William Lyon Homes, Newport Beach, Calif., on Thursday reported net income of $39.4 million for the second quarter ended June 30, 2009, compared to net loss of $38.9 million for the comparable period a year ago.

Lyon, which is not publicly traded, reports results for the benefit of holders of its debt.

Much of the gain was attributable to the closing of Lyon's cash tender offer to purchase its outstanding senior notes, which totaled $53,135,000, for a total of $14,925,300, plus accrued interest. The net gain resulting from the transaction totaled $37,040,000.

Consolidated operating revenue, including joint ventures, fell 45% to $77.4 million as home closings fell 37% to 202 and the average price of closed homes fell 20% to $333,700, compared to the same quarter last year. New orders were down 36% to 269 homes. Sales locations were down 40% to 26, and the number of new home orders per average sales location increased slightly to 10.3 for the three months ended June 30, 2009 from 9.7 during the year-ago quarter.

Backlog totaled 301 homes, down 33%, with backlog value down 54% to $74.2 million.

The company owned 9,757 lots internally and 741 through joint ventures at quarter's end, down from 10,067 and 2,540, respectively, at the same time last year. Optioned lots, including joint ventures, rose to 1,119 from 862.

For the first half of 2009, the company posted a net loss of $29.6 million, driven largely by a $37.9 write-off of land deposits and pre-acquisition costs incurred during the first quarter.