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8-K - 8-K - RYLAND GROUP INCa13-17116_18k.htm

Exhibit 99

 

 

 

 

 

 

 

 

News Release

 

 

The Ryland Group, Inc.

  www.ryland.com

 

 

 

 

FOR IMMEDIATE RELEASE

 

CONTACT:

Drew Mackintosh, VP, Investor Relations and

 

 

 

Corporate Communications (805) 367-3722

 

RYLAND REPORTS RESULTS FOR THE SECOND QUARTER OF 2013

 

WESTLAKE VILLAGE, Calif. (July 24, 2013) — The Ryland Group, Inc. (NYSE: RYL), today announced results for its quarter ended June 30, 2013.  Items of note included:

·                 Net income from continuing operations totaled $231.2 million, or $4.16 per diluted share, for the second quarter of 2013. Excluding a reversal of the deferred tax asset valuation allowance of $187.5 million, the Company’s net income totaled $43.8 million, or $0.80 per diluted share, for the quarter ended June 30, 2013, compared to net income of $6.0 million, or $0.14 per diluted share, for the same period in 2012;

·                 Revenues totaled $493.0 million for the quarter ended June 30, 2013, representing a 67.8 percent increase from $293.8 million for the quarter ended June 30, 2012;

·                 New orders increased 56.7 percent to 2,191 units for the second quarter of 2013 from 1,398 units for the second quarter of 2012.  New order dollars rose 77.9 percent to $676.7 million for the second quarter of 2013 from $380.3 million for the same period in 2012;

·                 Average monthly sales absorption rate was 2.9 homes per community for the quarter ended June 30, 2013, versus 2.2 homes per community for the quarter ended June 30, 2012;

·                 Closings increased 48.8 percent to 1,659 units for the quarter ended June 30, 2013, compared to 1,115 units for the same period in the prior year;

·                 Backlog rose 61.0 percent to 3,667 units at June 30, 2013, from 2,277 units at June 30, 2012;

·                 Active communities increased 24.4 percent to 260 communities at June 30, 2013, from 209 communities at June 30, 2012;

·                 Average closing price increased 13.0 percent to $287,000 for the quarter ended June 30, 2013, from $254,000 for the same period in 2012;

·                 Average cancellation rate of 14.0 percent for the quarter ended June 30, 2013, versus 20.0 percent for the same period in 2012;

·                 Housing gross profit margin was 20.4 percent for the second quarter of 2013, compared to 18.7 percent for the second quarter of 2012;

·                 Controlled lots, including lots held in unconsolidated joint ventures, increased 42.6 percent to 36,748 lots at June 30, 2013, compared to 25,774 lots at June 30, 2012.  At June 30, 2013, optioned lots were 44.2 percent of total lots controlled;

·                 Selling, general and administrative expense totaled 12.3 percent of homebuilding revenues for the second quarter of 2013, compared to 16.3 percent for the second quarter of 2012;

·                 Cash, cash equivalents and marketable securities totaled $705.4 million at June 30, 2013; and

·                 Net debt-to-capital ratio was 47.0 percent at June 30, 2013, compared to 50.8 percent at December 31, 2012.

 

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RYLAND SECOND-QUARTER RESULTS

 

RESULTS FOR THE SECOND QUARTER OF 2013

For the quarter ended June 30, 2013, the Company reported net income from continuing operations of $231.2 million, or $4.16 per diluted share.  Excluding a reversal of the deferred tax asset valuation allowance of $187.5 million, the Company’s net income totaled $43.8 million, or $0.80 per diluted share, for the quarter ended June 30, 2013, compared to net income of $6.0 million, or $0.14 per diluted share, for the same period in 2012.

The homebuilding segments reported pretax earnings of $43.8 million for the second quarter of 2013, compared to pretax earnings of $9.9 million for the same period in 2012.  This increase was primarily due to a rise in closing volume, higher housing gross profit margin and a reduced selling, general and administrative expense ratio.

