-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, qmETI2x7B2Bazl5Ui8ue8ko/OPnNuwT+up1ry+efJLPEQbEUlbzu+WP5r0JzsQ+T JDdH1NiKU6Lppr9Vdd+ykg== 0000085974-94-000015.txt : 19940706 0000085974-94-000015.hdr.sgml : 19940706 ACCESSION NUMBER: 0000085974-94-000015 CONFORMED SUBMISSION TYPE: 11-K CONFIRMING COPY: PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940705 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RYLAND GROUP INC CENTRAL INDEX KEY: 0000085974 STANDARD INDUSTRIAL CLASSIFICATION: 1531 IRS NUMBER: 520849948 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08029 FILM NUMBER: 00000000 BUSINESS ADDRESS: STREET 1: 11000 BROKEN LAND PARKWAY CITY: COLUMBIA STATE: MD ZIP: 21044 BUSINESS PHONE: 4107157000 FORMER COMPANY: FORMER CONFORMED NAME: RYAN JAMES P CO DATE OF NAME CHANGE: 19720414 11-K 1 12/31/93 11-K CONFIRMING COPY THIS DOCUMENT IS A COPY OF THE FORM 11-K ANNUAL REPORT FILED ON 7/1/94 PURSUANT TO A RULE 201 TEMPORARY HARDSHIP EXEMPTION. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K (Mark One): [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1993. OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]. For the transition period from________to________. Commission file number 1-8029 . A. The Ryland Group, Inc. Retirement and Stock Ownership Plan B. The Ryland Group, Inc. 11000 Broken Land Parkway Columbia, Maryland, 21044 THE RYLAND GROUP, INC. Information Required by Form 11-K INDEX Page Number Report of Independent Auditors 1 Item 4. Audited Financial Statements and Schedules 2-20 Exhibit 24. Consent of Ernst and Young, Independent Auditors 21 SIGNATURES 22 REPORT OF INDEPENDENT AUDITORS Employee Benefits Committee The Ryland Group, Inc. Retirement and Stock Ownership Plan We have audited the accompanying statements of net assets available for plan benefits of The Ryland Group, Inc. Retirement and Stock Ownership Plan as of December 31, 1993 and 1992, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan at December 31, 1993 and 1992, and the changes in its net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1993 and reportable transactions for the year then ended are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the 1993 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1993 financial statements taken as a whole. As discussed in Note B to the financial statements, in 1992 the Plan changed its method of accounting for accrued benefits to terminated participants. /s/ Ernst & Young June 23, 1994 1 STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, December 31, 1993 1992 ----------- ---------- ASSETS Receivables: Accrued employer contributions $1,291,250 Accrued participant contributions 242 Accrued interest and dividends 416,919 $ 43,773 ---------- ---------- Total receivables 1,708,411 43,773 Investments at market value: Short-term investments 115,401 19,449,460 CIGNA Income Fund 7,234,084 5,708,126 Preferred stock of The Ryland Group, Inc. Unallocated 21,512,045 23,887,481 Allocated 12,088,070 9,521,626 Common stock of The Ryland Group, Inc. 619,780 875 857 Mutual funds 22,503,700 1,949,730 Loans to participants 1,971,375 2,392,866 ---------- ---------- Total investments 66,044,455 63,785,146 ---------- ---------- Total Assets 67,752,866 63,828,919 ---------- ---------- LIABILITIES Accounts payable 29,358 Loan payable to The Ryland Group, Inc. 28,114,880 31,072,301 ---------- ---------- Total Liabilities 28,144,238 31,072,301 ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $39,608,628 $32,756,618 =========== =========== See notes to financial statements
2 STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS The Ryland Group, Inc. Retirement and Stock Ownership Plan Year Ended Year Ended December 31, December 31, 1993 1992 ----------- ----------- ADDITIONS Contributions: Employer $ 5,138,514 $ 3,471,258 Participants 4,454,959 3,200,836 Rollovers 231,023 1,666,260 ---------- ---------- Total contributions 9,824,496 8,338,354 Interest: Short-term investments 1,856 17,574 CIGNA Income Fund 516,586 392,825 Mutual funds 68,638 U.S Government securities 18,717 Corporate bonds 316,275 Participant loans 171,948 200,134 ----------- ----------- Total interest 690,390 1,014,163 Dividends: The Ryland Group, Inc. Preferred stock 2,589,000 2,677,136 Common Stock 20,013 23,173 Mutual funds 1,575,160 562,246 Unaffiliated common stock 133,676 ----------- ----------- Total dividends 4,184,173 3,396,231 ----------- ----------- Total Additions 14,699,059 12,748,748 DEDUCTIONS Benefit payments to participants 6,228,059 4,668,881 Interest expense 3,044,665 3,322,414 Administrative expenses 82,017 185,488 ----------- ---------- Total Deductions 9,354,741 8,176,783 Net (loss) gain on sale of investments (444,606) 1,935,674 Net unrealized appreciation (depreciation) in market value of investments 1,952,298 (2,536,157) ----------- ---------- Increase in net assets available for plan benefits 6,852,010 3,971,482 Net assets available for plan benefits at beginning of year 32,756,618 28,785,136 ----------- ----------- Net assets available for plan benefits at end of year $39,608,628 $32,756,618 ============= =========== See notes to financial statements
