We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
The New Home Company Inc | NYSE:NWHM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.99 | 0 | 01:00:00 |
|
FORM 10-Q
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Commission File Number 001-36283
|
|
|
|
|
Delaware
|
|
27-0560089
|
(State or other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
Not Applicable
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
|
¨
|
Non-accelerated filer (Do not check if smaller reporting company)
|
¨
|
Accelerated filer
|
ý
|
Smaller reporting company
|
¨
|
|
||
|
|
|
|
|
Page
Number
|
|
||
PART I Financial Information
|
||
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Part II Other Information
|
||
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
|
Item 1.
|
Financial Statements
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands, except per share amounts)
|
||||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
44,254
|
|
|
$
|
45,874
|
|
Restricted cash
|
970
|
|
|
380
|
|
||
Contracts and accounts receivable
|
21,379
|
|
|
23,960
|
|
||
Due from affiliates
|
842
|
|
|
979
|
|
||
Real estate inventories
|
383,392
|
|
|
200,636
|
|
||
Investment in unconsolidated joint ventures
|
42,489
|
|
|
60,572
|
|
||
Other assets
|
23,497
|
|
|
18,869
|
|
||
Total assets
|
$
|
516,823
|
|
|
$
|
351,270
|
|
|
|
|
|
||||
Liabilities and equity
|
|
|
|
||||
Accounts payable
|
$
|
38,850
|
|
|
$
|
26,371
|
|
Accrued expenses and other liabilities
|
14,067
|
|
|
19,827
|
|
||
Due to affiliates
|
—
|
|
|
293
|
|
||
Unsecured revolving credit facility
|
229,924
|
|
|
74,924
|
|
||
Other notes payable
|
4,000
|
|
|
8,158
|
|
||
Total liabilities
|
286,841
|
|
|
129,573
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
||||
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, 20,711,952 and 20,543,130, shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
|
207
|
|
|
205
|
|
||
Additional paid-in capital
|
196,293
|
|
|
194,437
|
|
||
Retained earnings
|
33,375
|
|
|
26,133
|
|
||
Total The New Home Company Inc. stockholders' equity
|
229,875
|
|
|
220,775
|
|
||
Noncontrolling interest in subsidiary
|
107
|
|
|
922
|
|
||
Total equity
|
229,982
|
|
|
221,697
|
|
||
Total liabilities and equity
|
$
|
516,823
|
|
|
$
|
351,270
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Home sales
|
$
|
125,142
|
|
|
$
|
57,878
|
|
|
$
|
246,281
|
|
|
$
|
133,315
|
|
Fee building, including management fees from unconsolidated joint ventures of $1,539, $3,255, $6,251 and $8,356, respectively
|
52,761
|
|
|
29,099
|
|
|
125,726
|
|
|
102,158
|
|
||||
|
177,903
|
|
|
86,977
|
|
|
372,007
|
|
|
235,473
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of homes sales
|
105,799
|
|
|
48,741
|
|
|
211,859
|
|
|
112,747
|
|
||||
Cost of fee building
|
50,832
|
|
|
27,028
|
|
|
120,063
|
|
|
96,014
|
|
||||
Selling and marketing
|
6,055
|
|
|
3,442
|
|
|
14,577
|
|
|
7,531
|
|
||||
General and administrative
|
6,468
|
|
|
5,105
|
|
|
17,476
|
|
|
13,078
|
|
||||
|
169,154
|
|
|
84,316
|
|
|
363,975
|
|
|
229,370
|
|
||||
Equity in net income of unconsolidated joint ventures
|
488
|
|
|
4,056
|
|
|
4,428
|
|
|
9,180
|
|
||||
Other expense, net
|
(195
|
)
|
|
(123
|
)
|
|
(590
|
)
|
|
(843
|
)
|
||||
Income before income taxes
|
9,042
|
|
|
6,594
|
|
|
11,870
|
|
|
14,440
|
|
||||
Provision for income taxes
|
(3,465
|
)
|
|
(2,249
|
)
|
|
(4,718
|
)
|
|
(5,275
|
)
|
||||
Net income
|
5,577
|
|
|
4,345
|
|
|
7,152
|
|
|
9,165
|
|
||||
Net (income) loss attributable to noncontrolling interest
|
(30
|
)
|
|
99
|
|
|
90
|
|
|
297
|
|
||||
Net income attributable to The New Home Company Inc.
|
$
|
5,547
|
|
|
$
|
4,444
|
|
|
$
|
7,242
|
|
|
$
|
9,462
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to The New Home Company Inc.
