The New Home Company reports some preliminary results for the second quarter of 2021
SCOTTSDALE, Arizona, July 26, 2021– (COMMERCIAL THREAD) – The New Home Company Inc. (NYSE: NWHM) today announced a selection of preliminary results for the second quarter of 2021 in meetings with investors. These estimated results are preliminary and unaudited.
Second Quarter 2021 Preliminary Financial Highlights (Estimated Results)
Net new orders of 187 against 164 in the second quarter of 2020, an increase of 14%
Monthly sales absorption of 3.3 per community versus 2.2 per community in Q2 2020, an increase of 50%
Home sales revenue of $ 135.9 million compared to $ 77.8 million for the second quarter of 2020, an increase of 75%
Shipments increased 98% and the average selling price decreased 12% to $ 666,000, in line with the company’s move to more affordable prices, including a significant increase in deliveries from its operation in Arizona
Backlog of 632 units, representing $ 439.4 million in backlog value versus 235 units, representing $ 168.8 million at the end of the second quarter of 2020
Closing cash balance of $ 117.3 million, an increase of $ 31.7 million from June 30, 2020
Total cash of $ 177.3 million, of which $ 60 million is available under its unsecured revolving credit facility
Total debt of $ 280.6 million as at June 30, 2021 compared to $ 295.1 million as at June 30, 2020
We have provided the preliminary estimated financial results above as our financial close procedures for the quarter ended June 30, 2021 have not yet been completed. The estimated preliminary financial information set out above does not represent a complete statement of our operating results or financial condition as of or for the three months ended June 30, 2021 and is based solely on information available to us as of the date. of this press release. Release. Our results of operations and financial condition for and for the quarter ended June 30, 2021 may differ from our current expectations and may differ from the information described above as our process for preparing the quarterly financial statements has not yet been completed. and further developments and adjustments may occur between now and the finalization of the financial statements and other information for that period, including all information required by GAAP. In addition, these preliminary estimates are not necessarily indicative of the results to be achieved for the remainder of 2021 or in any future period. There can be no assurance that these estimates will be achieved, and the estimates are subject to risks and uncertainties, many of which are beyond our control. The foregoing information should not be considered a substitute for complete financial statements prepared in accordance with GAAP or as a measure of performance. Therefore, you should not place undue reliance on this preliminary estimated financial information. Our preliminary estimated financial results are forward-looking statements.
About The New Home Company
NEW HOME is a company listed on the New York Stock Exchange under the symbol “NWHM”. It is a next-generation homebuilder focused on designing, building and selling innovative, consumer-driven homes in major metropolitan areas in select growing markets in California, Arizona and Colorado. For more information on the company and its new residential developments, please visit the company’s website at www.NWHM.com.
Various statements contained in this press release, including those which express a belief, anticipation, expectation or intention, as well as those which are not statements of historical fact, are forward-looking statements. These statements include statements regarding current trading conditions. These forward-looking statements may include projections and estimates regarding our revenues, number of communities and openings, timing and success of specific projects, our ability to execute our strategic growth objectives, gross margins, other projected results, income, earnings per share, business and capital expenditure. Our forward-looking statements are generally accompanied by words such as “estimate”, “should”, “plan”, “predict”, “believe”, “expect”, “intend”, “anticipate”, ” potential “,” plan, “” goal “,” will “,” direction “,” target “,” forecast “or other words that reflect the uncertainty of future events or results. Forward-looking statements in this release press releases speak only as of the date of this release, and we disclaim any obligation to update these statements except as required by law, and we caution you not to place undue reliance on them. We based these statements forward-looking statements about our current expectations and assumptions regarding 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 uncertainty es, 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 future results, performance or achievements expressed or implied by such forward-looking statements: a pandemic, epidemic or epidemic of infectious disease or a similar threat, and the response to such an event by government agencies and authorities, the negative impacts due to the COVID-19 pandemic, including a recession in the United States, which could include, among others, a significant drop demand for our homes or general consumer confidence in buying a home, the impact of legislation designed to provide economic relief from a recession, the inability of employees to work and customers to visit our communities due to movement restrictions or government disease, disruptions in our supply chain , our inability to access capital markets due to the lack of liquidity in the economy resulting from responses to the COVID-19 pandemic, inconsistencies in the classification of housing construction as essential activity, the recognition of charges that may be significant in respect of inventory write-downs or abandonment of land option contracts; economic changes nationally or in the markets in which we operate, including declining employment, volatility in mortgage interest rates and inflation; a downturn in the residential construction industry; changes in sales conditions, including housing prices, in the markets where we build housing; our significant amount of debt and the impact of covenants in our debt agreements; our ability to repay our debt as it falls due; changes in our credit rating or outlook; the volatility and uncertainty of credit and broader financial markets; our business and investment strategy, including our plans to sell homes at more affordable prices; the availability of land to be acquired and our ability to acquire such land on favorable terms or not at all; our liquidity and availability, the conditions and deployment of capital; margin changes; depreciations; shortage or increase in the prices of labor, land or raw materials used in the construction of housing; adverse weather conditions and natural disasters (including forest fires and mudslides); our concentration in California; questions regarding our joint venture partnerships; the cost and availability of insurance and surety bonds; government regulation, including the impact of “slow growth” or similar initiatives; modifications, non-compliance or inability to comply with government laws and regulations; the timing of receipt of regulatory approvals and the initiation of projects; delays in the process of granting land rights, development, construction or opening of new communities of origin; disputes and warranty claims; the degree and nature of competition; the impact of recent accounting standards; the 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 performed remotely due to COVID-19; and additional factors discussed in the sections entitled “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 to specifically refer to this press release. None of these updates will be deemed to indicate that other statements not addressed by this update remain correct or create an obligation to provide further updates.
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Investor Relations | Drew Mackintosh | 949-382-7838 | investor [email protected]