Dream Finders Announces Second Quarter 2024 Results
Dream Finders Homes (NYSE: DFH) announced strong Q2 2024 results, with homebuilding revenues up 12% to $1.1 billion and net income attributable to DFH increasing 18% to $81 million. The company reported basic EPS of $0.83, up 19% from the previous year. Home closings increased 10% to 2,031, while the average sales price rose to $514,833. DFH maintained a solid adjusted gross margin of 27.0% and achieved a return on participating equity of 33.5% for the trailing twelve months. The company completed the acquisition of Jet HomeLoans on July 1, 2024, which is expected to enhance profitability. DFH reiterates its guidance of 8,250 closings for the full year 2024 and remains focused on strategic growth and operational efficiencies.
Dream Finders Homes (NYSE: DFH) ha annunciato risultati forti per il secondo trimestre del 2024, con entrate da costruzione di abitazioni in aumento del 12% a 1,1 miliardi di dollari e utile netto attribuibile a DFH in aumento del 18% a 81 milioni di dollari. L'azienda ha riportato un utili per azione di base di 0,83 dollari, in aumento del 19% rispetto all'anno precedente. Le chiusure di abitazioni sono aumentate del 10% a 2.031, mentre il prezzo medio delle vendite è salito a 514.833 dollari. DFH ha mantenuto un margine di profitto lordo rettificato solido del 27,0% e ha raggiunto un ritorno sul capitale partecipato del 33,5% per i dodici mesi precedenti. L'azienda ha completato l'acquisizione di Jet HomeLoans il 1° luglio 2024, il che dovrebbe migliorare la redditività. DFH ribadisce la sua previsione di 8.250 chiusure per l'intero anno 2024 e rimane concentrata sulla crescita strategica e sull'efficienza operativa.
Dream Finders Homes (NYSE: DFH) anunció resultados sólidos para el segundo trimestre de 2024, con ingresos por construcción de viviendas que aumentaron un 12% a 1.1 mil millones de dólares y ingresos netos atribuibles a DFH que aumentaron un 18% a 81 millones de dólares. La empresa reportó EPS básico de 0.83 dólares, un aumento del 19% en comparación con el año anterior. Las cerraduras de viviendas aumentaron un 10% a 2,031, mientras que el precio promedio de venta se elevó a 514,833 dólares. DFH mantuvo un margen bruto ajustado del 27.0% y logró un retorno sobre capital participativo del 33.5% durante los últimos doce meses. La empresa completó la adquisición de Jet HomeLoans el 1 de julio de 2024, lo que se espera mejore la rentabilidad. DFH reitera su guía de 8,250 cerraduras para todo el año 2024 y sigue enfocada en el crecimiento estratégico y en la eficiencia operativa.
Dream Finders Homes (NYSE: DFH)는 2024년 2분기 강력한 실적을 발표했으며, 주택 건설 수익이 12% 증가하여 11억 달러에 달했습니다. 또한 DFH에 귀속되는 순익은 18% 증가한 8,100만 달러였습니다. 회사는 기본 주당순이익이 0.83 달러로, 전년 대비 19% 증가했습니다. 주택 거래는 10% 증가하여 2,031건에 이르렀고, 평균 판매가는 514,833 달러로 상승했습니다. DFH는 조정 후 총 이익률이 27.0%를 유지하며, 최근 12개월 동안 참여 자본 수익률이 33.5%에 달했습니다. 이 회사는 2024년 7월 1일 Jet HomeLoans 인수를 완료했으며, 이는 수익성 향상에 기여할 것으로 예상됩니다. DFH는 전년도 2024년 연간 8,250 건의 거래 전망을 재확인하며, 전략적 성장과 운영 효율성에 집중하고 있습니다.
