Dream Finders Holdings (DFH) Misses Q1 EPS by 1c, Revenues Miss
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Dream Finders Holdings (NASDAQ: DFH) reported Q1 EPS of $0.18, $0.01 worse than the analyst estimate of $0.19. Revenue for the quarter came in at $343.6 million versus the consensus estimate of $350.23 million.
First Quarter 2021 Highlights and Results
- Total revenues were $343.6 million, an increase of 82.0% when compared to the $188.7 million in the first quarter of 2020. Home closings increased to 1,002 homes for the first quarter of 2021, a 94.6% increase over the 515 home closings in the first quarter of 2020. Average selling price per home closed (“ASP”) in the first quarter of 2021 was $335,986 compared to $362,591 for the first quarter of 2020. The decrease in ASP was primarily attributable to the impact of a full quarter of H&H Homes with 343 home closings
- Gross margin as a percentage of homes sales revenues was 14.9%, an increase of 210 basis points when compared to the first quarter of 2020 gross margin percentage of 12.8%. Margin expansion was primarily driven by increases in the sales prices of comparable homes closed when compared to the first quarter of 2020, a lower cost of funds and the Company achieving scale through additional units in certain of its operating segments
- Pre-tax income, net of income attributable to non-controlling interests, was $20.9 million, an increase of 218.2% when compared to the $6.6 million generated in the first quarter of 2020
- Net profit margin as a percentage of total revenues was 4.7%, an increase of 120 basis points when compared to the first quarter of 2020 net profit margin percentage of 3.5%
- Net new orders increased to a record 2,010 homes, an increase of 137.0% over the net new orders of 848 in the first quarter of 2020
- The cancellation rate for the first quarter of 2021 was 8.1%, a decrease of 370 basis points from the 11.8% in the first quarter of 2020
- Controlled lots at March 31, 2021 were 22,591 compared to 19,276 lots controlled at December 31, 2020, a sequential quarterly increase of 17.2%
- Active community count at the end of the first quarter of 2021 was 120, an increase of 44.6% over the 83 active communities at the end of the first quarter of 2020. Active community count at the end of 2020 was 126, resulting in an absorption rate of 5.3 per month in the first quarter of 2021
- Homes in backlog at the end of the first quarter of 2021 were 3,612, valued at $1,356.4 million, increases of 212.7% and 207.0%, respectively, over the 1,155 homes in backlog valued at $441.9 million at the end of the first quarter of 2020
- Return on equity was 37.4% for the trailing twelve months ended March 31, 2021, compared to 36.7% for the trailing twelve months ended March 31, 2020
Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, “Our first quarter results represent an outstanding start to the year for our Company. We continue to see strength in the housing markets in which we operate, driven by low interest rates and favorable demographic and migration trends. Our disciplined asset-light strategy is facilitating the growth in our controlled lot supply and allowing the Company to quickly react to market opportunities to increase homebuilding margin. Given the size of our backlog at March 31, 2021 and 736 net new orders in the month of April, we are optimistic about delivering on our 2021 business plan.”
For earnings history and earnings-related data on Dream Finders Holdings (DFH) click here.
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