William Lyon Homes (WLH) 8-K William Lyon Homes Reports Second Quarter 2016 Results

Exhibit 99.1

WILLIAM LYON HOMES REPORTS SECOND QUARTER 2016 RESULTS

31% INCREASE IN HOMEBUILDING REVENUE; 22% INCREASE IN DOLLAR VALUE OF HOMES IN BACKLOG; AND 19% INCREASE IN NET INCOME AVAILABLE TO COMMON STOCKHOLDERS

NEWPORT BEACH, CA— August 5, 2016 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for its 2016 second quarter ended June 30, 2016.

2016 Second Quarter Highlights (Comparison to 2015 Second Quarter)

• Net income available to common stockholders of $14.6 million, up 19%, or $0.38 per diluted share, up 19%

• Home sales revenue of $325.1 million, up 31%

• New home deliveries of 663 homes, up 20%

• Dollar value of orders of $423.6 million, up 13%

• Net new home orders of 871, up 3%

• Dollar value of homes in backlog of $575.5 million, up 22%

• Units in backlog of 1,093, up 13%

• Average sales locations of 72, up 7%

• Average sales price (ASP) of new homes delivered of $490,300, up 9%

• Homebuilding gross margin of $56.4 million, up 19%

• Homebuilding gross margin percentage of 17.4%

• Adjusted homebuilding gross margin percentage of 24.0%

• SG&A percentage of 10.7%, compared to 11.4%

• Pre-tax Income of $22.6 million, up 10%

• Adjusted EBITDA of $48.5 million, up 25%

“We are pleased with our financial results for the second quarter as we continue to improve year-over-year, with homebuilding revenues of $325.1 million, up 31%, gross margin of $56.4 million, up 19%, SG&A percentage improvement of 70 basis points, and net income available to common stockholders of $14.6 million, or $0.38 per diluted share, up 19%,” said Matthew R. Zaist, President and Chief Executive Officer. “We also executed on an active spring selling season with net new home orders of 871, which was a monthly absorption rate of 4.0 sales per community during the quarter, ending the quarter with a rate of 4.2 sales per community in June.”

Mr. Zaist continued, “For the remainder of 2016, we will continue to focus on executing on our strategic initiatives, including conversion of our substantial backlog, which stands at 1,093 units with an associated value of $575.5 million, the highest levels since 2006.”

Operating Results

Home sales revenue for the second quarter of 2016 was $325.1 million, as compared to $247.7 million in the year-ago period, an increase of 31%. Our performance was driven by a 20% increase in the number of deliveries to 663 homes, compared to 553 homes delivered in the second quarter of 2015. Average sales price of homes delivered was $490,300 in the quarter, compared to $448,000 in the year-ago period. The 9% increase in ASP primarily reflects changes in geographic and product mix contributing to closings during the quarter.

The dollar value of orders for the second quarter of 2016 was $423.6 million, an increase of 13%, from $374.1 million in the year-ago period. Net new home orders for the quarter were 871, up 3% from 843 in the second quarter of 2015. The overall increase in net new home orders was primarily driven by an increase in community count to 72 average sales locations, from 67 in the year-ago period.

The dollar value of homes in backlog was $575.5 million as of June 30, 2016, an increase of 22% compared to $471.5 million as of June 30, 2015. The increase was driven by both a 13% increase in units in backlog to 1,093 from 968 and an 8% increase in ASP in backlog to $526,500 from $487,100 in the year-ago period.

Homebuilding gross margin percentage was 17.4% during the second quarter of 2016 and adjusted homebuilding gross margin percentage for the quarter was 24.0%.

Sales and marketing expense during the second quarter of 2016 was 5.6% of homebuilding revenue, compared to 6.0% in the year-ago quarter, driven primarily by higher homebuilding revenue and leverage on our advertising and marketing costs, compared to the prior year period. General and administrative expenses decreased to 5.1% of homebuilding revenue, compared to 5.4% in the year-ago quarter, as we continue to benefit from a lower relative cost structure due to positive operating leverage.

Balance Sheet Update

At quarter end, cash and cash equivalents totaled $39.8 million, real estate inventories totaled $1.8 billion, total assets were $2.1 billion and total equity was $726.8 million. Total debt to book capitalization was 61.6%, and net debt to net book capitalization was 60.8% at June 30, 2016, compared to 62.2% and 61.1%, respectively, as of December 31, 2015.

