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
 
July 30, 2015

Date of Report

(Date of earliest event reported)
 
THE RYLAND GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
 
 
Maryland
 
001-08029
 
52-0849948
 
 
 
 
 
(State or Other Jurisdiction of
Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
3011 Townsgate Road, Suite 200, Westlake Village, CA  91361-3027
 
(Address of Principal Executive Offices)
 
(ZIP Code)
 
 
Registrant’s telephone number, including area code: (805) 367-3800
 
 
 
Not Applicable
 
 
 
 
 
(Former Name or Former Address, if Changed Since Last Report)
 
 
 
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:
 
[X] 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 July 30, 2015, The Ryland Group, Inc. announced financial results for the three and six months ended June 30, 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 July 30, 2015




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.
 
 
THE RYLAND GROUP, INC.
 
 
 
 
 
 
Date: July 30, 2015
By:
/s/ Gordon A. Milne
 
 
 
Gordon A. Milne
 
 
Executive Vice President, Chief Financial
Officer and Chief Accounting Officer




EXHIBIT INDEX
 
Exhibit Number
 
Description
 
 
 
99

 
Press release dated July 30, 2015








 
 
News Release
 
The Ryland Group, Inc.
www.ryland.com
 
FOR IMMEDIATE RELEASE
CONTACT: Gordon Milne     (805) 367-3720
 
 
RYLAND REPORTS RESULTS FOR THE SECOND QUARTER OF 2015
 
WESTLAKE VILLAGE, Calif. (June 30, 2015) – The Ryland Group, Inc. (NYSE: RYL) today announced results for its quarter ended June 30, 2015.  Items of note included:
  
•
Net income increased 33.0 percent to $42.6 million, or $0.75 per diluted share, for the second quarter of 2015 from $32.0 million, or $0.57 per diluted share, for the second quarter of 2014;
 
•
Pretax earnings rose 27.5 percent to $66.5 million for the quarter ended June 30, 2015, compared to $52.2 million for the quarter ended June 30, 2014;
 
•
Revenues totaled $653.6 million for the quarter ended June 30, 2015, representing a 13.2 percent increase from $577.4 million for the quarter ended June 30, 2014;
 
•
New orders increased 7.1 percent to 2,387 units for the second quarter of 2015, compared to the second quarter of 2014, and new order dollars rose 6.8 percent to $813.0 million for the second quarter of 2015, compared to the same period in 2014;
 
•
Backlog rose 6.4 percent to 4,116 units at June 30, 2015, from June 30, 2014. The dollar value of the Company’s backlog was $1.4 billion at June 30, 2015, an 8.3 percent increase from June 30, 2014;
 
•
Average closing price increased 5.4 percent to $351,000 for the quarter ended June 30, 2015, from $333,000 for the same period in 2014;
 
•
Selling, general and administrative expense totaled 10.9 percent of homebuilding revenues for the second quarter of 2015, compared to 11.8 percent for the second quarter of 2014;
 
•
Active communities increased 12.1 percent to 344 communities at June 30, 2015, from 307 communities at June 30, 2014;  
•
Net debt-to-capital ratio was 45.6 percent at June 30, 2015, compared to 43.3 percent at December 31, 2014; and
•
Transaction costs related to the proposed merger with Standard Pacific totaled $3.6 million during the second quarter of 2015.
 







Page 2
RYLAND SECOND-QUARTER RESULTS
 
RESULTS FOR THE SECOND QUARTER OF 2015
 
For the quarter ended June 30, 2015, the Company reported net income of $42.6 million, or $0.75 per diluted share, compared to $32.0 million, or $0.57 per diluted share, for the same period in 2014.
 
The homebuilding segments reported pretax earnings of $67.9 million for the second quarter of 2015, compared to $59.9 million for the same period in 2014.  This increase in pretax earnings was primarily due to a rise in revenues and to a reduction in selling, general and administrative expense as a percentage of homebuilding revenues, partially offset by a lower housing gross profit margin.
 
