8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 25, 2016

WILLIAM LYON HOMES

(Exact name of registrant as specified in charter)

Delaware	001-31625	33-0864902
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4695 MacArthur Court, 8^th Floor

Newport Beach, California 92660

(Address of principal executive offices and zip code)

(949) 833-3600

(Registrant’s telephone number, including area code)

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 communications 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 Conditions.

On February 25, 2016, William Lyon Homes (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2015. A copy of the press release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including the accompanying Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, except as specifically incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 7.01. Regulation FD Disclosure.

Senior management of the Company will reference the materials included in Exhibit 99.2 to this report (the “Earnings Presentation”) during an earnings conference call to be held at 10:00 a.m. Pacific Time on February 25, 2016. A copy of the Earnings Presentation is furnished as Exhibit 99.2 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01, including the Earnings Presentation attached to this report as Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company. In addition, the Earnings Presentation furnished as an exhibit to this report may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished herewith:

99.1 Press Release issued on February 25, 2016 announcing financial results for the three and twelve months ended December 31, 2015.

99.2 Earnings Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WILLIAM LYON HOMES
Dated: February 25, 2016	By:	/S/ COLIN T. SEVERN
		Colin T. Severn
		Senior Vice President
		Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release issued on February 25, 2016 announcing financial results for the three and twelve months ended December 31, 2015.
99.2	Earnings Presentation.

EX-99.1

Exhibit 99.1

WILLIAM LYON HOMES REPORTS FOURTH QUARTER AND FULL YEAR 2015 RESULTS

46% INCREASE IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS; 35% INCREASE IN

COMMUNITY COUNT; AND 13% INCREASE IN HOMEBUILDING REVENUE FOR THE QUARTER

NEWPORT BEACH, CA — February 25, 2016 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for the fourth quarter and year ended December 31, 2015.

2015 Fourth Quarter Highlights (Comparison to 2014 Fourth Quarter)

• Net income available to common stockholders of $26.3 million, or $0.68 per diluted share, up 46%

• Home sales revenue of $397.2 million, up 13%

• Consolidated revenue of $403.0 million, up 12%

• New home deliveries of 809 homes, up 13%

• Average sales locations of 74, up 35%

• Units in backlog of 739, up 55%

• Dollar value of homes in backlog of $391.8 million, up 51%

• Net new home orders of 516, up 10%

• Dollar value of orders of $243.8 million, up 12%

• Homebuilding gross margin of $72.8 million, up 9%

• Average sales price (ASP) of new homes delivered of $490,900

• Homebuilding gross margin percentage of 18.3%

• Adjusted homebuilding gross margin percentage of 24.2%

• SG&A percentage of 9.3%, compared to 10.4%

• Operating Income of $36.0 million, up 18%

• Adjusted EBITDA of $61.9 million, up 27%

2015 Full Year Highlights (Comparison to 2014 Full Year)

• Net income available to common stockholders of $57.3 million, or $1.48 per diluted share, up 28%

• Home sales revenue of $1,078.9 million, up 26%

• Consolidated revenue of $1,106.6 million, up 23%

• New home deliveries of 2,314 homes, up 32%

• Net new home orders of 2,575, up 54%

• Dollar value of orders of $1.2 billion, up 46%

• Average sales locations of 68, up 55%

• Homebuilding gross margin of $199.9 million, up 11%

• Average sales price (ASP) of new homes delivered of $466,300

• Homebuilding gross margin percentage of 18.5%

• Adjusted homebuilding gross margin percentage of 24.8%

• SG&A percentage of 11.2%, compared to 11.7%

• Income before provision for income taxes of $87.1 million, up 11%

• Adjusted EBITDA of $158.5 million, up 29%

“Our 2015 fourth quarter results continued to demonstrate consistent year-over-year improvement in key operating metrics, including deliveries, net new home orders, the dollar value of orders, community count, and both units and dollar value of backlog,” said William H. Lyon, Co-Chief Executive Officer. Mr. Lyon added, “Home sales revenue and deliveries each increased by 13% to $397.2 million and 809 units, respectively, both the highest since 2006, and we generated $26.3 million of net income, or $0.68 per diluted share, a 46% increase.”

