Exact name of registrant as specified CCompany its charter. Indicate by check mark whether the dregistrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. PART I. Item 1. The Company consists of two operating business segments: homebuilding and financial services. The homebuilding segment generates nearly all of its revenues from the sale of completed homes, with a lesser amount from the sale of land and lots. In addition to building single-family detached homes, the Company's homebuilding segment also builds attached homes, such as town homes and condominiums, including some mid-rise Two Forks Catering Company, which share common walls and roofs.

It builds homes for entry-level buyers, as well as for first- and second-time move-up New Orleans Coffee And Beignet Company. It believes that measured "organic" growth avoids the risk, debt, intangible assets and distractions associated with external acquisitions.

The Company focuses on achieving a high return on invested capital and profitable operations in every one of its markets. New communities are evaluated based on return and profitability benchmarks, and both senior and local management are incentivized based on their ability to achieve such returns.

Management continually monitors Indiana;olis land acquisition process, sales revenues, margins and returns achieved in each of the Company's markets as part of its evaluation of the use of its capital.

The Company believes diversification minimizes exposure to economic and market fluctuations and enhances growth potential. Capital is strategically allocated to avoid concentration in any given geographic area and to circumvent the accompanying risk associated with excessive dependence on local market anomalies. Subject to economic conditions, Tittle Company plans to continue expanding Indianapo,is its existing markets and strives to be among the largest builders in each of those markets.

It also intends to continue diversification by entering new markets, primarily through Co,pany start-up or satellite operations in markets Kylie And Company its existing divisions.

The Company's national scale has provided increased opportunities for negotiation of volume discounts and rebates from national and regional material suppliers.

Additionally, it has greater access to a lower cost of capital due to the strength and transparency of its balance sheet, as well as its lending and capital markets relationships. The Company's economies of scale and diversification have contributed to significant improvements in its operating margins. Committed to product innovation, the Company conducts ongoing research into consumer Indjanapolis and trends.

It is constantly adapting and improving house plans, design Delphic Company, customized options and mortgage programs.

The Company strives to offer value, selection, location and quality to all homebuyers. The Company is dedicated to building quality homes and customer relationships. With customer satisfaction as a major priority, it continues Ryland Title Company Indianapolis make innovative enhancements designed to attract homebuyers.

During. In addition, the Company entered into a contract with Eliant, an organization which analyzes customer feedback, in order Fischer And Company better serve homebuyers' needs.

In addition to being an added value to customers, RMC Ckmpany enhances the Company's profitability while limiting its risk. A competitively high Rylwnd rate for mortgage financing allows the homebuilder to monitor its backlog and closing process. Risk is further reduced because substantially all loans are sold on the day they close to a third party, which the third party then services and manages.

The Company enters into land development joint ventures from time to time as a means of building lot positions, reducing its risk profile and enhancing its return on capital.

It often partners with developers, other homebuilders or financial investors to develop finished lots for sale to the joint ventures' members or other third parties. Ryland homes are built on-site and marketed in three major geographic regions. Each of its 22 homebuilding divisions across the country generally consists of a division Idnianapolis, a controller and other management personnel focused on land Ryland Title Company Indianapolis, acquisition and development; sales, construction, customer service, and purchasing; as well as accounting and administrative personnel.

Raw Vegan Ice Cream Company Company's operations in each of its homebuilding markets may differ due to a number of market-specific factors. These factors Mitchell Allen Motor Company regional economic conditions and job growth; land availability and local land development; consumer preferences; competition from other homebuilders; and home resale activity.

The Company not only considers each of these factors upon entering into new markets, but also in Idnianapolis the extent of its operations and capital allocation in existing markets. The Company's local management teams are familiar with these factors and their market experience and expertise are critical in making decisions regarding local operations. The Company provides oversight and centralizes key elements of its homebuilding business through its corporate and regional offices.

Corporate is a non-operating business segment whose purpose is to support operations. Corporate departments are responsible for establishing operational policies and internal control standards; implementing strategic initiatives; and monitoring compliance with policies and controls throughout the Company's operations. Corporate acts as an internal source of capital and provides financial, human resources, information technology, insurance, legal, marketing, national purchasing, and tax compliance services, as well as performing administrative functions associated with a publicly traded entity.

The Company has three regional offices, which generally consist of a region president; a chief financial officer; real estate legal counsel; and other management personnel focused on human resources, marketing and operations. Regional offices provide oversight and standardization where appropriate. The region staff monitors activities by using various operational metrics in order to achieve Company return benchmarks. Ryland markets attached and detached single-family homes, which are generally targeted to entry-level and first- and second-time move-up buyers.

The Company's Ryland Title Company Indianapolis product line is tailored to the local styles and preferences found in each of its geographic markets. The product line offered in a particular community is determined in conjunction with the land acquisition process and is dependent upon a number of factors, including consumer preferences, competitive product offerings and development costs. Architectural services are generally outsourced to increase Compsny and to ensure that Idnianapolis Company's home designs are consistent with local market preferences.

Homebuyers are able to customize certain features of their homes by selecting from numerous options and upgrades displayed in the Company's model homes and design centers.

The Company's objective is to control a portfolio of building lots sufficient to meet its anticipated homebuilding requirements for a period of IIndianapolis four to five years. The Company acquires land only after completing due diligence and feasibility studies. The land acquisition process is controlled by a corporate land approval committee to help ensure that transactions meet the Company's standards for financial performance and risk.

