The New Home Co. (NWHM) Reports Selected Q3 Results

The New Home Company Inc. (NYSE: NWHM) today announced selected preliminary results for the 2020 third quarter. These estimated results are preliminary and unaudited.

Preliminary 2020 Third Quarter Financial Highlights (Estimated Results)

• 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
• September net new orders of 99, a 106% increase compared to September 2019
• Homes in backlog of 329 homes, representing $207.1 million in backlog value, as compared to 207 homes at the end of the 2019 third quarter, a 59% increase
• Ending actively selling community count of 25, a 14% increase compared to the end of the 2019 third quarter
• Homes sales revenue of $117.4 million as compared to $118.8 million for the 2019 third quarter
  • Deliveries of 157 as compared to 124 in the 2019 third quarter, a 27% increase
  • Average sales price of $748,000 as compared to $958,000 in the 2019 third quarter
• Fee building revenues of $13.4 million as compared to $22.3 million for the 2019 third quarter
• Cash and cash equivalents of $126.4 million as of September 30, 2020 as compared to $85.6 million as of June 30, 2020
• Total debt, net of $290.3 million as compared to $327.4 million as of September 30, 2019

“The New Home Company continues to benefit from an incredibly strong housing market, as September’s order activity represented the highest monthly net order total in our company’s history driven by a monthly sales absorption rate of 4.0 per community,” said New Home Company CEO Leonard Miller. “Our preliminary results in the third quarter were also positively impacted by our ongoing shift to more affordable product, which helped push our monthly sales absorption pace to 3.5 homes per community for the 2020 third quarter and allowed us to raise prices at the vast majority of our communities. For the 2020 third quarter, we expect to exceed the high end of our previously issued gross margin guidance of 12.5%. With the changes we’ve made to our product positioning, our improving margin profile in backlog and our strengthening balance sheet, we believe The New Home Company is poised to end 2020 on a strong note and carry the momentum into the new year.”

We have provided the above preliminary estimated financial results because our financial closing procedures for the three months ended September 30, 2020 are not yet complete. The preliminary estimated financial information set forth above does not represent a comprehensive statement of our results of operations or financial condition as of or for the three months ended September 30, 2020 and is based solely on information available to us as of the date of this press release. Our results of operations and financial condition as of and for the three months ended September 30, 2020 may vary from our current expectations and may be different from the information described above as our quarterly financial statement preparation process is not yet complete and additional developments and adjustments may arise between now and the time the financial statements and other disclosures for this period are finalized, including all disclosures required by GAAP. In addition, these preliminary estimates are not necessarily indicative of the results to be achieved for the remainder of 2020 or in any future period. There can be no assurance that these estimates will be realized, and estimates are subject to risks and uncertainties, many of which are not within our control. The foregoing information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP or as a measure of performance. Accordingly, you should not place undue reliance on such preliminary estimated financial information. Our preliminary estimated financial results are forward-looking statements.

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