Matthew R. Zaist, Co-Chief Executive Officer and President, stated, “2015 was a year of significant growth for William Lyon Homes, and we are encouraged by the start to 2016 with net new home orders in January up 21% year-over-year and up 33% sequentially from December. While the industry has experienced certain challenges such as labor constraints, cycle time increases and volatility in the global and U.S. financial markets, we continue to see strong housing fundamentals in our core markets. We will continue to focus on execution of our strategic initiatives for this year, which include maximizing revenue from our existing communities, maintaining disciplined cost controls at our projects and at the corporate level, utilizing free cash flow to reduce overall leverage and growing our community count from our significant land position.”

Operating Results

Home sales revenue for the fourth quarter of 2015 was $397.2 million, as compared to $352.5 million in the year-ago period, an increase of 13%. The increase was driven by a 13% increase in deliveries to 809 homes, compared to 717 in the fourth quarter of 2014, as the average sales price of homes delivered was $490,900, consistent with prior year. ASPs were relatively consistent due to shifts in product mix, with more homes delivered in Arizona and Oregon.

The dollar value of orders for the fourth quarter of 2015 was $243.8 million, an increase of 12%, from $216.8 million in the year-ago period. Net new home orders for the quarter were 516, up 10% from the fourth quarter of 2014. The increase in net new home orders was driven by a 35% increase in community count to 74 average sales locations, from 55 in the year-ago period, offset by a year-over-year decline in the average monthly absorption rate to 2.3 sales per community, from 2.8 in the fourth quarter of 2014.

The dollar value of homes in backlog was $391.8 million as of December 31, 2015, an increase of 51% compared to $260.1 million as of December 31, 2014. The increase was driven by a 55% increase in units in backlog to 739 from 478 in the year-ago period. In addition, our ASP in backlog as of December 31, 2015 was 8% higher than the ASP of homes closed in the fourth quarter.

Adjusted homebuilding gross margin percentage was 24.2% during the fourth quarter of 2015. Homebuilding gross margin percentage for the quarter was 18.3%. SG&A expense during the fourth quarter of 2015 was 9.3% of homebuilding revenue, an improvement of 110 basis points from 10.4% in the fourth quarter of 2014. Breaking down the components of SG&A, sales and marketing expense was 4.8% of homebuilding revenue during the quarter, compared to 5.1% in the year-ago quarter. General and administrative expenses decreased to 4.5% of homebuilding revenue, compared to 5.3% in the year-ago quarter, as we continued to benefit from a larger operating platform with a lower relative cost structure.

Balance Sheet Update

At year end, cash, cash equivalents and restricted cash totaled $50.7 million, real estate inventories totaled $1.7 billion, total assets were $1.9 billion and total equity was $671.5 million. Net debt to net book capitalization was 61.1%, and total debt to total book capitalization was 62.2% at December 31, 2015, compared to 63.6% and 64.2%, respectively, as of September 30, 3015.

Conference Call

The Company will host a conference call to discuss these results today, Thursday, February 25, 2016 at 10:00 a.m. Pacific Time. The call will be available via both the telephone at (855) 851-4524 or (720) 634-2900, passcode #42334171, or through the Company’s website at www.lyonhomes.com in the Investor Relations section of the site.

A replay of the call will be available through March 3, 2016 by dialing (855) 859-2056 or (404) 537-3406, passcode #42334171. A webcast replay of the call will also be available on the Company’s website approximately two hours after the broadcast.

About William Lyon Homes

William Lyon Homes is one of the largest Western U.S. regional homebuilders. Headquartered in Newport Beach, California, the Company is primarily engaged in the design, construction, marketing and sale of single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington and Oregon. Its core markets include Orange County, Los Angeles, the Inland Empire, the San Francisco Bay Area, Phoenix, Las Vegas, Denver, Seattle and Portland. The Company has a distinguished legacy of more than 59 years of homebuilding operations, over which time it has sold in excess of 96,000 homes. The Company markets and sells its homes under the William Lyon Homes brand in all of its markets except for Colorado, where the Company operates under the Village Homes brand, and Washington and Oregon, where the Company operates under the Polygon Northwest brand.

Forward-Looking Statements

Information presented herein for the fourth quarter and year ended December 31, 2015 is subject to finalization of the Company’s regulatory filings, related financial and accounting reporting procedures and external auditor procedures.

