ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
33-0864902
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
|
|
|
4695 MacArthur Court, 8
th
Floor
Newport Beach, California
|
|
92660
|
(Address of principal executive offices)
|
|
(Zip Code)
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Large accelerated filer
|
¨
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Accelerated filer
|
x
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Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
|
|
Emerging Growth Company
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¨
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Class of Common Stock
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Outstanding at August 4, 2017
|
|
Common stock, Class A, par value $0.01
|
28,132,743
|
|
Common stock, Class B, par value $0.01
|
3,813,884
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|
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Page
No.
|
|
||
Item 1.
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Financial Statements as of June 30, 2017, and for the three and six months ended June 30, 2017 and 2016 (Unaudited)
|
|
|
||
|
||
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||
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 1.
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Financial Statements
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June 30,
2017 |
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December 31,
2016 |
||||
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(unaudited)
|
|
(as adjusted, refer to Note 1)
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents — Note 1
|
$
|
32,573
|
|
|
$
|
42,612
|
|
Receivables
|
8,332
|
|
|
9,538
|
|
||
Escrow proceeds receivable
|
39
|
|
|
85
|
|
||
Real estate inventories — Note 5
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1,863,092
|
|
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1,771,998
|
|
||
Investment in unconsolidated joint ventures — Note 3
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8,206
|
|
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7,282
|
|
||
Goodwill
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66,902
|
|
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66,902
|
|
||
Intangibles, net of accumulated amortization of $4,640 as of June 30, 2017 and December 31, 2016
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6,700
|
|
|
6,700
|
|
||
Deferred income taxes
|
75,280
|
|
|
75,751
|
|
||
Lease right-of-use assets
|
15,632
|
|
|
12,605
|
|
||
Other assets, net
|
18,865
|
|
|
17,283
|
|
||
Total assets
|
$
|
2,095,621
|
|
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$
|
2,010,756
|
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LIABILITIES AND EQUITY
|
|
|
|
||||
Accounts payable
|
$
|
78,792
|
|
|
$
|
74,282
|
|
Accrued expenses
|
81,657
|
|
|
92,395
|
|
||
Notes payable — Note 6:
|
|
|
|
|
|
||
Joint venture notes payable
|
98,411
|
|
|
102,076
|
|
||
Seller financing
|
20,055
|
|
|
24,692
|
|
||
Revolving credit facility
|
65,000
|
|
|
29,000
|
|
||
Subordinated amortizing notes due December 1, 2017— Note 6
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3,488
|
|
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7,225
|
|
||
5
3
/
4
% Senior Notes due April 15, 2019 — Note 6
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149,089
|
|
|
148,826
|
|
||
8
1
/
2
% Senior Notes due November 15, 2020 — Note 6
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—
|
|
|
422,817
|
|
||
7% Senior Notes due August 15, 2022 — Note 6
|
346,385
|
|
|
346,014
|
|
||
5
7
/
8
% Senior Notes due January 31, 2025 — Note 6
|
438,893
|
|
|
—
|
|
||
|
1,281,770
|
|
|
1,247,327
|
|
||
Commitments and contingencies — Note 12
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|
|
|
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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 June 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 29,290,550 and 28,909,781 shares issued, 28,132,743 and 27,907,724 shares outstanding at June 30, 2017 and December 31, 2016, respectively
|
290
|
|
|
290
|
|
||
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at June 30, 2017 and December 31, 2016
|
38
|
|
|
38
|
|
||
Additional paid-in capital
|
420,934
|
|
|
419,099
|
|
||
Retained earnings
|
286,613
|
|
|
277,659
|
|
||
Total William Lyon Homes stockholders’ equity
|
707,875
|
|
|
697,086
|
|
||
Noncontrolling interests — Note 2
|
105,976
|
|
|
66,343
|
|
||
Total equity
|
813,851
|
|
|
763,429
|
|
||
Total liabilities and equity
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$
|
2,095,621
|
|
|
$
|
2,010,756
|
|
|
|
||||||||||||||
|
Three
Months Ended June 30, 2017 |
|
Three
Months Ended June 30, 2016 |
|
Six
Months Ended June 30, 2017 |
|
Six
Months Ended June 30, 2016 |
||||||||
Operating revenue
|
|
|
|
|
|
|
|
||||||||
Home sales
|
$
|
422,633
|
|
|
$
|
325,059
|
|
|
$
|
681,487
|
|
|
$
|
586,354
|
|
Construction services — Note 1
|
59
|
|
|
594
|
|
|
59
|
|
|
3,724
|
|
||||
|
422,692
|
|
|
325,653
|
|
|
681,546
|
|
|
590,078
|
|
||||
Operating costs
|
|
|
|
|
|
|
|
||||||||
Cost of sales — homes
|
(353,057
|
)
|
|
(268,638
|
)
|
|
(571,512
|
)
|
|
(483,809
|
)
|
||||
Construction services — Note 1
|
(6
|
)
|
|
(548
|
)
|
|
(6
|
)
|
|
(3,372
|
)
|
||||
Sales and marketing
|
(21,284
|
)
|
|
(18,112
|
)
|
|
(35,989
|
)
|
|
(33,105
|
)
|
||||
General and administrative
|
(19,550
|
)
|
|
(16,685
|
)
|
|
(38,496
|
)
|
|
(34,519
|
)
|
||||
Other
|
(560
|
)
|
|
(487
|
)
|
|
(1,000
|
)
|
|
(810
|
)
|
||||
|
(394,457
|
)
|
|
(304,470
|
)
|
|
(647,003
|
)
|
|
(555,615
|
)
|
||||
Operating income
|
28,235
|
|
|
21,183
|
|
|
34,543
|
|
|
34,463
|
|
||||
Equity in income of unconsolidated joint ventures
|
1,213
|
|
|
1,194
|
|
|
1,462
|
|
|
2,375
|
|
||||
Other income, net
|
8
|
|
|
228
|
|
|
353
|
|
|
753
|
|
||||
Income before extinguishment of debt
|
29,456
|
|
|
22,605
|
|
|
36,358
|
|
|
37,591
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
(21,828
|
)
|
|
—
|
|
||||
Income before provision for income taxes
|
29,456
|
|
|
22,605
|
|
|
14,530
|
|
|
37,591
|
|
||||
Provision for income taxes — Note 9
|
(9,205
|
)
|
|
(7,519
|
)
|
|
(3,575
|
)
|
|
(12,564
|
)
|
||||
Net income
|
20,251
|
|
|
15,086
|
|
|
10,955
|
|
|
25,027
|
|
||||
Less: Net income attributable to noncontrolling interests
|
(1,297
|
)
|
|
(525
|
)
|
|
(2,001
|
)
|
|
(1,452
|
)
|
||||
Net income available to common stockholders
|
$
|
18,954
|
|
|
$
|
14,561
|
|
|
$
|
8,954
|
|
|
$
|
23,575
|
|
Income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.51
|
|
|
$
|
0.40
|
|
|
$
|
0.24
|
|
|
$
|
0.64
|
|
Diluted
|
$
|
0.49
|
|
|
$
|
0.38
|
|
|
$
|
0.23
|
|
|
$
|
0.62
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
37,051,967
|
|
|
36,786,268
|
|
|
36,980,540
|
|
|
36,719,057
|
|
||||
Diluted
|
38,298,624
|
|
|
38,356,722
|
|
|
38,231,201
|
|
|
38,302,047
|
|
|
William Lyon Homes Stockholders
|
|
|
|
|
|||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In
|
|
|
|
Non-
Controlling
|
|
|
|||||||||||||
|
Shares
|
|
Amount
|
|
Capital
|
|
Retained Earnings
|
|
Interests
|
|
Total
|
|||||||||||
Balance - December 31, 2016
|
32,724
|
|
|
$
|
328
|
|
|
$
|
419,099
|
|
|
$
|
277,659
|
|
|
$
|
66,343
|
|
|
$
|
763,429
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
8,954
|
|
|
2,001
|
|
|
10,955
|
|
|||||
Cash contributions from members of consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,291
|
|
|
51,291
|
|
|||||
Cash distributions to members of consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,659
|
)
|
|
(13,659
|
)
|
|||||
Shares remitted to Company to satisfy employee tax obligations
|
(74
|
)
|
|
—
|
|
|
(1,380
|
)
|
|
—
|
|
|
—
|
|
|
(1,380
|
)
|
|||||
Stock based compensation expense
|
455
|
|
|
—
|
|
|
3,215
|
|
|
—
|
|
|
—
|
|
|
3,215
|
|
|||||
Balance - June 30, 2017
|
33,105
|
|
|
$
|
328
|
|
|
$
|
420,934
|
|
|
$
|
286,613
|
|
|
$
|
105,976
|
|
|
$
|
813,851
|
|
|
Six
Months Ended June 30, 2017 |
|
Six
Months Ended June 30, 2016 |
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
10,955
|
|
|
$
|
25,027
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
891
|
|
|
1,005
|
|
||
Net change in deferred income taxes
|
471
|
|
|
(120
|
)
|
||
Stock based compensation expense
|
3,215
|
|
|
2,561
|
|
||
Equity in earnings of unconsolidated joint ventures
|
(1,462
|
)
|
|
(2,375
|
)
|
||
Distributions from unconsolidated joint ventures
|
702
|
|
|
617
|
|
||
Loss on extinguishment of debt
|
21,828
|
|
|
—
|
|
||
Net changes in operating assets and liabilities:
|
|
|
|
||||
Restricted cash
|
—
|
|
|
504
|
|
||
Receivables
|
1,042
|
|
|
1,817
|
|
||
Escrow proceeds receivable
|
46
|
|
|
740
|
|
||
Real estate inventories
|
(92,306
|
)
|
|
(123,186
|
)
|
||
Other assets
|
(2,939
|
)
|
|
1,870
|
|
||
Accounts payable
|
4,510
|
|
|
13,212
|
|
||
Accrued expenses
|
(13,765
|
)
|
|
3,423
|
|
||
Net cash used in operating activities
|
(66,812
|
)
|
|
(74,905
|
)
|
||
Investing activities
|
|
|
|
||||
Collection of related party note receivable
