• |
Backlog of sold homes increased 163.2% to 6,381 homes valued at $2.9 billion, both Company records, compared to 2,424 homes valued at $865.1 million. McGuyer Homebuilders, Inc. ("MHI"), acquired on October 1, 2021, contributed 1,734 homes valued at $1.0 billion
|
• |
Home building revenues increased 84.4% to $850.1 million from $461.0 million
|
• |
Gross margin as a percentage of home sales revenues increased 60 basis points to 16.2% from 15.6%
|
• |
Pre-tax income attributable to DFH increased 86.6% to $71.4 million, compared to $38.2 million
|
• |
Average sales price of homes closed increased 28.4% to $440,939 from $343,305
|
• |
Home closings increased 46.6% to 1,960 from 1,337 homes
|
• |
Net new orders increased 42.3% to 1,974 from 1,387
|
• |
Home building revenues increased 70.0% to $1.9 billion from $1.1 billion
|
• |
Gross margin as a percentage of home sales revenues increased 140 basis points to 16.0% from 14.6%
|
• |
Pre-tax income attributable to DFH increased 87.9% to $148.6 million, compared to $79.1 million
|
• |
Average sales price of homes closed increased 8.8% to $389,094 from $357,633
|
• |
Home closings increased 54.5% to 4,874 from 3,154 homes
|
• |
Net new orders increased 62.5% to 6,804 from 4,186
|
• |
Active community count increased 62.7% to 205 from 126
|
• |
Controlled lot pipeline increased 99.7% to 38,495 as of December 31, 2021, from 19,276 at December 31, 2020
|
• |
Return on participating equity was 44.3% for the year ended December 31, 2021, compared to 47.0% for the year ended December 31, 2020
|
Q4 2021 (unaudited)
| |||||||||
Results and Operating Data (In thousands):
|
Units:
| ||||||||
Revenues
|
$
|
361,138
|
Net new orders
|
579
| |||||
Cost of sales
|
308,866
|
Home closings
|
689
| ||||||
Gross margin
|
52,272
| ||||||||
Gross margin %
|
14.5%
| ||||||||
SG&A
|
29,755
| ||||||||
SG&A % of revenue
|
8.2%
| ||||||||
Net income
|
23,966
| ||||||||
Net income %
|
6.6%
|
• |
Transaction costs of $3.0 million in relation to its initial public offering |
• |
Transaction costs of $1.4 million related to the acquisition of businesses
|
• |
Fair value adjustments from business combinations of $15.3 million, comprising contingent consideration revaluation of $7.5 million and inventory mark-up of $7.7 million
|
As of December 31, 2021 (unaudited) | |||||||
Backlog:
|
Units
|
Average Sales Price
| |||||
Jacksonville
|
1,463
|
$
|
391,593
| ||||
Colorado
|
133
|
537,906
| |||||
Orlando
|
934
|
476,442
| |||||
DC Metro
|
16
|
644,288
| |||||
The Carolinas
|
1,231
|
330,087
| |||||
Texas
|
1,734
|
598,517
| |||||
Other (1) |
870
|
424,123
| |||||
Total
|
6,381
|
$
|
456,538
|
(1) |
Austin, Savannah, Village Park Homes, Active Adult and Custom Homes. Austin refers to legacy DFH operations, exclusive of MHI. |
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, | |||||||||||||||
2021 (Unaudited) |
2020 (Unaudited) |
2021 .
|
2020 .