Dream Finders Homes (NYSE: DFH) a annoncé de solides résultats pour le deuxième trimestre 2024, avec des revenus de la construction de logements augmentant de 12 % à 1,1 milliard de dollars et un revenu net attribuable à DFH en hausse de 18 % à 81 millions de dollars. L'entreprise a signalé un BPA de 0,83 dollar, en hausse de 19 % par rapport à l'année précédente. Les clôtures de logements ont augmenté de 10 % pour atteindre 2 031, tandis que le prix de vente moyen a grimpé à 514 833 dollars. DFH a maintenu une marge brute ajustée solide de 27,0 % et a atteint un rendement des capitaux propres participants de 33,5 % pour les douze derniers mois. L'entreprise a achevé l'acquisition de Jet HomeLoans le 1er juillet 2024, ce qui devrait améliorer la rentabilité. DFH réitère ses prévisions de 8 250 clôtures pour l'année entière 2024 et reste concentrée sur la croissance stratégique et l'efficacité opérationnelle.
Dream Finders Homes (NYSE: DFH) hat starke Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit Umsätzen aus dem Wohnungsbau, die um 12% auf 1,1 Milliarden Dollar gestiegen sind und netto Einkommen, das auf DFH um 18% auf 81 Millionen Dollar gestiegen ist. Das Unternehmen berichtete von einem Gewinn pro Aktie von 0,83 Dollar, was einem Anstieg von 19% im Vergleich zum Vorjahr entspricht. Die Hausverkäufe stiegen um 10% auf 2.031, während der durchschnittliche Verkaufspreis auf 514.833 Dollar anstieg. DFH behielt eine solide angepasste Bruttomarge von 27,0% bei und erzielte eine Rendite auf das beteiligte Eigenkapital von 33,5% für die letzten zwölf Monate. Das Unternehmen hat am 1. Juli 2024 die Übernahme von Jet HomeLoans abgeschlossen, was voraussichtlich die Rentabilität verbessern wird. DFH bestätigt die Prognose von 8.250 Abschlüssen für das gesamte Jahr 2024 und bleibt auf strategisches Wachstum und betriebliche Effizienz fokussiert.
- Homebuilding revenues increased 12% to $1.1 billion
- Net income attributable to DFH up 18% to $81 million
- Basic EPS increased 19% to $0.83
- Home closings increased 10% to 2,031
- Adjusted gross margin remained strong at 27.0%
- Return on participating equity of 33.5% for trailing twelve months
- Acquisition of remaining 40% of Jet HomeLoans expected to enhance profitability
- Company maintains guidance of 8,250 closings for full year 2024
- Net debt to net capitalization increased to 42.7% from 38.8% year-over-year
- SG&A as a percentage of homebuilding revenues increased 160 bps to 9.4%
- Return on participating equity decreased from 42.2% to 33.5% year-over-year
- Backlog of homes decreased to 4,205 from 4,524 in the previous quarter
Dream Finders Homes' Q2 2024 results demonstrate solid performance amidst challenging market conditions. The 12% increase in homebuilding revenues to
The 18% increase in net income attributable to DFH to
The acquisition of the remaining
While the company maintains its guidance of 8,250 closings for 2024, investors should monitor the impact of rising interest rates and affordability challenges on future demand. The slight increase in net debt to net capitalization to
Dream Finders Homes' Q2 results offer valuable insights into the current state of the housing market. The 3% increase in net new orders to 1,712 and improved cancellation rate of
The company's backlog of 4,205 homes valued at
DFH's expansion strategy, including the Crescent Homes acquisition and the recent Jet HomeLoans purchase, positions the company for continued growth. The controlled lot pipeline of 40,678 as of June 30, 2024, suggests a strong land position for future development.
The housing market's response to interest rate fluctuations and economic uncertainties will be important to watch. DFH's performance in maintaining sales momentum while preserving margins will be a key indicator of its ability to navigate these challenges successfully.
