- Total Revenues Increased 47% to $125
million -- Net New Orders up 125% -- Record Backlog
Dollar Value of $314 million, up 34% -
The New Home Company Inc. (NYSE: NWHM) today announced results
for the 2017 first quarter.
First Quarter 2017 Highlights Compared to First Quarter
2016
- Net income of $0.8 million, or $0.04
per diluted share vs. a net loss of $0.8 million, or $(0.04) per
diluted share
- Total revenues of $125.0 million vs.
$85.2 million, a 47% increase
- Home sales revenue of $69.4 million, a
64% increase
- Net new home orders up 125%
- Backlog dollar value up 34% to $313.9
million, a record quarter-end value
- Wholly owned community count up 40% to
14 vs. 10
“I am extremely pleased with our first quarter results,” said
The New Home Company’s Chief Executive Officer Larry Webb. “Both
revenues and profits came in ahead of our projections, resulting in
earnings per diluted share of $0.04 for the quarter. Orders for our
wholly owned business increased 125% on a year-over-year basis
thanks to strong contributions from both our Northern and Southern
California operations. The demand we saw in the first quarter is
further evidence that California continues to be one of the
strongest housing markets in the country. The state’s track record
of creating good paying jobs and its ongoing lack of available
supply have created a significant need for new housing in a number
of markets.”
Mr. Webb continued, “The value of our backlog at the end of the
quarter was $314 million, up 34% from last year, and represented
the highest quarter-end backlog total in our company’s history. The
company also improved its financial position and liquidity through
the issuance of $250 million senior unsecured notes due 2022.”
Mr. Webb concluded, “The strong start to the year positions us
well towards achieving our full year financial goals. As we broaden
our product portfolio to include more affordable price points, The
New Home Company is in a solid position to take advantage of
industry demand trends for the benefit of our homebuyers and
shareholders alike.”
First Quarter 2017 Operating Results
Total revenues for the 2017 first quarter were $125.0 million,
compared to $85.2 million in the prior year period. Net income
attributable to the Company was $0.8 million, or $0.04 per diluted
share, compared to a net loss of $0.8 million, or $(0.04) per
diluted share, in the prior year period. The year-over-year
increase in net income was primarily attributable to a 47% increase
in total revenues, a 20 basis point improvement in home sales gross
margin, and a 600 basis point improvement in selling, general and
administrative (“SG&A”) expenses as a percentage of home sales
revenue, due to stronger operating leverage from growth in our
wholly owned operations. These improvements were partially offset
by a 170 basis point reduction in fee building gross margin
percentage.
Wholly Owned Projects
Home sales revenue for the 2017 first quarter increased 64% to
$69.4 million, compared to $42.3 million in the prior year period.
The increase in home sales revenue was driven primarily by a 93%
increase in deliveries, which was partially offset by a 15%
decrease in the average selling price of homes delivered to $1.3
million. The decrease in our average selling price was primarily
due to a mix shift, including an increase in the number of
deliveries from lower-priced Southern California communities.
Gross margin from homes sales was 13.5% versus 13.3% in the
prior year period. The increase in home sales gross margin as
compared to the prior year was primarily due to a change in mix,
including the favorable impact of higher margins from communities
located in Newport Coast, CA. Adjusted gross margin from home sales
for the 2017 first quarter, which excludes interest in cost of home
sales was 15.7%* compared to 14.8%*.
Our SG&A expense ratio as a percentage of home sales revenue
was 14.5% versus 20.5% in the prior year period. The 600 basis
point improvement in the SG&A rate was largely attributable to
a 64% increase in home sales revenue, which was driven by a
significant increase in new home deliveries due to growth in our
wholly owned operations, and leverage of our G&A expenses.
Net new home orders were up 125% to 126 homes, compared to 56
homes in the prior year period. The Company's monthly sales
absorption pace was up significantly to 2.8 sales per average
selling community compared to 1.8 in the prior year period. Selling
communities were up 40% over the prior year, ending the 2017 first
quarter with 14 communities compared to 10 as of the end of the
prior year period.
The dollar value of the Company's wholly owned backlog at the
end of the 2017 first quarter was up 34% year-over-year to $313.9
million and totaled 151 homes, compared to $234.0 million and 104
homes in the prior year period. The increase in backlog dollar
value primarily related to the increase in net new home orders.
