UNITED STATES
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, 1997.
------------------------
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 Savings Opportunity Plan
B. The Ryland Group, Inc.
11000 Broken Land Parkway
Columbia, Maryland, 21044
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 2-17
SIGNATURES 18
INDEX OF EXHIBITS 19
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 Savings Opportunity Plan (the
"Plan") as of December 31, 1997 and 1996, 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, 1997 and 1996, 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, 1997 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 16, 1998
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 SAVINGS OPPORTUNITY PLAN
December 31, December 31,
1997 1996
------------ ------------
ASSETS
Receivables:
Accrued employer contributions $ 0 $ 2,732,371
Accrued interest and dividends 277,740 499,910
--------------- ------------
Total receivables 277,740 3,232,281
Investments at fair value:
Cash 35,023,942 0
Short-term investments 4,914,849 144,646
CIGNA Income Fund 0 5,599,646
Preferred stock of
The Ryland Group, Inc.
Unallocated 47,508 7,901,966
Allocated 19,405,844 14,072,430
Common stock of
The Ryland Group, Inc. 94,352 152,436
Mutual funds 0 31,037,164
Loans to participants 1,541,953 1,765,450
------------- -----------
Total investments 61,028,448 60,673,738
------------- -----------
Total Assets 61,306,188 63,906,019
------------- -----------
LIABILITIES
Accrued liabilities 1,856 409,360
Loan payable to
The Ryland Group, Inc. 0 16,390,810
------------- -----------
Total Liabilities 1,856 16,800,170
------------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 61,304,332 $ 47,105,849
============= ============
See notes to financial statements
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
The Ryland Group, Inc.
RETIREMENT SAVINGS OPPORTUNITY PLAN
Year Ended Year Ended
December 31, December 31,
1997 1996
------------- -------------
ADDITIONS
Contributions:
Employer $ 7,149,212 $ 7,263,783
Participants 4,011,867 4,333,945
Rollovers 564,458 338,277
------------ -----------
Total contributions 11,725,537 11,936,005
Interest:
Short-term investments 40,172 1,471
CIGNA Income Fund 284,860 333,539
Participant loans 140,134 137,129
------------ ------------
Total interest 465,166 472,139
Dividends:
The Ryland Group, Inc.
Preferred stock 1,629,535 1,974,464
Common stock 3,952 7,481
Mutual funds 2,796,000 2,007,320
------------ ------------
Total dividends 4,429,487 3,989,265
------------ ------------
Total Additions 16,620,190 16,397,409
DEDUCTIONS
Benefit payments to participants 12,494,407 9,719,542
Interest expense on loan payable to 929,994 1,794,450
The Ryland Group, Inc.
Administrative expenses 164,248 165,424
------------ ------------
Total Deductions 13,588,649 11,679,416
Net realized and unrealized
appreciation (depreciation)
in fair value of investments 11,166,942 913,123
------------ ------------
Increase in net assets
available for plan benefits 14,198,483 5,631,116
Net assets available for plan
benefits at beginning of year 47,105,849 41,474,733
------------- ------------
NET ASSET AVAILABLE FOR PLAN BENEFITS
AT END OF YEAR $ 61,304,332 $ 47,105,849
============= ============
See notes to financial statements
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
The financial statements of The Ryland Group, Inc. Retirement Savings
Opportunity Plan ("the Plan" or "the RSOP", previously known as "The Ryland
Group, Inc. Retirement and Stock Ownership Plan") 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 value of $25.25 guaranteed
by the Company. Deposits invested by the Trustee (Wachovia Bank) 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 realized 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.
Approximately half of all administrative expenses incurred are 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
$40,295 and $96,907 at December 31, 1997 and 1996, 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. Participant contributions
into the Plan are combined with Company contributions, which are allocated to
participants as a match of their pretax deferrals.
Employee Eligibility
Prior to January 1, 1998, employees were 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 is 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. Beginning January 1, 1998, all full-time employees
are eligible to participate in the Plan the first pay period of the quarter
following 30 days of employment.
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 could contribute more than $9,500
to the Plan for the 1997 calendar year. The RSOP offers the participants
several investment options for their contributions.
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
NOTE B: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options
The following are descriptions of the participant investment options available
during 1997:
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, 1997 and 1996, 1,111 and 1,298
employees, respectively, were participating in this option.
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 of the economy as well as revitalized or
well-positioned larger companies in mature industries. The investment
manager of this fund is Fidelity Management and Research.
