Housing gross profit margin was 20.0 percent for the quarter ended December 31, 2012, compared to 18.1 percent for the quarter ended December 31, 2011. This improvement in housing gross profit margin was primarily attributable to a decline in direct construction and land costs; higher leverage of direct overhead expense due to an increase in the number of homes delivered; lower inventory and other valuation adjustments and write-offs; and reduced sales incentives and price concessions. For the fourth quarter of 2012, sales incentives and price concessions totaled 8.7 percent, compared to 10.7 percent for the same period in 2011.Selling, general and administrative expense, including corporate, totaled 13.4 percent of homebuilding revenues for the fourth quarter of 2012, compared to 16.4 percent for the fourth quarter of 2011. This decrease in the selling, general and administrative expense ratio was primarily attributable to higher leverage resulting from increased revenues and to the impact of cost-saving initiatives, partially offset by higher compensation expense primarily due to the impact of fluctuations in the Company’s stock price.
Ryland Reports Results For The Fourth Quarter Of 2012
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