William Lyon Homes (NYSE:WLH) Q1 2018 Earnings Conference Call - Final Transcript

May 08, 2018 • 12:00 pm ET


William Lyon Homes (NYSE:WLH) Q1 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the First Quarter 2018 William Lyon Homes' Earnings Conference Call. My name is James and I'll be your operator for today. At this time, all participants are in a listen-only mode. This call is being recorded and will be available for replay through May 15, 2018 starting this afternoon approximately one hour after the completion of this call. (Operator Instructions)

Now, I'd like to turn the call over to Mr. Larry Clark, Investor Relations for the Company. Please go ahead, Mr. Clark

Larry Clark

Thank you, James. Good morning, and thank you for joining us today to discuss William Lyon Homes' financial results for the three months ended March 31, 2018. By now, you should have received a copy of today's press release. If not, it's available on the company's website at lyonhomes.com.

The earnings press release also includes a reconciliation of non-GAAP financial measures used therein. In addition, we are including an accompanying slide presentation that you can refer to during the call. You can access these slides in the Investor Relations section of the website.

Before we continue, please take a moment to read the company's notice regarding forward-looking statements, which is shown on Slide 1 in the presentation and included in the press release. As explained in the notice, this conference call contains forward-looking statements including statements concerning future financial and operational performance. Actual results may differ materially from those projected in the forward-looking statements and the company does not undertake any obligation to update them. For additional information regarding factors that could cause actual results to differ materially from those contained in the forward-looking statements, please see the company's SEC filings.

With us today from management are Bill H. Lyon, Executive Chairman and Chairman of the Board; Matt Zaist, President and Chief Executive Officer; and Colin Severn, Senior Vice President and Chief Financial Officer.

Now, I'd like to turn the call over to Bill Lyon.

William Lyon

Thank you, Larry.

Welcome, ladies and gentlemen, and thank you for taking the time to join us today. We are very pleased with our accomplishments in the first quarter delivering significant improvement across our operational and financial metrics and executing on a strategic transaction that we feel will be meaningful to our near-term results and help maintain our growth trajectory in the years to come.

On March 9, 2018, we successfully closed the RSI Communities acquisition enhancing our presence in Southern California and marking our entry into Texas. This transaction increases our exposure to the attractive entry-level buyer segment and is aligned with the strategic direction we have highlighted on our conference calls over the past 24 months.

In addition, as a component of the financing for the RSI acquisition, we successfully executed a high-yield-bond offering during the back half of the first quarter raising $350 million of senior unsecured notes. We used the balance of the proceeds to pay off in full our nearest term senior notes maturity of $150 million due 2019, thereby further