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

Exhibit 99.1

WILLIAM LYON HOMES REPORTS THIRD QUARTER 2016 RESULTS

40% INCREASE IN HOMEBUILDING REVENUE;

44% INCREASE IN PRE-TAX INCOME

NEWPORT BEACH, CA— November 4, 2016 — William Lyon Homes (NYSE: WLH), a leading homebuilder in the Western U.S., announced results for its 2016 third quarter ended September 30, 2016.

2016 Third Quarter Highlights (Comparison to 2015 Third Quarter)

• Home sales revenue of $342.6 million, up 40%

• Pre-tax Income of $24.8 million, up 44%

• Net income available to common stockholders of $13.1 million, or $0.34 per diluted share, up 8% and 10%, respectively

• New home deliveries of 673 homes, up 19%

• Dollar value of orders of $348.7 million, up 17%

• Net new home orders of 651, up 4%

• Dollar value of homes in backlog of $591.0 million, up 10%

• Units in backlog of 1,071, up 4%

• Average sales locations of 78, up 7%

• Average sales price (ASP) of new homes delivered of $509,100, up 18%

• Homebuilding gross margin of $56.7 million, up 29%

• Homebuilding gross margin percentage of 16.6%

• Adjusted homebuilding gross margin percentage of 22.2%

• SG&A percentage of 10.4%, compared to 12.0%

• Adjusted EBITDA of $42.9 million, up 23%

“The third quarter of 2016 represented another quarter of year-over-year growth for William Lyon Homes across a number of important financial and operational metrics, with homebuilding revenues of $342.6 million, up 40%, average sales price of $509,100, up 18%, gross margin of $56.7 million, up 29%, and SG&A percentage improvement of 160 basis points,” said Matthew R. Zaist, President and Chief Executive Officer. “We achieved pre-tax income of $24.8 million for the third quarter, up 44%, resulting in net income available to common stockholders of $13.1 million, or $0.34 per diluted share. Our homebuilding joint venture activity was stronger than anticipated in the quarter, resulting in a higher minority interest allocation.”

Mr. Zaist continued, “We continued to increase our community count during the quarter, averaging 78 sales locations for the period, and experienced a relatively stable monthly absorption rate throughout the quarter, which averaged 2.8 sales per community. We are encouraged by our October sales pace which resulted in a total of 207 net new home orders, up 18% year-over-year. Backlog as of the end of the quarter stood at 1,071 units with an associated value of $591.0 million, the highest dollar value in over 10 years.”

Operating Results

Home sales revenue for the third quarter of 2016 was $342.6 million, as compared to $244.3 million in the year-ago period, an increase of 40%. Our performance was driven by a 19% increase in the number of deliveries to 673 homes, compared to 564 homes delivered in the third quarter of 2015. Average sales price of homes delivered was $509,100 in the quarter, compared to $433,200 in the year-ago period. The 18% increase in ASP primarily reflects changes in geographic and product mix contributing to closings during the quarter.

The dollar value of orders for the third quarter of 2016 was $348.7 million, an increase of 17%, from $298.4 million in the year-ago period. Net new home orders for the quarter were 651, up 4% from 628 in the third quarter of 2015. The overall increase in net new home orders was primarily driven by an increase in community count to 78 average sales locations, from 73 in the year-ago period.

The dollar value of homes in backlog was $591.0 million as of September 30, 2016, an increase of 10% compared to $537.1 million as of September 30, 2015. The increase was driven by both a 4% increase in units in backlog to 1,071 from 1,032 and a 6% increase in ASP in backlog to $551,900 from $520,500 in the year-ago period.

Homebuilding gross margin percentage was 16.6% during the third quarter of 2016, which included previously disclosed infrastructure charges included in cost of sales, and impacting margins during the quarter. Adjusted homebuilding gross margin percentage for the quarter was 22.2%.

