<PAGE>
THIS DOCUMENT IS A COPY OF THE FORM 11-K ANNUAL
REPORT FILED ON 7/1/94 PURSUANT TO A RULE 201
TEMPORARY HARDSHIP EXEMPTION.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED].
For the transition period from________to________.
Commission file number 1-8029 .
A. The Ryland Group, Inc. Retirement and Stock Ownership Plan
B. The Ryland Group, Inc.
11000 Broken Land Parkway
Columbia, Maryland, 21044
<PAGE>
THE RYLAND GROUP, INC.
Information Required by Form 11-K
INDEX
Page Number
Report of Independent Auditors 1
Item 4. Audited Financial Statements
and Schedules 2-20
Exhibit 24. Consent of Ernst and Young,
Independent Auditors 21
SIGNATURES 22
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Employee Benefits Committee
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
We have audited the accompanying statements of net assets available for
plan benefits of The Ryland Group, Inc. Retirement and Stock Ownership
Plan as of December 31, 1993 and 1992, and the related statements of
changes in net assets available for plan benefits for the years then
ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan
benefits of the Plan at December 31, 1993 and 1992, and the changes in
its net assets available for plan benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes as of December 31, 1993
and reportable transactions for the year then ended are presented for
purposes of complying with the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974, and are not a required part of the financial
statements. The supplemental schedules have been subjected to the
auditing procedures applied in our audit of the 1993 financial statements
and, in our opinion, are fairly stated in all material respects in
relation to the 1993 financial statements taken as a whole.
As discussed in Note B to the financial statements, in 1992 the Plan
changed its method of accounting for accrued benefits to terminated
participants.
/s/ Ernst & Young
June 23, 1994
1
<PAGE>
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
<TABLE> December 31, December 31,
1993 1992
----------- ----------
<S> <C> <C>
ASSETS
Receivables:
Accrued employer contributions $1,291,250
Accrued participant contributions 242
Accrued interest and dividends 416,919 $ 43,773
---------- ----------
Total receivables 1,708,411 43,773
Investments at market value:
Short-term investments 115,401 19,449,460
CIGNA Income Fund 7,234,084 5,708,126
Preferred stock of
The Ryland Group, Inc.
Unallocated 21,512,045 23,887,481
Allocated 12,088,070 9,521,626
Common stock of
The Ryland Group, Inc. 619,780 875 857
Mutual funds 22,503,700 1,949,730
Loans to participants 1,971,375 2,392,866
---------- ----------
Total investments 66,044,455 63,785,146
---------- ----------
Total Assets 67,752,866 63,828,919
---------- ----------
LIABILITIES
Accounts payable 29,358
Loan payable to
The Ryland Group, Inc. 28,114,880 31,072,301
---------- ----------
Total Liabilities 28,144,238 31,072,301
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $39,608,628 $32,756,618
=========== ===========
See notes to financial statements
</TABLE>
2
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
<TABLE> Year Ended Year Ended
December 31, December 31,
1993 1992
----------- -----------
<S> <C> <C>
ADDITIONS
Contributions:
Employer $ 5,138,514 $ 3,471,258
Participants 4,454,959 3,200,836
Rollovers 231,023 1,666,260
---------- ----------
Total contributions 9,824,496 8,338,354
Interest:
Short-term investments 1,856 17,574
CIGNA Income Fund 516,586 392,825
Mutual funds 68,638
U.S Government securities 18,717
Corporate bonds 316,275
Participant loans 171,948 200,134
----------- -----------
Total interest 690,390 1,014,163
Dividends:
The Ryland Group, Inc.
Preferred stock 2,589,000 2,677,136
Common Stock 20,013 23,173
Mutual funds 1,575,160 562,246
Unaffiliated common stock 133,676
----------- -----------
Total dividends 4,184,173 3,396,231
----------- -----------
Total Additions 14,699,059 12,748,748
DEDUCTIONS
Benefit payments to participants 6,228,059 4,668,881
Interest expense 3,044,665 3,322,414
Administrative expenses 82,017 185,488
----------- ----------
Total Deductions 9,354,741 8,176,783
Net (loss) gain on sale of investments (444,606) 1,935,674
Net unrealized appreciation (depreciation)
in market value of investments 1,952,298 (2,536,157)
----------- ----------
Increase in net assets
available for plan benefits 6,852,010 3,971,482
Net assets available for plan benefits at
beginning of year 32,756,618 28,785,136
----------- -----------
Net assets available for plan benefits at
end of year $39,608,628 $32,756,618
============= ===========
See notes to financial statements
</TABLE> 3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the The Ryland Group, Inc. Retirement and
Stock Ownership Plan ("the Plan" or "the RSOP") are prepared on the
accrual basis of accounting.
Investments are stated at aggregate current market value. Securities
traded on a national securities exchange are valued at the last reported
sales price on the last business day of the Plan year. The Preferred
Stock of The Ryland Group, Inc. (the "Company"), is valued quarterly by an
independent appraiser, with a minimum guaranteed value of $25.25 by the
Company. Deposits invested by the Trustee in funds maintained by CIGNA
are stated at current redemption value. The Trustee invests any excess
funds on a short-term basis in common trust funds.
The change in the difference between current market value and the cost of
investments is reflected in the statement of changes in net assets
available for plan benefits as net unrealized appreciation or depreciation
in market value of investments.
The net gain or loss on sale of investments reflects the difference
between the proceeds received and the cost of the specific investment
shares sold. Expenses relating to the purchase or sale of investments are
added to their cost or deducted from their proceeds.
