Business Wire | Nov 2, 2020 06:01AM EST

The New Home Company Reports 2020 Third Quarter Results

Nov. 02, 2020

ALISO VIEJO, Calif.--(BUSINESS WIRE)--Nov. 02, 2020--The New Home Company Inc. (NYSE: NWHM) today announced results for the 2020 third quarter.

Third Quarter 2020 Financial Results

* Net income of $1.2 million, or $0.06 per diluted share, compared to a net loss of $4.6 million, or $(0.23) per diluted share, for the 2019 third quarter * Homes sales revenue of $117.4 million as compared to $118.8 million for the 2019 third quarter New home deliveries of 157 as compared to 124 in the 2019 third quarter, a 27% increase * Home sales gross margin of 14.2% as compared to 9.5% for the 2019 third quarter A 320 basis point improvement over the 2019 third quarter gross margin of 11.0%* excluding $1.7 million of impairments * 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 * Homes in backlog of 329 homes as compared to 207 homes at the end of the 2019 third quarter, a 59% increase * Cash flow from operations of $40.0 million and cash and cash equivalents of $126.4 million as of September 30, 2020 * Debt-to-capital ratio of 59.4% and a net debt-to-capital ratio of 45.1%*, a 980 basis point improvement from the 2019 third quarter

"The New Home Company made significant progress during the third quarter through strong sales, improved gross margins and solid operating cash flows," remarked Larry Webb, Executive Chairman of The New Home Company. "We experienced strong monthly sequential order growth during the quarter with September generating the highest monthly order total in our Company's history. Our monthly sales absorption rate for the quarter was up 75% to 3.5 homes per community, with our Arizona operation leading the way at a sales absorption rate of 4.1 homes per community driven by seven recently opened communities. We expect these new communities to begin contributing to our profitability in the fourth quarter and have a meaningful impact on gross margin thereafter. The 102% increase in third quarter net orders also led to a 59% increase in our ending backlog and has set us up for a solid finish to the year."

"Our expansion into more affordably priced communities has been a key driver for gross margin improvement in the third quarter, and we see similar margins for homes in our backlog," added Leonard Miller, President and Chief Executive Officer. "Faster inventory turns and price increases at nearly all of our communities contributed to higher gross margins, especially at our more affordably priced communities. This margin growth coupled with $40 million in operating cash flow and a 45.1% net debt-to-capital ratio at the end the quarter provides us with a strong foundation moving forward."

Mr. Miller concluded, "We made further progress in strengthening our balance sheet in October through the issuance of $250 million of new 7.25% senior unsecured notes due 2025 to fund, together with cash on hand, the redemption of all of the Company's existing senior notes due 2022. We also entered into a new $60 million unsecured credit facility due April 2023. The refinance of our senior notes and our new credit facility extend our debt maturity profile and give us the flexibility to replenish our land positions, continue our product offering expansion and improve our operating results. With stronger operations and longer-term capital to reinvest in our land pipeline, we are optimistic about the future of The New Home Company and our ability to generate positive shareholder value."

Third Quarter 2020 Operating Results

Total revenues for the 2020 third quarter were $130.8 million compared to $165.6 million in the prior year period, including $24.6 million of land sales revenue in the 2019 third quarter. During the 2020 third quarter, the Company generated pretax income of $1.5 million compared to a $4.8 million pretax loss in the prior year period. The 2019 third quarter included aggregate charges of $5.1 million, which consisted of $1.7 million of inventory impairment charges related to homes sales and $3.4 million of charges related to land sales during the 2019 third quarter. Net income attributable to the Company for the 2020 third quarter was $1.2 million, or $0.06 per diluted share, compared to a net loss of $4.6 million, or ($0.23) per diluted share, in the prior year period.

Wholly Owned Projects

Net new home orders for the 2020 third quarter were 251 as compared to 124 in the prior year which represented a 102% increase. The significant increase was driven by a 75% improvement in our monthly sales absorption rate to 3.5 per community as compared to 2.0 per community in the prior year period. Cancellation rate for the 2020 third quarter was 6% as compared to 11% in the prior year. We ended the 2020 third quarter with 25 active selling communities, a 14% increase compared to the prior year.

Homes in backlog totaled 329 at the end of the 2020 third quarter, a 59% increase compared to the 2019 third quarter. The dollar value of homes in backlog increased 11% to $207.1 million compared to $185.8 million. The average selling price of homes in backlog decreased to $630,000 from $897,000 a year ago as we continue to expand our product portfolio to include more affordably priced communities.

Home sales revenue for the 2020 third quarter was approximately $117.4 million, as compared to $118.8 million for the 2019 third quarter. The slight year-over-year decrease in home sales revenue was largely the result of a 22% decrease in average selling price driven by our strategic shift to more-affordable product, which was partially offset by a 27% increase in new home deliveries. The increase in new home deliveries resulted from a higher number of homes in backlog at the beginning of the 2020 third quarter coupled with a higher backlog conversion rate of 67% for the 2020 third quarter, as compared to 60% for the 2019 third quarter. The average sales price of our home deliveries for the 2020 third quarter was approximately $748,000, as compared to $958,000 for the 2019 third quarter.

