10/28/2021 | Press release | Distributed by Public on 10/28/2021 04:11
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per share amounts) | ||||||||
Homebuilding: | ||||||||
Home sale revenues | $ | 1,257,701 | $ | 1,000,549 | $ | 3,667,332 | $ | 2,584,392 |
Home cost of sales | (962,078) | (795,172) | (2,827,147) | (2,061,608) | ||||
Gross profit | 295,623 | 205,377 | 840,185 | 522,784 | ||||
Selling, general and administrative expenses | (120,116) | (103,632) | (363,970) | (285,269) | ||||
Loss on debt retirement | (12,150) | - | (12,150) | - | ||||
Interest and other income | 3,149 | 756 | 4,984 | 3,365 | ||||
Other expense | (1,354) | (851) | (2,881) | (4,640) | ||||
Homebuilding pretax income | 165,152 | 101,650 | 466,168 | 236,240 | ||||
Financial Services: | ||||||||
Revenues | 43,104 | 36,803 | 121,445 | 91,653 | ||||
Expenses | (16,377) | (13,294) | (47,922) | (36,401) | ||||
Other income (expense), net | 813 | 859 | 2,855 | (5,274) | ||||
Financial services pretax income | 27,540 | 24,368 | 76,378 | 49,978 | ||||
Income before income taxes | 192,692 | 126,018 | 542,546 | 286,218 | ||||
Provision for income taxes | (46,738) | (27,080) | (131,550) | (66,124) | ||||
Net income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 |
Comprehensive income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 |
Earnings per share: | ||||||||
Basic | $ | 2.07 | $ | 1.42 | $ | 5.83 | $ | 3.21 |
Diluted | $ | 1.99 | $ | 1.38 | $ | 5.62 | $ | 3.12 |
Weighted average common shares outstanding: | ||||||||
Basic | 70,301,085 | 68,977,965 | 70,130,853 | 68,179,403 | ||||
Diluted | 72,800,011 | 71,090,903 | 72,770,432 | 70,167,443 | ||||
Dividends declared per share | $ | 0.40 | $ | 0.31 | $ | 1.17 | $ | 0.92 |
September 30, 2021 |
December 31, 2020 |
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(Dollars in thousands, except per share amounts) |
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ASSETS | ||||
Homebuilding: | ||||
Cash and cash equivalents | $ | 761,715 | $ | 411,362 |
Restricted cash | 12,047 | 15,343 | ||
Trade and other receivables | 125,556 | 72,466 | ||
Inventories: | ||||
Housing completed or under construction | 1,948,211 | 1,486,587 | ||
Land and land under development | 1,464,603 | 1,345,643 | ||
Total inventories | 3,412,814 | 2,832,230 | ||
Property and equipment, net | 61,590 | 61,880 | ||
Deferred tax asset, net | 16,301 | 11,454 | ||
Prepaids and other assets | 105,860 | 101,685 | ||
Total homebuilding assets | 4,495,883 | 3,506,420 | ||
Financial Services: | ||||
Cash and cash equivalents | 93,884 | 77,267 | ||
Mortgage loans held-for-sale, net | 248,921 | 232,556 | ||
Other assets | 35,716 | 48,677 | ||
Total financial services assets | 378,521 | 358,500 | ||
Total Assets | $ | 4,874,404 | $ | 3,864,920 |
LIABILITIES AND EQUITY | ||||
Homebuilding: | ||||
Accounts payable | $ | 154,376 | $ | 98,862 |
Accrued and other liabilities | 334,712 | 300,735 | ||
Revolving credit facility | 10,000 | 10,000 | ||
Senior notes, net | 1,607,658 | 1,037,391 | ||
Total homebuilding liabilities | 2,106,746 | 1,446,988 | ||
Financial Services: | ||||
Accounts payable and accrued liabilities | 93,880 | 95,630 | ||
Mortgage repurchase facility | 215,794 | 202,390 | ||
Total financial services liabilities | 309,674 | 298,020 | ||
