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

Exhibit 99.1

WILLIAM LYON HOMES REPORTS THIRD QUARTER 2015 RESULTS

114% INCREASE IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS; 49% INCREASE IN ORDERS; AND 33% INCREASE IN DELIVERIES

NEWPORT BEACH, CA — November 6, 2015 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for its 2015 third quarter ended September 30, 2015.

2015 Third Quarter Highlights (Comparison to 2014 Third Quarter)

• Net income available to common stockholders of $12.1 million, or $0.31 per diluted share, up 114%

• Net new home orders of 628, up 49%

• Dollar value of orders of $298.4 million, up 50%

• Home sales revenue of $244.3 million, up 25%

• Consolidated revenue of $251.7 million, up 22%

• New home deliveries of 564 homes, up 33%

• Average sales locations of 73, up 49%

• Units in backlog of 1,032, up 42%

• Dollar value of homes in backlog of $537.1 million, up 40%

• Homebuilding gross margin of $44.0 million, up 14%

• Average sales price (ASP) of new homes delivered of $433,200

• Homebuilding gross margin percentage of 18.0%

• Adjusted homebuilding gross margin percentage of 24.7%

• SG&A percentage of 12.0%, compared to 12.9%

• Adjusted EBITDA of $34.9 million, up 31%

“In the third quarter, we continued to show significant year-over-year improvement in net new home orders, the dollar value of orders, deliveries and revenue, resulting in net income available to common stockholders of $12.1 million, or $0.31 per diluted share, up 114% over the same quarter last year,” said William H. Lyon, Co-Chief Executive Officer. “We continue to see healthy demand and limited supply across our markets, and we believe that we are well positioned to finish the year strong as we remain focused on executing our financial and operational objectives.”

“We delivered another quarter of year-over-year improvement in our key operational metrics, while achieving our objective of growing our community count, which averaged 73 for the quarter, up 49% from the third quarter of 2014, and stood at 77 at quarter end,” said Matthew R. Zaist, Co-Chief Executive Officer and President. “Due to a number of market factors, our backlog conversion rate for the third quarter was below our expectations, and we are focused on improving upon that over the balance of the year in the face of a challenging labor market. Our backlog stood at 1,032 homes with a corresponding value of $537.1 million as of September 30^th, providing an opportunity to achieve meaningful revenue and earnings growth as we focus on converting our backlog into deliveries during the fourth quarter.”

Operating Results

Home sales revenue for the third quarter of 2015 was $244.3 million, as compared to $196.1 million in the year-ago period, an increase of 25%. The increase was driven by a 33% increase in deliveries to 564 homes, compared to 424 in the third quarter of 2014, offset by a decrease in the average sales price of homes delivered of $433,200, compared to $462,500 in the year-ago period. The decline in ASP reflects changes in geographic and product mix.

The dollar value of orders for the third quarter of 2015 was $298.4 million, an increase of 50%, from $199.2 million in the year-ago period. Net new home orders for the quarter were 628, up 49% from the third quarter of 2014. The increase in net new home orders was driven by a 49% increase in community count to 73 average sales locations, from 49 in the year-ago period, and the average monthly absorption rate was flat year-over-year at 2.9 sales per community.

The dollar value of homes in backlog was $537.1 million as of September 30, 2015, an increase of 40% compared to $382.9 million as of September 30, 2014. The increase was driven by a 42% increase in units in backlog to 1,032 from 728 in the year-ago period. In addition, our ASP in backlog as of September 30, 2015 was 20% higher than the ASP of homes closed in the third quarter.

Adjusted homebuilding gross margin percentage was 24.7% during the third quarter of 2015. Homebuilding gross margins for the quarter were 18.0%. 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 third quarter of 2015 was 12.0% of homebuilding revenue, compared with 12.9% in the year-ago quarter, an improvement of 90 basis points. Breaking down the components of SG&A, sales and marketing expense was 6.3% of homebuilding revenue during the quarter, compared to 6.4% in the year-ago quarter. General administrative expenses decreased to 5.7% of homebuilding revenue, compared to 6.5% in the year-ago quarter, as we continued to benefit from a larger operating platform with a lower relative cost structure.

