Supplemental Guarantor Information

The Company's 7.25% Senior Notes due 2022 (the "Notes") are guaranteed, on an unsecured basis, jointly and severally, by all of the Company's 100% owned subsidiaries (collectively, the "Guarantors"). The guarantees are full and unconditional. The Indenture governing the Notes provides that the guarantees of a Guarantor will be automatically and unconditionally released and discharged: (1) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the equity interests of such Guarantor after which the applicable Guarantor is no longer a "Restricted Subsidiary" (as defined in the Indenture), which sale, transfer, exchange or other disposition is made in compliance with applicable provisions of the Indenture; (2) upon the proper designation of such Guarantor as an "Unrestricted Subsidiary" (as defined in the Indenture), in accordance with the Indenture; (3) upon request of the Company and certification in an officers’ certificate provided to the trustee that the applicable Guarantor has become an "Immaterial Subsidiary" (as defined in the indenture), so long as such Guarantor would not otherwise be required to provide a guarantee pursuant to the Indenture; provided that, if immediately after giving effect to such release the consolidated tangible assets of all Immaterial Subsidiaries that are not Guarantors would exceed 5.0% of consolidated tangible assets, no such release shall occur, (4) if the Company exercises its legal defeasance option or covenant defeasance option under the Indenture or if the obligations of the Company and the Guarantors are discharged in compliance with applicable provisions of the Indenture, upon such exercise or discharge; (5) unless a default has occurred and is continuing, upon the release or discharge of such Guarantor from its guarantee of any indebtedness for borrowed money of the Company and the Guarantors so long as such Guarantor would not then otherwise be required to provide a guarantee pursuant to the Indenture; or (6) upon the full satisfaction of the Company’s obligations under the Indenture; provided that in each case if such Guarantor has incurred any indebtedness in reliance on its status as a Guarantor in compliance with applicable provisions of the Indenture, such Guarantor’s obligations under such indebtedness, as the case may be, so incurred are satisfied in full and discharged or are otherwise permitted to be incurred by a Restricted Subsidiary (other than a Guarantor) in compliance with applicable provisions of the Indenture. The Company has determined that separate, full financial statements of the Guarantors would not be material to investors and, accordingly, supplemental financial information for the guarantors is presented.

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2018
	NWHM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	28,877	$	13,249	$	147	$	—		$	42,273
Restricted cash	—		269		—		—			269
Contracts and accounts receivable	7		18,926		—		(668		)	18,265
Intercompany receivables	192,341		—		—		(192,341		)	—
Due from affiliates	—		1,218		—		—			1,218
Real estate inventories	—		566,290		—		—			566,290
Investment in and advances to unconsolidated joint ventures	—		34,330		—		—			34,330
Investment in subsidiaries	396,466		—		—		(396,466		)	—
Other assets	18,643		14,812		—		(3		)	33,452
Total assets	$	636,334	$	649,094	$	147	$	(589,478	)	$	696,097

Liabilities and equity
Accounts payable	$	240	$	39,151	$	—	$	—		$	39,391
Accrued expenses and other liabilities	8,492		21,129		71		(664		)	29,028
Intercompany payables	—		192,341		—		(192,341		)	—
Due to affiliates	—		7		—		(7		)	—
Unsecured revolving credit facility	67,500		—		—		—			67,500
Senior notes, net	320,148		—		—		—			320,148
Total liabilities	396,380		252,628		71		(193,012		)	456,067
Stockholders' equity	239,954		396,466		—		(396,466		)	239,954
Non-controlling interest in subsidiary	—		—		76		—			76
Total equity	239,954		396,466		76		(396,466		)	240,030
Total liabilities and equity	$	636,334	$	649,094	$	147	$	(589,478	)	$	696,097