During 1992, administrative services, trustee fees, investment advisors
fees and other direct expenses were paid by the Plan and were based on
customary and reasonable rates for such services. Effective January 1,
1993, each participant account is charged a flat fee of $12.50 per
quarter to pay for a portion of such expenses. The Company pays
administrative costs to the extent they are not covered by the
participants.
The Plan accounts for benefits due but unpaid as a component of net assets
available for plan benefits. Benefits due but unpaid were approximately
$321,446 and $642,800 at December 31, 1993 and 1992, respectively.
On January 1, 1992, approximately $1,144,000 of participant balances in
the Brock (the Company's California operations) 401(k) plan were
transferred into the RSOP as a result of that plan's termination on
December 31, 1991. Participant balances were allocated among the
available RSOP investment options. This transfer and allocation of
monies are reflected in the Statement of Changes in Net Assets Available
for Plan Benefits as part of the rollover contributions reported for
1992.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE B: CHANGE IN ACCOUNTING PRINCIPLE
Prior to 1992, the Plan accounted for benefits due but unpaid as a
liability of the Plan and, accordingly, a reduction of net assets
available for plan benefits. During 1992, the American Institute of
Certified Public Accountants issued the Industry Audit Guide "Audits of
Employee Benefit Plans" which requires that benefits due but unpaid be
included as a component of net assets available for plan benefits and
disclosed in a note to the financial statements. As a result of this
change, the accompanying financial statements have been restated and net
assets available for plan benefits increased by approximately $1,901,900
at January 1, 1992. Also, the change in net assets available for plan
benefits was decreased by the same amount for the year ended December 31,
1992.
NOTE C: DESCRIPTION OF THE PLAN
General
The RSOP was established on August 16, 1989. Designed to be an employee
stock ownership plan with a deferred compensation and profit sharing
arrangement, the Plan permits deferral of a portion of participants'
pretax income pursuant to Section 401(k) of the Internal Revenue Code.
These participant contributions into the plan are combined with Company
contributions of Series A ESOP Convertible Preferred Stock (the
"Preferred Stock"), which are allocated to participants as a match of
their pretax deferrals and as a discretionary contribution resulting from
the Company's desire to share profits with participants.
Employee Eligibility
Employees are eligible to participate in the Plan at the beginning of the
first pay period of the month that follows completion of a one-year
period of service. An employee will be credited with a one-year period
of service upon completion of at least 1,000 hours of service in the 12-
month period beginning on the date of his/her employment or in any plan
year beginning thereafter.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE C: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options
Each eligible employee may elect to contribute on a pretax basis, through
a system of payroll deductions, any whole number percentage, from
one percent (1%) to twelve percent (12%), of the eligible employee's
compensation. In accordance with IRS regulations, no employee may
contribute more than $8,994 to the Plan for the 1993 calendar year.
The Plan provides participants with investment options with respect to
participant contributions. Participant contributions for 1992 were
invested, at the discretion of the participant, in any combination of the
five investment option funds below in 1 percent increments. The
investment options for 1992 were:
The Ryland Group, Inc. Common Stock--The Ryland Stock Fund consists
exclusively of The Ryland Group, Inc. Common Stock. The Fund is
managed by Wachovia Bank of North Carolina, N.A. , which also
manages all purchases and sales of Common Stock. At December 31,
1992, 391 employees were participating in this option.
Vanguard Money Market Fund (U.S. Treasury Portfolio) --The Vanguard
Money Market Fund (U.S. Treasury Portfolio) is a money market mutual
fund which invests in short-term U.S. Government Securities. At
December 31, 1992, 571 employees were participating in this option.
Vanguard Explorer I Fund--The Vanguard Explorer I Fund is a mutual
fund seeking long-term growth of capital by investing primarily in
equity securities of relatively small unseasoned or embryonic
companies. Most of the securities purchased are not listed on the
national stock exchanges but have an established over the counter
market, the depth and liquidity of which will vary. The Fund's
investments are diversified but may be considered speculative. At
December 31, 1992,560 employees were participating in this option.
Vanguard Windsor I Fund, Inc.--The Vanguard Windsor I Fund is a
mutual fund which seeks long-term growth through investments, mostly
in common stocks. A secondary objective is to provide current
income, through dividends, which is then reinvested in the Fund.
The Fund's investments are typically characterized by low price-
earnings ratios and reasonably good income yields. At
December 31, 1992, 955 employees were participating in this option.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE C: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options - cont.
CIGNA Income Fund --The CIGNA Income Fund is a fund which consists
of investments in intermediate-term obligations of a "fixed income"
nature. These are predominantly public and direct placement bonds
and mortgages. Interest rates on funds are declared annually and in
advance. At December 31, 1992, 886 employees were participating in
this option.
In May 1992, the Employee Benefits Committee agreed to eliminate The Ryland
Group, Inc. Common Stock Fund and the Vanguard Explorer, Windsor and Money
Market funds as RSOP investment options for participants effective January
1, 1993. Four new investment options were chosen to replace these funds.
Participant balances in the Vanguard funds were transferred at the
participant's discretion among the CIGNA Income Fund and the four new funds
described below. Participant balances in The Ryland Group Inc. Common
Stock fund remain as frozen options which can be liquidated at the
participant's option. At December 31, 1993, 244 employees were maintaining
balances in The Ryland Group, Inc. Common Stock Fund, and 904 employees
were participating in the CIGNA Income Fund investment option.