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
$
|
0.57
|
|
Diluted
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
$
|
0.57
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
20,711,952
|
|
|
16,516,546
|
|
|
20,675,233
|
|
|
16,507,736
|
|
||||
Diluted
|
20,797,731
|
|
|
16,733,805
|
|
|
20,764,480
|
|
|
16,660,673
|
|
|
Stockholders’ Equity
|
|
Noncontrolling Interest in Subsidiary
|
|
Total Equity
|
|||||||||||||||||||||
|
Number of Shares of
Common
Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained Earnings
|
|
Total
Stockholders’
Equity
|
|
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||
Balance at December 31, 2015
|
20,543,130
|
|
|
$
|
205
|
|
|
$
|
194,437
|
|
|
$
|
26,133
|
|
|
$
|
220,775
|
|
|
$
|
922
|
|
|
$
|
221,697
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
7,242
|
|
|
7,242
|
|
|
(90
|
)
|
|
7,152
|
|
|||||||
Noncontrolling interest distribution
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(725
|
)
|
|
(725
|
)
|
|||||||
Stock-based compensation expense
|
|
|
|
|
|
2,602
|
|
|
|
|
|
2,602
|
|
|
|
|
|
2,602
|
|
|||||||
Shares net settled with the Company to satisfy employee personal income tax liabilities resulting from share based compensation plans
|
|
|
|
|
|
(647
|
)
|
|
|
|
|
(647
|
)
|
|
|
|
|
(647
|
)
|
|||||||
Tax valuation adjustment from stock-based compensation
|
|
|
|
|
|
(97
|
)
|
|
|
|
|
(97
|
)
|
|
|
|
|
(97
|
)
|
|||||||
Shares issued through stock plans
|
168,822
|
|
|
2
|
|
|
(2
|
)
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
||||||
Balance at September 30, 2016
|
20,711,952
|
|
|
$
|
207
|
|
|
$
|
196,293
|
|
|
$
|
33,375
|
|
|
$
|
229,875
|
|
|
$
|
107
|
|
|
$
|
229,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
7,152
|
|
|
$
|
9,165
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Deferred taxes
|
1,181
|
|
|
(4,439
|
)
|
||
Amortization of equity based compensation
|
2,602
|
|
|
2,725
|
|
||
Tax valuation adjustment from stock-based compensation
|
97
|
|
|
—
|
|
||
Distributions of earnings from unconsolidated joint ventures
|
1,931
|
|
|
10,514
|
|
||
Equity in net income of unconsolidated joint ventures
|
(4,428
|
)
|
|
(9,180
|
)
|
||
Deferred profit from unconsolidated joint ventures
|
541
|
|
|
(1,448
|
)
|
||
Depreciation
|
381
|
|
|
349
|
|
||
Abandoned project costs
|
498
|
|
|
551
|
|
||
Net changes in operating assets and liabilities:
|
|
|
|
||||
Restricted cash
|
11
|
|
|
146
|
|
||
Contracts and accounts receivable
|
2,717
|
|
|
2,080
|
|
||
Due from affiliates
|
91
|
|
|
1,873
|
|
||
Real estate inventories
|
(159,778
|
)
|
|
(100,809
|
)
|
||
Other assets
|
(4,894
|
)
|
|
1,050
|
|
||
Accounts payable
|
11,927
|
|
|
7,665
|
|
||
Accrued expenses and other liabilities
|
(6,430
|
)
|
|
(3,206
|
)
|
||
Due to affiliates
|
(293
|
)
|
|
—
|
|
||
Net cash used in operating activities
|
(146,694
|
)
|
|
(82,964
|
)
|
||
Investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(379
|
)
|
|
(289
|
)
|
||
Cash assumed from joint venture at consolidation
|
2,009
|
|
|
—
|
|
||
Contributions to unconsolidated joint ventures
|
(7,707
|
)
|
|
(7,967
|
)
|
||
Distributions of capital from unconsolidated joint ventures
|
13,977
|
|
|
25,682
|
|
||
Net cash provided by investing activities
|
7,900
|
|
|
17,426
|
|
||
Financing activities:
|
|
|
|
||||
Borrowings from credit facility
|
193,000
|
|
|
87,504
|
|
||
Repayments of credit facility
|
(38,000
|
)
|
|
(29,581
|
)
|
||
Borrowings from other notes payable
|
343
|
|
|
—
|
|
||
Repayments of other notes payable
|
(15,636
|
)
|
|
—
|
|
||
Payment of debt issuance costs
|
(1,064
|
)
|
|
—
|
|
||
Cash distributions to noncontrolling interest in subsidiary
|
(725
|
)
|
|
(822
|
)
|
||
Minimum tax withholding paid on behalf of employees for stock awards
|
(647
|
)
|
|
(248
|
)
|
||
Tax valuation adjustment from stock-based compensation
|
(97
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
137,174
|
|
|
56,853
|
|
||
Net decrease in cash and cash equivalents
|
(1,620
|
)
|
|
(8,685
|
)
|
||
Cash and cash equivalents – beginning of period
|
45,874
|
|
|
44,058
|
|
||
Cash and cash equivalents – end of period
|
$
|
44,254
|
|
|
$
|
35,373
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to The New Home Company Inc.
|
$
|
5,547
|
|
|
$
|
4,444
|
|
|
$
|
7,242
|
|
|
$
|
9,462
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares outstanding
|
20,711,952
|
|
|
16,516,546
|
|
|
20,675,233
|
|
|
16,507,736
|
|
||||
Effect of dilutive shares:
|
|
|
|
|
|
|
|
||||||||
Stock options and unvested restricted stock units
|
85,779
|
|
|
217,259
|
|
|
89,247
|
|
|
152,937
|
|
||||
Diluted weighted-average shares outstanding
|
20,797,731
|
|
|
16,733,805
|
|
|
20,764,480
|
|
|
16,660,673
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to The New Home Company Inc.
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
$
|
0.57
|
|
Diluted earnings per share attributable to The New Home Company Inc.
