William Lyon Homes (NYSE: WLH) late Friday reported net income of $14.6 million, up 19%, or $0.38 per diluted share for its 2016 second quarter ended June 30, 2016. Analysts were expecting a profit of $0.42 per share.
Home sales revenue was up 31% to $325.1 million as deliveries rose 20% to 663 homes and the average sales price of new homes delivered increased 9% to $490,300, all compared to the same quarter last year. Net new home orders were 871, up 3%; the dollar value of orders was $423.6 million, up 13%.
Units in backlog were up 13% to 1,093 while the dollar value of homes in backlog rose 22% to $575.5 million.
Average sales locations was up 7% to 72.
Home building gross margin came in at 17.4% for the quarter up 19% and the adjusted home building gross margin percentage was 24.0%. SG&A was 10.7%, down from11.4%.
“We ... executed on an active spring selling season with net new home orders of 871, which was a monthly absorption rate of 4.0 sales per community during the quarter, ending the quarter with a rate of 4.2 sales per community in June,” said Matthew R. Zaist, chairman and CEO. “For the remainder of 2016, we will continue to focus on executing on our strategic initiatives, including conversion of our substantial backlog, which stands at 1,093 units with an associated value of $575.5 million, the highest levels since 2006.”
At quarter's end, cash and cash equivalents totaled $39.8 million, real estate inventories totaled $1.8 billion, total assets were $2.1 billion and total equity was $726.8 million. Total debt to book capitalization was 61.6%, and net debt to net book capitalization was 60.8% at June 30, 2016, compared to 62.2% and 61.1%, respectively, as of December 31, 2015.