Balance Sheet Update

At quarter end, cash, cash equivalents and restricted cash totaled $26.9 million, escrow proceeds receivable totaled $5.8 million, real estate inventories totaled $1.7 billion, total assets were $2.0 billion and total equity was $638.3 million. Net debt to net book capitalization was 63.6%, and total debt to total book capitalization was 64.2% at September 30, 2015.

Conference Call

The Company will host a conference call to discuss these results today, Friday, November 6, 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 #69399971, 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 13, 2015 by dialing (855) 859-2056 or (404) 537-3406, passcode #69399971. 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 95,000 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.

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 fourth 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: the availability of labor and homebuilding materials; adverse weather conditions, including the continued drought in California; 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; 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			Three
	Months			Months
	Ended			Ended
	September 30,			September 30,
	2015			2014
Operating revenue
Home sales	$	244,311		$	196,090
Lots, land and other sales		2,500			215
Construction services		4,896			10,593
		251,707			206,898
Operating costs
Cost of sales — homes		(200,328	)		(157,565	)
Cost of sales — lots, land and other		(1,729	)		(209	)
Construction services		(4,146	)		(8,262	)
Sales and marketing		(15,352	)		(12,476	)
General and administrative		(13,981	)		(12,726	)
Transaction expenses		—			(5,768	)
Amortization of intangible assets		(45	)		(174	)
Other		(592	)		(600	)
		(236,173	)		(197,780	)
Operating income		15,534			9,118
Other income, net		1,699			503
Income before provision for income taxes		17,233			9,621
Provision for income taxes		(4,956	)		(1,999	)
Net income		12,277			7,622
Less: Net income attributable to noncontrolling interests		(195	)		(1,984	)
Net income available to common stockholders	$	12,082		$	5,638
Income per common share:
Basic	$	0.33		$	0.18
Diluted	$	0.31		$	0.17
Weighted average common shares outstanding:
Basic		36,573,099			31,232,655
Diluted		38,507,267			32,760,746

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,
	2015			2014
Operating revenue
Home sales	$	681,766		$	504,546
Lots, land and other sales		2,500			1,926
Construction services		19,304			30,186
		703,570			536,658
Operating costs
Cost of sales — homes		(554,657	)		(392,083	)
Cost of sales — lots, land and other		(1,729	)		(1,529	)
Construction services		(16,073	)		(24,735	)
Sales and marketing		(42,480	)		(27,958	)
General and administrative		(41,344	)		(35,881	)
Transaction expenses		—			(5,768	)
Amortization of intangible assets		(710	)		(1,294	)
Other		(1,549	)		(1,891	)
		(658,542	)		(491,139	)
Operating income		45,028			45,519
Other income, net		3,885			976
Income before provision for income taxes		48,913			46,495
Provision for income taxes		(15,780	)		(12,779	)
Net income		33,133			33,716
Less: Net income attributable to noncontrolling interests		(2,092	)		(7,096	)
Net income available to common stockholders	$	31,041		$	26,620
Income per common share:
Basic	$	0.85		$	0.85
Diluted	$	0.81		$	0.81
Weighted average common shares outstanding:
Basic		36,534,554			31,184,101
Diluted		38,400,236			32,725,164

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

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

	September 30,		December 31,
	2015		2014
	(unaudited)
ASSETS
Cash and cash equivalents	$	26,379	$	52,771
Restricted cash		504		504
Escrow proceeds receivable		5,820		2,915
Receivables		23,764		21,250
Real estate inventories		1,733,399		1,404,639
Deferred loan costs, net		15,466		15,988
Goodwill		66,902		60,887
Intangibles, net of accumulated amortization of $10,130 and $9,420 as of September 30, 2015 and December 31, 2014, respectively		6,948		7,657
Deferred income taxes, net, including valuation allowance of $597 and $1,626 at September 30, 2015 and December 31, 2014, respectively		89,487		88,039
Other assets, net		24,069		19,777
Total assets	$	1,992,738	$	1,674,427
LIABILITIES AND EQUITY
Accounts payable	$	115,308	$	51,814
Accrued expenses		95,636		85,366
Notes payable		197,538		39,235
Subordinated Amortizing Notes		15,718		20,717
53/4% Senior Notes due April 15, 2019		150,000		150,000
8 1/2% Senior Notes due November 15, 2020		429,235		430,149
7% Senior Notes due August 15, 2022		350,995		300,000
		1,354,430		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 September 30, 2015 and December 31, 2014, respectively		—		—
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,369,420 and 28,073,438 shares issued, 27,651,961 and 27,487,257 outstanding at September 30, 2015 and December 31, 2014, respectively		284		281
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively		38		38
Additional paid-in capital		412,074		408,969
Retained earnings		191,668		160,627
Total William Lyon Homes stockholders’ equity		604,064		569,915
Noncontrolling interests		34,244		27,231
Total equity		638,308		597,146
Total liabilities and equity	$	1,992,738	$	1,674,427

