(from www.sec.gov)
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Ryland Group Inc. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 1,580,186 | (0.3) |
| Net Income | 15,859 | -- |
Description:
Ryland is one of the nation's largest home builders, selling more than 7,800 homes in 20 states in 1996. It was the fourth-largest home builder in the Washington area last year, selling 986 homes. Ryland specializes in the construction and sale of single-family houses for first-time and move-up buyers; the average price of its homes last year was $174,000. Its subsidiary Ryland Mortgage Corp. is active in making mortgages and servicing loans.
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Two years after Chad Dreier assumed the chairmanship, corporate earnings began to improve in 1996, with the company posting a $15.9 million profit—a sharp contrast to the $2.6 million loss Ryland reported in 1995. Earnings improved despite a 14 percent drop in home sales. Ryland sold 7,839 homes in 1996, down from 9,141 in 1995, due to increased competition in the mid-Atlantic, Southwest and West. It was the smallest number of homes the company has sold since 1991. Revenue fell slightly, to $1.580 billion from $1.585 billion in 1995.
Ryland attributed the improved earnings to its continuing geographic diversification program and improved cost controls. The company continues to reduce its building program in the mid-Atlantic region, where brisk competition has adversely affected sales and profits. Meanwhile, Ryland has stepped up construction in the Midwest and Southeast, where it considers sales to be stronger. It also began building in Portland, Ore.
To reduce costs, Ryland has entered into a combination of national and regional purchasing agreements—for appliances, cabinets, lighting, flooring and other home components. Those agreements have produced savings of $1,500 per home.
Pretax revenue from Ryland's mortgage company dropped by 12 percent, to $15.8 million from $17.9 million. Ryland attributed the drop to a decline in investment earnings, a result of lower gains from the sale of mortgage-backed securities. The company originated 27.2 percent fewer loans in 1996, partly due to the company's decision to sell off its wholesale mortgage business. To expand its mortgage operations, Ryland is now trying to align loan officers more closely with its sales centers and agents.
