William Lyon Homes

2017 Performance Final Grade: 68.57/100
2016 Final Grade: 69.1/100
C+/B-

25.71/40

Change YoY
Net debt-to-capital 44.8% -1,150bps
Pretax home building income
(in millions)
$140.1 49.1%
Total SG&A/Total revenue 9.8% --
Total SG&A
(in millions)
$176.4 20.9%
Return on invested capital 2.6% -70bps
Return on equity 6.5% -250bps
Total shareholder return 52.5% --
EPS $1.30 -19.8%

10.48/20

Change YoY
Community count 77 -4
Share of lots optioned to total controlled 24% 1.2%

16.19/20

Change YoY
Home building gross margins 17.6% 50bps
Sales per month to break even
(per community)
1.90 --
Revenue per employee
(in millions)
$2.8 17.4%
Change YoY
Closings 3,239 16.5%
Sales velocity
(per community per month)
3.6 26.2%
Unit backlog 822 12.1%


Total revenue (in millions):$1,796
HB revenue (in millions): $1,795
Debt per share: $27.81
Equity per basic share: $21.07
HB pretax margin: 7.8%
Backlog value (in millions): $433.0
Inventory (in millions):$1,699.9
Lot supply (in years): 5.4

William Lyon Homes (NYSE: WLH) improved its margin to 18.9%, an increase of 80 basis points above the third quarter of 2017, 240 basis points above the second quarter of 2017, and 190 basis points year over year. It ended 2017 with total liquidity of roughly $344.9 million and net debt-to-capital of 49.6%. On the day it reported 2017 results, WLH announced definitive agreements to acquire RSI Communities, a Southern California and Texas-based home builder.