|
—
|
|
|
6,188
|
|
||
Purchases of property and equipment
|
(234
|
)
|
|
(619
|
)
|
||
Net cash (used in) provided by investing activities
|
(234
|
)
|
|
5,569
|
|
||
Financing activities
|
|
|
|
||||
Proceeds from borrowings on notes payable
|
49,478
|
|
|
82,869
|
|
||
Principal payments on notes payable
|
(53,143
|
)
|
|
(42,099
|
)
|
||
Redemption premium of 8.5% Senior Notes
|
(19,645
|
)
|
|
—
|
|
||
Principal payments of 8.5% Senior Notes
|
(425,000
|
)
|
|
—
|
|
||
Proceeds from issuance of 5.875% Senior Notes
|
446,468
|
|
|
—
|
|
||
Proceeds from borrowings on Revolver
|
190,000
|
|
|
120,000
|
|
||
Payments on Revolver
|
(154,000
|
)
|
|
(126,000
|
)
|
||
Principal payments on subordinated amortizing notes
|
(3,737
|
)
|
|
(3,374
|
)
|
||
Payment of deferred loan costs
|
(9,666
|
)
|
|
(214
|
)
|
||
Shares remitted to, or withheld by the Company for employee tax withholding
|
(1,380
|
)
|
|
(844
|
)
|
||
Excess income tax benefit from stock based awards
|
—
|
|
|
(178
|
)
|
||
Noncontrolling interest contributions
|
51,291
|
|
|
33,963
|
|
||
Noncontrolling interest distributions
|
(13,659
|
)
|
|
(5,226
|
)
|
||
Net cash provided by financing activities
|
57,007
|
|
|
58,897
|
|
||
Net decrease in cash and cash equivalents
|
(10,039
|
)
|
|
(10,439
|
)
|
||
Cash and cash equivalents — beginning of period
|
42,612
|
|
|
50,203
|
|
||
Cash and cash equivalents — end of period
|
$
|
32,573
|
|
|
$
|
39,764
|
|
Supplemental disclosures:
|
|
|
|
||||
Cash paid during the period for income taxes
|
$
|
16,930
|
|
|
$
|
2,210
|
|
Supplemental disclosures of non-cash investing and financing activities:
|
|
|
|
||||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
5,058
|
|
|
$
|
613
|
|
Issuance of note payable related to land acquisition
|
$
|
—
|
|
|
$
|
29,439
|
|
|
Six
Months Ended June 30, 2017 |
|
Six
Months Ended June 30, 2016 |
||||
Warranty liability, beginning of period
|
$
|
14,173
|
|
|
$
|
18,117
|
|
Warranty provision during period
|
3,954
|
|
|
3,288
|
|
||
Warranty payments during period
|
(6,006
|
)
|
|
(6,140
|
)
|
||
Warranty charges related to construction services projects
|
85
|
|
|
128
|
|
||
Warranty liability, end of period
|
$
|
12,206
|
|
|
$
|
15,393
|
|
|
Three
Months Ended June 30, 2017 |
|
Three
Months Ended June 30, 2016 |
|
Six
Months Ended
June 30, 2017
|
|
Six
Months Ended
June 30, 2016
|
||||||||
Interest incurred
|
$
|
18,822
|
|
|
$
|
20,558
|
|
|
$
|
38,246
|
|
|
$
|
40,819
|
|
Less: Interest capitalized
|
18,822
|
|
|
20,558
|
|
|
38,246
|
|
|
40,819
|
|
||||
Interest expense, net of amounts capitalized
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid for interest
|
$
|
8,122
|
|
|
$
|
24,767
|
|
|
$
|
27,158
|
|
|
$
|
39,678
|
|
|
December 31,
2016 |
|
Lease adoption adjustments
|
|
December 31,
2016 |
|||||
|
|
|
|
|
(as adjusted)
|
|||||
Lease right-of-use assets
|
—
|
|
|
$
|
12,605
|
|
|
$
|
12,605
|
|
Total assets
|
1,998,151
|
|
|
12,605
|
|
|
2,010,756
|
|
||
|
|
|
|
|
|
|||||
Accrued expenses
|
79,790
|
|
|
12,605
|
|
|
92,395
|
|
||
Total liabilities and equity
|
1,998,151
|
|
|
12,605
|
|
|
2,010,756
|
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||
Revenues
|
$
|
5,073
|
|
|
$
|
5,311
|
|
|
$
|
8,462
|
|
|
$
|
9,278
|
|
Cost of sales
|
(3,045
|
)
|
|
(2,597
|
)
|
|
(5,155
|
)
|
|
(4,522
|
)
|
||||
Income of unconsolidated joint ventures
|
$
|
2,028
|
|
|
$
|
2,714
|
|
|
$
|
3,307
|
|
|
$
|
4,756
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
||||||
|
Cash
|
|
$
|
12,306
|
|
|
$
|
10,208
|
|
|
|
Loans held for sale
|
|
13,640
|
|
|
18,791
|
|
|||
|
Accounts receivable
|
|
894
|
|
|
764
|
|
|||
|
Other assets
|
|
96
|
|
|
56
|
|
|||
|
|
Total Assets
|
|
$
|
26,936
|
|
|
$
|
29,819
|
|
|
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
||||||
|
Accounts payable
|
|
$
|
381
|
|
|
$
|
694
|
|
|
|
Accrued expenses
|
|
1,046
|
|
|
1,026
|
|
|||
|
Credit lines payable
|
|
12,992
|
|
|
17,748
|
|
|||
|
Other liabilities
|
|
24
|
|
|
17
|
|
|||
|
Members equity
|
|
12,493
|
|
|
10,334
|
|
|||
|
|
Total Liabilities and Equity
|
|
$
|
26,936
|
|
|
$
|
29,819
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Homebuilding assets:
|
|
|
|
||||
California
|
$
|
759,841
|
|
|
$
|
716,955
|
|
Arizona
|
184,374
|
|
|
191,581
|
|
||
Nevada
|
206,281
|
|
|
189,248
|
|
||
Colorado
|
147,650
|
|
|
124,580
|
|
||
Washington
|
317,221
|
|
|
343,973
|
|
||
Oregon
|
274,353
|
|
|
238,766
|
|
||
Corporate (1)
|
205,901
|
|
|
205,653
|
|
||
Total homebuilding assets
|
$
|
2,095,621
|
|
|
$
|
2,010,756
|
|
(1)
|
Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, and other assets.
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Real estate inventories:
|
|
|
|
||||
Land deposits
|
$
|
60,856
|
|
|
$
|
50,429
|
|
Land and land under development
|
858,315
|
|
|
1,069,001
|
|
||
Homes completed and under construction
|
842,674
|
|
|
545,310
|
|
||
Model homes
|
101,247
|
|
|
107,258
|
|
||
Total
|
$
|
1,863,092
|
|
|
$
|
1,771,998
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Notes payable:
|
|
|
|
||||
Joint venture notes payable
|
$
|
98,411
|
|
|
$
|
102,076
|
|
Seller financing
|
20,055
|
|
|
24,692
|
|
||
Revolving credit facility
|
65,000
|
|
|
29,000
|
|
||
Total notes payable
|
183,466
|
|
|
155,768
|
|
||
|
|
|
|
||||
Subordinated amortizing notes
|
3,488
|
|
|
7,225
|
|
||
|
|
|
|
||||
Senior notes:
|
|
|
|
||||
5
3
/
4
% Senior Notes due April 15, 2019
|
149,089
|
|
|
148,826
|
|
||
8
1
/
2
% Senior Notes due November 15, 2020
|
—
|
|
|
422,817
|
|
||
7% Senior Notes due August 15, 2022
|
346,385
|
|
|
346,014
|
|
||
5
7
/
8
% Senior Notes due January 31, 2025
|
438,893
|
|
|
—
|
|
||
Total senior notes
|
934,367
|
|
|
917,657
|
|
||
|
|
|
|
||||
Total notes payable and senior notes
|
$
|
1,121,321
|
|
|
$
|
1,080,650
|
|
Issuance Date
|
|
Facility Size
|
|
Outstanding
|
|
Maturity
|
|
Current Rate
|
|
|||||
March, 2016
|
|
$
|
33.4
|
|
|
$
|
21.6
|
|
|
September, 2018
|
|
4.14
|
%
|
(1)
|
January, 2016
|
|
35.0
|
|
|
26.9
|
|
|
February, 2019
|
|
4.48
|
%
|
(2)
|
||
November, 2015
|
|
42.5
|
|
|
18.2
|
|
(6)
|
November, 2017
|
|
5.25
|
%
|
(1)
|
||
August, 2015
(4)
|
|
14.2
|
|
|
—
|
|
(5)
|
August, 2017
|
|
4.50
|
%
|
(1)
|
||
July, 2015
|
|
15.0
|
|
|
11.3
|
|
|
July, 2018
|
|
4.75
|
%
|
(3)
|
||
November, 2014
|
|
15.0
|
|
|
4.1
|
|
(6)
|
November, 2017
|
|
4.75
|
%
|
(3)
|
||
November, 2014
|
|
15.0
|
|
|
6.5
|
|
(6)
|
November, 2017
|
|
4.75
|
%
|
(3)
|
||
March, 2014
|
|
26.0
|
|
|
9.8
|
|
|
April, 2018
|
|
4.22
|
%
|
(1)
|
||
|
|
$
|
196.1
|
|
|
$
|
98.4
|
|
|
|
|
|
|
•
|
a prepaid stock purchase contract (a “purchase contract”); and
|
•
|
a senior subordinated amortizing note (an “amortizing note”).
|
Year
|
Percentage
|
|
January 31, 2020
|
102.938
|
%
|
January 31, 2021
|
101.469
|
%
|
January 31, 2022
|
100.734
|
%
|
January 31, 2023 and thereafter
|
100.000
|
%
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
28,343
|
|
|
$
|
141
|
|
|
$
|
4,089
|
|
|
$
|
—
|
|
|
$
|
32,573
|
|
Receivables
|
—
|
|
|
3,056
|
|
|
1,548
|
|
|
3,728
|
|
|
—
|
|
|
8,332
|
|
||||||
Escrow proceeds receivable
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Real estate inventories
|
—
|
|
|
930,732
|
|
|
652,114
|
|
|
280,246
|
|
|
—
|
|
|
1,863,092
|
|
||||||
Investment in unconsolidated joint ventures
|
—
|
|
|
8,056
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
8,206
|
|
||||||
Goodwill
|
—
|
|
|
14,209
|
|
|
52,693
|
|
|
—
|
|
|
—
|
|
|
66,902
|
|
||||||
Intangibles, net
|
—
|
|
|
—
|
|
|
6,700
|
|
|
—
|
|
|
—
|
|
|
6,700
|
|
||||||
Deferred income taxes, net
|
—
|
|
|
75,280
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,280
|
|
||||||
Lease right-of-use assets
|
—
|
|
|
15,632
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,632
|
|
||||||
Other assets, net
|
—
|
|
|
17,081
|
|
|
1,325
|
|
|
459
|
|
|
—
|
|
|
18,865
|
|
||||||
Investments in subsidiaries
|
707,875
|
|
|
(9,869
|
)
|
|
(549,674
|
)
|
|
—
|
|
|
(148,332
|
)
|
|
—
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
237,544
|
|
|
—
|
|
|
(237,544
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
707,875
|
|
|
$
|
1,082,559
|
|
|
$
|
402,541
|
|
|
$
|
288,522
|
|
|
$
|
(385,876
|
)
|
|
$
|
2,095,621
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
51,765
|
|
|
$
|
20,583
|
|
|
$
|
6,444
|
|
|
$
|
—
|
|
|
$
|
78,792
|
|
Accrued expenses
|
—
|
|
|
77,296
|
|
|
4,256
|
|
|
105
|
|
|
—
|
|
|
81,657
|
|
||||||
Notes payable
|
—
|
|
|
82,076
|
|
|
2,979
|
|
|
98,411
|
|
|
—
|
|
|
183,466
|
|
||||||
Subordinated amortizing notes
|
—
|
|
|
3,488
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,488
|
|
||||||
5
3
/
4
% Senior Notes
|
—
|
|
|
149,089
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149,089
|
|
||||||
7% Senior Notes
|
—
|
|
|
346,385
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
346,385
|
|
||||||
5
7
/
8
% Senior Notes
|
—
|
|
|
438,893
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
438,893
|
|
||||||
Intercompany payables
|
—
|
|
|
150,089
|
|
|
—
|
|
|
87,455
|
|
|
(237,544
|
)
|
|
—
|
|
||||||
Total liabilities
|