New Investment Options for 1993:
Putnam Voyager Fund --The Putnam Voyager Fund is an aggressive
equity mutual fund seeking capital appreciation primarily by
investing in emerging growth stocks of small to medium sized
companies with the potential for above average sales and earnings
growth as well as opportunity stocks of larger, well-established
companies, which show near-term growth potential resulting from
some change in the company's business plan or competitive
environment. The investment manager of this fund is The Putnam
Management Company, Inc. At December 31, 1993, 999 employees
were participating in this option.
Kemper Growth Fund --The Kemper Growth Fund is an equity mutual
fund which seeks growth of capital by primarily investing in common
stocks of companies that are typically characterized by above average
profitability, leadership position in the industry, good management,
increasing demand for the companies' products and services, and new
product development. The investment manager of this fund is Kemper
Financial Services, Inc. At December 31, 1993, 1,157 employees were
participating in this option.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE C: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options - cont.
American Balanced Fund --The American Balanced Fund is a
conservative mutual fund seeking preservation of capital and income
as well as long-term growth of capital and income by broadly
investing in a diversified portfolio of blue chip common stocks,
preferred stocks, corporate bonds, and U.S. Government securities.
The investment advisor of this fund is Capital Research and
Management Company (CRMC). At December 31, 1993, 1,078 employees
were participating in this option.
Standish Fixed Income Fund --The Standish Fixed Income Fund is a
mutual fund seeking to achieve a high level of current income while
preserving principal and liquidity by primarily investing in a
diversified portfolio of investment-grade fixed income securities
such as bonds, notes, mortgage pass-through securities, convertible
debt securities and debt securities with an average maturity of
five to thirteen years. The investment advisor of this fund is
Standish, Ayer & Wood, Inc. At December 31, 1993, 607 employees
were participating in this option.
Elimination of Pooled Fund
In addition to eliminating the Vanguard Funds, the Employee Benefit
Committee also agreed to eliminate, effective January 1, 1993, the pooled
fund which managed investments of pre-1990 company contributions for the
Profit Sharing Trust (PST), a predecessor plan to the RSOP. The PST
participant balances, which were invested with Standish, Ayer and Wood,
were freed to be allocated at the participants' discretion among the 1993
RSOP investment options.
Company Contributions
Contributions made by the Company are made to The Ryland Group, Inc.
Preferred Stock Fund.
Following each calendar quarter, the Company will match one hundred
percent (100%) of the participant's contributions, not to exceed six
percent (6%) of the participant's compensation. In addition, the Company
may make a discretionary contribution for any plan year. The amount is
determined by resolution of the Board of Directors and will at least
equal the amount required to make an ESOP Loan (defined below)
amortization payment for such plan year after application of matching
contributions, dividends and forfeitures for the plan year. The Company
has not made discretionary contributions for the years ended December 31,
1993 and 1992.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE C: DESCRIPTION OF THE PLAN--CONTINUED
Vesting
Participants' contributions are fully vested at all times. The Plan
provides for graduated vesting of Company contributions of 25% after two
years' service and 25% additional vesting for each year thereafter until
the fifth year, at which time participants are 100% vested. Participants
are automatically vested upon death, disability or retirement at age 65.
ESOP Loan
The "ESOP Loan" is a loan between the Company and the Plan; the proceeds
were used by the Plan to acquire the Preferred Stock (see Note D below).
To the extent Company contributions, including matching contributions and
discretionary contributions, are used to make an ESOP Loan amortization
payment, such contributions are made in cash. After each ESOP Loan
amortization payment is made, a number of shares of Preferred Stock are
released from the ESOP Loan suspense account based on a predetermined
formula. Following the release of the Preferred Stock from the ESOP Loan
suspense account and allocation of a portion of the shares of Preferred
Stock attributable to dividends, the remaining shares of Preferred Stock
are allocated among the participants' Convertible Preferred Stock
accounts based on the amount of the matching contributions. Any
remaining shares of Preferred Stock attributable to the discretionary
contribution are allocated among the participants' Convertible Preferred
Stock accounts based on participants' compensation.
Other
The Company expects and intends to continue the Plan indefinitely but
reserves the right to amend, suspend or terminate the Plan at any time. If
the Company terminates the Plan, each participant will become fully vested
in all of his or her accounts under the Plan and will be entitled to a
distribution of such accounts in accordance with the terms of the Plan.
Earnings on investments, net gains or losses on sales of investments and
unrealized appreciation or depreciation in market value of investments
are allocated to individual participant accounts based on a ratio of the
individual's account balance to the total fund balance.
The maximum accounting loss the Plan would incur if parties to the
financial instruments failed to perform would be the current value of the
investment as stated on the Statement of Net Assets Available for Plan
Benefits. None of the investments are secured by collateral.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE C: DESCRIPTION OF THE PLAN--CONTINUED
Additional information about the Plan agreement is contained in the
pamphlet The Ryland Retirement and Stock Ownership Plan. Copies of this
pamphlet are available from the Company's Employee Benefits Department.
NOTE D: PREFERRED STOCK AND THE LOAN PAYABLE TO RYLAND
On August 31, 1989, the Company sold 1,267,327 shares of non-transferable
Series A ESOP Convertible Preferred Stock, par value $1.00, to the Plan
for $31.5625 per share, or an aggregate purchase price of approximately
$40,000,000. Each share of Preferred Stock will pay an annual cumulative
dividend of $2.2094, or 7.0 percent of the purchase price per share, and
is convertible initially into one share of the Company's Common Stock.
