110% Increase in Net Income Available to
Common Stockholders; 77% Increase in Pre-Tax Income; 260 Basis
Point Improvement in Operating Margin
William Lyon Homes (NYSE: WLH), a leading homebuilder in the
Western U.S., announced results for its third quarter ended
September 30, 2017.
2017 Third Quarter Highlights (Comparison to 2016 Third
Quarter)
- Net income available to common
stockholders of $27.4 million, up 110%, or $0.71 per diluted share,
up 109%
- Home sales revenue of $490.3 million,
up 43%
- New home deliveries of 851 homes, up
26%
- Net new home orders of 774, up 19%
- Dollar value of orders of $425.5
million, up 22%
- Average sales locations of 86, up
10%
- Average sales price (ASP) of new homes
delivered of $576,200, up 13%
- Dollar value of homes in backlog of
$699.3 million, up 18%
- Units in backlog of 1,208, up 13%
- Homebuilding gross margin percentage of
18.1%
- Homebuilding gross margin of $88.6
million, up 56%
- Adjusted homebuilding gross margin
percentage of 23.6%, up 140 basis points
- SG&A percentage of 9.2%, compared
to 10.4%
- Operating income of $43.2 million, up
102%
- Pre-Tax Income of $44.0 million, up
77%
- Adjusted EBITDA of $72.1 million, up
68%
“We are extremely pleased with our results for the third
quarter, with significant improvements in homebuilding revenues to
$490.3 million, up 43%, pre-tax income of $44.0 million, up 77%,
net income of $27.4 million, up 110%, and earnings per share on a
diluted basis of $0.71, up 109%,” said Matthew R. Zaist, President
and Chief Executive Officer. “As we expected, the third quarter
represented an inflection point for our GAAP homebuilding gross
margins, which were 18.1%, an increase of 160 basis points above
the second quarter of 2017 and 150 basis points year-over-year. Our
third quarter results included operating margin improvement of 260
basis points year-over-year, which is a testament to improving our
operating discipline around land acquisition and cost control, as
well as the strength of our Western markets.”
Mr. Zaist continued, “Our third quarter net new home orders were
up 19% year-over-year, to 774, and our monthly absorption rate for
the third quarter was 3.0 sales per community, up from 2.8 sales
per community in the third quarter of 2016. The strong performance
year-to-date, as well as our strong backlog, positions us well to
achieve our goals for the full year. The Company expects fourth
quarter results to include backlog conversion of 85% to 92%,
sequential gross margin improvement of 50 to 70 basis points,
sequential SG&A improvement of 20 to 30 basis points and
pre-tax income of $60.0 million to $65.0 million.”
Operating Results
Home sales revenue for the third quarter of 2017 was $490.3
million, as compared to $342.6 million in the year-ago period, an
increase of 43%. The increase was driven by a 26% increase in
deliveries to 851 homes, compared to 673 in the third quarter of
2016, combined with an increase in the average sales price of homes
delivered to $576,200, up 13% from the prior year.
The dollar value of orders for the third quarter of 2017 was
$425.5 million, an increase of 22%, from $348.7 million in the
year-ago period. Net new home orders for the quarter were 774, up
19% from 651 in the third quarter of 2016. The overall increase in
net new home orders was driven by an increase in community count to
86 average sales locations, from 78 in the year-ago period,
combined with a 7% increase in the monthly absorption rate from 2.8
sales per community in the year-ago period to 3.0 sales per
community in the current period.
The dollar value of homes in backlog was $699.3 million as of
September 30, 2017, an increase of 18%, compared to $591.0 million
as of September 30, 2016. The increase was driven by a 13% increase
in units in backlog to 1,208 from 1,071 in the year-ago period and
a 5% increase in ASP in backlog to $578,900 from $551,900 in the
third quarter of 2016.
Homebuilding gross margin percentage for homes closed during the
third quarter of 2017 was 18.1%, up from 16.6% gross margin
percentage in the year-ago period and 16.5% in the second quarter
of 2017. Adjusted homebuilding gross margin percentage for the
quarter was 23.6%, up from 22.2% adjusted gross margin percentage
in the prior year period and 22.1% in the second quarter of
2017.