—
|
|
|
1,299,081
|
|
|
27,818
|
|
|
192,415
|
|
|
(237,544
|
)
|
|
1,281,770
|
|
||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
William Lyon Homes stockholders’ equity (deficit)
|
707,875
|
|
|
(216,522
|
)
|
|
374,723
|
|
|
(9,869
|
)
|
|
(148,332
|
)
|
|
707,875
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
105,976
|
|
|
—
|
|
|
105,976
|
|
||||||
Total liabilities and equity
|
$
|
707,875
|
|
|
$
|
1,082,559
|
|
|
$
|
402,541
|
|
|
$
|
288,522
|
|
|
$
|
(385,876
|
)
|
|
$
|
2,095,621
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon |
|
California
Lyon |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminating
Entries |
|
Consolidated
Company |
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
36,204
|
|
|
$
|
272
|
|
|
$
|
6,136
|
|
|
$
|
—
|
|
|
$
|
42,612
|
|
Receivables
|
—
|
|
|
2,989
|
|
|
3,303
|
|
|
3,246
|
|
|
—
|
|
|
9,538
|
|
||||||
Escrow proceeds receivable
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
||||||
Real estate inventories
|
—
|
|
|
910,594
|
|
|
645,341
|
|
|
216,063
|
|
|
—
|
|
|
1,771,998
|
|
||||||
Investment in unconsolidated joint ventures
|
—
|
|
|
7,132
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
7,282
|
|
||||||
Goodwill
|
—
|
|
|
14,209
|
|
|
52,693
|
|
|
—
|
|
|
—
|
|
|
66,902
|
|
||||||
Intangibles, net
|
—
|
|
|
—
|
|
|
6,700
|
|
|
—
|
|
|
—
|
|
|
6,700
|
|
||||||
Deferred income taxes, net
|
—
|
|
|
75,751
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,751
|
|
||||||
Lease right-of-use assets
|
—
|
|
|
12,605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,605
|
|
||||||
Other assets, net
|
—
|
|
|
15,779
|
|
|
1,089
|
|
|
415
|
|
|
—
|
|
|
17,283
|
|
||||||
Investments in subsidiaries
|
697,086
|
|
|
(23,736
|
)
|
|
(573,650
|
)
|
|
—
|
|
|
(99,700
|
)
|
|
—
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
252,860
|
|
|
—
|
|
|
(252,860
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
697,086
|
|
|
$
|
1,051,612
|
|
|
$
|
388,758
|
|
|
$
|
225,860
|
|
|
$
|
(352,560
|
)
|
|
$
|
2,010,756
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
52,380
|
|
|
$
|
16,416
|
|
|
$
|
5,486
|
|
|
$
|
—
|
|
|
$
|
74,282
|
|
Accrued expenses
|
—
|
|
|
87,661
|
|
|
4,636
|
|
|
98
|
|
|
—
|
|
|
92,395
|
|
||||||
Notes payable
|
—
|
|
|
50,713
|
|
|
2,979
|
|
|
102,076
|
|
|
—
|
|
|
155,768
|
|
||||||
Subordinated amortizing notes
|
—
|
|
|
7,225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,225
|
|
||||||
5
3
/
4
% Senior Notes
|
—
|
|
|
148,826
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,826
|
|
||||||
8
1
/
2
% Senior Notes
|
—
|
|
|
422,817
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422,817
|
|
||||||
7% Senior Notes
|
—
|
|
|
346,014
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
346,014
|
|
||||||
Intercompany payables
|
—
|
|
|
177,267
|
|
|
—
|
|
|
75,593
|
|
|
(252,860
|
)
|
|
—
|
|
||||||
Total liabilities
|
—
|
|
|
1,292,903
|
|
|
24,031
|
|
|
183,253
|
|
|
(252,860
|
)
|
|
1,247,327
|
|
||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
William Lyon Homes stockholders’ equity (deficit)
|
697,086
|
|
|
(241,291
|
)
|
|
364,727
|
|
|
(23,736
|
)
|
|
(99,700
|
)
|
|
697,086
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
66,343
|
|
|
—
|
|
|
66,343
|
|
||||||
Total liabilities and equity
|
$
|
697,086
|
|
|
$
|
1,051,612
|
|
|
$
|
388,758
|
|
|
$
|
225,860
|
|
|
$
|
(352,560
|
)
|
|
$
|
2,010,756
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
171,561
|
|
|
$
|
198,172
|
|
|
$
|
52,900
|
|
|
$
|
—
|
|
|
$
|
422,633
|
|
Construction services
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Management fees
|
—
|
|
|
(1,089
|
)
|
|
—
|
|
|
—
|
|
|
1,089
|
|
|
—
|
|
||||||
|
—
|
|
|
170,531
|
|
|
198,172
|
|
|
52,900
|
|
|
1,089
|
|
|
422,692
|
|
||||||
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
—
|
|
|
(143,633
|
)
|
|
(161,092
|
)
|
|
(47,243
|
)
|
|
(1,089
|
)
|
|
(353,057
|
)
|
||||||
Construction services
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Sales and marketing
|
—
|
|
|
(7,052
|
)
|
|
(10,789
|
)
|
|
(3,443
|
)
|
|
—
|
|
|
(21,284
|
)
|
||||||
General and administrative
|
—
|
|
|
(15,598
|
)
|
|
(3,952
|
)
|
|
—
|
|
|
—
|
|
|
(19,550
|
)
|
||||||
Other
|
—
|
|
|
(620
|
)
|
|
55
|
|
|
5
|
|
|
—
|
|
|
(560
|
)
|
||||||
|
—
|
|
|
(166,909
|
)
|
|
(175,778
|
)
|
|
(50,681
|
)
|
|
(1,089
|
)
|
|
(394,457
|
)
|
||||||
Income from subsidiaries
|
18,954
|
|
|
7,405
|
|
|
—
|
|
|
—
|
|
|
(26,359
|
)
|
|
—
|
|
||||||
Operating income
|
18,954
|
|
|
11,027
|
|
|
22,394
|
|
|
2,219
|
|
|
(26,359
|
)
|
|
28,235
|
|
||||||
Equity in income from unconsolidated joint ventures
|
—
|
|
|
880
|
|
|
333
|
|
|
—
|
|
|
—
|
|
|
1,213
|
|
||||||
Other income (expense), net
|
—
|
|
|
380
|
|
|
(6
|
)
|
|
(366
|
)
|
|
—
|
|
|
8
|
|
||||||
Income before provision for income taxes
|
18,954
|
|
|
12,287
|
|
|
22,721
|
|
|
1,853
|
|
|
(26,359
|
)
|
|
29,456
|
|
||||||
Provision for income taxes
|
—
|
|
|
(9,205
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,205
|
)
|
||||||
Net income
|
18,954
|
|
|
3,082
|
|
|
22,721
|
|
|
1,853
|
|
|
(26,359
|
)
|
|
20,251
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,297
|
)
|
|
—
|
|
|
(1,297
|
)
|
||||||
Net income available to common stockholders
|
$
|
18,954
|
|
|
$
|
3,082
|
|
|
$
|
22,721
|
|
|
$
|
556
|
|
|
$
|
(26,359
|
)
|
|
$
|
18,954
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
137,673
|
|
|
$
|
175,203
|
|
|
$
|
12,183
|
|
|
$
|
—
|
|
|
$
|
325,059
|
|
Construction services
|
—
|
|
|
594
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
594
|
|
||||||
Management fees
|
—
|
|
|
(366
|
)
|
|
—
|
|
|
—
|
|
|
366
|
|
|
—
|
|
||||||
|
—
|
|
|
137,901
|
|
|
175,203
|
|
|
12,183
|
|
|
366
|
|
|
325,653
|
|
||||||
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
—
|
|
|
(112,950
|
)
|
|
(144,473
|
)
|
|
(10,849
|
)
|
|
(366
|
)
|
|
(268,638
|
)
|
||||||
Construction services
|
—
|
|
|
(548
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(548
|
)
|
||||||
Sales and marketing
|
—
|
|
|
(5,925
|
)
|
|
(9,332
|
)
|
|
(2,855
|
)
|
|
—
|
|
|
(18,112
|
)
|
||||||
General and administrative
|
—
|
|
|
(13,475
|
)
|
|
(3,210
|
)
|
|
—
|
|
|
—
|
|
|
(16,685
|
)
|
||||||
Other
|
—
|
|
|
(358
|
)
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
(487
|
)
|
||||||
|
—
|
|
|
(133,256
|
)
|
|
(157,144
|
)
|
|
(13,704
|
)
|
|
(366
|
)
|
|
(304,470
|
)
|
||||||
Income from subsidiaries
|
14,561
|
|
|
1,687
|
|
|
—
|
|
|
—
|
|
|
(16,248
|
)
|
|
—
|
|
||||||
Operating income (loss)
|
14,561
|
|
|
6,332
|
|
|
18,059
|
|
|
(1,521
|
)
|
|
(16,248
|
)
|
|
21,183
|
|
||||||
Equity in income from unconsolidated joint ventures
|
—
|
|
|
859
|
|
|
335
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||||
Other income (expense), net
|
—
|
|
|
550
|
|
|
(6
|
)
|
|
(316
|
)
|
|
—
|
|
|
228
|
|
||||||
Income (loss) before provision for income taxes
|
14,561
|
|
|
7,741
|
|
|
18,388
|
|
|
(1,837
|
)
|
|
(16,248
|
)
|
|
22,605
|
|
||||||
Provision for income taxes
|
—
|
|
|
(7,519
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,519
|
)
|
||||||
Net income (loss)
|
14,561
|
|
|
222
|
|
|
18,388
|
|
|
(1,837
|
)
|
|
(16,248
|
)
|
|
15,086
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(525
|
)
|
|
—
|
|
|
(525
|
)
|
||||||
Net income (loss) available to common stockholders
|
$
|
14,561
|
|
|
$
|
222
|
|
|
$
|
18,388
|
|
|
$
|
(2,362
|
)
|
|
$
|
(16,248
|
)
|
|
$
|
14,561
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
293,689
|
|
|
$
|
317,795
|
|
|
$
|
70,003
|
|
|
$
|
—
|
|
|
$
|
681,487
|
|
Construction services
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Management fees
|
—
|
|
|
(1,602
|
)
|
|
—
|
|
|
—
|
|
|
1,602
|
|
|
—
|
|
||||||
|
—
|
|
|
292,146
|
|
|
317,795
|
|
|
70,003
|
|
|
1,602
|
|
|
681,546
|
|
||||||
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
—
|
|
|
(243,028
|
)
|
|
(264,553
|
)
|
|
(62,329
|
)
|
|
(1,602
|
)
|
|
(571,512
|
)
|
||||||
Construction services
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Sales and marketing
|
—
|
|
|
(13,575
|
)
|
|
(17,720
|
)
|
|
(4,694
|
)
|
|
—
|
|
|
(35,989
|
)
|
||||||
General and administrative
|
—
|
|
|
(30,114
|
)
|
|
(8,381
|
)
|
|
(1
|
)
|
|
—
|
|
|
(38,496
|
)
|
||||||
Other
|
—
|
|
|
(1,151
|
)
|
|
146
|
|
|
5
|
|
|
—
|
|
|
(1,000
|
)
|
||||||
|
—
|
|
|
(287,874
|
)
|
|
(290,508
|
)
|
|
(67,019
|
)
|
|
(1,602
|
)
|
|
(647,003
|
)
|
||||||
Income from subsidiaries
|
8,954
|
|
|
7,166
|
|
|
—
|
|
|
—
|
|
|
(16,120
|
)
|
|
—
|
|
||||||
Operating income
|
8,954
|
|
|
11,438
|
|
|
27,287
|
|
|
2,984
|
|
|
(16,120
|
)
|
|
34,543
|
|
||||||
Equity in income from unconsolidated joint ventures
|
—
|
|
|
924
|
|
|
538
|
|
|
—
|
|
|
—
|
|
|
1,462
|
|
||||||
Other income (expense), net
|
—
|
|
|
1,025
|
|
|
(6
|
)
|
|
(666
|
)
|
|
—
|
|
|
353
|
|
||||||
Income before extinguishment of debt
|
8,954
|
|
|
13,387
|
|
|
27,819
|
|
|
2,318
|
|
|
(16,120
|
)
|
|
36,358
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
(21,828
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,828
|
)
|
||||||
Income (loss) before provision for income taxes
