Newport Beach-based William Lyon Homes Inc. reported net income of $39.4 million in the second quarter, a big swing from the $38.9 million loss the homebuilder saw a year ago.
The improved results were due in large part to a $49 million gain the company recorded from buying back its outstanding senior notes at a discount to their face value.
The company, which went private in 2006 but still reports results for debt holders, posted revenue of $77.4 million in the quarter, a 45% drop from a year ago.
William Lyon Homes closed on 202 homes in the quarter, a 37% drop from a year ago. The average price of closed home in the quarter was $333,700, a 20% decline from a year ago.
William Lyon Homes builds in California, Arizona and Nevada.
The company’s biggest deals in the second quarter weren’t housing related. William Lyon Homes completed a series of tender offers in the second quarter, buying back its outstanding senior notes.
In one tender offer, notes with a face value of $53 million were acquired for $14.9 million. In another series of privately negotiated transactions, $31 million of notes were bought for $9.7 million.
Upon settlement of the transactions, the company said the senior notes were canceled, and recorded a $49 million gain of the retirement of debt.