Gross margin from home sales for the 2020 third quarter was 14.2% compared to 9.5% for the prior year period, which included $1.7 million of home sales inventory impairments for the 2019 third quarter. Excluding inventory impairment charges in the 2019 third quarter, the Company's gross margin was 11.0%* in the prior year period. The 320-basis point improvement before impairments was primarily due to a product mix shift to more affordable product, which generally have higher gross margins, and to a lesser extent, fewer deliveries from lower margin, move-up condominium communities compared to the 2019 third quarter. These items were partially offset by a 60 basis point increase in interest costs included in cost of home sales as a percentage of home sales revenue. Adjusted homebuilding gross margin, which excludes interest in cost of home sales and impairment charges, was 20.0%* for the 2020 third quarter as compared to 16.2%* in the prior year period.

The Company's SG&A expense ratio as a percentage of home sales revenue for the 2020 third quarter was 12.3% compared to 11.1% in the prior year period. The increase in the SG&A rate was primarily due to higher commissions, incentive compensation and professional fees, and to a lesser extent, a $0.3 million decrease in G&A expenses that were allocated to our fee building segment as compared to the 2019 third quarter. These items were partially offset by lower amortization of capitalized model costs.

Fee Building Projects

Fee building revenue for the 2020 third quarter was $13.4 million, compared to $22.3 million in the prior year period. Fee building gross margin for the 2020 third quarter was 2.0%, or $0.3 million, compared to 2.9%, or $0.6 million, in the prior year period. The reduction in fee building gross margin was primarily due to lower fee building activity in Irvine, California.

Unconsolidated Joint Ventures (JVs)

The Company incurred a joint venture loss of $98,000 during the 2020 third quarter compared to a loss of $63,000 in the prior year period. The Company's joint venture activities continue to wind down. During the quarter, the Company finalized the sale of its interest in its Bedford land development joint venture and continued to actively pursue an exit from its Russell Ranch land development joint venture in Folsom, California.

Interest Expense

The Company expensed $1.1 million of interest costs directly to interest expense during the 2020 third quarter in accordance with Accounting Standards Codification 835, as its qualified assets were less than its qualified debt.

Balance Sheet and Liquidity

The Company generated $40.0 million in operating cash flows during the 2020 third quarter and ended the quarter with $126.4 million in cash and cash equivalents. During the quarter, the Company repurchased $5.2 million in principal of its senior notes at a discount. As of the end of the third quarter, the Company had no borrowings outstanding under its revolving credit facility and had $290.3 million in debt outstanding related to its senior notes due 2022. The Company had a debt-to-capital ratio of 59.4% and a net debt-to-capital ratio of 45.1%*, a 980 basis point year-over-year improvement.

On October 28, 2020, the Company completed its sale of $250 million of 7.25% senior notes due October 2025 (the "offering") to refinance its existing senior notes due April 2022. Net proceeds from the offering plus $54.4 million of cash on hand were remitted to the trustee of the senior notes due 2022 and the obligations under the senior notes due 2022 were satisfied and discharged. In addition, on October 30, 2020, the Company entered into a new $60 million senior unsecured revolving credit facility. The new facility replaced the Company's previous unsecured credit facility and has substantially similar terms and covenants as the previous credit facility and has a maturity date of April 30, 2023.

The Company owned or controlled 2,154 lots through its wholly owned operations, of which 877 lots, or 41%, were controlled through option contracts.

Guidance

The Company's current estimate for the 2020 fourth quarter is as follows:

* Home sales revenue of $115 - $125 million * Fee building revenue of $5 - $8 million * Home sales gross margin of 13.8% to 14.2%

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 Monday, November 2, 2020 to review third quarter results and discuss recent events, forward-looking statements, and factors that may affect the Company's future results. 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 December 2, 2020 and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the pass code 13711226.

* Net debt-to-capital ratio, homebuilding gross margin before impairments and adjusted homebuilding gross margin (or homebuilding gross margin excluding impairments and interest in cost of home sales) 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."

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; 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended September Nine Months Ended September 30, 30,

2020 2019 2020 2019

(Dollars in thousands, except per share amounts)

Revenues:

Home sales $ 117,426 $ 118,781 $ 290,842 $ 358,431

Land sales - 24,573 157 24,573

Fee building,including 13,418 22,262 70,838 64,209 management fees

130,844 165,616 361,837 447,213

Cost of Sales:

Home sales 100,775 105,763 251,713 315,857

Home sales - 1,700 19,000 1,700 impairments

Land sales - 26,078 157 26,078

Land sales - 1,900 - 1,900 impairment

Fee building 13,150 21,615 69,632 62,653

113,925 157,056 340,502 408,188

Gross Margin:

Home sales 16,651 11,318 20,129 40,874

Land sales - (3,405 ) - (3,405 )