|
8,954
|
|
|
(8,441
|
)
|
|
27,819
|
|
|
2,318
|
|
|
(16,120
|
)
|
|
14,530
|
|
||||||
Provision for income taxes
|
—
|
|
|
(3,575
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,575
|
)
|
||||||
Net income (loss)
|
8,954
|
|
|
(12,016
|
)
|
|
27,819
|
|
|
2,318
|
|
|
(16,120
|
)
|
|
10,955
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,001
|
)
|
|
—
|
|
|
(2,001
|
)
|
||||||
Net income (loss) available to common stockholders
|
$
|
8,954
|
|
|
$
|
(12,016
|
)
|
|
$
|
27,819
|
|
|
$
|
317
|
|
|
$
|
(16,120
|
)
|
|
$
|
8,954
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
238,497
|
|
|
$
|
313,003
|
|
|
$
|
34,854
|
|
|
$
|
—
|
|
|
$
|
586,354
|
|
Construction services
|
—
|
|
|
3,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,724
|
|
||||||
Management fees
|
—
|
|
|
(1,046
|
)
|
|
—
|
|
|
—
|
|
|
1,046
|
|
|
—
|
|
||||||
|
—
|
|
|
241,175
|
|
|
313,003
|
|
|
34,854
|
|
|
1,046
|
|
|
590,078
|
|
||||||
Operating costs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
—
|
|
|
(191,829
|
)
|
|
(260,033
|
)
|
|
(30,901
|
)
|
|
(1,046
|
)
|
|
(483,809
|
)
|
||||||
Construction services
|
—
|
|
|
(3,372
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,372
|
)
|
||||||
Sales and marketing
|
—
|
|
|
(11,875
|
)
|
|
(16,957
|
)
|
|
(4,273
|
)
|
|
—
|
|
|
(33,105
|
)
|
||||||
General and administrative
|
—
|
|
|
(27,481
|
)
|
|
(7,038
|
)
|
|
—
|
|
|
—
|
|
|
(34,519
|
)
|
||||||
Other
|
—
|
|
|
(727
|
)
|
|
(83
|
)
|
|
—
|
|
|
—
|
|
|
(810
|
)
|
||||||
|
—
|
|
|
(235,284
|
)
|
|
(284,111
|
)
|
|
(35,174
|
)
|
|
(1,046
|
)
|
|
(555,615
|
)
|
||||||
Income from subsidiaries
|
23,575
|
|
|
3,924
|
|
|
—
|
|
|
—
|
|
|
(27,499
|
)
|
|
—
|
|
||||||
Operating income (loss)
|
23,575
|
|
|
9,815
|
|
|
28,892
|
|
|
(320
|
)
|
|
(27,499
|
)
|
|
34,463
|
|
||||||
Equity in income from unconsolidated joint ventures
|
—
|
|
|
1,861
|
|
|
514
|
|
|
—
|
|
|
—
|
|
|
2,375
|
|
||||||
Other income (expense), net
|
—
|
|
|
1,323
|
|
|
(15
|
)
|
|
(555
|
)
|
|
—
|
|
|
753
|
|
||||||
Income (loss) before provision for income taxes
|
23,575
|
|
|
12,999
|
|
|
29,391
|
|
|
(875
|
)
|
|
(27,499
|
)
|
|
37,591
|
|
||||||
Provision for income taxes
|
—
|
|
|
(12,564
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,564
|
)
|
||||||
Net income (loss)
|
23,575
|
|
|
435
|
|
|
29,391
|
|
|
(875
|
)
|
|
(27,499
|
)
|
|
25,027
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,452
|
)
|
|
—
|
|
|
(1,452
|
)
|
||||||
Net income (loss) available to common stockholders
|
$
|
23,575
|
|
|
$
|
435
|
|
|
$
|
29,391
|
|
|
$
|
(2,327
|
)
|
|
$
|
(27,499
|
)
|
|
$
|
23,575
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash (used in) provided by operating activities
|
$
|
(1,835
|
)
|
|
$
|
(31,965
|
)
|
|
$
|
26,508
|
|
|
$
|
(61,355
|
)
|
|
$
|
1,835
|
|
|
$
|
(66,812
|
)
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property and equipment
|
—
|
|
|
(173
|
)
|
|
10
|
|
|
(71
|
)
|
|
—
|
|
|
(234
|
)
|
||||||
Investments in subsidiaries
|
—
|
|
|
(6,537
|
)
|
|
(24,140
|
)
|
|
—
|
|
|
30,677
|
|
|
—
|
|
||||||
Net cash (used in) provided by investing activities
|
—
|
|
|
(6,710
|
)
|
|
(24,130
|
)
|
|
(71
|
)
|
|
30,677
|
|
|
(234
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings on notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
49,478
|
|
|
—
|
|
|
49,478
|
|
||||||
Principal payments on notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,143
|
)
|
|
—
|
|
|
(53,143
|
)
|
||||||
Redemption premium of 8.5% Senior Notes
|
—
|
|
|
(19,645
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,645
|
)
|
||||||
Principal payments of 8.5% Senior Notes
|
—
|
|
|
(425,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(425,000
|
)
|
||||||
Proceeds from issuance of 5.875% Senior Notes
|
—
|
|
|
446,468
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
446,468
|
|
||||||
Proceeds from borrowings on Revolver
|
—
|
|
|
190,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190,000
|
|
||||||
Payments on Revolver
|
—
|
|
|
(154,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,000
|
)
|
||||||
Principal payments on subordinated amortizing notes
|
—
|
|
|
(3,737
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,737
|
)
|
||||||
Payment of deferred loan costs
|
—
|
|
|
(9,666
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,666
|
)
|
||||||
Shares remitted to, or withheld by the Company for employee tax withholding
|
—
|
|
|
(1,380
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,380
|
)
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
51,291
|
|
|
—
|
|
|
51,291
|
|
||||||
Noncontrolling interest distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,659
|
)
|
|
—
|
|
|
(13,659
|
)
|
||||||
Advances to affiliates
|
—
|
|
|
—
|
|
|
(17,823
|
)
|
|
13,550
|
|
|
4,273
|
|
|
—
|
|
||||||
Intercompany receivables/payables
|
1,835
|
|
|
7,774
|
|
|
15,314
|
|
|
11,862
|
|
|
(36,785
|
)
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
1,835
|
|
|
30,814
|
|
|
(2,509
|
)
|
|
59,379
|
|
|
(32,512
|
)
|
|
57,007
|
|
||||||
Net (decrease) in cash and cash equivalents
|
—
|
|
|
(7,861
|
)
|
|
(131
|
)
|
|
(2,047
|
)
|
|
—
|
|
|
(10,039
|
)
|
||||||
Cash and cash equivalents - beginning of period
|
—
|
|
|
36,204
|
|
|
272
|
|
|
6,136
|
|
|
—
|
|
|
42,612
|
|
||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
28,343
|
|
|
$
|
141
|
|
|
$
|
4,089
|
|
|
$
|
—
|
|
|
$
|
32,573
|
|
|
Unconsolidated
|
|
|
|
|
||||||||||||||||||
|
Delaware
Lyon
|
|
California
Lyon
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminating
Entries
|
|
Consolidated
Company
|
||||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash (used in) provided by operating activities
|
$
|
(1,539
|
)
|
|
$
|
33,612
|
|
|
$
|
(22,138
|
)
|
|
$
|
(86,379
|
)
|
|
$
|
1,539
|
|
|
$
|
(74,905
|
)
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Collection of related party note receivable
|
—
|
|
|
6,188
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,188
|
|
||||||
Purchases of property and equipment
|
—
|
|
|
(647
|
)
|
|
44
|
|
|
(16
|
)
|
|
—
|
|
|
(619
|
)
|
||||||
Investments in subsidiaries
|
—
|
|
|
(4,244
|
)
|
|
30,672
|
|
|
—
|
|
|
(26,428
|
)
|
|
—
|
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
1,297
|
|
|
30,716
|
|
|
(16
|
)
|
|
(26,428
|
)
|
|
5,569
|
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from borrowings on notes payable
|
—
|
|
|
2,211
|
|
|
—
|
|
|
80,658
|
|
|
—
|
|
|
82,869
|
|
||||||
Principal payments on notes payable
|
—
|
|
|
(8,084
|
)
|
|
—
|
|
|
(34,015
|
)
|
|
—
|
|
|
(42,099
|
)
|
||||||
Proceeds from borrowings on Revolver
|
—
|
|
|
120,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120,000
|
|
||||||
Payments on revolver
|
—
|
|
|
(126,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,000
|
)
|
||||||
Principal payments on subordinated amortizing notes
|
—
|
|
|
(3,374
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,374
|
)
|
||||||
Payment of deferred loan costs
|
—
|
|
|
(214
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(214
|
)
|
||||||
Shares remitted to or withheld by Company for employee tax withholding
|
—
|
|
|
(844
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(844
|
)
|
||||||
Excess income tax benefit from stock based awards
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
33,963
|
|
|
—
|
|
|
33,963
|
|
||||||
Noncontrolling interest distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,226
|
)
|
|
—
|
|
|
(5,226
|
)
|
||||||
Advances to affiliates
|
—
|
|
|
—
|
|
|
(4,480
|
)
|
|
10,495
|
|
|
(6,015
|
)
|
|
—
|
|
||||||
Intercompany receivables/payables
|
1,539
|
|
|
(28,035
|
)
|
|
(6,258
|
)
|
|
1,850
|
|
|
30,904
|
|
|
—
|
|
||||||
Net cash provided by (used in) financing activities
|
1,539
|
|
|
(44,518
|
)
|
|
(10,738
|
)
|
|
87,725
|
|
|
24,889
|
|
|
58,897
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
—
|
|
|
(9,609
|
)
|
|
(2,160
|
)
|
|
1,330
|
|
|
—
|
|
|
(10,439
|
)
|
||||||
Cash and cash equivalents - beginning of period
|
—
|
|
|
44,332
|
|
|
2,723
|
|
|
3,148
|
|
|
—
|
|
|
50,203
|
|
||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
34,723
|
|
|
$
|
563
|
|
|
$
|
4,478
|
|
|
$
|
—
|
|
|
$
|
39,764
|
|
•
|
Notes payable—The carrying amount is a reasonable estimate of fair value of the notes payable because market rates are unchanged since inception and/or the outstanding balance at quarter end is expected to be repaid within one year.
|
•
|
Subordinated amortizing notes—The Subordinated amortizing notes are traded over the counter and their fair values were based upon quotes from industry sources.
|
•
|
5
3
/
4
% Senior Notes due April 15, 2019 —The 5
3
/
4
% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources.
|
•
|
8
1
/
2
% Senior Notes due November 15, 2020 —The 8
1
/
2
% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources.
|
•
|
7% Senior Notes due August 15, 2022 —The 7% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources.
|
•
|
5
7
/
8
Senior Notes due January 31, 2025 —The 5
7
/
8
% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources.
