<PAGE>
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, 1995.
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, 2104
<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 prepared in
accordance with ERISA 2-16
SIGNATURES 17
INDEX OF EXHIBITS 18
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Employee Benefits Committee
The Ryland Group, Inc.
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, 1995 and 1994, 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, 1995 and 1994, 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 performed 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, 1995 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 audits of the
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/ Ernst & Young LLP
Baltimore, Maryland
June 21, 199
<PAGE>
Item 4: Audited Financial Statements and Schedules prepared in accordance with
ERISA
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
----------- ------------
<S> <C> <C>
ASSETS
Receivables:
Accrued employer contributions $ 1,879,172 $ 0
Accrued interest and dividends 546,576 30,298
---------- ---------
Total receivables 2,425,748 30,298
Investments at fair value:
Short-term investments 138,791 148,285
CIGNA Income Fund 6,196,142 6,951,552
Preferred stock of
The Ryland Group, Inc.
Unallocated 11,895,164 14,812,837
Allocated 12,153,810 12,277,964
Common stock of
The Ryland Group, Inc. 182,154 431,535
Mutual funds 28,897,369 23,092,466
Loans to participants 1,513,314 1,884,331
----------- -----------
Total investments 60,976,744 59,598,970
---------- ----------
Total Assets 63,402,492 59,629,268
---------- ----------
LIABILITIES
Accrued liabilities 534,302 0
Loan payable to
The Ryland Group, Inc. 21,393,457 23,230,815
---------- ----------
Total Liabilities 21,927,759 23,230,815
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 41,474,733 $ 36,398,453
============ ============
See notes to financial statements
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, December 31,
1995 1994
----------- -------------
<S> <C> <C>
ADDITIONS
Contributions:
Employer $ 6,899,539 $ 5,487,252
Participants 4,860,384 4,686,986
Rollovers 1,058,624 405,648
----------- -----------
Total contributions 12,818,547 10,579,886
Interest:
Short-term investments 15,521 5,055
CIGNA Income Fund 396,762 367,737
Participant loans 117,743 138,359
-------- -------
Total interest 530,026 511,151
Dividends:
The Ryland Group, Inc.
Preferred stock 2,192,552 2,440,846
Common stock 11,370 17,457
Mutual funds 2,116,968 905,287
----------- ----------
Total dividends 4,320,890 3,363,590
Total Additions 17,669,463 14,454,627
DEDUCTIONS
Benefit payments to participants 14,281,532 8,310,329
Interest expense 2,229,042 2,636,705
Administrative expenses 158,522 94,672
---------- ----------
Total Deductions 16,669,096 11,041,706
Net realized and unrealized
appreciation (depreciation) in fair
value of investments 4,075,913 (6,623,096)
----------- -----------
Increase (decrease) in net assets
available for plan benefits 5,076,280 (3,210,175)
Net assets available for plan benefits at
beginning of year 36,398,453 39,608,628
---------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS
AT END OF YEAR $ 41,474,733 $ 36,398,453
============ =============
See notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
The financial statements of The Ryland Group, Inc. Retirement and Stock
Ownership Plan ("the Plan" or "the RSOP") are prepared on the accrual basis of
accounting.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
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. Mutual funds are valued at quoted
market prices which represent the net asset values of shares held by the plan.
The Preferred Stock of The Ryland Group, Inc. (the "Company"), is valued
monthly 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 fair 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 fair 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 (see also
Note D). Expenses relating to the purchase or sale of investments are added to
their cost or deducted from their proceeds.
For the first six months of the 1994 plan year, each participant account was
charged a flat fee of $12.50 per quarter to pay for a portion of administrative
services, trustee fees, investment advisors fees and other direct expenses.
The Company paid administrative costs to the extent they were not covered by
the participants. Subsequent to July 1, 1994, approximately half of all
administrative expenses incurred are now paid by the plan, with the Company
paying the remainder.
The Plan accounts for benefits due but unpaid as a component of net assets
available for plan benefits. Benefits due but unpaid were approximately
$40,323 and $40,665 at December 31, 1995 and 1994, respectively.
NOTE B: 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, which are
allocated to participants as a match of their pretax deferrals and as
discretionary contributions resulting from the Company's desire to share
profits with participants.