At December 31, 1997 and 1996, 1,061 and 1,106
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, 1997
and 1996, 529 and 630 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, 1997 and 1996, 900 and 976
employees, respectively, were participating in this option.
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. At December 31, 1997 and 1996, 400 and 163 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, 1997 and 1996, 488 and 591 employees,
respectively, were participating in this option.
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
remained as frozen options which could be liquidated into the other investment
funds at the participant's option. As of December 31, 1997, all balances in
this fund had been liquidated. At December 31, 1996, 90 employees were
maintaining balances in The Ryland Group, Inc. Common Stock Fund.
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
NOTE B: DESCRIPTION OF THE PLAN--CONTINUED
Employee Contributions and Investment Options - cont.
On January 1, 1998, the Plan established new participant investment fund
options available from the Vanguard Funds.
In anticipation of transferring the Plan's existing assets to the new
investment fund options, all prior investments in the Putnam Voyager Fund,
Fidelity Growth Company Fund, CIGNA Income Fund, American Balanced Fund, Wells
Fargo Equity Index Fund and Standish Fixed Income Fund were liquidated in
December 1997. The proceeds were held in cash and short-term investments at
December 31, 1997.
Effective January 1, 1998, the Plan changed its trustee from Wachovia Bank to
The Vanguard Fiduciary Trust Company.
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 was all or part of the
Company's contribution, it was divided among the current investment funds
based on each participant's current investment fund option selections. In
instances where both Preferred Shares and cash were contributed to participant
accounts, all participants received an equal proportion of each. Beginning
January 1, 1998, participants will no longer receive Preferred Stock in
connection with Company matching contributions to their accounts. The Company
made no discretionary contributions for the years ended December 31, 1997 and
1996.
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" was a loan between the Company and the Plan the proceeds of
which were used by the Plan to acquire the Preferred Stock (see Note C below).
Through September 1997, to the extent employer contributions, including
matching contributions and discretionary contributions, were used to make an
RSOP Loan payment, such contributions were made in cash. After each RSOP Loan
payment was made, a number of shares of Preferred Stock were 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, shares of Preferred Stock were allocated among the
participants' accounts based on the amount of the required matching
contributions. On October 1, 1997, the Company purchased 248,881 preferred
shares that had not been released for allocation to participants accounts (see
Note C below).
Other
The Company expects and intends to continue the Plan 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 fair 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 Savings Opportunity Plan. Copies of this pamphlet are
available from the Company's Employee Benefits Department.
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
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, and is convertible initially into one share of the
Company's Common Stock. During 1997 and 1996, the Company paid approximately
$1,630,000 and $1,974,000, respectively, 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 interest rate on the loan
was 9.99% and through September, 1997, the loan was being repaid by the Plan
through dividends received on the Preferred Stock and Company contributions.
On October 1, 1997, the Company purchased 248,881 shares of Preferred Stock
from the Plan at an independently appraised value of $33.1875 per share,
representing preferred shares that secured the loan and had not been released
for allocation to participant's accounts. The Company retired these preferred
shares. The Plan used the proceeds to pay off the related loan balance.
Principal payments of $13,260,701 and $5,002,647 were made during 1997 and
1996, respectively. The Plan incurred approximately $930,000 and $1,794,000
of interest on this loan in 1997 and 1996. Participants received allocations
of the Preferred Stock as debt payments were made. During 1997 and 1996, there
were 61,001 and 127,442 shares released, respectively, and allocated to
participants. As of December 31, 1997, there were 1,228 unallocated preferred
shares with an approximate value of $48,000. At December 31, 1996, there were
309,881 unallocated preferred shares with an approximate value of $7,902,000.
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 from the
converted Preferred Shares.
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
NOTE E: INVESTMENTS
During 1997 and 1996, the Plan's investments (including investments bought and
sold, as well as held during the year) appreciated in fair value by
$11,166,942 and $913,123, respectively. Mutual fund investment balances were
converted to cash at the end of 1997 in connection with the transition to the
Vanguard Funds in January 1998.
