Ryland group of Calabasas declares record-breaking year

Although record low interest rates continue to fuel the demand for housing, industry experts in California fear the high cost of land and the opposition to new development will make it difficult for builders to reap ongoing profits.

And while Wall Street’s enthusiasm for the homebuilding industry has dampened in recent weeks, The Ryland Group (NYSE: RYL) is expecting a record year and wants stockholders to share in the wealth.

The board of directors of the Calabasas-based company last week announced a regular dividend of $.02 per share to holders of record on Oct. 15, 2003, payable on Oct. 30, 2003.

In addition, the company authorized the repurchase of an additional 1 million common shares. The company had already purchased 1 million shares of its own stock in 2003.

"We are anticipating another record-breaking year in 2003," said R. Chad Dreier, president and CEO of The Ryland Group. "Our price-earnings multiple remains relatively low, creating this excellent opportunity for us to further enhance shareholder value by continuing our aggressive share repurchase program."

Ryland had 25 million shares outstanding on Dec. 31, 2002. The company’s stock hit a 52-week high of $79 on July 15, but has since fallen back to the $69 to $70 range. The stock trades at about 10 times earnings. It split two-for-one in 2002.

Ryland is one of the nation’s largest homebuilders and a leading mortgage finance company. Operating in 26 markets across the country, Ryland has built more than 210,000 homes and financed more than 180,000 mortgages since its founding in 1967.

New housing orders for the March quarter hit a record 4,260, a 13.4 percent increase vs. the 3,757 orders reported for the first quarter of 2002. Ryland built 13,145 homes last year at an average price of $210,000 and recorded its fourth consecutive year of record earnings.

Ryland moved its national headquarters to Calabasas in 2000 and is located at 24025 Park Sorrento.

—John Loesing