Employee Eligibility
Until September 1, 1994 employees were eligible to participate in the Plan at
the beginning of the first pay period of the month that followed completion of
a one-year period of service. An employee was 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. As of September 1, 1994, the plan was amended to make
employees eligible to participate in the Plan at the beginning of the first
pay period of the month following the employee's hire date, provided the
employee ultimately completes the period of service requirement as defined
above. This amendment did not have a material impact on the net assets of the
Plan.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE B: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options
Each eligible participant 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 participant's compensation. In
accordance with IRS regulations, no employee may contribute more than $9,240
to the Plan for the 1995 calendar year. The RSOP offers the participants
several investment options for their contributions.
The following are descriptions of the participant investment options for 1995:
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 companies business plans or competitive environments. The
investment manager of this fund is The Putnam
Management Company, Inc. At December 31, 1995 and 1994, 1,411 and 1,368
employees, respectively, 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, 1995
and 1994, 1,177 and 1,294 employees, respectively, were participating in this
option.
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. Withdrawals or
transfers from the CIGNA Income Fund may be restricted. At December 31, 1995
and 1994, 806 and 951 employees, respectively, were participating in this
option.
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, 1995 and 1994, 1,183 and 1,254
employees, respectively, 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, 1995 and 1994, 703 and 791
employees, respectively, were participating in this option.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE B: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options - cont.
In 1995, the Employee Benefits Committee agreed to eliminate Kemper Growth
Fund as an RSOP investment option for participants effective January 1, 1996.
Two new investment options were chosen to replace this fund. Participant
balances in the Kemper Growth Fund were transferred at the participant's
discretion among the available funds.
New investment options for 1996 are:
FIDELITY GROWTH COMPANY FUND - The Fidelity Growth Company Fund is an
aggressive equity mutual fund seeking capital appreciation primarily by
investing in common stocks and convertible securities of companies with
above-average growth characteristics found in smaller, lesser-known
companies in emerging areas ofthe economy as well as revitalized or
well-positioned larger companies in mature industries.
The investment manager of this fund is Fidelity Management and Research.
WELLS FARGO EQUITY INDEX FUND -The Wells Fargo Equity Index Fund is a fund
that has the objective of reproducing the performance of the S&P 500 Index
which is a widely accepted benchmark composed of industrial, utility,
financial and transportation stocks. The Index is designed to reflect the
industrial composition of the entire U.S. economy. The companies represented
in the Index account for approximately 70% of the value of all publicly traded
U.S. common stocks. The investment manager of this fund is Wells Fargo Nikko
Investment Advisors.
In May 1992, the Employee Benefits Committee agreed to eliminate The Ryland
Group, Inc. Common Stock Fund as an RSOP investment option for participants
effective January 1, 1993. Participant balances in the Common Stock fund
remain as frozen options which can be liquidated into the other investment
funds at the participant's option. At December 31, 1995 and 1994,
112 and 185 employees were maintaining balances in
The Ryland Group, Inc. Common Stock Fund.
Company Contributions
As of January 1, 1994, the RSOP was amended to allow the Company to make both
matching and discretionary contributions in the form of Preferred Shares, cash
or a combination of both. In instances where cash is all or part of the
Company's contribution, it is divided among the current investment funds based
on each participant's current investment option selection. In instances where
both Preferred Shares and cash are contributed to participant accounts, all
participants receive an equal proportion of each. This amendment did not have
a material impact on the Plan's net assets at the time of its adoption. The
Company made no discretionary contributions for the years ended December 31,
1995 and 1994.
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.
RSOP Loan
The "RSOP Loan" is a loan between the Company and the Plan; the proceeds were
used by the Plan to acquire the Preferred Stock (see Note C below). To the
extent employer contributions, including matching contributions and
discretionary contributions, are used to make an RSOP Loan amortization
payment, such contributions are made in cash. After each RSOP Loan
amortization payment is made, a number of shares of Preferred Stock is
released from the RSOP Loan suspense account based on a predetermined formula.
Following the release of the Preferred Stock and allocation of a portion of
the shares attributable to dividends, the remaining shares of Preferred Stock
are allocated among the participants' accounts based on the amount of the
required matching contributions. Any remaining shares are allocated among the
participants' accounts based on compensation.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE B: DESCRIPTION OF THE PLAN--CONTINUED
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.
