William Lyon Homes announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported operating revenue of $490,339,000 against $342,714,000 a year ago. Operating income was $43,170,000 against $21,324,000 a year ago. Income before provision for income tax was $43,965,000 against $24,809,000 a year ago. Net income was $30,060,000 against $16,514,000 a year ago. Net income available to common stockholders was $27,418,000 against $13,069,000 a year ago. Diluted earnings per share was $0.71 against $0.34 a year ago. Adjusted EBITDA was $72,073,000 against $42,905,000 a year ago. The increase in home sales revenue was driven by a 26% increase in deliveries to 851 homes, compared to 673 in the third quarter of 2016, combined with an increase in the average sales price of homes delivered to $576,200, up 13% from the prior year.

For the nine months, the company reported operating revenue of $1,171,885,000 against $932,792,000 a year ago. Operating income was $77,713,000 against $55,787,000 a year ago. Income before provision for income tax was $58,495,000 against $62,400,000 a year ago. Net income was $41,015,000 against $41,541,000 a year ago. Net income available to common stockholders was $36,372,000 against $36,644,000 a year ago. Diluted earnings per share was $0.95 against $0.96 a year ago. Adjusted EBITDA was $147,884,000 against $124,895,000 a year ago. Net income, adjusted for loss on extinguishment of debt, net of tax benefit was $50,448,000 or $1.31 per diluted share.

The company expects fourth quarter results to include backlog conversion of 85% to 92%, sequential gross margin improvement of 50 to 70 basis points, sequential SG&A improvement of 20 to 30 basis points and pre-tax income of $60.0 million to $65.0 million.