ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 33-0864902 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
4695 MacArthur Court, 8th Floor Newport Beach, California | 92660 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | x |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging Growth Company | ¨ |
Class of Common Stock | Outstanding at October 31, 2018 | |
Common stock, Class A, par value $0.01 | 32,937,737 | |
Common stock, Class B, par value $0.01 | 4,817,394 |
Page No. | ||
Item 1. | Financial Statements as of September 30, 2018, and for the three and nine months ended September 30, 2018 and 2017 (Unaudited) | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 1. | Financial Statements |
September 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents — Note 1 | $ | 50,782 | $ | 182,710 | |||
Receivables | 10,561 | 10,223 | |||||
Escrow proceeds receivable | 370 | 3,319 | |||||
Real estate inventories — Note 6 | |||||||
Owned | 2,437,450 | 1,699,850 | |||||
Not owned | 209,819 | — | |||||
Investment in unconsolidated joint ventures — Note 4 | 5,109 | 7,867 | |||||
Goodwill | 118,877 | 66,902 | |||||
Intangibles, net of accumulated amortization of $4,640 as of September 30, 2018 and December 31, 2017 | 6,700 | 6,700 | |||||
Deferred income taxes | 48,279 | 47,915 | |||||
Lease right-of-use assets | 15,353 | 14,454 | |||||
Other assets, net | 40,748 | 21,164 | |||||
Total assets | $ | 2,944,048 | $ | 2,061,104 | |||
LIABILITIES AND EQUITY | |||||||
Accounts payable | $ | 94,904 | $ | 58,799 | |||
Accrued expenses | 125,249 | 111,491 | |||||
Liabilities from inventories not owned — Note 13 | 209,819 | — | |||||
Notes payable — Note 7: | |||||||
Revolving credit facility | 220,000 | — | |||||
Seller financing | — | 589 | |||||
Construction notes payable | 1,426 | — | |||||
Joint venture notes payable | 163,385 | 93,926 | |||||
5 3/4% Senior Notes due April 15, 2019 — Note 7 | — | 149,362 | |||||
7% Senior Notes due August 15, 2022 — Note 7 | 347,273 | 346,740 | |||||
6% Senior Notes due September 1, 2023 — Note 7 | 343,568 | — | |||||
5 7/8% Senior Notes due January 31, 2025 — Note 7 | 440,597 | 439,567 | |||||
1,946,221 | 1,200,474 | ||||||
Commitments and contingencies — Note 13 | |||||||
Equity: | |||||||
William Lyon Homes stockholders’ equity | |||||||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized and no shares issued and outstanding at September 30, 2018 and December 31, 2017 | — | — | |||||
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 34,150,104 and 34,267,510 shares issued, 32,937,737 and 33,135,650 shares outstanding at September 30, 2018 and December 31, 2017, respectively | 341 | 344 | |||||
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 4,817,394 shares issued and outstanding at September 30, 2018 and December 31, 2017 | 48 | 48 | |||||
Additional paid-in capital | 445,694 | 454,286 | |||||
Retained earnings | 383,135 | 325,794 | |||||
Total William Lyon Homes stockholders’ equity | 829,218 | 780,472 | |||||
Noncontrolling interests — Note 3 | 168,609 | 80,158 | |||||
Total equity | 997,827 | 860,630 | |||||
Total liabilities and equity | $ | 2,944,048 | $ | 2,061,104 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Operating revenue | |||||||||||||||
Home sales — Note 1 | $ | 533,514 | $ | 490,304 | $ | 1,424,331 | $ | 1,171,791 | |||||||
Construction services — Note 1 | 1,190 | 35 | 3,193 | 94 | |||||||||||
534,704 | 490,339 | 1,427,524 | 1,171,885 | ||||||||||||
Operating costs | |||||||||||||||
Cost of sales — homes | (436,311 | ) | (401,700 | ) | (1,169,191 | ) | (973,212 | ) | |||||||
Construction services — Note 1 | (1,121 | ) | (35 | ) | (3,063 | ) | (41 | ) | |||||||
Sales and marketing | (28,879 | ) | (21,935 | ) | (80,420 | ) | (57,924 | ) | |||||||
General and administrative | (30,039 | ) | (22,951 | ) | (83,067 | ) | (61,447 | ) | |||||||
Transaction expenses | — | — | (3,907 | ) | — | ||||||||||
Other | (591 | ) | (548 | ) | (1,510 | ) | (1,548 | ) | |||||||
(496,941 | ) | (447,169 | ) | (1,341,158 | ) | (1,094,172 | ) | ||||||||
Operating income | 37,763 | 43,170 | 86,366 | 77,713 | |||||||||||
Equity in income of unconsolidated joint ventures | 531 | 1,160 | 1,996 | 2,622 | |||||||||||
Other income (loss), net | 2,510 | (365 | ) | 2,856 | (12 | ) | |||||||||
Income before extinguishment of debt | 40,804 | 43,965 | 91,218 | 80,323 | |||||||||||
Loss on extinguishment of debt | — | — | — | (21,828 | ) | ||||||||||
Income before provision for income taxes | 40,804 | 43,965 | 91,218 | 58,495 | |||||||||||
Provision for income taxes — Note 10 | (8,990 | ) | (13,905 | ) | (19,580 | ) | (17,480 | ) | |||||||
Net income | 31,814 | 30,060 | 71,638 | 41,015 | |||||||||||
Less: Net income attributable to noncontrolling interests | (5,256 | ) | (2,642 | ) | (14,297 | ) | (4,643 | ) | |||||||
Net income available to common stockholders | $ | 26,558 | $ | 27,418 | $ | 57,341 | $ | 36,372 | |||||||
Income per common share: | |||||||||||||||
Basic | $ | 0.70 | $ | 0.74 | $ | 1.51 | $ | 0.98 | |||||||
Diluted | $ | 0.68 | $ | 0.71 | $ | 1.45 | $ | 0.95 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 37,847,743 | 37,059,483 | 37,931,764 | 37,007,144 | |||||||||||
Diluted | 39,160,894 | 38,583,341 | 39,581,986 | 38,381,292 |
William Lyon Homes Stockholders | ||||||||||||||||||||||
Common Stock | Additional Paid-In | Non- Controlling | ||||||||||||||||||||
Shares | Amount | Capital | Retained Earnings | Interests | Total | |||||||||||||||||
Balance - December 31, 2017 | 39,085 | $ | 392 | $ | 454,286 | $ | 325,794 | $ | 80,158 | $ | 860,630 | |||||||||||
Net income | — | — | — | 57,341 | 14,297 | 71,638 | ||||||||||||||||
Cash contributions from members of consolidated entities | — | — | — | — | 126,088 | 126,088 | ||||||||||||||||
Cash distributions to members of consolidated entities | — | — | — | — | (51,934 | ) | (51,934 | ) | ||||||||||||||
Repurchases of common stock | (497 | ) | (6 | ) | (11,228 | ) | — | — | (11,234 | ) | ||||||||||||
Shares remitted to Company to satisfy employee tax obligations | (198 | ) | (2 | ) | (4,952 | ) | — | — | (4,954 | ) | ||||||||||||
Stock based compensation expense | 577 | 5 | 7,588 | — | — | 7,593 | ||||||||||||||||
Balance - September 30, 2018 | 38,967 | $ | 389 | $ | 445,694 | $ | 383,135 | $ | 168,609 | $ | 997,827 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||
Operating activities | |||||||
Net income | $ | 71,638 | $ | 41,015 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 5,779 | 1,426 | |||||
Net change in deferred income taxes | (364 | ) | 2,154 | ||||
Stock based compensation expense | 7,593 | 6,260 | |||||
Equity in earnings of unconsolidated joint ventures | (1,996 | ) | (2,622 | ) | |||
Distributions from unconsolidated joint ventures | 4,896 | 1,840 | |||||
Loss on extinguishment of debt | — | 21,828 | |||||
Net changes in operating assets and liabilities: | |||||||
Receivables | 1,271 | (342 | ) | ||||
Escrow proceeds receivable | 2,949 | (143 | ) | ||||
Real estate inventories | (303,149 | ) | (98,980 | ) | |||
Other assets | (4,149 | ) | (3,536 | ) | |||
Accounts payable | 26,790 | 9,834 | |||||
Accrued expenses | 3,746 | (1,724 | ) | ||||
Net cash used in operating activities | (184,996 | ) | (22,990 | ) | |||
Investing activities | |||||||
Cash paid for acquisitions, net of cash acquired | (475,221 | ) | — | ||||
Purchases of property and equipment | (7,500 | ) | (2,416 | ) | |||
Net cash used in investing activities | (482,721 | ) | (2,416 | ) | |||
Financing activities | |||||||
Proceeds from borrowings on notes payable | 151,551 | 105,109 | |||||
Principal payments on notes payable | (82,971 | ) | (101,400 | ) | |||
Redemption premium of 8.5% Senior Notes | — | (19,645 | ) | ||||
Principal payments of 8.5% Senior Notes | — | (425,000 | ) | ||||
Principal payments on 5.75% Senior Notes | (150,000 | ) | — | ||||
Proceeds from issuance of 5.875% Senior Notes | — | 446,468 | |||||
Proceeds from issuance of 6% Senior Notes | 350,000 | — | |||||
Proceeds from borrowings on Revolver | 407,446 | 275,000 | |||||
Payments on Revolver | (187,446 | ) | (254,000 | ) | |||
Principal payments on subordinated amortizing notes | — | (5,606 | ) | ||||
Payment of deferred loan costs | (10,757 | ) | (9,794 | ) | |||
Shares remitted to, or withheld by the Company for employee tax withholding | (4,954 | ) | (1,450 | ) | |||
Payments to repurchase common stock | (11,234 | ) | (2,284 | ) | |||
Noncontrolling interest contributions | 126,088 | 58,829 | |||||
Noncontrolling interest distributions | (51,934 | ) | (39,829 | ) | |||
Net cash provided by financing activities | 535,789 | 26,398 | |||||
Net (decrease) increase in cash and cash equivalents | (131,928 | ) | 992 | ||||
Cash and cash equivalents — beginning of period | 182,710 | 42,612 | |||||
Cash and cash equivalents — end of period | $ | 50,782 | $ | 43,604 | |||
Supplemental disclosures: | |||||||
Cash paid during the period for income taxes | $ | 169 | $ | 17,079 | |||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 5,640 | $ | 5,213 | |||
Accrued deferred loan costs | $ | 869 | $ | — | |||
Inventory reclassified to Other assets upon adoption of ASC 606 | $ | 5,365 | $ | — | |||
Non-cash additions to Real estate inventories - not owned and Liabilities from inventories not owned | $ | 15,546 | $ | — |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||
Warranty liability, beginning of period | $ | 13,643 | $ | 14,173 | |||
Warranty provision during period (1) | 7,591 | 7,695 | |||||
Warranty payments, net of insurance recoveries during period | (9,436 | ) | (9,418 | ) | |||
Warranty charges related to construction services projects | 30 | 120 | |||||
Warranty liability, end of period | $ | 11,828 | $ | 12,570 |
(1) | In connection with the RSI Acquisition (see Note 2), the Company assumed warranty liability of $0.6 million for units closed prior to the RSI Acquisition date and for which has been included in this line item for purposes of this table. |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Interest incurred | $ | 24,725 | $ | 18,112 | $ | 66,791 | $ | 56,359 | |||||||
Less: Interest capitalized | 24,725 | 18,112 | 66,791 | 56,359 | |||||||||||
Interest expense, net of amounts capitalized | $ | — | $ | — | $ | — | $ | — | |||||||
Cash paid for interest | $ | 40,578 | $ | 28,374 | $ | 73,622 | $ | 55,532 |
Net proceeds received from RSI inventory involved in land banking transactions | $ | 194,131 | |
Issuance of 6.00% Senior Notes due September 1, 2023 | 190,437 | ||
Cash on hand | 90,653 | ||
475,221 |
Assets Acquired | ||||
Real estate inventories | $ | 436,578 | ||
Goodwill | 51,975 | |||
Other | 6,532 | |||
Total Assets | $ | 495,085 | ||
Liabilities Assumed | ||||
Accounts payable | $ | 9,315 | ||
Accrued expenses | 8,244 | |||
Notes payable | 2,305 | |||
Total liabilities | 19,864 | |||
Net assets acquired | $ | 475,221 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||
Operating revenues | $ | 534,704 | $ | 526,652 | $ | 1,467,959 | $ | 1,232,343 | ||||
Net income available to common stockholders | $ | 26,558 | $ | 28,177 | $ | 57,143 | $ | 35,867 | ||||
Income per share - basic | $ | 0.70 | $ | 0.76 | $ | 1.51 | $ | 0.97 | ||||
Income per share - diluted | $ | 0.68 | $ | 0.74 | $ | 1.44 | $ | 0.94 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Revenues | $ | 3,975 | $ | 5,368 | $ | 11,863 | $ | 13,830 | |||||||
Cost of sales | (2,974 | ) | (2,781 | ) | (7,901 | ) | (7,936 | ) | |||||||
Income of unconsolidated joint ventures | $ | 1,001 | $ | 2,587 | $ | 3,962 | $ | 5,894 |
September 30, 2018 | December 31, 2017 | |||||||||
Assets | ||||||||||
Cash | $ | 6,723 | $ | 12,802 | ||||||
Loans held for sale | 24,183 | 17,106 | ||||||||
Accounts receivable | 815 | 2,791 | ||||||||
Other assets | 146 | 128 | ||||||||
Total Assets | $ | 31,867 | $ | 32,827 | ||||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 457 | $ | 779 | ||||||
Accrued expenses | 1,331 | 1,532 | ||||||||
Credit lines payable | 22,882 | 18,312 | ||||||||
Other liabilities | 543 | 31 | ||||||||
Members equity | 6,654 | 12,173 | ||||||||
Total Liabilities and Equity | $ | 31,867 | $ | 32,827 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Operating revenue: | |||||||||||||||
California (1) | $ | 201,316 | $ | 230,960 | $ | 510,581 | $ | 462,277 | |||||||
Arizona | 34,286 | 39,607 | 105,089 | 118,695 | |||||||||||
Nevada | 49,816 | 42,966 | 145,205 | 103,448 | |||||||||||
Colorado | 54,574 | 24,811 | 157,074 | 77,149 | |||||||||||
Washington (2) | 82,177 | 71,788 | 223,318 | 185,523 | |||||||||||
Oregon | 69,430 | 80,207 | 182,504 | 224,793 | |||||||||||
Texas | 43,105 | — | 103,753 | — | |||||||||||
Total operating revenue | $ | 534,704 | $ | 490,339 | $ | 1,427,524 | $ | 1,171,885 | |||||||
(1) Operating revenue in the California segment includes construction services revenue in the periods ended September 30, 2017. | |||||||||||||||
(2) Operating revenue in the Washington segment includes construction services revenue in the periods ended September 30, 2018. | |||||||||||||||
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Income before provision for income taxes: | |||||||||||||||
California | $ | 20,830 | $ | 31,150 | $ | 46,022 | $ | 53,907 | |||||||
Arizona | 5,688 | 3,388 | 13,048 | 11,102 | |||||||||||
Nevada | 6,237 | 4,372 | 17,478 | 7,811 | |||||||||||
Colorado | 5,467 | 969 | 14,248 | 2,519 | |||||||||||
Washington | 12,297 | 6,164 | 28,046 | 10,249 | |||||||||||
Oregon | 6,734 | 10,708 | 17,497 | 25,847 | |||||||||||
Texas | 257 | — | 1,016 | — | |||||||||||
Corporate | (16,706 | ) | (12,786 | ) | (46,137 | ) | (31,112 | ) | |||||||
Income before loss on extinguishment of debt | $ | 40,804 | $ | 43,965 | $ | 91,218 | $ | 80,323 | |||||||
Corporate - Loss on extinguishment of debt | — | — | — | (21,828 | ) | ||||||||||
Income before provision for income taxes | $ | 40,804 | $ | 43,965 | $ | 91,218 | $ | 58,495 |
September 30, 2018 | December 31, 2017 | ||||||
Homebuilding assets: | |||||||
Owned: | |||||||
California | $ | 987,598 | $ | 631,649 | |||
Arizona | 172,191 | 170,634 | |||||
Nevada | 205,859 | 211,202 | |||||
Colorado | 159,534 | 149,183 | |||||
Washington | 332,639 | 286,442 | |||||
Oregon | 408,814 | 288,981 | |||||
Texas | 232,679 | — | |||||
Corporate (1) | 234,915 | 323,013 | |||||
$ | 2,734,229 | $ | 2,061,104 | ||||
Not Owned: | |||||||
California | $ | 107,901 | $ | — | |||
Texas | 101,918 | — | |||||
Total homebuilding assets | $ | 2,944,048 | $ | 2,061,104 |
(1) | Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, lease right-of-use assets, and other assets. |
September 30, 2018 | December 31, 2017 | ||||||
Real estate inventories: | |||||||
Land deposits | $ | 113,142 | $ | 51,833 | |||
Land and land under development | 596,594 | 495,114 | |||||
Finished lots | 643,675 | 409,296 | |||||
Homes completed and under construction | 987,121 | 646,198 | |||||
Model homes | 96,918 | 97,409 | |||||
Total | $ | 2,437,450 | $ | 1,699,850 | |||
Real estate inventories not owned (1): | |||||||
Other land options contracts — land banking arrangement | $ | 209,819 | $ | — |
(1) | Represents the consolidation of a land banking arrangement. Although the Company is not obligated to purchase the lots, based on certain factors, the Company has determined that it is economically compelled to purchase the lots in the land banking arrangement and thus, has consolidated the assets and liabilities associated with this land bank. Amounts are net of deposits. |
September 30, 2018 | December 31, 2017 | ||||||
Notes payable: | |||||||
Revolving credit facility | $ | 220,000 | $ | — | |||
Seller financing | — | 589 | |||||
Construction notes payable | 1,426 | — | |||||
Joint venture notes payable | 163,385 | 93,926 | |||||
Total notes payable | 384,811 | 94,515 | |||||
Senior notes: | |||||||
5 3/4% Senior Notes due April 15, 2019 | — | 149,362 | |||||
7% Senior Notes due August 15, 2022 | 347,273 | 346,740 | |||||
6% Senior Notes due September 1, 2023 | 343,568 | — | |||||
5 7/8% Senior Notes due January 31, 2025 | 440,597 | 439,567 | |||||
Total senior notes | 1,131,438 | 935,669 | |||||
Total notes payable and senior notes | $ | 1,516,249 | $ | 1,030,184 |
Year Ending December 31, | |||
Remaining in 2018 | $ | 1,426 | |
2019 | 37,397 | ||
2020 | 7,288 | ||
2021 | 338,699 | ||
2022 | 350,000 | ||
Thereafter | 800,000 | ||
$ | 1,534,810 |
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||
May, 2018 | $ | 128.0 | $ | 72.3 | May, 2021 | 5.50 | % | (3) | ||||||
May, 2018 | 13.3 | 7.3 | June, 2020 | 5.14 | % | (4) | ||||||||
July, 2017 | 66.2 | 46.4 | February, 2021 | 5.25 | % | (3) | ||||||||
January, 2016 | 35.0 | 23.4 | February, 2019 | 5.49 | % | (2) | ||||||||
November, 2015 | 42.5 | 14.0 | May, 2019 | 6.25 | % | (5) | ||||||||
March, 2014 | 4.0 | — | October, 2018 | 5.07 | % | (1) | ||||||||
$ | 289.0 | $ | 163.4 |
Year | Percentage | |
September 1, 2020 | 103.00 | % |
September 1, 2021 | 101.50 | % |
September 1, 2022 | 100.00 | % |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 36,089 | $ | 924 | $ | 13,769 | $ | — | $ | 50,782 | |||||||||||
Receivables | — | 3,290 | 3,966 | 3,305 | — | 10,561 | |||||||||||||||||
Escrow proceeds receivable | — | 381 | (11 | ) | — | — | 370 | ||||||||||||||||
Real estate inventories | |||||||||||||||||||||||
Owned | — | 843,083 | 1,138,490 | 455,877 | — | 2,437,450 | |||||||||||||||||
Not owned | — | — | 209,819 | — | — | 209,819 | |||||||||||||||||
Investment in unconsolidated joint ventures | — | 4,959 | 150 | — | — | 5,109 | |||||||||||||||||
Goodwill | — | 14,209 | 104,668 | — | — | 118,877 | |||||||||||||||||
Intangibles, net | — | — | 6,700 | — | — | 6,700 | |||||||||||||||||
Deferred income taxes, net | — | 48,279 | — | — | — | 48,279 | |||||||||||||||||
Lease right-of-use assets | — | 15,353 | — | — | — | 15,353 | |||||||||||||||||
Other assets, net | — | 28,544 | 11,709 | 495 | — | 40,748 | |||||||||||||||||
Investments in subsidiaries | 829,218 | 17,876 | (980,772 | ) | — | 133,678 | — | ||||||||||||||||
Intercompany receivables | — | — | 281,709 | — | (281,709 | ) | — | ||||||||||||||||
Total assets | $ | 829,218 | $ | 1,012,063 | $ | 777,352 | $ | 473,446 | $ | (148,031 | ) | $ | 2,944,048 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Accounts payable | $ | — | $ | 60,125 | $ | 21,998 | $ | 12,781 | $ | — | $ | 94,904 | |||||||||||
Accrued expenses | — | 96,184 | 28,954 | 111 | — | 125,249 | |||||||||||||||||
Liabilities from inventories not owned | — | — | 209,819 | — | — | 209,819 | |||||||||||||||||
Notes payable | — | 220,000 | 1,426 | 163,385 | — | 384,811 | |||||||||||||||||
7% Senior Notes | — | 347,273 | — | — | — | 347,273 | |||||||||||||||||
6% Senior Notes | — | 343,568 | — | — | — | 343,568 | |||||||||||||||||
5 7/8% Senior Notes | — | 440,597 | — | — | — | 440,597 | |||||||||||||||||
Intercompany payables | — | 171,025 | — | 110,684 | (281,709 | ) | — | ||||||||||||||||
Total liabilities | — | 1,678,772 | 262,197 | 286,961 | (281,709 | ) | 1,946,221 | ||||||||||||||||
Equity | |||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 829,218 | (666,709 | ) | 515,155 | 17,876 | 133,678 | 829,218 | ||||||||||||||||
Noncontrolling interests | — | — | — | 168,609 | — | 168,609 | |||||||||||||||||
Total liabilities and equity | $ | 829,218 | $ | 1,012,063 | $ | 777,352 | $ | 473,446 | $ | (148,031 | ) | $ | 2,944,048 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 171,434 | $ | 156 | $ | 11,120 | $ | — | $ | 182,710 | |||||||||||
Receivables | — | 4,647 | 2,252 | 3,324 | — | 10,223 | |||||||||||||||||
Escrow proceeds receivable | — | 1,594 | 1,725 | — | — | 3,319 | |||||||||||||||||
Real estate inventories | — | 831,007 | 630,384 | 238,459 | — | 1,699,850 | |||||||||||||||||
Investment in unconsolidated joint ventures | — | 7,717 | 150 | — | — | 7,867 | |||||||||||||||||
Goodwill | — | 14,209 | 52,693 | — | — | 66,902 | |||||||||||||||||
Intangibles, net | — | — | 6,700 | — | — | 6,700 | |||||||||||||||||
Deferred income taxes, net | — | 47,915 | — | — | — | 47,915 | |||||||||||||||||
Lease right-of-use assets | — | 14,454 | — | — | — | 14,454 | |||||||||||||||||
Other assets, net | — | 18,167 | 2,504 | 493 | — | 21,164 | |||||||||||||||||
Investments in subsidiaries | 780,472 | (16,544 | ) | (494,201 | ) | — | (269,727 | ) | — | ||||||||||||||
Intercompany receivables | — | — | 269,831 | — | (269,831 | ) | — | ||||||||||||||||
Total assets | $ | 780,472 | $ | 1,094,600 | $ | 472,194 | $ | 253,396 | $ | (539,558 | ) | $ | 2,061,104 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Accounts payable | $ | — | $ | 40,075 | $ | 13,007 | $ | 5,717 | $ | — | $ | 58,799 | |||||||||||
Accrued expenses | — | 108,407 | 2,988 | 96 | — | 111,491 | |||||||||||||||||
Notes payable | — | 589 | — | 93,926 | — | 94,515 | |||||||||||||||||
5 3/4% Senior Notes | — | 149,362 | — | — | — | 149,362 | |||||||||||||||||
7% Senior Notes | — | 346,740 | — | — | — | 346,740 | |||||||||||||||||
5 7/8% Senior Notes | — | 439,567 | — | — | — | 439,567 | |||||||||||||||||
Intercompany payables | — | 179,788 | — | 90,043 | (269,831 | ) | — | ||||||||||||||||
Total liabilities | — | 1,264,528 | 15,995 | 189,782 | (269,831 | ) | 1,200,474 | ||||||||||||||||
Equity | |||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 780,472 | (169,928 | ) | 456,199 | (16,544 | ) | (269,727 | ) | 780,472 | ||||||||||||||
Noncontrolling interests | — | — | — | 80,158 | — | 80,158 | |||||||||||||||||
Total liabilities and equity | $ | 780,472 | $ | 1,094,600 | $ | 472,194 | $ | 253,396 | $ | (539,558 | ) | $ | 2,061,104 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 160,850 | $ | 304,115 | $ | 68,549 | $ | — | $ | 533,514 | |||||||||||
Construction services | — | — | 1,190 | — | — | 1,190 | |||||||||||||||||
Management fees | — | (2,181 | ) | — | — | 2,181 | — | ||||||||||||||||
— | 158,669 | 305,305 | 68,549 | 2,181 | 534,704 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (125,991 | ) | (252,406 | ) | (55,733 | ) | (2,181 | ) | (436,311 | ) | ||||||||||||
Construction services | — | — | (1,121 | ) | — | — | (1,121 | ) | |||||||||||||||
Sales and marketing | — | (8,154 | ) | (17,012 | ) | (3,713 | ) | — | (28,879 | ) | |||||||||||||
General and administrative | — | (21,935 | ) | (8,100 | ) | (4 | ) | — | (30,039 | ) | |||||||||||||