Sales and marketing expense during the third quarter of 2016 was 5.3% of homebuilding revenue, compared to 6.3% 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 5.7% 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 $40.7 million, real estate inventories totaled $1.9 billion, total assets were $2.1 billion and total equity was $739.3 million. Total debt to book capitalization was 61.6%, and net debt to net book capitalization was 60.8% at September 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, November 4, 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 #4118865, 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 11, 2016 by dialing (855) 859-2056 or (404) 537-3406, conference ID #4118865. 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 97,000 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 revenue and income, gross margin performance, backlog conversion rates, operating and financial results for the fourth 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; the availability and timing of mortgage financing; 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			Three
	Months			Months
	Ended			Ended
	September 30,			September 30,
	2016			2015
Operating revenue
Home sales	$	342,628		$	244,311
Construction services		86			4,896
		342,714			249,207
Operating costs
Cost of sales — homes		(285,896	)		(200,328	)
Construction services		(86	)		(4,146	)
Sales and marketing		(18,246	)		(15,352	)
General and administrative		(17,360	)		(13,981	)
Amortization of intangible assets		—			(45	)
Other		198			(592	)
		(321,390	)		(234,444	)
Operating income		21,324			14,763
Equity in income of unconsolidated joint ventures		1,435			1,018
Other income, net		2,050			1,452
Income before provision for income taxes		24,809			17,233
Provision for income taxes		(8,295	)		(4,956	)
Net income		16,514			12,277
Less: Net income attributable to noncontrolling interests		(3,445	)		(195	)
Net income available to common stockholders	$	13,069		$	12,082
Income per common share:
Basic	$	0.36		$	0.33
Diluted	$	0.34		$	0.31
Weighted average common shares outstanding:
Basic		36,801,464			36,573,099
Diluted		38,333,027			38,507,267

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,
	2016			2015
Operating revenue
Home sales	$	928,982		$	681,766
Construction services		3,810			19,304
		932,792			701,070
Operating costs
Cost of sales — homes		(769,705	)		(554,657	)
Construction services		(3,458	)		(16,073	)
Sales and marketing		(51,351	)		(42,480	)
General and administrative		(51,879	)		(41,344	)
Amortization of intangible assets		—			(710	)
Other		(612	)		(1,549	)
		(877,005	)		(656,813	)
Operating income		55,787			44,257
Equity in income of unconsolidated joint ventures		3,810			1,781
Other income, net		2,803			2,875
Income before provision for income taxes		62,400			48,913
Provision for income taxes		(20,859	)		(15,780	)
Net income		41,541			33,133
Less: Net income attributable to noncontrolling interests		(4,897	)		(2,092	)
Net income available to common stockholders	$	36,644		$	31,041
Income per common share:
Basic	$	1.00		$	0.85
Diluted	$	0.96		$	0.81
Weighted average common shares outstanding:
Basic		36,746,727			36,534,554
Diluted		38,314,021			38,400,236

WILLIAM LYON HOMES

CONSOLIDATED BALANCE SHEETS

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

	September 30,		December 31,
	2016		2015
	(unaudited)
ASSETS
Cash and cash equivalents	$	40,710	$	50,203
Restricted cash		—		504
Receivables		8,121		14,838
Escrow proceeds receivable		—		3,041
Real estate inventories		1,856,034		1,675,106
Investment in unconsolidated joint ventures		8,414		5,413
Goodwill		66,902		66,902
Intangibles, net of accumulated amortization of $4,640 as of September 30, 2016 and December 31, 2015		6,700		6,700
Deferred income taxes, net		79,728		79,726
Other assets, net		17,321		21,017
Total assets	$	2,083,930	$	1,923,450
LIABILITIES AND EQUITY
Accounts payable	$	76,921	$	75,881
Accrued expenses		82,012		70,324
Revolving credit facility		96,000		65,000
Construction notes payable		7,685		15,915
Joint venture notes payable		123,238		94,266
Land notes payable		32,419		—
Subordinated amortizing note		8,970		14,066
53/4% Senior Notes due April 15, 2019		148,691		148,295
8 1/2% Senior Notes due November 15, 2020		422,852		422,896
7% Senior Notes due August 15, 2022		345,829		345,338
		1,344,617		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 September 30, 2016 and December 31, 2015, respectively		—		—
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,902,681 and 28,363,879 shares issued, 27,855,880 and 27,657,435 outstanding at September 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 September 30, 2016 and December 31, 2015, respectively		38		38
Additional paid-in capital		416,736		413,810
Retained earnings		254,607		217,963
Total William Lyon Homes stockholders’ equity		671,670		632,095
Noncontrolling interests		67,643		39,374
Total equity		739,313		671,469
Total liabilities and equity	$	2,083,930	$	1,923,450