During 1993 and 1992, the Company paid $2,589,000 and $2,677,136 in
dividends on the Preferred Stock. Each share of Preferred Stock is
entitled to a number of votes equal to the shares into which it is
convertible, and the holders of the Preferred Stock generally vote
together with the Common Stock on all matters. The conversion and voting
rights of the Preferred Stock are subject to anti-dilution adjustments.
The Plan's purchase of shares of Preferred Stock was financed by a loan
to the Plan from the Company in an amount of $40,000,000. The loan bears
interest at the rate of 9.99 percent and is expected to be repaid over 10
years by the Plan through dividends received on the Preferred Stock and
Company contributions. The Plan incurred approximately $3,045,000 and
$3,322,000 of interest on this loan in 1993 and 1992. Participants
receive allocations of the Preferred Stock as debt payments are made.
During 1993 and 1992, there were 118,340 and 117,167 shares released
respectively and distributed to participants. The unallocated preferred
shares are collateral to the loan payable to Ryland. As of December 31,
1993, there were 738,610 unallocated preferred shares with an approximate
value of $21,512,000. At December 31, 1992 there were 856,950
unallocated preferred shares with an approximate value of $23,887,000.
Maturities of the loan payable to Ryland for each of the next five years
are as follows:
<TABLE>
<S> <C>
1994 $4,642,565
1995 $3,678,104
1996 $5,908,209
1997 $6,388,298
1998 $6,880,634
</TABLE>
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE E: DISTRIBUTIONS
A participant who terminates employment with the Company by reason
of a separation from service, death, disability or retirement will
be paid the current value of his/her contributions to the Plan,
plus the vested portion of his/her account, if any, attributable to
Company contributions. Distributions from a participant's vested
portion of his/her Convertible Preferred Stock account will be made
at the participant's election either in cash or whole shares of
Common Stock of the Company. If the participant elects to receive
Common Stock, the Trustee will convert each share of Preferred
Stock held in the participant's Convertible Preferred Stock account
into one share of Common Stock and will receive in cash any
differential between the current Common Stock price and the
appraised value of the Preferred Stock. The Trustee will then use
the cash to acquire additional shares of Common Stock and will
distribute the total number of shares of Common Stock that were
acquired. If the participant elects to receive cash, the Trustee
will convert each share of Preferred Stock into the number of
shares of Common Stock into which such Preferred Stock is
convertible, and will receive in cash any differential between the
current Common Stock price and the fair market value of the
Preferred Stock. The Trustee will then sell the shares of Common
Stock on the open market and distribute the cash proceeds. The non-
vested portion of the Company's contributions credited to the
terminating participant is forfeited immediately.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE F: INVESTMENTS
During 1993 and 1992, the Plan's investments (including investments
bought and sold, as well as held during the year) appreciated
(depreciated) in market value by $1,507,692 and $(600,483), respectively.
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation)in
FOR THE YEAR ENDED Market Value Market Value at
DECEMBER 31, 1993 During Year End of Year
---------------- --------------
<S> <C> <C>
Common Stock--
The Ryland Group, Inc. $ (30,771) $ 619,780
Putnam Voyager Fund 598,684 4,970,340
Kemper Growth Fund (333,307) 7,210,603
American Balanced Fund 104,232 6,931,783
CIGNA Income Fund 0 7,234,084
Capitol Money Market Fund 0 115,401
Standish Fixed Income Fund 124,419 3,390,974
Preferred Stock--
The Ryland Group, Inc. 1,044,435 33,600,115
Loans to Participants 0 1,971,375
-------------- -------------
Total $ 1,507,692 $ 66,044,455
=============== ==============
</TABLE>
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE F: INVESTMENTS--CONTINUED
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation)
FOR THE YEAR ENDED in Market Value Market Value at
DECEMBER 31, 1992 During Year End of Year
-------------- --------------
<S> <C> <C>
Common Stock--
The Ryland Group, Inc. $ (126,397) $ 875,857
Vanguard Money Market Fund 0 1,949,730
Vanguard Explorer Fund 171,912 0
Vguard Windsor Fund 424,364 0
CIGNA Income Fund 0 5,708,126
Capitol Money Market Fund 0 19,449,460
Common Stock--
Unaffiiated Issuers 243,372 0
U.S Government Bonds and Notes 9,473 0
Corporate Bond Mutual Fund 47,924 0
Equity Mutual Funds 41,448 0
Preferred Stock--
The Ryland Group, Inc. (1,412,579) 33,409,107
Loans to Participants 0 2,392,866
------------ -----------
Total $ (600,483) $63,785,146
============ ===========
</TABLE>
The market value of individual investments that represent 5% or more of
the Plan's net assets are as follows:
<TABLE>
<CAPTION>
December 31, December 31,
1993 1992
------------- -------------
<S> <C> <C>
Putnam Voyager $ 4,970,340
Kemper Growth Fund $ 7,210,603
American Balanced Fund $ 6,931,783
Standish Fixed Income Fund $ 3,390,974
Vanguard Money
Market Fund $ 1,949,730
CIGNA Income Fund $ 7,234,084 $ 5,708,126
Preferred Stock--
The Ryland Group, Inc. $ 33,600,115 $ 33,409,107
Capitol Money Market
Mutual Funds Class A $ 19,449,460
Loans to Participants $ 1,971,375 $ 2,392,866
</TABLE>
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE G: INCOME TAX STATUS
The Plan is intended to be a tax-qualified plan under Section 401 of the
Internal Revenue Code (IRC), and, therefore, not subject to tax under
present income tax regulations. The Internal Revenue Service (IRS) is
currently reviewing the regulations of Section 401 to determine if an ESOP
with ESIP provisions should be governed by this section. The ultimate
receipt of a favorable IRS determination letter by the Plan cannot be
predicted at this time. Currently, participants are not subject to federal
income tax on contributions to the Plan and income thereon until such
amounts are distributed to them.