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 C: 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
1995 and 1994, the Company paid approximately $2,193,000 and $2,441,000 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 the Preferred Stock was financed by a loan to the Plan
from the Company in the amount of $40,000,000. The loan bears interest at the
annual 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 $2,229,000 and $2,637,000 of
interest on this loan in 1995 and 1994. Participants receive allocations of
the Preferred Stock as debt payments are made. During 1995 and 1994, there
were 120,170 and 151,963 shares released, respectively, and allocated to
participants. The unallocated preferred shares are collateral to the loan
payable to Ryland. As of December 31, 1995, there were 466,477 unallocated
preferred shares with an approximate value of $11,895,000. At December 31,
1994 there were 586,647 unallocated preferred shares with an approximate value
of $14,813,000.
Maturities of the loan payable to Ryland for each of the remaining four years
of the loan are as follows:
1996 $ 7,801,641
1997 $ 6,418,807
1998 $ 6,914,306
1999 $ 258,703
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE D: 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 from the Company an additional cash
contribution to cover any differential between the current Common Stock
price and the appraised value of the Preferred Stock. The Trustee will
use the cash to acquire (on the open market) additional shares of Common
Stock and then distribute to the participant 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 from the Company any differential
between the current Common Stock price and the appraised value of the
Preferred Stock. The Trustee will then sell the shares of Common Stock
on the open market and distribute to the participant the cash proceeds
plus the differential contribution made by the Company. The non-vested
portion of the Company's contributions credited to the terminating
participant is forfeited immediately. All forfeitures are used to reduce
future matching contributions required from the Company.
For purposes of these financial statements, the cash received by the
Trustee from the Company to fund any differential between the current
market price of the Company's Common Stock and the appraised value of
the Preferred Shares is recorded as an employer contribution. This cash
is not included in the computation of the realized gain or loss of the
converted Preferred Shares.
NOTE E: INVESTMENTS
During 1995 and 1994, the Plan's investments (including investments bought and
sold, as well as held during the year) appreciated (depreciated) in fair value
by $4,075,913 and $(6,623,096), respectively.
<TABLE>
<CAPTION>
Net (Depreciation)
Appreciation
For the Year Ended in Fair Value Fair Value at
December 31, 1995 During Year End of Year
- ------------------ ----------------- --------------
<S> <C> <C>
Common Stock-
The Ryland Group, Inc. $ (17,374) $ 182,154
Putnam Voyager Fund 2,408,791 10,043,695
Kemper Growth Fund 1,221,997 0
American Balanced Fund 1,214,243 7,883,646
Fidelity Growth Fund 0 7,767,441
CIGNA Income Fund 0 6,196,142
Wachovia Short-Term Investment Fund 0 138,791
Loans to Participants 0 1,513,314
Preferred Stock -
The Ryland Group, Inc. (1,086,329) 24,048,974
Standish Fixed Income Fund 334,585 3,202,587
----------- ----------
Total $4,075,913 $60,976,744
========== ===========
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE E: INVESTMENTS--CONTINUED
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in
For the Year Ended Fair Value Fair Value at
December 31, 1994 During Year End of Year
<S> <C> <C>
Common Stock-
The Ryland Group, Inc $ (141,517) $ 431,535
Putnam Voyager Fund (217,013) 6,824,195
Kemper Growth Fund (516,761) 6,380,330
American Balanced Fund (310,232) 6,773,617
CIGNA Income Fund 0 6,951,552
Wachovia Short-Term Investment Fund 0 148,285
Loans to Participants 0 1,884,331
Preferred Stock -
The Ryland Group, Inc. (5,044,655) 27,090,801
Standish Fixed Income Fund (392,918) 3,114,324
----------- -----------
Total $ (6,623,096) $ 59,598,970
=========== ===========
</TABLE>
The fair value of individual investments that represent 5% or more of the
Plan's net assets are as follows:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
----------- -------------
<S> <C> <C>
Putnam Voyager Fund $ 10,043,695 $ 6,824,195
Kemper Growth Fund $ 0 $ 6,380,330
American Balanced Fund $ 7,883,646 $ 6,773,617
Fidelity Growth Fund $ 7,767,441 $ 0
CIGNA Income Fund $ 6,196,142 $ 6,951,552
Standish Fixed Income Fund $ 3,202,587 $ 3,114,324
Preferred Stock -
The Ryland Group, Inc. $ 24,048,974 $ 27,090,801
Loans to participants $ 1,513,314 $ 1,884,331
</TABLE>
The maximum accounting loss the Plan would incur if parties to the financial
instruments failed to perform would be the current value of the investments as
stated on the Statement of Net Assets Available for Plan Benefits. None of the
investments are secured by collateral.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE F: INCOME TAX STATUS
The Internal Revenue Service has ruled (November 15, 1994) that the Plan
qualifies under Section 401(a) of the Internal Revenue Code (IRC) and is,
therefore, not subject to tax under present income tax law. Once qualified,
the Plan is required to operate in conformity with the IRC to maintain its
qualification. The Employee Benefits Committee is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE G: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
Ryland Putnam American
Common Voyager Balanced
------ ------ --------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions
Accrued interest and dividends $ 15 $ 0 $ 0
--- --- ---
Total receivables 15 0 0
Investments at fair value:
Short-term investments 3,182
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc. 182,000
Mutual funds 10,043,695 7,883,646
Loans to participants
------- ---------- ---------
Total investments 185,182 10,043,695 7,883,646
------- ---------- ---------
Total Assets 185,197 10,043,695 7,883,646
======= ========== =========
LIABILITIES
Accrued liabilities 0 0 0
Loan payable to
The Ryland Group, Inc.
