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Press release from Business Wire

Ryland Reports Results for the Third Quarter of 2012

Wednesday, October 24, 2012

Ryland Reports Results for the Third Quarter of 201216:15 EDT Wednesday, October 24, 2012 WESTLAKE VILLAGE, Calif. (Business Wire) -- The Ryland Group, Inc. (NYSE: RYL) today announced results for its quarter ended September 30, 2012. Items of note included: Net income from continuing operations totaled $10.4 million, or $0.21 per diluted share, for the quarter ended September 30, 2012. Net income from continuing operations included the impact of early retirement of debt costs of $9.1 million and valuation adjustments and write-offs of $3.5 million, and totaled $23.1 million, or $0.45 per diluted share, for the third quarter of 2012, excluding these items; New orders increased 55.8 percent to 1,500 units for the third quarter of 2012 from 963 units for the third quarter of 2011. For the third quarter of 2012, new order dollars rose 61.3 percent to $393.4 million from $243.9 million for the same period in 2011; Closings increased 37.4 percent to 1,312 units for the quarter ended September 30, 2012, compared to 955 units for the same period in the prior year; Backlog rose 58.3 percent to 2,465 units at September 30, 2012, from 1,557 units at September 30, 2011; Active communities increased 11.4 percent to 235 communities at September 30, 2012, from 211 communities at September 30, 2011; Revenues totaled $358.7 million for the quarter ended September 30, 2012, representing a 44.3 percent increase from $248.6 million for the quarter ended September 30, 2011; Average closing price increased 4.8 percent to $264,000 for the quarter ended September 30, 2012, from $252,000 for the same period in 2011; Housing gross profit margin was 20.0 percent, excluding valuation adjustments and write-offs, for the third quarter of 2012, compared to 17.8 percent for the third quarter of 2011. Including valuation adjustments and write-offs, housing gross profit margin was 19.1 percent for the third quarter of 2012, compared to 17.7 percent for the same period in the prior year; Debt issuance of $250.0 million of 5.4 percent senior notes due October 2022; Redemption of $167.2 million of 6.9 percent senior notes due June 2013; Selling, general and administrative expense (including corporate) totaled 13.8 percent of homebuilding revenues for the third quarter of 2012, compared to 18.4 percent for the third quarter of 2011; Cash, cash equivalents and marketable securities totaled $799.7 million at September 30, 2012; and Net debt-to-capital ratio was 41.2 percent at September 30, 2012, compared to 36.7 percent at December 31, 2011. RESULTS FOR THE THIRD QUARTER OF 2012 For the quarter ended September 30, 2012, the Company reported net income from continuing operations of $10.4 million, or $0.21 per diluted share, compared to a net loss of $3.9 million, or $0.09 per diluted share, for the same period in 2011. Pretax charges related to early retirement of debt totaled $9.1 million and $477,000 during the quarters ended September 30, 2012 and 2011, respectively. Additionally, the Company had pretax charges related to valuation adjustments and write-offs that totaled $3.5 million and $1.3 million for the quarters ended September 30, 2012 and 2011, respectively. The homebuilding segments reported pretax earnings of $20.8 million for the third quarter of 2012, compared to pretax earnings of $910,000 for the same period in 2011. This increase was primarily due to a rise in closing volume; higher housing gross profit margin; a reduced selling, general and administrative expense ratio; and a decline in interest expense, partially offset by higher valuation adjustments and write-offs. Homebuilding revenues increased 44.7 percent to $349.2 million for the third quarter of 2012, compared to $241.3 million for the same period in 2011. This rise in homebuilding revenues was primarily attributable to a 37.4 percent increase in closings that totaled 1,312 units for the quarter ended September 30, 2012, compared to 955 units for the same period in the prior year. For the quarter ended September 30, 2012, the average closing price of a home increased 4.8 percent to $264,000 from $252,000 for the same period in 2011. Homebuilding revenues for the third quarter of 2012 included $2.2 million from land sales, which resulted in pretax earnings of $935,000, compared to