WILLIAM LYON HOMES

SELECTED FINANCIAL AND OPERATING INFORMATION

(unaudited)

	Three Months Ended September 30,
	2016			2015
	Consolidated			Consolidated			Percentage %
	Total			Total			Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		673			564			19	%
Home sales revenue	$	342,628		$	244,311			40	%
Cost of sales (excluding interest and purchase accounting adjustments)		(266,666	)		(183,969	)		45	%
Adjusted homebuilding gross margin (2)	$	75,962		$	60,342			26	%
Adjusted homebuilding gross margin percentage (2)		22.2	%		24.7	%		(10	%)
Interest in cost of sales		(13,543	)		(8,373	)		62	%
Purchase accounting adjustments		(5,687	)		(7,986	)		(29	%)
Gross margin	$	56,732		$	43,983			29	%
Gross margin percentage		16.6	%		18.0	%		(8	%)
Number of homes closed
California		169			122			39	%
Arizona		108			69			57	%
Nevada		85			63			35	%
Colorado		70			50			40	%
Washington		74			117			(37	%)
Oregon		167			143			17	%
Total		673			564			19	%
Average sales price of homes closed
California	$	659,400		$	518,600			27	%
Arizona		266,300			269,400			(1	%)
Nevada		583,500			506,700			15	%
Colorado		504,500			477,300			6	%
Washington		570,900			400,900			42	%
Oregon		450,700			417,900			8	%
Total	$	509,100		$	433,200			18	%
Number of net new home orders
California		191			158			21	%
Arizona		117			119			(2	%)
Nevada		66			77			(14	%)
Colorado		54			38			42	%
Washington		66			98			(33	%)
Oregon		157			138			14	%
Total		651			628			4	%
Average number of sales locations during period
California		23			18			28	%
Arizona		9			8			13	%
Nevada		12			11			9	%
Colorado		10			14			(29	%)
Washington		6			6			0	%
Oregon		18			16			13	%
Total		78			73			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)

	Nine Months Ended September 30,
	2016			2015
	Consolidated			Consolidated			Percentage %
	Total			Total			Change
Selected Financial Information (1)
(dollars in thousands)
Homes closed		1,879			1,505			25	%
Home sales revenue	$	928,982		$	681,766			36	%
Cost of sales (excluding interest and purchase accounting adjustments)		(710,457	)		(510,466	)		39	%
Adjusted homebuilding gross margin (2)	$	218,525		$	171,300			28	%
Adjusted homebuilding gross margin percentage (2)		23.5	%		25.1	%		(6	%)
Interest in cost of sales		(39,310	)		(23,750	)		66	%
Purchase accounting adjustments		(19,938	)		(20,441	)		(2	%)
Gross margin	$	159,277		$	127,109			25	%
Gross margin percentage		17.1	%		18.6	%		(8	%)
Number of homes closed
California		458			408			12	%
Arizona		324			132			145	%
Nevada		220			157			40	%
Colorado		170			150			13	%
Washington		225			301			(25	%)
Oregon		482			357			35	%
Total		1,879			1,505			25	%
Average sales price of homes closed
California	$	666,800		$	547,300			22	%
Arizona		263,600			274,900			(4	%)
Nevada		586,300			572,800			2	%
Colorado		505,200			463,000			9	%
Washington		500,100			413,200			21	%
Oregon		437,300			387,700			13	%
Total	$	494,400		$	453,000			9	%
Number of net new home orders
California		591			547			8	%
Arizona		367			323			14	%
Nevada		229			193			19	%
Colorado		204			200			2	%
Washington		238			329			(28	%)
Oregon		582			467			25	%
Total		2,211			2,059			7	%
Average number of sales locations during period
California		20			17			18	%
Arizona		8			7			14	%
Nevada		12			10			20	%
Colorado		10			13			(23	%)
Washington		6			6			0	%
Oregon		17			12			42	%
Total		73			65			12	%