Fee building 268 647 1,206 1,556

16,919 8,560 21,335 39,025



Selling andmarketing (8,056 ) (7,828 ) (21,908 ) (26,190 )expenses

General andadministrative (6,386 ) (5,361 ) (19,301 ) (18,593 )expenses

Equity in netincome (loss)of (98 ) (63 ) (21,997 ) 306 unconsolidatedjoint ventures

Interest (1,099 ) - (3,088 ) - expense

Projectabandonment 33 (10 ) (14,097 ) (29 )(costs)recoveries, net

Gain on earlyextinguishment 191 - 770 969 of debt

Other income 24 (76 ) 179 (352 )(expense), net

Pretax income 1,528 (4,778 ) (58,107 ) (4,864 )(loss)

(Provision)benefit for (390 ) 172 26,476 (138 )income taxes

Net income 1,138 (4,606 ) (31,631 ) (5,002 )(loss)

Net (income)lossattributable to 50 (18 ) 50 (37 )non-controllinginterest

Net income(loss)attributable to $ 1,188 $ (4,624 ) $ (31,581 ) $ (5,039 )The New HomeCompany Inc.



Earnings (loss)per shareattributable to The New HomeCompany Inc.:

Basic $ 0.07 $ (0.23 ) $ (1.68 ) $ (0.25 )

Diluted $ 0.06 $ (0.23 ) $ (1.68 ) $ (0.25 )

Weightedaverage shares outstanding:

Basic 18,231,954 20,096,969 18,839,551 20,051,751

Diluted 18,332,601 20,096,969 18,839,551 20,051,751

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

2020

2019

(Dollars in thousands, except per share amounts)

(Unaudited)

Assets

Cash and cash equivalents

$

126,375

$

79,314

Restricted cash

408

117

Contracts and accounts receivable

9,288

15,982

Due from affiliates

114

238

Real estate inventories

341,207

433,938

Investment in and advances to unconsolidated joint ventures

5,957

30,217

Deferred tax asset, net

16,222

17,503

Other assets

46,769

25,880

Total assets

$

546,340

$

603,189

Liabilities and equity

Accounts payable

$

17,596

$

25,044

Accrued expenses and other liabilities

39,777

40,554

Senior notes, net

290,272

304,832

Total liabilities

347,645

370,430

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, 18,231,954 and 20,096,969, shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively

182

201

Additional paid-in capital

191,510

193,862

Retained earnings

7,003

38,584

Total stockholders' equity

198,695

232,647

Non-controlling interest in subsidiary

-

112

Total equity

198,695

232,759

Total liabilities and equity

$

546,340

$

603,189

CONSOLIDATED BALANCE SHEETS

September December 30, 31,

2020 2019

(Dollars in thousands, except per share amounts)

(Unaudited)

Assets

Cash and cash equivalents $ 126,375 $ 79,314

Restricted cash 408 117

Contracts and accounts receivable 9,288 15,982

Due from affiliates 114 238

Real estate inventories 341,207 433,938

Investment in and advances to unconsolidated joint 5,957 30,217 ventures

Deferred tax asset, net 16,222 17,503

Other assets 46,769 25,880

Total assets $ 546,340 $ 603,189



Liabilities and equity

Accounts payable $ 17,596 $ 25,044

Accrued expenses and other liabilities 39,777 40,554

Senior notes, net 290,272 304,832

Total liabilities 347,645 370,430

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 sharesauthorized, 18,231,954 and 20,096,969, shares 182 201 issued and outstanding as of September 30, 2020 andDecember 31, 2019, respectively

Additional paid-in capital 191,510 193,862

Retained earnings 7,003 38,584

Total stockholders' equity 198,695 232,647

Non-controlling interest in subsidiary - 112

Total equity 198,695 232,759

Total liabilities and equity $ 546,340 $ 603,189

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended

September 30,

2020

2019

(Dollars in thousands)

Operating activities:

Net loss

$

(31,631

)

$

(5,002

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Deferred taxes

1,281

-

Amortization of stock-based compensation

1,651

1,661

Distributions of earnings from unconsolidated joint ventures

110

319

Inventory impairments

19,000

3,600

Project abandonment costs

14,097

29

Equity in net (income) loss of unconsolidated joint ventures

21,997

(306

)

Depreciation and amortization

5,225

7,008

Gain on early extinguishment of debt

(770

)

(969

)

Net changes in operating assets and liabilities:

Contracts and accounts receivable

6,694

5,714

Due from affiliates

124

790

Real estate inventories

65,816

62,953

Other assets

(31,087

)

(2,390

)

Accounts payable

(7,448

)

(15,832

)

Accrued expenses and other liabilities

(3,043

)

1,016

Net cash provided by operating activities

62,016

58,591

Investing activities:

Purchases of property and equipment

(259

)

(26

)

Contributions and advances to unconsolidated joint ventures

(4,362

)

(5,083

)

Distributions of capital and repayment of advances from unconsolidated joint ventures

