Ryland 8-K Financial Statements and Exhibits

Exhibit 99.2

The following unaudited condensed consolidating information presents the consolidating statements of earnings, cash flows and financial position for (i) the parent company and issuer, The Ryland Group, Inc. (“TRG, Inc.”), (ii) the Guarantor Subsidiaries, (iii) the Non-guarantor Subsidiaries, and (iv) the consolidation eliminations to arrive at the information for The Ryland Group, Inc. and subsidiaries on a consolidated basis at and for the nine months ended September 30, 2004.

THE RYLAND GROUP, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS (UNAUDITED)

	NINE MONTHS ENDED SEPTEMBER 30, 2004
				GUARANTOR		NON-GUARANTOR		CONSOLIDATING			CONSOLIDATED
(amounts in thousands)	TRG, INC.			SUBSIDIARIES		SUBSIDIARIES		ELIMINATIONS			TOTAL
REVENUES
HOMEBUILDING	$	1,656,786		$	1,052,002	$	1,348	$	(61,630	)	$	2,648,506
FINANCIAL SERVICES		—			—		58,936		—			58,936
Total Revenues		1,656,786			1,052,002		60,284		(61,630	)		2,707,442
EXPENSES
HOMEBUILDING
Cost of sales		1,261,967			825,902		1,441		(61,630	)		2,027,680
Selling, general and administrative		160,280			110,666		78		—			271,024
Interest		(3,425	)		3,635		—		—			210
Total homebuilding expenses		1,418,822			940,203		1,519		(61,630	)		2,298,914
FINANCIAL SERVICES
General and administrative		—			—		19,114		—			19,114
Interest		—			—		815		—			815
Total financial services expenses		—			—		19,929		—			19,929
CORPORATE EXPENSES		10,325			33,737		—		—			44,062
Total Expenses		1,429,147			973,940		21,448		(61,630	)		2,362,905
Earnings before taxes		227,639			78,062		38,836		—			344,537
Tax expense		87,641			30,054		14,952		—			132,647
Equity in net earnings of subsidiaries		71,892			—		—		(71,892	)		—
NET EARNINGS	$	211,890		$	48,008	$	23,884	$	(71,892	)	$	211,890

THE RYLAND GROUP, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (UNAUDITED)

	SEPTEMBER 30, 2004
				GUARANTOR		NON-GUARANTOR			CONSOLIDATING			CONSOLIDATED
(amounts in thousands)	TRG, INC.			SUBSIDIARIES		SUBSIDIARIES			ELIMINATIONS			TOTAL
ASSETS
HOMEBUILDING
Cash and cash equivalents	$	31,147		$	22,495	$	1,548		$	—		$	55,190
Total housing inventories		1,085,750			750,711		114,428			—			1,950,889
Property, plant and equipment		28,870			20,525		—			—			49,395
Purchase price in excess of net assets acquired		15,383			2,802		—			—			18,185
Other assets		22,810			16,383		7,712			—			46,905
		1,183,960			812,916		123,688			—			2,120,564
FINANCIAL SERVICES
Cash and cash equivalents		—			—		12,610			—			12,610
Mortgage-backed securities and notes receivable		—			—		11,431			—			11,431
Other assets		—			—		32,046			—			32,046
		—			—		56,087			—			56,087
OTHER ASSETS
Net deferred taxes		43,451			—		(3,904	)		—			39,547
Other		76,405			—		11,074			—			87,479
Investment in subsidiaries		67,979			—		—			(67,979	)		—
		187,835			—		7,170			(67,979	)		127,026
TOTAL ASSETS		1,371,795			812,916		186,945			(67,979	)		2,303,677
LIABILITIES
HOMEBUILDING
Accounts payable and other liabilities		284,710			152,366		18,199			—			455,275
Debt		583,500			—		—			—			583,500
		868,210			152,366		18,199			—			1,038,775
FINANCIAL SERVICES
Accounts payable and other liabilities		—			—		23,461			—			23,461
Short-term notes payable		—			—		11,305			—			11,305
		—			—		34,766			—			34,766
OTHER LIABILITIES
Intercompany payable		(393,426	)		273,647		(94,594	)		214,373			—
Other liabilities		174,013			—		6,608			—			180,621
		(219,413	)		273,647		(87,986	)		214,373			180,621
TOTAL LIABILITIES		648,797			426,013		(35,021	)		214,373			1,254,162
MINORITY INTEREST		—			—		89,958			—			89,958
STOCKHOLDERS’ EQUITY		722,998			386,903		132,008			(282,352	)		959,557
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,371,795		$	812,916	$	186,945		$	(67,979	)	$	2,303,677

THE RYLAND GROUP, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

	NINE MONTHS ENDED SEPTEMBER 30, 2004
				GUARANTOR			NON-GUARANTOR			CONSOLIDATING			CONSOLIDATED
(amounts in thousands)	TRG, INC.			SUBSIDIARIES			SUBSIDIARIES			ELIMINATIONS			TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	211,890		$	48,008		$	23,884		$	(71,892	)	$	211,890
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		17,166			10,135			444			—			27,745
Changes in assets and liabilities:
Increase in inventories		(263,779	)		(232,681	)		(33,818	)		—			(530,278	)
Net change in other assets, payables and other liabilities		80,594			(66,449	)		14,630			71,892			100,667
Tax benefit from exercise of stock options		11,822			—			—			—			11,822
Other operating activities, net		3,781			—			6,100			—			9,881
Net cash provided by (used for) operating activities		61,474			(240,987	)		11,240			—			(168,273	)
CASH FLOWS FROM INVESTING ACTIVITIES
Net additions to property, plant and equipment		(19,825	)		(15,285	)		(1,067	)		—			(36,177	)
Principal reduction of mortgage-backed securities, notes receivable and mortgage collateral		—			—			17,414			—			17,414
Net cash (used for) provided by investing activities		(19,825	)		(15,285	)		16,347			—			(18,763	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings against revolving credit facility		43,000			—			—			—			43,000
Decrease in short-term notes payable		—			—			(14,949	)		—			(14,949	)
Common and preferred stock dividends		(7,278	)		—			—			—			(7,278	)
Common stock repurchases		(99,223	)		—			—			—			(99,223	)
Proceeds from stock option exercises		11,652			—			—			—			11,652
Other financing activities, net		6,913			—			(1,983	)		—			4,930
Net cash used for financing activities		(44,936	)		—			(16,932	)		—			(61,868	)
Net (decrease) increase in cash and cash equivalents		(3,287	)		(256,272	)		10,655			—			(248,904	)
Cash and cash equivalents at beginning of period		34,434			278,767			3,503			—			316,704
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	31,147		$	22,495		$	14,158		$	—		$	67,800