Certain statements contained in this release and the accompanying comments during our conference call that are not historical information may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995,

including, but not limited to, forward-looking statements related to: community count growth, market and industry trends, the continued housing market recovery, operating results for the first quarter of 2016 and full year 2016, average sale price of homes to be closed in various periods, SG&A percentage, gross margins, future cash needs and liquidity, leverage ratios and reduction strategies, land acquisition spending and backlog conversion rates. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied. The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. Factors that may impact such forward-looking statements include, among others: the availability of labor and homebuilding materials and increased construction cycle times; adverse weather conditions, including but not limited to the continued drought in California and the Southwest; our financial leverage and level of indebtedness and any inability to comply with financial and other covenants under our debt instruments; continued volatility and worsening in general economic conditions either internationally, nationally or in regions in which we operate; conditions in our newly entered markets and newly acquired operations; worsening in markets for residential housing; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals, and the applicability and sufficiency of our insurance coverage; decline in real estate values resulting in impairment of our real estate assets; volatility in the banking industry and credit markets; uncertainties in the capital and securities markets; terrorism or other hostilities involving the United States; building moratorium or “slow-growth” or “no-growth” initiatives that could be implemented in states in which we operate; changes in mortgage and other interest rates; conditions in the capital, credit and financial markets, including mortgage lending standards and the availability of mortgage financing; changes in generally accepted accounting principles or interpretations of those principles; changes in prices of homebuilding materials; competition for home sales from other sellers of new and resale homes; cancellations and our ability to realize our backlog; the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements; changes in governmental laws and regulations; whether we are able to pay off or refinance the outstanding balances of our debt obligations at their maturity; limitations on our ability to utilize our tax attributes; whether an ownership change occurred that could, under certain circumstances, have resulted in the limitation of our ability to offset prior years’ taxable income with net operating losses; the timing of receipt of regulatory approvals and the opening of projects; the availability and cost of land for future development; our ability to integrate successfully the Polygon Northwest operation with our existing operations; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.

Investor/Media Contacts:

Larry Clark

Financial Profiles, Inc.

(310) 622-8223

WLH@finprofiles.com

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except number of shares and per share data)

(unaudited)

	Three Months Ended December 31, 2015			Three Months Ended December 31, 2014
Operating revenue
Home sales	$	397,162		$	352,479
Construction services		5,820			7,542
		402,982			360,021
Operating costs
Cost of sales — homes		(324,338	)		(285,448	)
Construction services		(5,108	)		(5,965	)
Sales and marketing		(19,059	)		(17,945	)
General and administrative		(17,817	)		(18,745	)
Transaction expenses		—			(64	)
Amortization of intangible assets		(248	)		(520	)
Other		(422	)		(983	)
		(366,992	)		(329,670	)
Operating income		35,990			30,351
Equity in income of unconsolidated joint ventures		1,458			409
Other income, net		706			1,068
Income before provision for income taxes		38,154			31,828
Provision for income taxes		(11,026	)		(11,018	)
Net income		27,128			20,810
Less: Net income attributable to noncontrolling interests		(833	)		(2,805	)
Net income available to common stockholders	$	26,295		$	18,005
Income per common share:
Basic	$	0.72		$	0.54
Diluted	$	0.68		$	0.52
Weighted average common shares outstanding:
Basic		36,580,867			33,439,411
Diluted		38,546,342			34,851,823

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except number of shares and per share data)

	Year Ended December 31, 2015			Year Ended December 31, 2014
Operating revenue
Home sales	$	1,078,928		$	857,025
Lots, land and other sales		2,500			1,926
Construction services		25,124			37,728
		1,106,552			896,679
Operating costs
Cost of sales — homes		(878,995	)		(677,531	)
Cost of sales — lots, land and other		(1,729	)		(1,529	)
Construction services		(21,181	)		(30,700	)
Sales and marketing		(61,539	)		(45,903	)
General and administrative		(59,161	)		(54,626	)
Transaction expenses		—			(5,832	)
Amortization of intangible assets		(958	)		(1,814	)
Other		(1,971	)		(2,874	)
		(1,025,534	)		(820,809	)
Operating income		81,018			75,870
Equity in income of unconsolidated joint ventures		3,239			555
Other income, net		2,810			1,898
Income before provision for income taxes		87,067			78,323
Provision for income taxes		(26,806	)		(23,797	)
Net income		60,261			54,526
Less: Net income attributable to noncontrolling interests		(2,925	)		(9,901	)
Net income available to common stockholders	$	57,336		$	44,625
Income per common share:
Basic	$	1.57		$	1.41
Diluted	$	1.48		$	1.34
Weighted average common shares outstanding:
Basic		36,546,227			31,753,110
Diluted		38,767,556			33,236,343

