William Lyon Homes, a Delaware corporation, which we refer to herein as Parent
and, together with its subsidiaries, the Company, is one of the largest Western
U.S. regional homebuilders. Headquartered in Newport Beach, California, the
Company is primarily engaged in the design, construction, marketing and sale
of single-family detached and attached homes in California, Arizona, Nevada,
Colorado, Washington and Oregon. The Company's core markets currently include
Orange County, Los Angeles, San Diego, the Inland Empire, the San Francisco
Bay Area, Phoenix, Las Vegas, Denver, Fort Collins, Seattle and Portland. The
Company has a distinguished legacy of more than 58 years of homebuilding operations,
over which time the it has sold in excess of 93,000 homes. The Company's markets
are characterized by attractive long-term housing fundamentals. The Company
holds leading market share positions in most of its markets and it has a significant
land supply
The Company has significant expertise in understanding the needs of its homebuyers
and designing its product offerings to meet those needs. This allows the Company
to maximize the return on its land investments by tailoring its home offerings
to meet the buyer demands in each of its markets. The Company builds and sells
across a diverse range of product lines at a variety of price points with an
emphasis on sales to entry-level, first-time move-up and second-time move-up
homebuyers. The Company is committed to achieving the highest standards in design,
quality and customer satisfaction and has received numerous industry awards
and commendations throughout its operating history in recognition of its achievements.
Through the recent strategic acquisition of the residential homebuilding business
of Polygon Northwest, or the Polygon Acquisition, in August 2014, the Company
expanded its geographic footprint and increased the scale of its existing operations
within the Western U.S. region, acquiring a company that not only has demonstrated
impressive operating results but that also is complementary in terms of product
offering and cultural fit, with a similar strong reputation for high customer
satisfaction and new home quality. The Company believes that Polygon Northwest
was the largest private homebuilder in the Pacific Northwest region at the time
of the acquisition, with #2 market positions in each of its core markets of
Seattle and Portland. Polygon Northwest has operated in the Pacific Northwest
region for over 20 years, delivering approximately 16,000 homes during such
time period.
The Company currently has a wide variety of product lines which enables it
to meet the specific needs of each of its markets. The Company creates product
for the entry-level, first time move-up, second time move-up, and luxury home
markets, and believes that a diversified product strategy enables it to best
serve a wide range of buyers and adapt quickly to a variety of market conditions.
In order to reduce exposure to local market conditions, the Company’s
sales locations are geographically dispersed.
Because the decision as to which product to develop is based on the Company’s
assessment of market conditions and the restrictions imposed by government regulations,
home styles and sizes vary from project to project. The Company generally standardizes
and limits the number of home designs within any given product line. This standardization
permits on-site mass production techniques and bulk purchasing of materials
and components, thus enabling the Company to better control and sometimes reduce
construction costs and home construction cycles.
The Company contracts with a number of architects and other consultants who
are involved in the design process of the Company’s homes. Designs are
constrained by zoning requirements, building codes, energy efficiency laws and
local architectural guidelines, among other factors. Engineering, landscaping,
master-planning and environmental impact analysis work are subcontracted to
independent firms which are familiar with local requirements.
Substantially all construction work is done by subcontractors with the Company
acting as the general contractor. The Company manages subcontractor activities
with on-site supervisory employees and management control systems. The Company
does not have long-term contractual commitments with its subcontractors or suppliers,
and instead it contracts development work by project and where possible by phase
size of 10 to 20 home sites. The Company generally has been able to obtain sufficient
materials and subcontractors during times of material shortages, though it has
experienced skilled labor shortages in certain markets during times of peak
demand. The Company believes its relationships with its suppliers and subcontractors
are in good standing.
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