	December 31, 2017
	NWHM Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	99,586	$	23,772	$	188	$	—		$	123,546
Restricted cash	—		424		—		—			424
Contracts and accounts receivable	10		24,238		—		(1,024		)	23,224
Intercompany receivables	129,414		—		—		(129,414		)	—
Due from affiliates	—		1,060		—		—			1,060
Real estate inventories	—		416,143		—		—			416,143
Investment in and advances to unconsolidated joint ventures	—		55,824		—		—			55,824
Investment in subsidiaries	356,443		—		—		(356,443		)	—
Other assets	8,464		15,827		—		—			24,291
Total assets	$	593,917	$	537,288	$	188	$	(486,881	)	$	644,512

Liabilities and equity
Accounts payable	$	237	$	23,479	$	6	$	—		$	23,722
Accrued expenses and other liabilities	11,034		27,954		80		(1,014		)	38,054
Intercompany payables	—		129,414		—		(129,414		)	—
Due to affiliates	—		10		—		(10		)	—
Senior notes, net	318,656		—		—		—			318,656
Total liabilities	329,927		180,857		86		(130,438		)	380,432
Stockholders' equity	263,990		356,431		12		(356,443		)	263,990
Non-controlling interest in subsidiary	—		—		90		—			90
Total equity	263,990		356,431		$	102	(356,443		)	264,080
Total liabilities and equity	$	593,917	$	537,288	$	188	$	(486,881	)	$	644,512

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2018
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated NWHM
	(Dollars in thousands)
Revenues:
Home sales	$	—		$	504,029		$	—		$	—	$	504,029
Fee building	—			163,537			—			—		163,537
	—			667,566			—			—		667,566
Cost of Sales:
Home sales	—			436,508			22			—		436,530
Home sales impairments	—			10,000			—			—		10,000
Fee building	—			159,136			—			—		159,136
	—			605,644			22			—		605,666

Gross Margin:
Home sales	—			57,521			(22		)	—		57,499
Fee building	—			4,401			—			—		4,401
	—			61,922			(22		)	—		61,900
Selling and marketing expenses	—			(36,065		)	—			—		(36,065		)
General and administrative expenses	4,330			(30,293		)	(3		)	—		(25,966		)
Equity in net loss of unconsolidated joint ventures	—			(19,653		)	—			—		(19,653		)
Equity in net loss of subsidiaries	(17,372		)	—			—			17,372		—
Other income (expense), net	(66		)	(455		)	—			—		(521		)
Pretax loss	(13,108		)	(24,544		)	(25		)	17,372		(20,305		)
(Provision) benefit for income taxes	(1,108		)	7,183			—			—		6,075
Net loss	(14,216		)	(17,361		)	(25		)	17,372		(14,230		)
Net loss attributable to non-controlling interest in subsidiary	—			—			14			—		14
Net loss attributable to The New Home Company Inc.	$	(14,216	)	$	(17,361	)	$	(11	)	$	17,372	$	(14,216	)



	Year Ended December 31, 2017
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Revenues:
Home sales	$	—		$	560,842		$	—		$	—		$	560,842
Fee building	—			190,324			—			—			190,324
	—			751,166			—			—			751,166
Cost of Sales:
Home sales	—			473,181			32			—			473,213
Home sales impairments	—			2,200			—			—			2,200
Fee building	—			184,827			—			—			184,827
	—			660,208			32			—			660,240

Gross Margin:
Home sales	—			85,461			(32		)	—			85,429
Fee building	—			5,497			—			—			5,497
	—			90,958			(32		)	—			90,926
Selling and marketing expenses	—			(32,702		)	—			—			(32,702		)
General and administrative expenses	(2,403		)	(23,927		)	—			—			(26,330		)
Equity in net income of unconsolidated joint ventures	—			866			—			—			866
Equity in net income of subsidiaries	21,773			—			—			(21,773		)	—
Other income (expense), net	107			(336		)	—			—			(229		)
Pretax income (loss)	19,477			34,859			(32		)	(21,773		)	32,531
Provision for income taxes	(2,325		)	(13,065		)	—			—			(15,390		)
Net income (loss)	17,152			21,794			(32		)	(21,773		)	17,141
Net loss attributable to non-controlling interest in subsidiary	—			—			11			—			11
Net income (loss) attributable to The New Home Company Inc.	$	17,152		$	21,794		$	(21	)	$	(21,773	)	$	17,152



