William Lyon Homes (WLS) has reported 12.33 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $23.05 million, or $0.60 a share in the quarter, compared with $26.30 million, or $0.68 a share for the same period last year.    

Revenue during the quarter grew 17.44 percent to $473.25 million from $402.98 million in the previous year period.

Cost of revenue rose 19.19 percent or $63.21 million during the quarter to $392.66 million. Gross margin for the quarter contracted 122 basis points over the previous year period to 17.03 percent.

Total expenses were $435.07 million for the quarter, up 18.55 percent or $68.07 million from year-ago period. Operating margin for the quarter contracted 86 basis points over the previous year period to 8.07 percent.

Operating income for the quarter was $38.18 million, compared with $35.99 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $63.23 million compared with $61.85 million in the prior year period. At the same time, adjusted EBITDA margin contracted 199 basis points in the quarter to 13.36 percent from 15.35 percent in the last year period.  

Revenue from real estate activities during the quarter increased 19.15 percent or $76.06 million to $473.22 million. Revenue from sale of real estate was $473.22 million for the quarter, up 19.15 percent or $76.06 million.

"2016 was a year of continued growth for William Lyon Homes, as we delivered 2,781 homes and achieved homebuilding revenues of $1.4 billion, up 20% and 30%, respectively, and at their highest levels in ten years. Our fourth quarter of 2016 represented another quarter of consistent year-over-year growth across a number of important financial and operational metrics, with homebuilding revenues of $473.2 million, up 19%, new home deliveries of 902 homes, up 11%, average sales price of $524,600, up 7%, and the dollar value of orders of $284.1 million, up 17%. We achieved pre-tax income of $40.4 million for the fourth quarter, up 6%, resulting in net income available to common stockholders of $23.1 million, or $0.60 per diluted share," said Matthew R. Zaist, president and chief executive officer.

Real estate inventory rose 5.78 percent or $96.89 million to $1,772 million on Dec. 31, 2016. Net receivables were at $9.62 million as on Dec. 31, 2016, down 46.18 percent or $8.26 million from year-ago. Accounts payable went down marginally by 2.11 percent or $1.60 million to $74.28 million on Dec. 31, 2016.

Real estate investments stood at $7.28 million as on Dec. 31, 2016, up 34.53 percent or $1.87 million from year-ago.   

Total assets grew 3.88 percent or $74.70 million to $1,998.15 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,234.72 million as on Dec. 31, 2016, down 1.38 percent or $17.26 million from year-ago.

Return on assets moved down 9 basis points to 1.32 percent in the quarter. At the same time, return on equity moved down 90 basis points to 3.02 percent in the quarter.