homebuilding revenues for the third quarter of 2011 that included $931,000 from land sales, which resulted in pretax earnings of $342,000. New orders increased 55.8 percent to 1,500 units for the quarter ended September 30, 2012, compared to new orders of 963 units for the same period in 2011. The Company had an average monthly sales absorption rate of 2.3 homes per community for the quarter ended September 30, 2012, versus 1.6 homes per community for the quarter ended September 30, 2011, and an average cancellation rate of 19.9 percent for the quarter ended September 30, 2012, versus 20.1 percent for the same period in 2011. For the third quarter of 2012, new order dollars increased 61.3 percent to $393.4 million from $243.9 million for the third quarter of 2011. At September 30, 2012, backlog increased 58.3 percent to 2,465 units from 1,557 units at September 30, 2011. For the third quarter of 2012, the dollar value of the Company's backlog was $661.2 million, reflecting a 65.5 percent rise from the same period in the prior year. Housing gross profit margin was 20.0 percent, excluding valuation adjustments and write-offs, for the quarter ended September 30, 2012, compared to 17.8 percent for the quarter ended September 30, 2011. Including valuation adjustments and write-offs, housing gross profit margin was 19.1 percent for the third quarter of 2012, compared to 17.7 percent for the third quarter of 2011. This improvement in housing gross profit margin was primarily attributable to a decline in direct construction costs; higher leverage of direct overhead expense due to an increase in the number of homes delivered; and reduced sales incentives and price concessions, partially offset by higher valuation adjustments and write-offs. For the third quarter of 2012, sales incentives and price concessions totaled 9.1 percent, compared to 10.9 percent for the same period in 2011. Selling, general and administrative expense, including corporate, totaled 13.8 percent of homebuilding revenues for the third quarter of 2012, compared to 18.4 percent for the third quarter of 2011. This decrease in the selling, general and administrative expense ratio was primarily attributable to higher leverage resulting from increased revenues, cost-saving initiatives and a rise in the market value of retirement plan investments, partially offset by higher compensation expense primarily due to the impact of fluctuations in the Company's stock price. The homebuilding segments recorded $3.2 million of interest expense during the third quarter of 2012, compared to $4.0 million during the third quarter of 2011. This decrease in interest expense from the third quarter of 2011 was primarily due to the capitalization of a greater amount of interest incurred during the third quarter of 2012, which resulted from a higher level of inventory-under-development and to lower interest incurred on senior notes related to the repurchase of 6.9 percent senior notes in July 2012 and the issuance of 5.4 percent senior notes in September 2012. During the third quarter of 2012, the Company used $16.0 million of cash for operating activities, invested $200.7 million of cash primarily received from the proceeds of a debt issuance and provided $85.7 million, net, from new financing. For the quarter ended September 30, 2012, the financial services segment reported pretax earnings of $3.4 million, compared to $2.0 million for the same period in 2011. This improvement was primarily attributable to increases in locked loan pipeline and origination volumes and to higher title income, partially offset by a rise in indemnification, personnel and legal expenses and by interest related to the financial services credit facility that was entered into during December 2011. The Company's net income from discontinued operations totaled $238,000, or $0.01 per diluted share, for the quarter ended September 30, 2012, compared to a net loss of $17.4 million, or $0.39 per diluted share, for the same period in 2011. RESULTS FOR THE FIRST NINE MONTHS OF 2012 For the nine months ended September 30, 2012, the Company reported net income from continuing operations of $13.4 million, or $0.30 per diluted share, compared to a net loss of $31.1 million, or $0.70 per diluted share, for the same period in 2011. Pretax charges related to early retirement of debt totaled $9.1 million and $1.3 million during the nine months ended September 30, 2012 and 2011, respectively. Additionally, the