	Year Ended December 31, 2016
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Revenues:
Home sales	$	—		$	502,792		$	5,157		$	—		$	507,949
Fee building	—			186,662			—			(155		)	186,507
	—			689,454			5,157			(155		)	694,456
Cost of Sales:
Home sales	—			428,881			4,678			—			433,559
Home sales impairments	—			2,350			—			—			2,350
Land sales impairment	—			1,150			—			—			1,150
Fee building	2,240			175,863			—			—			178,103
	2,240			608,244			4,678			—			615,162

Gross Margin:
Home sales	—			71,561			479			—			72,040
Land sales	—			(1,150		)	—			—			(1,150		)
Fee building	(2,240		)	10,799			—			(155		)	8,404
	(2,240		)	81,210			479			(155		)	79,294
Selling and marketing expenses	—			(26,058		)	(686		)	—			(26,744		)
General and administrative expenses	(14,719		)	(11,163		)	—			—			(25,882		)
Equity in net income of unconsolidated joint ventures	—			7,691			—			—			7,691
Equity in net income of subsidiaries	32,091			—			—			(32,091		)	—
Other income (expense), net	(119		)	(303		)	(142		)	155			(409		)
Pretax income (loss)	15,013			51,377			(349		)	(32,091		)	33,950
Benefit (provision) for income taxes	6,009			(19,033		)	—			—			(13,024		)
Net income (loss)	21,022			32,344			(349		)	(32,091		)	20,926
Net loss attributable to non-controlling interest in subsidiary	—			—			96			—			96
Net income (loss) attributable to The New Home Company Inc.	$	21,022		$	32,344		$	(253	)	$	(32,091	)	$	21,022

SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2018
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Net cash used in operating activities	$	(63,076	)	$	(71,789	)	$	(41	)	$	(4,779	)	$	(139,685	)
Investing activities:
Purchases of property and equipment	(49		)	(197		)	—			—			(246		)
Contributions and advances to unconsolidated joint ventures	—			(15,066		)	—			—			(15,066		)
Contributions to subsidiaries from corporate	(249,435		)	—			—			249,435			—
Distributions of capital from subsidiaries	183,896			—			—			(183,896		)	—
Distributions of capital and repayment of advances to unconsolidated joint ventures	—			15,436			—			—			15,436
Interest collected on advances to unconsolidated joint ventures	—			178			—			—			178
Net cash (used in) provided by investing activities	$	(65,588	)	$	351		$	—		$	65,539		$	302
Financing activities:
Borrowings from credit facility	150,000			—			—			—			150,000
Repayments of credit facility	(82,500		)	—			—			—			(82,500		)
Contributions to subsidiaries from corporate	—			249,435			—			(249,435		)	—
Distributions to corporate from subsidiaries	—			(188,675		)	—			188,675			—
Repurchase of common stock	(8,563		)	—			—			—			(8,563		)
Tax withholding paid on behalf of employees for stock awards	(982		)	—			—			—			(982		)
Net cash provided by financing activities	$	57,955		$	60,760		$	—		$	(60,760	)	$	57,955
Net decrease in cash, cash equivalents and restricted cash	(70,709		)	(10,678		)	(41		)	—			(81,428		)
Cash, cash equivalents and restricted cash – beginning of period	99,586			24,196			188			—			123,970
Cash, cash equivalents and restricted cash – end of period	$	28,877		$	13,518		$	147		$	—		$	42,542