Sales and marketing expense during the third quarter of 2017 was
4.5% of homebuilding revenue, compared to 5.3% in the second
quarter of 2016, driven by lower advertising costs, compared to the
year-ago quarter of 5.3% of revenue. The Company has focused on
more efficient advertising spending using social media and mobile
applications to offset higher outside broker costs. General and
administrative expenses decreased to 4.7% of homebuilding revenue,
compared to 5.1% in the year-ago quarter, as we continue to benefit
from a lower relative cost structure due to the higher revenue and
positive operating leverage.
Balance Sheet Update
At quarter end, cash and cash equivalents totaled $43.6 million,
real estate inventories totaled $1.9 billion, total assets were
$2.1 billion and total equity was $826.0 million. Total debt to
book capitalization was 57.1%, and net debt to total capital (net
of cash) was 56.1% at September 30, 2017, compared to 61.6% and
60.8% at September 30, 2016, and 58.6% and 57.6% at December 31,
2016, respectively.
Conference Call
The Company will host a conference call to discuss these results
today, Tuesday, October 31, 2017 at 9:00 a.m. Pacific Time. The
call will be available via both the telephone at (855) 851-4524 or
(720) 634-2900, conference ID #99544612, or through the Company’s
website at www.lyonhomes.com in the
Investor Relations section of the site.
A replay of the call will be available through November 7, 2017
by dialing (855) 859-2056 or (404) 537-3406, conference ID
#99544612. A webcast replay of the call will also be available on
the Company’s website approximately two hours after the
broadcast.
About William Lyon Homes
William Lyon Homes is one of the largest Western U.S. regional
homebuilders. Headquartered in Newport Beach, California, the
Company is primarily engaged in the design, construction, marketing
and sale of single-family detached and attached homes in
California, Arizona, Nevada, Colorado, Washington and Oregon. Its
core markets include Orange County, Los Angeles, the Inland Empire,
the San Francisco Bay Area, Phoenix, Las Vegas, Denver, Portland
and Seattle. The Company has a distinguished legacy of more than 60
years of homebuilding operations, over which time it has sold in
excess of 101,000 homes. The Company markets and sells its homes
under the William Lyon Homes brand in all of its markets except for
Washington and Oregon, where the Company operates under the Polygon
Northwest brand.
Forward-Looking Statements
Certain statements contained in this release and the
accompanying comments during our conference call that are not
historical information may constitute “forward-looking statements”
as defined by the Private Securities Litigation Reform Act of 1995,
including, but not limited to, forward-looking statements related
to: anticipated pre-tax income, gross margin performance, backlog
conversion rates, operating and financial results for the fourth
quarter of 2017 and full year 2017, community count growth and
project performance, market and industry trends, the continued
housing market recovery, average sale price of homes to be closed
in various periods, SG&A percentage, future cash needs and
liquidity, minority interest from our homebuilding joint ventures,
leverage ratios and reduction strategies and land acquisition
spending. The forward-looking statements involve risks and
uncertainties and actual results may differ materially from those
projected or implied. The Company makes no commitment, and
disclaims any duty, to update or revise any forward-looking
statements to reflect future events or changes in these
expectations. Further, certain forward-looking statements are based
on assumptions of future events which may not prove to be accurate.
Factors that may impact such forward-looking statements include,
among others: adverse weather conditions and impact from natural
disasters such as the recent fire activity in Northern California;
the availability of labor and homebuilding materials and increased
construction cycle times; the availability and timing of mortgage
financing; our financial leverage and level of indebtedness and any
inability to comply with financial and other covenants under our
debt instruments; continued volatility and worsening in general
economic conditions either internationally, nationally or in
regions in which we operate; increased outside broker costs;
increased costs of homebuilding materials; changes in governmental
laws and regulations and compliance, increased costs, fees and
delays associated therewith; potential changes to the tax code;
worsening in markets for residential housing; the impact of
construction defect, product liability and home warranty claims,
including the adequacy of self-insurance accruals, and the
applicability and sufficiency of our insurance coverage; defects in
manufactured products or other homebuilding materials; decline in
real estate values resulting in impairment of our real estate
assets; volatility in the banking industry, credit and capital
markets; terrorism or other hostilities involving the United States
and other geopolitical risks; building moratorium or “slow-growth”
or “no-growth” initiatives that could be implemented in states in
which we operate; changes in mortgage and other interest rates;
conditions in the capital, credit and financial markets, including
mortgage lending standards and the availability of mortgage
financing; changes in generally accepted accounting principles or
interpretations of those principles; competition for home sales
from other sellers of new and resale homes; cancellations and our
ability to realize our backlog; the occurrence of events such as
landslides, soil subsidence and earthquakes that are uninsurable,
not economically insurable or not subject to effective
indemnification agreements; limitations on our ability to utilize
our tax attributes; whether an ownership change occurred that
could, under certain circumstances, have resulted in the limitation
of our ability to offset prior years’ taxable income with net
operating losses; the timing of receipt of regulatory approvals and
the opening of projects; the availability and cost of land for
future development; and additional factors discussed under the
sections captioned “Risk Factors” included in our annual and
quarterly reports filed with the Securities and Exchange
Commission. The foregoing list is not exhaustive. New risk factors
may emerge from time to time and it is not possible for management
to predict all such risk factors or to assess the impact of such
risk factors on our business.