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

(in thousands, except number of shares and par value per share)

	December 31, 2015		December 31, 2014
	(unaudited)
ASSETS
Cash and cash equivalents	$	50,203	$	52,771
Restricted cash		504		504
Receivables		14,838		21,250
Escrow proceeds receivable		3,041		2,915
Real estate inventories		1,675,106		1,404,639
Investment in unconsolidated joint ventures		5,413		2,500
Goodwill		66,902		60,887
Intangibles, net of accumulated amortization of $4,640 and $3,683 as of December 31, 2015 and December 31, 2014, respectively		6,700		7,657
Deferred income taxes, net, including valuation allowance of $0 and $1,626 at December 31, 2015 and December 31, 2014, respectively		79,726		88,039
Other assets, net		21,017		18,562
Total assets	$	1,923,450	$	1,659,724
LIABILITIES AND EQUITY
Accounts payable	$	75,881	$	51,814
Accrued expenses		70,324		85,366
Notes payable		175,181		39,235
Subordinated amortizing note		14,066		20,717
5 3⁄4% Senior Notes due April 15, 2019		148,295		147,766
8 1⁄2% Senior Notes due November 15, 2020		422,896		422,889
7% Senior Notes due August 15, 2022		345,338		294,791
		1,251,981		1,062,578
Commitments and contingencies
Equity:
William Lyon Homes stockholders’ equity
Preferred stock, par value $0.01 per share; 10,000,000 and no shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively		—		—
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,363,879 and 28,073,438 shares issued, 27,657,435 and 27,487,257 outstanding at December 31, 2015 and December 31, 2014, respectively		284		281
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively		38		38
Additional paid-in capital		413,810		408,969
Retained earnings		217,963		160,627
Total William Lyon Homes stockholders’ equity		632,095		569,915
Noncontrolling interests		39,374		27,231
Total equity		671,469		597,146
Total liabilities and equity	$	1,923,450	$	1,659,724

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Three Months Ended December 31,
	2015			2014
	Consolidated Total			Consolidated Total			Percentage % Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		809			717			13	%
Home sales revenue	$	397,162		$	352,479			13	%
Cost of sales (excluding interest and purchase accounting adjustments)		(301,194	)		(269,543	)		12	%
Adjusted homebuilding gross margin (2)	$	95,968		$	82,936			16	%
Adjusted homebuilding gross margin percentage (2)		24.2	%		23.5	%		3	%
Interest in cost of sales		(14,666	)		(10,014	)		46	%
Purchase accounting adjustments		(8,478	)		(5,891	)		44	%
Gross margin	$	72,824		$	67,031			9	%
Gross margin percentage		18.3	%		19.0	%		(4	%)
Number of homes closed
California		225			287			(22	%)
Arizona		120			50			140	%
Nevada		73			73			0	%
Colorado		80			46			74	%
Washington		133			111			20	%
Oregon		178			150			19	%
Total		809			717			13	%
Average sales price of homes closed
California	$	693,300		$	604,900			15	%
Arizona		256,100			254,700			1	%
Nevada		560,400			681,300			(18	%)
Colorado		469,500			500,400			(6	%)
Washington		427,700			413,400			3	%
Oregon		421,800			316,700			33	%
Total	$	490,900		$	491,600			(0	%)
Number of net new home orders
California		122			155			(21	%)
Arizona		91			41			122	%
Nevada		79			37			114	%
Colorado		24			40			(40	%)
Washington		87			92			(5	%)
Oregon		113			102			11	%
Total		516			467			10	%
Average number of sales locations during period
California		19			19			0	%
Arizona		8			5			60	%
Nevada		13			9			44	%
Colorado		12			12			0	%
Washington		6			5			20	%
Oregon		16			5			220	%
Total		74			55			35	%

(1) For the periods presented, the Company is reporting in six segments: California, Arizona, Nevada, Colorado, Washington and Oregon.

(2) Adjusted homebuilding gross margin is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP. It is used by management in evaluating operating performance and in making strategic decisions regarding sales pricing, construction and development pace, product mix and other operating decisions. We believe this information is meaningful as it isolates the impact that interest and purchase accounting adjustments have on homebuilding gross margin and allows investors to make better comparisons with our competitors.