Second Quarter Homebuilding Revenues of
Net Income to DFH Up
Return on Participating Equity of
Second Quarter 2024 Highlights (As Compared to Second Quarter 2023, unless otherwise noted)
-
Homebuilding revenues increased
12% to from$1.1 billion $943 million -
Home closings increased
10% to 2,031 from 1,846 -
Net new orders increased
3% to 1,712 from 1,655 -
Average sales price of homes closed increased to
from$514,833 $504,683 -
Homebuilding gross margin of
19.0% compared to19.1% -
Adjusted gross margin (non-GAAP) of
27.0% compared to27.1% -
Pre-tax income increased
11% to from$106 million $96 million -
Net income attributable to DFH increased
18% to , or$81 million per basic share, from$0.83 , or$69 million per basic share$0.70 - Active community count of 222
-
Backlog of 4,205 sold homes as of June 30, 2024, valued at
$2.1 billion -
Net debt to net capitalization of
42.7% as of June 30, 2024, compared to38.8% as of June 30, 2023 -
Total liquidity, comprised of cash and cash equivalents and availability under the revolving credit facility, of
as of June 30, 2024$475 million -
Return on participating equity of
33.5% for the trailing twelve months ended June 30, 2024, compared to42.2% for the trailing twelve months ended June 30, 2023 - Controlled lot pipeline of 40,678 as of June 30, 2024
Management Commentary
Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, “Despite the continued home affordability and interest rate challenges, Dream Finders achieved another strong quarter driven by our continued focus on strategic growth and operational efficiencies. I am proud of the efforts of the entire DFH team as we have continued to grind forward despite the aforementioned hurdles. Our homebuilding revenues for the quarter of
During the second quarter, we repurchased 72,000 shares of our class A common stock under our approved buyback program. We believe buying back our shares is a valuable way to generate shareholder value, and we may continue to do so in the future as part of our long-term capital allocation strategy.
We are also pleased to announce that subsequent to quarter end, we completed the acquisition of Jet HomeLoans (‘Jet HL’) for
While there are plenty of challenges facing the homebuilding industry, we believe DFH is well positioned to continue to capitalize on opportunities going forward. We reiterate our guidance of 8,250 closings for the full year 2024 and are hard at work building the foundation for continued growth in 2025 and beyond.”
Second Quarter 2024 Results
Homebuilding revenues in the second quarter of 2024 increased
Homebuilding gross margin percentage in the second quarter of 2024 of
Adjusted gross margin as a percentage of homebuilding revenues in the second quarter of 2024 was
Selling, general and administrative expense (“SG&A”) in the second quarter of 2024 increased
Net income attributable to DFH in the second quarter of 2024 increased
Net new orders in the second quarter of 2024 were 1,712, an increase of
Our total available liquidity as of June 30, 2024 was
Second Quarter 2024 Backlog
As of June 30, 2024, DFH had a backlog of 4,205 homes, valued at
The following table shows the backlog units and ASP as of June 30, 2024 by homebuilding segment:
|
As of June 30, 2024
|
||||
Backlog: |
Units |
|
Average Sales Price |
||
Southeast |
1,723 |
|
$ |
411,727 |
|
Mid-Atlantic |
1,202 |
|
|
467,772 |
|
Midwest |
1,280 |
|
|
665,587 |
|
Total |
4,205 |
|
$ |
505,022 |
Jet HomeLoans Acquisition
On July 1, 2024, the Company acquired the remaining interest in Jet HomeLoans, upon which Jet HomeLoans became a wholly owned subsidiary of the Company and will be consolidated in the Company’s financial statements as of that date. This acquisition enables us to direct and manage the business operations and strategies of our established preferred mortgage lender for the benefit of our homebuyers across all of our markets.
Full Year 2024 Outlook
Dream Finders Homes maintains its guidance of approximately 8,250 home closings for the full year 2024, inclusive of the Crescent Homes acquisition.
About Dream Finders Homes, Inc.
