The Ryland Group, Inc. (NYSE:RYL) today announced a loss of $54.7 million, or $1.30 per share, for the third quarter ended September 30, 2007.
The company disclosed pretax charges for inventory valuation adjustments and write-offs of $128.1 million for the quarter, which effectively took what would have been earnings of $0.46 per share down to the loss of $1.30. Revenues were off 35.2% from the same quarter last year, to $732.3 million
Closings were down 32.3% from last year's thrid quarter; new orders were down 20.9% to 1,876 units; and inventory of houses started and unsold declined to 1,362 units at September 30, 2007, a decrease of 21.9% from yearend 2006 and percent and 30.2% from September 30, 2006.
Ryland's gross profit margins averaged a negative 0.3%, but would have been 17.4% prior to inventory valuation adjustments and write-offs, compared to 22.5% for the same period in 2006. Positive operating cash flow was $42.6 million for the third quarter, which was primarily used to reduce debt by $36.9 million. The company's net debt-to-total capital ratio was 40.4% at the end of the quarter.