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Year Ended December 31,
	2015			2014
	Consolidated Total			Consolidated Total			Percentage % Change
Selected Financial Information (1) (dollars in thousands)
Homes closed		2,314			1,753			32	%
Home sales revenue	$	1,078,928		$	857,025			26	%
Cost of sales (excluding interest and purchase accounting adjustments)		(811,660	)		(641,042	)		27	%
Adjusted homebuilding gross margin (2)	$	267,268		$	215,983			24	%
Adjusted homebuilding gross margin percentage (2)		24.8	%		25.2	%		(2	%)
Interest in cost of sales		(38,416	)		(26,510	)		45	%
Purchase accounting adjustments		(28,919	)		(9,979	)		190	%
Gross margin	$	199,933		$	179,494			11	%
Gross margin percentage		18.5	%		20.9	%		(12	%)
Number of homes closed
California		633			840			(25	%)
Arizona		252			217			16	%
Nevada		230			236			(3	%)
Colorado		230			95			142	%
Washington		434			154			182	%
Oregon		535			211			154	%
Total		2,314			1,753			32	%
Average sales price of homes closed
California	$	599,200		$	594,000			1	%
Arizona		265,900			264,900			0	%
Nevada		568,900			516,200			10	%
Colorado		465,300			489,100			(5	%)
Washington		417,600			427,800			(2	%)
Oregon		399,000			314,800			27	%
Total	$	466,300		$	488,900			(5	%)
Number of net new home orders
California		669			792			(16	%)
Arizona		414			201			106	%
Nevada		272			237			15	%
Colorado		224			152			47	%
Washington		416			134			210	%
Oregon		580			161			260	%
Total		2,575			1,677			54	%
Average number of sales locations during period
California		18			17			6	%
Arizona		7			6			17	%
Nevada		11			9			22	%
Colorado		13			8			63	%
Washington		6			2			200	%
Oregon		13			2			550	%
Total		68			44			55	%

(1) For the periods presented, the Company is reporting in six segments: California, Arizona, Nevada, Colorado, Washington and Oregon.

(2) Adjusted homebuilding gross margin is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP. It is used by management in evaluating operating performance and in making strategic decisions regarding sales pricing, construction and development pace, product mix and other operating decisions. We believe this information is meaningful as it isolates the impact that interest and purchase accounting adjustments have on homebuilding gross margin and allows investors to make better comparisons with our competitors.

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	As of December 31,
	2015		2014
	Consolidated Total		Consolidated Total		Percentage % Change
Backlog of homes sold but not closed at end of period
California		194		158		23	%
Arizona		209		47		345	%
Nevada		115		73		58	%
Colorado		78		84		(7	%)
Washington		44		62		(29	%)
Oregon		99		54		83	%
Total		739		478		55	%
Dollar amount of homes sold but not closed at end of period (in thousands)
California	$	152,673	$	93,912		63	%
Arizona		53,527		13,408		299	%
Nevada		77,151		62,847		23	%
Colorado		40,952		37,935		8	%
Washington		24,414		34,309		(29	%)
Oregon		43,053		17,716		143	%
Total	$	391,770	$	260,127		51	%
Lots owned and controlled at end of period
Lots owned
California		2,200		2,140		3	%
Arizona		5,204		5,421		(4	%)
Nevada		2,888		2,941		(2	%)
Colorado		798		979		(18	%)
Washington		1,144		1,427		(20	%)
Oregon		1,245		1,195		4	%
Total		13,479		14,103		(4	%)
Lots controlled
California		601		1,538		(61	%)
Arizona		—		—		0	%
Nevada		554		156		255	%
Colorado		134		183		(27	%)
Washington		871		728		20	%
Oregon		1,775		834		113	%
Total		3,935		3,439		14	%
Total lots owned and controlled
California		2,801		3,678		(24	%)
Arizona		5,204		5,421		(4	%)
Nevada		3,442		3,097		11	%
Colorado		932		1,162		(20	%)
Washington		2,015		2,155		(6	%)
Oregon		3,020		2,029		49	%
Total		17,414		17,542		(1	%)

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)

	Three Months Ended December 31, 2015			Three Months Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
Net income attributable to William Lyon Homes	$	26,295		$	18,005		$	57,336		$	44,625
Net cash (used in) provided by operating activities	$	47,446		$	21,237		$	(172,908	)	$	(159,807	)
Interest incurred	$	20,307		$	26,741		$	76,222		$	65,559
Adjusted EBITDA (1)	$	61,854		$	48,933		$	158,546		$	122,696
Adjusted EBITDA Margin (2)		15.3	%		13.6	%		14.3	%		13.7	%
Ratio of adjusted EBITDA to interest incurred		3.0			1.8			2.1			1.9