WILLIAM LYON HOMES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands except number of shares
and per share data)
(unaudited)
Three Three Months Months
Ended Ended September 30, September 30,
2017 2016 Operating
revenue Home sales $ 490,304 $ 342,628 Construction services
35 86 490,339 342,714
Operating costs Cost of sales — homes (401,700 ) (285,896 )
Construction services (35 ) (86 ) Sales and marketing (21,935 )
(18,246 ) General and administrative (22,951 ) (17,360 ) Other
(548 ) 198 (447,169 ) (321,390 )
Operating income 43,170 21,324 Equity in income of unconsolidated
joint ventures 1,160 1,435 Other (loss) income, net (365 )
2,050 Income before provision for income taxes 43,965
24,809 Provision for income taxes (13,905 ) (8,295 )
Net income 30,060 16,514 Less: Net income attributable to
noncontrolling interests (2,642 ) (3,445 ) Net income
available to common stockholders $ 27,418 $ 13,069
Income per common share: Basic $ 0.74 $ 0.36 Diluted $ 0.71
$ 0.34 Weighted average common shares outstanding: Basic 37,059,483
36,801,464 Diluted 38,583,341 38,333,027
WILLIAM LYON HOMES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands except number of shares
and per share data)
(unaudited)
Nine Nine Months
Months Ended Ended September 30,
September 30, 2017 2016
Operating revenue Home sales $ 1,171,791 $ 928,982
Construction services 94 3,810
1,171,885 932,792 Operating costs Cost of
sales — homes (973,212 ) (769,705 ) Construction services (41 )
(3,458 ) Sales and marketing (57,924 ) (51,351 ) General and
administrative (61,447 ) (51,879 ) Other (1,548 )
(612 ) (1,094,172 ) (877,005 ) Operating income
77,713 55,787 Equity in income of unconsolidated joint ventures
2,622 3,810 Other (loss) income, net (12 ) 2,803
Income before extinguishment of debt 80,323 62,400 Loss on
extinguishment of debt (21,828 ) - Income
before provision for income taxes 58,495 62,400 Provision for
income taxes (17,480 ) (20,859 ) Net income 41,015
41,541 Less: Net income attributable to noncontrolling interests
(4,643 ) (4,897 ) Net income available to common
stockholders $ 36,372 $ 36,644 Income per
common share: Basic $ 0.98 $ 1.00 Diluted $ 0.95 $ 0.96 Weighted
average common shares outstanding: Basic 37,007,144 36,746,727
Diluted 38,381,292 38,314,021
WILLIAM LYON HOMES
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares
and par value per share)
September 30, December 31, 2017
2016 (unaudited) ASSETS Cash and cash
equivalents $ 43,604 $ 42,612 Receivables 9,719 9,538 Escrow
proceeds receivable 228 85 Real estate inventories 1,855,658
1,771,998 Investment in unconsolidated joint ventures 8,225 7,282
Goodwill 66,902 66,902 Intangibles, net of accumulated amortization
of $4,640 as of September 30, 2017 and December 31, 2016 6,700
6,700 Deferred income taxes 73,597 75,751 Lease right-of-use assets
15,074 13,129 Other assets, net 21,152 17,283 Total
assets $ 2,100,859 $ 2,011,280
LIABILITIES AND EQUITY
Accounts payable $ 84,116 $ 74,282 Accrued expenses 93,140 92,919
Revolving credit facility 50,000 29,000 Land notes payable 5,226
24,692 Joint venture notes payable 105,785 102,076 Subordinated
amortizing note 1,619 7,225 53/4% Senior Notes due April 15, 2019