9,135

6,873

Net cash provided by investing activities

4,514

1,764

Financing activities:

Borrowings from credit facility

-

40,000

Repayments of credit facility

-

(89,500

)

Repurchases of senior notes

(14,825

)

(10,856

)

Proceeds from note payable

7,036

-

Repayment of note payable

(7,036

)

-

Payment of debt issuance costs

(269

)

-

Non-controlling interest distribution

(62

)

-

Repurchases of common stock

(3,718

)

(1,042

)

Tax withholding paid on behalf of employees for stock awards

(304

)

(488

)

Net cash used in financing activities

(19,178

)

(61,886

)

Net increase (decrease) in cash, cash equivalents and restricted cash

47,352

(1,531

)

Cash, cash equivalents and restricted cash - beginning of period

79,431

42,542

Cash, cash equivalents and restricted cash - end of period

$

126,783

$

41,011

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended

September 30,

2020 2019

(Dollars in thousands)

Operating activities:

Net loss $ (31,631 ) $ (5,002 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Deferred taxes 1,281 -

Amortization of stock-based compensation 1,651 1,661

Distributions of earnings from unconsolidated joint 110 319 ventures

Inventory impairments 19,000 3,600

Project abandonment costs 14,097 29

Equity in net (income) loss of unconsolidated joint 21,997 (306 )ventures

Depreciation and amortization 5,225 7,008

Gain on early extinguishment of debt (770 ) (969 )

Net changes in operating assets and liabilities:

Contracts and accounts receivable 6,694 5,714

Due from affiliates 124 790

Real estate inventories 65,816 62,953

Other assets (31,087 ) (2,390 )

Accounts payable (7,448 ) (15,832 )

Accrued expenses and other liabilities (3,043 ) 1,016

Net cash provided by operating activities 62,016 58,591

Investing activities:

Purchases of property and equipment (259 ) (26 )

Contributions and advances to unconsolidated joint (4,362 ) (5,083 )ventures

Distributions of capital and repayment of advances 9,135 6,873 from unconsolidated joint ventures

Net cash provided by investing activities 4,514 1,764

Financing activities:

Borrowings from credit facility - 40,000

Repayments of credit facility - (89,500 )

Repurchases of senior notes (14,825 ) (10,856 )

Proceeds from note payable 7,036 -

Repayment of note payable (7,036 ) -

Payment of debt issuance costs (269 ) -

Non-controlling interest distribution (62 ) -

Repurchases of common stock (3,718 ) (1,042 )

Tax withholding paid on behalf of employees for (304 ) (488 )stock awards

Net cash used in financing activities (19,178 ) (61,886 )

Net increase (decrease) in cash, cash equivalents 47,352 (1,531 )and restricted cash

Cash, cash equivalents and restricted cash - 79,431 42,542 beginning of period

Cash, cash equivalents and restricted cash - end of $ 126,783 $ 41,011 period

KEY FINANCIAL AND OPERATING DATA

(Dollars in thousands)

(Unaudited)

New Home Deliveries:

KEY FINANCIAL AND OPERATING DATA

(Dollars in thousands)

(Unaudited)

New Home Deliveries:

Three Months Ended September 30,

2020

2019

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

71

$

55,480

$

781

66

$

63,533

$

963

8

%

(13

)%

(19

)%

Northern California

81

53,709

663

45

40,146

892

80

%

34

%

(26

)%

Arizona

5

8,237

1,647

13

15,102

1,162

(62

)%

(45

)%

42

%

Total

157

$

117,426

$

748

124

$

118,781

$

958

27

%

(1

)%

(22

)%

Three Months Ended September 30,

2020 2019 % Change

Dollar Average Dollar Average Dollar Average Homes Homes Homes Value Price Value Price Value Price

Southern 71 $ 55,480 $ 781 66 $ 63,533 $ 963 8 % (13 ) (19 )California % %

Northern 81 53,709 663 45 40,146 892 80 % 34 % (26 )California %

Arizona 5 8,237 1,647 13 15,102 1,162 (62 ) (45 ) 42 % % %

Total 157 $ 117,426 $ 748 124 $ 118,781 $ 958 27 % (1 ) (22 ) % %

Nine Months Ended September 30,

2020

2019

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

189

$

159,937

$

846

218

$

223,660

$

1,026

(13

)%

(28

)%

(18

)%

Northern California

158

104,129

659

126

96,181

763

25

%

8

%

(14

)%

Arizona

20

26,776

1,339

30

38,590

1,286

(33

)%

(31

)%

4

%

Total

367

$

290,842

$

792

374

$

358,431

$

958

(2

)%

(19

)%

(17

)%

Nine Months Ended September 30,

2020 2019 % Change

Dollar Average Dollar Average Dollar Average Homes Homes Homes Value Price Value Price Value Price

Southern 189 $ 159,937 $ 846 218 $ 223,660 $ 1,026 (13 ) (28 ) (18 )California % % %