Balance Sheet Data

	December 31, 2015			December 31, 2014
Cash, cash equivalents and restricted cash	$	50,707		$	53,275
Total William Lyon Homes stockholders’ equity		632,095			569,915
Noncontrolling interest		39,374			27,231
Total debt		1,105,776			925,398
Total book capitalization	$	1,777,245		$	1,522,544
Ratio of debt to total book capitalization		62.2	%		60.8	%
Ratio of debt to total book capitalization (net of cash)		61.1	%		59.4	%

(1) Adjusted EBITDA means net income (loss) attributable to William Lyon Homes plus (i) provision for income taxes, (ii) interest expense, (iii) amortization of capitalized interest included in cost of sales, (iv) stock based compensation, (v) depreciation and amortization, (vi) non-cash purchase accounting adjustments, (vii) cash distributions of income from unconsolidated joint ventures, and (viii) equity in income of unconsolidated joint ventures. Other companies may calculate adjusted EBITDA differently. Adjusted EBITDA is not a financial measure prepared in accordance with U.S. GAAP. Adjusted EBITDA is presented herein because management believes the presentation of adjusted EBITDA provides useful information to the Company’s investors regarding the Company’s financial condition and results of operations because adjusted EBITDA is a widely utilized indicator of a company’s operating performance. Adjusted EBITDA should not be considered as an alternative for net (loss) income, cash flows from operating activities and other consolidated income or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. A reconciliation of net income attributable to William Lyon Homes to adjusted EBITDA is provided in the following table:

(2) Calculated as Adjusted EBITDA as a percentage of operating revenue.

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)

	Three Months Ended December 31, 2015			Three Months Ended December 31, 2014			Year Ended December 31, 2015			Year Ended December 31, 2014
Net income attributable to
William Lyon Homes	$	26,295		$	18,005		$	57,336		$	44,625
Provision for income taxes		11,026			11,018			26,806			23,797
Interest expense
Interest incurred		20,307			26,741			76,222			65,559
Interest capitalized		(20,307	)		(26,741	)		(76,222	)		(65,559	)
Amortization of capitalized interest included in cost of sales		14,666			10,014			38,416			26,510
Stock based compensation		1,742			3,342			6,570			6,114
Depreciation and amortization		727			801			2,663			6,041
Transaction expenses		—			64			—			5,832
Non-cash purchase accounting adjustments		8,478			5,891			28,919			9,979
Cash distributions of income from unconsolidated joint ventures		378			207			1,075			353
Equity in income of unconsolidated joint ventures		(1,458	)		(409	)		(3,239	)		(555	)
Adjusted EBITDA	$	61,854		$	48,933		$	158,546		$	122,696

EX-99.2

2015 Q4 and Year-End Earnings Call February 25, 2016, 10:00 am PT Exhibit 99.2

Forward Looking Statements Certain statements contained in the Company’s press release for the three and twelve months ended December 31, 2015 and the accompanying comments during our conference call that are not historical information may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including, but not limited to, forward-looking statements related to: community count growth, market and industry trends, the continued housing market recovery, operating results for the first quarter of 2016 and full year 2016, average sale price of homes to be closed in various periods, SG&A percentage, gross margins, future cash needs and liquidity, leverage ratios and reduction strategies, land acquisition spending and backlog conversion rates. The forward-looking statements involve risks and uncertainties and actual results may differ materially from those projected or implied. The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. Factors that may impact such forward-looking statements include, among others: the availability of labor and homebuilding materials and increased construction cycle times; adverse weather conditions, including but not limited to the continued drought in California and the Southwest; our financial leverage and level of indebtedness and any inability to comply with financial and other covenants under our debt instruments; continued volatility and worsening in general economic conditions either internationally, nationally or in regions in which we operate; conditions in our newly entered markets and newly acquired operations; worsening in markets for residential housing; the impact of construction defect, product liability and home warranty claims, including the adequacy of self-insurance accruals, and the applicability and sufficiency of our insurance coverage; decline in real estate values resulting in impairment of our real estate assets; volatility in the banking industry and credit markets; uncertainties in the capital and securities markets; terrorism or other hostilities involving the United States; building moratorium or “slow-growth” or “no-growth” initiatives that could be implemented in states in which we operate; changes in mortgage and other interest rates; conditions in the capital, credit and financial markets, including mortgage lending standards and the availability of mortgage financing; changes in generally accepted accounting principles or interpretations of those principles; changes in prices of homebuilding materials; competition for home sales from other sellers of new and resale homes; cancellations and our ability to realize our backlog; the occurrence of events such as landslides, soil subsidence and earthquakes that are uninsurable, not economically insurable or not subject to effective indemnification agreements; changes in governmental laws and regulations; whether we are able to pay off or refinance the outstanding balances of our debt obligations at their maturity; limitations on our ability to utilize our tax attributes; whether an ownership change occurred that could, under certain circumstances, have resulted in the limitation of our ability to offset prior years’ taxable income with net operating losses; the timing of receipt of regulatory approvals and the opening of projects; the availability and cost of land for future development; our ability to integrate successfully the Polygon Northwest operation with our existing operations; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.   A copy of the press release reporting the Company’s financial results for the three and twelve months ended December 31, 2015 is available on the Company's website at www.lyonhomes.com.