Net Appreciation
(Depreciation)
For the Year Ended in Fair Value Fair Value at
December 31, 1997 During Year End of Year
- ---------------------------- ------------------ -------------
Common Stock-
The Ryland Group, Inc. $ 35,210 $ 94,352
Putnam Voyager Fund 1,990,055 0
American Balanced Fund 609,286 0
Fidelity Growth Fund 687,563 0
Wells Fargo S&P 500 284,444 0
CIGNA Income Fund 24,563 0
Wachovia Short-Term Investment Fund 0 4,914,849
Loans to Participants 0 1,541,953
Preferred Stock -
The Ryland Group, Inc. 7,566,891 19,453,352
Standish Fixed Income Fund (31,070) 0
Cash 0 35,023,942
----------- ----------
Total $ 11,166,942 $ 61,028,448
========== ==========
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY PLAN
NOTE E: INVESTMENTS--CONTINUED
Net (Deprecation)
Appreciation in
For the Year Ended Fair Value Fair Value at
December 31, 1997 During Year End of Year
- ------------------------------ ------------------ ---------------
Common Stock-
The Ryland Group, Inc. $ (2,830) $ 152,436
Putnam Voyager Fund 582,660 11,188,498
American Balanced Fund 218,717 7,403,388
Fidelity Growth Fund 901,866 8,839,414
Wells Fargo S&P 500 71,847 571,048
CIGNA Income Fund 0 5,599,646
Wachovia Short-Term Investment Fund 0 144,646
Loans to Participants 0 1,765,450
Preferred Stock-
The Ryland Group, Inc. (901,448) 21,974,396
Standish Fixed Income Fund 42,311 3,034,816
------- ---------
Total $ 913,123 $ 60,673,738
========= ==========
The fair value of individual investments that represent 5% or more of the
Plan's net assets are as follows:
December 31, December 31,
1997 1996
---------------- --------------
Preferred Stock-
The Ryland Group, Inc. $ 19,453,352 $ 21,974,396
Wachovia Short-Term Investment Fund $ 4,914,849
Cash $ 35,023,942
Putnam Voyager Fund $ 11,188,498
American Balance Fund $ 7,403,388
Fidelity Growth Fund $ 8,839,414
CIGNA Income Fund $ 5,599,646
Standish Fixed Income Fund $ 3,034,816
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.
NOTES TO FINANCIAL STATEMENTS--CONTINUED
THE RYLAND GROUP, INC.
RETIREMENT SAVINGS OPPORTUNITY 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
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, 1997
Ryland Putnam American
Common Voyager Balanced
------ ------ --------
ASSETS
Receivables:
Accrued interest and
dividends $ 0 $ 0 $ 0
----------- ---------- ----------
Total receivables 0 0 0
Investments at fair value:
Cash 11,346,213 8,305,109
Short-term investments
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Loans to participants
---------- ---------- ---------
Total investments 0 11,346,213 8,305,109
---------- ---------- ---------
Total Assets 0 11,346,213 8,305,109
========== ========== =========
LIABILITIES
Accrued liabilities 0 0 0
---------- ---------- ---------
Total Liabilities 0 0 0
---------- ---------- ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 0 $ 11,346,213 $ 8,305,109
========== ========== =========
Standish Fidelity
Fixed Income Growth CIGNA
------------ ---------- --------
ASSETS
Receivables:
Accrued interest and
dividends $ 0 $ 0 $ 0
---------- ---------- ----------
Total receivables 0 0 0
Investments at fair value:
Cash 2,652,842 10,148,227 1,258
Short-term investments 4,912,032
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Loans to participants
---------- ---------- ----------
Total investments 2,652,842 10,148,227 4,913,290
---------- ----------- ----------
Total Assets 2,652,842 10,148,227 4,913,290
========== =========== ==========
LIABILITIES
Accrued liabilities 0 0 1,856
---------- ----------- -----------
Total Liabilities 0 0 1,856
---------- ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 2,652,842 $ 10,148,227 $ 4,911,434
============ =========== ==========
Wells Fargo Ryland
S&P 500 Preferred
----------- ----------
ASSETS
Receivables:
Accrued interest and
dividends $ 0 $ 277,740
----------- ----------
Total receivables 0 277,740
Investments at fair value:
Cash 2,610,923 (40,630)
Short-term investments 2,817
Preferred stock of
The Ryland Group, Inc. 19,453,352
Common stock of
The Ryland Group, Inc. 94,352
Loans to participants
---------- ------------
Total investments 2,610,923 19,509,891
---------- -----------
Total Assets 2,610,923 19,787,631
========== ===========
LIABILITIES
Accrued liabilities 0 0
---------- ----------
Total Liabilities 0 0
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 2,610,923 $ 19,787,631
=========== ============
Loan
Fund Total
----------- ----------
ASSETS
Receivables:
Accrued interest and
dividends $ 0 $ 277,740
----------- ----------
Total receivables 0 277,740
Investments at fair value:
Cash 35,023,942
Short-term investments 4,914,849
Preferred stock of
The Ryland Group, Inc. 19,453,352
Common stock of
The Ryland Group, Inc. 94,352
Loans to participants 1,541,953 1,541,953
---------- ------------
Total investments 1,541,953 61,028,448
---------- -----------
Total Assets 1,541,953 61,306,188
========== ===========
LIABILITIES
Accrued liabilities 0 1,856
----------- -----------
Total Liabilities 0 1,856
----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 1,541,953 61,304,332
============ ==========
NOTE G: NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND AS OF DECEMBER 31, 1996
Ryland Putnam American
Common Voyager Balanced
------ ------ --------
ASSETS
Receivables:
Accrued employer contributions
Accrued interest and dividends $ 14 $ 0 $ 0
--------- ---------- ---------
Total receivables 14 0 0
Investments at fair value:
Short-term investments 3,195
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc. 152,259
Mutual funds 11,188,498 7,403,388
Loans to participants
------- ---------- ---------
Total investments 155,454 11,188,498 7,403,388
------- ---------- ---------
Total Assets 155,468 11,188,498 7,403,388
======= ========== =========
LIABILITIES
Accrued liabilities 0 0 0
Loan payable to
The Ryland Group, Inc.