Northern 158 104,129 659 126 96,181 763 25 % 8 % (14 )California %

Arizona 20 26,776 1,339 30 38,590 1,286 (33 ) (31 ) 4 % % %

Total 367 $ 290,842 $ 792 374 $ 358,431 $ 958 (2 ) (19 ) (17 ) % % %

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

% Change

2020

2019

% Change

Net New Home Orders:

Southern California

77

68

13

%

214

216

(1

)%

Northern California

105

52

102

%

233

150

55

%

Arizona

69

4

1625

%

100

24

317

%

Total

251

124

102

%

547

390

40

%

Selling Communities at End of Period:

Southern California

8

11

(27

)%

Northern California

9

9

-

%

Arizona

8

2

300

%

Total

25

22

14

%

Average Selling Communities:

Southern California

8

11

(27

)%

10

12

(17

)%

Northern California

10

8

25

%

10

8

25

%

Arizona

6

2

200

%

3

2

50

%

Total

24

21

14

%

23

22

5

%

Monthly Sales Absorption Rate per Community (1):

Southern California

3.1

2.1

48

%

2.4

2.0

20

%

Northern California

3.6

2.3

57

%

2.6

2.2

18

%

Arizona

4.1

0.7

486

%

3.2

1.3

146

%

Total

3.5

2.0

75

%

2.6

2.0

30

%

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 % 2020 2019 % Change Change

Net New Home Orders:

Southern 77 68 13 % 214 216 (1 )California %

Northern 105 52 102 % 233 150 55 %California

Arizona 69 4 1625 % 100 24 317 %

Total 251 124 102 % 547 390 40 %



SellingCommunities at End of Period:

Southern 8 11 (27 )California %

Northern 9 9 - %California

Arizona 8 2 300 %

Total 25 22 14 %



Average Selling Communities:

Southern 8 11 (27 ) 10 12 (17 )California % %

Northern 10 8 25 % 10 8 25 %California

Arizona 6 2 200 % 3 2 50 %

Total 24 21 14 % 23 22 5 %



Monthly SalesAbsorption Rate per Community(1):

Southern 3.1 2.1 48 % 2.4 2.0 20 %California

Northern 3.6 2.3 57 % 2.6 2.2 18 %California

Arizona 4.1 0.7 486 % 3.2 1.3 146 %

Total 3.5 2.0 75 % 2.6 2.0 30 %



(1)

Monthly sales absorption represents the number of net new home orders divided by the number of average selling communities for the period.

(1) Monthly sales absorption represents the number of net new home orders divided by the number of average selling communities for the period.

Backlog:

As of September 30,

2020

2019

% Change

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Homes

Dollar

Value

Average

Price

Southern California

97

$

77,214

$

796

88

$

91,538

$

1,040

10

%

(16

)%

(23

)%

Northern California

141

93,336

662

92

64,889

705

53

%

44

%

(6

)%

Arizona

91

36,588

402

27

29,351

1,087

237

%

25

%

(63

)%

Total

329

$

207,138

$

630

207

$

185,778

$

897

59

%

11

%

(30

)%

Backlog: As of September 30,

2020 2019 % Change

Dollar Average Dollar Average Dollar Average Homes Homes Homes Value Price Value Price Value Price

Southern 97 $ 77,214 $ 796 88 $ 91,538 $ 1,040 10 % (16 ) (23 )California % %

Northern 141 93,336 662 92 64,889 705 53 % 44 % (6 )California %

Arizona 91 36,588 402 27 29,351 1,087 237 % 25 % (63 ) %

Total 329 $ 207,138 $ 630 207 $ 185,778 $ 897 59 % 11 % (30 ) %

Lots Owned and Controlled:

As of September 30,

2020

2019

% Change

Lots Owned

Southern California

347

537

(35

)%

Northern California

506

661

(23

)%

Arizona

424

281

51

%

Total

1,277

1,479

(14

)%

Lots Controlled (1)

Southern California

394

482

(18

)%

Northern California

253

490

(48

)%

Arizona

230

477

(52

)%

Total

877

1,449

(39

)%

Lots Owned and Controlled - Wholly Owned

2,154

2,928

(26

)%

Fee Building Lots (2)

107

1,173

(91

)%

Lots Owned and Controlled: As of September 30,

2020 2019 % Change

Lots Owned

Southern California 347 537 (35 )%

Northern California 506 661 (23 )%

Arizona 424 281 51 %

Total 1,277 1,479 (14 )%

Lots Controlled (1)

Southern California 394 482 (18 )%

Northern California 253 490 (48 )%

Arizona 230 477 (52 )%

Total 877 1,449 (39 )%

Lots Owned and Controlled - Wholly Owned 2,154 2,928 (26 )%

Fee Building Lots (2) 107 1,173 (91 )%

Includes lots that we control under purchase and sale agreements or option(1) agreements with nonrefundable deposits 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 general contracting or construction management services.

(2) Lots owned by third party property owners for which we perform general contracting or construction management services.