| |||||||||||||
Revenues
|
$
|
852,090
|
$
|
461,100
|
$
|
1,923,910
|
$
|
1,133,807
| ||||||||
Cost of sales
|
712,319
|
387,244
|
1,610,332
|
962,928
| ||||||||||||
Selling, general and administrative expense
|
61,045 |
34,591 |
154,405 |
90,359 | ||||||||||||
Income from equity in earnings of unconsolidated entities
|
(5,198
|
)
|
(3,148
|
)
|
(9,428
|
)
|
(7,992
|
)
| ||||||||
Gain on sale of assets
|
(14
|
)
|
(65
|
)
|
(87
|
)
|
(118
|
)
| ||||||||
Loss on extinguishment of debt
|
14
|
-
|
711
|
-
| ||||||||||||
Other Income
|
-
|
-
|
-
|
-
| ||||||||||||
Other
|
(827
|
)
|
(150
|
)
|
(7,827
|
)
|
(1,322
|
)
| ||||||||
Paycheck Protection Program forgiveness
|
-
|
-
|
(7,220
|
)
|
-
| |||||||||||
Other Expense
|
-
|
-
|
-
|
-
| ||||||||||||
Other
|
7,560 |
216 |
12,771 |
3,188 | ||||||||||||
Contingent consideration revaluation
|
1,771
|
1,491
|
7,533
|
1,379
| ||||||||||||
Interest expense
|
0
|
747
|
672
|
871
| ||||||||||||
Income before taxes
|
$
|
75,420
|
$
|
40,174
|
$
|
162,048
|
$
|
84,514
| ||||||||
Income tax expense
|
(14,049
|
)
|
-
|
(27,455
|
)
|
-
| ||||||||||
Net and comprehensive income
|
$
|
61,371
|
$
|
40,174
|
$
|
134,593
|
$
|
84,514
| ||||||||
Net and comprehensive income attributable to non-controlling interests
|
(4,068
|
)
|
(1,946
|
)
|
(13,461
|
)
|
(5,420
|
)
| ||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc.
|
$
|
57,303
|
$
|
38,228
|
$
|
121,132
|
$
|
79,094
| ||||||||
Earnings per share(5) | ||||||||||||||||
Basic
|
$
|
0.58
|
$
|
-
|
$
|
1.27
|
$
|
-
| ||||||||
Diluted
|
$
|
0.55
|
$
|
-
|
$
|
1.27
|
$
|
-
| ||||||||
Weighted-average number of shares
| ||||||||||||||||
Basic
|
92,521
|
-
|
92,521
|
-
| ||||||||||||
Diluted
|
103,297
|
-
|
95,314
|
-
| ||||||||||||
Other Financial and Operating Data
| ||||||||||||||||
Active communities at end of period(1) |
205
|
126
|
205
|
126
| ||||||||||||
Home closings
|
1,960
|
1,337
|
4,874
|
3,154
| ||||||||||||
Average sales price for closed homes(2) |
$
|
440,939
|
$
|
343,305
|
$
|
389,094
|
$
|
357,633
| ||||||||
Net new orders
|
1,974
|
1,387
|
6,804
|
4,186
| ||||||||||||
Cancellation rate
|
13.1
|
%
|
12.9
|
%
|
12.2
|
%
|
12.8
|
%
| ||||||||
Backlog (at period end) - homes
|
6,381
|
2,424
|
6,381
|
2,424
| ||||||||||||
Backlog (at period end, in thousands) - value
|
$
|
2,913,170
|
$
|
865,109
|
$
|
2,913,170
|
$
|
865,109
| ||||||||
Gross margin (in thousands)(3) |
$
|
137,749
|
$
|
71,755
|
$
|
306,969
|
$
|
165,048
| ||||||||
Gross margin %(4) |
16.2
|
%
|
15.6
|
%
|
16.0
|
%
|
14.6
|
%
| ||||||||
Net profit margin
|
6.7
|
%
|
8.3
|
%
|
6.3
|
%
|
7.0
|
%
|
Three Months Ended December 31, |
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||
2021 (unaudited) |
2020 (unaudited) |
2021 (unaudited) |
2020 (unaudited) | |||||||||||||||||||||||||||||
Units
|
Average Sales
Price
|
Units 2
|
Average Sales
Price 2
|
Units 3
|
Average Sales
Price 3
|
Units 4
|
Average Sales
Price 4
| |||||||||||||||||||||||||
Home Closings:
| ||||||||||||||||||||||||||||||||
Jacksonville
|
372
|
$
|
397,731
|
520
|
$
|
311,550
|
1,237
|
$
|
363,755
|
1,395
|
$
|
318,134
| ||||||||||||||||||||
Colorado
|
89
|
508,526
|
86
|
457,672
|
230
|
488,502
|
269
|
454,802
| ||||||||||||||||||||||||
Orlando
|
173
|
394,962
|
149
|
360,323
|
604
|
404,035
|
355
|
356,168