--------- ---------- --------
Total Liabilities 0 0 0
--------- ---------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 155,468 $ 11,188,498 $ 7,403,388
========== ========== =========
Standish Fidelity
Fixed Income Growth CIGNA
------------ ------------ --------
ASSETS
Receivables:
Accrued employer contributions
Accrued interest and dividends $ 0 $ 0 $ 23,913
--------- ---------- -------
Total receivables 0 0 23,913
Investments at fair value:
Short-term investments 36,639
CIGNA Income Fund 5,599,646
Preferred stock of
The Ryland Group, Inc.
Common stock of
The Ryland Group, Inc.
Mutual funds 3,034,816 8,839,414
Loans to participants
---------- ---------- ---------
Total investments 3,034,816 8,839,414 5,636,285
--------- --------- ---------
Total Assets 3,034,816 8,839,414 5,660,198
========= ========= =========
LIABILITIES
Accrued liabilities 0 0 0
Loan payable to
The Ryland Group, Inc.
------------ ----------- -----------
Total Liabilities 0 0 0
------------ ----------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 3,034,816 $ 8,839,414 $ 5,660,198
============ =========== ==========
Wells Fargo Ryland
S&P 500 Preferred
----------- ----------
ASSETS
Receivables:
Accrued employer contributions $ 2,732,371
Accrued interest and
dividends $ 0 475,983
----------- ----------
Total receivables 0 3,208,354
Investments at fair value:
Cash
Short-term investments 104,812
CIGNA Income Fund
Preferred stock of
The Ryland Group, Inc. 21,974,396
Common stock of
The Ryland Group, Inc. 177
Mutual funds 571,048
Loans to participants
---------- -----------
Total investments 571,048 22,079,385
---------- -----------
Total Assets 571,048 25,287,739
========== ===========
LIABILITIES
Accrued liabilities 0 409,360
Loan payable to
The Ryland Group, Inc. 16,390,810
---------- ----------
Total Liabilities 0 16,800,170
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 571,048 $ 8,487,569
=========== ===========
Loan
Fund Total
----------- ----------
ASSETS
Receivables:
Accrued employer contributions $ 2,732,371
Accrued interest and
dividends $ 0 499,910
----------- ----------
Total receivables 0 3,232,281
Investments at fair value:
Cash
Short-term investments 144,646
CIGNA Income Fund 5,599,646
Preferred stock of
The Ryland Group, Inc. 21,974,396
Common stock of
The Ryland Group, Inc. 152,436
Mutual funds 31,037,164
Loans to participants 1,765,450 1,765,450
---------- -----------
Total investments 1,765,450 60,673,738
---------- -----------
Total Assets 1,765,450 63,906,019
========== ===========
LIABILITIES
Accrued liabilities 0 409,360
Loan payable to
The Ryland Group, Inc. 16,390,810
---------- ----------
Total Liabilities 0 16,800,170
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 1,765,450 $ 47,105,849
=========== ===========
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, 1997
Ryland Putnam American
Common Voyager Balanced
-------- --------- -------
ADDITIONS
Contributions:
Employer 0 $ 176,036 $ 90,933
Participants 0 1,438,793 684,208
Rollovers 0 110,284 113,176
-------- --------- -------
Total contributions 0 1,725,113 888,317
Earnings on investments
Interest $ 115 13,696 9,646
Dividends 3,952 689,878 920,384
-------- --------- --------
Total Additions 4,067 2,428,687 1,818,347
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 76,133 2,678,459 1,350,134
Interest expense on loan
payable to 0 0 0
The Ryland Group, Inc.