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Notes payable
|
$
|
183,466
|
|
|
$
|
183,466
|
|
|
$
|
155,768
|
|
|
$
|
155,768
|
|
Subordinated amortizing notes
|
3,488
|
|
|
3,793
|
|
|
7,225
|
|
|
7,478
|
|
||||
5
3
/
4
% Senior Notes due 2019
|
149,089
|
|
|
152,250
|
|
|
148,826
|
|
|
151,125
|
|
||||
8
1
/
2
% Senior Notes due 2020
|
—
|
|
|
—
|
|
|
422,817
|
|
|
444,125
|
|
||||
7% Senior Notes due 2022
|
346,385
|
|
|
364,455
|
|
|
346,014
|
|
|
363,125
|
|
||||
5
7
/
8
% Senior Notes due 2025
|
438,893
|
|
|
463,500
|
|
|
—
|
|
|
—
|
|
•
|
Level 1—quoted prices for identical assets or liabilities in active markets;
|
•
|
Level 2—quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and
|
•
|
Level 3—valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
|
|
Three
Months Ended June 30, 2017 |
|
Three
Months Ended June 30, 2016 |
|
Six
Months Ended June 30, 2017 |
|
Six
Months Ended June 30, 2016 |
||||||||
Basic weighted average number of common shares outstanding
|
37,051,967
|
|
|
36,786,268
|
|
|
36,980,540
|
|
|
36,719,057
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options, unvested common shares, and warrants
|
1,246,657
|
|
|
675,524
|
|
|
1,250,661
|
|
|
688,060
|
|
||||
Tangible equity units
|
—
|
|
|
894,930
|
|
|
—
|
|
|
894,930
|
|
||||
Diluted average shares outstanding
|
38,298,624
|
|
|
38,356,722
|
|
|
38,231,201
|
|
|
38,302,047
|
|
||||
Net income available to common stockholders
|
$
|
18,954
|
|
|
$
|
14,561
|
|
|
$
|
8,954
|
|
|
$
|
23,575
|
|
Basic income per common share
|
$
|
0.51
|
|
|
$
|
0.40
|
|
|
$
|
0.24
|
|
|
$
|
0.64
|
|
Dilutive income per common share
|
$
|
0.49
|
|
|
$
|
0.38
|
|
|
$
|
0.23
|
|
|
$
|
0.62
|
|
Antidilutive securities not included in the calculation of diluted income per common share (weighted average):
|
|
|
|
|
|
|
|
||||||||
Tangible equity units
|
894,930
|
|
|
—
|
|
|
894,930
|
|
|
—
|
|
||||
Unvested stock options
|
240,000
|
|
|
240,000
|
|
|
240,000
|
|
|
240,000
|
|
||||
Warrants
|
—
|
|
|
1,907,551
|
|
|
—
|
|
|
1,907,551
|
|
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
|
Six
Months Ended June 30, 2017 |
|
Six
Months Ended June 30, 2016 |
||||||||
Lease cost
|
|
|
|
|
|
|
|
|
||||||||
Operating lease cost
|
|
$
|
1,718
|
|
|
$
|
908
|
|
|
$
|
2,713
|
|
|
$
|
1,869
|
|
Sublease income
|
|
(29
|
)
|
|
(29
|
)
|
|
(58
|
)
|
|
(58
|
)
|
||||
Total lease cost
|
|
$
|
1,689
|
|
|
$
|
879
|
|
|
$
|
2,655
|
|
|
$
|
1,811
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other information
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
|
|
|
|
|
|
|
|
|
||||||||
Operating cash flows
|
|
$
|
1,371
|
|
|
$
|
799
|
|
|
$
|
2,258
|
|
|
$
|
1,599
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
$
|
410
|
|
|
$
|
9
|
|
|
$
|
5,058
|
|
|
$
|
613
|
|
Weighted-average discount rate
|
|
6.6
|
%
|
|
6.6
|
%
|
|
6.6
|
%
|
|
6.6
|
%
|
|
|
June 30, 2017
|
|
December 31, 2016
|
Weighted-average remaining lease term (in years)
|
|
4.01
|
|
5.16
|
Year Ending December 31,
|
|
||
2017
|
$
|
3,177
|
|
2018
|
6,118
|
|
|
2019
|
3,540
|
|
|
2020
|
2,530
|
|
|
2021
|
2,398
|
|
|
Thereafter
|
1,782
|
|
|
Total
|
$
|
19,545
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Number of Net New Home Orders
|
|
|
|
|
|
|
|
||||
California
|
280
|
|
|
238
|
|
|
42
|
|
|
18
|
%
|
Arizona
|
149
|
|
|
142
|
|
|
7
|
|
|
5
|
%
|
Nevada
|
93
|
|
|
97
|
|
|
(4
|
)
|
|
(4
|
)%
|
Colorado
|
86
|
|
|
72
|
|
|
14
|
|
|
19
|
%
|
Washington
|
164
|
|
|
88
|
|
|
76
|
|
|
86
|
%
|
Oregon
|
245
|
|
|
234
|
|
|
11
|
|
|
5
|
%
|
Total
|
1,017
|
|
|
871
|
|
|
146
|
|
|
17
|
%
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
|||||
|
2017
|
|
2016
|
|
%
|
|||
Cancellation Rates
|
|
|
|
|
|
|||
California
|
15
|
%
|
|
11
|
%
|
|
4
|
%
|
Arizona
|
6
|
%
|
|
6
|
%
|
|
—
|
%
|
Nevada
|
15
|
%
|
|
16
|
%
|
|
(1
|
)%
|
Colorado
|
10
|
%
|
|
12
|
%
|
|
(2
|
)%
|
Washington
|
17
|
%
|
|
14
|
%
|
|
3
|
%
|
Oregon
|
14
|
%
|
|
13
|
%
|
|
1
|
%
|
Overall
|
14
|
%
|
|
12
|
%
|
|
2
|
%
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Average Number of Sales Locations
|
|
|
|
|
|
|
|
||||
California
|
23
|
|
|
18
|
|
|
5
|
|
|
28
|
%
|
Arizona
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
%
|
Nevada
|
14
|
|
|
12
|
|
|
2
|
|
|
17
|
%
|
Colorado
|
15
|
|
|
11
|
|
|
4
|
|
|
36
|
%
|
Washington
|
10
|
|
|
6
|
|
|
4
|
|
|
67
|
%
|
Oregon
|
18
|
|
|
17
|
|
|
1
|
|
|
6
|
%
|
Total
|
88
|
|
|
72
|
|
|
16
|
|
|
22
|
%
|
|
Three Months Ended March 31,
|
|
Increase (Decrease)
|
||
|
2017
|
|
2016
|
|
|
Quarterly Absorption Rates
|
|
|
|
|
|
California
|
12.2
|
|
13.2
|
|
(1.0)
|
Arizona
|
18.6
|
|
17.8
|
|
0.8
|
Nevada
|
6.6
|
|
8.1
|
|
(1.5)
|
Colorado
|
5.7
|
|
6.5
|
|
(0.8)
|
Washington
|
16.4
|
|
14.7
|
|
1.7
|
Oregon
|
13.6
|
|
13.8
|
|
(0.2)
|
Overall
|
11.6
|
|
12.1
|
|
(0.5)
|
|
June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Backlog (units)
|
|
|
|
|
|
|
|
||||
California
|
432
|
|
|
305
|
|
|
127
|
|
|
42
|
%
|
Arizona
|
206
|
|
|
243
|
|
|
(37
|
)
|
|
(15
|
)%
|
Nevada
|
128
|
|
|
143
|
|
|
(15
|
)
|
|
(10
|
)%
|
Colorado
|
126
|
|
|
128
|
|
|
(2
|
)
|
|
(2
|
)%
|
Washington
|
192
|
|
|
65
|
|
|
127
|
|
|
195
|
%
|
Oregon
|
201
|
|
|
209
|
|
|
(8
|
)
|
|
(4
|
)%
|
Total
|
1,285
|
|
|
1,093
|
|
|
192
|
|
|
18
|
%
|
|
June 30,
|
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|||||||
|
(dollars in thousands)
|
|||||||||||||
Backlog (dollars)
|
|
|
|
|
|
|
|
|||||||
California
|
$
|
345,604
|
|
|
$
|
223,080
|
|
|
$
|
122,524
|
|
|
55
|
%
|
Arizona
|
63,435
|
|
|
66,816
|
|
|
(3,381
|
)
|
|
(5
|
)%
|
|||
Nevada
|
84,348
|
|
|
82,993
|
|
|
1,355
|
|
|
2
|
%
|
|||
Colorado
|
59,266
|
|
|
66,122
|
|
|
(6,856
|
)
|
|
(10
|
)%
|
|||
Washington
|
115,018
|
|
|
42,851
|
|
|
72,167
|
|
|
168
|
%
|
|||
Oregon
|
87,652
|
|
|
93,617
|
|
|
(5,965
|
)
|
|
(6
|
)%
|
|||
Total
|
$
|
755,323
|
|
|
$
|
575,479
|
|
|
$
|
179,844
|
|
|
31
|
%
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Number of Homes Closed
|
|
|
|
|
|
|
|
||||
California
|
216
|
|
|
147
|
|
|
69
|
|
|
47
|
%
|
Arizona
|
181
|
|
|
134
|
|
|
47
|
|
|
35
|
%
|
Nevada
|
53
|
|
|
73
|
|
|
(20
|
)
|
|
(27
|
)%
|
Colorado
|
58
|
|
|
47
|
|
|
11
|
|
|
23
|
%
|
Washington
|
106
|
|
|
83
|
|
|
23
|
|
|
28
|
%
|
Oregon
|
217
|
|
|
179
|
|
|
38
|
|
|
21
|
%
|
Total
|
831
|
|
|
663
|
|
|
168
|
|
|
25
|
%
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|||||||
|
(dollars in thousands)
|
|||||||||||||
Home Sales Revenue
|
|
|
|
|
|
|
|
|||||||
California
|
$
|
149,291
|
|
|
$
|
101,201
|
|
|
$
|
48,090
|
|
|
48
|
%
|
Arizona
|
52,372
|
|
|
35,594
|
|
|
16,778
|
|
|
47
|
%
|
|||
Nevada
|
29,934
|
|
|
48,655
|
|
|
(18,721
|
)
|
|
(38
|
)%
|
|||
Colorado
|
31,008
|
|
|
24,176
|
|
|
6,832
|
|
|
28
|
%
|
|||
Washington
|
70,261
|
|
|
37,364
|
|
|
32,897
|
|
|
88
|
%
|
|||
Oregon
|
89,767
|
|
|
78,069
|
|
|
11,698
|
|
|
15
|
%
|
|||
Total
|
$
|
422,633
|
|
|
$
|
325,059
|
|
|
$
|
97,574
|
|
|
30
|
%
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|||||||
Average Sales Price of Homes Closed
|
|
|
|
|
|
|
|
|||||||
California
|
$
|
691,200
|
|
|
$
|
688,400
|
|
|
$
|
2,800
|
|
|
—
|
%
|
Arizona
|
289,300
|
|
|
265,600
|
|
|
23,700
|
|
|
9
|
%
|
|||
Nevada
|
564,800
|
|
|
666,500
|
|
|
(101,700
|
)
|
|
(15
|
)%
|
|||
Colorado
|
534,600
|
|
|
514,400
|
|
|
20,200
|
|
|
4
|
%
|
|||
Washington
|
662,800
|
|
|
450,200
|
|
|
212,600
|
|
|
47
|
%
|
|||
Oregon
|
413,700
|
|
|
436,100
|
|
|
(22,400
|
)
|
|
(5
|
)%
|
|||
Company Average
|
$
|
508,600
|
|
|
$
|
490,300
|
|
|
$
|
18,300
|
|
|
4
|
%
|
|
Three Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(dollars in thousands)
|
||||||
Home sales revenue
|
$
|
422,633
|
|
|
$
|
325,059
|
|
Cost of home sales
|
353,057
|
|
|
268,638
|
|
||
Homebuilding gross margin
|
69,576
|
|
|
56,421
|
|
||
Homebuilding gross margin percentage
|
16.5
|
%
|
|
17.4
|
%
|
||
Add: Interest in cost of sales
|
20,689
|
|
|
14,020
|
|
||
Add: Purchase accounting adjustments
|
3,310
|
|
|
7,658
|
|
||
Adjusted homebuilding gross margin
|
$
|
93,575
|
|
|
$
|
78,099
|
|
Adjusted homebuilding gross margin percentage
|
22.1
|
%
|
|
24.0
|
%
|
|
Three Months Ended June 30,
|
|
As a Percentage of Home Sales Revenue
|
||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||
|
(dollars in thousands)
|
|
|
|
|
||||||||
Sales and Marketing
|
$
|
21,284
|
|
|
$
|
18,112
|
|
|
5.0
|
%
|
|
5.6
|
%
|
General and Administrative
|
19,550
|
|
|
16,685
|
|
|
4.6
|
%
|
|
5.1
|
%
|
||
Total Sales and Marketing & General and Administrative
|
$
|
40,834
|
|
|
$
|
34,797
|
|
|
9.7
|
%
|
|
10.7
|
%
|
|
Three Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Interest incurred
|
$
|
18,822
|
|
|
$
|
20,558
|
|
Less: Interest capitalized
|
18,822
|
|
|
20,558
|
|
||
Interest expense, net of amounts capitalized
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid for interest
|
$
|
8,122
|
|
|
$
|
24,767
|
|
(1)
|
Lots controlled may be purchased by the Company as consolidated projects or may be purchased by newly formed joint ventures.