Conference Call

The Company will host a conference call to discuss these results today, Friday, August 5, 2016 at 10:00 a.m. Pacific Time. The call will be available via both the telephone at (855) 851-4524 or (720) 634-2900, conference id #52484853, 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 12, 2016 by dialing (855) 859-2056 or (404) 537-3406, conference id #52484853. 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, Seattle and Portland. The Company has a distinguished legacy of more than 60 years of homebuilding operations, over which time it has sold in excess of 96,000 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 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 new home deliveries and revenue, gross margin performance, backlog conversion rates, operating and financial results for the third quarter of 2016 and full year 2016, community count growth, 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, 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: the availability of labor and homebuilding materials and increased construction cycle times; adverse weather conditions, including but not limited to the continued drought in California and the Southwest; 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; changes in governmental laws and regulations and increased costs, fees and delays associated therewith; uncertainties regarding the 2016 U.S. presidential election; 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; 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; 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; whether we are able to pay off or refinance the outstanding balances of our debt obligations at their maturity; 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.

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, 2016			Three Months Ended June 30, 2015
Operating revenue
Home sales	$	325,059		$	247,740
Construction services		594			6,955
		325,653			254,695
Operating costs
Cost of sales — homes		(268,638	)		(200,248	)
Construction services		(548	)		(5,898	)
Sales and marketing		(18,112	)		(14,904	)
General and administrative		(16,685	)		(13,415	)
Amortization of intangible assets		—			(462	)
Other		(487	)		(421	)
		(304,470	)		(235,348	)
Operating income		21,183			19,347
Equity in income of unconsolidated joint ventures		1,194			515
Other income, net		228			642
Income before provision for income taxes		22,605			20,504
Provision for income taxes		(7,519	)		(7,254	)
Net income		15,086			13,250
Less: Net income attributable to noncontrolling interests		(525	)		(973	)
Net income available to common stockholders	$	14,561		$	12,277
Income per common share:
Basic	$	0.40		$	0.34
Diluted	$	0.38		$	0.32
Weighted average common shares outstanding:
Basic		36,786,268			36,565,369
Diluted		38,356,722			38,026,866

WILLIAM LYON HOMES

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(unaudited)

	Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Operating revenue
Home sales	$	586,354		$	437,455
Construction services		3,724			14,408
		590,078			451,863
Operating costs
Cost of sales — homes		(483,809	)		(354,329	)
Construction services		(3,372	)		(11,927	)
Sales and marketing		(33,105	)		(27,128	)
General and administrative		(34,519	)		(27,363	)
Amortization of intangible assets		—			(665	)
Other		(810	)		(957	)
		(555,615	)		(422,369	)
Operating income		34,463			29,494
Equity in income of unconsolidated joint ventures		2,375			763
Other income, net		753			1,423
Income before provision for income taxes		37,591			31,680
Provision for income taxes		(12,564	)		(10,824	)
Net income		25,027			20,856
Less: Net income attributable to noncontrolling interests		(1,452	)		(1,897	)
Net income available to common stockholders	$	23,575		$	18,959
Income per common share:
Basic	$	0.64		$	0.52
Diluted	$	0.62		$	0.50
Weighted average common shares outstanding:
Basic		36,719,057			36,514,962
Diluted		38,302,047			37,876,696