Other Financial Data:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Interest incurred

$

5,831

$

6,978

$

18,361

$

22,345

Adjusted EBITDA(1)

$

11,629

$

8,570

$

25,004

$

26,516

Adjusted EBITDA margin percentage (1)

8.9

%

5.2

%

6.9

%

5.9

%

Other Financial Data: Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Interest incurred $ 5,831 $ 6,978 $ 18,361 $ 22,345

Adjusted EBITDA(1) $ 11,629 $ 8,570 $ 25,004 $ 26,516

Adjusted EBITDA margin 8.9 % 5.2 % 6.9 % 5.9 %percentage (1)

LTM(2) Ended September 30,

2020

2019

Interest incurred

$

24,835

$

30,124

Adjusted EBITDA(1)

$

39,918

$

44,933

Adjusted EBITDA margin percentage (1)

6.8

%

6.6

%

Ratio of Adjusted EBITDA to total interest incurred(1)

1.6x

1.5x

LTM(2) Ended September 30,

2020 2019



Interest incurred $ 24,835 $ 30,124

Adjusted EBITDA(1) $ 39,918 $ 44,933

Adjusted EBITDA margin percentage (1) 6.8 % 6.6 %

Ratio of Adjusted EBITDA to total interest incurred 1.6x 1.5x (1)

September 30,

December 31,

2020

2019

Ratio of debt-to-capital

59.4

%

56.7

%

Ratio of net debt-to-capital(1)

45.1

%

49.2

%

Ratio of debt to LTM(2) Adjusted EBITDA(1)(3)

7.3x

7.4x

Ratio of net debt to LTM(2) Adjusted EBITDA(1)(3)

4.1x

5.4x

Ratio of cash and inventory to debt

1.6x

1.7x

September December 31, 30,

2020 2019

Ratio of debt-to-capital 59.4 % 56.7 %

Ratio of net debt-to-capital(1) 45.1 % 49.2 %

Ratio of debt to LTM(2) Adjusted EBITDA(1)(3) 7.3x 7.4x

Ratio of net debt to LTM(2) Adjusted EBITDA(1) 4.1x 5.4x (3)

Ratio of cash and inventory to debt 1.6x 1.7x

Adjusted EBITDA, Adjusted EBITDA margin percentage, ratio of Adjusted EBITDA to total interest incurred, ratio of net debt-to-capital, ratio of(1) debt to LTM Adjusted EBITDA and ratio of net debt to LTM Adjusted EBITDA 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.

Due to an inadvertent oversight in prior year periods, interest amortized(3) to certain inventory impairment charges and to equity in net income (loss) of unconsolidated joint ventures was duplicated in the Adjusted EBITDA calculation. Ratios for the prior period have been corrected.

KEY FINANCIAL AND OPERATING DATA - UNCONSOLIDATED JOINT VENTURES

(Dollars in thousands)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

% Change

2020

2019

% Change

Financial Data - Unconsolidated Joint Ventures:

Home sales revenue

$

17,585

$

22,155

(21

)%

$

63,331

$

110,849

(43

)%

Land sales revenue

-

13,654

(100

)%

16,191

26,325

(38

)%

Total revenues

$

17,585

$

35,809

(51

)%

$

79,522

$

137,174

(42

)%

Net income (loss)

$

101

$

(262

)

139

%

$

3,081

$

2,041

51

%

Operating Data - Unconsolidated Joint Ventures:

New home orders

4

23

(83

)%

19

87

(78

)%

New homes delivered

17

26

(35

)%

67

116

(42

)%

Average selling price of homes delivered

$

1,034

$

852

21

%

$

945

$

956

(1

)%

Selling communities at end of period

1

4

(75

)%

Backlog homes (dollar value)

$

1,850

$

44,351

(96

)%

Backlog (homes)

1

47

(98

)%

Average sales price of backlog

$

1,850

$

944

96

%

Homebuilding lots owned and controlled

7

95

(93

)%

Land development lots owned and controlled

634

1,846

(66

)%

Total lots owned and controlled

641

1,941

(67

)%

KEY FINANCIAL AND OPERATING DATA - UNCONSOLIDATED JOINT VENTURES

(Dollars in thousands)

(Unaudited)

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 % Change 2020 2019 % Change

Financial Data-Unconsolidated JointVentures:

Home sales $ 17,585 $ 22,155 (21 ) $ 63,331 $ 110,849 (43 )revenue % %

Land sales - 13,654 (100 ) 16,191 26,325 (38 )revenue % %

Total revenues $ 17,585 $ 35,809 (51 ) $ 79,522 $ 137,174 (42 ) % %



Net income $ 101 $ (262 ) 139 % $ 3,081 $ 2,041 51 %(loss)



Operating Data-Unconsolidated JointVentures:

New home 4 23 (83 ) 19 87 (78 )orders % %

New homes 17 26 (35 ) 67 116 (42 )delivered % %

Averageselling price $ 1,034 $ 852 21 % $ 945 $ 956 (1 )of homes %delivered



Selling )communities at 1 4 (75 %end of period

Backlog homes $ 1,850 $ 44,351 (96 )(dollar value) %

Backlog 1 47 (98 )(homes) %

Average salesprice of $ 1,850 $ 944 96 %backlog



Homebuilding )lots owned and 7 95 (93 %controlled

Landdevelopment 634 1,846 (66 )lots owned and %controlled

Total lots )owned and 641 1,941 (67 %controlled

(1)

Land sales revenue for the nine months ended September 30, 2020 includes $7.0 million of revenues related to the sales of a mixed use building sold by a homebuilding joint venture.