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Number of Net New Home Orders
|
|
|
|
|
|
|
|
||||
California
|
545
|
|
|
400
|
|
|
145
|
|
|
36
|
%
|
Arizona
|
277
|
|
|
250
|
|
|
27
|
|
|
11
|
%
|
Nevada
|
170
|
|
|
163
|
|
|
7
|
|
|
4
|
%
|
Colorado
|
147
|
|
|
150
|
|
|
(3
|
)
|
|
(2
|
)%
|
Washington
|
316
|
|
|
172
|
|
|
144
|
|
|
84
|
%
|
Oregon
|
427
|
|
|
425
|
|
|
2
|
|
|
—
|
%
|
Total
|
1,882
|
|
|
1,560
|
|
|
322
|
|
|
21
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
|||||
|
2017
|
|
2016
|
|
%
|
|||
Cancellation Rates
|
|
|
|
|
|
|||
California
|
15
|
%
|
|
15
|
%
|
|
—
|
%
|
Arizona
|
9
|
%
|
|
8
|
%
|
|
1
|
%
|
Nevada
|
14
|
%
|
|
18
|
%
|
|
(4
|
)%
|
Colorado
|
10
|
%
|
|
12
|
%
|
|
(2
|
)%
|
Washington
|
14
|
%
|
|
12
|
%
|
|
2
|
%
|
Oregon
|
14
|
%
|
|
12
|
%
|
|
2
|
%
|
Overall
|
13
|
%
|
|
13
|
%
|
|
—
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Average Number of Sales Locations
|
|
|
|
|
|
|
|
||||
California
|
24
|
|
|
18
|
|
|
6
|
|
|
33
|
%
|
Arizona
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
%
|
Nevada
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
%
|
Colorado
|
13
|
|
|
10
|
|
|
3
|
|
|
30
|
%
|
Washington
|
9
|
|
|
6
|
|
|
3
|
|
|
50
|
%
|
Oregon
|
19
|
|
|
16
|
|
|
3
|
|
|
19
|
%
|
Total
|
85
|
|
|
70
|
|
|
15
|
|
|
21
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
||
|
2017
|
|
2016
|
|
|
Quarterly Absorption Rates
|
|
|
|
|
|
California
|
11.4
|
|
11.1
|
|
0.3
|
Arizona
|
17.3
|
|
15.6
|
|
1.7
|
Nevada
|
7.1
|
|
6.8
|
|
0.3
|
Colorado
|
5.7
|
|
7.5
|
|
(1.8)
|
Washington
|
17.6
|
|
14.3
|
|
3.3
|
Oregon
|
11.2
|
|
13.3
|
|
(2.1)
|
Overall
|
11.1
|
|
11.1
|
|
0.0
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
||||
Number of Homes Closed
|
|
|
|
|
|
|
|
||||
California
|
337
|
|
|
289
|
|
|
48
|
|
|
17
|
%
|
Arizona
|
275
|
|
|
216
|
|
|
59
|
|
|
27
|
%
|
Nevada
|
101
|
|
|
135
|
|
|
(34
|
)
|
|
(25
|
)%
|
Colorado
|
96
|
|
|
100
|
|
|
(4
|
)
|
|
(4
|
)%
|
Washington
|
176
|
|
|
151
|
|
|
25
|
|
|
17
|
%
|
Oregon
|
345
|
|
|
315
|
|
|
30
|
|
|
10
|
%
|
Total
|
1,330
|
|
|
1,206
|
|
|
124
|
|
|
10
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|||||||
|
(dollars in thousands)
|
|||||||||||||
Home Sales Revenue
|
|
|
|
|
|
|
|
|||||||
California
|
$
|
231,258
|
|
|
$
|
193,955
|
|
|
$
|
37,303
|
|
|
19
|
%
|
Arizona
|
79,088
|
|
|
56,641
|
|
|
22,447
|
|
|
40
|
%
|
|||
Nevada
|
60,482
|
|
|
79,396
|
|
|
(18,914
|
)
|
|
(24
|
)%
|
|||
Colorado
|
52,338
|
|
|
50,569
|
|
|
1,769
|
|
|
3
|
%
|
|||
Washington
|
113,735
|
|
|
70,265
|
|
|
43,470
|
|
|
62
|
%
|
|||
Oregon
|
144,586
|
|
|
135,528
|
|
|
9,058
|
|
|
7
|
%
|
|||
Total
|
$
|
681,487
|
|
|
$
|
586,354
|
|
|
$
|
95,133
|
|
|
16
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
%
|
|||||||
Average Sales Price of Homes Closed
|
|
|
|
|
|
|
|
|||||||
California
|
$
|
686,200
|
|
|
$
|
671,100
|
|
|
$
|
15,100
|
|
|
2
|
%
|
Arizona
|
287,600
|
|
|
262,200
|
|
|
25,400
|
|
|
10
|
%
|
|||
Nevada
|
598,800
|
|
|
588,100
|
|
|
10,700
|
|
|
2
|
%
|
|||
Colorado
|
545,200
|
|
|
505,700
|
|
|
39,500
|
|
|
8
|
%
|
|||
Washington
|
646,200
|
|
|
465,300
|
|
|
180,900
|
|
|
39
|
%
|
|||
Oregon
|
419,100
|
|
|
430,200
|
|
|
(11,100
|
)
|
|
(3
|
)%
|
|||
Company Average
|
$
|
512,400
|
|
|
$
|
486,200
|
|
|
$
|
26,200
|
|
|
5
|
%
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(dollars in thousands)
|
||||||
Home sales revenue
|
$
|
681,487
|
|
|
$
|
586,354
|
|
Cost of home sales
|
571,512
|
|
|
483,809
|
|
||
Homebuilding gross margin
|
109,975
|
|
|
102,545
|
|
||
Homebuilding gross margin percentage
|
16.1
|
%
|
|
17.5
|
%
|
||
Add: Interest in cost of sales
|
32,297
|
|
|
25,767
|
|
||
Add: Purchase accounting adjustments
|
5,811
|
|
|
14,251
|
|
||
Adjusted homebuilding gross margin
|
$
|
148,083
|
|
|
$
|
142,563
|
|
Adjusted homebuilding gross margin percentage
|
21.7
|
%
|
|
24.3
|
%
|
|
Six Months Ended June 30,
|
|
As a Percentage of Home Sales Revenue
|
||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||
|
(dollars in thousands)
|
|
|
|
|
||||||||
Sales and Marketing
|
$
|
35,989
|
|
|
$
|
33,105
|
|
|
5.3
|
%
|
|
5.6
|
%
|
General and Administrative
|
38,496
|
|
|
34,519
|
|
|
5.6
|
%
|
|
5.9
|
%
|
||
Total Sales and Marketing & General and Administrative
|
$
|
74,485
|
|
|
$
|
67,624
|
|
|
10.9
|
%
|
|
11.5
|
%
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Interest incurred
|
$
|
38,246
|
|
|
$
|
40,819
|
|
Less: Interest capitalized
|
38,246
|
|
|
40,819
|
|
||
Interest expense, net of amounts capitalized
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid for interest
|
$
|
27,158
|
|
|
$
|
39,678
|
|
•
|
a prepaid stock purchase contract (a “purchase contract”); and
|
•
|
a senior subordinated amortizing note (an “amortizing note”).
|
|
|
Covenant Requirements at
|
|
Actual at
|
||||
Financial Covenant
|
|
June 30, 2017
|
|
June 30, 2017
|
||||
Minimum Tangible Net Worth
|
|
$
|
537.4
|
million
|
|
$
|
754.1
|
million
|
Maximum Leverage Ratio
|
|
62.5
|
%
|
|
59.3
|
%
|
||
Interest Coverage Ratio;
or
(1)
|
|
1.5
|
|
|
2.20
|
|
||
Minimum Liquidity (1)
|
|
$
|
80.6
|
million
|
|
$
|
104.5
|
million
|
Issuance Date
|
|
Facility Size
|
|
Outstanding
|
|
Maturity
|
|
Current Rate
|
|
|||||
March, 2016
|
|
$
|
33.4
|
|
|
$
|
21.6
|
|
|
September, 2018
|
|
4.14
|
%
|
(1)
|
January, 2016
|
|
35.0
|
|
|
26.9
|
|
|
February, 2019
|
|
4.48
|
%
|
(2)
|
||
November, 2015
|
|
42.5
|
|
|
18.2
|
|
(6)
|
November, 2017
|
|
5.25
|
%
|
(1)
|
||
August, 2015
(4)
|
|
14.2
|
|
|
—
|
|
(5)
|
August, 2017
|
|
4.50
|
%
|
(1)
|
||
July, 2015
|
|
15.0
|
|
|
11.3
|
|
|
July, 2018
|
|
4.75
|
%
|
(3)
|
||
November, 2014
|
|
15.0
|
|
|
4.1
|
|
(6)
|
November, 2017
|
|
4.75
|
%
|
(3)
|
||
November, 2014
|
|
15.0
|
|
|
6.5
|
|
(6)
|
November, 2017
|
|
4.75
|
%
|
(3)
|
||
March, 2014
|
|
26.0
|
|
|
9.8
|
|
|
April, 2018
|
|
4.22
|
%
|
(1)
|
||
|
|
$
|
196.1
|
|
|
$
|
98.4
|
|
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
(dollars in thousands)
|
||||||
Notes payable and Senior Notes
|
$
|
1,121,321
|
|
|
$
|
1,080,650
|
|
Total equity
|
813,851
|
|
|
763,429
|
|
||
Total capital
|
$
|
1,935,172
|
|
|
$
|
1,844,079
|
|
Ratio of debt to total capital
|
57.9
|
%
|
|
58.6
|
%
|
||
Notes payable and Senior Notes
|
$
|
1,121,321
|
|
|
$
|
1,080,650
|
|
Less: Cash and cash equivalents
|
(32,573
|
)
|
|
(42,612
|
)
|
||
Net debt
|
1,088,748
|
|
|
1,038,038
|
|
||
Total equity
|
813,851
|
|
|
763,429
|
|
||
Total capital (net of cash)
|
$
|
1,902,599
|
|
|
$
|
1,801,467
|
|
Ratio of net debt to total capital (net of cash)
|
57.2
|
%
|
|
57.6
|
%
|
•
|
Net cash used in operating activities decreased to
$66.8 million
in the 2017 period from
$74.9 million
in the 2016 period. The change was primarily a result of (i) a net decrease in spending on real estate inventories-owned of
$92.3 million
in the 2017 period compared to spending of
$123.2 million
in the 2016 period, (ii) equity in income of unconsolidated joint ventures of
$1.5 million
in the 2017 period compared to
$2.4 million
in the 2016 period, and (iii) a decrease in net income to
$11.0 million
compared to net income of
$25.0 million
in the 2016 period, offset by (iv) a decrease in accrued expenses of
$13.8 million
in the 2017 period compared to an increase of
$3.4 million
in the 2016 period.
|
•
|
Net cash used in investing activities was
$0.2 million
in the 2017 period compared to net cash provided by investing activities of
$5.6 million
in the 2016 period, primarily driven by collections of related party notes of
$6.2 million
in the 2016 period with no comparable amount in the 2017 period.
|
•
|
Net cash provided by financing activities decreased to
$57.0 million
in the 2017 period from
$58.9 million
in the 2016 period. The change was primarily the result of (i) principal payments for the 8.5% Senior Notes for $425.0 million in the 2017 period, in addition to its redemption premium for
$19.6 million
, for which there is no comparable amount in the 2016 period, (ii) payment of deferred loan costs of
$9.7 million
in the 2017 period compared to
$0.2 million
in the 2016 period, and (iii) net payments of notes payable of $3.7 million in the 2017 period, versus net borrowings of $40.8 million in the 2016 period, offset by (iv) proceeds from the issuance of the 5.875% Senior Notes for
$446.5 million
in the 2017 period for which there is no comparable amount in the 2016 period, (v) net borrowings of $36.0 million against the revolving line of credit in the 2017 period versus net payments of $6.0 million in the 2016 period, and (vi) net noncontrolling interest contributions of $37.6 million in the 2017 period versus net contributions of $28.7 million in the 2016 period.