3 NOTES TO FINANCIAL STATEMENTS THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE A: SIGNIFICANT ACCOUNTING POLICIES The financial statements of the The Ryland Group, Inc. Retirement and Stock Ownership Plan ("the Plan" or "the RSOP") are prepared on the accrual basis of accounting. Investments are stated at aggregate current market value. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the Plan year. The Preferred Stock of The Ryland Group, Inc. (the "Company"), is valued quarterly by an independent appraiser, with a minimum guaranteed value of $25.25 by the Company. Deposits invested by the Trustee in funds maintained by CIGNA are stated at current redemption value. The Trustee invests any excess funds on a short-term basis in common trust funds. The change in the difference between current market value and the cost of investments is reflected in the statement of changes in net assets available for plan benefits as net unrealized appreciation or depreciation in market value of investments. The net gain or loss on sale of investments reflects the difference between the proceeds received and the cost of the specific investment shares sold. Expenses relating to the purchase or sale of investments are added to their cost or deducted from their proceeds. During 1992, administrative services, trustee fees, investment advisors fees and other direct expenses were paid by the Plan and were based on customary and reasonable rates for such services. Effective January 1, 1993, each participant account is charged a flat fee of $12.50 per quarter to pay for a portion of such expenses. The Company pays administrative costs to the extent they are not covered by the participants. The Plan accounts for benefits due but unpaid as a component of net assets available for plan benefits. Benefits due but unpaid were approximately $321,446 and $642,800 at December 31, 1993 and 1992, respectively. On January 1, 1992, approximately $1,144,000 of participant balances in the Brock (the Company's California operations) 401(k) plan were transferred into the RSOP as a result of that plan's termination on December 31, 1991. Participant balances were allocated among the available RSOP investment options. This transfer and allocation of monies are reflected in the Statement of Changes in Net Assets Available for Plan Benefits as part of the rollover contributions reported for 1992. 4 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE B: CHANGE IN ACCOUNTING PRINCIPLE Prior to 1992, the Plan accounted for benefits due but unpaid as a liability of the Plan and, accordingly, a reduction of net assets available for plan benefits. During 1992, the American Institute of Certified Public Accountants issued the Industry Audit Guide "Audits of Employee Benefit Plans" which requires that benefits due but unpaid be included as a component of net assets available for plan benefits and disclosed in a note to the financial statements. As a result of this change, the accompanying financial statements have been restated and net assets available for plan benefits increased by approximately $1,901,900 at January 1, 1992. Also, the change in net assets available for plan benefits was decreased by the same amount for the year ended December 31, 1992. NOTE C: DESCRIPTION OF THE PLAN General The RSOP was established on August 16, 1989. Designed to be an employee stock ownership plan with a deferred compensation and profit sharing arrangement, the Plan permits deferral of a portion of participants' pretax income pursuant to Section 401(k) of the Internal Revenue Code. These participant contributions into the plan are combined with Company contributions of Series A ESOP Convertible Preferred Stock (the "Preferred Stock"), which are allocated to participants as a match of their pretax deferrals and as a discretionary contribution resulting from the Company's desire to share profits with participants. Employee Eligibility Employees are eligible to participate in the Plan at the beginning of the first pay period of the month that follows completion of a one-year period of service. An employee will be credited with a one-year period of service upon completion of at least 1,000 hours of service in the 12- month period beginning on the date of his/her employment or in any plan year beginning thereafter. 5 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE C: DESCRIPTION OF THE PLAN--CONTINUED Employee Contributions and Investment Options Each eligible employee may elect to contribute on a pretax basis, through a system of payroll deductions, any whole number percentage, from one percent (1%) to twelve percent (12%), of the eligible employee's compensation. In accordance with IRS regulations, no employee may contribute more than $8,994 to the Plan for the 1993 calendar year. The Plan provides participants with investment options with respect to participant contributions. Participant contributions for 1992 were invested, at the discretion of the participant, in any combination of the five investment option funds below in 1 percent increments. The investment options for 1992 were: The Ryland Group, Inc. Common Stock--The Ryland Stock Fund consists exclusively of The Ryland Group, Inc. Common Stock. The Fund is managed by Wachovia Bank of North Carolina, N.A. , which also manages all purchases and sales of Common Stock. At December 31, 1992, 391 employees were participating in this option. Vanguard Money Market Fund (U.S. Treasury Portfolio) --The Vanguard Money Market Fund (U.S. Treasury Portfolio) is a money market mutual fund which invests in short-term U.S. Government Securities. At December 31, 1992, 571 employees were participating in this option. Vanguard Explorer I Fund--The Vanguard Explorer I Fund is a mutual fund seeking long-term growth of capital by investing primarily in equity securities of relatively small unseasoned or embryonic companies. Most of the securities purchased are not listed on the national stock exchanges but have an established over the counter market, the depth and liquidity of which will vary. The Fund's investments are diversified but may be considered speculative. At December 31, 1992,560 employees were participating in this option. Vanguard Windsor I Fund, Inc.--The Vanguard Windsor I Fund is a mutual fund which seeks long-term growth through investments, mostly in common stocks. A secondary objective is to provide current income, through dividends, which is then reinvested in the Fund. The Fund's investments are typically characterized by low price- earnings ratios and reasonably good income yields. At December 31, 1992, 955 employees were participating in this option. 