For the second quarter of 2015, homebuilding revenues increased 12.5 percent to $637.0 million from $566.2 million for the same period in 2014.  The rise in homebuilding revenues was attributable to a 6.7 percent increase in closings that totaled 1,814 units for the quarter ended June 30, 2015, compared to 1,700 units for the same period in the prior year, as well as to a 5.4 percent increase in average closing price to $351,000 for the second quarter of 2015 from $333,000 for the same period in 2014.  Homebuilding revenues for the second quarter of 2015 included $645,000 from land sales, which resulted in pretax earnings of $211,000, compared to homebuilding revenues for the second quarter of 2014 that included $756,000 from land sales, which resulted in pretax earnings of $76,000.
 
New orders increased 7.1 percent to 2,387 units for the quarter ended June 30, 2015, from 2,228 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 June 30, 2015, versus 2.5 homes per community for the quarter ended June 30, 2014, and a cancellation rate of 15.4 percent for the quarter ended June 30, 2015, versus 17.6 percent for the same period in 2014.  For the second quarter of 2015, new order dollars rose 6.8 percent to $813.0 million from $761.2 million for the second quarter of 2014.  At June 30, 2015, backlog increased 6.4 percent to 4,116 units from 3,870 units at June 30, 2014.  The dollar value of the Company’s backlog was $1.4 billion at June 30, 2015, reflecting an 8.3 percent rise from $1.3 billion at June 30, 2014.
 
Housing gross profit margin was 20.4 percent for the quarter ended June 30, 2015, compared to 21.2 percent for the quarter ended June 30, 2014.  This decline in housing gross profit margin was primarily driven by the mix of closings within the Company’s markets during the second quarter of 2015, compared to the same period in the prior year, as well as to an increase in land costs.  Sales incentives and price concessions were flat at 6.7 percent of housing revenues for the quarters ended June 30, 2015 and 2014.
 
Selling, general and administrative expense totaled 10.9 percent of homebuilding revenues for the second quarter of 2015, compared to 11.8 percent for the second quarter of 2014.  This decrease was primarily attributable to improved leverage that resulted from increased revenues.






Page 3
RYLAND SECOND-QUARTER RESULTS

For the quarter ended June 30, 2015, the financial services segment reported pretax earnings of $8.8 million, compared to a pretax loss of $1.9 million for the quarter ended June 30, 2014.  This increase in pretax earnings was primarily attributable to higher locked loan and origination volumes during the second quarter of
2015, compared to the same period in 2014, and a decrease in litigation expense related to the Countrywide settlement in the prior year.

RESULTS FOR THE FIRST SIX MONTHS OF 2015
For the six months ended June 30, 2015, the Company reported net income of $69.1 million, or $1.22 per diluted share, compared to $55.6 million, or $0.99 per diluted share, for the same period in 2014.
The homebuilding segments reported pretax earnings of $112.0 million for the first six months of 2015, compared to $106.2 million for the same period in 2014. This increase was primarily due to a rise in revenues and to a reduced selling, general and administrative expense ratio, partially offset by a lower housing gross profit margin.
Homebuilding revenues increased 9.0 percent to $1.1 billion for the first six months of 2015 from $1.0 billion for the same period in 2014. The rise in homebuilding revenues was attributable to a 3.4 percent increase in closings that totaled 3,277 units for the six months ended June 30, 2015, compared to 3,170 units for the same period in the prior year, as well as to a 5.2 percent rise in average closing price to $347,000 for the first six months of 2015 from $330,000 for the same period in 2014. Homebuilding revenues for the first six months of 2015 included $4.1 million from land sales, which resulted in pretax earnings of $928,000, compared to homebuilding revenues for the first six months of 2014 that included $1.6 million from land sales, which resulted in pretax earnings of $233,000.
New orders increased 8.2 percent to 4,776 units for the six months ended June 30, 2015, from 4,414 units for the same period in 2014. The Company had an average monthly sales absorption rate of 2.3 homes per community for the six months ended June 30, 2015, versus 2.5 homes per community for the six months ended June 30, 2014, and a cancellation rate of 15.3 percent for the six months ended June 30, 2015, versus 16.5 percent for the same period in 2014. For the first six months of 2015, new order dollars increased 9.1 percent to $1.6 billion from $1.5 billion for the first six months of 2014.
Housing gross profit margin was 20.1 percent for the six months ended June 30, 2015, compared to 21.2 percent for the six months ended June 30, 2014. This decline in housing gross profit margin was primarily attributable to the mix of closings within the Company's markets during 2015. For the first six months of 2015, sales incentives and price concessions totaled 7.1 percent of housing revenues, compared to 6.6 percent for the same period in 2014.
Selling, general and administrative expense totaled 11.7 percent of homebuilding revenues for the first six months of 2015, compared to 12.4 percent for the first six months of 2014. This decrease was primarily attributable to higher leverage that resulted from increased revenues. 