The Company intends to make any adjustments to the Plan that may be
required in order for this Plan to remain a tax-qualified plan under the
appropriate IRC section.
14
<PAGE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1993
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Ryland Putnam Kemper
Common Voyager Growth
--------- -------- ---------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions
Accrued employee contributions $ 3,310 $ 6,326
Accrued interest and dividends 187,148 2,722
--------- ---------- ----------
Total receivables 190,458 9,048
Investments at market value:
Short-term investments $ 2,943
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc. 619,660
Mutual funds 4,970,340 7,210,603
Loans to participants
---------- ----------- ---------
Total investments 622,603 4,970,340 7,210,603
---------- ----------- ---------
Total Assets 622,603 5,160,798 7,219,651
========== ========== ==========
LIABILITIES
Accounts payable 283 1,403 4,236
Loan payable to
The Ryland Group, Inc.
Interfund payables (receivables) (374,837) (7,101)
---------- ----------- ---------
Total Liabilities 283 (373,434) (2,865)
---------- ---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $622,320 $5,534,232 $7,222,516
========== =========== ===========
</Table
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1993
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
</TABLE>
<TABLE>
<CAPTION>
American Standish
Balanced Fixed Income CIGNA
---------- ----------- ------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions
Accrued employee contributions $ 1,642 $ (8,712) $(2,324)
Accrued interest and dividends 54 183,029 43,961
--------- ---------- -------
Total receivables 1,696 174,317 41,637
Investments at market value:
Short-term investments 67,915 42,565
CIGNA Income Fund 7,234,084
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds 6,931,783 3,390,974
Loans to participants
---------- ----------- ---------
Total investments 6,999,698 3,390,974 7,276,649
---------- ----------- -----------
Total Assets 7,001,394 3,565,291 7,318,286
========== =========== ===========
LIABILITIES
Accounts payable 1,476 4,624 17,336
Loan payable to
The Ryland Group, Inc.
Interfund payables (receivables) 92,906 (87,283) 376,119
---------- ----------- ----------
Total Liabilities 94,382 (82,659) 393,455
---------- ---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $6,907,012 $3,647,950 $6,924,831
=========== ========== ===========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1993
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Ryland Pooled Loan
Preferred Investments Fund
--------- ---------- ---------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions $1,291,250
Accrued employee contributions
Accrued interest and dividends 5
--------- ---------- ----------
Total receivables 1,291,255 0 0
Investments at market value:
Short-term investments 1,978
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc. 33,600,115
Common stock of
The Ryland Group, Inc. 120
Mutual funds
Loans to participants $1,971,375
---------- ----------- -----------
Total investments 33,602,213 0 1,971,375
---------- ----------- -----------
Total Assets 34,893,468 0 1,971,375
========== ============ ===========
LIABILITIES
Accounts payable
Loan payable to
The Ryland Group, Inc. 28,114,880
Interfund payables (receivables) 196
---------- ----------- ----------
Total Liabilities 28,114,880 0 196
---------- ----------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $6,778,588 $ 0 $1,971,179
=========== =========== ===========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1993
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Insured Explorer Windsor
--------- -------- ---------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions
Accrued employee contributions
Accrued interest and dividends
--------- ---------- ----------
Total receivables $ 0 $ 0 $ 0
Investments at market value:
Short-term investments
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds
Loans to participants
---------- ----------- -----------
Total investments 0 0 0
---------- ----------- -----------
Total Assets 0 0 0
========== =========== ===========
LIABILITIES
Accounts payable
Loan payable to
The Ryland Group, Inc.
Interfund payables (receivables)
---------- ----------- ----------
Total Liabilities 0 0 0
---------- ----------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 0 $ 0 $ 0
=========== =========== ===========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1993
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Total
---------
<S> <C>
ASSETS
Receivables:
Accrued employer contributions $1,291,250
Accrued employee contributions 242
Accrued interest and dividends 416,919
----------
Total receivables 1,708,411
Investments at market value:
Short-term investments 115,401
CIGNA Income Fund 7,234,084
Preferred stock of
The Ryland Group, Inc. 33,600,115
Common stock of
The Ryland Group, Inc. 619,780
Mutual funds 22,503,700
Loans to participants 1,971,375
-----------
Total investments 66,044,455
-----------
Total Assets 67,752,866
===========
LIABILITIES
Accounts payable 29,358
Loan payable to
The Ryland Group, Inc. 28,114,880
Interfund payables (receivables) 0
----------
Total Liabilities 28,144,238
----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $39,608,628
===========
15
<PAGE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1992
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
</TABLE>
<TABLE>
<CAPTION>
Ryland Vanguard Vanguard
Common Insured Explorer
--------- -------- ---------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ 18 $ 4,797 $ 235
---------- ---------- -----------
Total receivables 18 4,797 235
Investments at market value:
Short-term investments 8,888 21,849 2,413,114
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc. 875,733
Mutual funds 1,949,730
Loans to participants
---------- ----------- ---------
Total investments 884,621 1,971,579 2,413,114
---------- ----------- ---------
Total Assets 884,639 1,976,376 2,413,349
========= ========== ==========
LIABILITIES
Loan payable to
The Ryland Group, Inc.