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
||||||||
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
|
845,331
|
|
|
14,318
|
|
|
866,139
|
|
|
5,087
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Contracts receivable:
|
|
|
|
||||
Costs incurred on fee building projects
|
$
|
120,063
|
|
|
$
|
139,677
|
|
Estimated earnings
|
5,663
|
|
|
10,213
|
|
||
|
125,726
|
|
|
149,890
|
|
||
Less: amounts collected during the period
|
(106,265
|
)
|
|
(132,109
|
)
|
||
Contracts receivable
|
$
|
19,461
|
|
|
$
|
17,781
|
|
|
|
|
|
||||
Contracts receivable:
|
|
|
|
||||
Billed
|
$
|
—
|
|
|
$
|
—
|
|
Unbilled
|
19,461
|
|
|
17,781
|
|
||
|
19,461
|
|
|
17,781
|
|
||
Accounts receivable:
|
|
|
|
||||
Escrow receivables
|
1,770
|
|
|
6,179
|
|
||
Other receivables
|
148
|
|
|
—
|
|
||
Contracts and accounts receivable
|
$
|
21,379
|
|
|
$
|
23,960
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Deposits and pre-acquisition costs
|
$
|
46,236
|
|
|
$
|
17,133
|
|
Land held and land under development
|
76,230
|
|
|
57,659
|
|
||
Homes completed or under construction
|
181,305
|
|
|
100,523
|
|
||
Model homes
|
79,621
|
|
|
25,321
|
|
||
|
$
|
383,392
|
|
|
$
|
200,636
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Interest incurred
|
$
|
2,273
|
|
|
$
|
1,369
|
|
|
$
|
5,243
|
|
|
$
|
3,295
|
|
Interest capitalized
|
(2,273
|
)
|
|
(1,369
|
)
|
|
(5,243
|
)
|
|
(3,295
|
)
|
||||
Interest expensed
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Capitalized interest in beginning inventory
|
$
|
5,449
|
|
|
$
|
3,510
|
|
|
$
|
4,190
|
|
|
$
|
2,328
|
|
Interest capitalized as a cost of inventory
|
2,273
|
|
|
1,369
|
|
|
5,243
|
|
|
3,295
|
|
||||
Contribution to unconsolidated joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
(264
|
)
|
||||
Previously capitalized interest included in cost of sales
|
(1,306
|
)
|
|
(396
|
)
|
|
(3,017
|
)
|
|
(876
|
)
|
||||
Interest previously capitalized as a cost of inventory, included in other expense
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
||||
Capitalized interest in ending inventory
|
$
|
6,416
|
|
|
$
|
4,444
|
|
|
$
|
6,416
|
|
|
$
|
4,444
|
|
|
|
|
|
|
|
|
|
||||||||
Capitalized interest as a percentage of inventory
|
1.7
|
%
|
|
1.9
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
||||
Interest included in cost of sales as a percentage of home sales revenue
|
1.0
|
%
|
|
0.7
|
%
|
|
1.2
|
%
|
|
0.7
|
%
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Cash and cash equivalents
|
$
|
36,937
|
|
|
$
|
53,936
|
|
Restricted cash
|
11,904
|
|
|
12,279
|
|
||
Real estate inventories
|
414,624
|
|
|
415,730
|
|
||
Other assets
|
2,769
|
|
|
3,972
|
|
||
Total assets
|
$
|
466,234
|
|
|
$
|
485,917
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
43,331
|
|
|
$
|
57,813
|
|
Notes payable
|
128,718
|
|
|
94,890
|
|
||
Total liabilities
|
172,049
|
|
|
152,703
|
|
||
The New Home Company's equity
|
42,489
|
|
|
60,572
|
|
||
Other partners' equity
|
251,696
|
|
|
272,642
|
|
||
Total equity
|
294,185
|
|
|
333,214
|
|
||
Total liabilities and equity
|
$
|
466,234
|
|
|
$
|
485,917
|
|
Debt-to-capitalization ratio
|
30.4
|
%
|
|
22.2
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Revenues
|
$
|
34,464
|
|
|
$
|
115,370
|
|
|
$
|
146,525
|
|
|
$
|
254,780
|
|
Cost of sales
|
28,763
|
|
|
87,645
|
|
|
116,902
|
|
|
196,928
|
|
||||
Gross margin
|
5,701
|
|
|
27,725
|
|
|
29,623
|
|
|
57,852
|
|
||||
Operating expenses
|
3,284
|
|
|
6,819
|
|
|
13,245
|
|
|
18,542
|
|
||||
Net income of unconsolidated joint ventures
|
$
|
2,417
|
|
|
$
|
20,906
|
|
|
$
|
16,378
|
|
|
$
|
39,310
|
|
Equity in net income of unconsolidated joint ventures reflected in the accompanying condensed consolidated statements of operations
|
$
|
488
|
|
|
$
|
4,056
|
|
|
$
|
4,428
|
|
|
$
|
9,180
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Capitalized selling and marketing costs
|
$
|
14,494
|
|
|
$
|
9,282
|
|
Deferred tax asset
|
6,335
|
|
|
7,516
|
|
||
Property and equipment, net of accumulated depreciation
|
927
|
|
|
929
|
|
||
Prepaid expenses
|
1,736
|
|
|
1,127
|
|
||
Other assets
|
5
|
|
|
15
|
|
||
|
$
|
23,497
|
|
|
$
|
18,869
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Warranty accrual
|
$
|
4,335
|
|
|
$
|
4,181
|
|
Accrued compensation and benefits
|
4,169
|
|
|
5,106
|
|
||
Accrued interest
|
705
|
|
|
453
|
|
||
Income taxes payable
|
2,143
|
|
|
6,780
|
|
||
Deferred profit from unconsolidated joint ventures
|
1,062
|
|
|
1,603
|
|
||
Other accrued expenses
|
1,653
|
|
|
1,704
|
|
||
|
$
|
14,067
|
|
|
$
|
19,827
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Beginning warranty accrual for homebuilding projects
|
$
|
4,874
|
|
|
$
|
1,902
|
|
|
$
|
3,846
|
|
|
$
|
1,277
|
|
Warranty provision for homebuilding projects
|
369
|
|
|
579
|
|
|
1,174
|
|
|
1,333
|
|
||||
Warranty assumed from joint venture at consolidation
|
—
|
|
|
—
|
|
|
469
|
|
|
—
|
|
||||
Warranty payments for homebuilding projects
|
(168
|
)
|
|
(59
|
)
|
|
(414
|
)
|
|
(188
|
)
|
||||
Adjustment to warranty accrual
|
(1,065
|
)
|
|
—
|
|
|
(1,065
|
)
|
|
—
|
|
||||
Ending warranty accrual for homebuilding projects
