44% Increase in Homebuilding Revenue; 28%
Increase in Net New Home Orders; 33% Increase in Dollar Value of
Orders; 19% Increase in Dollar Value of Backlog
William Lyon Homes (NYSE: WLH), a leading homebuilder in the
Western U.S., announced results for its first quarter ended March
31, 2018. On March 9, 2018, the Company completed its acquisition
(the “RSI Acquisition”) of RSI Communities, a Southern-California
and Texas-based homebuilder, and three related real estate assets
(together, “RSI Communities”). The Company’s consolidated results
for the first quarter ended March 31, 2018 include the financial
results of RSI Communities from the date of acquisition.
2018 First Quarter Highlights (Comparison to 2017 First
Quarter)
- Net income available to common
stockholders of $8.3 million, or $0.21 per diluted share
- Adjusted net income available to common
stockholders of $10.9 million, or $0.27 per diluted share, compared
to $4.1 million, or $0.11 per diluted share in the prior period, up
167% and 145%, respectively
- Pre-tax income of $15.4 million, up
123%
- Adjusted pre-tax income of $18.5
million, up 169%, which excludes transaction expenses of $3.1
million, before tax
- New home deliveries of 740 homes, up
48%
- Net new home orders of 1,106, up
28%
- Dollar value of orders of $602.7
million, up 33%
- Dollar value of homes in backlog of
$752.1 million, up 19%
- Units in backlog of 1,460, up 33%
- Average sales locations of 84, up
2%
- Active sales locations of 105 as of
March 31, 2018
- Average sales price (ASP) of new homes
delivered of $503,200, down 3%
- Home sales revenue of $372.4 million,
up 44%
- Homebuilding gross margin percentage of
17.5%
- Adjusted homebuilding gross margin
percentage of 22.7%
- SG&A percentage of 12.7%, compared
to 13.0%
- Adjusted EBITDA of $41.7 million, up
108%
“We executed on several strategic initiatives during the first
quarter of 2018, including the closing of the RSI acquisition,
marking our entry into Texas and enhancing our presence in Southern
California, while meaningfully expanding our exposure to the
attractive entry-level buyer segment, and executing a high-yield
offering to fund a portion of the acquisition purchase price and
refinance our nearest term senior notes maturities,” said Matthew
R. Zaist, President and Chief Executive Officer. “We also
experienced a strong start to the spring selling season and
delivered another quarter of year-over-year improvement in net new
home orders, which increased 28% to 1,106, and represents a monthly
absorption rate of 4.4 net new home orders per community, and an
associated dollar value of orders of $602.7 million, a 33% increase
over the same period last year. This strong trend continued into
April, with 481 net new home orders, or a monthly absorption rate
of 4.5.”
Mr. Zaist continued, “We are very pleased with our overall
financial results for the quarter, with significant improvements in
homebuilding revenues to $372.4 million, up 44%, adjusted pre-tax
income of $18.5 million, up 169%, adjusted net income of $10.9
million, up 167%, and adjusted earnings per share on a diluted
basis of $0.27, up 145%.”
Mr. Zaist added, “The strong start to 2018 and strategic
execution of the RSI acquisition position us well to achieve our
goals for the year, and our expectations for the full year include
new home deliveries of approximately 4,400 to 4,750 units, home
sales revenue of approximately $2.2 billion to $2.3 billion, and
pre-tax income before non-controlling interest of approximately
$175 million to $185 million, inclusive of RSI transaction expenses
and purchase accounting.”
Home sales revenue for the first quarter of 2018 was $372.4
million, as compared to $258.9 million in the year-ago period, an
increase of 44%, which was driven by an increase in deliveries of
48% to 740, partially offset by the decrease in average sale price
to $503,200, from $518,700, driven in part by the contribution from
lower priced communities associated with RSI projects for the three
weeks at the end of the quarter. Average sales price for William
Lyon Homes’ stand-alone business for the first quarter was
approximately $530,000. Contributions from the RSI Acquisition for
the last 23 calendar days of the first quarter consisted of 80 new
home deliveries and 101 net new home orders.
Homebuilding gross margin percentage for homes closed during the
first quarter of 2018 was 17.5%, up 190 basis points from prior
year. Excluding closings from the RSI Acquisition, homebuilding
gross margin percentage was 17.8%, up 220 basis points
year-over-year. Adjusted homebuilding gross margin percentage for
the quarter was 22.7%.
Sales and marketing expense during the first quarter of 2018 was
6.1% of homebuilding revenue, compared to 5.7% in the year-ago
quarter, which is primarily driven by the impact of the adoption of
ASC 606, which was adopted on January 1, 2018, requiring the
Company to record certain selling costs that were previously
recorded as cost of sales to sales and marketing expense. General
and administrative expenses were 6.6% of homebuilding revenue,
compared to 7.3% in the first quarter of 2017.
The dollar value of homes in backlog was $752.1 million as of
March 31, 2018, an increase of 19% compared to $634.2 million as of
March 31, 2017. The increase is driven by a 33% increase in units
in backlog to 1,460 units compared to 1,099 in the prior year. The
average sales price of homes in backlog decreased to $515,200 from
$577,100 in the prior year, due to a higher number of homes in
backlog from entry level buyers, which represent 46% of homes in
backlog.
RSI Communities Acquisition and Senior Notes Issuance
On March 9, 2018, the Company completed its previously announced
acquisition of RSI Communities, a Southern California- and
Texas-based homebuilder, and three additional related real estate
assets, for an aggregate cash purchase price of approximately $475
million, which included working capital adjustments upon closing.
The Company incurred certain costs in the first quarter related to
the transaction, in an amount of approximately $3.1 million on a
pre-tax basis, and an amount of approximately $2.6 million on an
after-tax basis.
Also on March 9, 2018, the Company issued $350.0 million in
aggregate principal amount of 6.00% Senior Notes due September 1,
2023. The Company used the proceeds from the offering to finance a
portion of the RSI Acquisition as described above, as well as to
repay all of the Company’s outstanding principal amount of $150.0
million 5.75% Senior Notes due 2019. With this most recent
refinancing transaction, the Company’s next maturity date for
Senior Notes is August 2022.
Balance Sheet Update
At quarter end, cash and cash equivalents totaled $50.5 million,
owned real estate inventories totaled $2.1 billion, total assets
were $2.6 billion and total equity was $853.7 million. Total debt
to book capitalization was 60.4%, and net debt to net book
capitalization was 59.5% at March 31, 2018, compared to 60.1% and
59.2% at March 31, 2017, and 54.5% and 49.6% at December 31, 2017,
respectively.
Conference Call
The Company will host a conference call to discuss these results
today, Tuesday, May 8, 2018 at 9:00 a.m. Pacific Time. The call
will be available via both the telephone at (855) 851-4524 or (720)
634-2900, conference ID #6481508, 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 May 15, 2018 by
dialing (855) 859-2056 or (404) 537-3406, conference ID #6481508. 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, and,
with the consummation of the RSI Acquisition, Texas. Its core
markets include Orange County, Los Angeles, the Inland Empire, the
San Francisco Bay Area, Phoenix, Las Vegas, Denver, Portland,
Seattle and, with the consummation of the RSI Acquisition, 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 103,000 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 pre-tax income, gross margin performance, backlog
conversion rates, operating and financial results for the second
quarter of 2018 and full year 2018 and beyond, community count
growth and project performance, market and industry trends, the
continued housing market recovery, 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
acquisition spending, financial services and ancillary business
performance and strategies; the anticipated benefits to be realized
from the RSI acquisition; the anticipated financial or operational
performance resulting from the RSI Communities transaction, and
estimated new home deliveries, home sales revenue and community
count on a combined Company basis. 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 Company’s ability to successfully
integrate RSI Communities’ homebuilding operations with its
existing operations; any adverse effect on the Company’s, or RSI
Communities’, business operations following the acquisition;
adverse weather conditions; the availability of labor and
homebuilding materials and increased construction cycle times; the
availability and timing of mortgage financing; 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 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 risks; 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; 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.
WILLIAM LYON HOMES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands except number of shares
and per share data)
(unaudited)
Three Three
Months Months Ended Ended March
31, March 31, 2018 2017 Operating revenue
Home sales $ 372,385 $ 258,854 Construction services 983
- 373,368 258,854
Operating costs Cost of sales — homes (307,308 ) (218,455 )
Construction services (983 ) - Sales and marketing (22,693 )
(14,705 ) General and administrative (24,521 ) (18,946 )
Transaction expenses (3,130 ) - Other (298 ) (440 )
(358,933 ) (252,546 ) Operating income 14,435 6,308
Equity in income of unconsolidated joint ventures 932 249 Other
income, net 35 345 Income before
extinguishment of debt 15,402 6,902 Loss on extinguishment of debt
- (21,828 ) Income (loss) before (provision
for) benefit from income taxes 15,402 (14,926 ) (Provision for)
benefit from income taxes (2,814 ) 5,630 Net
income (loss) 12,588 (9,296 ) Less: Net income attributable to
noncontrolling interests (4,260 ) (704 ) Net income
(loss) available to common stockholders $ 8,328 $ (10,000 )
Income (loss) per common share:
Basic $ 0.22 $ (0.27 ) Diluted $ 0.21 $ (0.27 ) Weighted average
common shares outstanding: Basic 37,931,256 36,908,320 Diluted
39,855,683 36,908,320
WILLIAM LYON HOMES
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares
and par value per share)
March 31,
December 31, 2018 2017 (unaudited)
ASSETS Cash and cash equivalents $ 50,473 $ 182,710
Receivables 14,018 10,223 Escrow proceeds receivable 1,552 3,319
Real estate inventories Owned 2,051,817 1,699,850 Not owned 282,169
- Investment in unconsolidated joint ventures 5,406 7,867 Goodwill
118,877 66,902 Intangibles, net of accumulated amortization of
$4,640 as of March 31, 2018 and December 31, 2017 6,700 6,700
Deferred income taxes 47,716 47,915 Lease right-of-use assets
14,757 14,454 Other assets, net 32,921 21,164 Total
assets $ 2,626,406 $ 2,061,104
LIABILITIES AND EQUITY
Accounts payable $ 88,853 $ 58,799 Accrued expenses 99,378 111,491
Liabilities from inventories not owned 282,169 - Revolving credit
facility 85,000 - Land notes payable - 589 Construction notes
payable 2,291 - Joint venture notes payable 84,955 93,926 53/4%
Senior Notes due April 15, 2019 - 149,362 7% Senior Notes due
August 15, 2022 346,924 346,740 6% Senior Notes due September 1,
2023 343,274 - 57/8% Senior Notes due January 31, 2025
439,903 439,567 1,772,747 1,200,474
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 March 31, 2018 and December 31, 2017 - - Common stock, Class A,
par value $0.01 per share; 150,000,000 shares authorized;
34,454,130 and 34,267,510 shares issued, 33,202,209 and 33,135,650
shares outstanding at March 31, 2018 and December 31, 2017,
respectively 345 344 Common stock, Class B, par value $0.01 per
share; 30,000,000 shares authorized; 4,817,394 shares issued and
outstanding at March 31, 2018 and December 31, 2017 48 48
Additional paid-in capital 447,770 454,286 Retained earnings
334,122 325,794 Total William Lyon Homes stockholders'
equity 782,285 780,472 Noncontrolling interests 71,374
80,158 Total equity 853,659 860,630 Total
liabilities and equity $ 2,626,406 $ 2,061,104
WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING
INFORMATION
(unaudited)
Three Months Ended March 31,
2018 2017 Consolidated
Consolidated Percentage % Total Total
Change Selected Financial Information (1) (dollars
in thousands) Homes closed 740 499
48 % Home sales revenue $ 372,385 $ 258,854 44 % Cost of sales
(excluding interest and purchase accounting adjustments)
(287,769 ) (206,847 ) 39 % Adjusted homebuilding gross
margin (2) $ 84,616 $ 52,007 63 % Adjusted
homebuilding gross margin percentage (2) 22.7 % 20.1
% 13 % Interest in cost of sales (18,804 ) (11,608 ) 62 % Purchase
accounting adjustments (735 ) - N/M
Gross margin $ 65,077 $ 40,399 61 % Gross margin
percentage 17.5 % 15.6 % 12 %
Number of
homes closed California 210 121 74 % Arizona 105 94 12 % Nevada
74 48 54 % Colorado 93 38 145 % Washington 94 70 34 % Oregon 104
128 (19 %) Texas 60 - N/M Total
740 499 48 %
Average sales
price of homes closed California $ 642,000 $ 677,400 (5 %)
Arizona 305,100 284,200 7 % Nevada 664,500 636,400 4 % Colorado
430,800 561,300 (23 %) Washington 581,600 621,100 (6 %) Oregon
450,500 428,300 5 % Texas 246,200 - N/M
Company Average $ 503,200 $ 518,700 (3 %)
Number
of net new home orders California 283 265 7 % Arizona 108 128
(16 %) Nevada 109 77 42 % Colorado 144 61 136 % Washington 179 152
18 % Oregon 209 182 15 % Texas 74 - N/M
Total 1,106 865 28 %
Average number of sales locations during period California
22 24 (8 %) Arizona 6 9 (33 %) Nevada 12 11 9 % Colorado 15 11 36 %
Washington 9 7 29 % Oregon 15 20 (25 %) Texas 5
- N/M Total 84 82
2 % (1) For the 2018 period presented,
the Company is reporting in seven segments: California, Arizona,
Nevada, Colorado, Washington, Oregon, and Texas. Texas is a new
reporting segment resulting from the RSI Acquisition completed in
2018. For the 2017 period presented, the Company reported 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 March 31, 2018
2017
Consolidated
Consolidated Percentage % Total Total
Change Backlog of homes sold but not closed at end of
period California 388 368 5 % Arizona 164 238 (31 %) Nevada 121
88 38 % Colorado 223 98 128 % Washington 176 134 31 % Oregon 177
173 2 % Texas 211 - N/M Total 1,460
1,099 33 %
Dollar amount of homes sold but not
closed at end of period (in thousands) California $ 282,484 $
296,406 (5 %) Arizona 51,055 71,258 (28 %) Nevada 80,379 64,865 24
% Colorado 90,312 51,679 75 % Washington 115,375 80,619 43 % Oregon
76,433 69,413 10 % Texas 56,093 - N/M Total $
752,131 $ 634,240 19 %
Lots owned and controlled at end
of period Lots owned (1) California 3,634 1,492 144 %
Arizona 4,116 4,838 (15 %) Nevada 2,910 2,985 (3 %) Colorado 1,266
1,442 (12 %) Washington 1,377 1,225 12 % Oregon 2,226 1,422 57 %
Texas 3,345 - N/M Total 18,874
13,404 41 %
Lots controlled California 1,985 1,084 83
% Arizona 651 - N/M Nevada 12 38 (68 %) Colorado 822 77 968 %
Washington 793 1,108 (28 %) Oregon 1,910 1,929 (1 %) Texas
3,763 - N/M Total 9,936 4,236 135 %
Total lots owned and controlled California 5,619
2,576 118 % Arizona 4,767 4,838 (1 %) Nevada 2,922 3,023 (3 %)
Colorado 2,088 1,519 37 % Washington 2,170 2,333 (7 %) Oregon 4,136
3,351 23 % Texas 7,108 - N/M Total
28,810 17,640 63 % (1)
Certain lots in California and Texas are
consolidated on the Company’s accompanying balance sheet in
accordance with FASB ASC Topic 470, Debt (“ASC 470”).
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL
INFORMATION
(dollars in thousands)
(unaudited)
Three Three
Months Months Ended Ended March
31, March 31, 2018 2017 Net income
(loss) available to common stockholders
$ 8,328 $ (10,000 ) Net income, adjusted for
transaction expenses and loss on extinguishment of debt, net of tax
benefit (4) $ 10,885 $ 4,076 Net cash provided by (used in)
operating activities $ 98,028 $ (41,381 ) Interest incurred $
19,258 $ 19,424 Adjusted EBITDA (2) $ 41,712 $ 20,041 Adjusted
EBITDA Margin (3) 11.2 % 7.7 % Ratio of adjusted EBITDA to interest
incurred 2.2 1.0
Balance Sheet Data
March 31, December 31, 2018
2017 Cash and cash equivalents $
50,473 $ 182,710 Total William Lyon Homes stockholders’
equity 782,285 780,472 Noncontrolling interests 71,374 80,158 Total
debt 1,302,347 1,030,184 Total capital
$ 2,156,006 $ 1,890,814 Ratio of debt to total
capital 60.4 % 54.5 % Ratio of net debt to total capital (net of
cash) 59.5 % 49.6 % (1) Included in lots owned
are 863 lots in California and 469 lots in Texas that are
associated with a land banking transaction that is consolidated on
the Company’s accompanying balance sheet in accordance with ASC
470. (2) Adjusted EBITDA means net income (loss) available to
common stockholders plus (i) provision for (benefit from) 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)
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 (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 (loss)
income available to common stockholders to adjusted EBITDA is
provided in the following table: (3) Calculated as Adjusted EBITDA
as a percentage of operating revenue.
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL
INFORMATION
(dollars in thousands)
(unaudited)
Three Three Months
Months Ended Ended March 31, March
31, 2018 2017 Net income (loss)
available to common stockholders $ 8,328 $ (10,000 )
Provision for (benefit from) income
taxes
2,814 (5,630 ) Interest expense Interest incurred 19,258 19,424
Interest capitalized (19,258 ) (19,424 ) Amortization of
capitalized interest included in cost of sales 18,825 11,608 Stock
based compensation 3,181 1,676 Depreciation and amortization 2,056
449 Non-cash purchase accounting adjustments 735 - Cash
distributions of income from unconsolidated joint ventures 3,575
359 Equity in income of unconsolidated joint ventures (932 ) (249 )
Transaction expenses 3,130 - Loss on extinguishment of debt
- 21,828 Adjusted EBITDA $ 41,712 $
20,041
WILLIAM LYON HOMESSUPPLEMENTAL
FINANCIAL INFORMATION(dollars in
thousands)(unaudited)
(4)
Adjusted net income means net income
(loss) available to common stockholders plus transaction expenses
and loss for the extinguishment of the 8.5% Senior Notes. Adjusted
net income is not a financial measure prepared in accordance with
U.S. GAAP. Adjusted net income is presented herein because
management believes the presentation of adjusted net income
provides useful information to the Company’s investors regarding
the Company’s results of operations because adjusted net income
isolates the impact of the one-time, non-recurring transaction
expenses and infrequent extinguishment fees. Adjusted net income
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 net income (loss) is
provided in the following table:
Three Three
Months Months Ended Ended March
31, March 31, 2018 2017 Net income (loss)
available to common stockholders $ 8,328 $ (10,000) Add:
Transaction expenses 3,130 - Less: Income tax benefit applicable to
transaction expenses (573) - Add: Loss on extinguishment of debt -
21,828 Less: Income tax benefit applicable to loss on
extinguishment of debt - (7,752) Net income, adjusted for
transaction expenses and loss on extinguishment of debt, net of tax
benefits $ 10,885 $ 4,076 Diluted weighted average common shares
outstanding 39,855,683 38,360,335 (5) Adjusted net income excluding
noncontrolling interest per diluted share $ 0.27 $ 0.11
WILLIAM LYON HOMESSUPPLEMENTAL
FINANCIAL INFORMATION(dollars in
thousands)(unaudited)
Adjusted pre-tax income means income (loss) before (provision
for) benefit from income taxes plus transaction expenses and loss
for the extinguishment of the 8.5% Senior Notes. Adjusted pre-tax
income is not a financial measure prepared in accordance with U.S.
GAAP. Adjusted pre-tax income is presented herein because
management believes the presentation of adjusted pre-tax income
provides useful information to the Company’s investors regarding
the Company’s results of operations because adjusted pre-tax income
isolates the impact of the one-time, non-recurring transaction
expenses and infrequent extinguishment fees. Adjusted pre-tax
income 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 income (loss)
before (provision for) benefit from income taxes to adjusted
pre-tax income is provided in the following table:
Three Three Months
Months Ended Ended March 31, March
31, 2018 2017 Income (loss) before (provision
for) benefit from income taxes $ 15,402 $ (14,926) Add: Transaction
expenses 3,130 - Loss on extinguishment of debt - 21,828 Pre-tax
income, adjusted for transaction expenses and loss on
extinguishment of debt $ 18,532 $ 6,902 (5)
Diluted weighted average common shares outstanding as
presented on the Consolidated Statement of Operations excludes any
potentially issuable anti-dilutive shares due to the net loss
reported for the period presented. Additional dilutive shares have
been included in this calculation.
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version on businesswire.com: https://www.businesswire.com/news/home/20180508005681/en/
Investor/Media Contacts:Financial Profiles, Inc.Larry
Clark, 310-622-8223WLH@finprofiles.com
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