William Lyon Homes (WLH) 8-K William Lyon Homes Reports Second Quarter 2015 Results

Exhibit 99.1

WILLIAM LYON HOMES REPORTS SECOND QUARTER 2015 RESULTS

NEWPORT BEACH, CA — August 7, 2015 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for its 2015 second quarter ended June 30, 2015.

2015 Second Quarter Highlights (Comparison to 2014 Second Quarter)

• Net income available to common stockholders of $12.3 million, or $0.32 per diluted share

• Net new home orders of 843, up 117%

• Dollar value of orders of $374.1 million, up 91%

• Home sales revenue of $247.7 million, up 47%

• Consolidated revenue of $254.7 million, up 42%

• New home deliveries of 553 homes, up 65%

• Average sales locations of 67, up 76%

• Dollar value of homes in backlog of $471.5 million, up 55%

• Average sales price (ASP) of new homes delivered of $448,000

• Homebuilding gross margin of $47.5 million, up 19%

• Homebuilding gross margin percentage of 19.2%

• Adjusted homebuilding gross margin percentage of 26.0%

• SG&A percentage of 11.4%, compared to 11.9%

• Adjusted EBITDA of $38.8 million, up 46%

“Our second quarter results have demonstrated strong business momentum and execution as we benefitted from a healthy spring selling season and our expanded geographic footprint,” said William H. Lyon, Co-Chief Executive Officer. “We recorded significant year-over-year increases across a number of key operational metrics, including home sales revenue, the unit and dollar value of orders and backlog, and the number of active selling communities. For the quarter ended June 30, 2015, we generated net income of $12.3 million, or $0.32 per diluted share. Positive demographics and employment growth in our markets in excess of the national average are both leading to solid demand against a backdrop of limited supply.”

Matthew R. Zaist, Co-Chief Executive Officer and President stated, “We are very proud of the execution of our operating teams during the second quarter. Net new home orders more than doubled to 843, the highest total since the second quarter of 2005, averaging a monthly absorption rate of 4.2 orders per project, up 23% from a rate of 3.4 in the second quarter of 2014, and up 17%, sequentially, from a rate of 3.6 in the first quarter of 2015. Our July sales continued our year-over-year improvement trends, with net orders up 130% and monthly absorption rates up 30% year-over-year.”

Operating Results

Home sales revenue for the second quarter of 2015 was $247.7 million, as compared to $168.2 million in the year-ago period, an increase of 47%. Our performance was driven by a 65% increase in the number of deliveries to 553 homes, compared to 336 homes delivered in the second quarter of 2014. Average sales price of homes delivered was $448,000 in the quarter, compared to $500,500 in the year-ago period. The decline in ASP reflects changes in geographic and product mix.

The dollar value of orders for the second quarter of 2015 was $374.1 million, an increase of 91%, from $195.4 million in the year-ago period. Net new home orders for the quarter more than doubled to 843, from 388 in the second quarter of 2014. The overall increase in net new home orders was primarily driven by an increase in community count to 67 average sales locations, from 38 in the year-ago period, and an increase in the monthly absorption rate from 3.4 sales per month per project in the second quarter of 2014 to 4.2 sales per month in the current period.

The dollar value of homes in backlog was $471.5 million as of June 30, 2015, an increase of 55% compared to $303.3 million as of June 30, 2014. The increase was driven by a 78% increase in units in backlog to 968 from 544 in the year-ago period.

Adjusted homebuilding gross margin percentage was 26.0% during the second quarter of 2015. Homebuilding gross margins for the quarter were 19.2%. In conjunction with the adoption of purchase accounting related to the Polygon acquisition, GAAP margins were impacted by approximately 330 basis points during the quarter.

SG&A expense during the second quarter of 2015 was 11.4% of homebuilding revenue, compared with 11.9% in the year-ago quarter. Breaking down the components of SG&A, sales and marketing expense was 6.0% of homebuilding revenue during the quarter, compared to 5.3% in the year-ago quarter, driven primarily by higher outside broker expenses, compared to the prior year period. General administrative expenses decreased to 5.4% of homebuilding revenue, compared to 6.6% in the year-ago quarter, as we continued to leverage off of a larger operating platform with a lower relative cost structure.

Balance Sheet Update

At quarter end, cash, cash equivalents and restricted cash totaled $61.1 million, escrow proceeds receivable totaled $8.3 million, real estate inventories totaled $1.6 billion, total assets were $1.8 billion and total equity was $618.8 million. Net debt to net book capitalization was 61.9%, and total debt to total book capitalization was 63.3% at June 30, 2015.