Homebuilding revenues increased 68.0 percent to $478.0 million for the second quarter of 2013, compared to $284.6 million for the same period in 2012.  This rise in homebuilding revenues was primarily attributable to a 48.8 percent increase in closings that totaled 1,659 units for the quarter ended June 30, 2013, compared to 1,115 units for the same period in the prior year, as well as to a 13.0 percent higher average closing price, which was $287,000 for the second quarter of 2013, versus $254,000 for the same period in 2012.  Homebuilding revenues for the second quarter of 2013 included $1.3 million from land sales, which resulted in pretax earnings of $447,000, compared to homebuilding revenues for the second quarter of 2012 that included $947,000 from land sales, which resulted in pretax earnings of $330,000.

New orders increased 56.7 percent to 2,191 units for the quarter ended June 30, 2013, compared to new orders of 1,398 units for the same period in 2012.  The Company had an average monthly sales absorption rate of 2.9 homes per community for the quarter ended June 30, 2013, versus 2.2 homes per community for the quarter ended June 30, 2012, and an average cancellation rate of 14.0 percent for the quarter ended June 30, 2013, versus 20.0 percent for the same period in 2012.  For the second quarter of 2013, new order dollars increased 77.9 percent to $676.7 million from $380.3 million for the second quarter of 2012.  At June 30, 2013, backlog increased 61.0 percent to 3,667 units from 2,277 units at June 30, 2012.  At the end of the second quarter of 2013, the dollar value of the Company’s backlog was $1.1 billion, reflecting an 80.1 percent rise from the end of the second quarter of the prior year.

Housing gross profit margin was 20.4 percent for the quarter ended June 30, 2013, compared to 18.7 percent for the quarter ended June 30, 2012.  This improvement in housing gross profit margin was primarily attributable to a relative decline in direct construction costs and to higher leverage of direct overhead expense, which was due to an increase in the number of homes delivered and to a higher average closing price, partially offset by increased land costs.  For the second quarter of 2013, sales incentives and price concessions totaled 7.3 percent of housing revenues, compared to 10.4 percent for the same period in 2012.

Selling, general and administrative expense totaled 12.3 percent of homebuilding revenues for the second quarter of 2013, compared to 16.3 percent for the second quarter of 2012.  This decrease in the selling,

 

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RYLAND SECOND-QUARTER RESULTS

 

general and administrative expense ratio was primarily attributable to higher leverage resulting from increased revenues.

The homebuilding segments recorded $3.1 million of interest expense during the second quarter of 2013, compared to $4.2 million during the second quarter of 2012.  This decrease in interest expense from the second quarter of 2012 was primarily due to the capitalization of a greater amount of interest incurred during the second quarter of 2013, which resulted from a higher level of inventory under development, partially offset by an overall increase in interest incurred on senior notes.

During the second quarter of 2013, the Company used $145.8 million of cash for operating activities, used $40.1 million of cash for investing activities, and provided $267.5 million of cash from the issuance of convertible senior notes and $3.1 million from other financing activities.

For the quarter ended June 30, 2013, the financial services segment reported pretax earnings of $7.6 million, compared to pretax earnings of $2.9 million for the same period in 2012.  This improvement was primarily attributable to an increase in the locked loan pipeline, which was partly due to an acceleration in the timing of loan locks during the quarter, a rise in origination volume and higher title income, partially offset by a rise in personnel expense.

 

RESULTS FOR THE FIRST SIX MONTHS OF 2013

For the six months ended June 30, 2013, the Company reported net income from continuing operations of $253.2 million, or $4.66 per diluted share.  Excluding a reversal of the deferred tax asset valuation allowance of $187.5 million, the Company’s net income totaled $65.8 million, or $1.23 per diluted share, compared to net income of $3.0 million, or $0.07 per diluted share, for the same period in 2012.  The Company had pretax charges that totaled $561,000 primarily related to write-offs for the six months ended June 30, 2013, compared to pretax charges that totaled $2.5 million primarily related to inventory valuation adjustments and write-offs for the same period in 2012.

The homebuilding segments reported pretax earnings of $67.6 million for the first six months of 2013, compared to pretax earnings of $11.0 million for the same period in 2012.  This increase was primarily due to a rise in closing volume; higher housing gross profit margin, including lower inventory valuation adjustments; and a reduced selling, general and administrative expense ratio.