6 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE C: DESCRIPTION OF THE PLAN--CONTINUED Employee Contributions and Investment Options - cont. CIGNA Income Fund --The CIGNA Income Fund is a fund which consists of investments in intermediate-term obligations of a "fixed income" nature. These are predominantly public and direct placement bonds and mortgages. Interest rates on funds are declared annually and in advance. At December 31, 1992, 886 employees were participating in this option. In May 1992, the Employee Benefits Committee agreed to eliminate The Ryland Group, Inc. Common Stock Fund and the Vanguard Explorer, Windsor and Money Market funds as RSOP investment options for participants effective January 1, 1993. Four new investment options were chosen to replace these funds. Participant balances in the Vanguard funds were transferred at the participant's discretion among the CIGNA Income Fund and the four new funds described below. Participant balances in The Ryland Group Inc. Common Stock fund remain as frozen options which can be liquidated at the participant's option. At December 31, 1993, 244 employees were maintaining balances in The Ryland Group, Inc. Common Stock Fund, and 904 employees were participating in the CIGNA Income Fund investment option. New Investment Options for 1993: Putnam Voyager Fund --The Putnam Voyager Fund is an aggressive equity mutual fund seeking capital appreciation primarily by investing in emerging growth stocks of small to medium sized companies with the potential for above average sales and earnings growth as well as opportunity stocks of larger, well-established companies, which show near-term growth potential resulting from some change in the company's business plan or competitive environment. The investment manager of this fund is The Putnam Management Company, Inc. At December 31, 1993, 999 employees were participating in this option. Kemper Growth Fund --The Kemper Growth Fund is an equity mutual fund which seeks growth of capital by primarily investing in common stocks of companies that are typically characterized by above average profitability, leadership position in the industry, good management, increasing demand for the companies' products and services, and new product development. The investment manager of this fund is Kemper Financial Services, Inc. At December 31, 1993, 1,157 employees were participating in this option. 7 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE C: DESCRIPTION OF THE PLAN--CONTINUED Employee Contributions and Investment Options - cont. American Balanced Fund --The American Balanced Fund is a conservative mutual fund seeking preservation of capital and income as well as long-term growth of capital and income by broadly investing in a diversified portfolio of blue chip common stocks, preferred stocks, corporate bonds, and U.S. Government securities. The investment advisor of this fund is Capital Research and Management Company (CRMC). At December 31, 1993, 1,078 employees were participating in this option. Standish Fixed Income Fund --The Standish Fixed Income Fund is a mutual fund seeking to achieve a high level of current income while preserving principal and liquidity by primarily investing in a diversified portfolio of investment-grade fixed income securities such as bonds, notes, mortgage pass-through securities, convertible debt securities and debt securities with an average maturity of five to thirteen years. The investment advisor of this fund is Standish, Ayer & Wood, Inc. At December 31, 1993, 607 employees were participating in this option. Elimination of Pooled Fund In addition to eliminating the Vanguard Funds, the Employee Benefit Committee also agreed to eliminate, effective January 1, 1993, the pooled fund which managed investments of pre-1990 company contributions for the Profit Sharing Trust (PST), a predecessor plan to the RSOP. The PST participant balances, which were invested with Standish, Ayer and Wood, were freed to be allocated at the participants' discretion among the 1993 RSOP investment options. Company Contributions Contributions made by the Company are made to The Ryland Group, Inc. Preferred Stock Fund. Following each calendar quarter, the Company will match one hundred percent (100%) of the participant's contributions, not to exceed six percent (6%) of the participant's compensation. In addition, the Company may make a discretionary contribution for any plan year. The amount is determined by resolution of the Board of Directors and will at least equal the amount required to make an ESOP Loan (defined below) amortization payment for such plan year after application of matching contributions, dividends and forfeitures for the plan year. The Company has not made discretionary contributions for the years ended December 31, 1993 and 1992. 8 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE C: DESCRIPTION OF THE PLAN--CONTINUED Vesting Participants' contributions are fully vested at all times. The Plan provides for graduated vesting of Company contributions of 25% after two years' service and 25% additional vesting for each year thereafter until the fifth year, at which time participants are 100% vested. Participants are automatically vested upon death, disability or retirement at age 65. ESOP Loan The "ESOP Loan" is a loan between the Company and the Plan; the proceeds were used by the Plan to acquire the Preferred Stock (see Note D below). To the extent Company contributions, including matching contributions and discretionary contributions, are used to make an ESOP Loan amortization payment, such contributions are made in cash. After each ESOP Loan amortization payment is made, a number of shares of Preferred Stock are released from the ESOP Loan suspense account based on a predetermined formula. Following the release of the Preferred Stock from the ESOP Loan suspense account and allocation of a portion of the shares of Preferred Stock attributable to dividends, the remaining shares of Preferred Stock are allocated among the participants' Convertible Preferred Stock accounts based on the amount of the matching contributions. Any remaining shares of Preferred