Conference Call

The Company will host a conference call to discuss these results today, Friday, August 7, 2015 at 9:00 a.m. Pacific Time. The call will be available via both the telephone at (855) 851-4524 or (720) 634-2900, passcode #88709997, 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 August 14, 2015 by dialing (855) 859-2056 or (404) 537-3406, passcode #88709997. 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, San Diego, the San Francisco Bay Area, Phoenix, Las Vegas, Denver, Seattle and Portland. The Company has a distinguished legacy of more than 59 years of homebuilding operations, over which time it has sold in excess of 94,000 homes. The Company

markets and sells its homes under the William Lyon Homes brand in all of its markets except for Colorado, where the Company operates under the Village Homes brand, and Washington and Oregon, where the Company operates under the Polygon Northwest brand.

Financial data included herein includes the Washington and Oregon operations from January 1, 2015 through June 30, 2015. There were no operations in the Company’s Washington and Oregon divisions for the three and six months ended June 30, 2014; therefore, period-over-period comparisons for Washington and Oregon are not meaningful (“NM”) as indicated in the comparative tables in the schedules attached to this release.

Certain statements contained in this release and the accompanying comments during our conference call that are not historical information contain forward-looking statements, including, but not limited to, statements related to: market and industry trends, the anticipated financial and operating results from execution of the Company’s growth strategy and focus on markets in the Western United States, the continued housing market recovery, expected community count growth, anticipated operating results for the third quarter of 2015, anticipated ASP, expected SG&A percentage, gross margins, future cash needs and liquidity, leverage ratios and backlog conversion rates. 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: our ability to realize the anticipated benefits from the acquisition of Polygon Northwest; our ability to integrate successfully the Polygon Northwest operation with our existing operations; worsening in general economic conditions either internationally, nationally or in regions in which we operate; conditions in our newly entered markets and newly acquired operations; worsening in markets for residential housing; decline in real estate values resulting in impairment of our real estate assets; volatility in the banking industry and credit markets; uncertainties in the capital and securities markets; terrorism or other hostilities involving the United States; building moratorium or “slow-growth” or “no-growth” initiatives that could be implemented in states in which we operate; 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; 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; changes in prices of homebuilding materials; the availability of labor and homebuilding materials; adverse weather conditions, including the continued drought in California; 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; changes in governmental laws and regulations; our financial leverage and level of indebtedness and any inability to comply with financial and other covenants under our debt instruments; whether we are able to refinance the outstanding balances of our debt obligations at their maturity; anticipated tax refunds; limitations on our ability to utilize our tax attributes; limitations on our ability to reverse any

remaining portion of our valuation allowance with respect to our deferred tax assets; the timing of receipt of regulatory approvals and the opening of projects; 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; 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.

Investor/Media Contacts:

Larry Clark

Financial Profiles, Inc.

(310) 622-8223

WLH@finprofiles.com

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except number of shares and per share data)

(unaudited)

	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014
Operating revenue
Home sales	$	247,740		$	168,157
Lots, land and other sales		—			1,711
Construction services		6,955			9,941
		254,695			179,809
Operating costs
Cost of sales — homes		(200,248	)		(128,306	)
Cost of sales — lots, land and other		—			(1,320	)
Construction services		(5,898	)		(8,405	)
Sales and marketing		(14,904	)		(8,924	)
General and administrative		(13,415	)		(11,019	)
Amortization of intangible assets		(462	)		(502	)
Other		94			(729	)
		(234,833	)		(159,205	)
Operating income		19,862			20,604
Other income, net		642			354
Income before provision for income taxes		20,504			20,958
Provision for income taxes		(7,254	)		(6,206	)
Net income		13,250			14,752
Less: Net income attributable to noncontrolling interests		(973	)		(2,467	)
Net income available to common stockholders	$	12,277		$	12,285
Income per common share:
Basic	$	0.34		$	0.39
Diluted	$	0.32		$	0.38
Weighted average common shares outstanding:
Basic		36,565,369			31,224,252
Diluted		38,026,866			32,750,108

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except number of shares and per share data)

(unaudited)

	Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Operating revenue
Home sales	$	437,455		$	308,456
Lots, land and other sales		—			1,711
Construction services		14,408			19,593
		451,863			329,760
Operating costs
Cost of sales — homes		(354,329	)		(234,518	)
Cost of sales — lots, land and other		—			(1,320	)
Construction services		(11,927	)		(16,473	)
Sales and marketing		(27,128	)		(15,482	)
General and administrative		(27,363	)		(23,155	)
Amortization of intangible assets		(665	)		(1,120	)
Other		(194	)		(1,291	)
		(421,606	)		(293,359	)
Operating income		30,257			36,401
Other income, net		1,423			473
Income before provision for income taxes		31,680			36,874
Provision for income taxes		(10,824	)		(10,780	)
Net income		20,856			26,094
Less: Net income attributable to noncontrolling interests		(1,897	)		(5,112	)
Net income available to common stockholders	$	18,959		$	20,982
Income per common share:
Basic	$	0.52		$	0.67
Diluted	$	0.50		$	0.64
Weighted average common shares outstanding:
Basic		36,514,962			31,159,422
Diluted		37,876,696			32,669,560

