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



	March 31, 2019
	NWHM		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	18,076	$	23,659	$	139	$	—		$	41,874
Restricted cash	—		116		—		—			116
Contracts and accounts receivable	10		17,447		—		(998		)	16,459
Intercompany receivables	210,665		—		—		(210,665		)	—
Due from affiliates	—		681		—		—			681
Real estate inventories	—		563,112		—		—			563,112
Investment in and advances to unconsolidated joint ventures	—		33,032		—		—			33,032
Investment in subsidiaries	401,754		—		—		(401,754		)	—
Other assets	20,175		15,194		—		(3		)	35,366
Total assets	$	650,680	$	653,241	$	139	$	(613,420	)	$	690,640

Liabilities and equity
Accounts payable	$	264	$	20,370	$	4	$	—		$	20,638
Accrued expenses and other liabilities	13,822		20,444		59		(993		)	33,332
Intercompany payables	—		210,665		—		(210,665		)	—
Due to affiliates	—		8		—		(8		)	—
Unsecured revolving credit facility	84,000		—		—		—			84,000
Senior notes, net	315,591		—		—		—			315,591
Total liabilities	413,677		251,487		63		(211,666		)	453,561
Stockholders' equity	237,003		401,754		—		(401,754		)	237,003
Non-controlling interest in subsidiary	—		—		76		—			76
Total equity	237,003		401,754		76		(401,754		)	237,079
Total liabilities and equity	$	650,680	$	653,241	$	139	$	(613,420	)	$	690,640



	December 31, 2018
	NWHM		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

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Three Months Ended March 31, 2019
	NWHM			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments		Consolidated NWHM
	(Dollars in thousands)
Revenues:
Home sales	$	—		$	99,186		$	—	$	—	$	99,186
Fee building	—			19,662			—		—		19,662
	—			118,848			—		—		118,848
Cost of Sales:
Home sales	—			86,569			—		—		86,569
Fee building	—			19,268			—		—		19,268
	—			105,837			—		—		105,837

Gross Margin:
Home sales	—			12,617			—		—		12,617
Fee building	—			394			—		—		394
	—			13,011			—		—		13,011
Selling and marketing expenses	—			(8,679		)	—		—		(8,679		)
General and administrative expenses	(566		)	(6,825		)	—		—		(7,391		)
Equity in net income of unconsolidated joint ventures	—			184			—		—		184
Equity in net loss of subsidiaries	(1,712		)	—			—		1,712		—
Gain on early extinguishment of debt	417			—			—		—		417
Other income (expense), net	(62		)	(131		)	—		—		(193		)
Pretax loss	(1,923		)	(2,440		)	—		1,712		(2,651		)
(Provision) benefit for income taxes	(64		)	728			—		—		664
Net loss	(1,987		)	(1,712		)	—		1,712		(1,987		)
Net income (loss) attributable to non-controlling interest in subsidiary	—			—			—		—		—
Net loss attributable to The New Home Company Inc.	$	(1,987	)	$	(1,712	)	$	—	$	1,712	$	(1,987	)



	Three Months Ended March 31, 2018
	NWHM			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated NWHM
	(Dollars in thousands)
Revenues:
Home sales	$	—		$	79,437		$	—		$	—	$	79,437
Fee building	—			43,794			—			—		43,794
	—			123,231			—			—		123,231
Cost of Sales:
Home sales	—			69,670			24			—		69,694
Fee building	—			42,699			—			—		42,699
	—			112,369			24			—		112,393

Gross Margin:
Home sales	—			9,767			(24		)	—		9,743
Fee building	—			1,095			—			—		1,095
	—			10,862			(24		)	—		10,838
Selling and marketing expenses	—			(6,639		)	—			—		(6,639		)
General and administrative expenses	(1,106		)	(4,913		)	—			—		(6,019		)
Equity in net income of unconsolidated joint ventures	—			335			—			—		335
Equity in net loss of subsidiaries	(118		)	—			—			118		—
Other income (expense), net	111			(137		)	—			—		(26		)
Pretax loss	(1,113		)	(492		)	(24		)	118		(1,511		)
Benefit for income taxes	473			387			—			—		860
Net loss	(640		)	(105		)	(24		)	118		(651		)
Net loss attributable to non-controlling interest in subsidiary	—			—			11			—		11
Net loss attributable to The New Home Company Inc.	$	(640	)	$	(105	)	$	(13	)	$	118	$	(640	)

SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



	Three Months Ended March 31, 2019
	NWHM			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Net cash (used in) provided by operating activities	$	(14,259	)	$	2,035		$	(8	)	$	—		$	(12,232	)
Investing activities:
Purchases of property and equipment	—			(5		)	—			—			(5		)
Contributions and advances to unconsolidated joint ventures	—			(1,335		)	—			—			(1,335		)
Contributions to subsidiaries from corporate	(46,000		)	—			—			46,000			—
Distributions of capital from subsidiaries	39,000			—			—			(39,000		)	—
Distributions of capital and repayment of advances from unconsolidated joint ventures	—			2,562			—			—			2,562
Net cash (used in) provided by investing activities	$	(7,000	)	$	1,222		$	—		$	7,000		$	1,222
Financing activities:
Borrowings from credit facility	30,000			—			—			—			30,000
Repayments of credit facility	(13,500		)	—			—			—			(13,500		)
Repurchase of senior notes	(4,512		)	—			—			—			(4,512		)
Contributions to subsidiaries from corporate	—			46,000			—			(46,000		)	—
Distributions to corporate from subsidiaries	—			(39,000		)	—			39,000			—
Repurchases of common stock	(1,042		)	—			—			—			(1,042		)
Tax withholding paid on behalf of employees for stock awards	(488		)	—			—			—			(488		)
Net cash provided by financing activities	$	10,458		$	7,000		$	—		$	(7,000	)	$	10,458
Net (decrease) increase in cash, cash equivalents and restricted cash	(10,801		)	10,257			(8		)	—			(552		)
Cash, cash equivalents and restricted cash – beginning of period	28,877			13,518			147			—			42,542
Cash, cash equivalents and restricted cash – end of period	$	18,076		$	23,775		$	139		$	—		$	41,990



	Three Months Ended March 31, 2018
	NWHM			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated NWHM
	(Dollars in thousands)
Net cash used in operating activities	$	(14,743	)	$	(14,693	)	$	(6	)	$	—		$	(29,442	)
Investing activities:
Purchases of property and equipment	(6		)	(66		)	—			—			(72		)
Cash assumed from joint venture at consolidation	—			(4,273		)	—			—			(4,273		)
Contributions to subsidiaries from corporate	(56,185		)	—			—			56,185			—
Distributions of capital from subsidiaries	21,175			—			—			(21,175		)	—
Distributions of capital and repayment of advances from unconsolidated joint ventures	—			2,264			—			—			2,264
Interest collected on advances to unconsolidated joint ventures	—			129			—			—			129
Net cash used in investing activities	$	(35,016	)	$	(1,946	)	$	—		$	35,010		$	(1,952	)
Financing activities:
Contributions to subsidiaries from corporate	—			56,185			—			(56,185		)	—
Distributions to corporate from subsidiaries	—			(21,175		)	—			21,175			—
Tax withholding paid on behalf of employees for stock awards	(954		)	—			—			—			(954		)
Net cash (used in) provided by financing activities	$	(954	)	$	35,010		$	—		$	(35,010	)	$	(954	)
Net increase (decrease) in cash, cash equivalents and restricted cash	(50,713		)	18,371			(6		)	—			(32,348		)
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	$	48,873		$	42,567		$	182		$	—		$	91,622