Administrative expenses 4 50,115 34,869
-------- --------- ----------
Total Deductions 76,137 2,728,574 1,385,003
-------- --------- ----------
Net realized and unrealized
(depreciation) in fair value
of investments 35,210 1,990,055 609,286
Interfund transfers (118,608) (1,532,453) (140,909)
-------- --------- ----------
Net (Decrease) Increase in net
assets available for plan benefits (155,468) 157,715 901,721
Net assets available for
plan benefits at beginning of year 155,468 11,188,498 7,403,388
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $ 0 $11,346,213 $ 8,305,109
======== =========== =========
Standish Fidelity
Fixed Income Growth CIGNA
-------- --------- -------
ADDITIONS
Contributions:
Employer $ 35,535 $ 108,817 $ 47,049
Participants 278,716 969,461 370,565
Rollovers 46,442 138,594 27,419
-------- --------- --------
Total contributions 360,693 1,216,872 445,033
Earnings on investments
Interest 3,698 11,265 284,860
Dividends 227,507 956,462 1,762
-------- --------- --------
Total Additions 591,898 2,184,599 731,655
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 907,538 2,127,178 1,233,709
Interest expense
The Ryland Group, Inc. 0 0 0
Administrative expenses 13,952 41,250 24,058
-------- ---------- ---------
Total Deductions 921,490 2,168,428 1,257,767
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (31,070) 687,563 24,563
Interfund transfers (21,312) 605,079 (247,215)
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (381,974) 1,308,813 (748,764)
Net assets available for
plan benefits at beginning of year 3,034,816 8,839,414 5,660,198
--------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $2,652,842 $ 10,148,227 4,911,434
========== ========== ==========
Wells Fargo Ryland
S&P 500 Preferred
----------- -- -------
ADDITIONS
Contributions:
Employer $ 17,472 $ 6,673,370
Participants 270,124 0
Rollovers 128,543 0
---------- ----------
Total contributions 416,139 6,673,370
Earnings on investments
Interest 1,752 0
Dividends 7 1,629,535
-------- ----------
Total Additions 417,898 8,302,905
-------- ----------
DEDUCTIONS
Benefit payments to participants 260,838 3,348,835
Interest expense on loan
payable to
The Ryland Group, Inc. 0 929,994
Administrative expenses 0 0
---------- ----------
Total Deductions 260,838 4,278,829
---------- ----------
Net realized and unrealized
(depreciation) in fair value
of investments 284,444 7,566,891
Interfund transfers 1,598,371 (290,905)
--------- ---------
Net (Decrease) Increase in net
assets available for plan benefits 2,039,875 11,300,062
Net assets available for
plan benefits at beginning of year 571,048 8,487,569
---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $ 2,610,923 $ 19,787,631
========== ============
Loan
Fund Total
-------- -- -------
ADDITIONS
Contributions:
Employer $ 0 $ 7,149,212
Participants 0 4,011,867
Rollovers 0 564,458
-------- ---------
Total contributions 0 11,725,537
Earnings on investments
Interest $ 140,134 465,166
Dividends 0 4,429,487
-------- ---------
Total Additions 140,134 16,620,190
-------- ----------
DEDUCTIONS
Benefit payments to participants 511,583 12,494,407
Interest expense on loan
payable to
The Ryland Group, Inc. 0 929,994
Administrative expenses 0 164,248
-------- ----------
Total Deductions 511,583 13,588,649
-------- ----------
Net realized and unrealized
(depreciation) in fair value
of investments 0 11,166,942
Interfund transfers 147,952 0
-------- ----------
Net (Decrease) Increase in net
assets available for plan benefits (223,497) 14,198,483
Net assets available for
plan benefits at beginning of year 1,765,450 47,105,849
--------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $ 1,541,953 $ 61,304,332
============ ==============
NOTE H: ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY
FUND FOR THE YEAR ENDED DECEMBER 31, 1996
Ryland Putnam American
Common Voyager Balanced
-------- --------- -------
ADDITIONS
Contributions:
Employer 0 $ 207,612 $ 111,736
Participants 0 1,634,652 807,299
Rollovers 0 100,048 37,491