Other | — | (591 | ) | — | — | — | (591 | ) | |||||||||||||||
— | (156,671 | ) | (278,639 | ) | (59,450 | ) | (2,181 | ) | (496,941 | ) | |||||||||||||
Income from subsidiaries | 26,558 | 8,682 | — | — | (35,240 | ) | — | ||||||||||||||||
Operating income | 26,558 | 10,680 | 26,666 | 9,099 | (35,240 | ) | 37,763 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 163 | 368 | — | — | 531 | |||||||||||||||||
Other income (loss), net | — | 802 | 1,323 | 385 | — | 2,510 | |||||||||||||||||
Income before provision for income taxes | 26,558 | 11,645 | 28,357 | 9,484 | (35,240 | ) | 40,804 | ||||||||||||||||
Provision for income taxes | — | (8,990 | ) | — | — | — | (8,990 | ) | |||||||||||||||
Net income | 26,558 | 2,655 | 28,357 | 9,484 | (35,240 | ) | 31,814 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (5,256 | ) | — | (5,256 | ) | |||||||||||||||
Net income available to common stockholders | $ | 26,558 | $ | 2,655 | $ | 28,357 | $ | 4,228 | $ | (35,240 | ) | $ | 26,558 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 211,317 | $ | 218,033 | $ | 60,954 | $ | — | $ | 490,304 | |||||||||||
Construction services | — | 35 | — | — | — | 35 | |||||||||||||||||
Management fees | — | (1,899 | ) | — | — | 1,899 | — | ||||||||||||||||
— | 209,453 | 218,033 | 60,954 | 1,899 | 490,339 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (165,392 | ) | (181,184 | ) | (53,225 | ) | (1,899 | ) | (401,700 | ) | ||||||||||||
Construction services | — | (35 | ) | — | — | — | (35 | ) | |||||||||||||||
Sales and marketing | — | (7,904 | ) | (11,521 | ) | (2,510 | ) | — | (21,935 | ) | |||||||||||||
General and administrative | — | (19,171 | ) | (3,780 | ) | — | — | (22,951 | ) | ||||||||||||||
Other | — | (635 | ) | 86 | 1 | — | (548 | ) | |||||||||||||||
— | (193,137 | ) | (196,399 | ) | (55,734 | ) | (1,899 | ) | (447,169 | ) | |||||||||||||
Income from subsidiaries | 27,418 | 6,162 | — | — | (33,580 | ) | — | ||||||||||||||||
Operating income | 27,418 | 22,478 | 21,634 | 5,220 | (33,580 | ) | 43,170 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 819 | 341 | — | — | 1,160 | |||||||||||||||||
Other income (loss), net | — | 47 | (4 | ) | (408 | ) | — | (365 | ) | ||||||||||||||
Income before provision for income taxes | 27,418 | 23,344 | 21,971 | 4,812 | (33,580 | ) | 43,965 | ||||||||||||||||
Provision for income taxes | — | (13,905 | ) | — | — | — | (13,905 | ) | |||||||||||||||
Net income | 27,418 | 9,439 | 21,971 | 4,812 | (33,580 | ) | 30,060 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (2,642 | ) | — | (2,642 | ) | |||||||||||||||
Net income available to common stockholders | $ | 27,418 | $ | 9,439 | $ | 21,971 | $ | 2,170 | $ | (33,580 | ) | $ | 27,418 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 446,173 | $ | 803,111 | $ | 175,047 | $ | — | $ | 1,424,331 | |||||||||||
Construction services | — | — | 3,193 | — | — | 3,193 | |||||||||||||||||
Management fees | — | (5,560 | ) | — | — | 5,560 | — | ||||||||||||||||
— | 440,613 | 806,304 | 175,047 | 5,560 | 1,427,524 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (353,519 | ) | (667,040 | ) | (143,072 | ) | (5,560 | ) | (1,169,191 | ) | ||||||||||||
Construction services | — | — | (3,063 | ) | — | — | (3,063 | ) | |||||||||||||||
Sales and marketing | — | (24,237 | ) | (45,458 | ) | (10,725 | ) | — | (80,420 | ) | |||||||||||||
General and administrative | — | (59,803 | ) | (23,258 | ) | (6 | ) | — | (83,067 | ) | |||||||||||||
Transaction expenses | — | (3,907 | ) | — | — | — | (3,907 | ) | |||||||||||||||
Other | — | (1,624 | ) | 84 | 30 | — | (1,510 | ) | |||||||||||||||
— | (443,090 | ) | (738,735 | ) | (153,773 | ) | (5,560 | ) | (1,341,158 | ) | |||||||||||||
Income from subsidiaries | 57,341 | 22,304 | — | — | (79,645 | ) | — | ||||||||||||||||
Operating income | 57,341 | 19,827 | 67,569 | 21,274 | (79,645 | ) | 86,366 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 1,127 | 869 | — | — | 1,996 | |||||||||||||||||
Other income (loss), net | — | 1,823 | 1,374 | (341 | ) | — | 2,856 | ||||||||||||||||
Income before provision for income taxes | 57,341 | 22,777 | 69,812 | 20,933 | (79,645 | ) | 91,218 | ||||||||||||||||
Provision for income taxes | — | (19,580 | ) | — | — | — | (19,580 | ) | |||||||||||||||
Net income | 57,341 | 3,197 | 69,812 | 20,933 | (79,645 | ) | 71,638 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (14,297 | ) | — | (14,297 | ) | |||||||||||||||
Net income available to common stockholders | $ | 57,341 | $ | 3,197 | $ | 69,812 | $ | 6,636 | $ | (79,645 | ) | $ | 57,341 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 505,006 | $ | 535,828 | $ | 130,957 | $ | — | $ | 1,171,791 | |||||||||||
Construction services | — | 94 | — | — | — | 94 | |||||||||||||||||
Management fees | — | (3,501 | ) | — | — | 3,501 | — | ||||||||||||||||
— | 501,599 | 535,828 | 130,957 | 3,501 | 1,171,885 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (408,420 | ) | (445,737 | ) | (115,554 | ) | (3,501 | ) | (973,212 | ) | ||||||||||||
Construction services | — | (41 | ) | — | — | — | (41 | ) | |||||||||||||||
Sales and marketing | — | (21,479 | ) | (29,241 | ) | (7,204 | ) | — | (57,924 | ) | |||||||||||||
General and administrative | — | (49,285 | ) | (12,161 | ) | (1 | ) | — | (61,447 | ) | |||||||||||||
Other | — | (1,786 | ) | 232 | 6 | — | (1,548 | ) | |||||||||||||||
— | (481,011 | ) | (486,907 | ) | (122,753 | ) | (3,501 | ) | (1,094,172 | ) | |||||||||||||
Income from subsidiaries | 36,372 | 13,328 | — | — | (49,700 | ) | — | ||||||||||||||||
Operating income | 36,372 | 33,916 | 48,921 | 8,204 | (49,700 | ) | 77,713 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 1,743 | 879 | — | — | 2,622 | |||||||||||||||||
Other income (loss), net | — | 1,072 | (10 | ) | (1,074 | ) | — | (12 | ) | ||||||||||||||
Income before extinguishment of debt | 36,372 | 36,731 | 49,790 | 7,130 | (49,700 | ) | 80,323 | ||||||||||||||||
Loss on extinguishment of debt | — | (21,828 | ) | — | — | — | (21,828 | ) | |||||||||||||||
Income (loss) before provision for income taxes | 36,372 | 14,903 | 49,790 | 7,130 | (49,700 | ) | 58,495 | ||||||||||||||||
Provision for income taxes | — | (17,480 | ) | — | — | — | (17,480 | ) | |||||||||||||||
Net income | 36,372 | (2,577 | ) | 49,790 | 7,130 | (49,700 | ) | 41,015 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (4,643 | ) | — | (4,643 | ) | |||||||||||||||
Net income available to common stockholders | $ | 36,372 | $ | (2,577 | ) | $ | 49,790 | $ | 2,487 | $ | (49,700 | ) | $ | 36,372 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 8,595 | $ | 4,151 | $ | 17,046 | $ | (189,404 | ) | $ | (25,384 | ) | $ | (184,996 | ) | ||||||||
Investing activities | |||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | — | — | (475,221 | ) | — | — | (475,221 | ) | |||||||||||||||
Purchases of property and equipment | — | (3,502 | ) | (4,013 | ) | 15 | — | (7,500 | ) | ||||||||||||||
Investments in subsidiaries | — | (28,905 | ) | 486,571 | — | (457,666 | ) | — | |||||||||||||||
Net cash (used in) provided by investing activities | — | (32,407 | ) | 7,337 | 15 | (457,666 | ) | (482,721 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | — | 234 | 151,317 | — | 151,551 | |||||||||||||||||
Principal payments on notes payable | — | — | (1,113 | ) | (81,858 | ) | — | (82,971 | ) | ||||||||||||||
Principal payments on 5.75% Senior Notes | — | (150,000 | ) | — | — | — | (150,000 | ) | |||||||||||||||
Proceeds from issuance of 6.0% Senior Notes | — | 350,000 | — | — | — | 350,000 | |||||||||||||||||
Proceeds from borrowings on Revolver | — | 407,446 | — | — | — | 407,446 | |||||||||||||||||
Payments on Revolver | — | (187,446 | ) | — | — | — | (187,446 | ) | |||||||||||||||
Payment of deferred loan costs | — | (10,757 | ) | — | — | — | (10,757 | ) | |||||||||||||||
Shares remitted to, or withheld by the Company for employee tax withholding | — | (4,954 | ) | — | — | — | (4,954 | ) | |||||||||||||||
Payments to repurchase common stock | — | (11,234 | ) | — | — | — | (11,234 | ) | |||||||||||||||
Noncontrolling interest contributions | — | — | — | 126,088 | — | 126,088 | |||||||||||||||||
Noncontrolling interest distributions | — | — | — | (51,934 | ) | — | (51,934 | ) | |||||||||||||||
Advances to affiliates | — | — | (10,856 | ) | 27,784 | (16,928 | ) | — | |||||||||||||||
Intercompany receivables/payables | (8,595 | ) | (500,144 | ) | (11,880 | ) | 20,641 | 499,978 | — | ||||||||||||||
Net cash (used in) provided by financing activities | (8,595 | ) | (107,089 | ) | (23,615 | ) | 192,038 | 483,050 | 535,789 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (135,345 | ) | 768 | 2,649 | — | (131,928 | ) | |||||||||||||||
Cash and cash equivalents - beginning of period | — | 171,434 | 156 | 11,120 | — | 182,710 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 36,089 | $ | 924 | $ | 13,769 | $ | — | $ | 50,782 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (2,526 | ) | $ | 2,452 | $ | 4,366 | $ | (29,808 | ) | $ | 2,526 | $ | (22,990 | ) | ||||||||
Investing activities | |||||||||||||||||||||||
Purchases of property and equipment | — | (1,781 | ) | (572 | ) | (63 | ) | — | (2,416 | ) | |||||||||||||
Investments in subsidiaries | — | 7,841 | 2,275 | — | (10,116 | ) | — | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 6,060 | 1,703 | (63 | ) | (10,116 | ) | (2,416 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | — | — | 105,109 | — | 105,109 | |||||||||||||||||
Principal payments on notes payable | — | — | — | (101,400 | ) | — | (101,400 | ) | |||||||||||||||
Redemption premium of 8.5% Senior Notes | — | (19,645 | ) | — | — | — | (19,645 | ) | |||||||||||||||
Principal payments of 8.5% Senior Notes | — | (425,000 | ) | — | — | — | (425,000 | ) | |||||||||||||||
Proceeds from issuance of 5.875% Senior Notes | — | 446,468 | — | — | — | 446,468 | |||||||||||||||||
Proceeds from borrowings on Revolver | — | 275,000 | — | — | — | 275,000 | |||||||||||||||||
Payments on revolver | — | (254,000 | ) | — | — | — | (254,000 | ) | |||||||||||||||
Principal payments on subordinated amortizing notes | — | (5,606 | ) | — | — | — | (5,606 | ) | |||||||||||||||
Payment of deferred loan costs | — | (9,794 | ) | — | — | — | (9,794 | ) | |||||||||||||||
Shares remitted to, or withheld by Company for employee tax withholding | — | (1,450 | ) | — | — | — | (1,450 | ) | |||||||||||||||
Payments to repurchase common stock | — | (2,284 | ) | — | — | — | (2,284 | ) | |||||||||||||||
Noncontrolling interest contributions | — | — | — | 58,829 | — | 58,829 | |||||||||||||||||
Noncontrolling interest distributions | — | — | — | (39,829 | ) | — | (39,829 | ) | |||||||||||||||
Advances to affiliates | — | — | (18,367 | ) | 3,000 | 15,367 | — | ||||||||||||||||
Intercompany receivables/payables | 2,526 | (13,678 | ) | 11,698 | 7,231 | (7,777 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 2,526 | (9,989 | ) | (6,669 | ) | 32,940 | 7,590 | 26,398 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (1,477 | ) | (600 | ) | 3,069 | — | 992 | |||||||||||||||
Cash and cash equivalents - beginning of period | — | 36,204 | 272 | 6,136 | — | 42,612 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 34,727 | $ | (328 | ) | $ | 9,205 | $ | — | $ | 43,604 |
• | Notes payable—The carrying amount is a reasonable estimate of fair value of the notes payable because of floating interest rate terms and/or the outstanding balance is expected to be repaid within one year. |
• | 5 3/4% Senior Notes due April 15, 2019 —The 5 3/4% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. |
• | 7% Senior Notes due August 15, 2022 —The 7% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. |
• | 6% Senior Notes due September 1, 2023 —The 6% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. |
• | 5 7/8 Senior Notes due January 31, 2025 —The 5 7/8% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. |
September 30, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial liabilities: | |||||||||||||||
Notes payable | $ | 164,811 | $ | 164,811 | $ | 94,515 | $ | 94,515 | |||||||
5 3/4% Senior Notes due 2019 | — | — | 149,362 | 151,500 | |||||||||||
7% Senior Notes due 2022 | 347,273 | 354,830 | 346,740 | 362,250 | |||||||||||
6% Senior Notes due 2023 | 343,568 | 339,080 | — | — | |||||||||||
5 7/8% Senior Notes due 2025 | 440,597 | 420,210 | 439,567 | 459,000 |
• | Level 1—quoted prices for identical assets or liabilities in active markets; |
• | Level 2—quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and |
• | Level 3—valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Basic weighted average number of common shares outstanding | 37,847,743 | 37,059,483 | 37,931,764 | 37,007,144 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options, unvested common shares, and warrants | 1,313,150 | 1,523,858 | 1,650,222 | 1,374,148 | |||||||||||
Diluted average shares outstanding | 39,160,894 | 38,583,341 | 39,581,986 | 38,381,292 | |||||||||||
Net income available to common stockholders | $ | 26,558 | $ | 27,418 | $ | 57,341 | $ | 36,372 | |||||||
Basic income per common share | $ | 0.70 | $ | 0.74 | $ | 1.51 | $ | 0.98 | |||||||
Dilutive income per common share | $ | 0.68 | $ | 0.71 | $ | 1.45 | $ | 0.95 | |||||||
Antidilutive securities not included in the calculation of diluted income per common share (weighted average): | |||||||||||||||
Unvested stock options | — | 240,000 | — | 240,000 |
September 30, 2018 | ||||
Total number of land banking projects consolidated | 1 | |||
Total number of lots | 3,181 | |||
Total purchase price | $ | 316,452 | ||
Balance of lots still under option and not purchased: | ||||
Number of lots | 2,522 | |||
Purchase price | $ | 249,375 | ||
Forfeited deposits if lots are not purchased | $ | 39,705 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||||||
Lease cost | ||||||||||||||||
Operating lease cost | $ | 2,113 | $ | 1,646 | $ | 6,166 | $ | 4,405 | ||||||||
Sublease income | (29 | ) | (29 | ) | (87 | ) | (87 | ) | ||||||||
Total lease cost | $ | 2,084 | $ | 1,617 | $ | 6,079 | $ | 4,318 | ||||||||
Other information | ||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities for operating leases: | ||||||||||||||||
Operating cash flows | $ | 1,779 | $ | 1,621 | $ | 5,325 | $ | 3,879 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 252 | $ | 155 | $ | 5,640 | $ | 5,213 | ||||||||
Weighted-average discount rate | 6.5 | % | 6.6 | % | 6.5 | % | 6.6 | % |
September 30, 2018 | December 31, 2017 | |||
Weighted-average remaining lease term (in years) | 4.08 | 3.58 |
Year Ending December 31, | |||
Remaining in 2018 | $ | 2,007 | |
2019 | 5,817 | ||
2020 | 4,841 | ||
2021 | 4,497 | ||
2022 | 3,191 | ||
Thereafter | 3,871 | ||
Total | $ | 24,224 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Number of Net New Home Orders | |||||||||||
California | 295 | 238 | 57 | 24 | % | ||||||
Arizona | 118 | 124 | (6 | ) | (5 | )% | |||||
Nevada | 94 | 66 | 28 | 42 | % | ||||||
Colorado | 100 | 82 | 18 | 22 | % | ||||||
Washington | 77 | 116 | (39 | ) | (34 | )% | |||||
Oregon | 145 | 148 | (3 | ) | (2 | )% | |||||
Texas | 172 | N/A | N/M | N/M | |||||||
Total | 1,001 | 774 | 227 | 29 | % |
Three Months Ended September 30, | Increase (Decrease) | |||||||
2018 | 2017 | % | ||||||
Cancellation Rates | ||||||||
California | 20 | % | 21 | % | (1 | )% | ||
Arizona | 12 | % | 11 | % | 1 | % | ||
Nevada | 20 | % | 19 | % | 1 | % | ||
Colorado | 18 | % | 23 | % | (5 | )% | ||
Washington | 13 | % | 17 | % | (4 | )% | ||
Oregon | 20 | % | 19 | % | 1 | % | ||
Texas | 21 | % | N/A | N/M | ||||
Overall | 19 | % | 19 | % | — | % |
Three Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Average Number of Sales Locations | |||||||||||
California | 36 | 23 | 13 | 57 | % | ||||||
Arizona | 6 | 7 | (1 | ) | (14 | )% | |||||
Nevada | 15 | 13 | 2 | 15 | % | ||||||
Colorado | 12 | 16 | (4 | ) | (25 | )% | |||||
Washington | 10 | 11 | (1 | ) | (9 | )% | |||||
Oregon | 15 | 16 | (1 | ) | (6 | )% | |||||
Texas | 22 | N/A | N/M | N/M | |||||||
Total | 116 | 86 | 30 | 35 | % |
Three Months Ended September 30, 2018 | Increase (Decrease) | ||||
2018 | 2017 | ||||
Quarterly Absorption Rates | |||||
California | 8.2 | 10.3 | (2.1) | ||
Arizona | 19.7 | 17.7 | 2.0 | ||
Nevada | 6.3 | 5.1 | 1.2 | ||
Colorado | 8.3 | 5.1 | 3.2 | ||
Washington | 7.7 | 10.5 | (2.8) | ||
Oregon | 9.7 | 9.3 | 0.4 | ||
Texas | 7.8 | N/A | N/M | ||
Overall | 8.6 | 9.0 | (0.4) |
September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Backlog (units) | |||||||||||
California | 451 | 370 | 81 | 22 | % | ||||||
Arizona | 169 | 197 | (28 | ) | (14 | )% | |||||
Nevada | 159 | 120 | 39 | 33 | % | ||||||
Colorado | 214 | 164 | 50 | 30 | % | ||||||
Washington | 133 | 192 | (59 | ) | (31 | )% | |||||
Oregon | 222 | 165 | 57 | 35 | % | ||||||
Texas | 248 | N/A | N/M | N/M | |||||||
Total | 1,596 | 1,208 | 388 | 32 | % |
September 30, | Increase (Decrease) | |||||||||||||
2018 | 2017 | Amount | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Backlog (dollars) | ||||||||||||||
California | $ | 327,838 | $ | 294,861 | $ | 32,977 | 11 | % | ||||||
Arizona | 53,585 | 60,467 | (6,882 | ) | (11 | )% | ||||||||
Nevada | 94,053 | 81,192 | 12,861 | 16 | % | |||||||||
Colorado | 92,315 | 69,085 | 23,230 | 34 | % | |||||||||
Washington | 83,256 | 119,299 | (36,043 | ) | (30 | )% | ||||||||
Oregon | 81,270 | 74,424 | 6,846 | 9 | % | |||||||||
Texas | 68,267 | N/A | N/M | N/M | ||||||||||
Total | $ | 800,584 | $ | 699,328 | $ | 101,256 | 14 | % |
Three Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Number of Homes Closed | |||||||||||
California | 301 | 300 | 1 | — | % | ||||||
Arizona | 108 | 133 | (25 | ) | (19 | )% | |||||
Nevada | 80 | 74 | 6 | 8 | % | ||||||
Colorado | 124 | 44 | 80 | 182 | % | ||||||
Washington | 118 | 116 | 2 | 2 | % | ||||||
Oregon | 159 | 184 | (25 | ) | (14 | )% | |||||
Texas | 163 | N/A | N/M | N/M | |||||||
Total | 1,053 | 851 | 202 | 24 | % |
Three Months Ended September 30, | Increase (Decrease) | |||||||||||||
2018 | 2017 | Amount | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Home Sales Revenue | ||||||||||||||
California | $ | 201,316 | $ | 230,925 | $ | (29,609 | ) | (13 | )% | |||||
Arizona | 34,286 | 39,607 | (5,321 | ) | (13 | )% | ||||||||
Nevada | 49,816 | 42,966 | 6,850 | 16 | % | |||||||||
Colorado | 54,574 | 24,811 | 29,763 | 120 | % | |||||||||
Washington | 80,987 | 71,788 | 9,199 | 13 | % | |||||||||
Oregon | 69,430 | 80,207 | (10,777 | ) | (13 | )% | ||||||||
Texas | 43,105 | N/A | N/M | N/M | ||||||||||
Total | $ | 533,514 | $ | 490,304 | $ | 43,210 | 9 | % |
Three Months Ended September 30, | Increase (Decrease) | |||||||||||||
2018 | 2017 | Amount | % | |||||||||||
Average Sales Price of Homes Closed | ||||||||||||||
California | $ | 668,800 | $ | 769,800 | $ | (101,000 | ) | (13 | )% | |||||
Arizona | 317,500 | 297,800 | 19,700 | 7 | % | |||||||||
Nevada | 622,700 | 580,600 | 42,100 | 7 | % | |||||||||
Colorado | 440,100 | 563,900 | (123,800 | ) | (22 | )% | ||||||||
Washington | 686,300 | 618,900 | 67,400 | 11 | % | |||||||||
Oregon | 436,700 | 435,900 | 800 | — | % | |||||||||
Texas | 264,400 | N/A | N/M | N/M | ||||||||||
Company Average | $ | 506,700 | $ | 576,200 | $ | (69,500 | ) | (12 | )% |
Three Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(dollars in thousands) | |||||||
Home sales revenue | $ | 533,514 | $ | 490,304 | |||
Cost of home sales | 436,311 | 401,700 | |||||
Homebuilding gross margin | 97,203 | 88,604 | |||||
Homebuilding gross margin percentage | 18.2 | % | 18.1 | % | |||
Add: Interest in cost of sales | 21,548 | 22,923 | |||||
Add: Purchase accounting adjustments | 3,855 | — | |||||
Adjusted homebuilding gross margin | $ | 122,606 | $ | 111,527 | |||
Adjusted homebuilding gross margin percentage | 23.0 | % | 22.7 | % |
Three Months Ended September 30, | As a Percentage of Home Sales Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(dollars in thousands) | |||||||||||||
Sales and Marketing | $ | 28,879 | $ | 21,935 | 5.4 | % | 4.5 | % | |||||
General and Administrative | 30,039 | 22,951 | 5.6 | % | 4.7 | % | |||||||
Total Sales and Marketing & General and Administrative | $ | 58,918 | $ | 44,886 | 11.0 | % | 9.2 | % |
Three Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Interest incurred | $ | 24,725 | $ | 18,112 | |||
Less: Interest capitalized | 24,725 | 18,112 | |||||
Interest expense, net of amounts capitalized | $ | — | $ | — | |||
Cash paid for interest | $ | 40,578 | $ | 28,374 |
September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Lots Owned | |||||||||||
California | 3,648 | 1,616 | 2,032 | 126 | % | ||||||
Arizona | 3,756 | 4,541 | (785 | ) | (17 | )% | |||||
Nevada | 2,745 | 2,871 | (126 | ) | (4 | )% | |||||
Colorado | 1,006 | 1,376 | (370 | ) | (27 | )% | |||||
Washington | 1,538 | 1,363 | 175 | 13 | % | ||||||
Oregon | 2,613 | 1,806 | 807 | 45 | % | ||||||
Texas | 3,199 | — | 3,199 | N/M | |||||||
Total | 18,505 | 13,573 | 4,932 | 36 | % | ||||||
Lots Controlled (1) | |||||||||||
California | 1,709 | 915 | 794 | 87 | % | ||||||
Arizona | 651 | 157 | 494 | N/M | |||||||
Nevada | — | 410 | (410 | ) | (100 | )% | |||||
Colorado | 2,368 | 292 | 2,076 | 711 | % | ||||||
Washington | 710 | 797 | (87 | ) | (11 | )% | |||||
Oregon | 1,307 | 1,800 | (493 | ) | (27 | )% | |||||
Texas | 3,885 | — | 3,885 | N/M | |||||||
Total | 10,630 | 4,371 | 6,259 | 143 | % | ||||||
Total Lots Owned and Controlled | 29,135 | 17,944 | 11,191 | 62 | % |
(1) | Lots controlled may be purchased by the Company as consolidated projects or may be purchased by newly formed joint ventures. |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Number of Net New Home Orders | |||||||||||
California | 915 | 783 | 132 | 17 | % | ||||||
Arizona | 344 | 401 | (57 | ) | (14 | )% | |||||
Nevada | 318 | 236 | 82 | 35 | % | ||||||
Colorado | 404 | 229 | 175 | 76 | % | ||||||
Washington | 392 | 432 | (40 | ) | (9 | )% | |||||
Oregon | 553 | 575 | (22 | ) | (4 | )% | |||||
Texas | 451 | N/A | N/M | N/M | |||||||
Total | 3,377 | 2,656 | 721 | 27 | % |
Nine Months Ended September 30, | Increase (Decrease) | |||||||
2018 | 2017 | % | ||||||
Cancellation Rates | ||||||||
California | 15 | % | 17 | % | (2 | )% | ||
Arizona | 11 | % | 10 | % | 1 | % | ||
Nevada | 19 | % | 15 | % | 4 | % | ||
Colorado | 11 | % | 15 | % | (4 | )% | ||
Washington | 9 | % | 15 | % | (6 | )% | ||
Oregon | 12 | % | 15 | % | (3 | )% | ||