Homebuilding revenues increased 70.3 percent to $841.5 million for the first six months of 2013, compared to $494.1 million for the same period in 2012.  This rise in homebuilding revenues was primarily attributable to a 53.7 percent increase in closings that totaled 2,966 units for the six months ended June 30, 2013, compared to 1,930 units for the same period in the prior year, as well as to an 11.0 percent higher average closing price, which was $283,000 for the first six months of 2013, versus $255,000 for the same period in 2012.  Homebuilding revenues for the first six months of 2013 included $3.4 million from land sales, which

 

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RYLAND SECOND-QUARTER RESULTS

 

resulted in pretax earnings of $1.4 million, compared to homebuilding revenues for the first six months of 2012 that included $1.7 million from land sales, which resulted in pretax earnings of $629,000.

New orders increased 55.6 percent to 4,242 units for the six months ended June 30, 2013, compared to new orders of 2,726 units for the same period in 2012.  The Company had an average monthly sales absorption rate of 2.8 homes per community for the six months ended June 30, 2013, versus 2.2 homes per community for the six months ended June 30, 2012, and an average cancellation rate of 14.7 percent for the six months ended June 30, 2013, versus 19.0 percent for the same period in 2012.  For the first six months of 2013, new order dollars increased 76.7 percent to $1.3 billion from $725.5 million for the first six months of 2012.

Housing gross profit margin was 20.0 percent for the six months ended June 30, 2013, compared to 18.2 percent for the six months ended June 30, 2012.  This improvement in housing gross profit margin was primarily attributable to a relative decline in direct construction costs; lower inventory valuation adjustments; and higher leverage of direct overhead expense, which was due to an increase in the number of homes delivered and to a higher average closing price, partially offset by increased land costs.  For the first six months of 2013, sales incentives and price concessions totaled 7.6 percent of housing revenues, compared to 10.6 percent for the same period in 2012.

Selling, general and administrative expense totaled 12.9 percent of homebuilding revenues for the first six months of 2013, compared to 17.0 percent for the first six months of 2012.  This decrease in the selling, general and administrative expense ratio was primarily attributable to higher leverage resulting from increased revenues.

The homebuilding segments recorded $6.8 million of interest expense during the first six months of 2013, compared to $7.7 million during the first six months of 2012.  This decrease in interest expense from the first six months of 2012 was primarily due to the capitalization of a greater amount of interest incurred during the first six months of 2013, which resulted from a higher level of inventory under development, partially offset by an overall increase in interest incurred on senior notes.

For the six months ended June 30, 2013, the financial services segment reported pretax earnings of $11.9 million, compared to pretax earnings of $3.6 million for the same period in 2012.  This improvement was primarily attributable to increases in locked loan pipeline and origination volumes and to higher title income, partially offset by a rise in personnel and indemnification expenses.

 

DEFERRED TAX ASSET VALUATION ALLOWANCE

During the second quarter of 2013, the Company concluded that it was more likely than not that the valuation allowance against its deferred tax assets will be realized.  This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative, including such factors as five consecutive quarters of earnings, the expectation of the Company’s continued profitability and signs of recovery in the

 

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RYLAND SECOND-QUARTER RESULTS

 

housing market.  Accordingly, the Company reversed $187.5 million of its deferred tax asset valuation allowance.

 

DEBT ISSUANCE

In May 2013, the Company issued $267.5 million aggregate principal amount of its 0.25 percent convertible senior notes due June 2019.  The proceeds will be used for general corporate purposes.

 

LIONSGATE HOMES ACQUISITION

In June 2013, the Company acquired the Dallas, Texas, operations and assets of LionsGate Homes.  This acquisition has allowed the Company to re-enter the Dallas market and has provided it with 787 lots and homes for future sale, as well as 154 homes currently sold.  For the three and six months ended June 30, 2013, there were 177 new orders and 17 closings related to this acquisition.

 

SUBSEQUENT EVENT – CORNELL HOMES ACQUISITION

In July 2013, the Company acquired the operations and assets of Cornell Homes, one of the Philadelphia market’s largest private homebuilders.  This acquisition provides the Company with ongoing operations in the Tri-state area with approximately 97 homes sold and available for delivery, 8 decorated models and 1,716 additional lots for future sale.

 

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RYLAND SECOND-QUARTER RESULTS

 

Headquartered in Southern California, Ryland is one of the nation’s largest homebuilders and a leading mortgage-finance company.  Since its founding in 1967, Ryland has built more than 300,000 homes and financed more than 250,000 mortgages.  The Company currently operates in 14 states across the country and is listed on the New York Stock Exchange under the symbol “RYL.”  For more information, please visit www.ryland.com.