|
Active Projects (County or City)
|
Estimated
Year of First Delivery |
|
Estimated
Number of Homes at Completion (1) |
|
Cumulative
Homes Closed as of June 30, 2017 (2) |
|
Backlog
at June 30, 2017 (3) (4) |
|
Lots
Owned as of June 30, 2017 (5) |
|
Homes
Closed for the Period Ended June 30, 2017 |
|
Estimated Sales Price Range
(6) |
|
|||||
CALIFORNIA
|
|
|
|
|
|
|
|
|
|
||||||||||
Orange County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Anaheim
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Avelina
|
2017
|
|
38
|
|
|
29
|
|
|
8
|
|
|
9
|
|
|
29
|
|
|
$550,000 - 625,000
|
|
Buena Park
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
The Covey (7)
|
2016
|
|
67
|
|
|
37
|
|
|
21
|
|
|
30
|
|
|
13
|
|
|
$ 810,000 - 880,000
|
|
Cypress
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mackay Place (7)
|
2016
|
|
47
|
|
|
44
|
|
|
3
|
|
|
3
|
|
|
10
|
|
|
(8)
|
|
Dana Point
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grand Monarch
|
2015
|
|
37
|
|
|
14
|
|
|
2
|
|
|
23
|
|
|
1
|
|
|
$ 2,604,000 - 2,904,000
|
|
Ladera Ranch
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Artisan
|
2015
|
|
14
|
|
|
6
|
|
|
3
|
|
|
8
|
|
|
—
|
|
|
$ 2,550,000 - 3,025,000
|
|
Irvine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
The Vine
|
2016
|
|
106
|
|
|
53
|
|
|
17
|
|
|
37
|
|
|
22
|
|
|
$ 518,000 - 655,000
|
|
Calistoga
|
2016
|
|
60
|
|
|
24
|
|
|
20
|
|
|
36
|
|
|
9
|
|
|
$1,230,000 - $1,475,000
|
|
Celadon (7)
|
2017
|
|
79
|
|
|
—
|
|
|
18
|
|
|
79
|
|
|
—
|
|
|
$710,000 - 800,000
|
|
Rancho Mission Viejo
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Aurora (7)
|
2016
|
|
94
|
|
|
76
|
|
|
18
|
|
|
18
|
|
|
19
|
|
|
$ 480,000 - 590,000
|
|
Vireo (7)
|
2015
|
|
90
|
|
|
75
|
|
|
7
|
|
|
15
|
|
|
15
|
|
|
$ 595,000 - 660,000
|
|
Briosa (7)
|
2016
|
|
50
|
|
|
4
|
|
|
7
|
|
|
46
|
|
|
3
|
|
|
$ 945,000 - 1,045,000
|
|
Rancho Santa Margarita
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dahlia Court
|
2016
|
|
36
|
|
|
27
|
|
|
7
|
|
|
9
|
|
|
27
|
|
|
$ 515,000 - 630,000
|
|
Los Angeles County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Glendora
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
La Colina Estates
|
2015
|
|
121
|
|
|
22
|
|
|
7
|
|
|
99
|
|
|
3
|
|
|
$ 1,274,000 - 1,654,000
|
|
Lakewood
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Canvas
|
2015
|
|
72
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(8)
|
|
Claremont
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Meadow Park
|
2017
|
|
95
|
|
|
5
|
|
|
2
|
|
|
90
|
|
|
5
|
|
|
$460,000 - 575,000
|
|
Riverside County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Riverside
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SkyRidge
|
2014
|
|
90
|
|
|
35
|
|
|
14
|
|
|
55
|
|
|
13
|
|
|
$ 500,000 - 560,000
|
|
TurnLeaf
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Crossings
|
2014
|
|
42
|
|
|
28
|
|
|
11
|
|
|
14
|
|
|
9
|
|
|
$ 495,000 - 528,000
|
|
Coventry
|
2015
|
|
42
|
|
|
17
|
|
|
13
|
|
|
25
|
|
|
4
|
|
|
$ 535,000 - 565,000
|
|
Eastvale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nexus
|
2015
|
|
220
|
|
|
123
|
|
|
33
|
|
|
97
|
|
|
28
|
|
|
$ 346,000 - 395,000
|
|
San Bernardino County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Upland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
The Orchards (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Citrus Court
|
2015
|
|
77
|
|
|
58
|
|
|
13
|
|
|
19
|
|
|
13
|
|
|
$ 332,000 - 394,000
|
|
Citrus Pointe
|
2015
|
|
132
|
|
|
55
|
|
|
17
|
|
|
77
|
|
|
11
|
|
|
$ 357,000 - 412,000
|
|
Yucaipa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cedar Glen
|
2015
|
|
143
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(8)
|
|
Chino
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Laurel Lane
|
2017
|
|
70
|
|
|
—
|
|
|
6
|
|
|
70
|
|
|
—
|
|
|
$526,000 - 587,000
|
|
Alameda County
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Newark
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
The Cove
|
2016
|
|
108
|
|
|
18
|
|
|
54
|
|
|
36
|
|
|
10
|
|
|
$ 706,000 - 811,000
|
|
The Strand
|
2016
|
|
157
|
|
|
24
|
|
|
37
|
|
|
42
|
|
|
16
|
|
|
$ 767,000 - 882,000
|
|
The Banks
|
2016
|
|
120
|
|
|
28
|
|
|
44
|
|
|
52
|
|
|
24
|
|
|
$ 865,000 - 950,000
|
|
The Tides
|
2016
|
|
75
|
|
|
20
|
|
|
30
|
|
|
32
|
|
|
16
|
|
|
$ 929,000 - 959,000
|
|
The Isles
|
2016
|
|
82
|
|
|
25
|
|
|
20
|
|
|
18
|
|
|
22
|
|
|
$ 1,028,000 - 1,108,000
|
|
Contra Costa County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pittsburgh
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vista Del Mar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Victory II
|
2014
|
|
104
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(8)
|
|
CALIFORNIA TOTAL
|
|
|
2,468
|
|
|
1,166
|
|
|
432
|
|
|
1,039
|
|
|
337
|
|
|
|
|
Active Projects (County or City)
|
Estimated
Year of First Delivery |
|
Estimated
Number of Homes at Completion (1) |
|
Cumulative
Homes Closed as of June 30, 2017 (2) |
|
Backlog
at June 30, 2017 (3) (4) |
|
Lots
Owned as of June 30, 2017 (5) |
|
Homes
Closed for the Period Ended June 30, 2017 |
|
Estimated Sales Price Range
(6) |
|
|||||
ARIZONA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Maricopa County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Queen Creek
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Meridian
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Harvest
|
2015
|
|
448
|
|
|
192
|
|
|
41
|
|
|
256
|
|
|
58
|
|
|
$ 207,990 - 257,990
|
|
Homestead
|
2015
|
|
313
|
|
|
85
|
|
|
21
|
|
|
228
|
|
|
29
|
|
|
$ 245,990 - 333,990
|
|
Harmony
|
2015
|
|
259
|
|
|
48
|
|
|
17
|
|
|
211
|
|
|
19
|
|
|
$ 275,990 - 298,990
|
|
Horizons
|
2016
|
|
161
|
|
|
22
|
|
|
19
|
|
|
139
|
|
|
13
|
|
|
$ 310,990 - 391,990
|
|
Mesa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Lehi Crossing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Settlers Landing
|
2012
|
|
235
|
|
|
231
|
|
|
4
|
|
|
4
|
|
|
30
|
|
|
(8)
|
|
Wagon Trail
|
2013
|
|
244
|
|
|
202
|
|
|
36
|
|
|
42
|
|
|
50
|
|
|
$ 259,990 - 341,990
|
|
Monument Ridge
|
2013
|
|
248
|
|
|
121
|
|
|
41
|
|
|
127
|
|
|
34
|
|
|
$ 296,990 - 414,990
|
|
Albany Village
|
2016
|
|
228
|
|
|
31
|
|
|
24
|
|
|
197
|
|
|
23
|
|
|
$ 193,990 - 256,990
|
|
Peoria
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rio Vista
|
2015
|
|
197
|
|
|
194
|
|
|
3
|
|
|
3
|
|
|
19
|
|
|
(8)
|
|
ARIZONA TOTAL
|
|
|
2,333
|
|
|
1,126
|
|
|
206
|
|
|
1,207
|
|
|
275
|
|
|
|
|
Garden
|
2014
|
|
60
|
|
|
41
|
|
|
10
|
|
|
19
|
|
|
6
|
|
|
$ 422,000 - 462,000
|
|
Park
|
2015
|
|
74
|
|
|
68
|
|
|
1
|
|
|
6
|
|
|
6
|
|
|
$ 407,000 - 462,000
|
|
Larimer County
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timnath
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
West Village at Timnath Ranch North
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Park
|
2014
|
|
92
|
|
|
81
|
|
|
8
|
|
|
11
|
|
|
17
|
|
|
$ 380,000 - 430,000
|
|
Sonnet
|
2014
|
|
55
|
|
|
51
|
|
|
1
|
|
|
4
|
|
|
4
|
|
|
$ 398,000 - 470,000
|
|
The 40's Collection
|
2017
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
$ 380,500 - 446,500
|
|
The 50's Collection
|
2017
|
|
55
|
|
|
—
|
|
|
4
|
|
|
55
|
|
|
—
|
|
|
$ 410,000 - 490,000
|
|
Loveland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Lakes at Centerra
|
2015
|
|
88
|
|
|
49
|
|
|
20
|
|
|
39
|
|
|
14
|
|
|
$ 395,000 - 435,000
|
|
Denver County
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Denver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Avion at Denver Connection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Summit
|
2017
|
|
93
|
|
|
—
|
|
|
7
|
|
|
93
|
|
|
—
|
|
|
$ 330,000 - 370,000
|
|
Horizon
|
2017
|
|
191
|
|
|
—
|
|
|
10
|
|
|
191
|
|
|
—
|
|
|
$ 282,000 - 336,000
|
|
Alpine
|
2017
|
|
101
|
|
|
—
|
|
|
2
|
|
|
101
|
|
|
—
|
|
|
$ 273,000 - 303,000
|
|
Westerly
|
2017
|
|
309
|
|
|
—
|
|
|
21
|
|
|
309
|
|
|
—
|
|
|
$ 246,000 - 276,000
|
|
Boulder County
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Erie
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Flatiron Meadows
|
2017
|
|
98
|
|
|
—
|
|
|
7
|
|
|
30
|
|
|
—
|
|
|
$462,000 - 564,000
|
|
COLORADO TOTAL
|
|
|
1,713
|
|
|
473
|
|
|
126
|
|
|
1,172
|
|
|
96
|
|
|
|
|
Active Projects (County or City)
|
Estimated
Year of First Delivery |
|
Estimated
Number of Homes at Completion (1) |
|
Cumulative
Homes Closed as of June 30, 2017 (2) |
|
Backlog
at June 30, 2017 (3) (4) |
|
Lots
Owned as of June 30, 2017 (5) |
|
Homes
Closed for the Period Ended June 30, 2017 |
|
Estimated Sales Price Range
(6) |
|
|||||
WASHINGTON (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
King County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bryant Heights SF
|
2015
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(8)
|
|
Bryant Heights NC
|
2017
|
|
36
|
|
|
—
|
|
|
4
|
|
|
36
|
|
|
—
|
|
|
$614,990 - 869,990
|
|
Bryant Heights MF
|
2016
|
|
39
|
|
|
27
|
|
|
9
|
|
|
12
|
|
|
26
|
|
|
$790,990 - 939,990
|
|
Highcroft at Sammamish
|
2016
|
|
121
|
|
|
71
|
|
|
24
|
|
|
50
|
|
|
34
|
|
|
$849,990 - 1,209,990
|
|
Peasley Canyon
|
2016
|
|
153
|
|
|
74
|
|
|
31
|
|
|
55
|
|
|
39
|
|
|
$389,990 - 489,990
|
|
Ridgeview Townhomes
|
2016
|
|
40
|
|
|
36
|
|
|
4
|
|
|
4
|
|
|
30
|
|
|
(8)
|
|
High Point Block 34
|
2017
|
|
54
|
|
|
2
|
|
|
33
|
|
|
52
|
|
|
2
|
|
|
$497,990 - 734,990
|
|
Upton at Crossroads Village (7)
|
2017
|
|
176
|
|
|
—
|
|
|
13
|
|
|
176
|
|
|
—
|
|
|
$574,990 - 854,990
|
|
The Cottages at North Bend
|
2017
|
|
37
|
|
|
—
|
|
|
11
|
|
|
37
|
|
|
—
|
|
|
$489,990 - 749,990
|
|
Snohomish County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Silverlake Center
|
2015
|
|
100
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(8)
|
|
Riverfront
|
2016
|
|
425
|
|
|
48
|
|
|
63
|
|
|
377
|
|
|
42
|
|
|
$ 284,990 - 529,990
|
|
Pierce County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ovation - Oak Tree (7)
|
2017
|
|
814
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
$ 321,500 - 446,500
|
|
WASHINGTON TOTAL
|
|
|
2,009
|
|
|
372
|
|
|
192
|
|
|
929
|
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OREGON (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Clackamas County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Villebois Zion III - Townhomes
|
2014
|
|
40
|
|
|
36
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
$269,990 - 309,990
|
|
Villebois Zion III - Cottage
|
2014
|
|
46
|
|
|
37
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
$299,990 - 429,990
|
|
Villebois Zion III - Alley
|
2015
|
|
51
|
|
|
32