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

(in thousands, except number of shares and par value per share)

	June 30, 2015		December 31, 2014
	(unaudited)
ASSETS
Cash and cash equivalents	$	60,645	$	52,771
Restricted cash		504		504
Escrow proceeds receivable		8,253		2,915
Receivables		20,665		21,250
Real estate inventories		1,552,251		1,404,639
Deferred loan costs, net		15,088		15,988
Goodwill		60,887		60,887
Intangibles, net of accumulated amortization of $10,085 and $9,420 as of June 30, 2015 and December 31, 2014, respectively		6,993		7,657
Deferred income taxes, net, including valuation allowance of $1,584 and $1,626 at June 30, 2015 and December 31, 2014, respectively		89,825		88,039
Other assets, net		24,688		19,777
Total assets	$	1,839,799	$	1,674,427
LIABILITIES AND EQUITY
Accounts payable	$	69,516	$	51,814
Accrued expenses		85,267		85,366
Notes payable		169,281		39,235
Subordinated Amortizing Notes		17,349		20,717
53/4% Senior Notes due April 15, 2019		150,000		150,000
8 1/2% Senior Notes due November 15, 2020		429,545		430,149
7% Senior Notes due August 15, 2022		300,000		300,000
		1,220,958		1,077,281
Commitments and contingencies
Equity:
William Lyon Homes stockholders’ equity
Preferred stock, par value $0.01 per share; 10,000,000 and no shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively		—		—
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,370,514 and 28,073,438 shares issued, 27,641,834 and 27,487,257 outstanding at June 30, 2015 and December 31, 2014, respectively		284		281
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,844 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively		38		38
Additional paid-in capital		410,597		408,969
Retained earnings		179,586		160,627
Total William Lyon Homes stockholders’ equity		590,505		569,915
Noncontrolling interests		28,336		27,231
Total equity		618,841		597,146
Total liabilities and equity	$	1,839,799	$	1,674,427

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Three Months Ended June 30,
	2015			2014			Percentage % Change
	Consolidated Total			Consolidated Total
Selected Financial Information (1)
(dollars in thousands)
Homes closed		553			336			65	%
Home sales revenue	$	247,740		$	168,157			47	%
Cost of sales (excluding interest and purchase accounting adjustments)		(183,450	)		(122,373	)		50	%
Adjusted homebuilding gross margin (2)	$	64,290		$	45,784			40	%
Adjusted homebuilding gross margin percentage (2)		26.0	%		27.2	%		(5	%)
Interest in cost of sales		(8,676	)		(5,873	)		48	%
Purchase accounting adjustments		(8,122	)		(60	)		13437	%
Gross margin	$	47,492		$	39,851			19	%
Gross margin percentage		19.2	%		23.7	%		(19	%)
Number of homes closed
California		151			208			(27	%)
Arizona		38			55			(31	%)
Nevada		60			53			13	%
Colorado		59			20			195	%
Washington		108			—			NM
Oregon		137			—			NM
Total		553			336			65	%
Average sales price of homes closed
California	$	534,500		$	605,200			(12	%)
Arizona		276,500			267,600			3	%
Nevada		512,900			347,000			48	%
Colorado		464,500			458,500			1	%
Washington		427,600			—			NM
Oregon		380,800			—			NM
Total	$	448,000		$	500,500			(10	%)
Number of net new home orders
California		205			222			(8	%)
Arizona		160			52			208	%
Nevada		70			69			1	%
Colorado		77			45			71	%
Washington		117			—			NM
Oregon		214			—			NM
Total		843			388			117	%
Average number of sales locations during period
California		16			16			0	%
Arizona		8			6			33	%
Nevada		11			9			22	%
Colorado		13			7			86	%
Washington		5			—			NM
Oregon		14			—			NM
Total		67			38			76	%

(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)