Interfund payables (receivables) (11,260) (3,506) 45,090
---------- ----------- ---------
Total Liabilities (11,260) (3,506) 45,090
---------- ----------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $895,899 $1,979,882 $2,368,259
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1992
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Vanguard Pooled
Windsor CIGNA Investments
----------- -------- ------------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ 629 $ 35,204 $ 2,890
---------- ---------- ---------
Total receivables 629 35,204 2,890
Investments at market value:
Short-term investments 6,924,114 144,736 9,929,394
CIGNA Income Fund 5,708,126
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds
Loans to participants
---------- ----------- ---------
Total investments 6,924,114 5,852,862 9,929,394
---------- ----------- ---------
Total Assets 6,294,743 5,888,066 9,932,284
========= ========== ==========
LIABILITIES
Loan payable to
The Ryland Group, Inc.
Interfund payables (receivables) ( 4,396) (34,887) 6,788
---------- ----------- ---------
Total Liabilities ( 4,396) (34,887) 6,788
---------- ----------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $6,929,139 $5,922,953 $9,925,496
========== ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
December 31, 1992
NOTE H: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Ryland Loan
Preferred Fund Total
----------- -------- ------------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ $ $ 43,773
---------- ---------- ---------
Total receivables 0 0 43,773
Investments at market value:
Short-term investments 7,365 19,449,460
CIGNA Income Fund 5,708,126
Preferred stock of
The Ryland Group, Inc. 33,409,107 33,409,107
Common stock of
The Ryland Group, Inc. 124 875,857
Mutual funds 1,949,730
Loans to participants 2,392,866 2,392,866
---------- ----------- ---------
Total investments 33,416,596 2,392,866 63,785,146
---------- ----------- ---------
Total Assets 33,416,596 2,392,866 63,828,919
========== ========== ==========
LIABILITIES
Loan payable to
The Ryland Group, Inc. 31,072,301 31,072,301
Interfund payables (receivables) 2,171 0
---------- ----------- ---------
Total Liabilities 31,072,301 2,171 31,072,301
---------- ----------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $2,344,295 $2,390,695 $32,756,618
========== ========== ===========
</TABLE>
16
<PAGE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1993
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Ryland Putnam Kemper
Common Voyager Growth
--------- -------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer
Participants $ 971,317 $1,273,180
Rollovers 78,549 57,905
--------- ---------- ----------
Total contributions 0 1,049,866 1,331,085
Earnings on investments
Interest $ 116 414 573
Dividends 20,013 185,667 490,849
--------- ---------- ----------
Total Additions 20,129 1,235,947 1,822,507
--------- ---------- ----------
DEDUCTIONS
Benefit payments to
participants 54,226 290,194 661,755
Interest expense
Administrative expenses 14,187 18,661
--------- ---------- ----------
Total Deductions 54,226 304,381 680,416
---------- ----------- ---------
Net gain (loss) on sale
of investments 7,949 22,549 (4,453)
Net unrealized (depreciation)
appreciation in market
value of investments (38,720) 576,135 (328,854)
Interfund transfers (208,711) 4,003,982 6,413,732
--------- ---------- ----------
Net Increase (Decrease) (273,579) 5,534,232 7,222,516
Net assets at beginning
of year 895,899 0 0
--------- ---------- ----------
Net assets at end of year $622,320 $5,534,232 $7,222,516
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1993
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
American Standish
Balanced Fixed Income CIGNA
--------- ------------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer
Participants $1,015,174 $ 369,183 $ 826,105
Rollovers 39,045 23,236 32,288
--------- ---------- ----------
Total contributions 1,054,219 392,419 858,393
Earnings on investments
Interest 446 307 516,586
Dividends 530,570 368,074
--------- ---------- ----------
Total Additions 1,585,235 760,800 1,374,979
--------- ---------- ----------
DEDUCTIONS
Benefit payments to
participants 468,284 550,323 2,105,515
Interest expense
Administrative expenses 17,497 6,835 24,837
--------- ---------- ----------
Total Deductions 485,781 557,158 2,130,352
---------- ----------- ---------
Net gain (loss) on sale
of investments 19,897 69,586
Net unrealized (depreciation)
appreciation in market
value of investments 84,335 54,833
Interfund transfers 5,703,326 3,319,889 1,757,251
--------- ---------- ----------
Net Increase (Decrease) 6,907,012 3,647,950 1,001,878
Net assets at beginning
of year 0 0 5,922,953
--------- ---------- ----------
Net assets at end of year $ 6,907,012 $ 3,647,950 $6,924,831
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1993
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Ryland Pooled Loan
Preferred Investments Fund
--------- -------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $ 5,138,514
Participants
Rollovers
--------- ---------- ----------
Total contributions 5,138,514 0 0
Earnings on investments
Interest $ 171,948
Dividends 2,589,000
--------- ---------- ----------
Total Additions 7,727,514 0 171,948
--------- ---------- ----------
DEDUCTIONS
Benefit payments to
participants 1,292,991 141,723 449,790
Interest expense 3,044,665
Administrative expenses
--------- ---------- ----------
Total Deductions 4,337,656 141,723 449,790
---------- ----------- ---------
Net gain (loss) on sale
of investments (560,134)
Net unrealized (depreciation)
appreciation in market
value of investments 1,604,569
Interfund transfers 0 (9,783,773) (141,674)
--------- ---------- ----------
Net Increase (Decrease) 4,434,293 (9,925,496) (419,516)
Net assets at beginning
of year 2,344,295 9,925,496 2,390,695
--------- ---------- ----------
Net assets at end of year $6,778,588 $ 0 $1,971,179