Stock attributable to the discretionary contribution are allocated among the participants' Convertible Preferred Stock accounts based on participants' compensation. Other The Company expects and intends to continue the Plan indefinitely but reserves the right to amend, suspend or terminate the Plan at any time. If the Company terminates the Plan, each participant will become fully vested in all of his or her accounts under the Plan and will be entitled to a distribution of such accounts in accordance with the terms of the Plan. Earnings on investments, net gains or losses on sales of investments and unrealized appreciation or depreciation in market value of investments are allocated to individual participant accounts based on a ratio of the individual's account balance to the total fund balance. The maximum accounting loss the Plan would incur if parties to the financial instruments failed to perform would be the current value of the investment as stated on the Statement of Net Assets Available for Plan Benefits. None of the investments are secured by collateral. 9 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE C: DESCRIPTION OF THE PLAN--CONTINUED Additional information about the Plan agreement is contained in the pamphlet The Ryland Retirement and Stock Ownership Plan. Copies of this pamphlet are available from the Company's Employee Benefits Department. NOTE D: PREFERRED STOCK AND THE LOAN PAYABLE TO RYLAND On August 31, 1989, the Company sold 1,267,327 shares of non-transferable Series A ESOP Convertible Preferred Stock, par value $1.00, to the Plan for $31.5625 per share, or an aggregate purchase price of approximately $40,000,000. Each share of Preferred Stock will pay an annual cumulative dividend of $2.2094, or 7.0 percent of the purchase price per share, and is convertible initially into one share of the Company's Common Stock. During 1993 and 1992, the Company paid $2,589,000 and $2,677,136 in dividends on the Preferred Stock. Each share of Preferred Stock is entitled to a number of votes equal to the shares into which it is convertible, and the holders of the Preferred Stock generally vote together with the Common Stock on all matters. The conversion and voting rights of the Preferred Stock are subject to anti-dilution adjustments. The Plan's purchase of shares of Preferred Stock was financed by a loan to the Plan from the Company in an amount of $40,000,000. The loan bears interest at the rate of 9.99 percent and is expected to be repaid over 10 years by the Plan through dividends received on the Preferred Stock and Company contributions. The Plan incurred approximately $3,045,000 and $3,322,000 of interest on this loan in 1993 and 1992. Participants receive allocations of the Preferred Stock as debt payments are made. During 1993 and 1992, there were 118,340 and 117,167 shares released respectively and distributed to participants. The unallocated preferred shares are collateral to the loan payable to Ryland. As of December 31, 1993, there were 738,610 unallocated preferred shares with an approximate value of $21,512,000. At December 31, 1992 there were 856,950 unallocated preferred shares with an approximate value of $23,887,000. Maturities of the loan payable to Ryland for each of the next five years are as follows: 1994 $4,642,565 1995 $3,678,104 1996 $5,908,209 1997 $6,388,298 1998 $6,880,634
10 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE E: DISTRIBUTIONS A participant who terminates employment with the Company by reason of a separation from service, death, disability or retirement will be paid the current value of his/her contributions to the Plan, plus the vested portion of his/her account, if any, attributable to Company contributions. Distributions from a participant's vested portion of his/her Convertible Preferred Stock account will be made at the participant's election either in cash or whole shares of Common Stock of the Company. If the participant elects to receive Common Stock, the Trustee will convert each share of Preferred Stock held in the participant's Convertible Preferred Stock account into one share of Common Stock and will receive in cash any differential between the current Common Stock price and the appraised value of the Preferred Stock. The Trustee will then use the cash to acquire additional shares of Common Stock and will distribute the total number of shares of Common Stock that were acquired. If the participant elects to receive cash, the Trustee will convert each share of Preferred Stock into the number of shares of Common Stock into which such Preferred Stock is convertible, and will receive in cash any differential between the current Common Stock price and the fair market value of the Preferred Stock. The Trustee will then sell the shares of Common Stock on the open market and distribute the cash proceeds. The non- vested portion of the Company's contributions credited to the terminating participant is forfeited immediately. 11 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE F: INVESTMENTS During 1993 and 1992, the Plan's investments (including investments bought and sold, as well as held during the year) appreciated (depreciated) in market value by $1,507,692 and $(600,483), respectively.
Net Appreciation (Depreciation)in FOR THE YEAR ENDED Market Value Market Value at DECEMBER 31, 1993 During Year End of Year ---------------- -------------- Common Stock-- The Ryland Group, Inc. $ (30,771) $ 619,780 Putnam Voyager Fund 598,684 4,970,340 Kemper Growth Fund (333,307) 7,210,603 American Balanced Fund 104,232 6,931,783 CIGNA Income Fund 0 7,234,084 Capitol Money Market Fund 0 115,401 Standish Fixed Income Fund 124,419 3,390,974 Preferred Stock-- The Ryland Group, Inc. 1,044,435 33,600,115 Loans to Participants 0 1,971,375 -------------- ------------- Total $ 1,507,692 $ 66,044,455 =============== ==============
12 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE F: INVESTMENTS--CONTINUED