Fee Building Projects
Fee building revenue for the 2017 first quarter increased 30% to
$55.6 million primarily due to an increase in fee building
construction activity. Fee building gross margin was $1.7 million,
or 3.0%, compared to $2.0 million, or 4.7%, in the prior year
period. The reduction in fee building gross margin percentage was
largely due to a decrease in management fees received from joint
ventures, which were $1.2 million during the 2017 first quarter
compared to $2.2 million in the prior year period. The decrease in
management fees from JVs was primarily the result of fewer
deliveries and lower revenues from JV communities, which is
consistent with the Company’s strategic shift to emphasize wholly
owned operations.
Unconsolidated Joint Ventures
(JVs)
The Company’s share of joint venture income for the 2017 first
quarter was $0.3 million, compared to a $7,000 loss in the prior
year period. The following sets forth supplemental information
about the Company’s JVs. Such information is not included in the
Company’s financial data for GAAP purposes but is provided for
informational purposes.
Total revenue of the JVs was $26.6 million and net loss was
$(0.9) million, compared to $42.0 million and $2.1 million in
income in the prior year period, respectively. Home sales revenue
of the JVs was $25.1 million, compared to $38.2 million in the
prior year period.
At the end of the 2017 first quarter, the JVs had nine active
selling communities, up from six at the end of the prior year
period. Net new home orders from JVs for the 2017 first quarter
decreased 15% to 39 homes as compared to 46 homes in the prior year
period. The dollar value of homes in backlog from unconsolidated
JVs at the end of the 2017 first quarter was $64.0 million from 69
homes, compared to $94.7 million from 101 homes in the prior year
period.
Balance Sheet and Liquidity
On March 17, 2017, the Company completed the sale of $250
million in aggregate principal amount of 7.25% Senior Notes due
2022. Proceeds from the notes were used to repay the outstanding
balance under the Company's revolving credit facility, with the
balance to be used for general corporate purposes. As of
March 31, 2017, the Company had real estate inventories
totaling $322.0 million, of which $192.4 million represented
work-in-process and completed homes (including models), $87.1
million in land and land under development, and $42.5 million in
land deposits and pre-acquisition costs. The Company owned or
controlled 1,670 lots through its wholly owned operations
(excluding fee building and joint venture lots), of which 1,036
lots, or 62%, were controlled or under option. The Company ended
the 2017 first quarter with $110.1 million in cash and cash
equivalents and had no borrowings outstanding under its $260.0
million revolving credit facility. The Company ended the 2017 first
quarter with $241.7 million in debt outstanding (net of unamortized
discount and debt issuance costs), a debt-to-capital ratio of 49.6%
and a net debt-to-capital ratio of 34.9%*.
Guidance
The Company maintained its full year guidance for 2017 as
follows:
- Home sales revenue of $530 - $570
million
- Fee building revenue of $130 - $150
million
- Income from unconsolidated joint
ventures of $4 - $6 million
- Wholly owned active year-end community
count of 18
- Joint venture active year-end community
count of 8
Conference Call Details
The Company will host a conference call and webcast for
investors and other interested parties beginning at 11:00 a.m.
Eastern Time on Thursday, April 27, 2017, to review first quarter
results, discuss recent events and results, and discuss the
Company's full year and certain quarterly guidance for 2017. We
will also conduct a question-and-answer period. The conference call
will be available in the Investors section of the Company’s website
at www.NWHM.com. To listen to the broadcast live, go to the site
approximately 15 minutes prior to the scheduled start time in order
to register, download and install any necessary audio software. To
participate in the telephone conference call, dial 1-877-407-0789
(domestic) or 1-201-689-8562 (international) at least five minutes
prior to the start time. Replays of the conference call will be
available through May 28, 2017, and can be accessed by dialing
1-844-512-2921 (domestic) or 1-412-317-6671 (international) and
entering the pass code 13658651.
About The New Home Company
NWHM is a new generation homebuilder focused on the design,
construction and sale of innovative and consumer-driven homes in
major metropolitan areas within select growth markets in California
and Arizona, including coastal Southern California, the San
Francisco Bay area, metro Sacramento and the greater Phoenix area.
The Company is headquartered in Aliso Viejo, California. For more
information about the Company and its new home developments, please
visit the Company's website at www.NWHM.com.
* Adjusted homebuilding gross margin percentage and net
debt-to-capital ratio are non-GAAP measures. A reconciliation of
the appropriate GAAP measure to each of these measures is included
in the accompanying financial data. See "Reconciliation of Non-GAAP
Financial Measures."