Texas | 17 | % | N/A | N/M | ||||
Overall | 14 | % | 15 | % | (1 | )% |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Average Number of Sales Locations | |||||||||||
California | 29 | 23 | 6 | 26 | % | ||||||
Arizona | 6 | 8 | (2 | ) | (25 | )% | |||||
Nevada | 13 | 13 | — | — | % | ||||||
Colorado | 14 | 14 | — | — | % | ||||||
Washington | 9 | 9 | — | — | % | ||||||
Oregon | 15 | 18 | (3 | ) | (17 | )% | |||||
Texas | 16 | N/A | N/M | N/M | |||||||
Total | 102 | 85 | 17 | 20 | % |
Nine Months Ended September 30, | Increase (Decrease) | ||||
2018 | 2017 | ||||
Quarterly Absorption Rates | |||||
California | 10.5 | 11.3 | (0.8) | ||
Arizona | 19.1 | 16.7 | 2.4 | ||
Nevada | 8.2 | 6.1 | 2.1 | ||
Colorado | 9.6 | 5.5 | 4.1 | ||
Washington | 14.5 | 16.0 | (1.5) | ||
Oregon | 12.3 | 10.6 | 1.7 | ||
Texas | 9.4 | N/A | N/M | ||
Overall | 11.0 | 10.4 | 0.6 |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||||
2018 | 2017 | Amount | % | ||||||||
Number of Homes Closed | |||||||||||
California | 779 | 637 | 142 | 22 | % | ||||||
Arizona | 336 | 408 | (72 | ) | (18 | )% | |||||
Nevada | 245 | 175 | 70 | 40 | % | ||||||
Colorado | 362 | 140 | 222 | 159 | % | ||||||
Washington | 350 | 292 | 58 | 20 | % | ||||||
Oregon | 403 | 529 | (126 | ) | (24 | )% | |||||
Texas | 400 | N/A | N/M | N/M | |||||||
Total | 2,875 | 2,181 | 694 | 32 | % |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||
2018 | 2017 | Amount | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Home Sales Revenue | ||||||||||||||
California | $ | 510,581 | $ | 462,183 | $ | 48,398 | 10 | % | ||||||
Arizona | 105,089 | 118,695 | (13,606 | ) | (11 | )% | ||||||||
Nevada | 145,205 | 103,448 | 41,757 | 40 | % | |||||||||
Colorado | 157,074 | 77,149 | 79,925 | 104 | % | |||||||||
Washington | 220,125 | 185,523 | 34,602 | 19 | % | |||||||||
Oregon | 182,504 | 224,793 | (42,289 | ) | (19 | )% | ||||||||
Texas | 103,753 | N/A | N/M | N/M | ||||||||||
Total | $ | 1,424,331 | $ | 1,171,791 | $ | 252,540 | 22 | % |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||
2018 | 2017 | Amount | % | |||||||||||
Average Sales Price of Homes Closed | ||||||||||||||
California | $ | 655,400 | $ | 725,600 | $ | (70,200 | ) | (10 | )% | |||||
Arizona | 312,800 | 290,900 | 21,900 | 8 | % | |||||||||
Nevada | 592,700 | 591,100 | 1,600 | — | % | |||||||||
Colorado | 433,900 | 551,100 | (117,200 | ) | (21 | )% | ||||||||
Washington | 628,900 | 635,400 | (6,500 | ) | (1 | )% | ||||||||
Oregon | 452,900 | 424,900 | 28,000 | 7 | % | |||||||||
Texas | 259,400 | N/A | N/M | N/M | ||||||||||
Company Average | $ | 495,400 | $ | 537,300 | $ | (41,900 | ) | (8 | )% |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(dollars in thousands) | |||||||
Home sales revenue | $ | 1,424,331 | $ | 1,171,791 | |||
Cost of home sales | (1,169,191 | ) | (973,212 | ) | |||
Homebuilding gross margin | 255,140 | 198,579 | |||||
Homebuilding gross margin percentage | 17.9 | % | 16.9 | % | |||
Add: Interest in cost of sales | 62,681 | 55,220 | |||||
Add: Purchase accounting adjustments | 9,975 | — | |||||
Adjusted homebuilding gross margin | $ | 327,796 | $ | 253,799 | |||
Adjusted homebuilding gross margin percentage | 23.0 | % | 21.7 | % |
Nine Months Ended September 30, | As a Percentage of Home Sales Revenue | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(dollars in thousands) | |||||||||||||
Sales and Marketing | $ | 80,420 | $ | 57,924 | 5.7 | % | 4.9 | % | |||||
General and Administrative | 83,067 | 61,447 | 5.8 | % | 5.2 | % | |||||||
Total Sales and Marketing & General and Administrative | $ | 163,487 | $ | 119,371 | 11.5 | % | 10.1 | % |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Interest incurred | $ | 66,791 | $ | 56,359 | |||
Less: Interest capitalized | 66,791 | 56,359 | |||||
Interest expense, net of amounts capitalized | $ | — | $ | — | |||
Cash paid for interest | $ | 73,622 | $ | 55,532 |
Covenant Requirements at | Actual at | |||||||
Financial Covenant | September 30, 2018 | September 30, 2018 | ||||||
Minimum Tangible Net Worth | $ | 621.3 | million | $ | 882.4 | million | ||
Maximum Leverage Ratio | 65.0 | % | 62.6 | % | ||||
Interest Coverage Ratio; or (1) | 1.5 | 3.2 | ||||||
Minimum Liquidity (1) | $ | 84.2 | million | $ | 147.9 | million |
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||
May, 2018 | $ | 128.0 | $ | 72.3 | May, 2021 | 5.50 | % | (3) | ||||||
May, 2018 | 13.3 | 7.3 | June, 2020 | 5.14 | % | (4) | ||||||||
July, 2017 | 66.2 | 46.4 | February, 2021 | 5.25 | % | (3) | ||||||||
January, 2016 | 35.0 | 23.4 | February, 2019 | 5.49 | % | (2) | ||||||||
November, 2015 | 42.5 | 14.0 | May, 2019 | 6.25 | % | (5) | ||||||||
March, 2014 | 4.0 | — | October, 2018 | 5.07 | % | (1) | ||||||||
$ | 289.0 | $ | 163.4 |
September 30, 2018 | December 31, 2017 | ||||||
(dollars in thousands) | |||||||
Notes payable and Senior Notes | $ | 1,516,249 | $ | 1,030,184 | |||
Total equity | 997,827 | 860,630 | |||||
Total capital | $ | 2,514,076 | $ | 1,890,814 | |||
Ratio of debt to total capital | 60.3 | % | 54.5 | % | |||
Notes payable and Senior Notes | $ | 1,516,249 | $ | 1,030,184 | |||
Less: Cash and cash equivalents | (50,782 | ) | (182,710 | ) | |||
Net debt | 1,465,467 | 847,474 | |||||
Total equity | 997,827 | 860,630 | |||||
Total capital (net of cash) | $ | 2,463,294 | $ | 1,708,104 | |||
Ratio of net debt to total capital (net of cash) | 59.5 | % | 49.6 | % |
September 30, 2018 | ||||
Total number of land banking projects consolidated | 1 | |||
Total number of lots | 3,181 | |||
Total purchase price | $ | 316,452 | ||
Balance of lots still under option and not purchased: | ||||
Number of lots | 2,522 | |||
Purchase price | $ | 249,375 | ||
Forfeited deposits if lots are not purchased | $ | 39,705 |
• | Net cash used in operating activities was $185.0 million in the 2018 period compared to $23.0 million in the 2017 period. The change was primarily a result of (i) a net increase in spending on real estate inventories-owned of $303.1 million, net of $194.1 million of cash proceeds from a land banking arrangement, compared to $99.0 million in the 2017 period, partially offset by (ii) an increase in accounts payable of $26.8 million in the 2018 period compared to $9.8 million in the 2017 period due to timing of payments, and (iii) an increase in accrued expenses of $3.7 million in the 2018 period compared to a decrease of $1.7 million in the 2017 period. |
• | Net cash used in investing activities was $482.7 million in the 2018 period primarily due to the cash paid for the RSI acquisition of $475.2 million in the 2018 period, for which there is no comparable amount in the 2017 period, in addition to an increase in purchases of property and equipment of $7.5 million in the 2018 period compared to $2.4 million in the 2017 period. |
• | Net cash provided by financing activities increased to $535.8 million in the 2018 period from $26.4 million in the 2017 period. The change was primarily the result of (i) proceeds of $350.0 million from the issuance of the 6% Senior Notes in the 2018 period, for which there is no comparable amount in the 2017 period, (ii) principal payments of the 8.5% Senior Notes of $425.0 million in the 2017 period for which there is no comparable amount in the 2018 period, (iii) net proceeds from borrowings of $220.0 million against the revolving line of credit in the 2018 period, versus $21.0 million in the 2017 period, (iv) net proceeds from borrowings of $68.6 million against notes payable in the 2018 period compared to $3.7 million in the 2017 period, and (v) net noncontrolling interest contributions of $74.2 million in the 2018 period compared to $19.0 million in the 2017 period, partially offset by (vi) principal payments of the 5.75% Senior Notes of $150.0 million in the 2018 period, for which there is no comparable amount in the 2017 period, and (vii) proceeds from the issuance of the 5.875% Senior Notes of $446.5 million in the 2017 period, for which there is no comparable amount in the 2018 period. |
Estimated Number of Homes at Completion (1) | Cumulative Homes Closed as of September 30, 2018 (2) | Backlog at September 30, 2018 (3) (4) | Lots Owned or Controlled as of September 30, 2018 (5) | Homes Closed for the Nine Months Ended September 30, 2018 | Estimated Sales Price Range (6) | ||||||||||||
California | 7,206 | 1,849 | 451 | 5,357 | 779 | $ 301,000 - 2,991,000 | |||||||||||
Arizona | 5,029 | 1,294 | 169 | 4,407 | 336 | $ 168,990 - 468,990 | |||||||||||
Nevada | 2,458 | 962 | 159 | 2,745 | 245 | $ 181,500 - 1,562,500 | |||||||||||
Colorado | 4,301 | 927 | 214 | 3,374 | 362 | $ 271,000 - 584,000 | |||||||||||
Washington | 3,117 | 869 | 133 | 2,248 | 350 | $ 284,990 - 1,329,990 | |||||||||||
Oregon | 5,218 | 1,298 | 222 | 3,920 | 403 | $ 194,990 - 779,990 | |||||||||||
Texas | 7,767 | 400 | 248 | 7,084 | 400 | $ 190,990 - 452,990 | |||||||||||
GRAND TOTALS | 35,096 | 7,599 | 1,596 | 29,135 | 2,875 |
(1) | The estimated number of homes to be built at completion is approximate and includes home sites in our backlog. Such estimated amounts are subject to change based on, among other things, future site planning, as well as zoning and permit changes, and there can be no assurance that the Company will build these homes. Further, certain projects may include lots that the Company controls, and that are also reflected in "Lots Owned or Controlled as of September 30, 2018". |
(2) | “Cumulative Homes Closed” represents homes closed since the project opened, and may include prior years, in addition to the homes closed during the current year presented. |
(3) | Backlog consists of homes sold under sales contracts that have not yet closed, and there can be no assurance that closings of sold homes will occur. |
(4) | Of the total homes subject to pending sales contracts as of September 30, 2018, 1,100 represent homes that are completed or under construction. |
(5) | Lots owned or controlled as of September 30, 2018 include lots in backlog at September 30, 2018 and projects with lots owned as of September 30, 2018 that are expected to open for sale and have an estimated year of first delivery of 2019 or later, as well as lots controlled as of September 30, 2018, and parcels of undeveloped land held for future sale. Certain lots controlled are under land banking arrangements which may become owned and produce deliveries during 2018. Actual homes at completion may change prior to the marketing and sales of homes in these projects and the sales price ranges for these projects are to be determined and will be based on current market conditions and other factors upon the commencement of active selling. There can be no assurance that the Company will acquire any of the controlled lots reflected in these amounts. |
(6) | Estimated sales price range reflects the most recent pricing updates of the base price only and excludes any lot premium, buyer incentive and buyer selected options, which vary from project to project. Sales prices reflect current pricing estimates and might not be indicative of past or future pricing. Further, any potential benefit to be gained from an increase in sales price ranges as compared to previously estimated amounts may be offset by increases in costs, profit participation, and other factors. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Years ending December 31, | Thereafter | Total | Fair Value at September 30, 2018 | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||||||||||||||
Fixed rate debt | $ | 1,426 | $ | — | $ | — | $ | — | $ | 350,000 | $ | 800,000 | $ | 1,151,426 | $ | 1,115,546 | |||||||||||||||
Interest rate | — | — | — | — | 7.0 | % | 5.875 - 6.0% |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Month Ended | Total Number of Shares Purchased (1) (2) | Average Price Paid Per Share | Total Number of Shares Purchased from Certain Employees (1) | Total Number of Shares Purchased under the Stock Repurchase Program (2) | Approximate Dollar Value of Shares that may yet be Repurchased under the Stock Repurchase Program | ||||||||||||
July 31, 2018 | 131,614 | $ | 22.92 | 830 | 130,784 | $ | 37,773,964 | ||||||||||
August 31, 2018 | 60,531 | $ | 20.13 | 10,531 | 50,000 | 36,767,474 | |||||||||||
September 30, 2018 | 63,729 | $ | 17.44 | 729 | 63,000 | 35,668,466 | |||||||||||
Total | 255,874 | 12,090 | 243,784 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosure |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Description |
Certification of Chief Executive Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002. | |
Certification of Chief Financial Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002. | |
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. | |
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. | |
101.INS** | XBRL Instance Document. |
101.SCH** | XBRL Taxonomy Extension Schema Document. |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document. |
+ | Filed herewith |
* | The information in Exhibits 32.1 and 32.2 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 the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference. |
** | Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections. |
WILLIAM LYON HOMES, | ||
a Delaware corporation | ||
Date: November 5, 2018 | By: | /S/ COLIN T. SEVERN |
Colin T. Severn | ||
Senior Vice President, Chief Financial Officer (Principal Accounting Officer and Duly Authorized Signatory) |
Exhibit No. | Description |
31.1+ | Certification of Chief Executive Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002. |
31.2+ | Certification of Chief Financial Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002. |
32.1* | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. |
32.2* | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. |
101.INS** | XBRL Instance Document. |
101.SCH** | XBRL Taxonomy Extension Schema Document. |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document. |
+ | Filed herewith |
* | The information in Exhibits 32.1 and 32.2 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 the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference. |
** | Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections. |
1. | I have reviewed this Quarterly Report on Form 10-Q of William Lyon Homes; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 5, 2018 | /S/ Matthew R. Zaist |
Matthew R. Zaist | |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of William Lyon Homes; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 5, 2018 | /S/ COLIN T. SEVERN |
Colin T. Severn | |
Senior Vice President, Chief Financial Officer |
/S/ Matthew R. Zaist |
Matthew R. Zaist |
President and Chief Executive Officer |
/S/ COLIN T. SEVERN |
Colin T. Severn |
Senior Vice President, Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WLH | |
Entity Registrant Name | WILLIAM LYON HOMES | |
Entity Central Index Key | 0001095996 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common stock, Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,937,737 | |
Common stock, Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,817,394 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Operating revenue | $ 534,704,000 | $ 490,339,000 | $ 1,427,524,000 | $ 1,171,885,000 |
Operating costs | ||||
Sales and marketing | (28,879,000) | (21,935,000) | (80,420,000) | (57,924,000) |
General and administrative | (30,039,000) | (22,951,000) | (83,067,000) | (61,447,000) |
Transaction expenses | 0 | 0 | (3,907,000) | 0 |
Other | (591,000) | (548,000) | (1,510,000) | (1,548,000) |
Total operating costs | (496,941,000) | (447,169,000) | (1,341,158,000) | (1,094,172,000) |
Operating income (loss) | 37,763,000 | 43,170,000 | 86,366,000 | 77,713,000 |
Equity in income of unconsolidated joint ventures | 531,000 | 1,160,000 | 1,996,000 | 2,622,000 |
Other income (loss), net | 2,510,000 | (365,000) | 2,856,000 | (12,000) |
Income before extinguishment of debt | 40,804,000 | 43,965,000 | 91,218,000 | 80,323,000 |
Loss on extinguishment of debt | 0 | 0 | 0 | (21,828,000) |
Income (loss) before provision for income taxes | 40,804,000 | 43,965,000 | 91,218,000 | 58,495,000 |
Provision for income taxes | (8,990,000) | (13,905,000) | (19,580,000) | (17,480,000) |
Net income (loss) | 31,814,000 | 30,060,000 | 71,638,000 | 41,015,000 |
Less: Net income attributable to noncontrolling interests | (5,256,000) | (2,642,000) | (14,297,000) | (4,643,000) |
Net income available to common stockholders | $ 26,558,000 | $ 27,418,000 | $ 57,341,000 | $ 36,372,000 |
Income per common share: | ||||
Basic (in USD per share) | $ 0.70 | $ 0.74 | $ 1.51 | $ 0.98 |
Diluted (in USD per share) | $ 0.68 | $ 0.71 | $ 1.45 | $ 0.95 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,847,743 | 37,059,483 | 37,931,764 | 37,007,144 |
Diluted (in shares) | 39,160,894 | 38,583,341 | 39,581,986 | 38,381,292 |
Home sales | ||||
Operating revenue | $ 533,514,000 | $ 490,304,000 | $ 1,424,331,000 | $ 1,171,791,000 |
Operating costs | ||||
Cost of goods and services sold | 436,311,000 | 401,700,000 | 1,169,191,000 | 973,212,000 |
Construction services | ||||
Operating revenue | 1,190,000 | 35,000 | 3,193,000 | 94,000 |
Operating costs | ||||
Cost of goods and services sold | $ 1,121,000 | $ 35,000 | $ 3,063,000 | $ 41,000 |
Basis of Presentation and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Operations William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), is primarily engaged in designing, constructing, marketing and selling single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington (under the Polygon Northwest brand), Oregon (under the Polygon Northwest brand) and Texas. Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of September 30, 2018 and December 31, 2017 and revenues and expenses for the three and nine month periods ended September 30, 2018 and 2017. Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, accounting for variable interest entities, business combinations, and valuation of deferred tax assets. The current economic environment increases the uncertainty inherent in these estimates and assumptions. The condensed consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities ("VIEs") in which the Company is considered the primary beneficiary (see Note 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2017, which are included in our 2017 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report. Also, refer to the discussion under Revenue Recognition and Change in Accounting Principle below regarding the adoption of the new standard for revenue recognition. Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (“ASU 2014-09” or “ASC 606”). Refer to Change in Accounting Principle below for further details regarding the adoption. Home Sales Prior to January 1, 2018, under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, "Revenue Recognition" ("ASC 605"), revenue was recorded when a sale was consummated, the buyer’s initial and continuing investments were adequate, any receivables were not subject to future subordination, and the usual risks and rewards of ownership had transferred to the buyer. Effective January 1, 2018, upon adoption of ASC 606, revenue is recorded upon the close of escrow, at which point home sales are considered in the scope of a contract. Accordingly, the Company does not record homebuilding revenue for performance obligations that are unsatisfied or partially unsatisfied. No revenue was recorded in the 2018 period that did not result from current period performance. Construction Services The Company accounted for construction management agreements using the Percentage of Completion Method in accordance with ASC 605 (prior to January 1, 2018) and ASC 606 (subsequent to January 1, 2018). Under ASC 605 and ASC 606, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. During the three months ended September 30, 2018, the Company had three land parcel sales that resulted in a $1.9 million gain. During the nine months ended September 30, 2018, the Company had six land parcel sales that resulted in a $1.9 million gain. During the three and nine months ended September 30, 2017, the Company had one and two land parcel sales, respectively, that resulted in a negligible loss for both periods then ended. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on the operating division, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company continually assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability for the nine months ended September 30, 2018 and 2017, are as follows (in thousands):
Interest incurred under the Company’s debt obligations, as more fully discussed in Note 7, is capitalized to qualifying real estate projects under development. Interest activity for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands):
Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, receivables, and deposits. The Company typically places its cash and cash equivalents in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments, including letters of credit, with off-balance sheet risk in the normal course of business which exposes it to credit risks. These off-balance sheet financial instruments are described in more detail in Note 13. Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of September 30, 2018 and December 31, 2017. The Company monitors the cash balances in its operating accounts, however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Deferred Loan Costs Deferred loan costs represent debt issuance costs and are primarily amortized to interest incurred using the straight line method which approximates the effective interest method. Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill amounts are not amortized, but rather are analyzed for impairment at the reporting segment level. Goodwill is analyzed on an annual basis, or when indicators of impairment exist. We have determined that we have seven reporting segments, as discussed in Note 5, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. Intangibles Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares. Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740, Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance is provided to reduce net deferred tax assets to an amount that is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. Impact of Recent Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements or notes to its consolidated financial statements. Effective January 1, 2018, the Company adopted ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)" (“ASU 2016-18”). ASU 2016-18 requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements or notes to its consolidated financial statements. Change in Accounting Principle The Company adopted ASC 606 with a date of initial application of January 1, 2018. The Company applied ASC 606 using the cumulative effect method - i.e. by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of equity at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under ASC 605. ASC 606 replaced the guidance for costs incurred to sell real estate with new guidance codified under ASC 340-40, “Other Assets and Deferred Costs - Contracts with Customers”. The Company previously capitalized certain marketing costs related to model homes and sales offices within Real estate inventories in the balance sheet; however, effective January 1, 2018, the Company capitalized these costs within Other Assets. The method of amortization of these costs is the same under ASC 606 as per the previous guidance, resulting in no adjustment to the Company's retained earnings or equity for the comparative period. However, under ASC 606, amortization is included in Sales and marketing expense, whereas amortization was previously recorded in Cost of sales - homes in the statement of operations. The adoption of ASC 606 did not have an impact on the amount or timing of the Company's homebuilding revenues. As of and for the three and nine months ended September 30, 2018, the adoption of ASC 606 did not have a material impact on the Company's balance sheet, net income, stockholders' equity or statement of cash flows. |
Acquisition of RSI Communities Acquisition of RSI Communities |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of RSI Communities | Acquisition of RSI Communities On March 9, 2018, the Company completed its acquisition of RSI Communities, a Southern California- and Texas-based homebuilder, pursuant to the Purchase and Sale Agreement (the “Purchase Agreement”) dated February 19, 2018 among California Lyon, RSI Communities, RS Equity Management L.L.C., Class B Sellers of RSI Communities, and RS Equity Management L.L.C. as the sellers’ representative, and its acquisition of three additional related real estate assets (the “Legacy Assets”) pursuant to each of the separate asset purchase agreements with each of RG Onion Creek, LLC, RSI Trails at Leander LLC and RSI Prado LLC (collectively referred to herein as "RSI Communities"), for an aggregate cash purchase price of $460.0 million, and an additional approximately $15.2 million at closing pursuant to initial working capital adjustments, a portion of which remains subject to final adjustment in accordance with the terms of the Purchase Agreement (collectively, the "RSI Acquisition") . Part of the acquired entities specific to the Southern California region now operate under the Company’s existing California segment. The remaining acquired entities now operate as a new segment of the Company in Texas, with core markets of Austin and San Antonio. The Company financed the RSI Acquisition with a combination of proceeds from its issuance of $350 million in aggregate principal amount of 6.00% senior notes due 2023, cash on hand, and approximately $194.3 million of aggregate proceeds from a land banking arrangement with respect to land parcels in various stages of development. As a result of the RSI Acquisition, the entities comprising the business of RSI Communities became wholly-owned direct or indirect subsidiaries of the Company, and its results are included in our condensed consolidated financial statements and related disclosures from the date of the RSI Acquisition. For the period from March 9, 2018 through September 30, 2018, home deliveries from RSI operations were 633 units. In addition, operating revenue and income before provision for income taxes for the same period were $198.5 million and $5.6 million, respectively. The RSI Acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities of RSI Communities at their estimated fair values, with the excess allocated to Goodwill, as shown below. Goodwill represents the value the Company expects to achieve through the operational synergies and the expansion of the Company into new markets. The Company estimates that the entire $52.0 million of goodwill resulting from the RSI Acquisition will be tax deductible. Goodwill will be allocated to the California and Texas operating segments (see Note 5). A reconciliation of the consideration transferred as of the acquisition date is as follows:
As of September 30, 2018, the Company had not completed its final estimate of the fair value of the net assets of RSI Communities. As such, the estimates used as of September 30, 2018 are subject to change. The following table summarizes the preliminary amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):
The Company determined the fair value of real estate inventories on a project level basis using a combination of discounted cash flow models, and market comparable land transactions, where available. These methods are significantly impacted by estimates relating to i) expected selling prices, ii) anticipated sales pace, iii) cost to complete estimates, iv) highest and best use of projects prior to acquisition, and v) comparable land values. These estimates were developed and used at the individual project level, and may vary significantly between projects. Other assets, accounts payable, accrued expenses and notes payable were generally stated at historical value due to the short-term nature of these liabilities. The Company recorded no acquisition related costs for the three months ended September 30, 2018 and $3.9 million in acquisition related costs for the nine months ended September 30, 2018, which are included in the Condensed Consolidated Statement of Operations in Transaction expenses. Such costs were expensed as incurred in accordance with ASC 805. Supplemental Pro Forma Information The following table presents unaudited pro forma amounts for the three and nine months ended September 30, 2018 and September 30, 2017 as if the RSI Acquisition, had been completed as of January 1, 2017 (amounts in thousands, except per share data):
The unaudited pro forma operating results have been determined after adjusting the unaudited operating results of RSI Communities, excluding the Legacy Assets, but including acquisition costs, to reflect the estimated purchase accounting and other acquisition adjustments. The unaudited pro forma results presented above do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquired entity, the costs to combine the operations of the Company and the acquired entity or the costs necessary to achieve any of the foregoing cost savings, operating synergies or revenue enhancements. As such, the unaudited pro forma amounts are for comparative purposes only and may not necessarily reflect the results of operations which would have resulted had the acquisition been completed at the beginning of the applicable period or indicative of the results that will be attained in the future. |
Variable Interest Entities and Noncontrolling Interests |
9 Months Ended |
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Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Variable Interest Entities and Noncontrolling Interests | Variable Interest Entities and Noncontrolling Interests As of September 30, 2018 and December 31, 2017, the Company was party to twenty-one and thirteen joint ventures, respectively, for the purpose of land development and homebuilding activities which we have determined to be VIEs. The Company, as the managing member, has the power to direct the activities of the VIEs since it manages the daily operations and has exposure to the risks and rewards of the VIEs, based upon the allocation of income and loss per the respective joint venture agreements. Therefore, the Company is the primary beneficiary of the joint ventures, and the VIEs were consolidated as of September 30, 2018 and December 31, 2017. As of September 30, 2018, the assets of the consolidated VIEs totaled $461.5 million, of which $13.7 million was cash and cash equivalents and $444.7 million was owned real estate inventories. The liabilities of the consolidated VIEs totaled $217.1 million, primarily comprised of notes payable, accounts payable and accrued liabilities. As of December 31, 2017, the assets of the consolidated VIEs totaled $244.7 million, of which $10.7 million was cash and cash equivalents and $230.8 million was owned real estate inventories. The liabilities of the consolidated VIEs totaled $124.5 million, primarily comprised of notes payable, accounts payable and accrued liabilities. |
Investments in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands):
Income from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations represents our share of the income of our unconsolidated mortgage joint ventures, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. For the three and nine months ended September 30, 2018, and 2017, the Company recorded income of $0.5 million and $2.0 million and $1.2 million and $2.6 million, respectively, from its unconsolidated joint ventures. This income was primarily attributable to our share of income related to mortgages that were generated and issued to qualifying home buyers during the periods. The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates one principal homebuilding business. In accordance with FASB ASC Topic 280, Segment Reporting ("ASC 280"), the Company has determined that each of its operating divisions is an operating segment. The Company’s President and Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company’s homebuilding operations design, construct and sell a wide range of homes designed to meet the specific needs in each of its markets. In accordance with ASC 280, prior to the acquisition of RSI Communities (see Note 2), the Company's homebuilding operations had been grouped into six operating segments. During the nine months ended September 30, 2018, the Company added one additional operating segment, Texas as a result of the RSI Acquisition. As such, in accordance with the aggregation criteria defined by ASC 280, the Company’s homebuilding operating segments have been grouped into seven reportable segments: California, consisting of operations in Orange, Los Angeles, San Diego, Alameda, Contra Costa, Santa Clara, Riverside and San Bernardino counties. Arizona, consisting of operations in the Phoenix, Arizona metropolitan area. Nevada, consisting of operations in the Las Vegas, Nevada metropolitan area. Colorado, consisting of operations in the Denver, Colorado metropolitan area. Washington, consisting of operations in the Seattle, Washington metropolitan area. Oregon, consisting of operations in the Portland, Oregon metropolitan area. Texas, consisting of operations in the Austin, Texas and San Antonio, Texas metropolitan areas. Corporate develops and implements strategic initiatives and supports the Company’s operating segments by centralizing key administrative functions such as finance and treasury, information technology, risk management and litigation and human resources. Segment financial information relating to the Company’s operations was as follows (in thousands):
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Real Estate Inventories |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Inventories | Real Estate Inventories Real estate inventories consist of the following (in thousands):
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Senior Notes, Secured, and Unsecured Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes, Secured, and Unsecured Indebtedness | Senior Notes, Secured, and Unsecured Indebtedness Senior notes, secured, and unsecured indebtedness consist of the following (in thousands):
As of September 30, 2018, the maturities of the Notes payable, 7% Senior Notes, 6% Senior Notes, and 5 7/8% Senior Notes are as follows (in thousands):
Maturities above exclude premium on the 7% Senior Notes of $0.6 million and discount on the 5 7/8% Senior Notes of $2.9 million, and deferred loan costs on the 7%, 6%, and 5 7/8% Senior Notes of $16.3 million as of September 30, 2018. Notes Payable Revolving Credit Facility On May 21, 2018, California Lyon and Parent entered into a new credit agreement providing for an unsecured revolving credit facility of up to $325.0 million (the “New Facility”) with the lenders party thereto, which New Facility replaces the Company’s previous $170.0 million revolving credit facility, as described below. The New Facility will mature on May 21, 2021, unless terminated earlier pursuant to the terms of the New Facility. The New Facility contains an uncommitted accordion feature under which its aggregate principal amount can be increased to up to $500.0 million under certain circumstances, as well as a sublimit of $50.0 million for letters of credit. The New Facility contains certain financial maintenance covenants, including (a) a minimum tangible net worth requirement of $556.4 million (which is subject to increase over time based on subsequent earnings and proceeds from equity offerings, as well as deferred tax assets to the extent included on the Company's financial statements), (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 65% as of June 30, 2018, further decreases to 60% effective as of December 31, 2018, and will remain at 60% thereafter, and (c) a covenant requiring us to maintain either (i) an interest coverage ratio (EBITDA to interest incurred, as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than the greater of our consolidated interest incurred during the trailing 12 months and $50.0 million. Our compliance with these financial covenants is measured by calculations and metrics that are specifically defined or described by the terms of the New Facility and can differ in certain respects from comparable GAAP or other commonly used terms. The New Facility also contains customary events of default, subject to cure periods in certain circumstances, including: nonpayment of principal, interest and fees or other amounts; violation of covenants; inaccuracy of representations and warranties; cross default to certain other indebtedness; unpaid judgments; and certain bankruptcy and other insolvency events. The occurrence of any event of default could result in the termination of the commitments under the New Facility and permit the Lenders to accelerate payment on outstanding borrowings under the New Facility and require cash collateralization of outstanding letters of credit. If a change of control (as defined in the New Facility) occurs, the Lenders may terminate the commitments under the New Facility and require that the Borrower repay outstanding borrowings under the New Facility and cash collateralize outstanding letters of credit. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. The Company was in compliance with all covenants under the New Facility as of September 30, 2018. Borrowings under the New Facility, the availability of which is subject to a borrowing base formula, are required to be guaranteed by the Parent and certain of the Parent’s wholly-owned subsidiaries (such subsidiaries, the “Guarantors”), and may be used for general corporate purposes. As of September 30, 2018, the commitment fee on the unused portion of the New Facility accrues at an annual rate of 0.50%. As of September 30, 2018, the Company had $220.0 million outstanding against the New Facility at an effective rate of 5.5%, as well as a letter of credit for $7.9 million. On July 1, 2016, California Lyon and Parent had entered into an amendment and restatement agreement pursuant to which its then existing credit agreement providing for a revolving credit facility was amended and restated in its entirety (the "Second Amended Facility"). As described above, the Second Amended Facility was replaced by the New Facility on May 21, 2018. Previously, the Second Amended Facility had amended and restated the Company’s previous $130.0 million revolving credit facility and had provided for total lending commitments of $145.0 million, which had been scheduled to terminate on January 14, 2019 based on certain conditions, prior to the execution of the New Facility. In addition, the Second Amended Facility previously had an uncommitted accordion feature under which the Company could have increased the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances, as well as a sublimit of $50.0 million for letters of credit. On November 28, 2017, California Lyon increased the size of the commitment under its Second Amended Facility by $25.0 million to an aggregate total of $170.0 million, through exercise of the facility’s accordion feature and entry into a new lender supplement as of such date. Pursuant to the Second Amended Facility, the maximum leverage ratio was 65% from June 30, 2016 through and including December 30, 2016, decreased to 62.5% on the last day of the 2016 fiscal year, remained at 62.5% from December 31, 2016 through and including June 29, 2017, and was scheduled to further decrease to 60% on the last day of the second quarter of 2017 and to remain at 60% thereafter. On June 16, 2017, California Lyon, Parent and the lenders party thereto had entered into a second amendment to the Second Amended Facility, which amended the maximum leverage ratio to extend the timing of the gradual step-downs, such that the leverage ratio remained at 62.5% through and including December 30, 2017, and decreased to 60% on the last day of the 2017 fiscal year and was scheduled to remain at 60% thereafter. On March 9, 2018, California Lyon, Parent and the lenders party thereto entered into a third amendment to the Second Amended Facility, which temporarily increased the maximum leverage ratio, such that the leverage ratio remained at 60% through and including March 30, 2018, and was scheduled to increase to 70% on March 31, 2018 through and including June 29, 2018. The Second Amended Facility previously contained certain financial maintenance covenants. The Company was in compliance with all covenants under the Second Amended Facility through its date of termination and replacement with the New Facility on May 21, 2018. Borrowings under the previous Second Amended Facility were required to be guaranteed by the Parent and certain of the Parent's wholly-owned subsidiaries, were secured by a pledge of all equity interests held by such guarantors, and may have been used for general corporate purposes. Interest rates on borrowings generally were based on either LIBOR or a base rate, plus the applicable spread. Through the date of termination of the Second Amended Facility, the commitment fee on the unused portion of the Second Amended Facility accrued at an annual rate of 0.50%. As of September 30, 2018, the Company had terminated the Second Amended Facility by entering into the New Facility. As of December 31, 2017, the Company had a letter of credit for $7.8 million but no outstanding balance against the previous Second Amended Facility. Seller Financing During the nine months ended September 30, 2018, the Company paid in full prior to maturity, along with all accrued interest to date, a note payable outstanding related to a land acquisition for which seller financing was provided. The note bore interest at a rate of 7% per annum and was secured by the underlying land. Notes Payable The Company and certain of its consolidated joint ventures have entered into notes payable agreements. These loans will be repaid with proceeds from closings and are secured by the underlying projects. The issuance date, facility size, maturity date and interest rate of the joint ventures notes payable are listed in the table below as of September 30, 2018 (in millions):