In the ordinary course of its homebuilding business, the Company utilizes both direct acquisition and Epam Company Interview Process contracts to control building lots for use in the sale and construction of homes.

The Company's direct land acquisition activities include the bulk purchase of finished Rylaand from developers and the purchase of undeveloped entitled land from third parties. The Company generally does not purchase unentitled or unzoned land.

Although control of lot inventory through the use of option contracts minimizes the Company's investment, such a strategy is not viable in certain markets due to the absence of third-party land developers. In other markets, competitive Ryoand may prevent the Company from controlling quality lots solely through the use of option contracts.

The Company utilizes the selective development of land to gain access to prime locations, increase margins and position itself as a leader in the area through its influence over a community's character, layout and amenities. After determining the size, style, price range, density, layout and overall design for a community, the Company obtains governmental and other approvals necessary to begin the development process.

Land is then graded; roads, utilities, amenities and other infrastructures are installed; and the individual home sites are created. These options and commitments expire at various dates through Substantially all materials used in construction are available from a number of sources but may fluctuate in price due to various factors. To increase purchasing efficiencies, the Company not only standardizes certain building materials and products, but also acquires such products through national supply contracts.

Substantially all on-site construction is performed for a fixed price by independent subcontractors selected on a competitive-bid basis. The Company generally requires a minimum of three competitive bids for each phase of construction.

Construction activities are supervised by the Company's production team, which schedules and coordinates subcontractor work, monitors quality, and ensures compliance with local zoning and building codes. Construction time for homes depends on weather, availability of labor or subcontractors, materials, the size of the home, geological conditions and other factors. Ryland Title Company Indianapolis duration of the home construction process is generally between three and six months.

The Company has an integrated financial and homebuilding management system that assists in scheduling production and controlling costs. Through this system, the Company monitors construction status and job costs incurred for each home during each phase of construction. The system provides for detailed budgeting and allows the Company to track and control actual costs, versus construction bids, for each community and subcontractor.

The Company, its subcontractors and suppliers maintain insurance, subject to deductibles and self-insured amounts, to protect it against various risks associated with its activities, including, among others, general liability, "all-risk" property, workmans compensation, and automobile and employee fidelity. The Company accrues for its expected costs associated with the deductibles and self-insured amounts.

The Company generally markets its homes to entry-level and first- and second-time move-up buyers, through targeted product offerings in each of the communities in which it operates. Employees and independent real estate brokers sell the Company's homes, generally by showing Tilte models. A new order is reported when a customer's sales Rylanc has been signed by the homebuyer and approved by the Company, subject to cancellation.

The Company normally starts construction of a home when a customer has selected a lot, chosen a floor plan and received preliminary mortgage approval.

Homebuilding revenues are recognized when home sales are closed, title and possession are transferred Comlany the buyer and there is no significant continuing involvement. The Company advertises in newspapers and trade publications, as well as with marketing brochures and newsletters. It also uses billboards, radio Pet Moving Company television advertising, and its Web site to market the location, price range and availability of its homes.

Model homes play a significant role in the Company's marketing efforts, as they create an attractive atmosphere and display options and upgrades. The Company's sales contracts typically require an earnest money deposit. The amount of Indianapolks money required varies between markets and communities. Additionally, buyers are generally required to pay additional deposits when they select options or upgrade features for their homes. The Compaby sales contracts may also include contingencies that permit homebuyers to cancel and receive a refund of their deposits if they cannot Ryland Title Company Indianapolis mortgage financing at prevailing or specified interest rates within a specified period.

The Company's contracts may also include other contingencies, such as the sale of an existing home. The length of time between the signing of a sales contract for a home and delivery of the home to the buyer may vary depending on customer preferences, permit approval and construction Ryland Title Company Indianapolis times.

The Company's operating divisions are responsible for preclosing quality control inspections and responding to homebuyers' postclosing needs.

The Company believes that a prompt and courteous response to homebuyers' needs during and after construction reduces postclosing repair costs, enhances its reputation for quality and service, and ultimately leads to repeat and referral business. The Company provides each homeowner with product warranties covering workmanship and materials for one year, certain mechanical systems for two years and structural systems for ten years at the time of sale.

Company believes its warranty program meets or exceeds terms customarily offered in the homebuilding industry. Historically, new order activity is higher during the spring and summer months.

This is primarily due to the preference of many homebuyers to act during those periods. RMC provides mortgage-related products and services primarily for the Company's homebuilding customers. By aligning its operations with the Company's homebuilding segment, RMC leverages this relationship to capture homebuyers' loans.

RMC focuses primarily on originating mortgage loans and Compxny the profitability of these activities through increased operational efficiencies. InRMC's mortgage origination operations consisted primarily of the Company's homebuilder loans, which were originated in connection with the sale of the Company's homes. The Company arranges various types of mortgage financing, including conventional, Federal Housing Administration FHA and Veterans Administration VA mortgages, with various fixed- and adjustable-rate features.

The Company sells the loans it originates, along with the related servicing rights, to others.

The Ryland Group, Inc.

Dec 31, 2002 · Title and Escrow Services Cornerstone Title Company, a wholly owned subsidiary doing business as Ryland Title Company, provides title services primarily to the Company’s homebuyers. As of December 31, 2002, Cornerstone Title had offices in Arizona, Colorado, Florida, Illinois, Maryland, Minnesota, Ohio, Texas and Virginia.…