RYL

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_______________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

April 30, 2015
Date of Report
(Date of earliest event reported)

THE RYLAND GROUP, INC.

(Exact Name of Registrant as Specified in Charter)

3011 Townsgate Road, Suite 200, Westlake Village, CA  91361-3027

Registrant’s telephone number, including area code: (805) 367-3800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02                                           Results of Operations and Financial Condition

On April 30, 2015, The Ryland Group, Inc. announced financial results for the three months ended March 31, 2015.  A copy of this press release is attached hereto as Exhibit 99.  The information in Exhibit 99 is being furnished pursuant to Item 2.02 of Form 8-K.

The information in this report, including Exhibit 99 attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01                                           Financial Statements and Exhibits

(d)  Exhibits

Exhibit 99                     Press release dated April 30, 2015

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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EXHIBIT INDEX

Exhibit 99

RYLAND REPORTS RESULTS FOR THE FIRST QUARTER OF 2015

WESTLAKE VILLAGE, Calif. (April 30, 2015) – The Ryland Group, Inc. (NYSE: RYL) today announced results for its quarter ended March 31, 2015.  Items of note included:

·                 Net income increased 12.5 percent to $26.5 million, or $0.47 per diluted share, for the first quarter of 2015 from $23.5 million, or $0.42 per diluted share, for the first quarter of 2014;

·                 Pretax earnings rose 8.3 percent to $41.3 million for the quarter ended March 31, 2015, compared to $38.2 million for the quarter ended March 31, 2014;

·                 Revenues totaled $517.4 million for the quarter ended March 31, 2015, representing a 5.7 percent increase from $489.7 million for the quarter ended March 31, 2014;

·                 New order dollars rose 11.5 percent to $813.3 million for the first quarter of 2015, compared to the same period in 2014, and new orders increased 9.3 percent to 2,389 units for the first quarter of 2015, compared to the first quarter of 2014;

·                 The dollar value of the Company’s backlog was $1.2 billion at March 31, 2015, an 11.5 percent increase from March 31, 2014.  Backlog rose 6.0 percent to 3,543 units at March 31, 2015, from March 31, 2014;

·                 Average closing price increased 4.9 percent to $343,000 for the quarter ended March 31, 2015, from $327,000 for the same period in 2014;

·                 Selling, general and administrative expense totaled 12.7 percent of homebuilding revenues for the first quarter of 2015, compared to 13.0 percent for the first quarter of 2014;

·                 Active communities increased 14.5 percent to 340 communities at March 31, 2015, from 297 communities at March 31, 2014;

·                 After settling its 5.4 percent senior notes using existing cash of $126.5 million during the quarter, the Company’s cash, cash equivalents and marketable securities totaled $377.4 million at March 31, 2015, compared to $574.8 million at December 31, 2014; and

·                 Net debt-to-capital ratio was 44.9 percent at March 31, 2015, compared to 43.3 percent at December 31, 2014.

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RYLAND FIRST-QUARTER RESULTS

RESULTS FOR THE FIRST QUARTER OF 2015

For the quarter ended March 31, 2015, the Company reported net income of $26.5 million, or $0.47 per diluted share, compared to $23.5 million, or $0.42 per diluted share, for the same period in 2014.

The homebuilding segments reported pretax earnings of $44.1 million for the first quarter of 2015, compared to $46.2 million for the same period in 2014.  This decrease in pretax earnings was primarily due to lower housing gross profit margin, partially offset by an increase in homebuilding revenues and a reduction in selling, general and administrative expense as a percentage of homebuilding revenues.

For the first quarter of 2015, homebuilding revenues increased 4.9 percent to $505.0 million from $481.5 million for the same period in 2014.  The improvement in homebuilding revenues was attributable to a rise in average closing price, which was $343,000 for the first quarter of 2015, versus $327,000 for the same period in 2014. Closings were flat at 1,463 units for the quarter ended March 31, 2015, compared to 1,470 units for the same period in the prior year.  Homebuilding revenues for the first quarter of 2015 included $3.4 million from land sales, which resulted in pretax earnings of $717,000, compared to homebuilding revenues for the first quarter of 2014 that included $844,000 from land sales, which resulted in pretax earnings of $157,000.