RECONCILIATION 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 measures, homebuilding gross margin before impairments, and adjusted homebuilding gross margin (or homebuilding gross margin excluding home sales impairment charges and interest in cost of home sales). We believe this information is meaningful, as it isolates the impact home sales impairments and leverage have on homebuilding gross margin and provides investors better comparisons with our competitors, who adjust gross margins in a similar fashion.

Land sales revenue for the nine months ended September 30, 2020 includes(1) $7.0 million of revenues related to the sales of a mixed use building sold by a homebuilding joint venture.

RECONCILIATION 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 measures, homebuilding gross margin before impairments, and adjusted homebuilding gross margin (or homebuilding gross margin excluding home sales impairment charges and interest in cost of home sales). We believe this information is meaningful, as it isolates the impact home sales impairments and leverage have on homebuilding gross margin and provides investors better comparisons with our competitors, who adjust gross margins in a similar fashion.

Three Months Ended September 30, Nine Months Ended September 30,

2020 % 2019 % 2020 % 2019 %

(Dollars in thousands)

Home sales $ 117,426 100.0 % $ 118,781 100.0 % $ 290,842 100.0 % $ 358,431 100.0 %revenue

Cost of home 100,775 85.8 % 107,463 90.5 % 270,713 93.1 % 317,557 88.6 %sales

Homebuilding 16,651 14.2 % 11,318 9.5 % 20,129 6.9 % 40,874 11.4 %gross margin

Add: Home sales - 0.0 % 1,700 1.5 % 19,000 6.6 % 1,700 0.5 %impairment

Homebuildinggross margin 16,651 14.2 % 13,018 11.0 % 39,129 13.5 % 42,574 11.9 %beforeimpairments

Add: Interestin cost of home 6,875 5.8 % 6,167 5.2 % 17,622 6.0 % 17,320 4.8 %sales

Adjustedhomebuilding $ 23,526 20.0 % $ 19,185 16.2 % $ 56,751 19.5 % $ 59,894 16.7 %gross margin

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.

September December 30, 31,

2020 2019

(Dollars in thousands)

Total debt, net of unamortized discount, premium and $ 290,272 $ 304,832 debt issuance costs

Equity, exclusive of non-controlling interest 198,695 232,647

Total capital $ 488,967 $ 537,479

Ratio of debt-to-capital(1) 59.4 % 56.7 %



Total debt, net of unamortized discount, premium and $ 290,272 $ 304,832 debt issuance costs

Less: Cash, cash equivalents and restricted cash 126,783 79,431

Net debt 163,489 225,401

Equity, exclusive of non-controlling interest 198,695 232,647

Total capital $ 362,184 $ 458,048

Ratio of net debt-to-capital(2) 45.1 % 49.2 %

(1)

The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt, net of unamortized discount, premium and debt issuance costs by total capital (the sum of total debt, net of unamortized discount, premium and debt issuance costs plus equity, exclusive of non-controlling interest).

(2)

The ratio of net debt-to-capital is computed as the quotient obtained by dividing net debt (which is total debt, net of unamortized discount, premium and debt issuance costs less cash, cash equivalents and restricted cash to the extent necessary to reduce the debt balance to zero) by total capital, exclusive of non-controlling 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 debt, 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.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)(Unaudited)

Adjusted EBITDA, Adjusted EBITDA margin percentage, the ratio of Adjusted EBITDA to total interest incurred, the ratio of debt to Adjusted EBITDA, and the ratio of net debt to Adjusted EBITDA 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 (excluding amounts included in impairment charges), (d) severance charges (e) noncash impairment charges and abandoned project costs, (f) gain on early extinguishment of debt (g) depreciation and amortization, (h) amortization of stock-based compensation and (i) 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. The ratio of debt to Adjusted EBITDA is calculated by dividing debt at the period end by Adjusted EBITDA for a given period. The ratio of net debt to Adjusted EBITDA is calculated by dividing debt at the period end less cash, cash equivalents and restricted cash by Adjusted EBITDA 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, level of impairments and other non-recurring items. Due to the significance of the GAAP components excluded, Adjusted EBITDA should not be considered in isolation or as an alternative to net income (loss), cash flows from operations or any other performance measure prescribed by GAAP. A reconciliation of net income (loss) to Adjusted EBITDA, and the calculations of Adjusted EBITDA margin percentage, the ratio of Adjusted EBITDA to total interest incurred, the ratio of debt to Adjusted EBITDA, and the ratio of net debt to Adjusted EBITDA are provided in the following table.