|
4,010
|
|
|
2,422
|
|
|
4,010
|
|
|
2,422
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Beginning warranty accrual for fee building projects
|
331
|
|
|
297
|
|
|
335
|
|
|
301
|
|
||||
Warranty provision for fee building projects
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
||||
Warranty efforts for fee building projects
|
(6
|
)
|
|
(14
|
)
|
|
(10
|
)
|
|
(18
|
)
|
||||
Ending warranty accrual for fee building projects
|
325
|
|
|
340
|
|
|
325
|
|
|
340
|
|
||||
Total ending warranty accrual
|
$
|
4,335
|
|
|
$
|
2,762
|
|
|
$
|
4,335
|
|
|
$
|
2,762
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Senior unsecured revolving credit facility
|
$
|
229,924
|
|
|
$
|
74,924
|
|
Note payable to land seller
|
4,000
|
|
|
6,000
|
|
||
Construction loans
|
—
|
|
|
2,158
|
|
||
|
$
|
233,924
|
|
|
$
|
83,082
|
|
•
|
Level 1 – Quoted prices for identical instruments in active markets
|
•
|
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
|
•
|
Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Number of Shares
|
|
Weighted-Average Exercise Price per Share
|
|
Number of Shares
|
|
Weighted-Average Exercise Price per Share
|
||||||
Outstanding Stock Option Activity
|
|
|
|
|
|
|
|
||||||
Outstanding, beginning of period
|
840,298
|
|
|
$
|
11.00
|
|
|
846,874
|
|
|
$
|
11.00
|
|
Granted
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Exercised
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Forfeited
|
(4,512
|
)
|
|
$
|
11.00
|
|
|
—
|
|
|
$
|
—
|
|
Outstanding, end of period
|
835,786
|
|
|
$
|
11.00
|
|
|
846,874
|
|
|
$
|
11.00
|
|
Exercisable, end of period
|
42,042
|
|
|
$
|
11.00
|
|
|
24,717
|
|
|
$
|
11.00
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Number of Shares
|
|
Weighted-Average Grant-Date Fair Value per Share
|
|
Number of Shares
|
|
Weighted-Average Grant-Date Fair Value per Share
|
||||||
Restricted Stock Unit Activity
|
|
|
|
|
|
|
|
||||||
Outstanding, beginning of period
|
308,386
|
|
|
$
|
14.20
|
|
|
112,233
|
|
|
$
|
11.36
|
|
Granted
|
414,045
|
|
|
$
|
10.05
|
|
|
293,324
|
|
|
$
|
14.46
|
|
Vested
|
(231,289
|
)
|
|
$
|
14.22
|
|
|
(85,386
|
)
|
|
$
|
11.48
|
|
Forfeited
|
(11,796
|
)
|
|
$
|
12.10
|
|
|
(384
|
)
|
|
$
|
11.00
|
|
Outstanding, end of period
|
479,346
|
|
|
$
|
10.66
|
|
|
319,787
|
|
|
$
|
14.17
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Expense related to:
|
|
|
|
|
|
|
|
||||||||
Stock options
|
$
|
300
|
|
|
$
|
301
|
|
|
$
|
747
|
|
|
$
|
911
|
|
Restricted stock units
|
560
|
|
|
941
|
|
|
1,855
|
|
|
1,814
|
|
||||
|
$
|
860
|
|
|
$
|
1,242
|
|
|
$
|
2,602
|
|
|
$
|
2,725
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Homebuilding
|
$
|
125,142
|
|
|
$
|
57,878
|
|
|
$
|
246,281
|
|
|
$
|
133,315
|
|
Fee building, including management fees
|
52,761
|
|
|
29,099
|
|
|
125,726
|
|
|
102,158
|
|
||||
Total
|
$
|
177,903
|
|
|
$
|
86,977
|
|
|
$
|
372,007
|
|
|
$
|
235,473
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes:
|
|
|
|
|
|
|
|
||||||||
Homebuilding
|
$
|
7,113
|
|
|
$
|
4,523
|
|
|
$
|
6,207
|
|
|
$
|
8,296
|
|
Fee building, including management fees
|
1,929
|
|
|
2,071
|
|
|
5,663
|
|
|
6,144
|
|
||||
Total
|
$
|
9,042
|
|
|
$
|
6,594
|
|
|
$
|
11,870
|
|
|
$
|
14,440
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Assets:
|
|
|
|
||||
Homebuilding
|
$
|
496,065
|
|
|
$
|
331,697
|
|
Fee building
|
20,758
|
|
|
19,573
|
|
||
Total
|
$
|
516,823
|
|
|
$
|
351,270
|
|
|
Nine months ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Supplemental disclosures of cash flow information
|
|
|
|
||||
Interest paid, net of amounts capitalized
|
$
|
—
|
|
|
$
|
—
|
|
Income taxes paid
|
$
|
8,270
|
|
|
$
|
8,356
|
|
Supplemental disclosures of non-cash transactions
|
|
|
|
||||
Purchase of real estate with notes payable to affiliate
|
$
|
—
|
|
|
$
|
747
|
|
Contribution of real estate to unconsolidated joint ventures
|
$
|
—
|
|
|
$
|
18,828
|
|
Contribution of real estate from noncontrolling interest in subsidiary
|
$
|
—
|
|
|
$
|
1,301
|
|
Assets assumed from unconsolidated joint ventures
|
$
|
46,811
|
|
|
$
|
—
|
|
Liabilities and equity assumed from unconsolidated joint ventures
|
$
|
47,197
|
|
|
$
|
—
|
|
Item 2
.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
economic changes either nationally or in the markets in which we operate, including declines in employment, volatility of mortgage interest rates and inflation;
|
•
|
shortages of or increased prices for labor, land or raw materials used in housing construction;
|
•
|
a downturn in the homebuilding industry;
|
•
|
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;
|
•
|
delays in land development or home construction resulting from adverse weather conditions, regulatory approval delays, or other events outside our control;
|
•
|
our customers' ability to obtain mortgage financing;
|
•
|
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 our competition;
|
•
|
our leverage and debt service obligations;
|
•
|
restrictive covenants relating to our operations in our current or future financing arrangements; and
|
•
|
availability of qualified personnel and our ability to retain our key personnel.
