CURRENT REPORT | ||
Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934 |
(Exact name of registrant as specified in its charter) | ||||||||||||||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
of incorporation) | File Number) | Identification No.) |
N/A | ||
(Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description of Exhibit | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document).* |
By: | /s/ Ann Marie W. Hunker | ||||
Ann Marie W. Hunker | |||||
VP, Chief Accounting Officer and Controller | |||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
New contracts | 1,744 | 2,128 | 9,084 | 9,427 | |||||||||||||||||||
Average community count | 176 | 205 | 183 | 215 | |||||||||||||||||||
Cancellation rate | 10 | % | 10 | % | 8 | % | 11 | % | |||||||||||||||
Backlog units | 4,835 | 4,389 | 4,835 | 4,389 | |||||||||||||||||||
Backlog sales value | $ | 2,366,873 | $ | 1,836,907 | $ | 2,366,873 | $ | 1,836,907 | |||||||||||||||
Homes delivered | 2,316 | 2,242 | 8,638 | 7,709 | |||||||||||||||||||
Average home closing price | $ | 443 | $ | 389 | $ | 420 | $ | 381 | |||||||||||||||
Homebuilding revenue: | |||||||||||||||||||||||
Housing revenue | $ | 1,026,082 | $ | 872,814 | $ | 3,630,469 | $ | 2,939,962 | |||||||||||||||
Land revenue | 2,721 | 8,061 | 13,390 | 19,170 | |||||||||||||||||||
Total homebuilding revenue | $ | 1,028,803 | $ | 880,875 | $ | 3,643,859 | $ | 2,959,132 | |||||||||||||||
Financial services revenue | 22,949 | 25,552 | 102,028 | 87,013 | |||||||||||||||||||
Total revenue | $ | 1,051,752 | $ | 906,427 | $ | 3,745,887 | $ | 3,046,145 | |||||||||||||||
Cost of sales - operations | 808,150 | 689,245 | 2,836,972 | 2,361,367 | |||||||||||||||||||
Cost of sales - impairment | — | 8,435 | — | 8,435 | |||||||||||||||||||
Gross margin | $ | 243,602 | $ | 208,747 | $ | 908,915 | $ | 676,343 | |||||||||||||||
General and administrative expense | 48,306 | 53,784 | 192,009 | 177,547 | |||||||||||||||||||
Selling expense | 55,231 | 52,041 | 198,610 | 179,535 | |||||||||||||||||||
Operating income | $ | 140,065 | $ | 102,922 | $ | 518,296 | $ | 319,261 | |||||||||||||||
Other income | (1,901) | (159) | (2,046) | (466) | |||||||||||||||||||
Interest expense | 602 | 1,230 | 2,156 | 9,684 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 9,072 | — | |||||||||||||||||||
Income before income taxes | $ | 141,364 | $ | 101,851 | $ | 509,114 | $ | 310,043 | |||||||||||||||
Provision for income taxes | 27,981 | 21,768 | 112,246 | 70,169 | |||||||||||||||||||
Net income | $ | 113,383 | $ | 80,083 | $ | 396,868 | $ | 239,874 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 3.93 | $ | 2.78 | $ | 13.64 | $ | 8.38 | |||||||||||||||
Diluted | $ | 3.83 | $ | 2.71 | $ | 13.28 | $ | 8.23 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 28,833 | 28,776 | 29,092 | 28,610 | |||||||||||||||||||
Diluted | 29,612 | 29,507 | 29,880 | 29,152 |
As of | |||||||||||
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Assets: | |||||||||||
Total cash, cash equivalents and restricted cash | $ | 236,368 | $ | 260,810 | |||||||
Mortgage loans held for sale | 275,655 | 234,293 | |||||||||
Inventory: | |||||||||||
Lots, land and land development | 1,125,738 | 868,288 | |||||||||
Land held for sale | 4,312 | 4,623 | |||||||||