Net Appreciation (Depreciation) FOR THE YEAR ENDED in Market Value Market Value at DECEMBER 31, 1992 During Year End of Year -------------- -------------- Common Stock-- The Ryland Group, Inc. $ (126,397) $ 875,857 Vanguard Money Market Fund 0 1,949,730 Vanguard Explorer Fund 171,912 0 Vguard Windsor Fund 424,364 0 CIGNA Income Fund 0 5,708,126 Capitol Money Market Fund 0 19,449,460 Common Stock-- Unaffiiated Issuers 243,372 0 U.S Government Bonds and Notes 9,473 0 Corporate Bond Mutual Fund 47,924 0 Equity Mutual Funds 41,448 0 Preferred Stock-- The Ryland Group, Inc. (1,412,579) 33,409,107 Loans to Participants 0 2,392,866 ------------ ----------- Total $ (600,483) $63,785,146 ============ ===========
The market value of individual investments that represent 5% or more of the Plan's net assets are as follows:
December 31, December 31, 1993 1992 ------------- ------------- Putnam Voyager $ 4,970,340 Kemper Growth Fund $ 7,210,603 American Balanced Fund $ 6,931,783 Standish Fixed Income Fund $ 3,390,974 Vanguard Money Market Fund $ 1,949,730 CIGNA Income Fund $ 7,234,084 $ 5,708,126 Preferred Stock-- The Ryland Group, Inc. $ 33,600,115 $ 33,409,107 Capitol Money Market Mutual Funds Class A $ 19,449,460 Loans to Participants $ 1,971,375 $ 2,392,866
13 NOTES TO FINANCIAL STATEMENTS--CONTINUED THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN NOTE G: INCOME TAX STATUS The Plan is intended to be a tax-qualified plan under Section 401 of the Internal Revenue Code (IRC), and, therefore, not subject to tax under present income tax regulations. The Internal Revenue Service (IRS) is currently reviewing the regulations of Section 401 to determine if an ESOP with ESIP provisions should be governed by this section. The ultimate receipt of a favorable IRS determination letter by the Plan cannot be predicted at this time. Currently, participants are not subject to federal income tax on contributions to the Plan and income thereon until such amounts are distributed to them. The Company intends to make any adjustments to the Plan that may be required in order for this Plan to remain a tax-qualified plan under the appropriate IRC section. 14 The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1993 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Putnam Kemper Common Voyager Growth --------- -------- --------- ASSETS Receivables: Accrued employer contributions Accrued employee contributions $ 3,310 $ 6,326 Accrued interest and dividends 187,148 2,722 --------- ---------- ---------- Total receivables 190,458 9,048 Investments at market value: Short-term investments $ 2,943 CIGNA Income Fund Preferred stock of The Ryland Group, Inc. Common stock of The Ryland Group, Inc. 619,660 Mutual funds 4,970,340 7,210,603 Loans to participants ---------- ----------- --------- Total investments 622,603 4,970,340 7,210,603 ---------- ----------- --------- Total Assets 622,603 5,160,798 7,219,651 ========== ========== ========== LIABILITIES Accounts payable 283 1,403 4,236 Loan payable to The Ryland Group, Inc. Interfund payables (receivables) (374,837) (7,101) ---------- ----------- --------- Total Liabilities 283 (373,434) (2,865) ---------- ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $622,320 $5,534,232 $7,222,516 ========== =========== ===========
American Standish Balanced Fixed Income CIGNA ---------- ----------- ------ ASSETS Receivables: Accrued employer contributions Accrued employee contributions $ 1,642 $ (8,712) $(2,324) Accrued interest and dividends 54 183,029 43,961 --------- ---------- ------- Total receivables 1,696 174,317 41,637 Investments at market value: Short-term investments 67,915 42,565 CIGNA Income Fund 7,234,084 Preferred stock of The Ryland Group, Inc. Common stock of The Ryland Group, Inc. Mutual funds 6,931,783 3,390,974 Loans to participants ---------- ----------- --------- Total investments 6,999,698 3,390,974 7,276,649 ---------- ----------- ----------- Total Assets 7,001,394 3,565,291 7,318,286 ========== =========== =========== LIABILITIES Accounts payable 1,476 4,624 17,336 Loan payable to The Ryland Group, Inc. Interfund payables (receivables) 92,906 (87,283) 376,119 ---------- ----------- ---------- Total Liabilities 94,382 (82,659) 393,455 ---------- ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $6,907,012 $3,647,950 $6,924,831 =========== ========== ===========
The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1993 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Pooled Loan Preferred Investments Fund --------- ---------- --------- ASSETS Receivables: Accrued employer contributions $1,291,250 Accrued employee contributions Accrued interest and dividends 5 --------- ---------- ---------- Total receivables 1,291,255 0 0 Investments at market value: Short-term investments 1,978 CIGNA Income Fund Preferred stock of The Ryland Group, Inc. 33,600,115 Common stock of The Ryland Group, Inc. 120 Mutual funds Loans to participants $1,971,375 ---------- ----------- ----------- Total investments 33,602,213 0 1,971,375 ---------- ----------- ----------- Total Assets 34,893,468 0 1,971,375 ========== ============ =========== LIABILITIES Accounts payable Loan payable to The Ryland Group, Inc. 28,114,880 Interfund payables (receivables) 196 ---------- ----------- ---------- Total Liabilities 28,114,880 0 196 ---------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $6,778,588 $ 0 $1,971,179 =========== =========== ===========
The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1993 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Vanguard Vanguard Vanguard Insured Explorer Windsor --------- -------- --------- ASSETS Receivables: Accrued employer contributions Accrued employee contributions Accrued interest and dividends --------- ---------- ---------- Total receivables $ 0 $ 0 $ 0 Investments at market value: Short-term investments CIGNA Income Fund Preferred stock of The Ryland Group, Inc. Common stock of The Ryland Group, Inc. Mutual funds Loans to participants ---------- ----------- ----------- Total investments 0 0 0 ---------- ----------- ----------- Total Assets 0 0 0 ========== =========== =========== LIABILITIES Accounts payable Loan payable to The Ryland Group, Inc. Interfund payables (receivables) ---------- ----------- ---------- Total Liabilities 0 0 0 ---------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 0 $ 0 $ 0 =========== =========== ===========