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1993
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Insured Explorer Windsor
--------- -------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer
Participants
Rollovers
--------- ---------- ----------
Total contributions 0 0 0
Earnings on investments
Interest
Dividends
--------- ---------- ----------
Total Additions 0 0 0
--------- ---------- ----------
DEDUCTIONS
Benefit payments to
participants $ 16,650 $ 32,038 $ 164,570
Interest expense
Administrative expenses
--------- ---------- ----------
Total Deductions 16,650 32,038 164,570
---------- ----------- ---------
Net gain (loss) on sale
of investments
Net unrealized (depreciation)
appreciation in market
value of investments
Interfund transfers (1,963,232) (2,336,221) (6,764,569)
--------- ---------- ----------
Net Increase (Decrease) (1,979,882) (2,368,259) (6,929,139)
Net assets at beginning
of year 1,979,882 2,368,259 6,929,139
--------- ---------- ----------
Net assets at end of year $ 0 $ 0 $ 0
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1993
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Total
---------
<S> <C>
ADDITIONS
Contributions:
Employer $ 5,138,514
Participants 4,454,959
Rollovers 231,023
---------
Total contributions 9,824,496
Earnings on investments
Interest 690,390
Dividends 4,184,173
---------
Total Additions 14,699,059
---------
DEDUCTIONS
Benefit payments to
participants 6,228,059
Interest expense 3,044,665
Administrative expenses 82,017
---------
Total Deductions 9,354,741
----------
Net gain (loss) on sale
of investments (444,606)
Net unrealized (depreciation)
appreciation in market
value of investments 1,952,298
Interfund transfers 0
---------
Net Increase (Decrease) 6,852,010
Net assets at beginning
of year 32,756,618
---------
Net assets at end of year $39,608,628
=========
</TABLE>
17
<PAGE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1992
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Ryland Vanguard Vanguard
Common Insured Explorer
---------- ----------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer
Participants $ 252,927 $ 367,324 $ 484,266
Rollovers 48,257 112,189 270,285
---------- ----------- ---------
Total contributions 301,184 479,513 754,551
Earnings on investments:
Interest 591 68,638 383
Dividends 23,173 50,629
---------- ----------- ---------
Total Additions 324,948 548,151 805,563
---------- ----------- ---------
DEDUCTIONS
Benefit payments to participants 160,941 300,418 233,500
Interest expense
Administrative expenses 5,692 11,956 11,570
---------- ----------- ---------
Total Deductions 166,633 312,374 245,070
---------- ----------- ---------
Net gain (loss) on sale of
investments 14,543 394,708
Net unrealized (depreciation)
appreciation in market
value of investments (140,940) (222,796)
Interfund transfers 11,822 (182,859) (19,286)
---------- ----------- ---------
Net Increase (Decrease) 43,740 52,918 713,119
Net assets at beginning of year 852,159 1,926,964 1,655,140
---------- ----------- ---------
Net assets at end of year $ 895,899 $1,979,882 $2,368,259
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1992
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Vanguard Pooled
Windsor CIGNA Investments
---------- ----------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer
Participants $1,146,493 $ 949,826
Rollovers 492,128 743,401
---------- ----------- ---------
Total contributions 1,638,621 1,693,227 0
Earnings on investments:
Interest 882 392,825 $350,710
Dividends 448,955 196,338
---------- ----------- ---------
Total Additions 2,088,458 2,086,052 547,048
---------- ----------- ---------
DEDUCTIONS
Benefit payments to participants 759,193 532,253 1,290,158
Interest expense
Administrative expenses 39,317 32,404 84,549
---------- ----------- ---------
Total Deductions 798,510 564,657 1,374,707
---------- ----------- ---------
Net gain (loss) on sale of
investments 3,799 1,839,330
Net unrealized (depreciation)
appreciation in market
value of investments 420,565 (1,497,113)
Interfund transfers (159,262) 54,482 (248,317)
---------- ----------- ---------
Net Increase (Decrease) 1,555,050 1,575,877 (733,759)
Net assets at beginning of year 5,374,089 4,347,076 10,659,255
---------- ----------- ---------
Net assets at end of year $6,929,139 $5,922,953 $9,925,496
========= ========== ==========
</TABLE>
The Ryland Group, Inc. Retirement and Stock Ownership Plan
For the Year Ended December 31, 1992
NOTE I: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
BY FUND
<TABLE>
<CAPTION>
Ryland Loan
Preferred Fund Total
---------- ----------- ---------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $3,471,258 $3,471,258
Participants 3,200,836
Rollovers 1,666,260
---------- ----------- ---------
Total contributions 3,471,258 0 8,338,354
Earnings on investments:
Interest $ 200,134 1,014,163
Dividends 2,677,136 3,396,231
---------- ----------- ---------
Total Additions 6,148,394 200,134 12,748,748
---------- ----------- ---------
DEDUCTIONS
Benefit payments to participants 1,088,491 303,927 4,668,881
Interest expense 3,322,414 3,322,414
Administrative expenses 185,488
---------- ----------- ---------
Total Deductions 4,410,905 303,927 8,176,783
---------- ----------- ---------
Net gain (loss) on sale of
investments (316,706) 1,935,674
Net unrealized (depreciation)
appreciation in market
value of investments (1,095,873) (2,536,157)
Interfund transfers 543,420 0
---------- ----------- ---------
Net Increase (Decrease) 324,910 439,627 3,971,482
Net assets at beginning of year 2,019,385 1,951,068 28,785,136
---------- ----------- ---------
Net assets at end of year $2,344,295 $2,390,695 $32,756,618
========= ========== ==========
</TABLE>
18
<PAGE>
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(a) (b) (c) (d) (e)
* Identity Description Cost Market
- --- ------------- ---------------- ------------ ------------
* The Ryland Common Stock $ 607,099 $ 619,780
Group, Inc.