|
•
|
the impact of recent accounting standards.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Home sales
|
$
|
125,142
|
|
|
$
|
57,878
|
|
|
$
|
246,281
|
|
|
$
|
133,315
|
|
Fee building, including management fees from unconsolidated joint ventures of $1,539, $3,255, $6,251 and $8,356, respectively
|
52,761
|
|
|
29,099
|
|
|
125,726
|
|
|
102,158
|
|
||||
|
177,903
|
|
|
86,977
|
|
|
372,007
|
|
|
235,473
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of homes sales
|
105,799
|
|
|
48,741
|
|
|
211,859
|
|
|
112,747
|
|
||||
Cost of fee building
|
50,832
|
|
|
27,028
|
|
|
120,063
|
|
|
96,014
|
|
||||
Selling and marketing
|
6,055
|
|
|
3,442
|
|
|
14,577
|
|
|
7,531
|
|
||||
General and administrative
|
6,468
|
|
|
5,105
|
|
|
17,476
|
|
|
13,078
|
|
||||
|
169,154
|
|
|
84,316
|
|
|
363,975
|
|
|
229,370
|
|
||||
Equity in net income of unconsolidated joint ventures
|
488
|
|
|
4,056
|
|
|
4,428
|
|
|
9,180
|
|
||||
Other expense, net
|
(195
|
)
|
|
(123
|
)
|
|
(590
|
)
|
|
(843
|
)
|
||||
Income before income taxes
|
9,042
|
|
|
6,594
|
|
|
11,870
|
|
|
14,440
|
|
||||
Provision for income taxes
|
(3,465
|
)
|
|
(2,249
|
)
|
|
(4,718
|
)
|
|
(5,275
|
)
|
||||
Net income
|
5,577
|
|
|
4,345
|
|
|
7,152
|
|
|
9,165
|
|
||||
Net (income) loss attributable to noncontrolling interest
|
(30
|
)
|
|
99
|
|
|
90
|
|
|
297
|
|
||||
Net income attributable to The New Home Company Inc.
|
$
|
5,547
|
|
|
$
|
4,444
|
|
|
$
|
7,242
|
|
|
$
|
9,462
|
|
|
Three Months Ended
September 30, |
|
Increase/(Decrease)
|
|
Nine Months Ended
September 30, |
|
Increase/(Decrease)
|
||||||||||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
|
2016
|
|
2015
|
|
Amount
|
|
%
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Net new home orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Southern California
|
39
|
|
|
32
|
|
|
7
|
|
|
22
|
%
|
|
105
|
|
|
68
|
|
|
37
|
|
|
54
|
%
|
Northern California
|
25
|
|
|
29
|
|
|
(4
|
)
|
|
(14
|
)%
|
|
79
|
|
|
58
|
|
|
21
|
|
|
36
|
%
|
|
64
|
|
|
61
|
|
|
3
|
|
|
5
|
%
|
|
184
|
|
|
126
|
|
|
58
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling communities at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Southern California
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
4
|
|
|
4
|
|
|
100
|
%
|
||
Northern California
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
6
|
|
|
(1
|
)
|
|
(17
|
)%
|
||
|
|
|
|
|
|
|
|
|
|
13
|
|
|
10
|
|
|
3
|
|
|
30
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Monthly sales absorption rate per community
|
1.7
|
|
|
2.3
|
|
|
(0.6
|
)
|
|
(26
|
)%
|
|
1.8
|
|
|
2.1
|
|
|
(0.3
|
)
|
|
(14
|
)%
|
Cancellation rate
|
11
|
%
|
|
8
|
%
|
|
3
|
%
|
|
N/A
|
|
|
12
|
%
|
|
6
|
%
|
|
6
|
%
|
|
N/A
|
|
|
As of September 30,
|
|||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
% Change
|
|||||||||||||||||||||||||
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||
Southern California
|
92
|
|
|
$
|
262,224
|
|
|
$
|
2,850
|
|
|
59
|
|
|
$
|
172,380
|
|
|
$
|
2,922
|
|
|
56
|
%
|
|
52
|
%
|
|
(2
|
)%
|
Northern California
|
37
|
|
|
27,971
|
|
|
756
|
|
|
37
|
|
|
39,260
|
|
|
1,061
|
|
|
—
|
%
|
|
(29
|
)%
|
|
(29
|
)%
|
||||
Total
|
129
|
|
|
$
|
290,195
|
|
|
$
|
2,250
|
|
|
96
|
|
|
$
|
211,640
|
|
|
$
|
2,205
|
|
|
34
|
%
|
|
37
|
%
|
|
2
|
%
|
|
September 30,
|
|
Increase/(Decrease)
|
||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
||||
Lots Owned
|
|
|
|
|
|
|
|
||||
Southern California
|
287
|
|
|
135
|
|
|
152
|
|
|
113
|
%
|
Northern California
|
339
|
|
|
292
|
|
|
47
|
|
|
16
|
%
|
Total
|
626
|
|
|
427
|
|
|
199
|
|
|
47
|
%
|
Lots Controlled
(1)
|
|
|
|
|
|
|
|
||||
Southern California
|
693
|
|
|
569
|
|
|
124
|
|
|
22
|
%
|
Northern California
|
265
|
|
|
80
|
|
|
185
|
|
|
231
|
%
|
Total
|
958
|
|
|
649
|
|
|
309
|
|
|
48
|
%
|
Total Lots Owned and Controlled - Wholly Owned
|
1,584
|
|
|
1,076
|
|
|
508
|
|
|
47
|
%
|
Fee Building
(2)
|
981
|
|
|
1,498
|
|
|
(517
|
)
|
|
(35
|
)%
|
Total Lots Owned and Controlled
|
2,565
|
|
|
2,574
|
|
|
(9
|
)
|
|
—
|
%
|
|
(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)
|
Subject to agreements with property owners.