-------- --------- --------
Total contributions 0 1,942,312 956,526
Earnings on investments
Interest $ 205 0 0
Dividends 7,481 702,173 699,167
-------- --------- --------
Total Additions 7,686 2,644,485 1,655,693
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 22,095 2,320,296 1,443,227
Interest expense 0 0 0
Administrative expenses 6 49,961 34,157
-------- --------- --------
Total Deductions 22,101 2,370,257 1,477,384
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments (2,830) 582,660 218,717
Interfund transfers (12,484) 287,915 (877,284)
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (29,729) 1,144,803 (480,258)
Net assets available for
plan benefits at beginning of year 185,197 10,043,695 7,883,646
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $155,468 $11,188,498 $7,403,388
======== =========== =========
Standish Fidelity
Fixed Income Growth CIGNA
-------- --------- -------
ADDITIONS
Contributions:
Employer $ 46,037 $ 131,019 $ 61,458
Participants 330,644 1,028,611 447,719
Rollovers 35,198 75,833 74,862
-------- --------- --------
Total contributions 411,879 1,235,463 584,039
Earnings on investments
Interest 0 1,266 333,539
Dividends 209,031 396,949 0
-------- --------- --------
Total Additions 620,910 1,633,678 917,578
-------- --------- --------
DEDUCTIONS
Benefit payments to participants 506,323 1,828,102 1,260,516
Interest expense 0 0 0
Administrative expenses 13,551 38,519 29,230
-------- --------- --------
Total Deductions 519,874 1,866,621 1,289,746
-------- --------- --------
Net realized and unrealized
(depreciation) in fair value
of investments 42,311 901,866 0
Interfund transfers (311,118) 403,050 (319,038)
-------- --------- --------
Net (Decrease) Increase in net
assets available for plan benefits (167,771) 1,071,973 (691,206)
Net assets available for
plan benefits at beginning of year 3,202,587 7,767,441 6,351,404
-------- --------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $3,034,816 $8,839,414 5,660,198
========== ========== ===========
Wells Fargo Ryland
S&P 500 Preferred
-------- -- -------
ADDITIONS
Contributions:
Employer $ 6,442 $ 6,699,479
Participants 85,020 0
Rollovers 14,845 0
-------- ---------
Total contributions 106,307 6,699,479
Earnings on investments
Interest 0 0
Dividends 0 1,974,464
-------- --------
Total Additions 106,307 8,673,943
-------- --------
DEDUCTIONS
Benefit payments to participants 21,044 2,017,925
Interest expense 0 1,794,450
Administrative expenses 0 0
-------- --------
Total Deductions 21,044 3,812,375
---------- --------
Net realized and unrealized
(depreciation) in fair value
of investments 71,847 (901,448)
Interfund transfers 413,938 0
-------- --------
Net (Decrease) Increase in net
assets available for plan benefits 571,048 3,960,120
Net assets available for
plan benefits at beginning of year 0 4,527,449
-------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $ 571,048 $8,487,569
========== ==========
Loan
Fund Total
-------- -- -------
ADDITIONS
Contributions:
Employer $ 0 $ 7,263,783
Participants 0 4,333,945
Rollovers 0 338,277
-------- ---------
Total contributions 0 11,936,005
Earnings on investments
Interest $ 137,129 472,139
Dividends 0 3,989,265
-------- ---------
Total Additions 137,129 16,397,409
-------- ----------
DEDUCTIONS
Benefit payments to participants 300,014 9,719,542
Interest expense 0 1,794,450
Administrative expenses 0 165,424
-------- ----------
Total Deductions 300,014 11,679,416
-------- ----------
Net realized and unrealized
(depreciation) in fair value
of investments 0 913,123
Interfund transfers 415,021 0
-------- --------
Net (Decrease) Increase in net
assets available for plan benefits 252,136 5,631,116
Net assets available for
plan benefits at beginning of year 1,513,314 41,474,733
-------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS AT END OF YEAR $1,765,450 $ 47,105,849
========== ============
NOTES TO FINANCIAL STATEMENTS
THE RYLAND GROUP, INC.
RETIREMENT AND STOCK OWNERSHIP PLAN
The Ryland Group, Inc.