Page 4
RYLAND SECOND-QUARTER RESULTS

For the six months ended June 30, 2015, the financial services segment reported pretax earnings of $13.9 million, compared to a pretax loss of $3.3 million for the same period in 2014. This increase was primarily attributable to higher locked loan and origination volumes; a decrease in litigation expense; and a reduction in financial services expense that related to a change in the estimate of ultimate insurance loss liability in the prior year.

PROPOSED MERGER WITH STANDARD PACIFIC CORP.
On June 14, 2015, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Standard Pacific. Subject to the terms and conditions of the Merger Agreement, Standard Pacific and the Company have agreed that the Company will merge with and into Standard Pacific in a “merger of equals,” with Standard Pacific continuing as the surviving corporation (the “Surviving Corporation”), and the separate corporate existence of the Company will cease (the "Merger"). Subject to the terms and conditions of the Merger Agreement, which was unanimously approved by the boards of directors of Standard Pacific and the Company, if the Merger is completed, each five shares of common stock issued and outstanding of Standard Pacific will be combined and converted into one issued and outstanding share of common stock of the Surviving Corporation and each share of common stock of the Company issued and outstanding will be converted and exchangeable for 1.0191 issued and outstanding shares of common stock of the Surviving Corporation. The proposed merger is subject to approval by the shareholders of the Company and Standard Pacific and other customary closing conditions. The Company currently expects the transaction to close in early Fall 2015. During the second quarter of 2015, the Company incurred transaction related fees totaling $3.6 million, which was reported in "Other (expense) income" within the Consolidated Statements of Earnings.








Page 5
RYLAND SECOND-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 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:

•
risk relating to the Company's pending merger with Standard Pacific, including uncertainties as to the timing of the merger, the possibility that various closing conditions for the transaction may not be satisfied or waived, and Standard Pacific’s and the Company’s business may suffer as a result of the uncertainty surrounding the transaction;
•
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 any subsequent Quarterly Report on Form 10-Q; and
•
other factors over which the Company has little or no control.





Page 6
RYLAND SECOND-QUARTER RESULTS

NO OFFER OR SOLICITATION
The information in this communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933,
as amended, and otherwise in accordance with applicable law.

IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed merger, Standard Pacific has filed with the SEC a registration statement on Form S-4 on July 2, 2015, that includes a preliminary joint proxy statement of Standard Pacific and Ryland that also constitutes a preliminary prospectus of the Surviving Corporation. The registration statement is not complete and will be further amended. Ryland and Standard Pacific will make the definitive joint proxy statement/prospectus available to their respective stockholders. Investors are urged to read the definitive joint proxy statement/prospectus when it becomes available, because it will contain important information. The registration statement, joint proxy statement/prospectus and other documents filed by Ryland and Standard Pacific with the SEC are available free of charge at the SEC’s website (www.sec.gov) and from Ryland and Standard Pacific. In addition, security holders are able to obtain free copies of the registration statement and the joint proxy statement/prospectus from Ryland by going to its investor relations page of its corporate website at http://www.ryland.com and from Standard Pacific on its investor relations page of its corporate website at http://standardpacifichomes.com.

