Ryland focused on generating cash, will look to purchase land

By Jennifer Lanning Drey

Portland, Ore., Jan. 14 - Ryland Group Inc.'s goal for 2009 is to generate cash, some of which is likely to be used on land purchases when prices become more attractive, Larry Nicholson, chief operating officer of Ryland, said during a Wednesday presentation at the 2009 Credit Suisse Homebuilder Conference in New York.

"Our position is we want to maintain a strong cash balance and use it diligently," Nicholson said.

Ryland ended the third quarter with $345 million of cash and expects to generate positive cash flow in the fourth quarter.

"We think we're in a good place financially going forward," Nicholson said.

"We think the strong will survive. We believe we'll be a survivor and as the market turns, the guys that are left are going to have great opportunities, and we think we'll be one of the folks that are left."

The company expects land to begin coming to the market at appropriate prices within the next three to six months, he said.

The company has a zero balance on its revolving credit facility and does not expect to draw on the facility in the future. The revolver matures in January 2011.

"Our balance sheet is, we think, very strong, and we think it will continue to strengthen," Nicholson said.

Ryland is a Calabasas, Calif.-based homebuilder and finance company.

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