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Three Months Ended September 30,
	2015			2014
	Consolidated			Consolidated			Percentage %
	Total			Total			Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		564			424			33	%
Home sales revenue	$	244,311		$	196,090			25	%
Cost of sales (excluding interest and purchase accounting adjustments)		(183,969	)		(147,793	)		24	%
Adjusted homebuilding gross margin (2)	$	60,342		$	48,297			25	%
Adjusted homebuilding gross margin percentage (2)		24.7	%		24.6	%		0	%
Interest in cost of sales		(8,373	)		(5,970	)		40	%
Purchase accounting adjustments		(7,986	)		(3,802	)		110	%
Gross margin	$	43,983		$	38,525			14	%
Gross margin percentage		18.0	%		19.6	%		(8	%)
Number of homes closed
California		122			177			(31	%)
Arizona		69			62			11	%
Nevada		63			63			0	%
Colorado		50			18			178	%
Washington		117			43			172	%
Oregon		143			61			134	%
Total		564			424			33	%
Average sales price of homes closed
California	$	518,600		$	536,100			(3	%)
Arizona		269,400			270,200			(0	%)
Nevada		506,700			580,000			(13	%)
Colorado		477,300			500,300			(5	%)
Washington		400,900			465,000			(14	%)
Oregon		417,900			310,000			35	%
Total	$	433,200		$	462,500			(6	%)
Number of net new home orders
California		158			182			(13	%)
Arizona		119			45			164	%
Nevada		77			49			57	%
Colorado		38			45			(16	%)
Washington		98			42			133	%
Oregon		138			59			134	%
Total		628			422			49	%
Average number of sales locations during period
California		18			18			0	%
Arizona		8			5			60	%
Nevada		11			9			22	%
Colorado		14			11			27	%
Washington		6			3			100	%
Oregon		16			3			433	%
Total		73			49			49	%

(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,
	2015			2014
	Consolidated			Consolidated			Percentage %
	Total			Total			Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		1,505			1,036			45	%
Home sales revenue	$	681,766		$	504,546			35	%
Cost of sales (excluding interest and purchase accounting adjustments)		(510,466	)		(371,499	)		37	%
Adjusted homebuilding gross margin (2)	$	171,300		$	133,047			29	%
Adjusted homebuilding gross margin percentage (2)		25.1	%		26.4	%		(5	%)
Interest in cost of sales		(23,750	)		(16,496	)		44	%
Purchase accounting adjustments		(20,441	)		(4,088	)		400	%
Gross margin	$	127,109		$	112,463			13	%
Gross margin percentage		18.6	%		22.3	%		(16	%)
Number of homes closed
California		408			553			(26	%)
Arizona		132			167			(21	%)
Nevada		157			163			(4	%)
Colorado		150			49			206	%
Washington		301			43			600	%
Oregon		357			61			485	%
Total		1,505			1,036			45	%
Average sales price of homes closed
California	$	547,300		$	588,400			(7	%)
Arizona		274,900			268,000			3	%
Nevada		572,800			442,200			30	%
Colorado		463,000			478,400			(3	%)
Washington		413,200			465,000			(11	%)
Oregon		387,700			310,000			25	%
Total	$	453,000		$	487,000			(7	%)
Number of net new home orders
California		547			637			(14	%)
Arizona		323			160			102	%
Nevada		193			200			(4	%)
Colorado		200			112			79	%
Washington		329			42			683	%
Oregon		467			59			692	%
Total		2,059			1,210			70	%
Average number of sales locations during period
California		17			16			6	%
Arizona		7			6			17	%
Nevada		10			9			11	%
Colorado		13			7			86	%
Washington		6			1			500	%
Oregon		12			1			1100	%
Total		65			40			63	%