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
% Change
|
|||||||||||||||||||||||||
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||
Southern California
|
36
|
|
|
$
|
105,789
|
|
|
$
|
2,939
|
|
|
15
|
|
|
$
|
40,354
|
|
|
$
|
2,690
|
|
|
140
|
%
|
|
162
|
%
|
|
9
|
%
|
Northern California
|
24
|
|
|
19,353
|
|
|
806
|
|
|
15
|
|
|
17,524
|
|
|
1,168
|
|
|
60
|
%
|
|
10
|
%
|
|
(31
|
)%
|
||||
Total
|
60
|
|
|
$
|
125,142
|
|
|
$
|
2,086
|
|
|
30
|
|
|
$
|
57,878
|
|
|
$
|
1,929
|
|
|
100
|
%
|
|
116
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
% Change
|
|||||||||||||||||||||||||
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|
Homes
|
|
Dollar Value
|
|
Average Price
|
|||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||
Southern California
|
67
|
|
|
$
|
189,996
|
|
|
$
|
2,836
|
|
|
42
|
|
|
$
|
106,049
|
|
|
$
|
2,525
|
|
|
60
|
%
|
|
79
|
%
|
|
12
|
%
|
Northern California
|
64
|
|
|
56,285
|
|
|
879
|
|
|
29
|
|
|
27,266
|
|
|
940
|
|
|
121
|
%
|
|
106
|
%
|
|
(6
|
)%
|
||||
Total
|
131
|
|
|
$
|
246,281
|
|
|
$
|
1,880
|
|
|
71
|
|
|
$
|
133,315
|
|
|
$
|
1,878
|
|
|
85
|
%
|
|
85
|
%
|
|
—
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2016
|
|
%
|
|
2015
|
|
%
|
|
2016
|
|
%
|
|
2015
|
|
%
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Home sales revenue
|
$
|
125,142
|
|
|
100.0
|
%
|
|
$
|
57,878
|
|
|
100.0
|
%
|
|
$
|
246,281
|
|
|
100.0
|
%
|
|
$
|
133,315
|
|
|
100.0
|
%
|
Cost of home sales
|
105,799
|
|
|
84.5
|
%
|
|
48,741
|
|
|
84.2
|
%
|
|
211,859
|
|
|
86.0
|
%
|
|
112,747
|
|
|
84.6
|
%
|
||||
Homebuilding gross margin
|
19,343
|
|
|
15.5
|
%
|
|
9,137
|
|
|
15.8
|
%
|
|
34,422
|
|
|
14.0
|
%
|
|
20,568
|
|
|
15.4
|
%
|
||||
Add: Interest in cost of home sales
|
1,306
|
|
|
1.0
|
%
|
|
396
|
|
|
0.7
|
%
|
|
3,017
|
|
|
1.2
|
%
|
|
876
|
|
|
0.7
|
%
|
||||
Adjusted homebuilding gross margin
(1)
|
$
|
20,649
|
|
|
16.5
|
%
|
|
$
|
9,533
|
|
|
16.5
|
%
|
|
$
|
37,439
|
|
|
15.2
|
%
|
|
$
|
21,444
|
|
|
16.1
|
%
|
|
(1)
|
Adjusted homebuilding gross margin is a non-GAAP financial measure. We believe that by adding interest in cost of home sales back to homebuilding gross margin, investors are able to assess the performance of our homebuilding business excluding our interest cost. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors who adjust gross margins in a similar fashion.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2016
|
|
%
|
|
2015
|
|
%
|
|
2016
|
|
%
|
|
2015
|
|
%
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Fee building revenues
|
$
|
52,761
|
|
|
100.0
|
%
|
|
$
|
29,099
|
|
|
100.0
|
%
|
|
$
|
125,726
|
|
|
100.0
|
%
|
|
$
|
102,158
|
|
|
100.0
|
%
|
Cost of fee building
|
50,832
|
|
|
96.3
|
%
|
|
27,028
|
|
|
92.9
|
%
|
|
120,063
|
|
|
95.5
|
%
|
|
96,014
|
|
|
94.0
|
%
|
||||
Fee building gross margin
|
$
|
1,929
|
|
|
3.7
|
%
|
|
$
|
2,071
|
|
|
7.1
|
%
|
|
$
|
5,663
|
|
|
4.5
|
%
|
|
$
|
6,144
|
|
|
6.0
|
%
|
|
Three Months Ended
September 30, |
|
As a Percentage of Home Sales Revenue
|
|
Nine Months Ended
September 30, |
|
As a Percentage of Home Sales Revenue
|
||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Selling and marketing expenses
|
$
|
6,055
|
|
|
$
|
3,442
|
|
|
4.8
|
%
|
|
5.9
|
%
|
|
$
|
14,577
|
|
|
$
|
7,531
|
|
|
5.9
|
%
|
|
5.6
|
%
|
General and administrative expenses (“G&A”)
