor
Three Period fromPeriod from
MonthsFebruary 25January 1
Endedthroughthrough
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