Homes under construction | 1,187,341 | 898,966 | |||||||||
Other inventory | 135,043 | 144,731 | |||||||||
Total Inventory | $ | 2,452,434 | $ | 1,916,608 | |||||||
Property and equipment - net | 37,648 | 26,612 | |||||||||
Operating lease right-of-use assets | 50,950 | 52,291 | |||||||||
Goodwill | 16,400 | 16,400 | |||||||||
Investments in joint venture arrangements | 57,121 | 34,673 | |||||||||
Deferred income tax asset | 10,251 | 6,183 | |||||||||
Other assets | 103,026 | 95,175 | |||||||||
Total Assets | $ | 3,239,853 | $ | 2,643,045 | |||||||
Liabilities: | |||||||||||
Debt - Homebuilding Operations: | |||||||||||
Senior notes due 2025 - net | $ | — | $ | 247,613 | |||||||
Senior notes due 2028 - net | 395,331 | 394,557 | |||||||||
Senior notes due 2030 - net | 295,937 | — | |||||||||
Notes payable - other | 4,549 | 4,072 | |||||||||
Total Debt - Homebuilding Operations | $ | 695,817 | $ | 646,242 | |||||||
Notes payable bank - financial services operations | 266,160 | 225,634 | |||||||||
Total Debt | $ | 961,977 | $ | 871,876 | |||||||
Accounts payable | 244,505 | 185,669 | |||||||||
Operating lease liabilities | 51,497 | 52,474 | |||||||||
Other liabilities | 357,690 | 274,328 | |||||||||
Total Liabilities | $ | 1,615,669 | $ | 1,384,347 | |||||||
Shareholders’ Equity | 1,624,184 | 1,258,698 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 3,239,853 | $ | 2,643,045 | |||||||
Book value per common share | $ | 56.99 | $ | 43.68 | |||||||
Homebuilding debt / capital ratio(1) | 30 | % | 34 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cash provided by (used in) operating activities | $ | 17,518 | $ | (28,892) | $ | (16,823) | $ | 168,334 | |||||||||||||||
Cash used in investing activities | $ | (19,799) | $ | (2,543) | $ | (51,722) | $ | (33,870) | |||||||||||||||
Cash provided by financing activities | $ | 17,492 | $ | 89,733 | $ | 44,103 | $ | 120,263 | |||||||||||||||
Land/lot purchases | $ | 156,307 | $ | 148,126 | $ | 630,120 | $ | 414,950 | |||||||||||||||
Land development spending | $ | 140,640 | $ | 95,732 | $ | 421,824 | $ | 318,336 | |||||||||||||||
Land sale revenue | $ | 2,721 | $ | 8,061 | $ | 13,390 | $ | 19,170 | |||||||||||||||
Land sale gross profit | $ | 707 | $ | 738 | $ | 3,228 | $ | 989 | |||||||||||||||
Financial services pre-tax income | $ | 10,775 | $ | 14,821 | $ | 58,379 | $ | 50,468 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | 113,383 | $ | 80,083 | $ | 396,868 | $ | 239,874 | |||||||||||||||
Add: | |||||||||||||||||||||||
Provision for income taxes | 27,981 | 21,768 | 112,246 | 70,169 | |||||||||||||||||||
Interest (income) expense | (677) | 333 | (1,950) | 6,168 | |||||||||||||||||||
Interest amortized to cost of sales | 7,974 | 9,559 | 33,829 | 32,686 | |||||||||||||||||||
Depreciation and amortization | 4,378 | 4,564 | 16,915 | 17,578 | |||||||||||||||||||
Non-cash charges | 2,360 | 10,313 | 10,437 | 16,685 | |||||||||||||||||||
Adjusted EBITDA | $ | 155,399 | $ | 126,620 | $ | 568,345 | $ | 383,160 |
Three Months Ended | Twelve months ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Income before income taxes | $ | 141,364 | $ | 101,851 | $ | 509,114 | $ | 310,043 | |||||||||||||||
Add: Impairment (2) | — | 8,435 | — | 8,435 | |||||||||||||||||||