|
6,468
|
|
|
5,105
|
|
|
5.2
|
%
|
|
8.8
|
%
|
|
17,476
|
|
|
13,078
|
|
|
7.1
|
%
|
|
9.8
|
%
|
||||
Total selling, marketing and G&A (“SG&A”)
|
$
|
12,523
|
|
|
$
|
8,547
|
|
|
10.0
|
%
|
|
14.8
|
%
|
|
$
|
32,053
|
|
|
$
|
20,609
|
|
|
13.0
|
%
|
|
15.4
|
%
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||||||||
|
|
Increase/(Decrease)
|
|
|
Increase/(Decrease)
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
|
2016
|
|
2015
|
|
Amount
|
|
%
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Unconsolidated Joint Ventures—Homebuilding
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Operational Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net new home orders
|
35
|
|
|
57
|
|
|
(22
|
)
|
|
(39
|
)%
|
|
111
|
|
|
268
|
|
|
(157
|
)
|
|
(59
|
)%
|
||||||
Monthly sales absorption rate per community
|
2.5
|
|
|
1.8
|
|
|
0.7
|
|
|
39
|
%
|
|
2.5
|
|
|
3.1
|
|
|
(0.6
|
)
|
|
(19
|
)%
|
||||||
Cancellation rate
|
15
|
%
|
|
15
|
%
|
|
—
|
%
|
|
N/A
|
|
|
12
|
%
|
|
8
|
%
|
|
4
|
%
|
|
N/A
|
|
||||||
New homes delivered
|
23
|
|
|
71
|
|
|
(48
|
)
|
|
(68
|
)%
|
|
123
|
|
|
170
|
|
|
(47
|
)
|
|
(28
|
)%
|
||||||
Home sales revenue
|
$
|
19,659
|
|
|
$
|
106,485
|
|
|
$
|
(86,826
|
)
|
|
(82
|
)%
|
|
$
|
105,558
|
|
|
$
|
200,325
|
|
|
$
|
(94,767
|
)
|
|
(47
|
)%
|
Average sales price of homes delivered
|
$
|
855
|
|
|
$
|
1,500
|
|
|
$
|
(645
|
)
|
|
(43
|
)%
|
|
$
|
858
|
|
|
$
|
1,178
|
|
|
$
|
(320
|
)
|
|
(27
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Selling communities at end of period
|
|
8
|
|
|
11
|
|
|
(3
|
)
|
|
(27
|
)%
|
|||||||||||||||||
Backlog (dollar value)
|
|
$
|
85,317
|
|
|
$
|
205,604
|
|
|
$
|
(120,287
|
)
|
|
(59
|
)%
|
||||||||||||||
Backlog (homes)
|
|
88
|
|
|
173
|
|
|
(85
|
)
|
|
(49
|
)%
|
|||||||||||||||||
Average sales price of backlog
|
|
$
|
970
|
|
|
$
|
1,188
|
|
|
$
|
(218
|
)
|
|
(18
|
)%
|
|
(1)
|
Adjusted unconsolidated joint ventures homebuilding gross margin is a non-GAAP financial measure. We believe that by adding interest in cost of unconsolidated joint venture home sales back to unconsolidated joint ventures homebuilding gross margin, investors are able to assess the performance of our unconsolidated joint ventures excluding interest cost. We believe this information is meaningful as it isolates the impact that leverage has on unconsolidated joint venture homebuilding gross margin and permits investors to make better comparisons with our competitors who adjust gross margins in a similar fashion.
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||||||||||
|
|
Increase/(Decrease)
|
|
|
Increase/(Decrease)
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
|
2016
|
|
2015
|
|
Amount
|
|
%
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Unconsolidated Joint Ventures—Land
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Operational Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Land sales revenue
|
$
|
14,805
|
|
|
$
|
8,885
|
|
|
$
|
5,920
|
|
|
67
|
%
|
|
$
|
40,967
|
|
|
$
|
54,455
|
|
|
$
|
(13,488
|
)
|
|
(25
|
)%
|
Backlog (dollar value)
(1)
|
|
$
|
5,416
|
|
|
$
|
51,662
|
|
|
$
|
(46,246
|
)
|
|
(90
|
)%
|
|
(1)
|
Amounts include $0 and $18.1 million of backlog dollar value related to purchase contracts between an unconsolidated joint venture and the Company as of September 30, 2016 and 2015, respectively.
