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The Ryland Group Inc. (RYL) filed Quarterly Report for the period ended 2011-09-30.
Ryland Group Inc. has a market cap of $592.9 million; its shares were traded at around $13.35 with and P/S ratio of 0.6. The dividend yield of Ryland Group Inc. stocks is 0.9%.
This is the annual revenues and earnings per share of RYL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RYL.
Highlight of Business Operations:
At September 30, 2011 and December 31, 2010, the Company’s investments in its unconsolidated joint ventures totaled $10.0 million and $13.3 million, respectively, and were classified in “Other” assets within the Consolidated Balance Sheets. For the three months ended September 30, 2011, the Company’s equity in earnings from its unconsolidated joint ventures totaled $349,000, compared to equity in earnings of $62,000 for the same period in 2010. For the nine months ended September 30, 2011, the Company’s equity in losses from its unconsolidated joint ventures totaled $1.3 million, compared to equity in earnings of $218,000 for the same period in 2010. During the second quarter of 2011, the Company recorded a $1.9 million impairment related to a commercial parcel in a joint venture in Chicago.Options on futures contracts are exchange traded and based on quoted market prices (Level 1). Mortgage loans held-for-sale and forward-delivery contracts are based on quoted market prices of similar instruments (Level 2). Mortgage interest rate lock commitments (“IRLCs”) are valued at their aggregate market price premium or deficit, plus a servicing premium, multiplied by the projected close ratio (Level 3). The market price premium or deficit is based on quoted market prices of similar instruments; the servicing premium is based on contractual investor guidelines for each product; and the projected close ratio is determined utilizing an external modeling system, widely used within the industry, to estimate customer behavior at an individual loan level. At September 30, 2011, contractual principal amounts of loans held-for-sale totaled $32.7 million, compared to $9.6 million at December 31, 2010. Mortgage loans held-for-sale, options on futures contracts and IRLCs were included in “Other” assets within the Consolidated Balance Sheets, and forward-delivery contracts were included in “Other” assets and “Accrued and other liabilities” within the Consolidated Balance Sheets. Gains realized on the conversion of IRLCs to loans totaled $4.2 million and $4.1 million for the three-month periods ended September 30, 2011 and 2010, respectively, and totaled $10.7 million and $14.8 million for the nine-month periods ended September 30, 2011 and 2010, respectively. The Company recognized a $2.0 million increase in the fair value of the pipeline of IRLCs for the three months ended September 30, 2011, compared to a $347,000 decrease for the same period in 2010. Increases in the fair value of the locked loan pipeline totaled $3.8 million and $670,000 for the nine-month periods ended September 30, 2011 and 2010, respectively. Offsetting these items, losses from forward-delivery contracts and options on futures contracts used to hedge IRLCs totaled $4.3 million and $1.7 million for the three-month periods ended September 30, 2011 and 2010, respectively, and totaled $6.5 million and $6.6 million for the nine-month periods ended September 30, 2011 and 2010, respectively. Net gains and losses related to forward-delivery contracts, options on futures contracts and IRLCs were included in “Financial services” revenues within the Consolidated Statements of Earnings.
The Company has a supplemental nonqualified retirement plan, which generally vests over five-year periods beginning in 2003, pursuant to which it will pay supplemental pension benefits to key employees upon retirement. In connection with this plan, the Company has purchased cost-recovery life insurance on the lives of certain employees. Insurance contracts associated with the plan are held by trusts established as part of the plan to implement and carry out its provisions and finance its related benefits. The trusts are owners and beneficiaries of such contracts. The amount of coverage is designed to provide sufficient revenue to cover all costs of the plan if assumptions made as to employment term, mortality experience, policy earnings and other factors are realized. At September 30, 2011, the cash surrender value of these contracts was $10.5 million, compared to $10.1 million at December 31, 2010, and was included in “Other” assets within the Consolidated Balance Sheets. The net periodic benefit cost of this plan for the three months ended September 30, 2011, totaled $1.6 million, which included service costs of $28,000, interest costs of $183,000 and an investment loss of $1.4 million. The net periodic benefit income for the three months ended September 30, 2010, totaled $247,000, which included service costs of $46,000, interest costs of $149,000 and an investment gain of $442,000. The net periodic benefit cost of this plan for the nine months ended September 30, 2011, totaled $2.0 million, which included service costs of $318,000, interest costs of $549,000 and an investment loss of $1.1 million. The net periodic benefit cost for the nine months ended September 30, 2010, totaled $747,000, which included service costs of $154,000, interest costs of $498,000 and an investment loss of $95,000. The $11.1 million and $10.3 million projected benefit obligations at September 30, 2011 and December 31, 2010, respectively, were equal to the net liabilities recognized in the Consolidated Balance Sheets at those dates. The discount rate used for the plan was 7.0 percent.
For the three months ended September 30, 2011, the Company reported a consolidated net loss of $21.3 million, or $0.48 per diluted share, compared to a consolidated net loss of $29.9 million, or $0.68 per diluted share, for the same period in 2010. The Company’s net loss from continuing operations totaled $3.9 million, or $0.09 per diluted share, for the quarter ended September 30, 2011, compared to a net loss of $29.0 million, or $0.66 per diluted share, for the same period in 2010. The decrease in net loss for 2011, compared to 2010, was primarily due to higher closing volume, lower inventory and other valuation adjustments and write-offs, a decline in interest expense and a reduced selling, general and administrative expense ratio. In spite of reporting a net loss, the Company continued its progress toward profitability by increasing closing volume; raising gross margins through continued investments in new, more profitable communities; exiting and completing less desirable markets and communities; cautiously growing overall inventory levels while reducing debt, lowering interest expense; and decreasing selling, general and administrative expense through cost-saving initiatives and leverage.
The Company’s revenues rose 23.0 percent to $249.0 million for the three months ended September 30, 2011, from $202.5 million for the same period in 2010. This increase was primarily attributable to a 19.8 percent rise in closings and to a 2.4 percent increase in average closing price. The increase in average closing price was due to a change in the product and geography mix of homes delivered during the quarter, versus the same period in 2010. Revenues for the homebuilding and financial services segments were $241.3 million and $7.6 million, respectively, for the third quarter of 2011, compared to $196.2 million and $6.3 million, respectively, for the third quarter of 2010.
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