Dream Finders Homes (NYSE: DFH) is a homebuilder based in
Forward-Looking Statements
This press release includes forward-looking statements regarding future events, including projected 2024 home closings and market conditions, possible or assumed future results of operations, benefits of the Crescent Homes acquisition, and statements regarding the Company’s strategies and expectations as they relate to market opportunities and growth. All forward-looking statements are based on Dream Finders Homes’ beliefs as well as assumptions made by and information currently available to Dream Finders Homes. These statements reflect Dream Finders Homes’ current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in Dream Finders Homes’ Annual Report on Form 10-K for the year ended December 31, 2023, subsequently filed Form 10-Qs and other filings with the
Dream Finders Homes, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(In thousands, except share and per share amounts) |
|||||||
(Unaudited) |
|||||||
|
|
June 30,
|
|
December 31,
|
|||
Assets |
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
274,797 |
|
|
$ |
494,145 |
Restricted cash |
|
|
21,834 |
|
|
|
54,311 |
Accounts receivable |
|
|
33,003 |
|
|
|
30,874 |
Inventories |
|
|
1,897,518 |
|
|
|
1,440,249 |
Lot deposits |
|
|
301,167 |
|
|
|
247,207 |
Other assets |
|
|
108,993 |
|
|
|
80,759 |
Investments in unconsolidated entities |
|
|
20,556 |
|
|
|
15,364 |
Property and equipment, net |
|
|
8,775 |
|
|
|
7,043 |
Right-of-use assets |
|
|
18,248 |
|
|
|
20,280 |
Goodwill |
|
|
300,313 |
|
|
|
172,207 |
Total assets |
|
$ |
2,985,204 |
|
|
$ |
2,562,439 |
|
|
|
|
|
|||
Liabilities |
|
|
|
|
|||
Accounts payable |
|
$ |
180,856 |
|
|
$ |
134,115 |
Accrued expenses |
|
|
181,668 |
|
|
|
207,389 |
Customer deposits |
|
|
129,043 |
|
|
|
172,574 |
Construction lines of credit |
|
|
890,876 |
|
|
|
530,384 |
Senior unsecured notes, net |
|
|
294,564 |
|
|
|
293,918 |
Lease liabilities |
|
|
19,116 |
|
|
|
21,114 |
Contingent consideration |
|
|
67,549 |
|
|
|
116,795 |
Total liabilities |
|
$ |
1,763,672 |
|
|
$ |
1,476,289 |
Mezzanine Equity |
|
|
|
|
|||
Redeemable preferred stock |
|
|
148,500 |
|
|
|
148,500 |
Redeemable noncontrolling interest |
|
|
21,451 |
|
|
|
— |
Equity |
|
|
|
|
|||
Class A common stock, |
|
|
345 |
|
|
|
329 |
Class B common stock, |
|
|
592 |
|
|
|
602 |
Additional paid-in capital |
|
|
271,296 |
|
|
|
275,241 |
Retained earnings |
|
|
777,099 |
|
|
|
648,412 |
Treasury stock, at cost, 71,833 shares of Class A common stock as of June 30, 2024 |
|
|
(1,846 |
) |
|
|
— |
Total Dream Finders Homes, Inc. stockholders’ equity |
|
|
1,047,486 |
|
|
|
924,584 |
Noncontrolling interests |
|
|
4,095 |
|
|
|
13,066 |
Total equity |
|
|
1,051,581 |
|
|
|
937,650 |
Total liabilities, mezzanine equity and equity |
|
$ |
2,985,204 |
|
|
$ |
2,562,439 |
Dream Finders Homes, Inc. |
||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income |
||||||||||||||||
(In thousands, except share and per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Homebuilding |
|
$ |
1,052,236 |
|
|
$ |
942,880 |
|
|
$ |
1,877,457 |
|
|
$ |
1,710,356 |
|
Other |
|
|
3,511 |
|
|
|
2,459 |
|
|
|
6,090 |
|
|
|
4,403 |
|
Total revenues |
|
|
1,055,747 |
|
|
|
945,339 |
|
|
|
1,883,547 |
|
|
|
1,714,759 |
|
Homebuilding cost of sales |
|
|
852,837 |
|
|
|
762,855 |
|
|
|
1,531,477 |
|
|
|
1,400,199 |
|
Selling, general and administrative expense |
|
|
98,926 |
|
|
|
73,709 |
|
|
|
180,719 |
|
|
|
134,470 |
|
Income from unconsolidated entities |
|
|
(5,299 |
) |
|
|
(4,704 |
) |
|
|
(10,202 |
) |
|
|
(7,662 |
) |
Contingent consideration revaluation |
|
|
4,638 |
|
|
|
18,266 |
|
|
|
7,845 |
|
|
|
23,582 |
|
Other income, net |
|
|
(1,363 |
) |