Retirement Savings Opportunity Plan
Line 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1997
Description of
Investment,
Including Maturity
Identity of Issue, Date, Rate of
Borrower, Lessor Interest, Par or Current
or Similar Party Maturity Value Cost Value
- ----------------- ------------------ ----------- -----------
* The Ryland Group, Inc. Common Stock $ 98,198 $ 94,352
* The Ryland Group, Inc. Preferred Stock 15,870,667 19,453,352
Wachovia DTF Money Market
Short-term Investment Mutual Funds 4,914,849 4,914,849
Participant Loans High - 9.5% 1,541,953 1,541,953
Low - 9.25%
Cash 35,023,942 35,023,942
---------- ----------
Total $57,449,609 $61,028,448
========== ==========
* Denotes party in-interest
Line 27d - Schedule of Reportable Transactions
FOR THE YEAR ENDED DECEMBER 31, 1997
(a) (b) (c)
Description
of Assets
(including interest rate and Purchase
Identity of Party Involved maturity in case of a loan) Price
- -------------------------- ---------------------------- --------
Category (i) - single transactions in excess of 5 percent of plan assets at
beginning of the year.
Wachovia DTF Short Term
Investment Fund Money Market Fund $ 4,746,109
American Balanced Fund Mutual Fund n/a
CIGNA Income Fund Guaranteed Account n/a
Fidelity Growth Fund Mutual Fund n/a
Wells Fargo S&P 500 Mutual Fund n/a
Putnam Voyager Fund Mutual Fund n/a
Standish Fixed Income Fund Mutual Fund n/a
Ryland Preferred Stock ** Preferred Stock n/a
* 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.
** Denotes party in-interest
(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.
Wachovia DTF Short Term
Investment Fund n/a n/a
American Balanced Fund $8,308,070 n/a
CIGNA Income Fund $4,746,122 n/a
Fidelity Growth Fund $10,151,693 n/a
Wells Fargo S&P 500 $2,610,917 n/a
Putnam Voyager Fund $11,350,444 n/a
Standish Fixed Income Fund $2,653,975 n/a
Ryland Preferred Stock ** $8,259,738 n/a
* 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.
**Denotes party in-interest
(f) *
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.
Wachovia DTF Short Term
Investment Fund $0
American Balanced Fund $0
CIGNA Income Fund $0
Fidelity Growth Fund $0
Wells Fargo S&P 500 $0
Putnam Voyager Fund $0
Standish Fixed Income Fund $0
Ryland Preferred Stock $0
* 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 identified by the trustee.
** Denotes party in-interest
(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.
Wachovia DTF Short Term
Investment Fund $ 4,746,109 $ 4,746,109
American Balanced Fund $ 7,263,317 $ 8,308,070
CIGNA Income Fund $ 4,789,731 $ 4,746,122
Fidelity Growth Fund $ 9,123,501 $ 10,151,693
Wells Fargo S&P 500 $ 2,316,366 $ 2,610,917
Putnam Voyager Fund $ 8,522,387 $ 11,350,444
Standish Income Fund $ 2,629,516 $ 2,653,975
Ryland Preferred Stock ** $ 9,925,281 $ 8,259,738
* 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.
** Denotes party in-interest
(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.
Wachovia DTF Short Term
Investment Fund n/a
American Balanced Fund $1,044,753
CIGNA Income Fund ($43,609)
Fidelity Growth Fund $1,028,192
Wells Fargo S&P 500 $294,551
Putnam Voyager Fund $2,828,057
Stanish Fixed Income Fund $24,459
Ryland Preferred Stock ** $(1,665,543)
* 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 truestee.
**Denotes party in-interest
(a) (b) c
Description
of Assets
(including interest rate and Purchase
Identity of Party Involved maturity in case of a loan Price
- -------------------------- --------------------------- --------
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 $26,634,800
Wachovia DTF Short Term
Investment Fund Money Market Fund n/a
American Balanced Fund Mutual Fund $2,413,873
American Balanced Fund Mutual Fund n/a
CIGNA Income Fund Guaranteed Account $1,321,296
CIGNA Income Fund Guaranteed Account n/a
Fidelity Growth Fund Mutual Fund $3,057,742
Fidelity Growth Fund Mutual Fund n/a
Wells Fargo S&P 500 Mutual Fund $2,198,324
Wells Fargo S&P 500 Mutual Fund n/a
Putnam Voyager Fund Mutual Fund $2,683,626
Putnam Voyager Fund Mutual Fund n/a
Standish Fixed Income Fund Mutual Fund $1,116,595
Standish Fixed Income Fund Mutual Fund n/a
Ryland Preferred Stock ** Preferred Stock n/a
Ryland Common Stock ** Common Stock $1,822,580
Ryland Common Stock ** Common Stock n/a
There were no category (ii)or (iv) reportable transactions during 1997
* 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.