Forward-Looking Statements
Various statements contained in this press release, including
those that express a belief, anticipation, expectation or
intention, as well as those that are not statements of historical
fact, are forward-looking statements. These forward-looking
statements may include projections and estimates concerning the
timing and success of specific projects, community counts and
openings and our future production, our ability to execute our
strategic growth objectives, gross margins, revenues, projected
results, income, earnings per share and capital spending. Our
forward-looking statements are generally accompanied by words such
as “estimate,” “project,” “predict,” “believe,” “expect,” “intend,”
“anticipate,” “potential,” “plan,” “goal,” “will,” “guidance,” or
other words that convey the uncertainty of future events or
outcomes. The forward-looking statements in this press release
speak only as of the date of this release, and we disclaim any
obligation to update these statements unless required by law, and
we caution you not to rely on them unduly. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. The following factors, among others, may cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
these forward-looking statements: economic changes either
nationally or in the markets in which we operate, including
declines in employment, volatility of mortgage interest rates and
inflation; a downturn in the homebuilding industry; changes in
sales conditions, including home prices, in the markets where we
build homes, volatility and uncertainty in the credit markets and
broader financial markets; our business and investment strategy;
availability of land to acquire and our ability to acquire such
land on favorable terms or at all; our liquidity and availability,
terms and deployment of capital; shortages of or increased prices
for labor, land or raw materials used in housing construction;
delays in land development or home construction resulting from
adverse weather conditions or other events outside our control;
issues concerning our joint venture partnerships; the cost and
availability of insurance and surety bonds; changes in, or the
failure or inability to comply with, governmental laws and
regulations; the timing of receipt of regulatory approvals and the
opening of projects; the degree and nature of competition; our
leverage and debt service obligations; the impact of recent
accounting standards; restrictive covenants relating to our
operations in our current of future financing arrangements;
availability of qualified personnel and our ability to retain our
key personnel; and additional factors discussed under the sections
captioned “Risk Factors” included in our annual report and other
reports filed with the Securities and Exchange Commission. The
Company reserves the right to make such updates from time to time
by press release, periodic report or other method of public
disclosure without the need for specific reference to this press
release. No such update shall be deemed to indicate that other
statements not addressed by such update remain correct or create an
obligation to provide any other updates.
THE NEW HOME COMPANY
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended March 31, 2017
2016 (Dollars in thousands,
except per share amounts)
Revenues: Home sales $ 69,406 $
42,303 Fee building, including management fees from unconsolidated
joint ventures of $1,214 and $2,175, respectively 55,617
42,937 125,023 85,240
Cost of Sales:
Home sales 60,065 36,670 Fee building 53,926 40,914
113,991 77,584
Gross Margin: Home sales 9,341 5,633 Fee
building 1,691 2,023 11,032 7,656 Selling and
marketing expenses (5,001 ) (3,476 ) General and administrative
expenses (5,090 ) (5,175 ) Equity in net income (loss) of
unconsolidated joint ventures 306 (7 ) Other income (expense), net
113 (109 ) Income (loss) before income taxes 1,360 (1,111 )
(Provision) benefit for income taxes (524 ) 242 Net income
(loss) 836 (869 ) Net loss attributable to noncontrolling interest
10 55 Net income (loss) attributable to The New Home
Company Inc. $ 846 $ (814 ) Earnings (loss) per share
attributable to The New Home Company Inc.: Basic $ 0.04 $ (0.04 )
Diluted $ 0.04 $ (0.04 ) Weighted average shares outstanding: Basic
20,767,464 20,599,014 Diluted 20,899,263 20,599,014
THE NEW HOME COMPANY
CONSOLIDATED BALANCE SHEETS
March 31, December 31, 2017 2016
(Dollars in thousands, except per share amounts) (Unaudited)
Assets Cash and cash equivalents $ 110,113 $ 30,496
Restricted cash 209 585 Contracts and accounts receivable 25,682
27,833 Due from affiliates 456 1,138 Real estate inventories
321,994 286,928 Investment in and advances to unconsolidated joint
ventures 54,204 50,857 Other assets 25,107 21,299 Total
assets $ 537,765 $ 419,136
Liabilities and
equity Accounts payable $ 38,082 $ 33,094 Accrued expenses and
other liabilities 12,439 23,418 Unsecured revolving credit facility
— 118,000 Senior notes, net 241,738 — Total liabilities
292,259 174,512 Equity: Stockholders' equity: Preferred
stock, $0.01 par value, 50,000,000 shares authorized, no shares
outstanding — — Common stock, $0.01 par value, 500,000,000 shares
authorized, 20,863,399 and 20,712,166, shares issued and
outstanding as of March 31, 2017 and December 31, 2016,
respectively 209 207 Additional paid-in capital 197,205 197,161
Retained earnings 48,001 47,155 Total stockholders' equity
245,415 244,523 Noncontrolling interest in subsidiary 91 101
Total equity 245,506 244,624 Total liabilities and equity $
537,765 $ 419,136
THE NEW HOME COMPANY
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Three Months Ended March 31, 2017
2016 (Dollars in
thousands)
Operating activities: Net income (loss) $ 836 $
(869 ) Adjustments to reconcile net income (loss) to net cash used
in operating activities: Deferred taxes (54 ) (27 ) Amortization of
equity based compensation 611 985 Excess income tax provision from
stock-based compensation — 97 Distributions of earnings from
unconsolidated joint ventures 1,588 — Equity in net (income) loss
of unconsolidated joint ventures (306 ) 7 Deferred profit from
unconsolidated joint ventures 148 312 Depreciation 123 125
Abandoned project costs 34 149 Net changes in operating assets and
liabilities: Restricted cash 376 138 Contracts and accounts
receivable 2,151 5,875 Due from affiliates 799 53 Real estate
inventories (36,077 ) (98,712 ) Other assets (3,669 ) (3,616 )
Accounts payable 4,988 5,470 Accrued expenses and other liabilities
(10,979 ) (10,723 ) Due to affiliates — (30 ) Net cash used
in operating activities (39,431 ) (100,766 )
Investing
activities: Purchases of property and equipment (50 ) (174 )
Contributions and advances to unconsolidated joint ventures (3,796
) (4,327 ) Distributions of capital from unconsolidated joint
ventures 24 3,531 Net cash used in investing
activities (3,822 ) (970 )
Financing activities: Borrowings
from credit facility 72,000 115,000 Repayments of credit facility
(190,000 ) — Proceeds from senior notes 247,402 — Borrowings from
other notes payable — 339 Repayments of other notes payable —
(14,822 ) Payment of debt issuance costs (5,967 ) — Minimum tax
withholding paid on behalf of employees for stock awards (565 )
(630 ) Excess income tax provision from stock-based compensation —
(97 ) Net cash provided by financing activities 122,870
99,790 Net increase (decrease) in cash and cash
equivalents 79,617 (1,946 ) Cash and cash equivalents – beginning
of period 30,496 45,874 Cash and cash equivalents –
end of period $ 110,113 $ 43,928
THE NEW HOME COMPANYKEY FINANCIAL AND
OPERATING DATA(Dollars in thousands)(Unaudited)
New Home Deliveries: Three Months
Ended March 31, 2017 2016
% Change Homes
Dollar
Value
Average
Price
Homes
Dollar
Value
Average
Price
Homes
Dollar
Value
Average
Price
Southern California 22 $ 43,923 $ 1,997 11 $ 29,308 $ 2,664 100 %
50 % (25 )% Northern California 32 25,483 796 17
12,995 764 88 % 96 % 4 % Total 54 $ 69,406
$ 1,285 28 $ 42,303 $ 1,511 93 % 64 % (15 )%
Net New Home Orders:
Three Months Ended March 31, 2017
2016
% Change Southern California 56 27 107 % Northern
California 70 29 141 % 126 56 125 %
Active
Communities: As of March 31, 2017 2016
% Change Southern California 7 5 40 % Northern California 7
5 40 % 14 10 40 %
Backlog: As of March 31,
2017 2016
% Change Homes
Dollar
Value
Average
Price
Homes
Dollar
Value
Average
Price
Homes
Dollar
Value
Average
Price
Southern California 82 $ 267,141 $ 3,258 70 $ 200,848 $ 2,869 17 %
33 % 14 % Northern California 69 46,792 678 34
33,112 974 103 % 41 % (30 )% Total 151 $ 313,933
$ 2,079 104 $ 233,960 $ 2,250 45 % 34 % (8 )%
Lots Owned and Controlled:
March 31, 2017
2016
% Change Lots Owned Southern California 354
202 75 % Northern California 280 272 3 % Total 634
474 34 %
Lots Controlled(1)
Southern California 635 635 — % Northern California 253 379 (33 )%
Arizona 148 — NA Total 1,036 1,014 2 %
Lots Owned and Controlled - Wholly Owned 1,670 1,488 12 %
Fee Building(2)
817 1,227 (33 )% Total Lots Owned and Controlled
2,487 2,715 (8 )% (1) Includes
lots that we control under purchase and sale agreements or option
agreements subject to customary conditions and have not yet closed.
There can be no assurance that such acquisitions will occur. (2)
Lots owned by third party property owners for which we perform
construction services.
Other Financial Data:
Three Months Ended
March 31, 2017
2016 Interest incurred $ 2,036 $ 1,281 Adjusted EBITDA(1) $
4,961 $ 803 Adjusted EBITDA margin percentage 4.0 % 0.9 %
LTM(2) Ended March 31, 2017 2016
Interest incurred $ 8,239 $ 5,125 Adjusted EBITDA(1) $ 47,302 $
37,907 Adjusted EBITDA margin percentage 6.4 % 9.2 % Ratio of
Adjusted EBITDA to total interest incurred 5.7x 7.4x (1)
Adjusted EBITDA, Adjusted EBITDA margin percentage,
and ratio of Adjusted EBITDA to total interest incurred are
non-GAAP measures. Please see "Reconciliation of Non-GAAP Financial
Measures" for a reconciliation of each of these measures to the
appropriate GAAP measure. (2) "LTM" indicates amounts for the
trailing 12 months.
THE NEW HOME COMPANY
KEY FINANCIAL AND OPERATING DATA -
UNCONSOLIDATED JOINT VENTURES
(Dollars in thousands)
(Unaudited)
Three Months Ended March 31, 2017
2016
%
Change
Financial Data - Unconsolidated Joint Ventures: Home sales
revenue $ 25,146 $ 38,201 (34 )% Land sales revenue 1,474
3,756 (61 )% Total revenue $ 26,620 $ 41,957
(37 )% Net income (loss) $ (864 ) $ 2,141 (140 )%
Operating Data - Unconsolidated Joint Ventures: New home
orders 39 46 (15 )% New homes delivered 32 45 (29 )% Average
selling price of homes delivered $ 786 $ 849 (7 )% Selling
communities at end of period 9 6 50 % Backlog homes (dollar value)
$ 63,982 $ 94,707 (32 )% Backlog (homes) 69 101 (32 )% Average
sales price of backlog $ 927 $ 938 (1 )% Homebuilding lots
owned and controlled 553 667 (17 )% Land development lots owned and
controlled 2,415 2,575 (6 )% Total lots owned and
controlled 2,968 3,242 (8 )%
THE NEW HOME COMPANYRECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(Unaudited)
In this earnings release, we utilize certain non-GAAP financial
measures as defined by the Securities and Exchange Commission. We
present these measures because we believe they, and similar
measures, are useful to management and investors in evaluating the
Company’s operating performance and financing structure. We also
believe these measures facilitate the comparison of our operating
performance and financing structure with other companies in our
industry. Because these measures are not calculated in accordance
with Generally Accepted Accounting Principles (“GAAP”), they may
not be comparable to other similarly titled measures of other
companies and should not be considered in isolation or as a
substitute for, or superior to, financial measures prepared in
accordance with GAAP.
The following table reconciles homebuilding gross margin
percentage as reported and prepared in accordance with GAAP, to the
non-GAAP measure adjusted homebuilding gross margin percentage. We
believe this information is meaningful, as it isolates the impact
leverage has on homebuilding gross margin and provides investors
better comparisons with our competitors, who adjust gross margins
in a similar fashion.
Three Months Ended March 31,
2017 %
2016 % (Dollars in thousands)
Home sales revenue $ 69,406 100.0 % $ 42,303 100.0 % Cost of
home sales 60,065 86.5 % 36,670 86.7 % Homebuilding
gross margin 9,341 13.5 % 5,633 13.3 % Add: Interest in cost of
home sales 1,551 2.2 % 648 1.5 % Adjusted
homebuilding gross margin $ 10,892 15.7 % $ 6,281
14.8 %
Adjusted EBITDA, Adjusted EBITDA margin percentage and the ratio
of Adjusted EBITDA to total interest incurred are non-GAAP
measures. Adjusted EBITDA means net income (loss) (plus cash
distributions of income from unconsolidated joint ventures) before
(a) income taxes, (b) interest expense, (c) amortization of
previously capitalized interest included in cost of sales or other
expense, (d) non-cash impairment charges and abandoned project
costs, (e) gain (loss) on extinguishment of debt, (f) depreciation
and amortization, (g) amortization of equity-based compensation and
(h) income (loss) from unconsolidated joint ventures. Adjusted
EBITDA margin percentage is calculated by dividing Adjusted EBITDA
by total revenue for a given period. The ratio of Adjusted EBITDA
to total interest incurred is calculated by dividing Adjusted
EBITDA by total interest incurred for a given period. Other
companies may calculate Adjusted EBITDA differently. Management
believes that Adjusted EBITDA assists investors in understanding
and comparing the operating characteristics of homebuilding
activities by eliminating many of the differences in companies'
respective capitalization, interest costs, tax position and level
of impairments. Due to the significance of the GAAP components
excluded, Adjusted EBITDA should not be considered in isolation or
as an alternative to net income, cash flows from operations or any
other performance measure prescribed by GAAP. A reconciliation of
net income (loss) attributable to us to Adjusted EBITDA, Adjusted
EBITDA margin percentage and the ratio of Adjusted EBITDA to total
interest incurred is provided in the following table.