* The Ryland Preferred Stock $ 36,412,141 $ 33,600,115
Group, Inc.
CIGNA Guaranteed $ 7,234,084 $ 7,234,084
Account
Putnam Voyager Mutual Fund $ 4,394,205 $ 4,970,340
Kemper Growth Mutual Fund $ 7,539,457 $ 7,210,603
American Balanced Mutual Fund $ 6,847,502 $ 6,931,783
Standish Fixed Mutual Fund $ 3,336,141 $ 3,390,974
Income
Capitol Mutual Money Market $ 115,401 $ 115,401
Funds Mutual Funds
Plan Participants Participant Loans $ 1,971,375 $ 1,971,375
* Denotes party in-interest
</TABLE>
19
<PAGE>
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
Item 27d - Schedule of Reportable Transactions
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f)
Expenses
Identity Incurred
of Party Description Purchase Selling Lease with
Involved of Assets Price Price Rental Transaction
- -------- ------------- -------- -------- ------ -----------
<S> <C> <C> <C> <C> <C>
Category (i) - individual transactions in excess of 5 percent
of plan assets at beginning of the year.
Capitol Money n/a $9,783,773 n/a $0
Fund Market
Money Fund
Market
Portfolio
The Equity n/a $6,764,569 n/a $0
Vanguard Mutual
Group Fund
Windsor
Fund
Standish Equity $3,682,656 n/a n/a $0
Ayre & Mutual
Wood Fixed Fund
Income
Fund
Kemper Equity $7,001,258 n/a n/a $0
Financial Mutual
Services- Fund
Growth
Fund
Putnam Equity $3,506,397 n/a n/a $0
Management Mutual
Company- Fund
Voyager
Fund
Capital Equity $5,519,948 n/a n/a $0
Research Mutual
and Fund
Management
Company-
American
Balanced
Fund
Category (iii) - series transactions in excess of 5 percent
of plan assets at beginning of year.
Capitol Money $3,206,786 n/a n/a $0
Fund Market
Money Fund
Market
Portfolio
CIGNA Equity n/a $3,308,957 n/a $0
Income Mutual
Fund Fund
CIGNA Equity n/a $3,551,730 n/a $0
Income Mutual
Fund Fund
There were no category (ii) or (iv) reportable transactions
during 1993.
</TABLE>
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
Item 27d - Schedule of Reportable Transactions
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
(a) (b) (g) (h) (i)
Current
Identity Cost Value of
of Party Description of Asset on Net Gain
Involved of Assets Asset Transaction Date (Loss)
- -------- ------------- -------- --------------- -----------
<S> <C> <C> <C> <C>
Category (i) - individual transactions in excess of 5 percent
of plan assets at beginning of year.
Capitol Money $9,783,773 $9,783,773 $0
Fund Market
Money Fund
Market
Portfolio
The Equity $6,764,569 $6,764,569 $0
Vanguard Mutual
Group Fund
Windsor
Fund
Standish Equity $3,682,656 $3,682,656 $0
Ayre & Mutual
Wood Fixed Fund
Income
Fund
Kemper Equity $7,001,258 $7,001,258 $0
Financial Mutual
Services- Fund
Growth
Fund
Putnam Equity $3,506,397 $3,506,397 $0
Management Mutual
Company- Fund
Voyager
Fund
Capital Equity $5,519,948 $5,519,948 $0
Research Mutual
and Fund
Management
Company-
American
Balanced
Fund
Category (iii) - series transactions in excess of 5 percent
of plan assets at beginning of year.
Capitol Money $3,206,786 $3,206,786 $0
Fund Market
Money Fund
Market
Portfolio
CIGNA Equity $3,308,957 $3,308,957 $0
Income Mutual
Fund Fund
CIGNA Equity $3,551,730 $3,551,730 $0
Income Mutual
Fund Fund
There were no category (ii) or (iv) reportable transactions during 1993.
</TABLE>
20
<PAGE>
Exhibit 24 CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 33-32431) pertaining to the Retirement and Stock
Ownership Plan of The Ryland Group, Inc. of our report dated June 23,
1994, with respect to the financial statements and schedules of The
Ryland Group, Inc. Retirement and Stock Ownership Plan included in this
Annual Report (Form 11-K) for the year ended December 31, 1993.
/s/ Ernst & Young
June 27, 1994
21
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this
Annual Report to be signed by the undersigned thereunto duly authorized.
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
Date: June 22, 1994 By: /s/ Alan P. Hoblitzell, Jr.
Alan P. Hoblitzell, Jr.
Executive Vice President
and Chief Financial
Officer of The Ryland
Group, Inc.
/s/ Robert J. Gaw
Robert J. Gaw
President of Ryland
Mortgage Company and
Executive Vice President
of The Ryland Group, Inc.
/s/ Robert M. Paul
Robert M. Paul
Vice President of Personnel
and Administration of
The Ryland Group, Inc.
22