------- ------ ------
Total Liabilities 0 0 0
-------- -------- ------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 185,197 $ 10,043,695 $ 7,883,646
========== ========== =========
</TABLE>
<TABLE>
<CAPTION>
Standish Fidelity
Fixed Income Growth CIGNA
------------ --------- --------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions
Accrued interest and dividends $ 0 $ 0 $ 25,641
------ ----- -------
Total receivables 0 0 25,641
Investments at fair value:
Short-term investments 129,621
CIGNA Income Fund 6,196,142
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds 3,202,287 7,767,441
Loans to participants
-------- ---------- ---------
Total investments 3,202,287 7,767,441 6,325,763
--------- --------- ---------
Total Assets 3,202,587 7,767,441 6,351,404
========= ========= =========
LIABILITIES
Accrued liabilities 0 0 0
Loan payable to
The Ryland Group, Inc.
------------ ----------- -----------
Total Liabilities 0 0 0
------------ ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 3,202,587 $ 7,767,441 $ 6,351,404
============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Ryland Loan
Preferred Fund Total
--------- ------ --------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued employer contributions $ 1,879,172 $ 1,879,172
Accrued interest and dividends 520,920 $ 0 546,576
----------- --------- ----------
Total receivables 2,400,092 0 2,425,748
Investments at fair value:
Short-term investments 5,988 138,791
CIGNA Income Fund 6,196,142
Preferred stock of
The Ryland Group, Inc. 24,048,974 24,048,974
Common stock of
The Ryland Group, Inc. 154 182,154
Mutual funds 28,897,369
Loans to participants 1,513,314 1,513,314
---------- --------- ----------
Total investments 24,055,116 1,513,314 60,976,744
---------- --------- ----------
Total Assets 26,455,208 1,513,314 63,402,492
========== ========= ==========
LIABILITIES
Accrued liabilities 534,302 0 534,302
Loan payable to
The Ryland Group, Inc. 21,393,457 21,393,457
---------- ---------- ----------
Total Liabilities 21,927,759 0 21,927,759
---------- ---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 4,527,449 $ 1,513,314 $ 41,474,733
============ =========== ============
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE G (cont.): NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND AS OF
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Ryland Putnam Kemper
Common Voyager Growth
-------- --------- -------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ 30 $ 0 $ 0
-------- --------- --------
Total receivables 30 0 0
Investments at fair value:
Short-term investments 7,018
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc. 390,870
Mutual funds 6,824,195 6,380,330
Loans to participants
-------- --------- --------
Total investments 397,888 6,824,195 6,380,330
-------- --------- --------
Total Assets 397,918 6,824,195 6,380,330
-------- --------- --------
LIABILITIES
Loan payable to
The Ryland Group, Inc.