Management Presenters William H. Lyon Vice Chairman and Co-Chief Executive Officer Matthew Zaist Co-Chief Executive Officer and President Colin Severn Senior Vice President and Chief Financial Officer

Year over Year Comparisons % y-o-y change: +47% +117% +49% +10% % y-o-y change: +69% +76% +49% +35% % y-o-y change: (14%) +24% 0% (18%) Net New Orders (Units) Order Value ($ In Millions) Average Community Count Monthly Order Absorption Rate/Avg. Community % y-o-y change: +35% +92% +50% +12% 2014 2015 Order ASP ($ In Thousands) $498 $456 $504 $444 $472 $475 $464 $473

2014 2015 % y-o-y change: +36% +48% +24% +13% Year over Year Comparisons (continued) % y-o-y change: +41% +65% +33% +13% Homes Closed Homebuilding Revenue ($ Million) Bps y-o-y change: (320bps) (120bps) +10bps +70bps Bps y-o-y change: (550bps) (450bps) (160bps) (70bps) Adjusted Gross Margin Gross Margin (GAAP)

Backlog Growth – Year over Year Value $260M Homes 478 ASP $544k 12/31/2014 12/31/2015 Value $392M Homes 739 ASP $530k Units 55%ASP (3%)$ Value 51%

Backlog Conversion Rate Backlog Conversion Rate - Quarterly

Summary of Q4 2015 Results William Lyon Homes’ business has continued to improve across a number of financial and operating metrics Net New Home Orders for Q4 are up 10% y-o-y New Home Deliveries of 809 and Home Sales Revenue of $397.2 million for Q4 are both up 13% y-o-y Operating Income in Q4 of $36.0 million, up 18% Net Income in Q4 of $26.3 million, up 46% bps bps Three months ended Twelve months ended 42369 42004 Change 42369 42004 Change Select operating statistics New home orders 516 467 0.10492505353319058 2,575 1,677 0.5354800238521169 New home deliveries 809 717 0.12831241283124128 2,314 1,753 0.32002281802624072 ASP (homes closed, $000s) $490.9 $491.6 -1.4239218877136806E-3 $466.3 $488.9 -4.622622213131513E-2 Summary financial information ($mm) Home sales revenue $397.2 $352.5 0.12680851063829784 $1,078.9000000000001 $857 0.25892648774795812 Homebuilding gross profit $72.8 $67 8.6567164179104442E-2 $199.9 $179.5 0.11364902506963792 Operating income $36 $30.4 0.18421052631578952 $81 $75.900000000000006 6.7193675889327981E-2 Net income to common stockholders $26.3 $18 0.46111111111111114 $57.3 $44.6 0.28475336322869943 Diluted EPS ($) $0.68 $0.52 0.30769230769230776 $1.48 $1.34 0.10447761194029843 Adjusted EBITDA $61.9 $48.9 0.2658486707566462 73.8 $158.5 $122.7 0.29176854115729417 Select margins Gross margin 0.183 0.19 -70.000000000000057 0.185 0.20899999999999999 -,239.99999999999994 Adjusted gross margin 0.24199999999999999 0.23499999999999999 70.000000000000057 0.248 0.252 -40.000000000000036 SG&A margin 9.3% 0.104 -,109.99999999999996 0.112 0.11700000000000001 -50.000000000000043