Total Liabilities | 2,416,420 | 1,745,008 | ||
Stockholders' Equity | ||||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | - | - | ||
Common stock, $0.01 par value; 250,000,000 shares authorized; 70,679,612 and 64,851,126 issued and outstanding at September 30, 2021 and December 31, 2020, respectively
|
707 | 649 | ||
Additional paid-in-capital | 1,697,435 | 1,407,597 | ||
Retained earnings | 759,842 | 711,666 | ||
Total Stockholders' Equity | 2,457,984 | 2,119,912 | ||
Total Liabilities and Stockholders' Equity | $ | 4,874,404 | $ | 3,864,920 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands) | ||||||||
Operating Activities: | ||||||||
Net income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation expense | 7,965 | 8,608 | 26,832 | 18,536 | ||||
Depreciation and amortization | 7,752 | 7,354 | 23,930 | 18,881 | ||||
Net loss on marketable equity securities | - | - | - | 8,285 | ||||
Gain on sale of other assets | (2,014) | - | (2,014) | - | ||||
Loss on debt retirement | 12,150 | - | 12,150 | - | ||||
Deferred income tax expense | (1,508) | 6,531 | (4,847) | 8,493 | ||||
Net changes in assets and liabilities: | ||||||||
Trade and other receivables | 1,576 | 5,933 | (55,529) | (17,512) | ||||
Mortgage loans held-for-sale, net | (62,835) | 13,061 | (16,365) | 36,515 | ||||
Housing completed or under construction | (75,407) | (153,440) | (461,105) | (387,269) | ||||
Land and land under development | (155,141) | 13,792 | (118,762) | 108,710 | ||||
Prepaids and other assets | 5,224 | (21,523) | 9,919 | (20,314) | ||||
Accounts payable and accrued liabilities | 17,678 | (5,516) | 88,273 | 35,023 | ||||
Net cash provided by (used in) operating activities | (98,606) | (26,262) | (86,522) | 29,442 | ||||
Investing Activities: | ||||||||
Purchases of marketable securities | - | - | - | (10,804) | ||||
Sales of marketable securities | - | - | - | 59,266 | ||||
Proceeds from sale of other assets | 2,014 | - | 2,014 | - | ||||
Purchases of property and equipment | (9,581) | (7,917) | (23,028) | (20,885) | ||||
Net cash provided by (used in) investing activities | (7,567) | (7,917) | (21,014) | 27,577 | ||||
Financing Activities: | ||||||||
Payments on mortgage repurchase facility, net | 51,113 | (11,233) | 13,404 | (18,755) | ||||
Payments on homebuilding line of credit, net | - | - | - | (5,000) | ||||
Repayment of senior notes | (136,394) | - | (136,394) | (250,000) | ||||
Proceeds from issuance of senior notes | 346,937 | - | 694,662 | 298,050 | ||||
Dividend payments | (28,276) | (21,374) | (83,189) | (63,056) | ||||
Payments of deferred financing costs | (901) | - | (1,720) | - | ||||
Issuance of shares under stock-based compensation programs, net | (19) | 28,642 | (15,553) | 29,974 | ||||
Net cash provided by (used in) financing activities | 232,460 | (3,965) | 471,210 | (8,787) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 126,287 | (38,144) | 363,674 | 48,232 | ||||
Cash, cash equivalents and restricted cash: | ||||||||
Beginning of period | 741,359 | 560,588 | 503,972 | 474,212 | ||||
End of period | $ | 867,646 | $ | 522,444 | $ | 867,646 | $ | 522,444 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||||||
Homebuilding: | ||||||||
Cash and cash equivalents | $ | 761,715 | $ | 432,277 | $ | 761,715 | $ | 432,277 |