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
$ 339,990 - 414,990
|
|
Villebois V Fasano
|
2016
|
|
93
|
|
|
46
|
|
|
21
|
|
|
47
|
|
|
9
|
|
|
$344,990 - 429,990
|
|
Grande Pointe at Villebois Alley
|
2016
|
|
40
|
|
|
23
|
|
|
10
|
|
|
17
|
|
|
12
|
|
|
$459,990 - 483,990
|
|
Grande Pointe at Villebois FL
|
2016
|
|
60
|
|
|
23
|
|
|
7
|
|
|
37
|
|
|
11
|
|
|
$529,990 - 599,990
|
|
Villebois Lund Cottages
|
2015
|
|
67
|
|
|
61
|
|
|
4
|
|
|
6
|
|
|
25
|
|
|
$ 339,990 - 344,990
|
|
Villebois Lund Townhomes
|
2015
|
|
42
|
|
|
38
|
|
|
4
|
|
|
4
|
|
|
10
|
|
|
(8)
|
|
Villebois Lund Alley
|
2016
|
|
96
|
|
|
33
|
|
|
5
|
|
|
63
|
|
|
22
|
|
|
$ 349,990 - 464,990
|
|
Villebois Village Parcel 80
|
2016
|
|
50
|
|
|
24
|
|
|
20
|
|
|
26
|
|
|
24
|
|
|
$ 259,990 - 309,990
|
|
Villebois Village Parcel 83
|
2016
|
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(8)
|
|
Washington County:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sequoia Village - Cornelius Pass
|
2016
|
|
157
|
|
|
112
|
|
|
33
|
|
|
45
|
|
|
49
|
|
|
$ 249,990 - 339,990
|
|
Twin Creeks
|
2014
|
|
94
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(8)
|
|
Bethany West - Alley
|
2015
|
|
94
|
|
|
87
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
$ 429,990 - 489,990
|
|
Bethany West - Cottage
|
2015
|
|
61
|
|
|
60
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
$ 389,990 - 429,990
|
|
Bethany West - Traditional
|
2015
|
|
82
|
|
|
77
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
$ 569,990 - 649,990
|
|
Bethany West - Townhomes
|
2017
|
|
40
|
|
|
—
|
|
|
12
|
|
|
40
|
|
|
—
|
|
|
$569,990 - 664,990
|
|
Bethany West - Weisenfluh
|
2016
|
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(8)
|
|
Bethany Round 2 - Alley
|
2016
|
|
25
|
|
|
13
|
|
|
6
|
|
|
12
|
|
|
13
|
|
|
$429,990 - 489,990
|
|
Bethany Round 2 - Cottage
|
2016
|
|
13
|
|
|
11
|
|
|
2
|
|
|
2
|
|
|
11
|
|
|
(8)
|
|
Bethany Round 2 - Traditional
|
2016
|
|
24
|
|
|
9
|
|
|
9
|
|
|
15
|
|
|
9
|
|
|
$569,990 - 609,990
|
|
Bull Mountain 1 NW River Terrace - Alley
|
2017
|
|
35
|
|
|
3
|
|
|
7
|
|
|
32
|
|
|
3
|
|
|
$399,990 - 429,990
|
|
Bull Mountain 1 NW River Terrace - Med/Std/Lrg
|
2016
|
|
116
|
|
|
25
|
|
|
22
|
|
|
39
|
|
|
25
|
|
|
$464,990 - 594,990
|
|
Bull Mountain 1 NW River Terrace - Townhomes
|
2017
|
|
64
|
|
|
2
|
|
|
18
|
|
|
44
|
|
|
2
|
|
|
$269,990 - 294,990
|
|
Bull Mountain 2 W River Terrace - Alley
|
2016
|
|
60
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
(8)
|
|
Bull Mountain 2 W River Terrace - Med/Std
|
2016
|
|
31
|
|
|
29
|
|
|
2
|
|
|
2
|
|
|
17
|
|
|
$ 474,990 - 614,990
|
|
Bull Mountain 2 W River Terrace - Townhomes
|
2016
|
|
46
|
|
|
37
|
|
|
5
|
|
|
9
|
|
|
37
|
|
|
$274,990 - 319,990
|
|
Bull Mountain 7 Dickson
|
2016
|
|
82
|
|
|
31
|
|
|
11
|
|
|
51
|
|
|
16
|
|
|
$ 549,990 - 779,990
|
|
Sunset Ridge
|
2015
|
|
104
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(8)
|
|
OREGON TOTAL
|
|
|
1,780
|
|
|
1,174
|
|
|
201
|
|
|
531
|
|
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Future Owned and Controlled (by County)
|
|
|
|
|
|
|
|
|
Lots Owned or Controlled as of June 30, 2017 (10)
|
|
|
|
|
|
|||||
CALIFORNIA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Orange County
|
|
|
|
|
|
|
|
|
475
|
|
|
|
|
|
|
||||
San Diego County
|
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
|
||||
Riverside County
|
|
|
|
|
|
|
|
|
216
|
|
|
|
|
|
|
||||
Alameda County
|
|
|
|
|
|
|
|
|
705
|
|
|
|
|
|
|
||||
Contra Costa County
|
|
|
|
|
|
|
|
|
296
|
|
|
|
|
|
|
ARIZONA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Maricopa County (11)
|
|
|
|
|
|
|
|
|
3,453
|
|
|
|
|
|
|
||||
NEVADA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nye County (11)
|
|
|
|
|
|
|
|
|
1,925
|
|
|
|
|
|
|
||||
Clark County
|
|
|
|
|
|
|
|
|
428
|
|
|
|
|
|
|
||||
COLORADO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Arapahoe County
|
|
|
|
|
|
|
|
|
218
|
|
|
|
|
|
|
||||
Boulder County
|
|
|
|
|
|
|
|
|
192
|
|
|
|
|
|
|
||||
Grand County
|
|
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
||||
WASHINGTON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
King County
|
|
|
|
|
|
|
|
|
589
|
|
|
|
|
|
|
||||
Pierce County
|
|
|
|
|
|
|
|
|
684
|
|
|
|
|
|
|
||||
Snohomish County
|
|
|
|
|
|
|
|
|
74
|
|
|
|
|
|
|
||||
OREGON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Clackamas County
|
|
|
|
|
|
|
|
|
305
|
|
|
|
|
|
|
||||
Washington County
|
|
|
|
|
|
|
|
|
2,999
|
|
|
|
|
|
|
||||
TOTAL FUTURE
|
|
|
|
|
|
|
|
|
12,647
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GRAND TOTALS
|
|
|
12,017
|
|
|
4,988
|
|
|
1,285
|
|
|
18,533
|
|
|
1,330
|
|
|
|
|
(1)
|
The estimated number of homes to be built at completion is approximate and includes home sites in our backlog. Such estimated amounts are subject to change based on, among other things, future site planning, as well as zoning and permit changes, and there can be no assurance that the Company will build these homes. Further, certain projects may include lots that the Company controls, and that are also reflected in "Future Owned and Controlled".
|
(2)
|
“Cumulative Homes Closed” represents homes closed since the project opened, and may include prior years, in addition to the homes closed during the current year presented.
|
(3)
|
Backlog consists of homes sold under sales contracts that have not yet closed, and there can be no assurance that closings of sold homes will occur.
|
(4)
|
Of the total homes subject to pending sales contracts as of
June 30, 2017
, 1,201 represent homes that are completed or under construction.
|
(5)
|
Lots owned as of
June 30, 2017
include lots in backlog at
June 30, 2017
.
|
(6)
|
Estimated sales price range reflects the most recent pricing updates of the base price only and excludes any lot premium, buyer incentive and buyer selected options, which vary from project to project. Sales prices reflect current pricing estimates and might not be indicative of past or future pricing. Further, any potential benefit to be gained from an increase in sales price ranges as compared to previously estimated amounts may be offset by increases in costs, profit participation, and other factors.
|
(7)
|
Project is a joint venture and is consolidated as a VIE in accordance with ASC 810, Consolidation.
|
(8)
|
Project is completely sold out, therefore the sales price range is not applicable as of
June 30, 2017
.
|
(9)
|
The Company's Washington and Oregon segments were acquired on August 12, 2014 as part of the Polygon Acquisition. Estimated number of homes at completion is the number of homes to be built post-acquisition. Homes closed are from acquisition date through
June 30, 2017
.
|
(10)
|
Includes projects with lots owned as of
June 30, 2017
that are expected to open for sale and have an estimated year of first delivery of 2018 or later, as well as lots controlled as of
June 30, 2017
, and parcels of undeveloped land held for future sale. Certain lots controlled are under land banking arrangements which may become owned and produce deliveries during 2017. Actual homes at completion may change prior to the marketing and sales of homes in these projects and the sales price ranges for these projects are to be determined and will be based on current market conditions and other factors upon the commencement of active selling. There can be no assurance that the Company will acquire any of the controlled lots reflected in these amounts.
|
(11)
|
Represents a parcel of undeveloped land held for future sale. It is unknown when the Company plans to develop homes on this land.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Years ending December 31,
|
|
Thereafter
|
|
Total
|
|
Fair Value at
June 30, 2017
|
||||||||||||||||||||||||
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
|||||||||||||||||||||
Fixed rate debt
|
$
|
6,468
|
|
|
$
|
17,075
|
|
|
$
|
150,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
800,000
|
|
|
$
|
973,543
|
|
|
$
|
1,000,264
|
|
Interest rate
|
5.5 - 7.0%
|
|
|
7.0
|
%
|
|
5.75
|
%
|
|
—
|
|
|
—
|
|
|
5.875 - 7.0%
|
|
|
—
|
|
|
—
|
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosure
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
+
|
Filed herewith
|
|
|
*
|
The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections.
|
|
WILLIAM LYON HOMES,
|
|
|
a Delaware corporation
|
|
|
|
|
Date: August 8, 2017
|
By:
|
/
S
/ C
OLIN
T. S
EVERN
|
|
|
Colin T. Severn
|
|
|
Senior Vice President, Chief Financial Officer
(Principal Accounting Officer and Duly Authorized Signatory)
|
+
|
Filed herewith
|
|
|
*
|
The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections.
|
Period
|
Maximum Leverage Ratio
|
June 30, 2016 through and including December 30, 2016
|
65%
|
December 31, 2016 through and including December 30, 2017
|
62.5%
|
December 31, 2017 and thereafter
|
60%
|
WILLIAM LYON HOMES, INC.,
|
|
By /s/ Matthew R. Zaist
|
|
|
|
|
Name: Matthew R. Zaist
|
|
Title: President & Chief Executive Officer
|
|
|
|
|
By /s/ Colin T. Severn
|
|
|
|
|
Name: Colin T. Severn
|
|
Title: Senior Vice President and Chief Financial Officer
|
|
|
WILLIAM LYON HOMES,
|
|
By /s/ Matthew R. Zaist
|
|
|
|
|
Name: Matthew R. Zaist
|
|
Title: President & Chief Executive Officer
|
|
|
|
|
By /s/ Colin T. Severn
|
|
|
|
|
Name: Colin T. Severn
|
|
Title: Senior Vice President and Chief Financial Officer
|
|
|
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, individually and as Administrative Agent,
|
|
By /s/ William O’Daly
|
|
|
|
|
Name: William O’Daly
|
|
Title: Authorized Signatory
|
|
|
By /s/ Karim Rahimtoola
|
|
|
|
|
Name: Karim Rahimtoola
|
|
Title: Authorized Signatory
|
COMERICA BANK
|
|
By /s/ David Plattner
|
|
|
|
|
Name: David Plattner
|
|
Title: VP - Western Market
|
|
|
Name of Lender: Citibank, N.A.
|
|
By /s/ Michael Vondriska
|
|
|
|
|
Name: Michael Vondriska
|
|
Title: Vice President
|
|
|
Name of Lender: JPMorgan Chase Bank, N.A.
|
|
By /s/ Chiara Carter
|
|
|
|
|
Name: Chiara Carter
|
|
Title: Executive Director
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of William Lyon Homes;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 8, 2017
|
/S/ Matthew R. Zaist
|
|
Matthew R. Zaist
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of William Lyon Homes;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 8, 2017
|
/S/ COLIN T. SEVERN
|
|
Colin T. Severn
|
|
Senior Vice President, Chief Financial Officer
|
/S/ Matthew R. Zaist
|
Matthew R. Zaist
|
President and Chief Executive Officer
|
/S/ COLIN T. SEVERN
|
Colin T. Severn
|
Senior Vice President, Chief Financial Officer
|