|
|
(635 |
) |
|
|
(3,124 |
) |
|
|
(1,065 |
) |
Income before taxes |
|
|
106,008 |
|
|
|
95,848 |
|
|
|
176,832 |
|
|
|
165,235 |
|
Income tax expense |
|
|
(23,245 |
) |
|
|
(24,206 |
) |
|
|
(38,386 |
) |
|
|
(41,842 |
) |
Net and comprehensive income |
|
|
82,763 |
|
|
|
71,642 |
|
|
|
138,446 |
|
|
|
123,393 |
|
Net and comprehensive income attributable to noncontrolling interests |
|
|
(1,820 |
) |
|
|
(2,878 |
) |
|
|
(3,009 |
) |
|
|
(5,540 |
) |
Net and comprehensive income attributable to Dream Finders Homes, Inc. |
|
$ |
80,943 |
|
|
$ |
68,764 |
|
|
$ |
135,437 |
|
|
$ |
117,853 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.83 |
|
|
$ |
0.70 |
|
|
$ |
1.38 |
|
|
$ |
1.19 |
|
Diluted |
|
$ |
0.81 |
|
|
$ |
0.65 |
|
|
$ |
1.35 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of shares |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
93,722,953 |
|
|
|
93,108,277 |
|
|
|
93,524,396 |
|
|
|
93,025,626 |
|
Diluted |
|
|
100,125,681 |
|
|
|
105,439,519 |
|
|
|
100,030,603 |
|
|
|
107,704,859 |
|
Dream Finders Homes, Inc. |
||||||||||||||||
Other Financial and Operating Data |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Other Financial and Operating Data |
|
|
|
|
|
|
|
|
||||||||
Home closings |
|
|
2,031 |
|
|
|
1,846 |
|
|
|
3,686 |
|
|
|
3,363 |
|
Average sales price of homes closed(1) |
|
$ |
514,833 |
|
|
$ |
504,683 |
|
|
$ |
505,926 |
|
|
$ |
498,309 |
|
Net new orders |
|
|
1,712 |
|
|
|
1,655 |
|
|
|
3,436 |
|
|
|
3,103 |
|
Cancellation rate |
|
|
13.2 |
% |
|
|
15.6 |
% |
|
|
16.8 |
% |
|
|
18.1 |
% |
Gross margin (in thousands)(2) |
|
$ |
199,399 |
|
|
$ |
180,025 |
|
|
$ |
345,980 |
|
|
$ |
310,157 |
|
Gross margin %(3) |
|
|
19.0 |
% |
|
|
19.1 |
% |
|
|
18.4 |
% |
|
|
18.1 |
% |
Adjusted gross margin (in thousands)(4) |
|
$ |
284,571 |
|
|
$ |
255,912 |
|
|
$ |
501,784 |
|
|
$ |
442,105 |
|
Adjusted gross margin %(3)(4) |
|
|
27.0 |
% |
|
|
27.1 |
% |
|
|
26.7 |
% |
|
|
25.8 |
% |
Active communities(5) |
|
|
|
|
|
|
222 |
|
|
|
220 |
|
||||
Backlog - units |
|
|
|
|
|
|
4,205 |
|
|
|
5,288 |
|
||||
Backlog - value (in thousands) |
|
|
|
|
|
$ |
2,123,618 |
|
|
$ |
2,486,375 |
|
||||
Return on participating equity(6) |
|
|
|
|
|
|
33.5 |
% |
|
|
42.2 |
% |
||||
Net debt to net capitalization(7) |
|
|
|
|
|
|
42.7 |
% |
|
|
38.8 |
% |
(1) |
Average sales price of homes closed is calculated based on homebuilding revenues, adjusted for the impact of percentage of completion revenues, and excluding deposit forfeitures and land sales, over homes closed. |
|
(2) |
Gross margin is homebuilding revenues less homebuilding cost of sales. |
|
(3) |
Calculated as a percentage of homebuilding revenues. |
|
(4) |
Adjusted gross margin is a non-GAAP financial measure. For a definition of this non-GAAP financial measures and a reconciliation to our most directly comparable financial measure calculated and presented in accordance with GAAP, see “Reconciliation of Non-GAAP Financial Measures.” |
|
(5) |
A community becomes active once the model is completed or the community has its fifth net new order. A community becomes inactive when it has fewer than five units remaining to sell. |
|
(6) |
Return on participating equity is calculated as net income attributable to DFH, less redeemable preferred stock distributions, divided by average beginning and ending total Dream Finders Homes, Inc. stockholders’ equity (“participating equity”) for the trailing twelve months. |
|
(7) |
Net debt to net capitalization is defined as the sum of the senior unsecured notes, net and construction lines of credit, less cash and cash equivalents (“net debt”), divided by the sum of net debt, total mezzanine equity and total equity. |
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||||