Company had pretax charges related to inventory and other valuation adjustments and write-offs that totaled $6.0 million and $16.2 million for the nine months ended September 30, 2012 and 2011, respectively. The homebuilding segments reported pretax earnings of $31.8 million for the first nine months of 2012, compared to a pretax loss of $23.8 million for the same period in 2011. This increase was primarily due to a rise in closing volume; higher housing gross profit margin, including lower inventory and other valuation adjustments and write-offs; a decline in interest expense; and a reduced selling, general and administrative expense ratio. Homebuilding revenues increased 38.8 percent to $843.3 million for the first nine months of 2012, compared to $607.7 million for the same period in 2011. This rise in homebuilding revenues was primarily attributable to a 33.6 percent increase in closings that totaled 3,242 units for the nine-month period ended September 30, 2012, compared to 2,427 units for the same period in the prior year. For the nine months ended September 30, 2012, the average closing price of a home increased 4.0 percent to $259,000 from $249,000 for the same period in 2011. Homebuilding revenues for the first nine months of 2012 included $3.9 million from land sales, which resulted in pretax earnings of $1.6 million, compared to homebuilding revenues for the first nine months of 2011 that included $2.3 million from land sales, which resulted in pretax earnings of $198,000. New orders increased 47.9 percent to 4,226 units for the nine months ended September 30, 2012, compared to new orders of 2,857 units for the same period in 2011. The Company had an average monthly sales absorption rate of 2.2 homes per community for the nine months ended September 30, 2012, versus 1.6 homes per community for the nine months ended September 30, 2011, and an average cancellation rate of 19.4 percent for the nine months ended September 30, 2012, versus 19.7 percent for the same period in 2011. For the first nine months of 2012, new order dollars increased 55.4 percent to $1.1 billion from $720.0 million for the first nine months of 2011. Housing gross profit margin was 19.2 percent, excluding inventory valuation adjustments and write-offs, for the nine months ended September 30, 2012, compared to 17.3 percent for the nine months ended September 30, 2011. Including inventory valuation adjustments and write-offs, housing gross profit margin was 18.6 percent for the first nine months of 2012, compared to 16.1 percent for the first nine months of 2011. This improvement in housing gross profit margin was primarily attributable to a decline in land and direct construction costs; lower inventory and other valuation adjustments and write-offs; higher leverage of direct overhead expense due to an increase in the number of homes delivered; and reduced sales incentives and price concessions. For the first nine months of 2012, sales incentives and price concessions totaled 10.0 percent, compared to 11.3 percent for the same period in 2011. Selling, general and administrative expense, including corporate, totaled 15.7 percent of homebuilding revenues for the first nine months of 2012, compared to 19.1 percent for the first nine months of 2011. This decrease in the selling, general and administrative expense ratio was primarily attributable to higher leverage resulting from increased revenues, cost-saving initiatives and a rise in the market value of retirement plan investments, partially offset by higher compensation expense primarily due to the impact of fluctuations in the Company's stock price. The homebuilding segments recorded $11.0 million of interest expense during the first nine months of 2012, compared to $14.5 million during the first nine months of 2011. This decrease in interest expense from the first nine months of 2011 was primarily due to the capitalization of a greater amount of interest incurred during the first nine months of 2012, which resulted from a higher level of inventory-under-development and to lower interest incurred on senior notes related to the repurchase of 6.9 percent senior notes in July 2012 and the issuance of 5.4 percent senior notes in September 2012. For the nine-month period ended September 30, 2012, the financial services segment reported pretax earnings of $7.0 million, compared to $5.3 million for the same period in 2011. This improvement was