(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,
	2016		2015
	Consolidated Total		Consolidated Total		Percentage % Change
Backlog of homes sold but not closed at end of period
California		327		297		10	%
Arizona		252		238		6	%
Nevada		124		109		14	%
Colorado		112		134		(16	%)
Washington		57		90		(37	%)
Oregon		199		164		21	%
Total		1,071		1,032		4	%
Dollar amount of homes sold but not closed at end of period (in thousands)
California	$	260,082	$	236,202		10	%
Arizona		71,609		59,737		20	%
Nevada		78,285		70,601		11	%
Colorado		59,451		64,300		(8	%)
Washington		36,518		36,902		(1	%)
Oregon		85,093		69,383		23	%
Total	$	591,038	$	537,125		10	%
Lots owned and controlled at end of period
Lots owned
California		1,625		2,315		(30	%)
Arizona		4,877		5,289		(8	%)
Nevada		3,131		2,864		9	%
Colorado		1,544		864		79	%
Washington		1,387		1,180		18	%
Oregon		1,303		1,399		(7	%)
Total		13,867		13,911		(0	%)
Lots controlled
California		1,069		419		155	%
Arizona		—		—		0	%
Nevada		51		657		(92	%)
Colorado		232		148		57	%
Washington		1,081		937		15	%
Oregon		1,849		1,601		15	%
Total		4,282		3,762		14	%
Total lots owned and controlled
California		2,694		2,734		(1	%)
Arizona		4,877		5,289		(8	%)
Nevada		3,182		3,521		(10	%)
Colorado		1,776		1,012		75	%
Washington		2,468		2,117		17	%
Oregon		3,152		3,000		5	%
Total		18,149		17,673		3	%

WILLIAM LYON HOMES

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited)

	Three			Three			Nine			Nine
	Months			Months			Months			Months
	Ended			Ended			Ended			Ended
	September 30,			September 30,			September 30,			September 30,
	2016			2015			2016			2015
Net income available to common stockholders	$	13,069		$	12,082		$	36,644		$	31,041
Net cash used in operating activities	$	(8,073	)	$	(115,414	)	$	(82,978	)	$	(220,354	)
Interest incurred	$	21,293		$	19,271		$	62,112		$	55,915
Adjusted EBITDA (1)	$	42,905		$	34,914		$	124,895		$	96,692
Adjusted EBITDA Margin (2)		12.5	%		14.0	%		13.4	%		13.8	%
Ratio of adjusted EBITDA to interest incurred		2.0			1.8			2.0			1.7

Balance Sheet Data

	September 30,			December 31,
	2016			2015
Cash, cash equivalents and restricted cash	$	40,710		$	50,707
Total William Lyon Homes stockholders’ equity		671,670			632,095
Noncontrolling interest		67,643			39,374
Total debt		1,185,684			1,105,776
Total book capitalization	$	1,924,997		$	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			Three			Nine			Nine
	Months			Months			Months			Months
	Ended			Ended			Ended			Ended
	September 30,			September 30,			September 30,			September 30,
	2016			2015			2016			2015
Net income available to common stockholders	$	13,069		$	12,082		$	36,644		$	31,041
Provision for income taxes		8,295			4,956			20,859			15,780
Interest expense
Interest incurred		21,293			19,271			62,112			55,915
Interest capitalized		(21,293	)		(19,271	)		(62,112	)		(55,915	)
Amortization of capitalized interest included in cost of sales		14,981			8,373			41,742			23,750
Stock based compensation		1,526			1,671			4,087			4,828
Depreciation and amortization		503			529			1,508			1,936
Non-cash purchase accounting adjustments		5,687			7,986			22,969			20,441
Cash distributions of income from unconsolidated joint ventures		279			335			896			697
Equity in income of unconsolidated joint ventures		(1,435	)		(1,018	)		(3,810	)		(1,781	)
Adjusted EBITDA	$	42,905		$	34,914		$	124,895		$	96,692