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|||||||||||||
Home Closings: |
Units |
|
Average
|
|
Units |
|
Average
|
|
Units |
|
Average
|
|
Units |
|
Average
|
|||||
Southeast |
668 |
|
$ |
508,511 |
|
799 |
|
$ |
461,085 |
|
1,246 |
|
$ |
492,320 |
|
1,433 |
|
$ |
456,264 |
|
Mid-Atlantic |
610 |
|
|
433,941 |
|
386 |
|
|
384,865 |
|
1,101 |
|
|
430,155 |
|
756 |
|
|
374,985 |
|
Midwest |
753 |
|
|
585,971 |
|
661 |
|
|
627,353 |
|
1,339 |
|
|
580,889 |
|
1,174 |
|
|
629,045 |
|
Total |
2,031 |
|
$ |
514,833 |
|
1,846 |
|
$ |
504,683 |
|
3,686 |
|
$ |
505,926 |
|
3,363 |
|
$ |
498,309 |
|
Reconciliation of Non-GAAP Financial Measures
The following table presents a reconciliation of adjusted gross margin to the GAAP financial measure of gross margin for each of the periods indicated (unaudited and in thousands, except percentages):
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Gross margin(1) |
$ |
199,399 |
|
|
$ |
180,025 |
|
|
$ |
345,980 |
|
|
$ |
310,157 |
|
|
Interest expense in homebuilding cost of sales(2) |
|
41,662 |
|
|
|
32,798 |
|
|
|
72,404 |
|
|
|
55,217 |
|
|
Amortization in homebuilding cost of sales(3) |
|
2,518 |
|
|
|
— |
|
|
|
7,100 |
|
|
|
— |
|
|
Commission expense |
|
40,992 |
|
|
|
43,089 |
|
|
|
76,300 |
|
|
|
76,731 |
|
|
Adjusted gross margin |
$ |
284,571 |
|
|
$ |
255,912 |
|
|
$ |
501,784 |
|
|
$ |
442,105 |
|
|
Gross margin %(4) |
|
19.0 |
% |
|
|
19.1 |
% |
|
|
18.4 |
% |
|
|
18.1 |
% |
|
Adjusted gross margin %(4) |
|
27.0 |
% |
|
|
27.1 |
% |
|
|
26.7 |
% |
|
|
25.8 |
% |
(1) |
Gross margin is homebuilding revenues less homebuilding cost of sales. |
|
(2) |
Includes interest charged to homebuilding cost of sales related to our construction lines of credit and senior unsecured notes, net, as well as lot option fees. |
|
(3) |
Represents amortization of purchase accounting adjustments from the Crescent Homes acquisition. |
|
(4) |
Calculated as a percentage of homebuilding revenues. |
Adjusted gross margin is a non-GAAP financial measure used by management as a supplemental measure in evaluating operating performance. The Company defines adjusted gross margin as gross margin excluding the effects of capitalized interest, lot option fees, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions) and commission expense. Management believes this information is meaningful because it isolates the impact that these excluded items have on gross margin. The Company includes internal and external commission expense in homebuilding cost of sales, not selling, general and administrative expense, and therefore commission expense is taken into account in gross margin. As a result, in order to provide a meaningful comparison to the public company homebuilders that include commission expense below the gross margin line in selling, general and administrative expense, commission expense has been excluded from adjusted gross margin. However, because adjusted gross margin information excludes capitalized interest, lot option fees, purchase accounting amortization and commission expense, which have real economic effects and could impact our results of operations, the utility of adjusted gross margin information as a measure of operating performance may be limited. In addition, other companies may not calculate adjusted gross margin information in the same manner. Accordingly, adjusted gross margin information should be considered only as a supplement to gross margin information as a measure of performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801911477/en/
Investor Contact: investors@dreamfindershomes.com
Media Contact: mediainquiries@dreamfindershomes.com
Source: Dream Finders Homes, Inc.
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