Add: Stucco-related charges (3) | — | 860 | — | 860 | |||||||||||||||||||
Add: Loss on early extinguishment of debt (4) | — | — | 9,072 | — | |||||||||||||||||||
Adjusted income before income taxes | $ | 141,364 | $ | 111,146 | $ | 518,186 | $ | 319,338 | |||||||||||||||
Net income | $ | 113,383 | $ | 80,083 | $ | 396,868 | $ | 239,874 | |||||||||||||||
Add: Impairment - net of tax (2) | — | 6,411 | — | 6,411 | |||||||||||||||||||
Add: Stucco-related charges - net of tax (3) | — | 654 | — | 654 | |||||||||||||||||||
Add: Loss on early extinguishment of debt (4) | — | — | 6,985 | — | |||||||||||||||||||
Adjusted net income | $ | 113,383 | $ | 87,148 | $ | 403,853 | $ | 246,939 | |||||||||||||||
Impairment - net of tax (2) | $ | — | $ | 6,411 | $ | — | $ | 6,411 | |||||||||||||||
Stucco-related charges - net of tax (3) | $ | — | $ | 654 | $ | — | $ | 654 | |||||||||||||||
Loss on early extinguishment of debt (4) | $ | — | $ | — | $ | 6,985 | $ | — | |||||||||||||||
Divided by: Diluted weighted average shares outstanding | 29,612 | 29,507 | 29,880 | 29,152 | |||||||||||||||||||
Diluted earnings per share related to impairment (2) | $ | — | $ | 0.22 | $ | — | $ | 0.22 | |||||||||||||||
Diluted earnings per share related to stucco-related charges (3) | — | 0.02 | — | 0.02 | |||||||||||||||||||
Diluted earnings per share related to loss on early extinguishment of debt (4) | — | — | 0.23 | — | |||||||||||||||||||
Add: Diluted earnings per share | 3.83 | 2.71 | 13.28 | 8.23 | |||||||||||||||||||
Adjusted diluted earnings per share | $ | 3.83 | $ | 2.95 | $ | 13.51 | $ | 8.47 |
NEW CONTRACTS | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||||||||
Region | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Northern | 705 | 792 | (11) | % | 3,667 | 3,743 | (2) | % | ||||||||||||||||||||||||||||||
Southern | 1,039 | 1,336 | (22) | % | 5,417 | 5,684 | (5) | % | ||||||||||||||||||||||||||||||
Total | 1,744 | 2,128 | (18) | % | 9,084 | 9,427 | (4) | % |
HOMES DELIVERED | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
% | % | |||||||||||||||||||||||||||||||||||||
Region | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Northern | 954 | 881 | 8 | % | 3,592 | 3,071 | 17 | % | ||||||||||||||||||||||||||||||
Southern | 1,362 | 1,361 | — | % | 5,046 | 4,638 | 9 | % | ||||||||||||||||||||||||||||||
Total | 2,316 | 2,242 | 3 | % | 8,638 | 7,709 | 12 | % |
BACKLOG | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Dollars | Average | Dollars | Average | |||||||||||||||||||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||||||||||||||||||||||||||||
Northern | 1,890 | $ | 914 | $ | 484,000 | 1,815 | $ | 792 | $ | 436,000 | ||||||||||||||||||||||||||||
Southern | 2,945 | $ | 1,453 | $ | 493,000 | 2,574 | $ | 1,045 | $ | 406,000 | ||||||||||||||||||||||||||||
Total | 4,835 | $ | 2,367 | $ | 490,000 | 4,389 | $ | 1,837 | $ | 419,000 |
LAND POSITION SUMMARY | ||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||||||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||||||||||||||
Northern | 7,729 | 7,160 | 14,889 | 6,786 | 7,801 | 14,587 | ||||||||||||||||||||
Southern | 16,864 | 12,204 | 29,068 | 10,013 | 14,909 | 24,922 | ||||||||||||||||||||
Total | 24,593 | 19,364 | 43,957 | 16,799 | 22,710 | 39,509 |
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