-------- --------- --------
Total Liabilities 0 0 0
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $397,918 $6,824,195 $6,380,330
-------- --------- --------
</TABLE>
<TABLE>
<CAPTION>
American Standish
Balanced Fixed Income CIGNA
-------- --------- -------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ 0 $ 0 $ 30,268
-------- --------- --------
Total receivables 0 0 30,268
Investments at fair value:
Short-term investments 139,099
CIGNA Income Fund 6,951,552
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds 6,773,617 3,114,324
Loans to participants
-------- --------- --------
Total investments 6,773,617 3,114,324 7,090,651
-------- --------- --------
Total Assets 6,773,617 3,114,324 7,120,919
-------- --------- --------
LIABILITIES
Loan payable to
The Ryland Group, Inc.
-------- --------- --------
Total Liabilities 0 0 0
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $6,773,617 $3,114,324 $7,120,919
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Ryland Loan
Preferred Fund Total
-------- --------- -------
<S> <C> <C> <C>
ASSETS
Receivables:
Accrued interest and dividends $ 0 $ 0 $ 30,298
-------- --------- --------
Total receivables 0 0 30,298
Investments at fair value:
Short-term investments 2,168 148,285
CIGNA Income Fund 6,951,552
Preferred stock of
The Ryland Group, Inc. 27,090,801 27,090,801
Common stock of
The Ryland Group, Inc. 40,665 431,535
Mutual funds 23,092,466
Loans to participants 1,884,331 1,884,331
-------- --------- --------
Total investments 27,133,634 1,884,331 59,598,970
-------- --------- --------
Total Assets 27,133,634 1,884,331 59,629,268
-------- --------- --------
LIABILITIES
Loan payable to
The Ryland Group, Inc. 23,230,815 23,230,815
-------- --------- --------
Total Liabilities 23,230,815 0 23,230,815
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $3,902,819 $1,884,331 $36,398,453
========== ========== ===========
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE H: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY
FUND FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Ryland Putnam Kemper
Common Voyager Growth
-------- --------- -------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $ 587,342 $ 403,360
Participants 1,629,792 1,078,292
Rollovers 383,837 231,077
-------- --------- --------
Total contributions 0 2,600,971 1,712,729
Earnings on investments
Interest $ 516 4,945 4,115
Dividends 11,370 529,141 800,884
-------- --------- --------
Total Additions 11,886 3,135,057 2,517,728
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 180,317 2,739,035 2,203,531
Interest expense 0 0 0
Administrative expenses 8 40,270 34,569
-------- --------- --------
Total Deductions 180,325 2,779,305 2,238,100
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (17,374) 2,408,791 1,221,997
Interfund transfers (26,908) 454,957 (7,881,955)
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (212,721) 3,219,500 (6,380,330)
Net assets available for
plan benefits at beginning of year 397,918 6,824,195 6,380,330
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $185,197 $10,043,695 $ 0
======== =========== =========
</TABLE>
<TABLE>
<CAPTION>
American Standish Fidelity
Balanced Fixed Income Growth
-------- --------- -------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $396,146 $ 161,772 $ 0
Participants 1,048,834 421,378 0
Rollovers 211,103 123,908 0
-------- --------- --------
Total contributions 1,656,083 707,058 0
Earnings on investments
Interest 4,152 1,793 0
Dividends 562,132 224,811 0
-------- --------- --------
Total Additions 2,222,367 933,662 0
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 2,120,001 784,119 0
Interest expense 0 0 0
Administrative expenses 35,121 15,455 0
-------- --------- --------
Total Deductions 2,155,122 799,574 0
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments 1,214,243 334,585 0
Interfund transfers (171,459) (380,410) 7,767,441
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits 1,110,029 88,263 7,767,441
Net assets available for
plan benefits at beginning of year 6,773,617 3,114,324 0
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $7,883,646 $3,202,587 $ 7,767,441
========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
Ryland
CIGNA Preferred
-------- -- -------
<S> <C> <C>
ADDITIONS
Contributions:
Employer $ 261,267 $ 5,089,652
Participants 682,088 0
Rollovers 108,699 0
-------- --------
Total contributions 1,052,054 5,089,652
Earnings on investments
Interest 396,762 0
Dividends 0 2,192,552
-------- --------
Total Additions 1,448,816 7,282,204
-------- --------
DEDUCTIONS
Benefit payments to participants 2,265,351 3,342,203
Interest expense 0 2,229,042
Administrative expenses 33,099 0
-------- --------
Total Deductions 2,298,450 5,571,245
-------- --------
Net realized and unrealized