PARTICIPANTS IN THE SOLICITATION
Ryland, Standard Pacific, their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from Ryland’s and Standard Pacific’s stockholders in connection with the proposed transaction. Information about the directors and executive officers of Ryland and their ownership of Ryland stock is set forth in Ryland’s annual report on form 10-K for the fiscal year ended December 31, 2014, which was filed with the SEC on February 25, 2015, and its proxy statement for its 2015 annual meeting of stockholders, which was filed with the SEC on March 13, 2015. Information regarding Standard Pacific’s directors and executive officers is contained in Standard Pacific’s report on Form 10-K for the fiscal year ended December 31, 2014, which was filed with the SEC on February 23, 2015, and its proxy statement for its 2015 annual general meeting of stockholders, which was filed with the SEC on April 24, 2015. These documents can be obtained free of charge from the sources indicated above. Certain directors, executive officers and employees of Ryland and Standard Pacific may have direct or indirect interests in the transaction due to securities holdings, vesting of equity awards and rights to severance payments. Additional information regarding the participants in the solicitation of Ryland and Standard Pacific stockholders is included in the joint proxy statement/prospectus.

### 
Four financial-statement pages to follow.






THE RYLAND GROUP, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(in thousands, except share data)
 
 
 
Three Months Ended
June 30,
 
Six Months Ended 
 June 30,
 
 
2015
 
2014
 
2015
 
2014
REVENUES
 
 

 
 

 
 

 
 

Homebuilding
 
$
637,046

 
$
566,244

 
$
1,142,045

 
$
1,047,729

Financial services
 
16,589

 
11,145

 
28,989

 
19,343

TOTAL REVENUES
 
653,635

 
577,389

 
1,171,034

 
1,067,072

EXPENSES
 
 

 
 

 
 

 
 

Cost of sales
 
507,036

 
446,191

 
912,327

 
826,190

Selling, general and administrative
 
69,278

 
67,020

 
133,448

 
129,814

Financial services
 
7,895

 
13,079

 
15,229

 
22,688

TOTAL EXPENSES
 
584,209

 
526,290

 
1,061,004

 
978,692

OTHER (EXPENSE) INCOME
 
 

 
 

 
 

 
 

Gain from marketable securities, net
 
173

 
429

 
318

 
833

Other (expense) income
 
(3,055
)
 
675

 
(2,463
)
 
1,160

TOTAL OTHER (EXPENSE) INCOME
 
(2,882
)
 
1,104

 
(2,145
)
 
1,993

Income before taxes
 
66,544

 
52,203

 
107,885

 
90,373

Tax expense
 
23,942

 
20,161

 
38,826

 
34,804

NET INCOME
 
$
42,602

 
$
32,042

 
$
69,059

 
$
55,569

NET INCOME PER COMMON SHARE
 
 

 
 

 
 

 
 

Basic
 
$
0.91

 
$
0.68

 
$
1.48

 
$
1.19

Diluted
 
$
0.75

 
$
0.57

 
$
1.22

 
$
0.99

AVERAGE COMMON SHARES
OUTSTANDING
 
 

 
 

 
 

 
 

Basic
 
46,706,437

 
46,914,902

 
46,579,660

 
46,747,403

Diluted
 
58,273,600

 
58,430,828

 
58,174,063

 
58,312,226




THE RYLAND GROUP, INC. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
 
 
June 30, 2015
 
December 31, 2014
 
 
(Unaudited)
 
 

ASSETS
 
 

 
 

Cash, cash equivalents and marketable securities
 
 

 
 