The ratio of debt-to-capital is computed as the quotient obtained by dividing total debt, net of unamortized discount, premium and debt issuance(1) costs by total capital (the sum of total debt, net of unamortized discount, premium and debt issuance costs plus equity, exclusive of non-controlling interest).



The ratio of net debt-to-capital is computed as the quotient obtained by dividing net debt (which is total debt, net of unamortized discount, premium and debt issuance costs less cash, cash equivalents and restricted cash to the extent necessary to reduce the debt balance to zero) by total capital, exclusive of non-controlling 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(2) 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 debt, 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.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)(Unaudited)

Adjusted EBITDA, Adjusted EBITDA margin percentage, the ratio of Adjusted EBITDA to total interest incurred, the ratio of debt to Adjusted EBITDA, and the ratio of net debt to Adjusted EBITDA 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 (excluding amounts included in impairment charges), (d) severance charges (e) noncash impairment charges and abandoned project costs, (f) gain on early extinguishment of debt (g) depreciation and amortization, (h) amortization of stock-based compensation and (i) 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. The ratio of debt to Adjusted EBITDA is calculated by dividing debt at the period end by Adjusted EBITDA for a given period. The ratio of net debt to Adjusted EBITDA is calculated by dividing debt at the period end less cash, cash equivalents and restricted cash by Adjusted EBITDA 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, level of impairments and other non-recurring items. Due to the significance of the GAAP components excluded, Adjusted EBITDA should not be considered in isolation or as an alternative to net income (loss), cash flows from operations or any other performance measure prescribed by GAAP. A reconciliation of net income (loss) to Adjusted EBITDA, and the calculations of Adjusted EBITDA margin percentage, the ratio of Adjusted EBITDA to total interest incurred, the ratio of debt to Adjusted EBITDA, and the ratio of net debt to Adjusted EBITDA are provided in the following table.

Three Months Ended Nine Months Ended LTM(1) Ended December

September 30, September 30, September 30, 31,

2020 2019 2020 2019 2020 2019 2019

(Dollars in thousands)

Net income $ 1,138 $ (4,606 ) $ (31,631 ) $ (5,002 ) $ (34,630 ) $ (21,152 ) $ (8,001 )(loss)

Add:

Interestamortized tocost of salesexcluding 7,974 7,097 20,710 18,250 29,694 26,118 27,234 impairmentcharges, andinterestexpensed (2)

Provision(benefit) for 390 (172 ) (26,476 ) 138 (30,429 ) (6,088 ) (3,815 )income taxes

Depreciationand 1,602 1,966 5,225 7,008 7,174 9,142 8,957 amortization

Amortizationof stock-based 541 572 1,651 1,661 2,250 2,425 2,260 compensation

Cashdistributionsof income from 110 40 110 319 165 319 374 unconsolidatedjoint ventures

Severance - - 1,091 1,788 1,091 1,788 1,788 charges

Noncashinventoryimpairments (33 ) 3,610 33,097 3,629 39,762 13,754 10,294 andabandonments

Less:

Gain on earlyextinguishment (191 ) - (770 ) (969 ) (965 ) (969 ) (1,164 )of debt

Equity in net(income) lossof 98 63 21,997 (306 ) 25,806 19,596 3,503 unconsolidatedjoint ventures

Adjusted $ 11,629 $ 8,570 $ 25,004 $ 26,516 $ 39,918 $ 44,933 $ 41,430 EBITDA

Total Revenue $ 130,844 $ 165,616 $ 361,837 $ 447,213 $ 583,973 $ 676,879 $ 669,349

AdjustedEBITDA margin 8.9 % 5.2 % 6.9 % 5.9 % 6.8 % 6.6 % 6.2 %percentage

Interest $ 5,831 $ 6,978 $ 18,361 $ 22,345 $ 24,835 $ 30,124 $ 28,819 incurred

Ratio ofAdjustedEBITDA to 2.0x 1.2x 1.4x 1.2x 1.6x 1.5x 1.4x total interestincurred

Total debt at $ 290,272 $ 327,421 $ 304,832 period end

Ratio of debtto Adjusted 7.3x 7.3x 7.4x EBITDA

Total net debt $ 163,489 $ 286,410 $ 225,401 at period end

Ratio of netdebt to 4.1x 6.4x 5.4x AdjustedEBITDA

Total cash and $ 467,582 $ 547,190 $ 513,252 inventory

Ratio of cashand inventory 1.6x 1.7x 1.7x to debt

(1)

"LTM" indicates amounts for the trailing 12 months.

(2)

Due to an inadvertent oversight in the prior year periods, interest amortized to certain inventory impairment charges and to equity in net income (loss) of unconsolidated joint ventures was duplicated in the adjusted EBITDA calculation. The prior year period has been restated to correct this duplication.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201102005267/en/

CONTACT: Investor Relations Drew Mackintosh 949-382-7838 investorrelations@nwhm.com