William Lyon Homes Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Earnings Guidance for the Third Quarter and Full Year of 2018
For the six months, the company reported operating revenue of $892,820,000 against $681,546,000 a year ago. Operating income was $48,603,000 against $34,543,000 a year ago. Income before provision for income taxes was $50,414,000 against $14,530,000 a year ago. Net income available to common stockholders was $30,783,000 against $8,954,000 a year ago. Basic income per common share was $0.81 against $0.24 a year ago. Diluted income per common share was $0.77 against $0.23 a year ago. Adjusted EBITDA was $104,127,000 against $70,000,000 a year ago.
For the third quarter of 2018, the company expects backlog conversion rate to be between 63% and 68%. Average sales price is expected to be approximately $510,000 based primarily on geographic and product mix. The company anticipates GAAP gross margins in the low 18s. Also during the third quarter, the company expects income attributable to no controlling interest to be approximately $5 million to $5.5 million.
Based on the first half results and mix of expected closings, the company believe that full year results will include new home deliveries of approximately 4,400 units to 4,700 units, home sales revenue of approximately $2.25 billion to $2.35 billion and pretax income before no controlling interest of approximately $175 million to $185 million. The company expects a tax rate for the remainder of 2018 of approximately 24%.