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

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

	June 30, 2016		December 31, 2015
	(unaudited)
ASSETS
Cash and cash equivalents	$	39,764	$	50,203
Restricted cash		—		504
Receivables		6,730		14,838
Escrow proceeds receivable		2,301		3,041
Real estate inventories		1,828,847		1,675,106
Investment in unconsolidated joint ventures		7,274		5,413
Goodwill		66,902		66,902
Intangibles, net of accumulated amortization of $4,640 as of June 30, 2016 and December 31, 2015		6,700		6,700
Deferred income taxes, net		79,846		79,726
Other assets, net		18,526		21,017
Total assets	$	2,056,890	$	1,923,450
LIABILITIES AND EQUITY
Accounts payable	$	89,093	$	75,881
Accrued expenses		73,855		70,324
Revolving credit facility		59,000		65,000
Construction notes payable		10,041		15,915
Joint venture notes payable		140,910		94,266
Land notes payable		29,439		—
Subordinated amortizing note		10,692		14,066
5 3⁄4% Senior Notes due April 15, 2019		148,555		148,295
8 1⁄2% Senior Notes due November 15, 2020		422,872		422,896
7% Senior Notes due August 15, 2022		345,661		345,338
		1,330,118		1,251,981
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, 2016 and December 31, 2015, respectively		—		—
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,894,438 and 28,363,879 shares issued, 27,866,275 and 27,657,435 outstanding at June 30, 2016 and December 31, 2015, respectively		289		284
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively		38		38
Additional paid-in capital		415,344		413,810
Retained earnings		241,538		217,963
Total William Lyon Homes stockholders’ equity		657,209		632,095
Noncontrolling interests		69,563		39,374
Total equity		726,772		671,469
Total liabilities and equity	$	2,056,890	$	1,923,450

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Three Months Ended June 30,
	2016			2015
	Consolidated Total			Consolidated Total			Percentage % Change
Selected Financial Information (1) (dollars in thousands)
Homes closed		663			553			20	%
Home sales revenue	$	325,059		$	247,740			31	%
Cost of sales (excluding interest and purchase accounting adjustments)		(246,960	)		(183,450	)		35	%
Adjusted homebuilding gross margin (2)	$	78,099		$	64,290			21	%
Adjusted homebuilding gross margin percentage (2)		24.0	%		26.0	%		(7	%)
Interest in cost of sales		(14,020	)		(8,676	)		62	%
Purchase accounting adjustments		(7,658	)		(8,122	)		(6	%)
Gross margin	$	56,421		$	47,492			19	%
Gross margin percentage		17.4	%		19.2	%		(9	%)
Number of homes closed
California		147			151			(3	%)
Arizona		134			38			253	%
Nevada		73			60			22	%
Colorado		47			59			(20	%)
Washington		83			108			(23	%)
Oregon		179			137			31	%
Total		663			553			20	%
Average sales price of homes closed
California	$	688,400		$	534,500			29	%
Arizona		265,600			276,500			(4	%)
Nevada		666,500			512,900			30	%
Colorado		514,400			464,500			11	%
Washington		450,200			427,600			5	%
Oregon		436,100			380,800			15	%
Total	$	490,300		$	448,000			9	%
Number of net new home orders
California		238			205			16	%
Arizona		142			160			(11	%)
Nevada		97			70			39	%
Colorado		72			77			(6	%)
Washington		88			117			(25	%)
Oregon		234			214			9	%
Total		871			843			3	%
Average number of sales locations during period
California		18			16			13	%
Arizona		8			8			0	%
Nevada		12			11			9	%
Colorado		11			13			(15	%)
Washington		6			5			20	%
Oregon		17			14			21	%
Total		72			67			7	%

(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,
	2016			2015
	Consolidated Total			Consolidated Total			Percentage % Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		1,206			941			28	%
Home sales revenue	$	586,354		$	437,455			34	%
Cost of sales (excluding interest and purchase accounting adjustments)		(443,791	)		(326,497	)		36	%
Adjusted homebuilding gross margin (2)	$	142,563		$	110,958			28	%
Adjusted homebuilding gross margin percentage (2)		24.3	%		25.4	%		(4	%)
Interest in cost of sales		(25,767	)		(15,377	)		68	%
Purchase accounting adjustments		(14,251	)		(12,455	)		14	%
Gross margin	$	102,545		$	83,126			23	%
Gross margin percentage		17.5	%		19.0	%		(8	%)
Number of homes closed
California		289			286			1	%
Arizona		216			63			243	%
Nevada		135			94			44	%
Colorado		100			100			0	%
Washington		151			184			(18	%)
Oregon		315			214			47	%
Total		1,206			941			28	%
Average sales price of homes closed
California	$	671,100		$	559,600			20	%
Arizona		262,200			280,900			(7	%)
Nevada		588,100			617,200			(5	%)
Colorado		505,700			455,900			11	%
Washington		465,300			421,000			11	%
Oregon		430,200			367,500			17	%
Total	$	486,200		$	464,900			5	%
Number of net new home orders
California		400			389			3	%
Arizona		250			204			23	%
Nevada		163			116			41	%
Colorado		150			162			(7	%)
Washington		172			231			(26	%)
Oregon		425			329			29	%
Total		1,560			1,431			9	%
Average number of sales locations during period
California		18			16			13	%
Arizona		8			6			33	%
Nevada		12			10			20	%
Colorado		10			13			(23	%)
Washington		6			5			20	%
Oregon		16			9			78	%
Total		70			59			19	%