(1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0%. (2) Loan bears interest at LIBOR +3.25%. (3) Loan bears interest at the greatest of the prime rate, federal funds effective rate +1.0%, or LIBOR +1.0%. (4) Loan bears interest at LIBOR +2.90%. (5) Loan bears interest at the prime rate +1.0%. In addition to the above, the Company had $1.4 million of construction notes payable outstanding related to projects that are wholly-owned by the Company. The notes payable contain certain financial maintenance covenants. The Company was in compliance with all such covenants as of September 30, 2018. Senior Notes 5 3/4% Senior Notes Due 2019 On March 31, 2014, California Lyon completed its private placement with registration rights of 5.75% Senior Notes due 2019 (the "5.75% Notes"), in an aggregate principal amount of $150 million. The 5.75% Notes were issued at 100% of their aggregate principal amount. In August 2014, we exchanged 100% of the initial 5.75% Notes for notes that are freely transferable and registered under the Securities Act of 1933, as amended (the “Securities Act”). During the nine months ended September 30, 2018, Parent, through California Lyon, used the net proceeds from the offering of 6.00% Senior Notes due 2023, as further described below, (i) together with cash generated from certain land banking arrangements, and cash on hand, to finance the RSI Acquisition and to pay related fees and expenses and (ii) to repay all of California Lyon's $150 million in aggregate principal amount of 5.75% Notes such that the 5.75% Notes were satisfied and discharged prior to September 30, 2018. 8 1/2% Senior Notes Due 2020 During the nine months ended September 30, 2017, Parent, through California Lyon, used the net proceeds from its private placement with registration rights of 5.875% Senior Notes due 2025, as further described below, to purchase $395.6 million of the outstanding aggregate principal amount of the Company's 8.5% Senior Notes due 2020 (the "8.5% Notes"), pursuant to a cash tender offer and consent solicitation. Subsequently, the Company used the remaining proceeds, together with cash on hand, for the retirement of the remaining outstanding 8.5% Notes, such that the entire aggregate $425 million of previously outstanding 8.5% Notes are retired and extinguished as of December 31, 2017. The Company incurred certain costs related to the early extinguishment of debt of the 8.5% Notes during the nine months ended September 30, 2017 in an amount of $21.8 million, which is included in the Consolidated Statement of Operations as Loss on extinguishment of debt. 7% Senior Notes Due 2022 On August 11, 2014, WLH PNW Finance Corp. (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “initial 7.00% Notes”), in an aggregate principal amount of $300 million. The initial 7.00% Notes were issued at 100% of their aggregate principal amount. On August 12, 2014, in connection with the consummation of the acquisition of Polygon Northwest Homes, Escrow Issuer merged with and into California Lyon, and California Lyon assumed the obligations of the Escrow Issuer under the initial 7.00% Notes and the related indenture by operation of law (the “Escrow Merger”). Following the Escrow Merger, California Lyon is the obligor under the initial 7.00% Notes. In January 2015, we exchanged 100% of the initial 7.00% Notes for notes that are freely transferable and registered under the Securities Act. On September 15, 2015, California Lyon completed its private placement with registration rights of an additional $50.0 million in aggregate principal amount of its 7.00% Senior Notes due 2022 (the “additional 7.00% Notes”, and together with the initial 7.00% Notes, the "7.00% Notes") at an issue price of 102.0% of their principal amount, plus accrued interest from August 15, 2015, resulting in net proceeds of approximately $50.5 million. In January 2016, we exchanged 100% of the additional 7.00% Notes for notes that are freely transferable and registered under the Securities Act. As of September 30, 2018, the outstanding amount of the 7.00% Notes was $350 million, excluding unamortized premium of $0.6 million and deferred loan costs of $3.3 million. The 7.00% Notes bear interest at a rate of 7.00% per annum, payable semiannually in arrears on February 15 and August 15, and mature on August 15, 2022. The 7.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 7.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $350 million in aggregate principal amount of 6.00% Senior Notes due 2023 and $450 million in aggregate principal amount of 5.875% Senior Notes due 2025, each as described below. The 7.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 7.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. 6% Senior Notes Due 2023 On March 9, 2018, California Lyon completed its private placement with registration rights of 6.00% Senior Notes due 2023 (the "6.00% Notes"), in an aggregate principal amount of $350 million. The 6.00% Notes were issued at 100% of their aggregate principal amount. Parent, through California Lyon, used the net proceeds from the 6.00% Notes offering to (i) together with cash generated from certain land banking arrangements, and cash on hand, to finance the RSI Acquisition and to pay related fees and expenses and (ii) to repay all of California Lyon's $150 million of the outstanding aggregate principal amount of the 5.75% Notes. In September 2018, the Company exchanged 100% of the 6.00% Notes tendered in the exchange offer for notes that are freely transferable and registered under the Exchange Act. As of September 30, 2018, the outstanding principal amount of the 6.00% Notes was $350 million, excluding deferred loan costs of $6.4 million. The 6.00% Notes bear interest at a rate of 6.00% per annum, payable semiannually in arrears on March 1 and September 1, and mature on September 1, 2023. The 6.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 6.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $350 million in aggregate principal amount of 7.00% Senior Notes due 2022, as described above and $450 million in aggregate principal amount of 5.875% Senior Notes due 2025, as described below. The 6.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 6.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after September 1, 2020, California Lyon may redeem all or a portion of the 6.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount on the redemption date) set forth below plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, if redeemed during the 12-month period commencing on each of the dates as set forth below:
Prior to September 1, 2020, the Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, any time prior to September 1, 2020, California Lyon may, at its option on one or more occasions, redeem Notes (including any additional notes that may be issued in the future under the 2023 Notes Indenture) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Notes (including any additional notes that may be issued in the future under the 2023 Notes Indenture) issued prior to such date at a redemption price (expressed as a percentage of principal amount) of 106.00%, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings. 5.875% Senior Notes Due 2025 On January 31, 2017, California Lyon completed its private placement with registration rights of 5.875% Senior Notes due 2025 (the "5.875% Notes"), in an aggregate principal amount of $450 million. The 5.875% Notes were issued at 99.215% of their aggregate principal amount. Parent, through California Lyon, used the net proceeds from the 5.875% Notes offering to purchase the outstanding aggregate principal amount of the 8.5% Notes such that the entire aggregate $425 million of previously outstanding 8.5% Notes are retired and extinguished as of September 30, 2018. In May 2017, the Company exchanged 100% of the 5.875% Notes for notes that are freely transferable and registered under the Securities Act. As of September 30, 2018, the outstanding principal amount of the 5.875% Notes was $450 million, excluding unamortized discount of $2.9 million and deferred loan costs of $6.5 million. The 5.875% Notes bear interest at a rate of 5.875% per annum, payable semiannually in arrears on January 31 and July 31, and mature on January 31, 2025. The 5.875% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 5.875% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $350 million in aggregate principal amount of 7.00% Senior Notes due 2022 and $350 million in aggregate principal amount of 6.00% Senior Notes due 2023, each as described above. The 5.875% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 5.875% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. Senior Notes Covenant Compliance The indentures governing the 7.00% Notes, the 6.00% Notes, and the 5.875% Notes contain covenants that limit the ability of Parent, California Lyon, and their restricted subsidiaries to, among other things: (i) incur or guarantee certain additional indebtedness; (ii) pay dividends, distributions, or repurchase equity or make payments in respect of subordinated indebtedness; (iii) make certain investments; (iv) sell assets; (v) incur liens; (vi) enter into agreements restricting the ability of the Company’s restricted subsidiaries to pay dividends or transfer assets; (vii) enter into transactions with affiliates; (viii) create unrestricted subsidiaries; and (viii) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of important exceptions and qualifications as described in the indentures. The Company was in compliance with all such covenants as of September 30, 2018. GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information includes: (1) Consolidating balance sheets as of September 30, 2018 and December 31, 2017; consolidating statements of operations for the three and nine months ended September 30, 2018 and 2017; and consolidating statements of cash flows for the nine month periods ended September 30, 2018 and 2017, of (a) William Lyon Homes, as the parent, or “Delaware Lyon”, (b) William Lyon Homes, Inc., as the subsidiary issuer, or “California Lyon”, (c) the guarantor subsidiaries, (d) the non-guarantor subsidiaries and (e) William Lyon Homes, Inc. on a consolidated basis; and (2) Elimination entries necessary to consolidate Delaware Lyon, with California Lyon and its guarantor and non-guarantor subsidiaries. Delaware Lyon owns 100% of all of its guarantor subsidiaries and all guarantees are full and unconditional, joint and several. As a result, in accordance with Rule 3-10 (d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of September 30, 2018 and December 31, 2017, and for the three and nine month periods ended September 30, 2018 and 2017. CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended September 30, 2017 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2017 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2017 (in thousands)
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosure (“ASC 820”), the Company is required to disclose the estimated fair value of financial instruments. As of September 30, 2018 and December 31, 2017, the Company used the following assumptions to estimate the fair value of each type of financial instrument for which it is practicable to estimate:
The following table excludes cash and cash equivalents, receivables and accounts payable, which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of financial instruments are as follows (in thousands):
ASC 820 establishes a framework for measuring fair value, expands disclosures regarding fair value measurements and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. The Company used Level 3 to measure the fair value of its Notes payable, and Level 2 to measure the fair value of its Senior notes. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The three levels of the hierarchy are as follows:
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Related Party Transactions |
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Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In November 2017, the Company entered into a Purchase and Sale Agreement (the “Oceanside PSA”) with an entity (“Oceanside Seller”) managed by an affiliate of Paulson & Co., Inc. (“Paulson”), which provides for the purchase of certain real property from the Seller located in Oceanside, California for a proposed residential homebuilding development (the “St. Cloud Transaction”). The PSA provides for an overall purchase price of $22.8 million, including an aggregate deposit amount of $1.2 million (the “Deposit”), which Deposit was paid and became non-refundable in December 2017. The balance of the purchase price was paid in connection with closing of the St. Cloud Transaction in March 2018. WLH Recovery Acquisition LLC, which is affiliated with, and managed by affiliates of, Paulson, previously held over 5% of Parent’s outstanding Class A common stock, which stock was sold in its entirety in September 2017. One of the former members of Parent’s board of directors, whose term on the board expired as of May 24, 2018, had served as Portfolio Manager for the Paulson Real Estate Funds, which are affiliates of Paulson, and is a Partner in Paulson. The Company believes that the St. Cloud Transaction was on terms no less favorable than it would have agreed to with unrelated third parties. |
Income Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Since inception, the Company has operated solely within the United States. The Company’s effective income tax rate was 22.0% and 21.5% and 31.6% and 29.9% for the three and nine months ended September 30, 2018 and 2017, respectively. The significant drivers of the effective tax rate are allocation of income to noncontrolling interests for the three and nine months September 30, 2018, and noncontrolling interests and the domestic activities deduction for the three and nine months ended September 30, 2017. Management assesses its deferred tax assets to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company's assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At September 30, 2018, the Company had no valuation allowance recorded. At September 30, 2018, the Company had no remaining federal net operating loss carryforwards and $49.9 million of remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2031. In addition, as of September 30, 2018, the Company had unused federal and state built-in losses of $48.5 million and $7.5 million, respectively. The five year testing period for built-in losses expired in 2017 and the unused built-in loss carryforwards begin to expire in 2032. The Company had AMT credit carryovers of $1.4 million at September 30, 2018, which if not previously utilized are allowable as refundable credits under the Tax Cuts and Job Act through 2022. In accordance with Securities & Exchange Commission Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), based on the information available as of December 31, 2017, the Company recorded a charge to income taxes of $23.1 million as a result of the Tax Cuts and Job Act ("Tax Act") due to the reduction of the Company's deferred tax assets as a result of the lower tax rate. FASB ASC Topic 740, Income Taxes (“ASC 740”), prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered more likely than not to be sustained upon examination by taxing authorities. The Company records interest and penalties related to uncertain tax positions as a component of the provision for income taxes. The Company has no unrecognized tax benefits. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is subject to U.S. federal income tax examination for calendar tax years ended 2012 and forward. The Company is subject to various state income tax examinations for calendar tax years ended 2008 and forward. The Company is currently under examination by the Internal Revenue Service for the 2013 and 2014 tax years and under examination by California for the 2014 tax year. |
Income Per Common Share |
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Income Per Common Share | Income Per Common Share Basic and diluted income per common share for the three and nine months ended September 30, 2018 and 2017 were calculated as follows (in thousands, except number of shares and per share amounts):
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Stock Based Compensation |
9 Months Ended |
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Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation We account for share-based awards in accordance with ASC Topic 718, Compensation-Stock Compensation, which requires the fair value of stock-based compensation awards to be amortized as an expense over the vesting period. Stock-based compensation awards are valued at the fair value on the date of grant. Compensation expense for awards with performance based conditions is recognized over the vesting period once achievement of the performance condition is deemed probable. During the three and nine months ended September 30, 2018, the Company granted 1,065 and 242,638 shares of time-based restricted stock, respectively. During the three and nine months ended September 30, 2018, the Company granted no shares and 426,075 shares, respectively, of performance based restricted stock. On the Consolidated Balance Sheets and Statement of Equity, the Company considers unvested shares of restricted stock to be issued, but not outstanding. The Company recorded total stock based compensation expense during the three and nine months ended September 30, 2018 and 2017 of $2.4 million and $7.6 million and $3.1 million and $6.3 million, respectively. Performance-Based Restricted Stock Awards With respect to the performance based restricted stock awards granted to certain employees during the nine months ended September 30, 2018, the actual number of such shares of restricted stock that will be earned (the “Earned Shares”) is subject to the Company’s achievement of pre-established performance targets as of the end of the 2018 fiscal year. Of the aforementioned awards, 373,432 of such Earned Shares vest in three equal annual installments on March 1st of each of 2019, 2020 and 2021, subject to each grantee’s continued service through each vesting date. The remaining 52,643 of such Earned Shares vest in three equal annual installments on each anniversary of the grant date, subject to each grantee’s continued service through each vesting date. Based on the probability assessment as of September 30, 2018, management determined that the currently available data was not sufficient to support that the achievement of the performance targets is probable, and as such, no compensation expense has been recognized for these awards to date. Time-Based Restricted Stock Awards With respect to the restricted stock awards granted to certain employees during the three months ended September 30, 2018, 1,065 of such shares vest in two equal annual installments on each anniversary of the grant date, subject to the grantee’s continued service through each vesting date. With respect to the restricted stock awards granted to certain employees and non-employee directors during the nine months ended September 30, 2018, 116,484 of such shares vest in three equal annual installments on March 1st of each of 2019, 2020 and 2021, 4,767 of such shares vest in two equal annual installments on March 1st of each of 2019 and 2020, 26,321 of such shares vest in three equal annual installments on each anniversary of the grant date, 36,821 of such shares vest in two equal annual installments on each anniversary of the grant date, and 36,317 of such shares vest in one installment on the second anniversary of the grant date, in each case subject to each grantee’s continued service through each vesting date, and 21,928 of such shares vest in four equal quarterly installments on each three-month period beginning June 1st of 2018, subject to each grantee’s continued service on the board through each vesting date. |
Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies The Company’s commitments and contingent liabilities include the usual obligations incurred by real estate developers in the normal course of business. In the opinion of management, these matters will not have a material effect on the Company’s condensed consolidated financial position, results of operations or cash flows. The Company is a defendant in various lawsuits related to its normal business activities. We believe that the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of September 30, 2018, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized on our condensed consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings, and as appropriate, adjust them to reflect (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if no accrual had been made, could be material to our consolidated financial statements. The Company had outstanding performance and surety bonds of $250.1 million at September 30, 2018, related principally to its obligations for site improvements at various projects. The Company does not believe that draws upon these bonds, if any, will have a material effect on the Company’s financial position, results of operations or cash flows. As of September 30, 2018, the Company had $438.5 million of project commitments relating to the construction of projects. See Note 7 for additional information relating to the Company’s guarantee arrangements. In addition to the land bank agreement discussed below, the Company has entered into various purchase option agreements with third parties to acquire land. As of September 30, 2018, the Company has made non-refundable deposits of $113.1 million. The Company is under no obligation to purchase the land, but would forfeit remaining deposits if the land were not purchased. The total remaining purchase price under the option agreements is $957.8 million as of September 30, 2018. Land Banking Arrangements The Company enters into purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, thereby minimizing the use of funds from the Company’s available cash or other corporate financing sources and limiting the Company’s risk, the Company transfers the Company’s right in such purchase agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions and/or incur debt to finance the acquisition and development of the land. The entities grant the Company an option to acquire lots in staged takedowns. In consideration for this option, the Company makes a non-refundable deposit of 15% to 25% of the total purchase price. The Company is under no obligation to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to penalties if the lots were not purchased. The Company does not have legal title to these entities or their assets and has not guaranteed their liabilities. These land banking arrangements help the Company manage the financial and market risk associated with land holdings. As discussed above, with exception of the arrangement discussed below, these amounts are included in the total remaining purchase price mentioned above. The Company participated in one land banking arrangement during the nine months ended September 30, 2018, which was not a VIE in accordance with ASC 810, but which is consolidated in accordance with FASB ASC Topic 470, Debt (“ASC 470”). Under the provisions of ASC 470, the Company had determined it is economically compelled, based on certain factors, to purchase the land in the land banking arrangement. Therefore, the Company has recorded the remaining purchase price of the land of $209.8 million as of September 30, 2018, which was included in Real estate inventories not owned and Liabilities from inventories not owned in the accompanying balance sheet. Summary information with respect to the Company’s consolidated land banking arrangements is as follows as of the period presented (dollars in thousands):
Lease Obligations Lease obligations, as included in Accrued expenses on the consolidated balance sheets, were $16.4 million as of September 30, 2018 and $14.5 million as of December 31, 2017. The Company has non-cancelable operating leases primarily associated with office facilities, real estate and office equipment, in addition to one related sublease for an office facility. The determination of which discount rate to use when measuring the lease obligation was deemed a significant judgment. Lease cost, as included in general and administrative expense in our consolidated statements of operations for the respective periods, and additional information regarding lease terms are as follows (dollars in thousands):
The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2018 (in thousands).
