Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operations are organized into two reportable segments: homebuilding and land development. The Company’s homebuilding operations construct and sell single-family homes, primarily in California. The homebuilding segment includes real estate of similar economic characteristics, including similar historical and expected future long-term gross margin percentages, similar product types, production processes and methods of distribution. The land development operations develop and sell lots, primarily in California, and include real estate of similar economic characteristics, including similar historical and expected future long-term gross margin percentages, similar product types, production processes and methods of distribution. The reportable segments follow the same accounting policies as the consolidated financial statements described in Note 2. Operating results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.

Financial information relating to reportable segments is as follows (in thousands): 

	December 31, 2013		December 31, 2012
Assets
Homebuilding	$	108,594	$	31,427
Land development	68,254		93,940
Corporate and other assets	90,472		12,167
Total	$	267,320	$	137,534

Corporate and Other Assets primarily include cash and cash equivalents which are maintained centrally and used according to the cash flow requirements of each of the two segments. The increase in cash and cash equivalents was a result of proceeds from the completion of the IPO.

	Year Ended December 31,
	2013			2012		2011
Revenue
Homebuilding	$	72,511		$	14,060	$	8,285
Land development	20,215			44,066		15,893
Total	92,726			58,126		24,178
Gross margin
Homebuilding	15,011			4,228		2,664
Land development	6,395			11,190		(1,387		)
Total	21,406			15,418		1,277
Sales and marketing	6,647			2,875		1,414
General and administrative	19,368			10,103		6,464
Other income	322			578		34
Net (loss) income	$	(4,287	)	$	3,018	$	(6,567	)

The Company evaluates the performance of the operating segments based upon gross margin. “Gross Margin” is defined as operating revenues (homebuilding and land development) less cost of sales (cost of construction and acquisition, interest, abandonment, impairment and other cost of sales related expenses). Corporate sales, general and administrative expense and other non-recurring gains or losses are reflected within overall corporate expenses as this constitutes the Company’s primary business objective supporting both segments; corporate expenses are not particularly identifiable to any one segment.. There is no intersegment activity.