Cash and cash equivalents
 
$
279,980

 
$
521,195

Restricted cash
 
18,277

 
35,720

Marketable securities, available-for-sale
 
17,791

 
17,845

Total cash, cash equivalents and marketable securities
 
316,048

 
574,760

Housing inventories
 
 

 
 

Homes under construction
 
905,513

 
764,853

Land under development and improved lots
 
1,341,584

 
1,250,159

Consolidated inventory not owned
 
29,720

 
30,811

Total housing inventories
 
2,276,817

 
2,045,823

Property, plant and equipment
 
35,814

 
30,566

Mortgage loans held-for-sale
 
129,790

 
153,366

Net deferred taxes
 
84,448

 
91,766

Other
 
178,829

 
155,808

TOTAL ASSETS
 
3,021,746

 
3,052,089

LIABILITIES
 
 

 
 

Accounts payable
 
212,127

 
205,397

Accrued and other liabilities
 
210,015

 
215,221

Financial services credit facilities
 
122,607

 
129,389

Debt
 
1,295,953

 
1,403,079

TOTAL LIABILITIES
 
1,840,702

 
1,953,086

EQUITY
 
 

 
 

STOCKHOLDERS’ EQUITY
 
 

 
 

Preferred stock, $1.00 par value:
 
 

 
 

Authorized—10,000 shares Series A Junior
Participating Preferred, none outstanding
 
—

 
—

Common stock, $1.00 par value:
 
 

 
 

Authorized—199,990,000 shares
Issued—46,849,340 shares at June 30, 2015
(46,296,045 shares at December 31, 2014)
 
46,849

 
46,296

Retained earnings
 
1,121,462

 
1,039,076

Accumulated other comprehensive loss
 
(896
)
 
(799
)
TOTAL STOCKHOLDERS’ EQUITY
FOR THE RYLAND GROUP, INC.
 
1,167,415

 
1,084,573

NONCONTROLLING INTEREST
 
13,629

 
14,430

TOTAL EQUITY
 
1,181,044

 
1,099,003

TOTAL LIABILITIES AND EQUITY
 
$
3,021,746

 
$
3,052,089




THE RYLAND GROUP, INC. and Subsidiaries
SEGMENT INFORMATION (Unaudited)
 
 
Three Months Ended
June 30,
 
Six Months Ended 
 June 30,
 
 
2015
 
2014
 
2015
 
2014
EARNINGS (LOSS) BEFORE TAXES (in thousands)
 
 

 
 

 
 
 
 
Homebuilding
 
 

 
 

 
 
 
 
North
 
$
17,755

 
$
14,954

 
$
29,294

 
$
25,748

Southeast
 
19,856

 
17,263

 
32,499

 
32,120

Texas
 
8,791

 
9,576

 
15,520

 
17,423

West
 
21,454

 
18,145

 
34,641

 
30,873

Financial services
 
8,777

 
(1,909
)
 
13,899

 
(3,320
)
Corporate and unallocated
 
(10,089
)
 
(5,826
)
 
(17,968
)
 
(12,471
)
Total
 
$
66,544

 
$
52,203

 
$
107,885

 
$
90,373

NEW ORDERS
 
 

 
 

 
 

 
 

Units
 
 

 
 

 
 

 
 

North
 
645

 
657

 
1,352

 
1,267

Southeast
 
681

 
670

 
1,371

 
1,305

Texas
 
467

 
453

 
942

 
960

West
 
594

 
448

 
1,111

 
882

Total
 
2,387

 
2,228

 
4,776

 
4,414

Dollars (in millions)
 
 

 
 

 
 

 
 

North
 
$
206

 
$
208

 
$
432

 
$
399

Southeast
 
215

 
218

 
431

 
410

Texas
 
166

 
152

 
326

 
317

West
 
226

 
183

 
438

 
365

Total
 
$
813

 
$
761

 
$
1,627

 
$
1,491

CLOSINGS
 
 

 
 

 
 

 
 

Units
 
 

 
 

 
 

 
 