primarily attributable to increases in locked loan pipeline and origination volumes and to higher title income, partially offset by a rise in legal, personnel and indemnification expenses and by interest related to the financial services credit facility that was entered into during December 2011. The Company's net loss from discontinued operations totaled $1.6 million, or $0.04 per diluted share, for the nine-month period ended September 30, 2012, compared to a net loss of $20.4 million, or $0.46 per diluted share, for the same period in 2011. DEBT OFFERING AND REDEMPTION During the third quarter of 2012, the Company paid $177.2 million to redeem and repurchase all of its 6.9 percent senior notes, which were due June 2013 and totaled $167.2 million, resulting in a loss of $9.1 million. In addition, the Company issued $250.0 million of 5.4 percent senior notes due October 2022. The Company will use the $246.6 million in net proceeds that it received from this offering for general corporate purposes, which may include the purchase of marketable securities. Headquartered in Southern California, Ryland is one of the nation's largest homebuilders and a leading mortgage-finance company. Since its founding in 1967, Ryland has built more than 300,000 homes and financed more than 250,000 mortgages. The Company currently operates in 13 states across the country and is listed on the New York Stock Exchange under the symbol “RYL.” For more information, please visit www.ryland.com. Note: Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties which include, among others: economic changes nationally or in the Company's local markets, including volatility and increases in interest rates, the impact of, and changes in, governmental stimulus, tax and deficit reduction programs, inflation, changes in consumer demand and confidence levels and the state of the market for homes in general; changes and developments in the mortgage lending market, including revisions to underwriting standards for borrowers and lender requirements for originating and holding mortgages, changes in government support of and participation in such market, and delays or changes in terms and conditions for the sale of mortgages originated by the Company; the availability and cost of land and the future value of land held or under development; increased land development costs on projects under development; shortages of skilled labor or raw materials used in the production of homes; increased prices for labor, land and materials used in the production of homes; increased competition, including continued competition and price pressure from distressed home sales; failure to anticipate or react to changing consumer preferences in home design; increased costs and delays in land development or home construction resulting from adverse weather conditions or other factors; potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations or governmental policies (including those that affect zoning, density, building standards, the environment and the residential mortgage industry); delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company's communities and land activities; changes in the Company's effective tax rate and assumptions and valuations related to its tax accounts; the risk factors set forth in the Company's most recent Annual Report on Form 10-K; and other factors over which the Company has little or no control.   THE RYLAND GROUP, INC. and SubsidiariesCONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except share data)         Three months ended September 30, Nine months ended September 30,   2012       2011     2012       2011   REVENUES Homebuilding $349,196 $ 241,339 $843,324 $ 607,692 Financial services   9,497       7,227     25,007       20,394   TOTAL REVENUES   358,693       248,566     868,331       628,086     EXPENSES Cost of sales 281,961 199,139 685,781 517,829 Selling, general and administrative 48,281 44,388 132,176 116,193 Financial services 6,111 5,198 18,032 15,092 Interest   3,236       3,952     10,985       14,474   TOTAL EXPENSES   339,589       252,677     846,974       663,588     OTHER (LOSS) INCOME Gain from marketable securities, net 472 680 1,437 3,290 Loss related to early retirement of debt, net   (9,146)     (477 )   (9,146)     (1,334 ) TOTAL OTHER (LOSS) INCOME   (8,674)     203     (7,709)     1,956   Income (loss) from continuing operations before taxes 10,430 (3,908 ) 13,648 (33,546 ) Tax