(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,
	2016		2015
	Consolidated Total		Consolidated Total		Percentage % Change
Backlog of homes sold but not closed at end of period
California		305		261		17	%
Arizona		243		188		29	%
Nevada		143		95		51	%
Colorado		128		146		(12	%)
Washington		65		109		(40	%)
Oregon		209		169		24	%
Total		1,093		968		13	%
Dollar amount of homes sold but not closed at end of period (in thousands)
California	$	223,080	$	178,602		25	%
Arizona		66,816		47,268		41	%
Nevada		82,993		60,506		37	%
Colorado		66,122		68,556		(4	%)
Washington		42,851		46,880		(9	%)
Oregon		93,617		69,734		34	%
Total	$	575,479	$	471,546		22	%
Lots owned and controlled at end of period Lots owned
California		1,652		2,256		(27	%)
Arizona		4,985		5,358		(7	%)
Nevada		3,251		2,922		11	%
Colorado		698		914		(24	%)
Washington		1,449		1,241		17	%
Oregon		1,133		1,050		8	%
Total		13,168		13,741		(4	%)
Lots controlled
California		1,288		1,179		9	%
Arizona		—		—		0	%
Nevada		55		171		(68	%)
Colorado		1,148		148		676	%
Washington		1,093		726		51	%
Oregon		2,083		1,421		47	%
Total		5,667		3,645		55	%
Total lots owned and controlled
California		2,940		3,435		(14	%)
Arizona		4,985		5,358		(7	%)
Nevada		3,306		3,093		7	%
Colorado		1,846		1,062		74	%
Washington		2,542		1,967		29	%
Oregon		3,216		2,471		30	%
Total		18,835		17,386		8	%

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited)

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Net income available to common stockholders	$	14,561		$	12,277		$	23,575		$	18,959
Net cash used in operating activities	$	(15,369	)	$	(43,844	)	$	(74,905	)	$	(104,940	)
Interest incurred	$	20,558		$	18,611		$	40,819		$	36,644
Adjusted EBITDA (1)	$	48,458		$	38,756		$	81,990		$	61,778
Adjusted EBITDA Margin (2)		14.9	%		15.2	%		13.9	%		13.7	%
Ratio of adjusted EBITDA to interest incurred		2.4			2.1			2.0			1.7

Balance Sheet Data
	June 30, 2016			December 31, 2015
Cash, cash equivalents and restricted cash	$	39,764		$	50,707
Total William Lyon Homes stockholders’ equity		657,209			632,095
Noncontrolling interest		69,563			39,374
Total debt		1,167,170			1,105,776
Total book capitalization	$	1,893,942		$	1,777,245
Ratio of debt to total book capitalization		61.6	%		62.2	%
Ratio of debt to total book capitalization (net of cash)		60.8	%		61.1	%

(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 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

(unaudited)

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Net income available to common stockholders	$	14,561		$	12,277		$	23,575		$	18,959
Provision for income taxes		7,519			7,254			12,564			10,824
Interest expense
Interest incurred		20,558			18,611			40,819			36,644
Interest capitalized		(20,558	)		(18,611	)		(40,819	)		(36,644	)
Amortization of capitalized interest included in cost of sales		15,014			8,676			26,761			15,377
Stock based compensation		1,069			1,806			2,561			3,157
Depreciation and amortization		507			850			1,005			1,407
Non-cash purchase accounting adjustments		10,689			8,122			17,282			12,455
Cash distributions of income from unconsolidated joint ventures		293			286			617			362
Equity in income of unconsolidated joint ventures		(1,194	)		(515	)		(2,375	)		(763	)
Adjusted EBITDA	$	48,458		$	38,756		$	81,990		$	61,778