Stock Monitor: Beazer Homes USA Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 06, 2017 / Active-Investors free earnings report on William Lyon Homes (NYSE: WLH) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=WLH. William Lyon Homes reported its third quarter fiscal 2017 operating results on October 31, 2017. The homebuilder outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
For the quarter ended September 30, 2017, William Lyon reported operating revenues of $490.34 million, up 43% compared to revenue of $342.71 million in Q3 2016. The Company's revenue numbers topped analysts' estimates of $486.57 million.
For Q3 2017, William Lyon recorded operating income of $43.17 million, up 102% versus operating income of $21.32 million in Q3 2016. The Company's adjusted EBITDA for the reported quarter soared 68% to $72.1 million.
William Lyon reported net income available to common stockholders of $27.42 million, up 110% compared to net income of $13.07 million. The Company's earnings per diluted share for the reported quarter more than doubled, surging by 109% to $0.71 on a y-o-y basis and came in ahead of Wall Street's estimates of $0.67.
During Q3 2017, William Lyon's Home sales revenue totaled $490.3 million compared to $342.6 million in Q3 2016, reflecting growth of 43%, driven by a 26% increase in deliveries to 851 homes compared to 673 in the year-ago corresponding period, combined with an increase in the average sales price of homes delivered to $576,200, up 13% from the prior year.
William Lyon's dollar value of orders was $425.5 million for Q3 2017, an increase of 22% from $348.7 million in the year-ago same period. The Company's net new home orders were 774 for the reported quarter, up 19% from 651 in the year-earlier same quarter. The overall increase in net new home orders was driven by an increase in community count to 86 average sales locations, from 78 in the year-ago same period, combined with a 7% increase in the monthly absorption rate from 2.8 sales per community in the year-ago same period to 3.0 sales per community in Q3 2017.
William Lyon reported dollar value of homes in backlog of $699.3 million as of September 30, 2017, representing growth of 18% compared to $591.0 million as of September 30, 2016. The increase was driven by a 13% increase in units in backlog to 1,208 from 1,071 in the year-ago corresponding period and a 5% increase in Average Sales Price (ASP) in backlog to $578,900 from $551,900 in Q3 2016.
William Lyon's Homebuilding gross margin percentage for homes closed during Q3 2017 was 18.1%, up from 16.6% gross margin percentage in the year-ago comparable period. The Company's adjusted homebuilding gross margin percentage for the reported quarter was 23.6%, up from 22.2% adjusted gross margin percentage in the prior year's same period.
During Q3 2017, William Lyon's sales and marketing expense was 4.5% of homebuilding revenue compared to the year-ago same quarter of 5.3% of revenue, attributed to lower advertising expense. The Company has focused on more efficient advertising spending using social media and mobile applications to offset higher outside broker costs.
At the end of Q3 2017, William Lyon's cash and cash equivalents totaled $43.6 million, real estate inventories totaled $1.9 billion, total assets were $2.1 billion, and total equity was $826.0 million.
The Company's total debt to book capitalization was 57.1%, and net debt to total capital (net of cash) was 56.1% at September 30, 2017, compared to 61.6% and 60.8% at September 30, 2016, and 58.6% and 57.6% at December 31, 2016, respectively.
William Lyon is forecasting Q4 2017 results to include backlog conversion of 85% to 92%, sequential gross margin improvement of 50 to 70 basis points, sequential SG&A improvement of 20 to 30 basis points and pre-tax income of $60.0 million to $65.0 million.
Stock Performance Snapshot
December 05, 2017 - At Tuesday's closing bell, William Lyon Homes' stock was slightly down 0.89%, ending the trading session at $28.96.
Volume traded for the day: 489.81 thousand shares, which was above the 3-month average volume of 422.00 thousand shares.
Stock performance in the last month – up 5.85%; previous three-month period – up 21.07%; past twelve-month period – up 41.27%; and year-to-date – up 52.18%
After yesterday's close, William Lyon Homes' market cap was at $908.76 million.
Price to Earnings (P/E) ratio was at 18.98.
The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry.
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