 

Note:  Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties which include, among others:

 

·                 economic changes nationally or in the Company’s local markets, including volatility and increases in interest rates, the impact of, and changes in, governmental stimulus, tax and deficit reduction programs, inflation, changes in consumer demand and confidence levels and the state of the market for homes in general;

·                 changes and developments in the mortgage lending market, including revisions to underwriting standards for borrowers and lender requirements for originating and holding mortgages, changes in government support of and participation in such market, and delays or changes in terms and conditions for the sale of mortgages originated by the Company;

·                 the availability and cost of land and the future value of land held or under development;

·                 increased land development costs on projects under development;

·                 shortages of skilled labor or raw materials used in the production of homes;

·                 increased prices for labor, land and materials used in the production of homes;

·                 increased competition;

·                 failure to anticipate or react to changing consumer preferences in home design;

·                 increased costs and delays in land development or home construction resulting from adverse weather conditions or other factors;

·                 potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations or governmental policies (including those that affect zoning, density, building standards, the environment and the residential mortgage industry);

·                delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company’s communities and land activities;

·                 changes in the Company’s effective tax rate and assumptions and valuations related to its tax accounts;

·                 the risk factors set forth in the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly report on Form 10-Q; and

·                 other factors over which the Company has little or no control.

 

###

 

Four financial-statement pages to follow.

 



 

THE RYLAND GROUP, INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(in thousands, except share data)

 

 

 

Three months ended June 30,

 

 

 

Six months ended June 30,

 

 

 

2013

 

2012

 

 

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

Homebuilding

 

$

477,991

 

$

284,593

 

 

 

$

841,492

 

$

494,128

 

Financial services

 

15,004

 

9,176

 

 

 

26,183

 

15,510

 

TOTAL REVENUES

 

492,995

 

293,769

 

 

 

867,675

 

509,638

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

380,074

 

231,130

 

 

 

672,410

 

403,820

 

Selling, general and administrative

 

58,744

 

46,507

 

 

 

108,970

 

83,895

 

Financial services

 

7,378

 

6,232

 

 

 

14,236

 

11,921

 

Interest

 

3,081

 

4,180

 

 

 

6,843

 

7,749

 

TOTAL EXPENSES

 

449,277

 

288,049

 

 

 

802,459

 

507,385

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

 

 

 

 

 

 

 

 

 

Gain from marketable securities, net

 

561

 

519

 

 

 

1,266

 

965

 

TOTAL OTHER INCOME

 

561

 

519

 

 

 

1,266

 

965

 

Income from continuing operations before taxes

 

44,279

 

6,239

 

 

 

66,482

 

3,218

 

Tax (benefit) expense

 

(186,952

)

190

 

 

 

(186,753

)

190

 

NET INCOME FROM CONTINUING OPERATIONS

 

231,231

 

6,049

 

 

 

253,235

 

3,028

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations, net of taxes

 

(37

)

223

 

 

 

76

 

(1,864

)

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

231,194

 

$

6,272

 

 

 

$

253,311

 

$

1,164

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

5.01

 

$

0.14

 

 

 

$

5.52

 

$

0.07

 

Discontinued operations

 

0.00

 

0.00

 

 

 

0.00

 

(0.04

)

Total

 

5.01

 

0.14

 

 

 

5.52

 

0.03

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

4.16

 

0.14

 

 

 

4.66

 

0.07

 

Discontinued operations

 

0.00

 

0.00

 

 

 

0.00

 

(0.04

)

Total

 

$

4.16

 

$

0.14

 

 

 

$

4.66

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

Basic

 

46,035,775

 

44,627,548

 

 

 

45,736,648

 

44,551,441

 

Diluted

 

55,690,331

 

48,570,825

 

 

 

54,569,842

 

44,938,772

 

 



 

THE RYLAND GROUP, INC. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

 

June 30, 2013

 

 

December 31, 2012

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

 

 

 

 

 

Cash and cash equivalents

 

$

264,589

 

 

$

155,692

 

Restricted cash

 

78,656

 

 