The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1993 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Total --------- ASSETS Receivables: Accrued employer contributions $1,291,250 Accrued employee contributions 242 Accrued interest and dividends 416,919 ---------- Total receivables 1,708,411 Investments at market value: Short-term investments 115,401 CIGNA Income Fund 7,234,084 Preferred stock of The Ryland Group, Inc. 33,600,115 Common stock of The Ryland Group, Inc. 619,780 Mutual funds 22,503,700 Loans to participants 1,971,375 ----------- Total investments 66,044,455 ----------- Total Assets 67,752,866 =========== LIABILITIES Accounts payable 29,358 Loan payable to The Ryland Group, Inc. 28,114,880 Interfund payables (receivables) 0 ---------- Total Liabilities 28,144,238 ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $39,608,628 =========== 15 The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1992 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Vanguard Vanguard Common Insured Explorer --------- -------- --------- ASSETS Receivables: Accrued interest and dividends $ 18 $ 4,797 $ 235 ---------- ---------- ----------- Total receivables 18 4,797 235 Investments at market value: Short-term investments 8,888 21,849 2,413,114 CIGNA Income Fund Preferred stock of The Ryland Group, Inc. Common stock of The Ryland Group, Inc. 875,733 Mutual funds 1,949,730 Loans to participants ---------- ----------- --------- Total investments 884,621 1,971,579 2,413,114 ---------- ----------- --------- Total Assets 884,639 1,976,376 2,413,349 ========= ========== ========== LIABILITIES Loan payable to The Ryland Group, Inc. Interfund payables (receivables) (11,260) (3,506) 45,090 ---------- ----------- --------- Total Liabilities (11,260) (3,506) 45,090 ---------- ----------- --------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $895,899 $1,979,882 $2,368,259 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1992 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Vanguard Pooled Windsor CIGNA Investments ----------- -------- ------------ ASSETS Receivables: Accrued interest and dividends $ 629 $ 35,204 $ 2,890 ---------- ---------- --------- Total receivables 629 35,204 2,890 Investments at market value: Short-term investments 6,924,114 144,736 9,929,394 CIGNA Income Fund 5,708,126 Preferred stock of The Ryland Group, Inc. Common stock of The Ryland Group, Inc. Mutual funds Loans to participants ---------- ----------- --------- Total investments 6,924,114 5,852,862 9,929,394 ---------- ----------- --------- Total Assets 6,294,743 5,888,066 9,932,284 ========= ========== ========== LIABILITIES Loan payable to The Ryland Group, Inc. Interfund payables (receivables) ( 4,396) (34,887) 6,788 ---------- ----------- --------- Total Liabilities ( 4,396) (34,887) 6,788 ---------- ----------- --------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $6,929,139 $5,922,953 $9,925,496 ========== ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan December 31, 1992 NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Loan Preferred Fund Total ----------- -------- ------------ ASSETS Receivables: Accrued interest and dividends $ $ $ 43,773 ---------- ---------- --------- Total receivables 0 0 43,773 Investments at market value: Short-term investments 7,365 19,449,460 CIGNA Income Fund 5,708,126 Preferred stock of The Ryland Group, Inc. 33,409,107 33,409,107 Common stock of The Ryland Group, Inc. 124 875,857 Mutual funds 1,949,730 Loans to participants 2,392,866 2,392,866 ---------- ----------- --------- Total investments 33,416,596 2,392,866 63,785,146 ---------- ----------- --------- Total Assets 33,416,596 2,392,866 63,828,919 ========== ========== ========== LIABILITIES Loan payable to The Ryland Group, Inc. 31,072,301 31,072,301 Interfund payables (receivables) 2,171 0 ---------- ----------- --------- Total Liabilities 31,072,301 2,171 31,072,301 ---------- ----------- --------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $2,344,295 $2,390,695 $32,756,618 ========== ========== ===========
16 The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1993 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Putnam Kemper Common Voyager Growth --------- -------- --------- ADDITIONS Contributions: Employer Participants $ 971,317 $1,273,180 Rollovers 78,549 57,905 --------- ---------- ---------- Total contributions 0 1,049,866 1,331,085 Earnings on investments Interest $ 116 414 573 Dividends 20,013 185,667 490,849 --------- ---------- ---------- Total Additions 20,129 1,235,947 1,822,507 --------- ---------- ---------- DEDUCTIONS Benefit payments to participants 54,226 290,194 661,755 Interest expense Administrative expenses 14,187 18,661 --------- ---------- ---------- Total Deductions 54,226 304,381 680,416 ---------- ----------- --------- Net gain (loss) on sale of investments 7,949 22,549 (4,453) Net unrealized (depreciation) appreciation in market value of investments (38,720) 576,135 (328,854) Interfund transfers (208,711) 4,003,982 6,413,732 --------- ---------- ---------- Net Increase (Decrease) (273,579) 5,534,232 7,222,516 Net assets at beginning of year 895,899 0 0 --------- ---------- ---------- Net assets at end of year $622,320 $5,534,232 $7,222,516 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1993 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