** Denotes party in-interest
(d) (e)
Selling Lease
Identity of Party Involved Price Rental
- -------------------------- --------- --------
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 $21,655,216 n/a
American Balanced Fund n/a n/a
American Balanced Fund $10,426,546 n/a
CIGNA Income Fund n/a n/a
CIGNA Income Fund $7,176,639 n/a
Fidelity Growth Fund n/a n/a
Fidelity Growth Fund $12,584,718 n/a
Wells Fargo S&P 500 n/a n/a
Wells Fargo S&P 500 $3,053,813 n/a
Putnam Voyager Fund n/a n/a
Putnam Voyager Fund $15,862,179 n/a
Standish Fixed Income Fund n/a n/a
Standish Fixed Income Fund $4,120,340 n/a
Ryland Preferred Stock ** $11,551,840 n/a
Ryland Common Stock ** n/a n/a
Ryland Common Stock ** $1,926,933 n/a
There were no category (ii) or (iv) reportable transactions during 1997
*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.
**Denotes party in-interest
(f)* (g)
Expenses
Incurred
with Cost of
Identity of Party Involved Transaction Asset
- -------------------------- ------------ --------
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning
Wachovia DTF Short Term
Investment Fund $0 $26,634,800
Wachovia DTF Short Term
Investment $0 $21,655,216
American Balanced Fund $0 $2,413,873
American Balanced Fund $0 $9,031,921
CIGNA Income Fund $0 $1,321,296
CIGNA Income Fund $0 $7,220,247
Fidelity Growth Fund $0 $3,057,742
Fidelity Growth Fund $0 $11,140,084
Wells Fargo S&P 500 $0 $2,198,324
Wells Fargo S&P 500 $0 $2,699,658
Putnam Voyager Fund $0 $2,683,626
Putnam Voyager Fund $0 $11,914,342
Standish Fixed Income Fund $0 $1,116,595
Standish Fixed Income Fund $0 $4,053,018
Ryland Preferred Stock** $0 $12,931,800
Ryland Common Stock** $13 $1,822,593
Ryland Common Stock** $9,319 $1,937,014
There were no category (ii) or (iv) reportable transactions during 1997
* Commissions and fees related to purchase 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.
** Denotes party in-interest
(h) (I)
Current Value
of Asset
on Transaction Net Gain
Identity of Party Involved Date or (Loss)
- -------------------------- ------------ --------
Category (iii) - series of transactions in excess of 5 percent of plan assets
at beginning of the year.
Wachovia DTF Short Term
Investment Fund $26,634,800 n/a
Wachovia DTF Short Term
Investment Fund $21,655,216 $0
American Balanced Fund $2,413,873 n/a
American Balanced Fund 10,426,546 $1,394,625
CIGNA Income Fund $1,321,296 n/a
CIGNA Income Fund $7,176,639 ($43,608)
Fidelity Growth Fund $3,057,742 n/a
Fidelity Growth Fund $12,584,718 $1,444,634
Wells Fargo S&P 500 $2,198,324 n/a
Wells Fargo S&P 500 $3,053,813 $354,155
Putnam Voyager Fund $2,683,626 n/a
Putnam Voyager Fund $15,862,179 $3,947,837
Standish Fixed Income Fund $1,116,595 n/a
Standish Fixed Income Fund $4,120,340 $67,322
Ryland Preferred Stock ** $11,551,840 ($1,379,960)
Ryland Common Stock** $1,822,580 n/a
Ryland Common Stock** $1,926,933 ($19,400)
There were no category (ii) or (iv) reportable transactions during 1997
* 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.
** Denotes party in-interest
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 SAVINGS OPPORTUNITY PLAN
Date: June 30, 1998 By: /s/ Michael D. Mangan
------------------------
Michael D. Mangan
Executive Vice President
and Chief Financial
Officer of The Ryland
Group, Inc.
Page Of
Sequentially
Numbered Pages
--------------
INDEX OF EXHIBITS
-----------------
23 Consent of Ernst & Young, Independent Auditors 20
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 Savings Opportunity Plan
of The Ryland Group, Inc. of our report dated June 16, 1998, with respect to
the financial statements and schedules of The Ryland Group, Inc. Retirement
Savings Opportunity Plan included in this Annual Report (Form 11-K) for the
year ended December 31, 1997.
/s/ Ernst & Young LLP
Baltimore, Maryland
June 16, 1998