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events No events have occurred subsequent to September 30, 2018, that would require recognition or disclosure in the Company’s financial statements. |
Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Operations | Operations William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), is primarily engaged in designing, constructing, marketing and selling single-family detached and attached homes in California, Arizona, Nevada, Colorado, Washington (under the Polygon Northwest brand), Oregon (under the Polygon Northwest brand) and Texas. |
Basis of Presentation | Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of September 30, 2018 and December 31, 2017 and revenues and expenses for the three and nine month periods ended September 30, 2018 and 2017. Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, accounting for variable interest entities, business combinations, and valuation of deferred tax assets. The current economic environment increases the uncertainty inherent in these estimates and assumptions. The condensed consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities ("VIEs") in which the Company is considered the primary beneficiary (see Note 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2017, which are included in our 2017 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report. Also, refer to the discussion under Revenue Recognition and Change in Accounting Principle below regarding the adoption of the new standard for revenue recognition. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (“ASU 2014-09” or “ASC 606”). Refer to Change in Accounting Principle below for further details regarding the adoption. Home Sales Prior to January 1, 2018, under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, "Revenue Recognition" ("ASC 605"), revenue was recorded when a sale was consummated, the buyer’s initial and continuing investments were adequate, any receivables were not subject to future subordination, and the usual risks and rewards of ownership had transferred to the buyer. Effective January 1, 2018, upon adoption of ASC 606, revenue is recorded upon the close of escrow, at which point home sales are considered in the scope of a contract. Accordingly, the Company does not record homebuilding revenue for performance obligations that are unsatisfied or partially unsatisfied. No revenue was recorded in the 2018 period that did not result from current period performance. Construction Services The Company accounted for construction management agreements using the Percentage of Completion Method in accordance with ASC 605 (prior to January 1, 2018) and ASC 606 (subsequent to January 1, 2018). Under ASC 605 and ASC 606, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. |
Real Estate Inventories | Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. During the three months ended September 30, 2018, the Company had three land parcel sales that resulted in a $1.9 million gain. During the nine months ended September 30, 2018, the Company had six land parcel sales that resulted in a $1.9 million gain. During the three and nine months ended September 30, 2017, the Company had one and two land parcel sales, respectively, that resulted in a negligible loss for both periods then ended. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on the operating division, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company continually assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. |
Construction Services | |
Financial Instruments | Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, receivables, and deposits. The Company typically places its cash and cash equivalents in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments, including letters of credit, with off-balance sheet risk in the normal course of business which exposes it to credit risks. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of September 30, 2018 and December 31, 2017. The Company monitors the cash balances in its operating accounts, however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. |
Deferred Loan Costs | Deferred Loan Costs Deferred loan costs represent debt issuance costs and are primarily amortized to interest incurred using the straight line method which approximates the effective interest method. |
Goodwill | Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill amounts are not amortized, but rather are analyzed for impairment at the reporting segment level. Goodwill is analyzed on an annual basis, or when indicators of impairment exist. We have determined that we have seven reporting segments, as discussed in Note 5, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. |
Intangibles | Intangibles Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. |
Income per common share | ncome per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares. |
Income Taxes | Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740, Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance is provided to reduce net deferred tax assets to an amount that is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. |
Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Warranty Liability | Changes in the Company’s warranty liability for the nine months ended September 30, 2018 and 2017, are as follows (in thousands):
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Schedule of Interest Activity | Interest activity for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands):
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Acquisition of RSI Communities (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Consideration Transferred as of Acquisition Date | A reconciliation of the consideration transferred as of the acquisition date is as follows:
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Summary of Preliminary Amounts for Acquired Assets and Liabilities Recorded at Fair Value | The following table summarizes the preliminary amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):
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Summary of Unaudited Pro Forma Amounts of Polygon Northwest Homes Acquisition | The following table presents unaudited pro forma amounts for the three and nine months ended September 30, 2018 and September 30, 2017 as if the RSI Acquisition, had been completed as of January 1, 2017 (amounts in thousands, except per share data):
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Investments in Unconsolidated Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unaudited Financials for Unconsolidated Joint Ventures | The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands):
The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Financial Information Relating to Operations | Segment financial information relating to the Company’s operations was as follows (in thousands):
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Schedule of Segment Homebuilding Assets |
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Real Estate Inventories (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Real Estate Inventories | Real estate inventories consist of the following (in thousands):
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Senior Notes, Secured, and Unsecured Indebtedness (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Senior notes, secured, and unsecured indebtedness consist of the following (in thousands):
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Schedule of Maturities of Notes Payable and Senior Notes | The issuance date, facility size, maturity date and interest rate of the joint ventures notes payable are listed in the table below as of September 30, 2018 (in millions):
(1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0%. (2) Loan bears interest at LIBOR +3.25%. (3) Loan bears interest at the greatest of the prime rate, federal funds effective rate +1.0%, or LIBOR +1.0%. (4) Loan bears interest at LIBOR +2.90%. (5) Loan bears interest at the prime rate +1.0%. As of September 30, 2018, the maturities of the Notes payable, 7% Senior Notes, 6% Senior Notes, and 5 7/8% Senior Notes are as follows (in thousands):
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Debt Instrument Redemption | On or after September 1, 2020, California Lyon may redeem all or a portion of the 6.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount on the redemption date) set forth below plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date, if redeemed during the 12-month period commencing on each of the dates as set forth below:
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Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (in thousands)
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Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2018 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2017 (in thousands)
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are as follows (in thousands):
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Income Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Income Per Common Share Calculation | Basic and diluted income per common share for the three and nine months ended September 30, 2018 and 2017 were calculated as follows (in thousands, except number of shares and per share amounts):
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Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Costs | Lease cost, as included in general and administrative expense in our consolidated statements of operations for the respective periods, and additional information regarding lease terms are as follows (dollars in thousands):
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Schedule of Future Minimum Rental Payments for Operating Leases | The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2018 (in thousands).
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Basis of Presentation and Significant Accounting Policies - Narrative (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
land_parcel
|
Sep. 30, 2017
USD ($)
land_parcel
|
Sep. 30, 2018
USD ($)
land_parcel
segment
|
Sep. 30, 2017
USD ($)
land_parcel
|
Dec. 31, 2017 |
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Significant Accounting Policies [Line Items] | |||||
Number of land parcels sold | land_parcel | 3 | 1 | 6 | 2 | |
Gain on land parcel sales | $ 1,900,000 | $ 1,900,000 | |||
Operating revenue | 534,704,000 | $ 490,339,000 | $ 1,427,524,000 | $ 1,171,885,000 | |
Number of reportable segments | segment | 7 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of sales price fee from construction management agreements | 300.00% | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of sales price fee from construction management agreements | 5.00% | ||||
Land | |||||
Significant Accounting Policies [Line Items] | |||||
Operating revenue | $ 1,900,000 |
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty liability, beginning of period | $ 13,643 | $ 14,173 |
Warranty provision during period (1) | 7,591 | 7,695 |
Warranty payments, net of insurance recoveries during period | (9,436) | (9,418) |
Warranty charges related to construction services projects | 30 | 120 |
Warranty liability, end of period | 11,828 | $ 12,570 |
RSI Communities | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty provision during period (1) | $ 600 |
Basis of Presentation and Significant Accounting Policies - Schedule of Interest Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||||
Interest incurred | $ 24,725 | $ 18,112 | $ 66,791 | $ 56,359 |
Less: Interest capitalized | 24,725 | 18,112 | 66,791 | 56,359 |
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 |
Cash paid for interest | $ 40,578 | $ 28,374 | $ 73,622 | $ 55,532 |
Acquisition of RSI Communities - Schedule of Reconciliation of Consideration Transferred as of Acquisition Date (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018 |
Mar. 09, 2018 |
Mar. 08, 2018 |
Sep. 30, 2017 |
|
RSI Communities | ||||
Business Acquisition [Line Items] | ||||
Net proceeds received from RSI inventory involved in land banking transactions | $ 194,131 | |||
Issuance of 6.00% Senior Notes due September 1, 2023 | (190,437) | |||
Cash on hand | 90,653 | |||
Total consideration transferred | $ 475,221 | |||
6% Senior Notes due September 1, 2023 | ||||
Business Acquisition [Line Items] | ||||
Stated interest rate | 6.00% | |||
6% Senior Notes due September 1, 2023 | Senior notes | ||||
Business Acquisition [Line Items] | ||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 8.50% |
Acquisition of RSI Communities - Summary of Preliminary Amounts for Acquired Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets Acquired | ||
Goodwill | $ 118,877 | $ 66,902 |
RSI Communities | ||
Assets Acquired | ||
Real estate inventories | 437 | |
Goodwill | 52 | |
Other | 7 | |
Total Assets | 495 | |
Liabilities Assumed | ||
Accounts payable | 9 | |
Accrued expenses | 8 | |
Notes payable | 2 | |
Total liabilities | 20 | |
Net assets acquired | $ 475 |
Acquisition of RSI Communities - Summary of Unaudited Pro Forma Amounts of RSI Communities Acquisition (Details) - RSI Communities - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Business Acquisition [Line Items] | ||||
Operating revenues | $ 534,704 | $ 526,652 | $ 1,467,959 | $ 1,232,343 |
Net income available to common stockholders | $ 26,558 | $ 28,177 | $ 57,143 | $ 35,867 |
Income per share - basic (in USD per share) | $ 0.70 | $ 0.76 | $ 1.51 | $ 0.97 |
Income per share - diluted (in USD per share) | $ 0.68 | $ 0.74 | $ 1.44 | $ 0.94 |
Variable Interest Entities and Noncontrolling Interests - Narrative (Details) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018
USD ($)
joint_venture
|
Dec. 31, 2017
USD ($)
joint_venture
|
|
Noncontrolling Interest [Line Items] | ||
Number of joint ventures | joint_venture | 21 | 13 |
Consolidated variable interest entities, assets | $ 461.5 | $ 244.7 |
Consolidated variable interest entities, liabilities | 217.1 | 124.5 |
Cash | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | 13.7 | 10.7 |
Real estate | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | $ 444.7 | $ 230.8 |
Investments in Unconsolidated Joint Ventures - Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 534,704 | $ 490,339 | $ 1,427,524 | $ 1,171,885 |
Cost of sales | (496,941) | (447,169) | (1,341,158) | (1,094,172) |
Operating income (loss) | 37,763 | 43,170 | 86,366 | 77,713 |
Unconsolidated joint venture income | 531 | 1,160 | 1,996 | 2,622 |
Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 3,975 | 5,368 | 11,863 | 13,830 |
Cost of sales | (2,974) | (2,781) | (7,901) | (7,936) |
Operating income (loss) | $ 1,001 | $ 2,587 | $ 3,962 | $ 5,894 |
Investments in Unconsolidated Joint Ventures - Financial Position (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
ASSETS | ||
Other assets | $ 40,748 | $ 21,164 |
Total assets | 2,944,048 | 2,061,104 |
LIABILITIES AND EQUITY | ||
Accounts payable | 94,904 | 58,799 |
Accrued expenses | 125,249 | 111,491 |
Total liabilities and equity | 2,944,048 | 2,061,104 |
Joint Ventures | ||
ASSETS | ||
Cash | 6,723 | 12,802 |
Loans held for sale | 24,183 | 17,106 |
Accounts receivable | 815 | 2,791 |
Other assets | 146 | 128 |
Total assets | 31,867 | 32,827 |
LIABILITIES AND EQUITY | ||
Accounts payable | 457 | 779 |
Accrued expenses | 1,331 | 1,532 |
Credit lines payable | 22,882 | 18,312 |
Other liabilities | 543 | 31 |
Members equity | 6,654 | 12,173 |
Total liabilities and equity | $ 31,867 | $ 32,827 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Additional operating segments during period | 1 |
Number of reportable segments | 7 |
Segment Information - Schedule of Segment Homebuilding Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Homebuilding assets: | ||
Total homebuilding assets | $ 2,944,048 | $ 2,061,104 |
Corporate | ||
Homebuilding assets: | ||
Total homebuilding assets | 234,915 | 323,013 |
California | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 987,598 | 631,649 |
Arizona | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 172,191 | 170,634 |
Nevada | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 205,859 | 211,202 |
Colorado | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 159,534 | 149,183 |
Washington (2) | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 332,639 | 286,442 |
Oregon | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | 408,814 | 288,981 |
Texas | Reportable Operating Segments | ||
Homebuilding assets: | ||
Total homebuilding assets | $ 232,679 | $ 0 |
Real Estate Inventories - Summary of Real Estate Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Real estate inventories: | ||
Land deposits | $ 113,142 | $ 51,833 |
Land, land under development and finished lots | 596,594 | 495,114 |
Finished lots | 643,675 | 409,296 |
Homes completed and under construction | 987,121 | 646,198 |
Model homes | 96,918 | 97,409 |
Total | 2,437,450 | 1,699,850 |
Not owned | $ 209,819 | $ 0 |
Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Mar. 09, 2018 |
Mar. 08, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jan. 31, 2017 |
Aug. 11, 2014 |
Mar. 31, 2014 |
---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||
Total notes payable | $ 384,811 | $ 94,515 | ||||||
Total debt | 1,516,249 | 1,030,184 | ||||||
5 3/4% Senior Notes due April 15, 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | $ 149,362 | ||||||
Stated interest rate | 5.75% | 5.75% | ||||||
7% Senior Notes due August 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 347,273 | $ 346,740 | ||||||
Stated interest rate | 7.00% | 7.00% | ||||||
6% Senior Notes due September 1, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 343,568 | $ 0 | ||||||
Stated interest rate | 6.00% | |||||||
5 7/8% Senior Notes due January 31, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 440,597 | $ 439,567 | ||||||
Stated interest rate | 5.875% | 5.875% | ||||||
Seller financing | ||||||||
Debt Instrument [Line Items] | ||||||||
Total notes payable | $ 0 | $ 589 | ||||||
Construction notes payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Total notes payable | 1,426 | 0 | ||||||
Joint venture notes payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Total notes payable | 163,385 | 93,926 | ||||||
Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | 1,131,438 | 935,669 | ||||||
Senior notes | 5 3/4% Senior Notes due April 15, 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | $ 149,362 | ||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | |||||
Senior notes | 7% Senior Notes due August 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 347,273 | $ 346,740 | ||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | |||||
Senior notes | 6% Senior Notes due September 1, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 343,568 | $ 0 | ||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 8.50% | ||||
Senior notes | 5 7/8% Senior Notes due January 31, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 440,597 | $ 439,567 | ||||||
Stated interest rate | 5.875% | 5.875% |
Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Notes Payable, Senior Unsecured Facility, 5 3/4% and 8 1/2% Senior Notes (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 1,516,249 | $ 1,030,184 |
Senior Notes and Subordinated Amortizing Notes | ||
Debt Instrument [Line Items] | ||
Remaining in 2018 | 1,426 | |
2019 | 37,397 | |
2020 | 7,288 | |
2021 | 338,699 | |
2022 | 350,000 | |
Thereafter | 800,000 | |
Total debt | $ 1,534,810 |
Senior Notes, Secured, and Unsecured Indebtedness - Revolving Line of Credit - Narrative (Details) - USD ($) |
9 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Jan. 01, 2019 |
Dec. 31, 2018 |
May 21, 2018 |
Mar. 31, 2018 |
Mar. 30, 2018 |
Mar. 09, 2018 |
Mar. 08, 2018 |
Dec. 31, 2017 |
Dec. 30, 2017 |
Nov. 28, 2017 |
Jul. 01, 2017 |
Jun. 29, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 30, 2016 |
Jul. 01, 2016 |
Mar. 31, 2014 |
|
Debt Instrument [Line Items] | |||||||||||||||||||
Notes payable | $ 384,811,000 | $ 94,515,000 | |||||||||||||||||
6% Senior Notes due September 1, 2023 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Stated interest rate | 6.00% | ||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Stated interest rate | 5.75% | 5.75% | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 170,000,000.0 | ||||||||||||||||||
Line of Credit Facility, Increase in Borrowing Capacity | $ 25,000,000.0 | ||||||||||||||||||
Revolving Credit Facility | Amended Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 130,000,000.0 | ||||||||||||||||||
Commitment fee percentage | 50.00% | ||||||||||||||||||
Revolving Credit Facility | New Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 325,000,000.0 | ||||||||||||||||||
Additional capacity under accordion feature | $ 500,000,000.0 | ||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 65.00% | ||||||||||||||||||
Commitment fee percentage | 0.50% | ||||||||||||||||||
Effective rate | 5.50% | ||||||||||||||||||
Revolving Credit Facility | Second Amended Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 145,000,000.0 | ||||||||||||||||||
Additional capacity under accordion feature | 200,000,000.0 | ||||||||||||||||||
Debt Instrument, Covenant, Tangible Net Worth, Minimum | $ 556,400,000.0 | ||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 60.00% | 60.00% | 62.50% | 60.00% | 62.50% | 62.50% | 65.00% | ||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 1.50 | ||||||||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum Liquidity Used in Calculation | $ 50,000,000.0 | ||||||||||||||||||
Revolving Credit Facility | Amendment to Second Amended Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 70.00% | 60.00% | |||||||||||||||||
Letter of Credit | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Outstanding letter of credit | 7,900,000 | $ 7,800,000 | |||||||||||||||||
Letter of Credit | Amended Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Outstanding letter of credit | $ 7,900,000 | $ 7,800,000 | |||||||||||||||||
Letter of Credit | New Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Minimum borrowing capacity | $ 50,000,000.0 | ||||||||||||||||||
Letter of Credit | Second Amended Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Minimum borrowing capacity | $ 50,000,000.0 | ||||||||||||||||||
Senior Notes | 6% Senior Notes due September 1, 2023 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Stated interest rate | 6.00% | 8.50% | 6.00% | 6.00% | |||||||||||||||
Senior Notes | 5 3/4% Senior Notes due April 15, 2019 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | ||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Notes payable | $ 220,000,000 | $ 0 | |||||||||||||||||
Subsequent Event | Revolving Credit Facility | New Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 60.00% | 60.00% |
Senior Notes, Secured, and Unsecured Indebtedness - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