expense (benefit)   23       (18 )   213       (2,416 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS   10,407       (3,890 )   13,435       (31,130 )   Income (loss) from discontinued operations, net of taxes   238       (17,423 )   (1,626)     (20,432 )   NET INCOME (LOSS)$10,645     $ (21,313 ) $11,809     $ (51,562 )   NET INCOME (LOSS) PER COMMON SHARE Basic Continuing operations $0.23 $ (0.09 ) $0.30 $ (0.70 ) Discontinued operations   0.01       (0.39 )   (0.04)     (0.46 ) Total 0.24 (0.48 ) 0.26 (1.16 ) Diluted Continuing operations 0.21 (0.09 ) 0.30 (0.70 ) Discontinued operations   0.01       (0.39 )   (0.04)     (0.46 ) Total $0.22 $ (0.48 ) $0.26 $ (1.16 )   AVERAGE COMMON SHARES OUTSTANDING Basic 44,825,943 44,408,594 44,643,139 44,339,168 Diluted 52,653,824 44,408,594 45,163,680 44,339,168   THE RYLAND GROUP, INC. and SubsidiariesCONSOLIDATED BALANCE SHEETS (in thousands, except share data)     September 30, 2012 December 31, 2011 (Unaudited)   ASSETS Cash, cash equivalents and marketable securities Cash and cash equivalents $224,217 $ 159,363 Restricted cash 66,933 56,799 Marketable securities, available-for-sale   508,510     347,016 Total cash, cash equivalents and marketable securities 799,660 563,178 Housing inventories Homes under construction 459,427 319,476 Land under development and improved lots 443,996 413,569 Inventory held-for-sale 6,665 11,015 Consolidated inventory not owned   43,606     51,400 Total housing inventories 953,694 795,460 Property, plant and equipment 20,621 19,920 Other 175,820 165,262 Assets of discontinued operations   5,470     35,324 TOTAL ASSETS   1,955,265     1,579,144   LIABILITIES Accounts payable 107,351 74,327 Accrued and other liabilities 159,590 140,930 Financial services credit facility 58,457 49,933 Debt 1,130,673 823,827 Liabilities of discontinued operations   1,828     6,217 TOTAL LIABILITIES   1,457,899     1,095,234   EQUITYSTOCKHOLDERS' EQUITY Preferred stock, $1.00 par value: Authorized—10,000 shares Series A Junior Participating Preferred, none outstanding - - Common stock, $1.00 par value: Authorized—199,990,000 shares Issued—44,987,573 shares at September 30, 2012 (44,413,594 shares at December 31, 2011) 44,988 44,414 Retained earnings 426,551 405,109 Accumulated other comprehensive income   244     164 TOTAL STOCKHOLDERS' EQUITY FOR THE RYLAND GROUP, INC.   471,783     449,687 NONCONTROLLING INTEREST   25,583     34,223 TOTAL EQUITY   497,366     483,910 TOTAL LIABILITIES AND EQUITY$1,955,265   $ 1,579,144   THE RYLAND GROUP, INC. and SubsidiariesSEGMENT INFORMATION (Unaudited)         Three months ended September 30, Nine months ended September 30,   2012       2011       2012       2011   EARNINGS (LOSS) BEFORE TAXES (in thousands) Homebuilding North $3,956 $ 614 $4,130 $ (9,611 ) Southeast 5,904 (924 ) 9,292 (13,550 ) Texas 7,239 3,479 15,548 5,256 West 3,728 (2,259 ) 2,840 (5,937 ) Financial services 3,386 2,029 6,975 5,302 Corporate and unallocated (13,783) (6,847 ) (25,137) (15,006 ) Discontinued operations   238       (17,423 )   (1,626)     (20,432 ) Total   $10,668     $ (21,331 )   $12,022     $ (53,978 ) NEW ORDERSUnits North 367 304 1,161 936 Southeast 584 293 1,438 873 Texas 296 264 1,004 802 West 253 102 623 246 Discontinued operations   7       45     53       182   Total   1,507       1,008       4,279       3,039   Dollars (in millions) North $105 $ 83 $336 $ 253 Southeast 135 64 334 187 Texas 82 66 267 204 West 71 31 182 76 Discontinued operations   2       10     12       38   Total   $395     $ 254     $1,131     $ 758   CLOSINGSUnits North 408 314 948 801 Southeast 426 277 1,045 690 Texas 334 292 894 755 West 144 72 355 181 Discontinued operations   10       60     77       160   Total   1,322       1,015       3,319       2,587   Average closing price (in thousands) North $291 $ 272 $281 $ 270 Southeast 224 216 220 218 Texas 263 251 257 248 West 312 306 318 287 Discontinued operations   268       205     223       201   Total   $264     $ 249     $258     $ 246   OUTSTANDING CONTRACTS September 30, Units   2012       2011   North 633 472 Southeast 914 520 Texas 543 447 West 375 118 Discontinued operations   9       82   Total   2,474       1,639   Dollars (in millions) North $190 $ 132 Southeast 215 111 Texas 149 118 West 107 39 Discontinued operations   3       18   Total $664     $ 418   Average price (in thousands) North $300 $ 280 Southeast 236 213 Texas 274 264 West 285 329 Discontinued