(depreciation) in fair value
of investments 0 (1,086,329)
Interfund transfers 80,119 0
-------- --------
Net (Decrease) Increase in net
assets available for plan benefits (769,515) 624,630
Net assets available for
plan benefits at beginning of year 7,120,919 3,902,819
-------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $6,351,404 $4,527,449
========== ==========
</TABLE>
<TABLE>
<CAPTION>
Loan
Fund Total
-------- -- -------
<S> <C> <C>
ADDITIONS
Contributions:
Employer $ 0 $ 6,899,539
Participants 0 4,860,384
Rollovers 0 1,058,624
-------- --------
Total contributions 0 12,818,547
Earnings on investments
Interest $ 117,743 530,026
Dividends 0 4,320,890
-------- --------
Total Additions 117,743 17,669,463
-------- --------
DEDUCTIONS
Benefit payments to participants 646,975 14,281,532
Interest expense 0 2,229,042
Administrative expenses 0 158,522
-------- --------
Total Deductions 646,975 16,669,096
-------- --------
Net realized and unrealized
(depreciation) in fair value
of investments 0 4,075,913
Interfund transfers 158,215 0
-------- --------
Net (Decrease) Increase in net
assets available for plan benefits (371,017) 5,076,280
Net assets available for
plan benefits at beginning of year 1,884,331 36,398,453
-------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $1,513,314 $ 41,474,733
========== ============
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
NOTE H (cont.): ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS BY FUND FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Ryland Putnam Kemper
Common Voyager Growth
-------- --------- -------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $ 282,219 $ 209,879
Participants 1,378,437 1,202,930
Rollovers 167,386 76,722
-------- --------- --------
Total contributions $ 0 1,828,042 1,489,531
Earnings on investments
Interest 351 1,262 1,283
Dividends 17,457 272,703 82,948
-------- --------- --------
Total Additions 17,808 2,102,007 1,573,762
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 79,127 957,166 1,263,148
Interest expense 0 0 0
Administrative expenses 0 21,116 19,320
-------- --------- --------
Total Deductions 79,127 978,282 1,282,468
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (141,517) (217,013) (516,761)
Interfund transfers (21,566) 383,251 (616,719)
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (224,402) 1,289,963 (842,186)
Net assets available for
plan benefits at beginning of year 622,320 5,534,232 7,222,516
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $ 397,918 $ 6,824,195 $6,380,330
========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
American Standish
Balanced Fixed Income CIGNA
-------- --------- -------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $ 183,935 $ 80,968 $ 129,534
Participants 1,001,372 439,947 664,300
Rollovers 53,809 55,883 51,848
-------- --------- --------
Total contributions 1,239,116 576,798 845,682
Earnings on investments
Interest 1,376 783 367,737
Dividends 339,699 209,937 0
-------- --------- --------
Total Additions 1,580,191 787,518 1,213,419
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 1,139,310 706,243 1,515,959
Interest expense 0 0 0
Administrative expenses 22,373 6,391 25,472
-------- --------- --------
Total Deductions 1,161,683 712,634 1,541,431
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (310,232) (392,918) 0
Interfund transfers (241,671) (215,592) 524,100
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (133,395) (533,626) 196,088
Net assets available for
plan benefits at beginning of year 6,907,012 3,647,950 6,924,831
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $6,773,617 $3,114,324 $ 7,120,919
========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Ryland Loan
Preferred Fund Total
-------- --------- -------
<S> <C> <C> <C>
ADDITIONS
Contributions:
Employer $ 4,600,717 $ 0 $ 5,487,252
Participants 0 0 4,686,986
Rollovers 0 0 405,648
-------- --------- --------
Total contributions 4,600,717 0 10,579,886
Earnings on investments
Interest 0 138,359 511,151
Dividends 2,440,846 0 3,363,590
-------- --------- --------
Total Additions 7,041,563 138,359 14,454,627
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 2,235,972 413,404 8,310,329
Interest expense 2,636,705 0 2,636,705
Administrative expenses 0 0 94,672
-------- --------- --------
Total Deductions 4,872,677 413,404 11,041,706
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (5,044,655) 0 (6,623,096)
Interfund transfers 0 188,197 0
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (2,875,769) (86,848) (3,210,175)
Net assets available for
plan benefits at beginning of year 6,778,588 1,971,179 39,608,628
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $3,902,819 $1,884,331 $ 36,398,453
========== ========= ============
</TABLE>
<PAGE>
The Ryland Group, Inc.