May 31, 2017 |
Jan. 31, 2015 |
Aug. 31, 2014 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Jan. 01, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Mar. 30, 2018 |
Mar. 09, 2018 |
Mar. 08, 2018 |
Dec. 31, 2017 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Jun. 29, 2017 |
Jan. 31, 2017 |
Dec. 31, 2016 |
Dec. 30, 2016 |
Aug. 11, 2014 |
Mar. 31, 2014 |
|
Debt Instrument [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (21,828,000) | |||||||||||||||||||
Deferred loan costs | $ 16,300,000 | 16,300,000 | 16,300,000 | ||||||||||||||||||||
Notes payable | $ 384,811,000 | $ 384,811,000 | $ 384,811,000 | $ 94,515,000 | |||||||||||||||||||
8 1/2% Senior Notes due November 15, 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | 8.50% | |||||||||||||||||||
7% Senior Notes due August 15, 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | 7.00% | |||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||||||||||
5 7/8% Senior Notes due January 31, 2025 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | 5.875% | |||||||||||||||||||
6% Senior Notes due September 1, 2023 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||
Senior notes | 8 1/2% Senior Notes due November 15, 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||
Senior notes | 7% Senior Notes due August 15, 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||||||||||||
Percent exchanged | 100.00% | ||||||||||||||||||||||
Unamortized premium | $ 600,000 | $ 600,000 | $ 600,000 | ||||||||||||||||||||
Deferred loan costs | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | ||||||||||||||||||||
Senior notes | 5 3/4% Senior Notes due April 15, 2019 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||||||||
Percent exchanged | 100.00% | ||||||||||||||||||||||
Senior notes | 5 7/8% Senior Notes due January 31, 2025 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | 5.875% | |||||||||||||||||||
Percent exchanged | 100.00% | ||||||||||||||||||||||
Deferred loan costs | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | ||||||||||||||||||||
Senior notes | 6% Senior Notes due September 1, 2023 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Deferred loan costs | $ 6,400,000 | $ 6,400,000 | $ 6,400,000 | ||||||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 8.50% | 6.00% | 8.50% | 6.00% | 6.00% | ||||||||||||||||
Percent exchanged | 100.00% | ||||||||||||||||||||||
Seller financing | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Notes payable | $ 0 | $ 0 | $ 0 | $ 589,000 | |||||||||||||||||||
Seller financing | Note Payable Maturing in June 2018 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | ||||||||||||||||||||
Construction notes payable | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Notes payable | $ 1,426,000 | $ 1,426,000 | $ 1,426,000 | $ 0 | |||||||||||||||||||
Revolving Credit Facility | Second Amended Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Instrument, Covenant, Tangible Net Worth, Minimum | $ 556,400,000.0 | $ 556,400,000.0 | $ 556,400,000.0 | ||||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 60.00% | 60.00% | 60.00% | 62.50% | 60.00% | 62.50% | 62.50% | 65.00% | |||||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 1.50 | 1.50 | 1.50 | ||||||||||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum Liquidity Used in Calculation | $ 50,000,000.0 | $ 50,000,000.0 | $ 50,000,000.0 | ||||||||||||||||||||
Revolving Credit Facility | New Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 65.00% | 65.00% | 65.00% | ||||||||||||||||||||
Revolving Credit Facility | Amendment to Second Amended Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 70.00% | 60.00% | |||||||||||||||||||||
Subsequent Event | Revolving Credit Facility | New Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 60.00% | 60.00% |
Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Total notes payable | $ 384,811 | $ 94,515 |
Construction Loans | ||
Debt Instrument [Line Items] | ||
Total notes payable | 289,000 | |
Outstanding | 163,400 | |
Construction Loans | May 2018, Maturity May 2021 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | 128,000 | |
Outstanding | $ 72,300 | |
Current Rate | 5.50% | |
Construction Loans | May 2018, Maturity June 2020 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 13,300 | |
Outstanding | $ 7,300 | |
Current Rate | 5.14% | |
Construction Loans | July 2017 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 66,200 | |
Outstanding | $ 46,400 | |
Current Rate | 5.25% | |
Construction Loans | January 2016 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 35,000 | |
Outstanding | $ 23,400 | |
Current Rate | 5.49% | |
Construction Loans | November 2015 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 42,500 | |
Outstanding | $ 14,000 | |
Current Rate | 6.25% | |
Construction Loans | March 2014 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 4,000 | |
Outstanding | $ 0 | |
Current Rate | 5.07% |
Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Footnote) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (21,828) |
Construction Notes Payable, March 2014, August 2015, November 2015, March 2016 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | |||
Construction Notes Payable, March 2014, August 2015, November 2015, March 2016 | Prime rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Construction Notes Payable, January 2016 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
May 2018, Maturity May 2021 Construction Notes Payable | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
May 2018, Maturity May 2021 Construction Notes Payable | Federal Funds Effective Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
May 2018, Maturity June 2020 Construction Notes Payable | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.90% |
Senior Notes, Secured, and Unsecured Indebtedness - Subordinated Amortizing Notes - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 1,516,249 | $ 1,030,184 |
Senior Notes, Secured, and Unsecured Indebtedness - Senior Notes - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 09, 2018 |
Jan. 31, 2017 |
Sep. 15, 2015 |
Aug. 11, 2014 |
Mar. 31, 2014 |
Sep. 30, 2018 |
May 31, 2017 |
Jan. 31, 2016 |
Jan. 31, 2015 |
Aug. 31, 2014 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Mar. 08, 2018 |
|
Debt Instrument [Line Items] | ||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ 0 | $ (21,828,000) | ||||||||||||
Deferred loan costs | $ 16,300,000 | $ 16,300,000 | $ 16,300,000 | |||||||||||||
6% Senior Notes due September 1, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | |||||||||||||
7% Senior Notes due August 15, 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||||||
5 3/4% Senior Notes due April 15, 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||
5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | 5.875% | ||||||||||||
8 1/2% Senior Notes due November 15, 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | 8.50% | ||||||||||||
Senior notes | 6% Senior Notes due September 1, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 8.50% | 6.00% | 8.50% | 6.00% | |||||||||
Principal amount | $ 350,000,000 | |||||||||||||||
Percentage of principal amount | 100.00% | |||||||||||||||
Percent exchanged | 100.00% | |||||||||||||||
Senior notes | 7% Senior Notes due August 15, 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||||||||||
Principal amount | $ 50,000,000.0 | $ 300,000,000 | ||||||||||||||
Percentage of principal amount | 102.00% | 100.00% | ||||||||||||||
Percent exchanged | 100.00% | |||||||||||||||
Deferred loan costs | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | |||||||||||||
Net proceeds from issuance of debt | $ 50,500,000 | |||||||||||||||
Expected percent exchanged | 100.00% | |||||||||||||||
Outstanding amount | 350,000,000 | 350,000,000 | 350,000,000 | |||||||||||||
Unamortized premium | $ 600,000 | $ 600,000 | $ 600,000 | |||||||||||||
Senior notes | 5 3/4% Senior Notes due April 15, 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||
Principal amount | $ 150,000,000 | |||||||||||||||
Percentage of principal amount | 100.00% | |||||||||||||||
Percent exchanged | 100.00% | |||||||||||||||
Senior notes | 5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | 5.875% | ||||||||||||
Principal amount | $ 450,000,000 | |||||||||||||||
Percentage of principal amount | 99.215% | |||||||||||||||
Percent exchanged | 100.00% | |||||||||||||||
Deferred loan costs | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | |||||||||||||
Debt Instrument, Unamortized Discount | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | |||||||||||||
Senior notes | 8 1/2% Senior Notes due November 15, 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | |||||||||||||
Debt Instrument, Repurchase Amount | $ 395,600,000 | |||||||||||||||
Outstanding amount | $ 425,000,000 | $ 425,000,000 | $ 425,000,000 | |||||||||||||
California Lyon | Senior notes | 6% Senior Notes due September 1, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes Redemption Price Percentage | 100.00% | |||||||||||||||
Redemption price, percentage | 106.00% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||||||||||||||
Minimum | Senior notes | 6% Senior Notes due September 1, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption Notice Period | 30 days | |||||||||||||||
Maximum | Senior notes | 6% Senior Notes due September 1, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption Notice Period | 60 days |
Senior Notes, Secured, and Unsecured Indebtedness - Summary of Senior Notes Redemption Prices Percentage (Details) - California Lyon - Senior notes - 6% Senior Notes due September 1, 2023 |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | ||
Redemption price, percentage | 106.00% | |
September 1, 2020 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 103.00% | |
September 1, 2021 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.50% | |
September 1, 2022 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% |
Senior Notes, Secured, and Unsecured Indebtedness - Guarantor and Non-Guarantor Financial Statements - Narrative (Details) |
Sep. 30, 2018 |
---|---|
Parent | |
Debt Instrument [Line Items] | |
Ownership percentage | 100.00% |
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
ASSETS | ||||
Cash and cash equivalents | $ 50,782 | $ 182,710 | $ 43,604 | $ 42,612 |
Receivables | 10,561 | 10,223 | ||
Escrow proceeds receivable | 370 | 3,319 | ||
Real estate inventories | 2,437,450 | 1,699,850 | ||
Not owned | 209,819 | 0 | ||
Investment in unconsolidated joint ventures | 5,109 | 7,867 | ||
Goodwill | 118,877 | 66,902 | ||
Intangibles, net | 6,700 | 6,700 | ||
Deferred income taxes, net | 48,279 | 47,915 | ||
Lease right-of-use assets | 15,353 | 14,454 | ||
Other assets, net | 40,748 | 21,164 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,944,048 | 2,061,104 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 94,904 | 58,799 | ||
Accrued expenses | 125,249 | 111,491 | ||
Liabilities from inventories not owned | 209,819 | 0 | ||
Notes payable | 384,811 | 94,515 | ||
Total debt | 1,516,249 | 1,030,184 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,946,221 | 1,200,474 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 829,218 | 780,472 | ||
Noncontrolling interests | 168,609 | 80,158 | ||
Total liabilities and equity | 2,944,048 | 2,061,104 | ||
5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | $ 0 | $ 149,362 | ||
Equity | ||||
Stated interest rate | 5.75% | 5.75% | ||
7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | $ 347,273 | $ 346,740 | ||
Equity | ||||
Stated interest rate | 7.00% | 7.00% | ||
6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | $ 343,568 | $ 0 | ||
Equity | ||||
Stated interest rate | 6.00% | |||
5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | $ 440,597 | $ 439,567 | ||
Equity | ||||
Stated interest rate | 5.875% | 5.875% | ||
Reporting Entities | Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | $ 924 | $ 156 | (328) | 272 |
Receivables | 3,966 | 2,252 | ||
Escrow proceeds receivable | (11) | 1,725 | ||
Real estate inventories | 1,138,490 | 630,384 | ||
Not owned | 209,819 | |||
Investment in unconsolidated joint ventures | 150 | 150 | ||
Goodwill | 104,668 | 52,693 | ||
Intangibles, net | 6,700 | 6,700 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 11,709 | 2,504 | ||
Investments in subsidiaries | (980,772) | (494,201) | ||
Intercompany receivables | 281,709 | 269,831 | ||
Total assets | 777,352 | 472,194 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 21,998 | 13,007 | ||
Accrued expenses | 28,954 | 2,988 | ||
Liabilities from inventories not owned | 209,819 | |||
Notes payable | 1,426 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 262,197 | 15,995 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 515,155 | 456,199 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 777,352 | 472,194 | ||
Reporting Entities | Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Guarantor Subsidiaries | 7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | Guarantor Subsidiaries | 6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Guarantor Subsidiaries | 5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 13,769 | 11,120 | 9,205 | 6,136 |
Receivables | 3,305 | 3,324 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 455,877 | 238,459 | ||
Not owned | 0 | |||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 495 | 493 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 473,446 | 253,396 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 12,781 | 5,717 | ||
Accrued expenses | 111 | 96 | ||
Liabilities from inventories not owned | 0 | |||
Notes payable | 163,385 | 93,926 | ||
Intercompany payables | 110,684 | 90,043 | ||
Total liabilities | 286,961 | 189,782 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 17,876 | (16,544) | ||
Noncontrolling interests | 168,609 | 80,158 | ||
Total liabilities and equity | 473,446 | 253,396 | ||
Reporting Entities | Non-Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Non-Guarantor Subsidiaries | 7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | Non-Guarantor Subsidiaries | 6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Non-Guarantor Subsidiaries | 5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | Delaware Lyon | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Not owned | 0 | |||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | 829,218 | 780,472 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 829,218 | 780,472 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Liabilities from inventories not owned | 0 | |||
Notes payable | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 829,218 | 780,472 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 829,218 | 780,472 | ||
Reporting Entities | Delaware Lyon | 5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Delaware Lyon | 7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | Delaware Lyon | 6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Reporting Entities | Delaware Lyon | 5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Reporting Entities | California Lyon | ||||
ASSETS | ||||
Cash and cash equivalents | 36,089 | 171,434 | 34,727 | 36,204 |
Receivables | 3,290 | 4,647 | ||
Escrow proceeds receivable | 381 | 1,594 | ||
Real estate inventories | 843,083 | 831,007 | ||
Not owned | 0 | |||
Investment in unconsolidated joint ventures | 4,959 | 7,717 | ||
Goodwill | 14,209 | 14,209 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 48,279 | 47,915 | ||
Lease right-of-use assets | 15,353 | 14,454 | ||
Other assets, net | 28,544 | 18,167 | ||
Investments in subsidiaries | 17,876 | (16,544) | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 1,012,063 | 1,094,600 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 60,125 | 40,075 | ||
Accrued expenses | 96,184 | 108,407 | ||
Liabilities from inventories not owned | 0 | |||
Notes payable | 220,000 | 589 | ||
Intercompany payables | 171,025 | 179,788 | ||
Total liabilities | 1,678,772 | 1,264,528 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (666,709) | (169,928) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 1,012,063 | 1,094,600 | ||
Reporting Entities | California Lyon | 5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 149,362 | |||
Reporting Entities | California Lyon | 7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 347,273 | 346,740 | ||
Reporting Entities | California Lyon | 6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 343,568 | |||
Reporting Entities | California Lyon | 5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 440,597 | 439,567 | ||
Consolidation, Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Not owned | 0 | |||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | 133,678 | (269,727) | ||
Intercompany receivables | (281,709) | (269,831) | ||
Total assets | (148,031) | (539,558) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Liabilities from inventories not owned | 0 | |||
Notes payable | 0 | 0 | ||
Intercompany payables | (281,709) | (269,831) | ||
Total liabilities | (281,709) | (269,831) | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 133,678 | (269,727) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | (148,031) | (539,558) | ||
Consolidation, Eliminations | 5 3/4% Senior Notes due April 15, 2019 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Consolidation, Eliminations | 7% Senior Notes due August 15, 2022 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | 0 | ||
Consolidation, Eliminations | 6% Senior Notes due September 1, 2023 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | 0 | |||
Consolidation, Eliminations | 5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Total debt | $ 0 | $ 0 |
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Operations (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Operating revenue | ||||
Sales | $ 534,704,000 | $ 490,339,000 | $ 1,427,524,000 | $ 1,171,885,000 |
Operating costs | ||||
Sales and marketing | (28,879,000) | (21,935,000) | (80,420,000) | (57,924,000) |
General and administrative | (30,039,000) | (22,951,000) | (83,067,000) | (61,447,000) |
Transaction expenses | 0 | 0 | (3,907,000) | 0 |
Other | 591,000 | 548,000 | 1,510,000 | 1,548,000 |
Total operating costs | (496,941,000) | (447,169,000) | (1,341,158,000) | (1,094,172,000) |
Income from subsidiaries | 0 | 0 | 0 | 0 |
Operating income (loss) | 37,763,000 | 43,170,000 | 86,366,000 | 77,713,000 |
Equity in income of unconsolidated joint ventures | 531,000 | 1,160,000 | 1,996,000 | 2,622,000 |
Other income (expense), net | 2,510,000 | (365,000) | 2,856,000 | (12,000) |
Income before extinguishment of debt | 40,804,000 | 43,965,000 | 91,218,000 | 80,323,000 |
Loss on extinguishment of debt | 0 | 0 | 0 | (21,828,000) |
Income (loss) before provision for income taxes | 40,804,000 | 43,965,000 | 91,218,000 | 58,495,000 |
Provision for income taxes | (8,990,000) | (13,905,000) | (19,580,000) | (17,480,000) |
Net income (loss) | 31,814,000 | 30,060,000 | 71,638,000 | 41,015,000 |
Less: Net income attributable to noncontrolling interests | (5,256,000) | (2,642,000) | (14,297,000) | (4,643,000) |
Net income available to common stockholders | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Reporting Entities | Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 305,305,000 | 218,033,000 | 806,304,000 | 535,828,000 |
Operating costs | ||||
Sales and marketing | (17,012,000) | (11,521,000) | (45,458,000) | (29,241,000) |
General and administrative | (8,100,000) | (3,780,000) | (23,258,000) | (12,161,000) |
Transaction expenses | 0 | |||
Other | 0 | (86,000) | (84,000) | (232,000) |
Total operating costs | (278,639,000) | (196,399,000) | (738,735,000) | (486,907,000) |
Income from subsidiaries | 0 | 0 | 0 | 0 |
Operating income (loss) | 26,666,000 | 21,634,000 | 67,569,000 | 48,921,000 |
Equity in income of unconsolidated joint ventures | 368,000 | 341,000 | 869,000 | 879,000 |
Other income (expense), net | 1,323,000 | (4,000) | 1,374,000 | (10,000) |
Income before extinguishment of debt | 49,790,000 | |||
Loss on extinguishment of debt | 0 | |||
Income (loss) before provision for income taxes | 28,357,000 | 21,971,000 | 69,812,000 | 49,790,000 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 28,357,000 | 21,971,000 | 69,812,000 | 49,790,000 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to common stockholders | 28,357,000 | 21,971,000 | 69,812,000 | 49,790,000 |
Reporting Entities | Non-Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 68,549,000 | 60,954,000 | 175,047,000 | 130,957,000 |
Operating costs | ||||
Sales and marketing | (3,713,000) | (2,510,000) | (10,725,000) | (7,204,000) |
General and administrative | (4,000) | 0 | (6,000) | (1,000) |
Transaction expenses | 0 | |||
Other | 0 | (1,000) | (30,000) | (6,000) |
Total operating costs | (59,450,000) | (55,734,000) | (153,773,000) | (122,753,000) |
Income from subsidiaries | 0 | 0 | 0 | 0 |
Operating income (loss) | 9,099,000 | 5,220,000 | 21,274,000 | 8,204,000 |
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | 0 |
Other income (expense), net | 385,000 | (408,000) | (341,000) | (1,074,000) |
Income before extinguishment of debt | 7,130,000 | |||
Loss on extinguishment of debt | 0 | |||
Income (loss) before provision for income taxes | 9,484,000 | 4,812,000 | 20,933,000 | 7,130,000 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 9,484,000 | 4,812,000 | 20,933,000 | 7,130,000 |
Less: Net income attributable to noncontrolling interests | (5,256,000) | (2,642,000) | (14,297,000) | (4,643,000) |
Net income available to common stockholders | 4,228,000 | 2,170,000 | 6,636,000 | 2,487,000 |
Reporting Entities | Delaware Lyon | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Sales and marketing | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Transaction expenses | 0 | |||
Other | 0 | 0 | 0 | 0 |
Total operating costs | 0 | 0 | 0 | 0 |
Income from subsidiaries | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Operating income (loss) | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income before extinguishment of debt | 36,372,000 | |||
Loss on extinguishment of debt | 0 | |||
Income (loss) before provision for income taxes | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to common stockholders | 26,558,000 | 27,418,000 | 57,341,000 | 36,372,000 |
Reporting Entities | California Lyon | ||||
Operating revenue | ||||
Sales | 158,669,000 | 209,453,000 | 440,613,000 | 501,599,000 |
Operating costs | ||||
Sales and marketing | (8,154,000) | (7,904,000) | (24,237,000) | (21,479,000) |
General and administrative | (21,935,000) | (19,171,000) | (59,803,000) | (49,285,000) |
Transaction expenses | (3,907,000) | |||
Other | 591,000 | 635,000 | 1,624,000 | 1,786,000 |
Total operating costs | (156,671,000) | (193,137,000) | (443,090,000) | (481,011,000) |
Income from subsidiaries | 8,682,000 | 6,162,000 | 22,304,000 | 13,328,000 |