American Standish Balanced Fixed Income CIGNA --------- ------------- --------- ADDITIONS Contributions: Employer Participants $1,015,174 $ 369,183 $ 826,105 Rollovers 39,045 23,236 32,288 --------- ---------- ---------- Total contributions 1,054,219 392,419 858,393 Earnings on investments Interest 446 307 516,586 Dividends 530,570 368,074 --------- ---------- ---------- Total Additions 1,585,235 760,800 1,374,979 --------- ---------- ---------- DEDUCTIONS Benefit payments to participants 468,284 550,323 2,105,515 Interest expense Administrative expenses 17,497 6,835 24,837 --------- ---------- ---------- Total Deductions 485,781 557,158 2,130,352 ---------- ----------- --------- Net gain (loss) on sale of investments 19,897 69,586 Net unrealized (depreciation) appreciation in market value of investments 84,335 54,833 Interfund transfers 5,703,326 3,319,889 1,757,251 --------- ---------- ---------- Net Increase (Decrease) 6,907,012 3,647,950 1,001,878 Net assets at beginning of year 0 0 5,922,953 --------- ---------- ---------- Net assets at end of year $ 6,907,012 $ 3,647,950 $6,924,831 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1993 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Pooled Loan Preferred Investments Fund --------- -------- --------- ADDITIONS Contributions: Employer $ 5,138,514 Participants Rollovers --------- ---------- ---------- Total contributions 5,138,514 0 0 Earnings on investments Interest $ 171,948 Dividends 2,589,000 --------- ---------- ---------- Total Additions 7,727,514 0 171,948 --------- ---------- ---------- DEDUCTIONS Benefit payments to participants 1,292,991 141,723 449,790 Interest expense 3,044,665 Administrative expenses --------- ---------- ---------- Total Deductions 4,337,656 141,723 449,790 ---------- ----------- --------- Net gain (loss) on sale of investments (560,134) Net unrealized (depreciation) appreciation in market value of investments 1,604,569 Interfund transfers 0 (9,783,773) (141,674) --------- ---------- ---------- Net Increase (Decrease) 4,434,293 (9,925,496) (419,516) Net assets at beginning of year 2,344,295 9,925,496 2,390,695 --------- ---------- ---------- Net assets at end of year $6,778,588 $ 0 $1,971,179 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1993 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Vanguard Vanguard Vanguard Insured Explorer Windsor --------- -------- --------- ADDITIONS Contributions: Employer Participants Rollovers --------- ---------- ---------- Total contributions 0 0 0 Earnings on investments Interest Dividends --------- ---------- ---------- Total Additions 0 0 0 --------- ---------- ---------- DEDUCTIONS Benefit payments to participants $ 16,650 $ 32,038 $ 164,570 Interest expense Administrative expenses --------- ---------- ---------- Total Deductions 16,650 32,038 164,570 ---------- ----------- --------- Net gain (loss) on sale of investments Net unrealized (depreciation) appreciation in market value of investments Interfund transfers (1,963,232) (2,336,221) (6,764,569) --------- ---------- ---------- Net Increase (Decrease) (1,979,882) (2,368,259) (6,929,139) Net assets at beginning of year 1,979,882 2,368,259 6,929,139 --------- ---------- ---------- Net assets at end of year $ 0 $ 0 $ 0 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1993 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Total --------- ADDITIONS Contributions: Employer $ 5,138,514 Participants 4,454,959 Rollovers 231,023 --------- Total contributions 9,824,496 Earnings on investments Interest 690,390 Dividends 4,184,173 --------- Total Additions 14,699,059 --------- DEDUCTIONS Benefit payments to participants 6,228,059 Interest expense 3,044,665 Administrative expenses 82,017 --------- Total Deductions 9,354,741 ---------- Net gain (loss) on sale of investments (444,606) Net unrealized (depreciation) appreciation in market value of investments 1,952,298 Interfund transfers 0 --------- Net Increase (Decrease) 6,852,010 Net assets at beginning of year 32,756,618 --------- Net assets at end of year $39,608,628 =========
17 The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1992 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Vanguard Vanguard Common Insured Explorer ---------- ----------- --------- ADDITIONS Contributions: Employer Participants $ 252,927 $ 367,324 $ 484,266 Rollovers 48,257 112,189 270,285 ---------- ----------- --------- Total contributions 301,184 479,513 754,551 Earnings on investments: Interest 591 68,638 383 Dividends 23,173 50,629 ---------- ----------- --------- Total Additions 324,948 548,151 805,563 ---------- ----------- --------- DEDUCTIONS Benefit payments to participants 160,941 300,418 233,500 Interest expense Administrative expenses 5,692 11,956 11,570 ---------- ----------- --------- Total Deductions 166,633 312,374 245,070 ---------- ----------- --------- Net gain (loss) on sale of investments 14,543 394,708 Net unrealized (depreciation) appreciation in market value of investments (140,940) (222,796) Interfund transfers 11,822 (182,859) (19,286) ---------- ----------- --------- Net Increase (Decrease) 43,740 52,918 713,119 Net assets at beginning of year 852,159 1,926,964 1,655,140 ---------- ----------- --------- Net assets at end of year $ 895,899 $1,979,882 $2,368,259 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1992 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Vanguard Pooled Windsor CIGNA Investments ---------- ----------- --------- ADDITIONS Contributions: Employer Participants $1,146,493 $ 949,826 Rollovers 492,128 743,401 ---------- ----------- --------- Total contributions 1,638,621 1,693,227 0 Earnings on investments: Interest 882 392,825 $350,710 Dividends 448,955 196,338 ---------- ----------- --------- Total Additions 2,088,458 2,086,052 547,048 ---------- ----------- --------- DEDUCTIONS Benefit payments to participants 759,193 532,253 1,290,158 Interest expense Administrative expenses 39,317 32,404 84,549 ---------- ----------- --------- Total Deductions 798,510 564,657 1,374,707 ---------- ----------- --------- Net gain (loss) on sale of investments 3,799 1,839,330 Net unrealized (depreciation) appreciation in market value of investments 420,565 (1,497,113) Interfund transfers (159,262) 54,482 (248,317) ---------- ----------- --------- Net Increase (Decrease) 1,555,050 1,575,877 (733,759) Net assets at beginning of year 5,374,089 4,347,076 10,659,255 ---------- ----------- --------- Net assets at end of year $6,929,139 $5,922,953 $9,925,496 ========= ========== ==========