Retirement and Stock Ownership Plan
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION COST MARKET
<S> <C> <C> <C>
(F1) The Ryland Group, Inc. Common Stock $ 250,337 $ 182,154
(F1) The Ryland Group, Inc. Preferred Stock $29,766,468 $24,048,974
CIGNA Income Fund Guaranteed Account $ 6,196,142 $ 6,196,142
Putnam Voyager Mutual Fund $ 7,953,284 $10,043,695
Fidelity Growth Mutual Fund $ 7,767,441 $ 7,767,441
American Balanced Mutual Fund $ 7,035,423 $ 7,883,646
Standish Income Mutual Fund $ 3,142,537 $ 3,202,587
Wachovia DTF
Short-term Money Market
Investment Mutual Funds $ 138,791 $ 138,791
Participant Loans High - 10.0% $ 1,513,314 $ 1,513,314
Low - 9.5%
<FN>
(1) Denotes party in-interest
</FN>
</TABLE>
<PAGE>
Retirement and Stock Ownership Plan
Item 27d - Schedule of Reportable Transactions
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
(a) (b) (c)
Description/ Purchase
Identity of Party Involved of Assets Price
- -------------------------- ------------ --------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
<S> <C> <C>
Wachovia DTF Short Term
Investment Fund Money Market Fund n/a
Wachovia DTF Short Term
Investment Fund Money Market Fund n/a
Kemper Growth Fund Mutual Fund n/a
Fidelity Growth Fund Mutual Fund $ 7,767,441
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund Money Market Fund $ 22,463,792
Wachovia DTF Short Term
Investment Fund Money Market Fund n/a
American Balanced Fund Mutual Fund $ 2,395,293
American Balanced Fund Mutual Fund n/a
CIGNA Income Fund Guaranteed Account $ 1,991,314
CIGNA Income Fund Guaranteed Account n/a
Kemper Growth Fund Mutual Fund $ 2,702,244
Kemper Growth Fund Mutual Fund n/a
Putnam Voyager Fund Mutual Fund $ 4,032,510
Putnam Voyager Fund Mutual Fund n/a
Standish Fixed Income Fund Mutual Fund $ 970,915
Standish Fixed Income Fund Mutual Fund n/a
Fidelity Growth Fund Mutual Fund $ 7,767,441
Ryland Preferred Stock (1) Preferred Stock n/a
Ryland Common Stock (1) Common Stock $ 2,125,288
Ryland Common Stock (1) Common Stock n/a
<FN>
(1)Denotes party in-interest
</FN>
</TABLE>
<TABLE>
<CAPTION>
(d) (e)
Identity of Party Involved Selling Price Lease Rental
- -------------------------- ------------ --------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
<S> <C> <C>
Wachovia DTF Short Term
Investment Fund $ 2,858,619 n/a
Wachovia DTF Short Term
Investment Fund $ 1,795,441 n/a
Kemper Growth Fund $ 7,767,441 n/a
Fidelity Growth Fund n/a n/a
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund n/a n/a
Wachovia DTF Short Term
Investment Fund $ 22,371,225 n/a
American Balanced Fund n/a n/a
American Balanced Fund $ 2,499,509 n/a
CIGNA Income Fund n/a n/a
CIGNA Income Fund $ 3,134,021 n/a
Kemper Growth Fund n/a n/a
Kemper Growth Fund $ 10,304,570 n/a
Putnam Voyager Fund n/a n/a
Putnam Voyager Fund $ 3,221,801 n/a
Standish Fixed Income Fund n/a n/a
Standish Fixed Income Fund $ 1,217,238 n/a
Fidelity Growth Fund n/a n/a
Ryland Preferred Stock (1) $ 3,330,158 n/a
Ryland Common Stock (1) n/a n/a
Ryland Common Stock (1) $ 2,289,294 n/a
<FN>
(1)Denotes party in-interest
</FN>
</TABLE>
<TABLE>
<CAPTION>
(f) (2)
Expenses
Incurred
with
Identity of Party Involved Transaction
- -------------------------- ------------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
<S> <C>
Wachovia DTF Short Term
Investment Fund $0
Wachovia DTF Short Term
Investment Fund $0
Kemper Growth Fund $0
Fidelity Growth Fund $0
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund $0
Wachovia DTF Short Term
Investment Fund $0
American Balanced Fund $0
American Balanced Fund $0
CIGNA Income Fund $0
CIGNA Income Fund $0
Kemper Growth Fund $0
Kemper Growth Fund $0
Putnam Voyager Fund $0
Putnam Voyager Fund $0
Standish Fixed Income Fund $0
Standish Fixed Income Fund $0
Fidelity Growth Fund $0
Ryland Preferred Stock (1) $0
Ryland Common Stock (1) $548
Ryland Common Stock (1) $9,950
<FN>
(1)Denotes party in-interest
(2) Commissions and fees related to purchases and sales of investments are
included in the cost of the investment or the proceeds from the sale and are
not separately identified by the trustee.