operations   270       219   Total           $268     $ 255     THE RYLAND GROUP, INC. and SubsidiariesFINANCIAL SERVICES SUPPLEMENTAL INFORMATION (Unaudited) (in thousands, except origination data)         Three months ended September 30, Nine months ended September 30, RESULTS OF OPERATIONS   2012       2011     2012       2011   REVENUES Income from origination and sale of mortgage loans, net $7,185 $ 5,450 $18,911 $ 15,586 Title, escrow and insurance 1,917 1,592 4,918 4,320 Interest and other   395       185     1,178       488   TOTAL REVENUES 9,497 7,227 25,007 20,394 EXPENSES   6,111       5,198     18,032       15,092   PRETAX EARNINGS $3,386     $ 2,029   $6,975     $ 5,302     OPERATIONAL DATA   Retail operations: Originations (units) 778 673 2,077 1,845 Ryland Homes originations as a percentage of total originations 100.0 100.0 99.9 100.0 Ryland Homes origination capture rate 64.4% 72.5 % 68.3% 76.8 %                   OTHER CONSOLIDATED SUPPLEMENTAL INFORMATION (Unaudited) (in thousands) Three months ended September 30, Nine months ended September 30,   2012       2011     2012       2011   Interest incurred $13,567 $ 13,847 $42,674 $ 42,569 Interest capitalized during the period 10,088 9,894 30,865 28,092 Amortization of capitalized interest included in cost of sales 10,135 8,767 27,767 22,058 Depreciation and amortization     4,063       3,056       10,496       8,479     THE RYLAND GROUP, INC. and SubsidiariesNON-GAAP FINANCIAL DISCLOSURE RECONCILIATION (in thousands)         Three months ended September 30, Nine months ended September 30,   2012       2011     2012       2011   HOUSING GROSS MARGINS HOUSING REVENUES $346,965 $ 240,408 $839,434 $ 605,382 LAND AND OTHER REVENUES   2,231       931     3,890       2,310   TOTAL HOMEBUILDING REVENUES 349,196 241,339 843,324 607,692   HOUSING COST OF SALES Cost of sales 277,428 197,642 678,307 500,407 Valuation adjustments and write-offs   3,237       291     5,148       7,427   TOTAL HOUSING COST OF SALES 280,665 197,933 683,455 507,834   LAND AND OTHER COST OF SALES Cost of sales 1,296 589 2,326 2,112 Valuation adjustments and write-offs   -       617     -       7,883   TOTAL LAND COST OF SALES 1,296 1,206 2,326 9,995   TOTAL HOMEBUILDING COST OF SALES 281,961 199,139 685,781 517,829   HOUSING GROSS MARGINS $66,300 $ 42,475 $155,979 $ 97,548 HOUSING GROSS MARGIN PERCENTAGE 19.1% 17.7 % 18.6% 16.1 %   HOUSING GROSS MARGINS, excluding inventory valuation adjustments and write-offs $69,537 $ 42,766 $161,127 $ 104,975 HOUSING GROSS MARGIN PERCENTAGE, excluding inventory valuation adjustments and write-offs     20.0%     17.8 %     19.2%     17.3 %   Gross margins on home sales, excluding inventory valuation adjustments, is a non-GAAP financial measure and is defined by the Company as revenue from home sales less costs of homes sold, excluding the Company's inventory valuation adjustments recorded during the period. Management finds this to be a useful measure in evaluating the Company's performance because it discloses the profit the Company generates on homes it actually delivered during the period, as the inventory valuation adjustments relate, in part, to inventory that was not delivered during the period. It assists the Company's management in making strategic decisions regarding its construction pace, product mix and product pricing based upon the profitability it generated on homes the Company currently delivers or sells. The Company believes investors will also find gross margins on home sales, excluding inventory valuation adjustments, to be important and useful because it discloses a profitability measure that can be compared to a prior period without regard to the variability of inventory valuation adjustments. In addition, to the extent that the Company's competitors provide similar information, disclosure of its gross margins on home sales, excluding inventory valuation adjustments, helps readers of the Company's financial statements compare profits to its competitors with regard to the homes they deliver in the same period. In addition, because gross margins on home sales is a financial measure that is not calculated in accordance with GAAP, it may not be completely comparable to similarly titled measures of the Company's competitors due to potential differences in methods of calculation and charges being excluded. The Ryland Group, Inc.Drew Mackintosh, VP, Investor Relations and Corporate Communications805-367-3722