Monthly Sales Volume Total Net Orders by Month (Units) – Actual vs. Prior Year % y-o-y change: +86% +52% +25% +148% +120% +91% +130% +36% +14% +17% +21% (6%) +21% 2014 2015 2016 Avg. Sales Locations: 31 55 33 52 34 54 36 63 37 69 40 71 41 71 54 73 55 76 55 75 55 74 56 72 55 72 Monthly Absorption Rate: 2.9 3.0 3.7 3.6 5.5 4.3 3.2 4.5 3.4 4.0 3.7 4.0 2.3 3.1 3.1 3.1 2.9 2.4 2.7 2.3 2.8 2.6 2.9 2.1 3.0 2.8 Up 33%

Strong New Order Growth – Dollars Trailing Twelve Months Dollar value of new home orders of $1.2 billion on a TTM basis, an increase of 46% over the TTM period in the prior year and up 98% over a two year period. Q4’15 dollar value of new orders was approximately $244 million, up 12% over the prior year. TTM Dollar Value of Orders ($ Millions) TTM Ending: Up 46% Y-o-Y

Strong New Order Growth – Units Trailing Twelve Months New net orders of 2,575 units for FY2015. Increase of 54% over prior year and 94% over two year period. TTM Orders (Units) TTM Ending: Up 54% Y-o-Y

Consistent Growth and Operating Leverage Over the last years, the Company has generated strong annual revenue growth and consistently lower SG&A as a percentage of homebuilding revenue. Q4’15 SG&A represents 9.3% of the quarterly homebuilding revenue. TTM Total Revenue ($ Millions) TTM Ending: TTM SG&A as a % of Homebuilding Revenue Note 1: SG&A in Q4’15 was 9.3%, down from 10.4% in PY Q4’14. Note 2: 2014 SG&A excludes Polygon transaction fees of $5.9 million. SG&A G&A 11.8% 7.8%

SG&A Expenses $36.6 $26.1 $28.3 $29.3 Deliveries 717 388 553 564 809 1,753 2,314 % of Home 10.4% 13.8% 11.4% 12.0% 9.3% 11.7% 11.2% Revenues $36.9 $100.5 $120.7 ($ in millions) (*) (*) Total SG&A Dollars for FYE 2014 contains only partial year amounts for WA and OR.

Significant and High Quality Land Inventory Summary as of 12/31/15 Land Distribution Note: Years supply calculated as total lots divided by LTM closings. Total Lots 17,414 Book Value of Inventory $1.7B Land and Land Development for 2015 Land Acquisition and Net Deposits:$222M Land Development (Horizontal):$134M Spend as a percent of revenue: 33% (*) AZ and NV lots held for future development are at fresh start accounting basis and are subject to 5 year change of control limitations related to DTA. (*)

Senior Notes Maturity 5.75% Sr. Notes 8.5% Sr. Notes 7% Sr. Notes The 5.75% and 8.5% Senior Notes are callable beginning in April and November 2016, respectively. The 7% Senior Notes are callable beginning in August 2017. ($ in millions)

Key Investment Highlights Strong market share in high quality markets Attractive land portfolio High quality, diverse product offerings Balanced capital structure Expertise in land acquisition, entitlement, and development Disciplined operating strategy Strong customer satisfaction and significant brand loyalty Experienced management team

Appendix

Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, 2015 2014 2015 2014 Adjusted EBITDA (dollars in thousands) Net income attributable to William Lyon Homes $26,295 $18,005 $57,335.684800000003 $44,625 Provision for income taxes 11,026 11,018 26,806.315200000001 23,797 Interest expense aaInterest incurred 20,307 26,741 76,222 65,559 aaInterest capitalized ,-20,307 ,-26,741 ,-76,222 ,-65,559 Amortization of capitalized interest included in cost of sales 14,666 10,014 38,416 26,510 Stock-based compensation 1,742 3,342 6,570 6,114 Depreciation and amortization 727 801 2,663 6,041 Transaction expenses 0 64 0 5,832 Non-cash purchase accounting adjustments q 8,478 5,891 28,919 9,979 Cash distributions of income from unconsolidated joint ventures 378 207 1,075 353 Equity in income of unconsolidated joint ventures -1,458 -,409 -3,239 -,555 Adjusted EBITDA $61,854 $48,933 $,158,546 $,122,696 Northern California 46 65

Adjusted Homebuilding Gross Margin (1) Cost of sales excluding interest and purchase accounting adjustments