| ||||||||||||||||||||||||
DC Metro
|
49
|
682,334
|
84
|
547,710
|
140
|
667,780
|
232
|
545,887
| ||||||||||||||||||||||||
The Carolinas |
326
|
307,025
|
312
|
286,296
|
1,233
|
300,426
|
312
|
286,296
| ||||||||||||||||||||||||
Texas |
689
|
532,243
|
-
|
-
|
689
|
532,243
|
-
|
-
| ||||||||||||||||||||||||
Other (1) |
262
|
391,057
|
186
|
400,613
|
741
|
350,142
|
591
|
391,337
| ||||||||||||||||||||||||
Total
|
1,960
|
$
|
440,939
|
1,337
|
$
|
343,305
|
4,874
|
$
|
389,094
|
3,154
|
$
|
357,633
|
December 31,
|
December 31,
| |||||||
2021
|
2020
| |||||||
Assets
| ||||||||
Cash and cash equivalents
|
$
|
227,227
|
$
|
43,658
| ||||
Restricted cash (VIE amounts of $2,855 and $8,793)
|
54,095
|
49,716
| ||||||
Accounts receivable (VIE amounts of $2,684 and $1,288)
|
33,482
|
16,766
| ||||||
Inventories:
| ||||||||
Construction in process and finished homes
|
961,779
|
396,631
| ||||||
Joint venture owned land and lots
| ||||||||
(VIE amounts of $20,708 and $40,901)
|
21,686
|
40,901
| ||||||
Company owned land and lots
|
83,197
|
46,840
| ||||||
Lot deposits
|
241,406
|
66,272
| ||||||
Equity method investments
|
15,967
|
4,545
| ||||||
Property and equipment, net
|
6,789
|
4,309
| ||||||
Operating lease right-of-use assets
|
19,359
|
14,219
| ||||||
Finance lease right-of-use assets
|
140
|
336
| ||||||
Intangible assets, net of amortization
|
9,140
|
2,660
| ||||||
Goodwill
|
171,927
|
28,566
| ||||||
Deferred tax asset
|
4,232
|
-
| ||||||
Other assets (VIE amounts of $1,289 and $1,288)
|
43,822
|
18,262
| ||||||
Total assets
|
$
|
1,894,248
|
$
|
733,680
| ||||
Liabilities
| ||||||||
Accounts payable (VIE amounts of $656 and $1,316)
|
$
|
113,498
|
$
|
37,419
| ||||
Accrued expenses (VIE amounts of $7,284 and $9,977)
|
139,368
|
67,401
| ||||||
Customer deposits
|
177,685
|
59,392
| ||||||
Construction lines of credit
|
760,000
|
289,879
| ||||||
Notes payable (VIE amounts of $2,697 and $8,821)
|
3,291
|
29,653
| ||||||
Operating lease liabilities
|
19,826
|
14,411
| ||||||
Finance lease liabilities
|
140
|
345
| ||||||
Contingent consideration
|
124,056
|
23,158
| ||||||
Total liabilities
|
$
|
1,337,864
|
$
|
521,657
| ||||
Commitments and contingencies
| ||||||||
Mezzanine Equity
| ||||||||
Preferred mezzanine equity
|
155,220
|
55,638
| ||||||
Common mezzanine equity
|
-
|
20,593
| ||||||
Total mezzanine equity
|
$
|
155,220
|
$
|
76,231
| ||||
Members' Equity
| ||||||||
Common members' equity
|
-
|
103,853
| ||||||
Total members' equity
|
$
|
-
|
$
|
103,853
| ||||
Stockholders' Equity - Dream Finders Homes, Inc.
| ||||||||
Class A common stock, $0.01 per share, 289,000
| ||||||||
authorized, 32,295 outstanding
|
323
|
-
| ||||||
Class B common stock, $0.01 per share, 61,000
| ||||||||
authorized, 60,226 outstanding
|
602
|
-
| ||||||
Additional paid-in capital
|
257,963
|
-
| ||||||
Retained earnings
|
118,194
|
-
| ||||||
Non-controlling interests
|
24,081
|
31,939
| ||||||
Total mezzanine equity, members' equity and stockholders' equity
|
556,383
|
212,023
| ||||||
Total liabilities, mezzanine equity, members' equity and stockholders' equity
|
$
|
1,894,248
|
$
|
733,680
|
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Disclaimer
Dream Finders Homes Inc. published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 11:47:12 UTC.