(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,
	2015		2014
	Consolidated		Consolidated		Percentage %
	Total		Total		Change
Backlog of homes sold but not closed at end of period
California		297		290		2	%
Arizona		238		56		325	%
Nevada		109		109		0	%
Colorado		134		90		49	%
Washington		90		81		11	%
Oregon		164		102		61	%
Total		1,032		728		42	%
Dollar amount of homes sold but not closed at end of period (in thousands)
California	$	236,202	$	172,574		37	%
Arizona		59,737		14,817		303	%
Nevada		70,601		88,825		(21	%)
Colorado		64,300		42,350		52	%
Washington		36,902		32,301		14	%
Oregon		69,383		32,000		117	%
Total	$	537,125	$	382,867		40	%
Lots owned and controlled at end of period
Lots owned
California		2,315		2,184		6	%
Arizona		5,289		5,471		(3	%)
Nevada		2,864		2,909		(2	%)
Colorado		864		1,025		(16	%)
Washington		1,180		1,538		(23	%)
Oregon		1,399		1,340		4	%
Total		13,911		14,467		(4	%)
Lots controlled
California		419		1,582		(74	%)
Arizona		—		—		0	%
Nevada		657		215		206	%
Colorado		148		186		(20	%)
Washington		937		786		19	%
Oregon		1,601		839		91	%
Total		3,762		3,608		4	%
Total lots owned and controlled
California		2,734		3,766		(27	%)
Arizona		5,289		5,471		(3	%)
Nevada		3,521		3,124		13	%
Colorado		1,012		1,211		(16	%)
Washington		2,117		2,324		(9	%)
Oregon		3,000		2,179		38	%
Total		17,673		18,075		(2	%)

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(dollars in thousands)

(unaudited)

	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014			Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
Net income attributable to William Lyon Homes	$	12,082		$	5,638		$	31,041		$	26,620
Net cash (used in) provided by operating activities	$	(115,052	)	$	21,352		$	(220,354	)	$	(181,190	)
Interest incurred	$	19,271		$	17,504		$	55,915		$	38,818
Adjusted EBITDA (1)	$	34,914		$	26,652		$	96,692		$	73,763
Adjusted EBITDA Margin (2)		13.9	%		12.9	%		13.7	%		13.7	%
Ratio of adjusted EBITDA to interest incurred		1.8			1.5			1.7			1.9

Balance Sheet Data

	September 30,			December 31,
	2015			2014
Cash, cash equivalents and restricted cash	$	26,883		$	53,275
Total William Lyon Homes stockholders’ equity		604,064			569,915
Noncontrolling interest		34,244			27,231
Total debt		1,143,486			940,101
Total book capitalization	$	1,781,794		$	1,537,247
Ratio of debt to total book capitalization		64.2	%		61.2	%
Ratio of debt to total book capitalization (net of cash)		63.6	%		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 September 30, 2015			Three Months Ended September 30, 2014			Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
Net income attributable to William Lyon Homes	$	12,082		$	5,638		$	31,041		$	26,620
Provision for income taxes		4,956			1,999			15,780			12,779
Interest expense
Interest incurred		19,271			17,504			55,915			38,818
Interest capitalized		(19,271	)		(17,504	)		(55,915	)		(38,818	)
Amortization of capitalized interest included in cost of sales		8,373			5,970			23,750			16,496
Stock based compensation		1,671			918			4,828			2,772
Depreciation and amortization		529			2,557			1,936			5,240
Transaction expenses		—			5,768			—			5,768
Non-cash purchase accounting adjustments		7,986			3,802			20,441			4,088
Cash distributions of income from unconsolidated joint ventures		335			146			697			146
Equity in income of unconsolidated joint ventures		(1,018	)		(146	)		(1,781	)		(146	)
Adjusted EBITDA	$	34,914		$	26,652		$	96,692		$	73,763