The Ryland Group, Inc. Retirement and Stock Ownership Plan For the Year Ended December 31, 1992 NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
Ryland Loan Preferred Fund Total ---------- ----------- --------- ADDITIONS Contributions: Employer $3,471,258 $3,471,258 Participants 3,200,836 Rollovers 1,666,260 ---------- ----------- --------- Total contributions 3,471,258 0 8,338,354 Earnings on investments: Interest $ 200,134 1,014,163 Dividends 2,677,136 3,396,231 ---------- ----------- --------- Total Additions 6,148,394 200,134 12,748,748 ---------- ----------- --------- DEDUCTIONS Benefit payments to participants 1,088,491 303,927 4,668,881 Interest expense 3,322,414 3,322,414 Administrative expenses 185,488 ---------- ----------- --------- Total Deductions 4,410,905 303,927 8,176,783 ---------- ----------- --------- Net gain (loss) on sale of investments (316,706) 1,935,674 Net unrealized (depreciation) appreciation in market value of investments (1,095,873) (2,536,157) Interfund transfers 543,420 0 ---------- ----------- --------- Net Increase (Decrease) 324,910 439,627 3,971,482 Net assets at beginning of year 2,019,385 1,951,068 28,785,136 ---------- ----------- --------- Net assets at end of year $2,344,295 $2,390,695 $32,756,618 ========= ========== ==========
18 The Ryland Group, Inc. Retirement and Stock Ownership Plan Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1993
(a) (b) (c) (d) (e) * Identity Description Cost Market - --- ------------- ---------------- ------------ ------------ * The Ryland Common Stock $ 607,099 $ 619,780 Group, Inc. * The Ryland Preferred Stock $ 36,412,141 $ 33,600,115 Group, Inc. CIGNA Guaranteed $ 7,234,084 $ 7,234,084 Account Putnam Voyager Mutual Fund $ 4,394,205 $ 4,970,340 Kemper Growth Mutual Fund $ 7,539,457 $ 7,210,603 American Balanced Mutual Fund $ 6,847,502 $ 6,931,783 Standish Fixed Mutual Fund $ 3,336,141 $ 3,390,974 Income Capitol Mutual Money Market $ 115,401 $ 115,401 Funds Mutual Funds Plan Participants Participant Loans $ 1,971,375 $ 1,971,375 * Denotes party in-interest
19 The Ryland Group, Inc. Retirement and Stock Ownership Plan Item 27d - Schedule of Reportable Transactions FOR THE YEAR ENDED DECEMBER 31, 1993
(a) (b) (c) (d) (e) (f) Expenses Identity Incurred of Party Description Purchase Selling Lease with Involved of Assets Price Price Rental Transaction - -------- ------------- -------- -------- ------ ----------- Category (i) - individual transactions in excess of 5 percent of plan assets at beginning of the year. Capitol Money n/a $9,783,773 n/a $0 Fund Market Money Fund Market Portfolio The Equity n/a $6,764,569 n/a $0 Vanguard Mutual Group Fund Windsor Fund Standish Equity $3,682,656 n/a n/a $0 Ayre & Mutual Wood Fixed Fund Income Fund Kemper Equity $7,001,258 n/a n/a $0 Financial Mutual Services- Fund Growth Fund Putnam Equity $3,506,397 n/a n/a $0 Management Mutual Company- Fund Voyager Fund Capital Equity $5,519,948 n/a n/a $0 Research Mutual and Fund Management Company- American Balanced Fund Category (iii) - series transactions in excess of 5 percent of plan assets at beginning of year. Capitol Money $3,206,786 n/a n/a $0 Fund Market Money Fund Market Portfolio CIGNA Equity n/a $3,308,957 n/a $0 Income Mutual Fund Fund CIGNA Equity n/a $3,551,730 n/a $0 Income Mutual Fund Fund There were no category (ii) or (iv) reportable transactions during 1993.
The Ryland Group, Inc. Retirement and Stock Ownership Plan Item 27d - Schedule of Reportable Transactions FOR THE YEAR ENDED DECEMBER 31, 1993
(a) (b) (g) (h) (i) Current Identity Cost Value of of Party Description of Asset on Net Gain Involved of Assets Asset Transaction Date (Loss) - -------- ------------- -------- --------------- ----------- Category (i) - individual transactions in excess of 5 percent of plan assets at beginning of year. Capitol Money $9,783,773 $9,783,773 $0 Fund Market Money Fund Market Portfolio The Equity $6,764,569 $6,764,569 $0 Vanguard Mutual Group Fund Windsor Fund Standish Equity $3,682,656 $3,682,656 $0 Ayre & Mutual Wood Fixed Fund Income Fund Kemper Equity $7,001,258 $7,001,258 $0 Financial Mutual Services- Fund Growth Fund Putnam Equity $3,506,397 $3,506,397 $0 Management Mutual Company- Fund Voyager Fund Capital Equity $5,519,948 $5,519,948 $0 Research Mutual and Fund Management Company- American Balanced Fund Category (iii) - series transactions in excess of 5 percent of plan assets at beginning of year. Capitol Money $3,206,786 $3,206,786 $0 Fund Market Money Fund Market Portfolio CIGNA Equity $3,308,957 $3,308,957 $0 Income Mutual Fund Fund CIGNA Equity $3,551,730 $3,551,730 $0 Income Mutual Fund Fund There were no category (ii) or (iv) reportable transactions during 1993.
20 Exhibit 24 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-32431) pertaining to the Retirement and Stock Ownership Plan of The Ryland Group, Inc. of our report dated June 23, 1994, with respect to the financial statements and schedules of The Ryland Group, Inc. Retirement and Stock Ownership Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1993. /s/ Ernst & Young June 27, 1994 21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this Annual Report to be signed by the undersigned thereunto duly authorized. THE RYLAND GROUP, INC. RETIREMENT AND STOCK OWNERSHIP PLAN Date: June 22, 1994 By: /s/ Alan P. Hoblitzell, Jr. Alan P. Hoblitzell, Jr. Executive Vice President and Chief Financial Officer of The Ryland Group, Inc. /s/ Robert J. Gaw Robert J. Gaw President of Ryland Mortgage Company and Executive Vice President of The Ryland Group, Inc. /s/ Robert M. Paul Robert M. Paul Vice President of Personnel and Administration of The Ryland Group, Inc. 22 -----END PRIVACY-ENHANCED MESSAGE-----