NEWPORT BEACH, CA -- William Lyon Homes, a leading homebuilder in the Western U.S., announced a second quarter profit of $12.3 Million, on revenue of $247.7 million. The company says net new home orders totaled, 843, up 117% from a year ago.
"Our second quarter results have demonstrated strong business momentum and execution as we benefitted from a healthy spring selling season and our expanded geographic footprint," said William H. Lyon, Co-Chief Executive Officer. "We recorded significant year-over-year increases across a number of key operational metrics, including home sales revenue, the unit and dollar value of orders and backlog, and the number of active selling communities. Positive demographics and employment growth in our markets in excess of the national average are both leading to solid demand against a backdrop of limited supply."
Matthew R. Zaist, Co-Chief Executive Officer and President, stated, "We are very proud of the execution of our operating teams during the second quarter. Net new home orders more than doubled to 843, the highest total since the second quarter of 2005, averaging a monthly absorption rate of 4.2 orders per project, up 23% from a rate of 3.4 in the second quarter of 2014, and up 17%, sequentially, from a rate of 3.6 in the first quarter of 2015. Our July sales continued our year-over-year improvement trends, with net orders up 130% and monthly absorption rates up 30% year-over-year."
Home sales revenue for the second quarter of 2015 was $247.7 million, as compared to $168.2 million in the year-ago period, an increase of 47%. Our performance was driven by a 65% increase in the number of deliveries to 553 homes, compared to 336 homes delivered in the second quarter of 2014. Average sales price of homes delivered was $448,000 in the quarter, compared to $500,500 in the year-ago period. The decline in ASP reflects changes in geographic and product mix.
The dollar value of orders for the second quarter of 2015 was $374.1 million, an increase of 91%, from $195.4 million in the year-ago period. The overall increase in net new home orders was primarily driven by an increase in community count to 67 average sales locations, from 38 in the year-ago period, and an increase in the monthly absorption rate from 3.4 sales per month per project in the second quarter of 2014 to 4.2 sales per month in the current period.
The dollar value of homes in backlog was $471.5 million as of June 30, 2015, an increase of 55% compared to $303.3 million as of June 30, 2014. The increase was driven by a 78% increase in units in backlog to 968 from 544 in the year-ago period.
Adjusted homebuilding gross margin percentage was 26.0% during the second quarter of 2015. Homebuilding gross margins for the quarter were 19.2%. In conjunction with the adoption of purchase accounting related to the Polygon acquisition, GAAP margins were impacted by approximately 330 basis points during the quarter.
SG&A expense during the second quarter of 2015 was 11.4% of homebuilding revenue, compared with 11.9% in the year-ago quarter. Breaking down the components of SG&A, sales and marketing expense was 6.0% of homebuilding revenue during the quarter, compared to 5.3% in the year-ago quarter, driven primarily by higher outside broker expenses, compared to the prior year period. General administrative expenses decreased to 5.4% of homebuilding revenue, compared to 6.6% in the year-ago quarter, as we continued to leverage off of a larger operating platform with a lower relative cost structure.