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Thursday, Mar 28, 2024
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William Lyon Sales Slip, Orders Off

William Lyon Homes Inc. on Tuesday reported a 33% jump in earnings in the first quarter from a year ago. But the good news stopped there.

The homebuilder reported net income of $20.5 million for the quarter. Its revenue slipped 3% from a year ago to $246.7 million.

The Newport Beach-based company saw orders for new homes drop 20% to 873 homes in the quarter, versus a year earlier.

William Lyon had 14% fewer developments to sell at in the first quarter.

The company also is selling in markets that have cooled somewhat, namely Orange County and Las Vegas. The market here has picked up of late, according to recent sales data and brokers.

The homebuilder said in a statement: “The reduction in order activity for the three months ended March 31 was consistent with the company’s expectations and primarily reflects a lack of available product for sale due to stronger than anticipated absorption levels in the previous periods and a decrease in the average number of sales locations.”

Last month, Chief Executive William Lyon detailed plans to take the company private, buying the outstanding shares he doesn’t already own or control via trusts.

Seven shareholder lawsuits have since been filed against him and other directors, charging his offering price of $82 is too low. The stock traded at about $88 early Tuesday.

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