</FN>
</TABLE>
<TABLE>
<CAPTION>
(g) (h)
Current Value
of Asset
Cost of on Transaction
Identity of Party Involved Asset Date
- -------------------------- ------------ --------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
<S> <C> <C>
Wachovia DTF Short Term
Investment Fund $ 2,858,619 $ 2,858,619
Wachovia DTF Short Term
Investment Fund $ 1,795,441 $ 1,795,154
Kemper Growth Fund $ 7,355,613 $ 7,767,441
Fidelity Growth Fund $ 7,767,441 $ 7,767,441
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund $ 22,463,792 $ 22,463,792
Wachovia DTF Short Term
Investment Fund $ 22,371,225 $ 22,371,225
American Balanced Fund $ 2,395,293 $ 2,395,293
American Balanced Fund $ 2,334,925 $ 2,499,509
CIGNA Income Fund $ 1,991,314 $ 1,991,314
CIGNA Income Fund $ 3,134,021 $ 3,134,021
Kemper Growth Fund $ 2,702,244 $ 2,702,244
Kemper Growth Fund $ 9,747,755 $ 10,304,570
Putnam Voyager Fund $ 4,032,510 $ 4,032,510
Putnam Voyager Fund $ 2,619,562 $ 3,221,801
Standish Fixed Income Fund $ 970,915 $ 970,915
Standish Fixed Income Fund $ 1,225,464 $ 1,217,238
Fidelity Growth Fund $ 7,767,441 $ 7,767,441
Ryland Preferred Stock (1) $ 3,711,770 $ 3,330,158
Ryland Common Stock (1) $ 2,125,836 $ 2,125,288
Ryland Common Stock (1) $ 2,422,756 $ 2,289,294
<FN>
(1)Denotes party in-interest
</FN>
</TABLE>
<TABLE>
<CAPTION>
(i)
Identity of Party Involved Net Gain (Loss)
- -------------------------- ------------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
<S> <C>
Wachovia DTF Short Term
Investment Fund $ 0
Wachovia DTF Short Term
Investment Fund $ 0
Kemper Growth Fund $ 411,828
Fidelity Growth Fund n/a
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund n/a
Wachovia DTF Short Term
Investment Fund $ 0
American Balanced Fund n/a
American Balanced Fund $ 164,584
CIGNA Income Fund n/a
CIGNA Income Fund $ 0
Kemper Growth Fund n/a
Kemper Growth Fund $ 556,816
Putnam Voyager Fund n/a
Putnam Voyager Fund $ 602,239
Standish Fixed Income Fund n/a
Standish Fixed Income Fund $ (8,226)
Fidelity Growth Fund n/a
Ryland Preferred Stock (1) $ (381,612)
Ryland Common Stock (1) $ 0
Ryland Common Stock (1) $ (143,412)
<FN>
(1)Denotes party in-interest
</FN>
There were no category (ii) or (iv) reportable transactions during 1995.
</TABLE>
<PAGE>
SIGNATURE
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 27, 1996 By: /s/ Michael D. Mangan
--------------------------------
Michael D. Mangan
Executive Vice President
and Chief Financial
Officer of The Ryland
Group, Inc.
<PAGE>
Page of
Sequentially
Numbered Pages
--------------
INDEX OF EXHIBITS
-----------------
23 Consent of Ernst and Young, Independent Auditors 19
<PAGE>
Exhibit 23 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 21, 1996, 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, 1995.
/s/ Ernst & Young LLP
Baltimore, Maryland
June 24, 1996