New orders increased 9.3 percent to 2,389 units for the quarter ended March 31, 2015, from 2,186 units for the same period in 2014.  The Company had an average monthly sales absorption rate of 2.3 homes per community for the quarter ended March 31, 2015, versus 2.5 homes per community for the quarter ended March 31, 2014, and an average cancellation rate of 15.1 percent for the quarter ended March 31, 2015, versus 15.3 percent for the same period in 2014.  For the first quarter of 2015, new order dollars rose 11.5 percent to $813.3 million from $729.4 million for the first quarter of 2014.  At March 31, 2015, backlog increased 6.0 percent to 3,543 units from 3,342 units at March 31, 2014.  The dollar value of the Company’s backlog was $1.2 billion at March 31, 2015, reflecting an 11.5 percent rise from $1.1 billion at March 31, 2014.

Housing gross profit margin was 19.7 percent for the quarter ended March 31, 2015, compared to 21.1 percent for the quarter ended March 31, 2014.  This decline in housing gross profit margin was primarily driven by the relative mix of closings within the Company’s markets during the first quarter of 2015, compared to the same period in the prior year.  Sales incentives and price concessions totaled 7.6 percent of housing revenues for the first quarter of 2015, compared to 6.4 percent for the same period in 2014.

Selling, general and administrative expense totaled 12.7 percent of homebuilding revenues for the first quarter of 2015, compared to 13.0 percent for the first quarter of 2014.  This decrease was primarily attributable to improved leverage that resulted from increased revenues.

For the quarter ended March 31, 2015, the financial services segment reported pretax earnings of $5.1 million, compared to a pretax loss of $1.4 million for the quarter ended March 31, 2014.  This increase in pretax earnings was primarily attributable to higher locked loan and origination volumes during the first quarter of 2015, compared to the same period in 2014, as well as to a reduction in financial services expense that related to a change in the estimate of ultimate insurance loss liability in the prior year.

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RYLAND FIRST-QUARTER RESULTS

DEBT MATURITY IN JANUARY 2015

The Company used existing cash of $126.5 million to settle its 5.4 percent senior notes that matured in January 2015.

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RYLAND FIRST-QUARTER RESULTS

Headquartered in Southern California, Ryland is one of the nation’s largest homebuilders and a leading mortgage-finance company.  Since its founding in 1967, Ryland has built more than 315,000 homes and financed more than 260,000 mortgages.  The Company currently operates in 17 states across the country and is listed on the New York Stock Exchange under the symbol “RYL.”  For more information, please visit www.ryland.com.

Note:  Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties which include, among others:

·                  economic changes nationally or in the Company’s local markets, including volatility and increases in interest rates, the impact of, and changes in, governmental stimulus, tax and deficit reduction programs, inflation, changes in consumer demand and confidence levels and the state of the market for homes in general;

·                  changes and developments in the mortgage lending market, including revisions to underwriting standards for borrowers and lender requirements for originating and holding mortgages, changes in government support of and participation in such market, and delays or changes in terms and conditions for the sale of mortgages originated by the Company;

·                  the availability and cost of land and the future value of land held or under development;

·                  increased land development costs on projects under development;

·                  shortages of skilled labor or raw materials used in the production of homes;

·                  increased prices for labor, land and materials used in the production of homes;

·                  increased competition;

·                  failure to anticipate or react to changing consumer preferences in home design;

·                  increased costs and delays in land development or home construction resulting from adverse weather conditions or other factors;

·                  potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations or governmental policies (including those that affect zoning, density, building standards, the environment and the residential mortgage industry);

·                 delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company’s communities and land activities;

·                  changes in the Company’s effective tax rate and assumptions and valuations related to its tax accounts;

·                  the risk factors set forth in the Company’s most recent Annual Report on Form 10-K; and

·                  other factors over which the Company has little or no control.

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Four financial-statement pages to follow.

THE RYLAND GROUP, INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

(in thousands, except share data)

THE RYLAND GROUP, INC. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

THE RYLAND GROUP, INC. and Subsidiaries

SEGMENT INFORMATION (Unaudited)

THE RYLAND GROUP, INC. and Subsidiaries

SUPPLEMENTAL INFORMATION (Unaudited)