|
|
September 30,
|
|
Increase/(Decrease)
|
||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
||||
Unconsolidated Joint Ventures—Lots Owned and Controlled
|
|
|
|
|
|
|
|
||||
Homebuilding
|
|
|
|
|
|
|
|
||||
Lots owned
|
589
|
|
|
776
|
|
|
(187
|
)
|
|
(24
|
)%
|
Lots controlled
(1)
|
72
|
|
|
68
|
|
|
4
|
|
|
6
|
%
|
Homebuilding Total
|
661
|
|
|
844
|
|
|
(183
|
)
|
|
(22
|
)%
|
Land Development
|
|
|
|
|
|
|
|
||||
Lots owned
|
2,180
|
|
|
2,420
|
|
|
(240
|
)
|
|
(10
|
)%
|
Lots controlled
(1)
|
235
|
|
|
235
|
|
|
—
|
|
|
—
|
%
|
Land Development Total
|
2,415
|
|
|
2,655
|
|
|
(240
|
)
|
|
(9
|
)%
|
Total
|
3,076
|
|
|
3,499
|
|
|
(423
|
)
|
|
(12
|
)%
|
|
(1)
|
Consists of lots that are under purchase and sale agreements.
|
Financial Covenants
|
Actual at September 30,
2016
|
|
Covenant
Requirement at September 30,
2016
|
||||
|
(Dollars in thousands)
|
||||||
Unencumbered Liquid Assets
|
$
|
44,254
|
|
|
$
|
7,000
|
|
EBITDA to Interest Incurred
|
5.7 : 1.0
|
|
|
> 1.5 : 1.0
|
|
||
Tangible Net Worth
|
$
|
229,875
|
|
|
$
|
169,028
|
|
Leverage Ratio
|
46
|
%
|
|
< 65%
|
|
||
Adjusted Leverage Ratio
(1)
|
44
|
%
|
|
< 50%
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Notes payable, including unsecured revolving credit facility
|
$
|
233,924
|
|
|
$
|
83,082
|
|
Equity, exclusive of noncontrolling interest
|
229,875
|
|
|
220,775
|
|
||
Total capital
|
$
|
463,799
|
|
|
$
|
303,857
|
|
Ratio of debt-to-capital
(1)
|
50.4
|
%
|
|
27.3
|
%
|
||
|
|
|
|
||||
Notes payable, including unsecured revolving credit facility
|
$
|
233,924
|
|
|
$
|
83,082
|
|
Less: cash, cash equivalents and restricted cash
|
45,224
|
|
|
46,254
|
|
||
Net debt
|
188,700
|
|
|
36,828
|
|
||
Equity, exclusive of noncontrolling interest
|
229,875
|
|
|
220,775
|
|
||
Total capital
|
$
|
418,575
|
|
|
$
|
257,603
|
|
Ratio of net debt-to-capital
(2)
|
45.1
|
%
|
|
14.3
|
%
|
|
(1)
|
The ratio of debt-to-capital is computed as the quotient obtained by dividing notes payable by the sum of total notes payable (including unsecured revolving credit facility) 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 notes payable (including unsecured revolving credit facility) 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.
|
•
|
Net cash used in operating activities was
$146.7 million
for the
nine
months ended
September 30, 2016
versus
$83.0 million
for the
nine
months ended
September 30, 2015
. The year-over-year change was primarily a result of a net increase in cash outflows for real estate inventories of
$159.8 million
in the 2016 period compared to
$100.8 million
in the 2015 period. The significant investment in real estate inventories in the 2016 period was the result of growth in our community count, increased land spend, and increased construction activity at our wholly owned communities.
|
•
|
Net cash provided by investing activities was
$7.9 million
for the
nine
months ended
September 30, 2016
compared to
$17.4 million
for the
nine
months ended
September 30, 2015
. For the
nine
months ended
September 30, 2016
, our net distributions from unconsolidated joint ventures (excluding distributions of earnings) were
$6.3 million
compared to
$17.7 million
during the
nine
months ended
September 30, 2015
and was the primary reason net cash provided by investing activities decreased. The reduction in distributions from unconsolidated joint ventures primarily related to the reduction in revenues, new home deliveries, and the completion of certain joint venture communities.
|
•
|
Net cash provided by financing activities was
$137.2 million
for the
nine
months ended
September 30, 2016
versus
$56.9 million
for the
nine
months ended
September 30, 2015
. The change was primarily driven by net borrowings under our revolving credit facility of
$155.0 million
in the 2016 period due to the growth in our community count, increased land spend and construction activity at our wholly owned communities versus
$57.9 million
in the 2015 period.
|
•
|
leveraging our capital base
|
•
|
accessing larger or highly desirable lot positions
|
•
|
expanding our market opportunities
|
•
|
managing financial and market risk associated with land holdings
|
•
|
establishing strategic alliances
|
|
(1)
|
Scheduled maturities of the unconsolidated joint venture debt as of
September 30, 2016
are as follows: no maturities in 2016, $112.3 million matures in 2017, $9.9 matures in 2018 and $6.5 million matures in 2019.
|
(2)
|
Estimated future capital commitment represents our proportionate share of estimated future contributions as of
September 30, 2016
. Actual contributions may differ materially.
|
(3)
|
Certain members of the Company's board of directors are affiliated with entities that have an investment in these joint ventures.
|
(4)
|
The debt associated with this joint venture consists of a land seller note.
|
(5)
|
Land development joint ventures.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
|
|
|
|
|
|
|
|
|
|
|
The New Home Company Inc.
|
||
|
|
|
|
|||
|
|
|
|
By:
|
|
/s/ H. Lawrence Webb
|
|
|
|
|
|
|
H. Lawrence Webb
|
|
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ John M. Stephens
|
|
|
|
|
|
|
John M. Stephens
|
|
|
|
|
|
|
Chief Financial Officer
|
1 Year The New Home Chart |
1 Month The New Home Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions