You Need to Taste this William Lyon Homes (NYSE: WLH)

On 13 Jan 2020, William Lyon Homes stock identified change of 90.32% away from 52-week low price and recently located move of -1.24% off 52-week high price. WLH stock has been recorded 4.89% away from 50 day moving average and 12.31% away from 200 day moving average. Moving closer, we can see that shares have been trading 5.62% off 20-day moving average.

William Lyon Homes (WLH) reported results for its third quarter ended September 30, 2019.

2019 Third Quarter Highlights

Net income accessible to ordinary stockholders of $9.5M, or $0.24 per diluted share contrast to $26.6M, or $0.68 per diluted share in the previous year

Adjusted net income accessible to ordinary stockholders of $16.1M, or $0.41 per diluted share contrast to $26.6M, or $0.68 per diluted share in the previous year; adjusted for

Pre-tax income of $22.3M and adjusted pre-tax income of $30.8M

Home sales revenue of $464.8M, down 13%

New home deliveries of 995 homes, down 6%

Homebuilding gross margin percentage of 15.1%

Average sales price (ASP) of new homes delivered of $467,100, contrast to $506,700

Net new home orders of 940, down 6%

Average sales locations of 114

Units in backlog of 1,368

SG&A percentage of 11.9%, contrast to 11.0%

Adjusted EBITDA of $41.7M

Operating Results
Home sales revenue for the third quarter of 2019 was $464.8M, as contrast to $533.5M in the year-before period, a decrease of 13%.  The decrease was driven by a 6% decrease in the number of homes closed in 2019, as contrast to the previous year period, as well as a decrease in ASP from $506,700 in the third quarter of 2018, to about $467,100 in 2019.

Net new home orders for the quarter were 940, a decrease of 6% from 1,001 in the third quarter of 2018.  Our average community count reduced 2% to 114 averages sales location during the third quarter of 2019, contrast to 116 during the third quarter of 2018.  Overall, our monthly absorption rate for the quarter was 2.7 sales per community, contrast to 2.9 sales per community in the third quarter of last year.  Our monthly absorption pace during the quarter was 2.8 in July, 2.5 in August and 2.8 in September.

Adjusted gross margin percentage was 20.6% during the quarter, not including capitalized interest and a one-time inventory charge of $6.6M ($5.2M, net of tax), related to costs associated with certain before closed out projects.

Sales and marketing expense during the third quarter of 2019 was 5.4% of homebuilding revenue.  This was consistent with the previous year quarter and reflected 10 basis points of sequential improvement from the second quarter.  General and administrative expenses increased to 6.5% of homebuilding revenue, contrast to 5.6% in the year-before quarter.  The increase in general and administrative expense percentage over the previous year is primarily Because of lower revenue as our general and administrative dollars were consistent with the previous year.

Pre-tax income was $22.3M and adjusted pre-tax income was $30.8M. Provision for income tax was $4.8M, for an effective tax rate of 21.5%, contrast to a provision of $9.0M, or 22.0%, in the previous year.  Net income attributable to non-controlling interest was $8.0M during the third quarter, as contrast to $5.3M in the previous year.

Financial Services
In July 2019, we reported the formation of ClosingMark Financial Group, LLC, a wholly-owned subsidiary operating a full suite of financial services offerings, including title agency, settlement, and mortgage services for our homebuyers and other retail consumers, which operates as ClosingMark Home Loans.  During the third quarter, we completed the integration of our previous mortgage joint venture operations and loan pipeline into this platform under the ClosingMark Home Loans brand.

 The Industrial Goods sector company, William Lyon Homes noticed change of 0.80% to $21.43 along volume of 366448 shares in recent session compared to an average volume of 694.38K. WLH’s shares are at 7.80% for the quarter and driving a 71.99% return over the course of the past year and is now at 7.26% since this point in 2018.There are 38.49M shares outstanding and 33.42M shares are floated in market. Right now the stock beta is 1.29.


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