North
 
553

 
473

 
975

 
897

Southeast
 
522

 
487

 
949

 
933

Texas
 
358

 
389

 
692

 
740

West
 
381

 
351

 
661

 
600

Total
 
1,814

 
1,700

 
3,277

 
3,170

Average closing price (in thousands)
 
 

 
 

 
 

 
 

North
 
$
322

 
$
325

 
$
321

 
$
320

Southeast
 
318

 
288

 
319

 
286

Texas
 
356

 
322

 
347

 
319

West
 
433

 
417

 
427

 
427

Total
 
$
351

 
$
333

 
$
347

 
$
330

OUTSTANDING CONTRACTS
 
 
 
 
 
June 30,
Units
 
 
 
 
 
2015
 
2014
North
 
 
 
 
 
1,174

 
1,202

Southeast
 
 
 
 
 
1,205

 
1,174

Texas
 
 
 
 
 
802

 
834

West
 
 
 
 
 
935

 
660

Total
 
 
 
 
 
4,116

 
3,870

Dollars (in millions)
 
 
 
 
 
 

 
 

North
 
 
 
 
 
$
375

 
$
378

Southeast
 
 
 
 
 
393

 
376

Texas
 
 
 
 
 
280

 
279

West
 
 
 
 
 
359

 
266

Total
 
 
 
 
 
$
1,407

 
$
1,299

Average price (in thousands)
 
 
 
 
 
 

 
 

North
 
 
 
 
 
$
320

 
$
315

Southeast
 
 
 
 
 
326

 
320

Texas
 
 
 
 
 
349

 
335

West
 
 
 
 
 
384

 
403

Total
 
 
 
 
 
$
342

 
$
336




THE RYLAND GROUP, INC. and Subsidiaries
SUPPLEMENTAL INFORMATION (Unaudited)
 
FINANCIAL SERVICES SUPPLEMENTAL INFORMATION
 
 

 
 

 
 
 
 
(in thousands, except origination data)
 
Three Months Ended
June 30,
 
Six Months Ended 
 June 30,
 
 
2015
 
2014
 
2015
 
2014
RESULTS OF OPERATIONS
 
 

 
 

 
 
 
 
REVENUES
 
 

 
 

 
 
 
 
Income from origination and sale of mortgage loans, net
 
$
13,445

 
$
8,475

 
$
23,219

 
$
14,115

Title, escrow and insurance
 
2,618

 
2,235

 
4,733

 
4,132

Interest and other
 
526

 
435

 
1,037

 
1,096

TOTAL REVENUES
 
16,589

 
11,145

 
28,989

 
19,343

EXPENSES
 
7,895

 
13,079

 
15,229

 
22,688

OTHER INCOME
 
83

 
25

 
139

 
25

PRETAX EARNINGS (LOSS)
 
$
8,777

 
$
(1,909
)
 
$
13,899

 
$
(3,320
)
OPERATIONAL DATA
 
 

 
 

 
 

 
 

Retail operations:
 
 

 
 

 
 

 
 

Originations (units)
 
1,053

 
835

 
1,867

 
1,539

Ryland Homes originations as a
     percentage of total originations
 
99.9
%
 
99.9
%
 
99.8
%
 
99.9
%
Ryland Homes origination capture rate
 
65.4
%
 
60.4
%
 
64.2
%
 
60.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CONSOLIDATED SUPPLEMENTAL INFORMATION
 
 

 
 

 
 

 
 

 
 
Three Months Ended
June 30,
 
Six Months Ended 
 June 30,
(in thousands)
 
2015
 
2014
 
2015
 
2014
Interest incurred
 
$
16,085

 
$
17,435

 
$
32,578

 
$
34,818

Interest capitalized during the period
 
15,777

 
17,172

 
31,840

 
34,283

Amortization of capitalized interest included in cost of sales
 
12,243

 
11,776

 
22,036

 
22,246

Depreciation and amortization
 
5,695

 
5,413

 
10,497

 
10,131