149,226 148,826 8 1/2% Senior Notes due November 15, 2020 - 422,817
7% Senior Notes due August 15, 2022 346,556 346,014 57/8% Senior
Notes due January 31, 2025 439,221 - 1,274,889
1,247,851 Commitments and contingencies 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, 2017 and December 31, 2016
- - Common stock, Class A, par value $0.01 per share; 150,000,000
shares authorized; 29,193,050 and 28,909,781 shares issued,
28,043,563 and 27,907,724 shares outstanding at September 30, 2017
and December 31, 2016, respectively 289 290 Common stock, Class B,
par value $0.01 per share; 30,000,000 shares authorized; 3,813,884
shares issued and outstanding at September 30, 2017 and December
31, 2016 38 38 Additional paid-in capital 421,626 419,099 Retained
earnings 314,031 277,659 Total William Lyon Homes
stockholders' equity 735,984 697,086 Noncontrolling interests
89,986 66,343 Total equity 825,970
763,429 Total liabilities and equity $ 2,100,859 $ 2,011,280
WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING
INFORMATION
(unaudited)
Three Months Ended September 30, 2017
2016 Consolidated
Consolidated Percentage % Total Total
Change Selected Financial Information (1) (dollars
in thousands) Homes closed 851 673
26 % Home sales revenue $ 490,304 $ 342,628 43 % Cost of sales
(excluding interest and purchase accounting adjustments)
(374,525 ) (266,666 ) 40 % Adjusted homebuilding gross
margin (2) $ 115,779 $ 75,962 52 % Adjusted
homebuilding gross margin percentage (2) 23.6 % 22.2
% 7 % Interest in cost of sales (22,923 ) (13,543 ) 69 % Purchase
accounting adjustments (4,252 ) (5,687 ) (25 %) Gross
margin $ 88,604 $ 56,732 56 % Gross margin percentage
18.1 % 16.6 % 9 %
Number of homes
closed California 300 169 78 % Arizona 133 108 23 % Nevada 74
85 (13 %) Colorado 44 70 (37 %) Washington 116 74 57 % Oregon
184 167 10 % Total 851
673 26 %
Average sales price of homes
closed California $ 769,800 $ 659,400 17 % Arizona 297,800
266,300 12 % Nevada 580,600 583,500 0 % Colorado 563,900 504,500 12
% Washington 618,900 570,900 8 % Oregon 435,900
450,700 (3 %) Company Average $ 576,200 $ 509,100 13
%
Number of net new home orders California 238 191 25
% Arizona 124 117 6 % Nevada 66 66 0 % Colorado 82 54 52 %
Washington 116 66 76 % Oregon 148 157
(6 %) Total 774 651 19 %
Average number of sales locations during period California
23 23 0 % Arizona 7 9 (22 %) Nevada 13 12 8 % Colorado 16 10 60 %
Washington 11 6 83 % Oregon 16 18 (11
%) Total 86 78 10 %
(1) For the periods presented, the Company is reporting in six
segments: California, Arizona, Nevada, Colorado, Washington and
Oregon.
(2) Adjusted homebuilding gross margin is a financial measure
that is not prepared in accordance with U.S. generally accepted
accounting principles, or U.S. GAAP. It is used by management in
evaluating operating performance and in making strategic decisions
regarding sales pricing, construction and development pace, product
mix and other operating decisions. We believe this information is
meaningful as it isolates the impact that interest and purchase
accounting adjustments have on homebuilding gross margin and allows
investors to make better comparisons with our competitors.
WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING
INFORMATION
(unaudited)
Nine Months Ended September 30,
2017 2016
Consolidated Consolidated Percentage %
Total Total Change Selected Financial
Information (1) (dollars in thousands) Homes closed
2,181 1,879 16 % Home sales revenue $
1,171,791 $ 928,982 26 % Cost of sales (excluding interest and
purchase accounting adjustments) (907,929 ) (710,457
) 28 % Adjusted homebuilding gross margin (2) $ 263,862 $
218,525 21 % Adjusted homebuilding gross margin percentage
(2) 22.5 % 23.5 % (4 %) Interest in cost of sales
(55,220 ) (39,310 ) 40 % Purchase accounting adjustments
(10,063 ) (19,938 ) (50 %) Gross margin $ 198,579 $
159,277 25 % Gross margin percentage 16.9 %
17.1 % (1 %)
Number of homes closed California 637
458 39 % Arizona 408 324 26 % Nevada 175 220 (20 %) Colorado 140
170 (18 %) Washington 292 225 30 % Oregon 529
482 10 % Total 2,181 1,879 16 %
Average sales price of homes closed California $
725,600 $ 666,800 9 % Arizona 290,900 263,600 10 % Nevada 591,100
586,300 1 % Colorado 551,100 505,200 9 % Washington 635,400 500,100
27 % Oregon 424,900 437,300 (3 %)
Company Average $ 537,300 $ 494,400 9 %
Number of net new
home orders California 783 591 32 % Arizona 401 367 9 % Nevada
236 229 3 % Colorado 229 204 12 % Washington 432 238 82 % Oregon
575 582 (1 %) Total 2,656
2,211 20 %
Average number of sales
locations during period California 23 20 15 % Arizona 8 8 0 %
Nevada 13 12 8 % Colorado 14 10 40 % Washington 9 6 50 % Oregon
18 17 6 % Total 85
73 16 %
(1) For the periods presented, the Company is reporting in six
segments: California, Arizona, Nevada, Colorado, Washington and
Oregon.
(2) Adjusted homebuilding gross margin is a financial measure
that is not prepared in accordance with U.S. generally accepted
accounting principles, or U.S. GAAP. It is used by management in
evaluating operating performance and in making strategic decisions
regarding sales pricing, construction and development pace, product
mix and other operating decisions. We believe this information is
meaningful as it isolates the impact that interest and purchase
accounting adjustments have on homebuilding gross margin and allows
investors to make better comparisons with our competitors.
WILLIAM LYON HOMES
SELECTED FINANCIAL AND OPERATING
INFORMATION
(unaudited)
As of September 30, 2017
2016 Consolidated Consolidated Percentage
% Total Total Change Backlog of homes
sold but not closed at end of period California 370 327 13 %
Arizona 197 252 (22 %) Nevada 120 124 (3 %) Colorado 164 112 46 %
Washington 192 57 237 % Oregon 165 199 (17 %) Total
1,208 1,071 13 %
Dollar amount of homes
sold but not closed at end of period (in thousands) California
$ 294,861 $ 260,082 13 % Arizona 60,467 71,609 (16 %) Nevada 81,192
78,285 4 % Colorado 69,085 59,451 16 % Washington 119,299 36,518
227 % Oregon 74,424 85,093 (13 %) Total $ 699,328 $
591,038 18 %
Lots owned and controlled at end of
period Lots owned California 1,616 1,625 (1 %) Arizona
4,541 4,877 (7 %) Nevada 2,871 3,131 (8 %) Colorado 1,376 1,544 (11
%) Washington 1,363 1,387 (2 %) Oregon 1,806 1,303 39
% Total 13,573 13,867 (2 %)
Lots
controlled California 915 1,069 (14 %) Arizona 157 - N/M Nevada
410 51 704 % Colorado 292 232 26 % Washington 797 1,081 (26 %)
Oregon 1,800 1,849 (3 %) Total 4,371
4,282 2 %
Total lots owned and controlled California
2,531 2,694 (6 %) Arizona 4,698 4,877 (4 %) Nevada 3,281 3,182 3 %
Colorado 1,668 1,776 (6 %) Washington 2,160 2,468 (12 %) Oregon
3,606 3,152 14 % Total 17,944 18,149 (1
%)
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL
INFORMATION
(dollars in thousands)
(unaudited)
Three Three Nine Nine Months
Months Months Months Ended Ended
Ended Ended September 30, September 30,
September 30, September 30, 2017
2016 2017
2016 Net income available to common
stockholders $ 27,418 $ 13,069 $ 36,372 $ 36,644 Net income,
adjusted for loss on extinguishment of debt, net of tax benefit (3)
$ 27,418 $ 13,069 $ 50,448 $ 36,644 Net cash provided by (used in)
operating activities $ 43,822 $ (8,073 ) $ (22,990 ) $ (82,978 )
Interest incurred $ 18,112 $ 21,293 $ 56,358 $ 62,112 Adjusted
EBITDA (1) $ 72,073 $ 42,905 $ 147,884 $ 124,895 Adjusted EBITDA
Margin (2) 14.7 % 12.5 % 12.6 % 13.4 % Ratio of adjusted EBITDA to
interest incurred 4.0 2.0 2.6 2.0
Balance Sheet Data
September 30, December 31,
2017 2016 Cash and
cash equivalents $ 43,604 $ 42,612 Total William Lyon Homes