Restricted cash | 12,047 | 19,732 | 12,047 | 19,732 | ||||
Financial Services: | - | |||||||
Cash and cash equivalents | 93,884 | 70,435 | 93,884 | 70,435 | ||||
Total cash, cash equivalents and restricted cash | $ | 867,646 | $ | 522,444 | $ | 867,646 | $ | 522,444 |
Three Months Ended September 30, | ||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price | ||||||||
(Dollars in thousands) | ||||||||||||||||
West | 1,376 | $ | 729,777 | $ | 530.4 | 1,135 | $ | 552,319 | $ | 486.6 | 21 | % | 32 | % | 9 | % |
Mountain | 666 | 379,041 | 569.1 | 677 | 347,095 | 512.7 | (2) | % | 9 | % | 11 | % | ||||
East | 377 | 148,883 | 394.9 | 335 | 101,135 | 301.9 | 13 | % | 47 | % | 31 | % | ||||
Total | 2,419 | $ | 1,257,701 | $ | 519.9 | 2,147 | $ | 1,000,549 | $ | 466.0 | 13 | % | 26 | % | 12 | % |
Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price | ||||||||
(Dollars in thousands) | ||||||||||||||||
West | 4,324 | $ | 2,194,071 | $ | 507.4 | 3,023 | $ | 1,447,934 | $ | 479.0 | 43 | % | 52 | % | 6 | % |
Mountain | 1,989 | 1,104,391 | 555.2 | 1,720 | 886,619 | 515.5 | 16 | % | 25 | % | 8 | % | ||||
East | 1,006 | 368,870 | 366.7 | 851 | 249,839 | 293.6 | 18 | % | 48 | % | 25 | % | ||||
Total | 7,319 | $ | 3,667,332 | $ | 501.1 | 5,594 | $ | 2,584,392 | $ | 462.0 | 31 | % | 42 | % | 8 | % |
Three Months Ended September 30, | ||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes | Dollar Value | Average Price |
Monthly Absorption Rate * |
Homes | Dollar Value | Average Price |
Monthly Absorption Rate |
|||||||||
(Dollars in thousands) | ||||||||||||||||||||
West | 1,437 | $ | 783,072 | $ | 544.9 | 4.91 | 1,955 | $ | 932,111 | $ | 476.8 | 6.58 | (26) | % | (16) | % | 14 | % | (25) | % |
Mountain | 505 | 323,018 | 639.6 | 2.99 | 1,051 | 542,375 | 516.1 | 5.70 | (52) | % | (40) | % | 24 | % | (48) | % | ||||
East | 457 | 199,985 | 437.6 | 3.67 | 509 | 176,896 | 347.5 | 5.39 | (10) | % | 13 | % | 26 | % | (32) | % | ||||
Total | 2,399 | $ | 1,306,075 | $ | 544.4 | 4.10 | 3,515 | $ | 1,651,382 | $ | 469.8 | 6.10 | (32) | % | (21) | % | 16 | % | (33) | % |
Nine Months Ended September 30, | ||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes | Dollar Value | Average Price |
Monthly Absorption Rate * |
Homes | Dollar Value | Average Price |
Monthly Absorption Rate |
|||||||||
(Dollars in thousands) | ||||||||||||||||||||
West | 4,814 | $ | 2,613,279 | $ | 542.8 | 5.42 | 4,646 | $ | 2,265,557 | $ | 487.6 | 5.47 | 4 | % | 15 | % | 11 | % | (1) | % |
Mountain | 2,222 | 1,375,442 | 619.0 | 4.35 | 2,502 | 1,309,176 | 523.3 | 4.39 | (11) | % | 5 | % | 18 | % | (1) | % | ||||
East | 1,286 | 558,716 | 434.5 | 3.91 | 1,156 | 393,913 | 340.8 | 4.23 | 11 | % | 42 | % | 27 | % | (8) | % | ||||
Total | 8,322 | $ | 4,547,437 | $ | 546.4 | 4.82 | 8,304 | $ | 3,968,646 | $ | 477.9 | 4.91 | - | % | 15 | % | 14 | % | (2) | % |
Average Active Subdivisions | Average Active Subdivisions | |||||||||||
Active Subdivisions | Three Months Ended | Nine Months Ended | ||||||||||
September 30, | % | September 30, | % | September 30, | % | |||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||
West | 104 | 102 | 2 | % | 98 | 99 | (1) | % | 99 | 94 | 5 | % |
Mountain | 56 | 61 | (8) | % | 56 | 62 | (10) | % | 57 | 63 | (10) | % |
East | 43 | 31 | 39 | % | 42 | 32 | 31 | % | 37 | 30 | 23 | % |