Three Months Ended
LTM(1) Ended March 31, March 31,
2017 2016 2017
2016 (Dollars in thousands) Net income
(loss) $ 836 $ (869 ) $ 22,631 $ 15,964 Add: Interest amortized to
cost of sales and other expense 1,551 648 6,234 2,885 Provision
(benefit) for income taxes 524 (242 ) 13,790 9,406 Depreciation and
amortization 123 125 509 485 Amortization of equity-based
compensation 611 985 3,097 4,615 Cash distributions of income from
unconsolidated joint ventures 1,588 — 5,330 15,775 Non-cash
impairments and abandonments 34 149 3,965 669 Less: Gain from notes
payable principal reduction — — (250 ) — (Income) loss from
unconsolidated joint ventures (306 ) 7 (8,004 ) (11,892 )
Adjusted EBITDA $ 4,961 $ 803 $ 47,302 $
37,907 Total Revenue $ 125,023 $ 85,240 $
734,239 $ 412,474 Adjusted EBITDA margin percentage
4.0 % 0.9 % 6.4 % 9.2 % Interest incurred $ 2,036 $ 1,281
$ 8,239 $ 5,125 Ratio of Adjusted EBITDA to
total interest incurred 5.7x 7.4x (1) "LTM"
indicates amounts for the trailing 12 months.
The following table reconciles the Company’s ratio of
debt-to-capital to the non-GAAP ratio of net debt-to-capital. We
believe that the ratio of net debt-to-capital is a relevant
financial measure for management and investors to understand the
leverage employed in our operations and as an indicator of the
Company’s ability to obtain financing.
March 31,
December 31, 2017
2016 (Dollars in thousands) Total debt, net $ 241,738
$ 118,000 Equity, exclusive of noncontrolling interest 245,415
244,523 Total capital $ 487,153 $ 362,523
Ratio of debt-to-capital(1) 49.6 % 32.5 % Total debt,
net $ 241,738 $ 118,000 Less: cash, cash equivalents and restricted
cash 110,322 31,081 Net debt 131,416 86,919 Equity,
exclusive of noncontrolling interest 245,415 244,523
Total capital $ 376,831 $ 331,442 Ratio of net
debt-to-capital(2) 34.9 % 26.2 % (1) The ratio
of debt-to-capital is computed as the quotient obtained by dividing
total debt, net by the sum of total debt plus equity, exclusive of
noncontrolling interest. (2) The ratio of net debt-to-capital is
computed as the quotient obtained by dividing net debt (which is
total debt, net less cash to the extent necessary to reduce the
debt balance to zero) by total capital, exclusive of noncontrolling
interest. The most directly comparable GAAP financial measure is
the ratio of debt-to-capital. We believe the ratio of net
debt-to-capital is a relevant financial measure for investors to
understand the leverage employed in our operations and as an
indicator of our ability to obtain financing. We believe that by
deducting our cash from our notes payable, we provide a measure of
our indebtedness that takes into account our cash liquidity. We
believe this provides useful information as the ratio of
debt-to-capital does not take into account our liquidity and we
believe that the ratio net of cash provides supplemental
information by which our financial position may be considered.
Investors may also find this to be helpful when comparing our
leverage to the leverage of our competitors that present similar
information. See the table above reconciling this non-GAAP
financial measure to the ratio of debt-to-capital.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170427005581/en/
The New Home Company Inc.Investor RelationsDrew Mackintosh,
949-382-7838investorrelations@nwhm.com
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