70,893

 

Marketable securities, available-for-sale

 

362,194

 

 

388,020

 

Total cash, cash equivalents and marketable securities

 

705,439

 

 

614,605

 

Housing inventories

 

 

 

 

 

 

Homes under construction

 

654,542

 

 

459,269

 

Land under development and improved lots

 

669,988

 

 

573,975

 

Inventory held-for-sale

 

6,997

 

 

4,684

 

Consolidated inventory not owned

 

33,794

 

 

39,490

 

Total housing inventories

 

1,365,321

 

 

1,077,418

 

Property, plant and equipment

 

22,439

 

 

20,409

 

Mortgage loans held-for-sale

 

88,393

 

 

107,950

 

Net deferred taxes

 

187,473

 

 

-

 

Other

 

149,994

 

 

111,057

 

Assets of discontinued operations

 

32

 

 

2,480

 

TOTAL ASSETS

 

2,519,091

 

 

1,933,919

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Accounts payable

 

150,744

 

 

124,797

 

Accrued and other liabilities

 

168,566

 

 

147,358

 

Debt

 

1,400,085

 

 

1,134,468

 

Liabilities of discontinued operations

 

1,043

 

 

1,536

 

TOTAL LIABILITIES

 

1,720,438

 

 

1,408,159

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Preferred stock, $1.00 par value:

 

 

 

 

 

 

Authorized–10,000 shares Series A Junior
Participating Preferred, none outstanding

 

-

 

 

-

 

Common stock, $1.00 par value:

 

 

 

 

 

 

Authorized–199,990,000 shares

Issued–46,149,100 shares at June 30, 2013
(45,175,053 shares at December 31, 2012)

 

46,149

 

 

45,175

 

Retained earnings

 

737,008

 

 

458,669

 

Accumulated other comprehensive (loss) income

 

(883

)

 

92

 

TOTAL STOCKHOLDERS’ EQUITY
FOR THE RYLAND GROUP, INC.

 

782,274

 

 

503,936

 

NONCONTROLLING INTEREST

 

16,379

 

 

21,824

 

TOTAL EQUITY

 

798,653

 

 

525,760

 

TOTAL LIABILITIES AND EQUITY

 

$

2,519,091

 

 

$

1,933,919

 

 



 

THE RYLAND GROUP, INC. and Subsidiaries

SEGMENT INFORMATION (Unaudited)

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

EARNINGS (LOSS) BEFORE TAXES (in thousands)

 

 

 

 

 

 

 

 

 

Homebuilding

 

 

 

 

 

 

 

 

 

North

 

$

12,768

 

$

1,796

 

$

16,151

 

$

174

 

Southeast

 

12,017

 

2,497

 

19,357

 

3,388

 

Texas

 

8,794

 

4,784

 

13,844

 

8,309

 

West

 

10,232

 

838

 

18,223

 

(888

)

Financial services

 

7,626

 

2,944

 

11,947

 

3,589

 

Corporate and unallocated

 

(7,158

)

(6,620

)

(13,040

)

(11,354

)

Discontinued operations

 

(37

)

223

 

76

 

(1,864

)

Total

 

$

44,242

 

$

6,462

 

$

66,558

 

$

1,354

 

NEW ORDERS

 

 

 

 

 

 

 

 

 

Units

 

 

 

 

 

 

 

 

 

North

 

588

 

383

 

1,228

 

794

 

Southeast

 

697

 

437

 

1,401

 

854

 

Texas

 

581

 

335

 

970

 

708

 

West

 

325

 

243

 

643

 

370

 

Discontinued operations

 

-

 

17

 

1

 

46

 

Total

 

2,191

 

1,415

 

4,243

 

2,772

 

Dollars (in millions)

 

 

 

 

 

 

 

 

 

North

 

$

187

 

$

114

 

$

379

 

$

230

 

Southeast

 

194

 

107

 

371

 

200

 

Texas

 

177

 

89

 

294

 

184

 

West

 

119

 

70

 

238

 

111

 

Discontinued operations

 

-

 

5

 

-

 

11

 

Total

 

$

677

 

$

385

 

$

1,282

 

$

736

 

CLOSINGS

 

 

 

 

 

 

 

 

 

Units

 

 

 

 

 

 

 

 

 

North

 

498

 

316

 

826

 

540

 

Southeast

 

537

 

354

 

976

 

619

 

Texas

 

348

 

316

 

619

 

560

 

West

 

276

 

129

 

545

 

211

 

Discontinued operations

 

-

 

34

 

8

 

67

 

Total

 

1,659

 

1,149

 

2,974

 

1,997

 

Average closing price (in thousands)

 

 

 

 

 

 

 

 

 

North

 

$

296

 

$

272

 

$

294

 

$

274

 

Southeast

 

243

 

221

 

241

 

218

 

Texas

 

287

 

248

 

286

 

253

 

West

 

358

 

317

 

335

 

322

 

Discontinued operations

 

-

 

223

 

312

 

216

 

Total

 

$

287

 

$

253

 

$

283

 

$

254

 

OUTSTANDING CONTRACTS

 

 

 

 

 

June 30,

 

Units

 

 

 

 

 

2013

 

2012

 

North

 

 

 

 

 

1,021

 

674

 

Southeast

 

 

 

 

 

1,306

 

756

 

Texas

 

 

 

 

 

828

 

581

 

West

 

 

 

 

 

512

 

266

 

Discontinued operations

 

 

 

 

 

-

 

12

 

Total

 

 

 

 

 

3,667

 

2,289

 

Dollars (in millions)

 

 

 

 

 

 

 

 

 

North

 

 

 

 

 

$

325

 

$

203

 

Southeast

 

 

 

 

 

346

 

176

 

Texas

 

 

 

 

 

252

 

155

 

West

 

 

 

 

 

184

 

81

 

Discontinued operations

 

 

 

 

 

-

 

3

 

Total

 

 

 

 

 

$

1,107

 

$

618

 

Average price (in thousands)

 

 

 

 

 

 

 

 

 

North

 

 

 

 

 

$

318

 

$

302

 

Southeast

 

 

 

 

 

265

 

233

 

Texas

 

 

 

 

 

305

 

266

 

West

 

 

 

 

 

359

 

303

 

Discontinued operations

 

 

 

 

 

-

 

272

 

Total

 

 

 

 

 

$

302

 

$

270

 

 



 

THE RYLAND GROUP, INC. and Subsidiaries

FINANCIAL SERVICES SUPPLEMENTAL INFORMATION (Unaudited)

(in thousands, except origination data)

 

 

 

Three months ended June 30,

 

 

 

Six months ended June 30,

 

RESULTS OF OPERATIONS

 

2013

 

2012

 

 

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

Income from origination and sale of mortgage loans, net

 

$

12,130

 

$

7,102

 

 

 

$

21,116

 

$

11,726

 

Title, escrow and insurance

 

2,422

 

1,737

 

 

 

4,184

 

3,001

 

Interest and other

 

452

 

337

 

 

 

883

 

783

 

TOTAL REVENUES

 

15,004

 

9,176

 

 

 

26,183

 

15,510

 

EXPENSES

 

7,378

 

6,232

 

 

 

14,236

 

11,921

 

PRETAX EARNINGS

 

$

7,626

 

$

2,944

 

 

 

$

11,947

 

$

3,589

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail operations:

 

 

 

 

 

 

 

 

 

 

 

Originations (units)

 

1,006

 

747

 

 

 

1,720

 

1,299

 

Ryland Homes originations as a percentage of total originations

 

99.8%

 

100.0%

 

 

 

99.9%

 

100.0%

 

Ryland Homes origination capture rate

 

68.9%

 

69.8%

 

 

 

66.0%

 

70.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER CONSOLIDATED SUPPLEMENTAL INFORMATION (Unaudited)

 

 

 

 

 

 

 

(in thousands)

Three months ended June 30,

 

Six months ended June 30,

 

 

2013

 

2012

 

 

 

2013

 

2012

 

Interest incurred

 

$

16,990

 

$

14,926

 

 

 

$

33,795

 

$

29,107

 

Interest capitalized during the period

 

13,759

 

10,524

 

 

 

26,653

 

20,777

 

Amortization of capitalized interest included in cost of sales

 

12,576

 

9,813

 

 

 

23,690

 

17,632

 

Depreciation and amortization

 

4,833

 

3,432

 

 

 

8,873

 

6,433