Total | 203 | 194 | 5 | % | 196 | 193 | 2 | % | 193 | 187 | 3 | % |
September 30, | ||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||
Homes |
Dollar Value |
Average Price |
Homes |
Dollar Value |
Average Price |
Homes |
Dollar Value |
Average Price |
||||||||
(Dollars in thousands) | ||||||||||||||||
West | 4,200 | $ | 2,295,570 | $ | 546.6 | 3,646 | $ | 1,743,547 | $ | 478.2 | 15 | % | 32 | % | 14 | % |
Mountain | 2,251 | $ | 1,408,945 | $ | 625.9 | 1,993 | $ | 1,033,264 | $ | 518.4 | 13 | % | 36 | % | 21 | % |
East | 1,207 | $ | 537,983 | $ | 445.7 | 872 | $ | 298,965 | $ | 342.9 | 38 | % | 80 | % | 30 | % |
Total | 7,658 | $ | 4,242,498 | $ | 554.0 | 6,511 | $ | 3,075,776 | $ | 472.4 | 18 | % | 38 | % | 17 | % |
September 30, | % | |||
2021 | 2020 | Change | ||
Unsold: | ||||
Completed | 21 | 74 | (72) | % |
Under construction | 345 | 129 | 167 | % |
Total unsold started homes | 366 | 203 | 80 | % |
Sold homes under construction or completed | 6,468 | 4,540 | 42 | % |
Model homes under construction or completed | 490 | 505 | (3) | % |
Total homes completed or under construction | 7,324 | 5,248 | 40 | % |
September 30, 2021 | September 30, 2020 | |||||||
Lots Owned |
Lots Optioned |
Total |
Lots Owned |
Lots Optioned |
Total |
Total % Change |
||
West | 14,209 | 5,811 | 20,020 | 10,140 | 3,280 | 13,420 | 49 | % |
Mountain | 6,258 | 4,236 | 10,494 | 6,217 | 2,708 | 8,925 | 18 | % |
East | 3,824 | 2,328 | 6,152 | 2,716 | 1,769 | 4,485 | 37 | % |
Total | 24,291 | 12,375 | 36,666 | 19,073 | 7,757 | 26,830 | 37 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||
(Dollars in thousands) | ||||||||||||
General and administrative expenses | $ | 59,935 | $ | 45,980 | $ | 13,955 | $ | 179,056 | $ | 131,488 | $ | 47,568 |
General and administrative expenses as apercentage of home sale revenues
|
4.8 | % | 4.6 | % | 20 bps | 4.9 | % | 5.1 | % | -20 bps | ||
Marketing expenses | $ | 25,660 | $ | 24,725 | $ | 935 | $ | 78,195 | $ | 68,828 | $ | 9,367 |
Marketing expenses as a percentage ofhome sale revenues
|
2.0 | % | 2.5 | % | -50 bps | 2.1 | % | 2.7 | % | -60 bps | ||
Commissions expenses | $ | 34,521 | $ | 32,927 | $ | 1,594 | $ | 106,719 | $ | 84,953 | $ | 21,766 |
Commissions expenses as a percentage ofhome sale revenues
|
2.7 | % | 3.3 | % | -60 bps | 2.9 | % | 3.3 | % | -40 bps | ||
Total selling, general and administrative expenses | $ | 120,116 | $ | 103,632 | $ | 16,484 | $ | 363,970 | $ | 285,269 | $ | 78,701 |
Total selling, general and administrativeexpenses as a percentage ofhome sale revenues
|
9.6 | % | 10.4 | % | -80 bps | 9.9 | % | 11.0 | % | -110 bps |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands) | ||||||||
Homebuilding interest incurred | $ | 19,108 | $ | 14,799 | $ | 53,849 | $ | 46,427 |
Less: Interest capitalized | (19,108) | (14,799) | (53,849) | (46,427) | ||||
Homebuilding interest expensed | $ | - | $ | - | $ | - | $ | - |
Interest capitalized, beginning of period | $ | 54,351 | $ | 56,929 | $ | 52,777 | $ | 55,310 |
Plus: Interest capitalized during period | 19,108 | 14,799 | 53,849 | 46,427 | ||||
Less: Previously capitalized interest included in home cost of sales | (16,024) | (16,511) | (49,191) | (46,520) | ||||
Interest capitalized, end of period | $ | 57,435 | $ | 55,217 | $ | 57,435 | $ | 55,217 |