Operating income (loss) | 10,680,000 | 22,478,000 | 19,827,000 | 33,916,000 |
Equity in income of unconsolidated joint ventures | 163,000 | 819,000 | 1,127,000 | 1,743,000 |
Other income (expense), net | 802,000 | 47,000 | 1,823,000 | 1,072,000 |
Income before extinguishment of debt | 36,731,000 | |||
Loss on extinguishment of debt | (21,828,000) | |||
Income (loss) before provision for income taxes | 11,645,000 | 23,344,000 | 22,777,000 | 14,903,000 |
Provision for income taxes | (8,990,000) | (13,905,000) | (19,580,000) | (17,480,000) |
Net income (loss) | 2,655,000 | 9,439,000 | 3,197,000 | (2,577,000) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to common stockholders | 2,655,000 | 9,439,000 | 3,197,000 | (2,577,000) |
Consolidation, Eliminations | ||||
Operating revenue | ||||
Sales | 2,181,000 | 1,899,000 | 5,560,000 | 3,501,000 |
Operating costs | ||||
Sales and marketing | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Transaction expenses | 0 | |||
Other | 0 | 0 | 0 | 0 |
Total operating costs | (2,181,000) | (1,899,000) | (5,560,000) | (3,501,000) |
Income from subsidiaries | (35,240,000) | (33,580,000) | (79,645,000) | (49,700,000) |
Operating income (loss) | (35,240,000) | (33,580,000) | (79,645,000) | (49,700,000) |
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income before extinguishment of debt | (49,700,000) | |||
Loss on extinguishment of debt | 0 | |||
Income (loss) before provision for income taxes | (35,240,000) | (33,580,000) | (79,645,000) | (49,700,000) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (35,240,000) | (33,580,000) | (79,645,000) | (49,700,000) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to common stockholders | (35,240,000) | (33,580,000) | (79,645,000) | (49,700,000) |
Home sales | ||||
Operating revenue | ||||
Sales | 533,514,000 | 490,304,000 | 1,424,331,000 | 1,171,791,000 |
Operating costs | ||||
Cost of goods and services sold | (436,311,000) | (401,700,000) | (1,169,191,000) | (973,212,000) |
Home sales | Reporting Entities | Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 304,115,000 | 218,033,000 | 803,111,000 | 535,828,000 |
Operating costs | ||||
Cost of goods and services sold | (252,406,000) | (181,184,000) | (667,040,000) | (445,737,000) |
Home sales | Reporting Entities | Non-Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 68,549,000 | 60,954,000 | 175,047,000 | 130,957,000 |
Operating costs | ||||
Cost of goods and services sold | (55,733,000) | (53,225,000) | (143,072,000) | (115,554,000) |
Home sales | Reporting Entities | Delaware Lyon | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Home sales | Reporting Entities | California Lyon | ||||
Operating revenue | ||||
Sales | 160,850,000 | 211,317,000 | 446,173,000 | 505,006,000 |
Operating costs | ||||
Cost of goods and services sold | (125,991,000) | (165,392,000) | (353,519,000) | (408,420,000) |
Home sales | Consolidation, Eliminations | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Cost of goods and services sold | (2,181,000) | (1,899,000) | (5,560,000) | (3,501,000) |
Construction services | ||||
Operating revenue | ||||
Sales | 1,190,000 | 35,000 | 3,193,000 | 94,000 |
Operating costs | ||||
Cost of goods and services sold | (1,121,000) | (35,000) | (3,063,000) | (41,000) |
Construction services | Reporting Entities | Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 1,190,000 | 0 | 3,193,000 | 0 |
Operating costs | ||||
Cost of goods and services sold | (1,121,000) | 0 | (3,063,000) | 0 |
Construction services | Reporting Entities | Non-Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Construction services | Reporting Entities | Delaware Lyon | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Construction services | Reporting Entities | California Lyon | ||||
Operating revenue | ||||
Sales | 0 | 35,000 | 0 | 94,000 |
Operating costs | ||||
Cost of goods and services sold | 0 | (35,000) | 0 | (41,000) |
Construction services | Consolidation, Eliminations | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Operating costs | ||||
Cost of goods and services sold | 0 | 0 | 0 | 0 |
Management fees | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Management fees | Reporting Entities | Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Management fees | Reporting Entities | Non-Guarantor Subsidiaries | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Management fees | Reporting Entities | Delaware Lyon | ||||
Operating revenue | ||||
Sales | 0 | 0 | 0 | 0 |
Management fees | Reporting Entities | California Lyon | ||||
Operating revenue | ||||
Sales | (2,181,000) | (1,899,000) | (5,560,000) | (3,501,000) |
Management fees | Consolidation, Eliminations | ||||
Operating revenue | ||||
Sales | $ 2,181,000 | $ 1,899,000 | $ 5,560,000 | $ 3,501,000 |
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Operating activities | ||
Net cash (used in) provided by operating activities | $ (184,996) | $ (22,990) |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | (475,221) | 0 |
Purchases of property and equipment | (7,500) | (2,416) |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | (482,721) | (2,416) |
Financing activities | ||
Proceeds from borrowings on notes payable | 151,551 | 105,109 |
Principal payments on notes payable | (82,971) | (101,400) |
Proceeds from borrowings on Revolver | 407,446 | 275,000 |
Payments on Revolver | (187,446) | (254,000) |
Principal payments on subordinated amortizing notes | 0 | (5,606) |
Payment of deferred loan costs | (10,757) | (9,794) |
Shares remitted to, or withheld by the Company for employee tax withholding | (4,954) | (1,450) |
Payments to repurchase common stock | (11,234) | (2,284) |
Noncontrolling interest contributions | 126,088 | 58,829 |
Noncontrolling interest distributions | (51,934) | (39,829) |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | 0 | 0 |
Net cash provided by financing activities | 535,789 | 26,398 |
Net (decrease) increase in cash and cash equivalents | (131,928) | 992 |
Cash and cash equivalents — beginning of period | 182,710 | 42,612 |
Cash and cash equivalents — end of period | 50,782 | 43,604 |
5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 150,000 | 0 |
6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 350,000 | 0 |
8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | 425,000 |
Debt Instrument, Redemption Premium | 0 | 19,645 |
5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | 446,468 |
Reporting Entities | Guarantor Subsidiaries | ||
Operating activities | ||
Net cash (used in) provided by operating activities | 17,046 | 4,366 |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | (475,221) | |
Purchases of property and equipment | (4,013) | (572) |
Investments in subsidiaries | 486,571 | 2,275 |
Net cash used in investing activities | 7,337 | 1,703 |
Financing activities | ||
Proceeds from borrowings on notes payable | 234 | 0 |
Principal payments on notes payable | (1,113) | 0 |
Proceeds from borrowings on Revolver | 0 | 0 |
Payments on Revolver | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | |
Payment of deferred loan costs | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 |
Payments to repurchase common stock | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 |
Advances to affiliates | (10,856) | (18,367) |
Intercompany receivables/payables | (11,880) | 11,698 |
Net cash provided by financing activities | (23,615) | (6,669) |
Net (decrease) increase in cash and cash equivalents | 768 | (600) |
Cash and cash equivalents — beginning of period | 156 | 272 |
Cash and cash equivalents — end of period | 924 | (328) |
Reporting Entities | Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Reporting Entities | Guarantor Subsidiaries | 6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | Guarantor Subsidiaries | 8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Debt Instrument, Redemption Premium | 0 | |
Reporting Entities | Guarantor Subsidiaries | 5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | Non-Guarantor Subsidiaries | ||
Operating activities | ||
Net cash (used in) provided by operating activities | (189,404) | (29,808) |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | 0 | |
Purchases of property and equipment | 15 | (63) |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | 15 | (63) |
Financing activities | ||
Proceeds from borrowings on notes payable | 151,317 | 105,109 |
Principal payments on notes payable | (81,858) | (101,400) |
Proceeds from borrowings on Revolver | 0 | 0 |
Payments on Revolver | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | |
Payment of deferred loan costs | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 |
Payments to repurchase common stock | 0 | 0 |
Noncontrolling interest contributions | 126,088 | 58,829 |
Noncontrolling interest distributions | (51,934) | (39,829) |
Advances to affiliates | 27,784 | 3,000 |
Intercompany receivables/payables | 20,641 | 7,231 |
Net cash provided by financing activities | 192,038 | 32,940 |
Net (decrease) increase in cash and cash equivalents | 2,649 | 3,069 |
Cash and cash equivalents — beginning of period | 11,120 | 6,136 |
Cash and cash equivalents — end of period | 13,769 | 9,205 |
Reporting Entities | Non-Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Reporting Entities | Non-Guarantor Subsidiaries | 6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | Non-Guarantor Subsidiaries | 8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Debt Instrument, Redemption Premium | 0 | |
Reporting Entities | Non-Guarantor Subsidiaries | 5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | Delaware Lyon | ||
Operating activities | ||
Net cash (used in) provided by operating activities | 8,595 | (2,526) |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | 0 | |
Purchases of property and equipment | 0 | 0 |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Proceeds from borrowings on notes payable | 0 | 0 |
Principal payments on notes payable | 0 | 0 |
Proceeds from borrowings on Revolver | 0 | 0 |
Payments on Revolver | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | |
Payment of deferred loan costs | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 |
Payments to repurchase common stock | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | (8,595) | 2,526 |
Net cash provided by financing activities | (8,595) | 2,526 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 |
Cash and cash equivalents — end of period | 0 | 0 |
Reporting Entities | Delaware Lyon | 5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Reporting Entities | Delaware Lyon | 6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | Delaware Lyon | 8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Debt Instrument, Redemption Premium | 0 | |
Reporting Entities | Delaware Lyon | 5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 0 | |
Reporting Entities | California Lyon | ||
Operating activities | ||
Net cash (used in) provided by operating activities | 4,151 | 2,452 |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | 0 | |
Purchases of property and equipment | (3,502) | (1,781) |
Investments in subsidiaries | (28,905) | 7,841 |
Net cash used in investing activities | (32,407) | 6,060 |
Financing activities | ||
Proceeds from borrowings on notes payable | 0 | 0 |
Principal payments on notes payable | 0 | 0 |
Proceeds from borrowings on Revolver | 407,446 | 275,000 |
Payments on Revolver | (187,446) | (254,000) |
Principal payments on subordinated amortizing notes | (5,606) | |
Payment of deferred loan costs | (10,757) | (9,794) |
Shares remitted to, or withheld by the Company for employee tax withholding | (4,954) | (1,450) |
Payments to repurchase common stock | (11,234) | (2,284) |
Noncontrolling interest contributions | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | (500,144) | (13,678) |
Net cash provided by financing activities | (107,089) | (9,989) |
Net (decrease) increase in cash and cash equivalents | (135,345) | (1,477) |
Cash and cash equivalents — beginning of period | 171,434 | 36,204 |
Cash and cash equivalents — end of period | 36,089 | 34,727 |
Reporting Entities | California Lyon | 5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 150,000 | |
Reporting Entities | California Lyon | 6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 350,000 | |
Reporting Entities | California Lyon | 8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 425,000 | |
Debt Instrument, Redemption Premium | 19,645 | |
Reporting Entities | California Lyon | 5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | 446,468 | |
Consolidation, Eliminations | ||
Operating activities | ||
Net cash (used in) provided by operating activities | (25,384) | 2,526 |
Investing activities | ||
Cash paid for acquisitions, net of cash acquired | 0 | |
Purchases of property and equipment | 0 | 0 |
Investments in subsidiaries | (457,666) | (10,116) |
Net cash used in investing activities | (457,666) | (10,116) |
Financing activities | ||
Proceeds from borrowings on notes payable | 0 | 0 |
Principal payments on notes payable | 0 | 0 |
Proceeds from borrowings on Revolver | 0 | 0 |
Payments on Revolver | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | |
Payment of deferred loan costs | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 |
Payments to repurchase common stock | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 |
Advances to affiliates | (16,928) | 15,367 |
Intercompany receivables/payables | 499,978 | (7,777) |
Net cash provided by financing activities | 483,050 | 7,590 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 |
Cash and cash equivalents — end of period | 0 | 0 |
Consolidation, Eliminations | 5 3/4% Senior Notes due April 15, 2019 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Consolidation, Eliminations | 6% Senior Notes due September 1, 2023 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | $ 0 | |
Consolidation, Eliminations | 8 1/2% Senior Notes due November 15, 2020 | ||
Financing activities | ||
Repayments of Senior Debt | 0 | |
Debt Instrument, Redemption Premium | 0 | |
Consolidation, Eliminations | 5 7/8% Senior Notes due January 31, 2025 | ||
Financing activities | ||
Proceeds from issuance of 7% senior notes | $ 0 |
Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial liabilities: | ||
Notes payable, fair value | $ 164,811 | $ 94,515 |
5 3/4% Senior Notes due April 15, 2019 | ||
Financial liabilities: | ||
Long-term debt, fair value | $ 0 | $ 151,500 |
Stated interest rate | 5.75% | 5.75% |
7% Senior Notes due August 15, 2022 | ||
Financial liabilities: | ||
Long-term debt, fair value | $ 354,830 | $ 362,250 |
Stated interest rate | 7.00% | 7.00% |
6% Senior Notes due September 1, 2023 | ||
Financial liabilities: | ||
Long-term debt, fair value | $ 339,080 | $ 0 |
Stated interest rate | 6.00% | |
5 7/8% Senior Notes due January 31, 2025 | ||
Financial liabilities: | ||
Long-term debt, fair value | $ 420,210 | $ 459,000 |
Stated interest rate | 5.875% | 5.875% |
Carrying Amount | ||
Financial liabilities: | ||
Notes payable, fair value | $ 164,811 | $ 94,515 |
Carrying Amount | 5 3/4% Senior Notes due April 15, 2019 | ||
Financial liabilities: | ||
Long-term debt, fair value | 0 | 149,362 |
Carrying Amount | 7% Senior Notes due August 15, 2022 | ||
Financial liabilities: | ||
Long-term debt, fair value | 347,273 | 346,740 |
Carrying Amount | 6% Senior Notes due September 1, 2023 | ||
Financial liabilities: | ||
Long-term debt, fair value | 343,568 | 0 |
Carrying Amount | 5 7/8% Senior Notes due January 31, 2025 | ||
Financial liabilities: | ||
Long-term debt, fair value | $ 440,597 | $ 439,567 |
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Nov. 30, 2017 |
Dec. 31, 2017 |
|
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Earnest Money Deposits | $ 1.2 | |
Paulson & Co. Inc. | Investor | ||
Related Party Transaction [Line Items] | ||
Purchase price of lots | $ 22.8 | |
Related party stock ownership | 5.00% |
Income Taxes - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Income Taxes [Line Items] | |||||
Effective income tax rate | 22.00% | 31.60% | 21.50% | 29.90% | |
Valuation allowance | $ 0 | $ 0 | |||
Testing period | 5 years | ||||
AMT credit carryovers | 1,400,000 | $ 1,400,000 | |||
Provisional income tax expense | $ 23,100,000 | ||||
Unrecognized tax benefits | 0 | 0 | |||
Federal | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 0 | 0 | |||
Unused built-in losses | 48,500,000 | 48,500,000 | |||
State | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 49,900,000 | 49,900,000 | |||
Unused built-in losses | $ 7,500,000 | $ 7,500,000 |
Income Per Common Share - Schedule of Basic and Diluted Income Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average number of common shares outstanding (in shares) | 37,847,743 | 37,059,483 | 37,931,764 | 37,007,144 |
Effect of dilutive securities: | ||||
Diluted average shares outstanding (in shares) | 39,160,894 | 38,583,341 | 39,581,986 | 38,381,292 |
Net income available to common stockholders | $ 26,558 | $ 27,418 | $ 57,341 | $ 36,372 |
Basic income per common share (in USD per share) | $ 0.70 | $ 0.74 | $ 1.51 | $ 0.98 |
Dilutive income per common share (in USD per share) | $ 0.68 | $ 0.71 | $ 1.45 | $ 0.95 |
Stock Options, Unvested Common Shares, and Warrants | ||||
Effect of dilutive securities: | ||||
Stock options, unvested common shares, and warrants (in shares) | 1,313,150 | 1,523,858 | 1,650,222 | 1,374,148 |
Unvested Stock Options | ||||
Antidilutive securities not included in the calculation of diluted income per common share (weighted average): | ||||
Antidilutive securities (in shares) | 0 | 240,000 | 0 | 240,000 |
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 7,593 | |||
Stock based compensation expense | $ 2,400 | $ 3,100 | 7,593 | $ 6,260 |
Allocated Share-based Compensation Expense | $ 0 | |||
One Year Vesting Restricted Stock [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 36,317 | |||
One Year Vesting Restricted Stock [Member] | Share-based Compensation Award, Tranche One | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 100.00% | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 1,065 | 242,638 | ||
Restricted stock | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 21,928 | |||
Two Year Vesting Restricted Stock, March Schedule | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 4,767 | |||
Two Year Vesting Restricted Stock, March Schedule | Share-based Compensation Award, Tranche One | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 50.00% | |||
Two Year Vesting Restricted Stock, March Schedule | Share-based Compensation Award, Tranche Two | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 50.00% | |||
Three Year Vesting Restricted Stock [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 26,321 | |||
Performance Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 0 | 426,075 | ||
Three Year Vesting Restricted Stock, March Schedule [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 373,432 | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 52,643 | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche One | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche One | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche Three | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Two Year Vesting Restricted Stock, Grant Date Schedule [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 36,821 | |||
Two Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche One | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 50.00% | |||
Two Year Vesting Restricted Stock, Grant Date Schedule [Member] | Share-based Compensation Award, Tranche Two | Non Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 50.00% | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of stock (in shares) | 116,484 | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche One | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche Two | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Three Year Vesting Restricted Stock, March Schedule [Member] | Share-based Compensation Award, Tranche Three | Other Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, vesting percentage | 33.33% | |||
Additional Paid-in Capital [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 7,588 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Loss Contingencies [Line Items] | ||
Outstanding performance and surety bonds | $ 250.1 | |
Non-refundable deposits | 113.1 | |
Remaining purchase price of land | 957.8 | |
Project construction commitment | ||
Loss Contingencies [Line Items] | ||
Other commitment | 438.5 | |
Accrued Expenses | ||
Loss Contingencies [Line Items] | ||
Lease liability | $ 16.4 | $ 14.5 |
Commitments and Contingencies - Summary of Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Lease cost | ||||
Operating lease cost | $ 2,113 | $ 1,646 | $ 6,166 | $ 4,405 |
Sublease income | (29) | (29) | (87) | (87) |
Total lease cost | 2,084 | 1,617 | 6,079 | 4,318 |
Operating cash flows | 1,779 | 1,621 | 5,325 | 3,879 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 252 | $ 155 | $ 5,640 | $ 5,213 |
Weighted-average discount rate | 6.50% | 6.60% | 6.50% | 6.60% |
Commitments and Contingencies - Weighted Average Remaining Lease Term (Details) |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted-average remaining lease term (in years) | 4 years 29 days | 3 years 6 months 28 days |
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Future Minimum Payments Under Non-cancelable Operating Leases | |
Remaining in 2018 | $ 2,007 |
2019 | 5,817 |
2020 | 4,841 |
2021 | 4,497 |
2022 | 3,191 |
Thereafter | 3,871 |
Total | $ 24,224 |
Commitments and Contingencies - Land Banking Arrangements (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
Project
lot
|
Dec. 31, 2017
USD ($)
|
|
Property, Plant and Equipment [Line Items] | ||
Real estate inventories not owned | $ 209,819,000 | $ 0 |
Liabilities from inventories not owned | 209,819,000 | $ 0 |
Land, Banking Arrangement | ||
Property, Plant and Equipment [Line Items] | ||
Real estate inventories not owned | 209,800,000 | |
Liabilities from inventories not owned | $ 209,800,000 | |
Total number of land banking projects consolidated | Project | 1 | |
Total number of lots | lot | 3,181,000 | |
Total purchase price | $ 316,452,000 | |
Balance of lots still under option and not purchased, number of lots | lot | 2,522,000 | |
Balance of lots still under option and not purchased, purchase price | $ 249,375,000 | |
Forfeited deposits if lots are not purchased | $ 39,705 | |
Minimum | Land, Banking Arrangement | ||
Property, Plant and Equipment [Line Items] | ||
Non-refundable deposit of total purchase price, percentage | 15.00% | |
Maximum | Land, Banking Arrangement | ||
Property, Plant and Equipment [Line Items] | ||
Non-refundable deposit of total purchase price, percentage | 25.00% |
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