	Year Ended December 31, 2017
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Net cash used in operating activities	$	(31,824	)	$	(41,900	)	$	(81	)	$	(17,058	)	$	(90,863	)
Investing activities:
Purchases of property and equipment	(71		)	(124		)	—			—			(195		)
Cash assumed from joint venture at consolidation	—			995			—			—			995
Contributions and advances to unconsolidated joint ventures	—			(27,479		)	—			—			(27,479		)
Contributions to subsidiaries from corporate	(275,794		)	—			—			275,794			—
Distributions of capital from subsidiaries	192,478			—			—			(192,478		)	—
Distributions of capital and repayment of advances to unconsolidated joint ventures	—			15,577			—			—			15,577
Interest collected on advances to unconsolidated joint ventures	—			552			—			—			552
Net cash used in investing activities	$	(83,387	)	$	(10,479	)	$	—		$	83,316		$	(10,550	)
Financing activities:
Borrowings from credit facility	88,000			—			—			—			88,000
Repayments of credit facility	(206,000		)	—			—			—			(206,000		)
Proceeds from senior notes	324,465			—			—			—			324,465
Repayments of other notes payable	—			(4,110		)	—			—			(4,110		)
Payment of debt issuance costs	(7,565		)	—			—			—			(7,565		)
Contributions to subsidiaries from corporate	—			275,794			—			(275,794		)	—
Distributions to corporate from subsidiaries	—			(209,536		)	—			209,536			—
Tax withholding paid on behalf of employees for stock awards	(590		)	—			—			—			(590		)
Proceeds from exercise of stock options	102			—			—			—			102
Net cash provided by financing activities	$	198,412		$	62,148		$	—		$	(66,258	)	$	194,302
Net increase (decrease) in cash, cash equivalents and restricted cash	83,201			9,769			(81		)	—			92,889
Cash, cash equivalents and restricted cash – beginning of period	16,385			14,427			269			—			31,081
Cash, cash equivalents and restricted cash – end of period	$	99,586		$	24,196		$	188		$	—		$	123,970



	Year Ended December 31, 2016
	NWHM Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Net cash (used in) provided by operating activities	$	(7,041	)	$	(12,149	)	$	3,272		$	(26,894	)	$	(42,812	)
Investing activities:
Purchases of property and equipment	(193		)	(246		)	—			—			(439		)
Cash assumed from joint venture at consolidation	—			2,610			—			—			2,610
Contributions and advances to unconsolidated joint ventures	—			(15,088		)	—			—			(15,088		)
Contributions to subsidiaries from corporate	(225,169		)	—			—			225,169			—
Distributions of capital from subsidiaries	189,392			725			—			(190,117		)	—
Distributions of capital from unconsolidated joint ventures	—			15,307			—			—			15,307
Net cash (used in) provided by investing activities	$	(35,970	)	$	3,308		$	—		$	35,052		$	2,390
Financing activities:
Borrowings from credit facility	223,050			—			—			—			223,050
Repayments of credit facility	(179,974		)	—			—			—			(179,974		)
Borrowings from other notes payable	—			—			343			—			343
Repayments of other notes payable	—			(13,135		)	(2,501		)	—			(15,636		)
Payment of debt issuance costs	(1,064		)	—			—			—			(1,064		)
Cash distributions to non-controlling interest in subsidiary	—			—			(725		)	—			(725		)
Contributions to subsidiaries from corporate	—			225,169			—			(225,169		)	—
Distributions to corporate from subsidiaries	—			(216,286		)	(725		)	217,011			—
Tax withholding paid on behalf of employees for stock awards	(648		)	—			—			—			(648		)
Excess income tax provision from stock-based compensation	(97		)	—			—			—			(97		)
Net cash provided by (used in) financing activities	$	41,267		$	(4,252	)	$	(3,608	)	$	(8,158	)	$	25,249
Net decrease in cash, cash equivalents and restricted cash	(1,744		)	(13,093		)	(336		)	—			(15,173		)
Cash, cash equivalents and restricted cash – beginning of period	18,129			27,520			605			—			46,254
Cash, cash equivalents and restricted cash – end of period	$	16,385		$	14,427		$	269		$	—		$	31,081