stockholders’ equity 735,984 697,086 Noncontrolling interest 89,986
66,343 Total debt 1,097,633 1,080,650
Total capital $ 1,923,603 $ 1,844,079 Ratio of
debt to total capital 57.1 % 58.6 % Ratio of net debt to total
capital (net of cash) 56.1 % 57.6 %
(1) Adjusted EBITDA means net income available to common
stockholders plus (i) provision for income taxes, (ii) interest
expense, (iii) amortization of capitalized interest included in
cost of sales, (iv) stock based compensation, (v) depreciation and
amortization, (vi) non-cash purchase accounting adjustments, (vii)
cash distributions of income from unconsolidated joint ventures,
(viii) equity in income of unconsolidated joint ventures, and (ix)
loss on extinguishment of debt. Other companies may calculate
adjusted EBITDA differently. Adjusted EBITDA is not a financial
measure prepared in accordance with U.S. GAAP. Adjusted EBITDA is
presented herein because management believes the presentation of
adjusted EBITDA provides useful information to the Company’s
investors regarding the Company’s financial condition and results
of operations because adjusted EBITDA is a widely utilized
indicator of a company's operating performance. Adjusted EBITDA
should not be considered as an alternative for net income, cash
flows from operating activities and other consolidated income or
cash flow statement data prepared in accordance with accounting
principles generally accepted in the United States or as a measure
of profitability or liquidity. A reconciliation of net income
available to common stockholders to adjusted EBITDA is provided in
the following table:
(2) Calculated as Adjusted EBITDA as a percentage of operating
revenue.
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL
INFORMATION
(dollars in thousands)
(unaudited)
Three Three Nine
Nine Months Months Months Months
Ended Ended Ended Ended September
30, September 30, September 30, September
30, 2017 2016
2017 2016 Net
income available to common stockholders $ 27,418 $ 13,069 $ 36,372
$ 36,644 Provision for income taxes 13,905 8,295 17,480 20,859
Interest expense Interest incurred 18,112 21,293 56,358 62,112
Interest capitalized (18,112 ) (21,293 ) (56,358 ) (62,112 )
Amortization of capitalized interest included in cost of sales
22,940 14,981 55,237 41,742 Stock based compensation 3,045 1,526
6,260 4,087 Depreciation and amortization 535 503 1,426 1,508
Non-cash purchase accounting adjustments 4,252 5,687 10,063 22,969
Cash distributions of income from unconsolidated joint ventures
1,138 279 1,840 896 Equity in income of unconsolidated joint
ventures (1,160 ) (1,435 ) (2,622 ) (3,810 ) Loss on extinguishment
of debt - - 21,828
- Adjusted EBITDA $ 72,073 $ 42,905 $ 147,884
$ 124,895
WILLIAM LYON HOMES
SUPPLEMENTAL FINANCIAL
INFORMATION
(dollars in thousands)
(unaudited)
(3) Adjusted net income means net income
available to common stockholders plus the loss for the
extinguishment of the 8.5% Senior Notes. Adjusted net income is not
a financial measure prepared in accordance with U.S. GAAP. Adjusted
net income is presented herein because management believes the
presentation of adjusted net income provides useful information to
the Company’s investors regarding the Company’s results of
operations because adjusted net income isolates the impact of the
infrequent extinguishment fees. Adjusted net income should not be
considered as an alternative for net income, cash flows from
operating activities and other consolidated income or cash flow
statement data prepared in accordance with accounting principles
generally accepted in the United States or as a measure of
profitability or liquidity. A reconciliation of net income
available to common stockholders to adjusted net income is provided
in the following table:
Three Nine Months
Months Ended Ended September 30,
September 30, 2017 2017
Net income available to common stockholders $ 27,418 $ 36,372 Add:
Loss on extinguishment of debt - 21,828 Less: Income tax benefit
applicable to loss on extinguishment of debt - (7,752
)
Net income, adjusted for loss on
extinguishment of debt, net of tax benefit
$ 27,418 $ 50,448 Diluted weighted average common shares
outstanding 38,583,341 38,381,292 Adjusted net income excluding
noncontrolling interest per diluted share $ 0.71 $ 1.31
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171031005550/en/
Investor/Media Contacts:Financial Profiles, Inc.Larry
Clark, (310) 622-8223WLH@finprofiles.com
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