The New Home Company Reports Selected 2020 Third Quarter Preliminary Results
October 13 2020 - 7:41AM
Business Wire
The New Home Company Inc. (NYSE: NWHM) today announced selected
preliminary results for the 2020 third quarter. These estimated
results are preliminary and unaudited.
Preliminary 2020 Third Quarter Financial Highlights
(Estimated Results)
- Net new orders of 251 as compared to 124 in the 2019 third
quarter, a 102% increase
- Monthly sales absorption of 3.5 per community as compared to
2.0 per community in the 2019 third quarter, a 75% increase
- September net new orders of 99, a 106% increase compared to
September 2019
- Homes in backlog of 329 homes, representing $207.1 million in
backlog value, as compared to 207 homes at the end of the 2019
third quarter, a 59% increase
- Ending actively selling community count of 25, a 14% increase
compared to the end of the 2019 third quarter
- Homes sales revenue of $117.4 million as compared to $118.8
million for the 2019 third quarter
- Deliveries of 157 as compared to 124 in the 2019 third quarter,
a 27% increase
- Average sales price of $748,000 as compared to $958,000 in the
2019 third quarter
- Fee building revenues of $13.4 million as compared to $22.3
million for the 2019 third quarter
- Cash and cash equivalents of $126.4 million as of September 30,
2020 as compared to $85.6 million as of June 30, 2020
- Total debt, net of $290.3 million as compared to $327.4 million
as of September 30, 2019
“The New Home Company continues to benefit from an incredibly
strong housing market, as September’s order activity represented
the highest monthly net order total in our company’s history driven
by a monthly sales absorption rate of 4.0 per community,” said New
Home Company CEO Leonard Miller. “Our preliminary results in the
third quarter were also positively impacted by our ongoing shift to
more affordable product, which helped push our monthly sales
absorption pace to 3.5 homes per community for the 2020 third
quarter and allowed us to raise prices at the vast majority of our
communities. For the 2020 third quarter, we expect to exceed the
high end of our previously issued gross margin guidance of 12.5%.
With the changes we’ve made to our product positioning, our
improving margin profile in backlog and our strengthening balance
sheet, we believe The New Home Company is poised to end 2020 on a
strong note and carry the momentum into the new year.”
We have provided the above preliminary estimated financial
results because our financial closing procedures for the three
months ended September 30, 2020 are not yet complete. The
preliminary estimated financial information set forth above does
not represent a comprehensive statement of our results of
operations or financial condition as of or for the three months
ended September 30, 2020 and is based solely on information
available to us as of the date of this press release. Our results
of operations and financial condition as of and for the three
months ended September 30, 2020 may vary from our current
expectations and may be different from the information described
above as our quarterly financial statement preparation process is
not yet complete and additional developments and adjustments may
arise between now and the time the financial statements and other
disclosures for this period are finalized, including all
disclosures required by GAAP. In addition, these preliminary
estimates are not necessarily indicative of the results to be
achieved for the remainder of 2020 or in any future period. There
can be no assurance that these estimates will be realized, and
estimates are subject to risks and uncertainties, many of which are
not within our control. The foregoing information should not be
viewed as a substitute for full financial statements prepared in
accordance with GAAP or as a measure of performance. Accordingly,
you should not place undue reliance on such preliminary estimated
financial information. Our preliminary estimated financial results
are forward-looking statements.
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 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.
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. Such statements include the
statements regarding current business conditions and potential
adverse impacts of the COVID-19 pandemic. These forward-looking
statements may include projections and estimates concerning our
revenues, community counts and openings, the timing and success of
specific projects, our ability to execute our strategic growth
objectives, gross margins, other projected results, income,
earnings per share, joint ventures and capital spending. Our
forward-looking statements are generally accompanied by words such
as “estimate,” “should,” “project,” “predict,” “believe,” “expect,”
“intend,” “anticipate,” “potential,” “plan,” “goal,” “will,”
“guidance,” “target,” “forecast,” 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: a pandemic, epidemic, or outbreak of infectious disease
or similar threat, and the response to such event by government
agencies and authorities, adverse impacts due to the COVID-19
pandemic, including a recession in the U.S., which could include,
among other things, a significant decrease in demand for our homes
or consumer confidence generally with respect to purchasing a home,
the impact of legislation designed to provide economic relief from
a recession, the inability of employees to work and of customers to
visit our communities due to government movement restrictions or
illness, disruptions in our supply chain, our inability to access
capital markets due to lack of liquidity in the economy resulting
from the responses to the COVID-19 pandemic, inconsistencies in the
classification of homebuilding as an essential business,
recognition of charges which may be material for inventory
impairments or land option contract abandonments; 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; our significant amount of debt and the impact of
restrictive covenants in our debt agreements; our ability to repay
our debt as it comes due or refinance our debt; changes in our
credit rating or outlook; volatility and uncertainty in the credit
markets and broader financial markets; our business and investment
strategy including our plans to sell more affordably priced homes;
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; changes in margin; write-downs;
shortages of or increased prices for labor, land or raw materials
used in housing construction; adverse weather conditions and
natural disasters (including wild fires and mudslides); our
concentration in California; issues concerning our joint venture
partnerships; the cost and availability of insurance and surety
bonds; governmental regulation, including the impact of "slow
growth" or similar initiatives; 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; delays in the land entitlement process, development,
construction, or the opening of new home communities; litigation
and warranty claims; the degree and nature of competition; the
impact of recent accounting standards; availability of qualified
personnel and our ability to retain our key personnel; and
information technology failures and data security breaches,
including issues involving increased reliance on technology due to
critical business functions being done remotely because of
COVID-19; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20201013005623/en/
Investor Relations Drew Mackintosh 949-382-7838
investorrelations@nwhm.com
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