	Six Months Ended June 30,
	2015			2014			Percentage % Change
	Consolidated Total			Consolidated Total
Selected Financial Information (1)
(dollars in thousands)
Homes closed		941			612			54	%
Home sales revenue	$	437,455		$	308,456			42	%
Cost of sales (excluding interest and purchase accounting adjustments)		(326,497	)		(223,706	)		46	%
Adjusted homebuilding gross margin (2)	$	110,958		$	84,750			31	%
Adjusted homebuilding gross margin percentage (2)		25.4	%		27.5	%		(8	%)
Interest in cost of sales		(15,377	)		(10,526	)		46	%
Purchase accounting adjustments		(12,455	)		(286	)		4255	%
Gross margin	$	83,126		$	73,938			12	%
Gross margin percentage		19.0	%		24.0	%		(21	%)
Number of homes closed
California		286			376			(24	%)
Arizona		63			105			(40	%)
Nevada		94			100			(6	%)
Colorado		100			31			223	%
Washington		184			—			NM
Oregon		214			—			NM
Total		941			612			54	%
Average sales price of homes closed
California	$	559,600		$	613,000			(9	%)
Arizona		280,900			266,600			5	%
Nevada		617,200			355,400			74	%
Colorado		455,900			465,700			(2	%)
Washington		421,000			—			NM
Oregon		367,500			—			NM
Total	$	464,900		$	504,000			(8	%)
Number of net new home orders
California		389			455			(15	%)
Arizona		204			115			77	%
Nevada		116			151			(23	%)
Colorado		162			67			142	%
Washington		231			—			NM
Oregon		329			—			NM
Total		1,431			788			82	%
Average number of sales locations during period
California		16			15			7	%
Arizona		6			6			0	%
Nevada		10			9			11	%
Colorado		13			6			117	%
Washington		5			—			NM
Oregon		9			—			NM
Total		59			36			64	%

(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 June 30,
	2015		2014		Percentage % Change
	Consolidated Total		Consolidated Total
Backlog of homes sold but not closed at end of period
California		261		285		(8	%)
Arizona		188		73		158	%
Nevada		95		123		(23	%)
Colorado		146		63		132	%
Washington		109		—		NM
Oregon		169		—		NM
Total		968		544		78	%
Dollar amount of homes sold but not closed at end of period (in thousands)
California	$	178,602	$	163,158		9	%
Arizona		47,268		19,772		139	%
Nevada		60,506		90,249		(33	%)
Colorado		68,556		30,149		127	%
Washington		46,880		—		NM
Oregon		69,734		—		NM
Total	$	471,546	$	303,328		55	%
Lots owned and controlled at end of period
Lots owned
California		2,256		2,317		(3	%)
Arizona		5,358		5,305		1	%
Nevada		2,922		2,971		(2	%)
Colorado		914		1,021		(10	%)
Washington		1,241		—		NM
Oregon		1,050		—		NM
Total		13,741		11,614		18	%
Lots controlled
California		1,179		1,613		(27	%)
Arizona		—		228		(100	%)
Nevada		171		92		86	%
Colorado		148		208		(29	%)
Washington		726		—		NM
Oregon		1,421		—		NM
Total		3,645		2,141		70	%
Total lots owned and controlled
California		3,435		3,930		(13	%)
Arizona		5,358		5,533		(3	%)
Nevada		3,093		3,063		1	%
Colorado		1,062		1,229		(14	%)
Washington		1,967		—		NM
Oregon		2,471		—		NM
Total		17,386		13,755		26	%

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)

	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Net income attributable to William Lyon Homes	$	12,277		$	12,285		$	18,959		$	20,982
Net cash provided by (used in) operating activities	$	(44,130	)	$	(32,805	)	$	(105,302	)	$	(202,541	)
Interest incurred	$	18,611		$	11,919		$	36,644		$	21,314
Adjusted EBITDA (1)	$	38,756		$	26,605		$	61,778		$	47,111
Adjusted EBITDA Margin (2)		15.2	%		14.8	%		13.7	%		14.3	%
Ratio of adjusted EBITDA to interest incurred		2.1			2.2			1.7			2.2

Balance Sheet Data

	June 30, 2015			December 31, 2014
Cash, cash equivalents and restricted cash	$	61,149		$	53,275
Total William Lyon Homes stockholders’ equity		590,505			569,915
Noncontrolling interest		28,336			27,231
Total debt		1,066,175			940,101
Total book capitalization	$	1,685,016		$	1,537,247
Ratio of debt to total book capitalization		63.3	%		61.2	%
Ratio of debt to total book capitalization (net of cash)		61.9	%		59.8	%

(1) Adjusted EBITDA means net income (loss) attributable to William Lyon Homes 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, and (viii) equity in income of unconsolidated joint ventures. 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 (loss) 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 attributable to William Lyon Homes 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 Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Net income attributable to William Lyon Homes	$	12,277		$	12,285		$	18,959		$	20,982
Provision for income taxes		7,254			6,206			10,824			10,780
Interest expense
Interest incurred		18,611			11,919			36,644			21,314
Interest capitalized		(18,611	)		(11,919	)		(36,644	)		(21,314	)
Amortization of capitalized interest included in cost of sales		8,676			5,873			15,377			10,526
Stock based compensation		1,806			843			3,157			1,854
Depreciation and amortization		850			1,338			1,407			2,683
Non-cash purchase accounting adjustments		8,122			60			12,455			286
Cash distributions of income from unconsolidated joint ventures		286			—			362			—
Equity in income of unconsolidated joint ventures		(515	)		—			(763	)		—
Adjusted EBITDA	$	38,756		$	26,605		$	61,778		$	47,111