Exhibit 99.1

 

 

THE NEW HOME COMPANY REPORTS 2019 Fourth QUARTER AND FULL YEAR RESULTS

 

Aliso Viejo, California, February 13, 2020. The New Home Company Inc. (NYSE: NWHM) today announced results for the 2019 fourth quarter and full year.

 

Fourth Quarter 2019 Financial Results

 

 

$62.7 million of cash flow from operations resulting in $22.6 million of net debt reduction and a $38.4 increase in cash

during the quarter 

 

Debt-to-capital ratio of 56.7% and a net debt-to-capital ratio of 49.2%*, a 570 basis point sequential improvement from the third quarter

 
Net orders up 106%, monthly absorption rate increased 83% to 2.2 compared to 1.2 for the 2018 fourth quarter
 

Total revenues of $222.1 million, including $17.1 million of land sales revenue

  Home sales revenue of $173.9 million vs. $187.3 million for the 2018 fourth quarter
 

Net loss of $3.0 million, or ($0.15) per diluted share, including $10.1 million of pretax inventory and joint venture impairment charges

 

Adjusted net income of $3.1 million*, or $0.15 per diluted share*, excluding impairment charges 

 

Full Year 2019 Financial Results

 

 

$121.3 million of cash flow from operations and $82.8 million of net debt reduction during the year 

 

Net debt-to-capital ratio down 980 basis points from the end of 2018 to 49.2%*

 

Total revenues of $669.3 million, including $41.7 million of land sales revenue

  Home sales revenue of $532.4 million, up 6% from $504.0 million for 2018
 
Home deliveries increased 15%
 

SG&A ratio of 11.7%, down 60 basis points from 2018

  Net loss of $8.0 million, or $(0.40) per diluted share, including $15.2 million of pretax inventory and joint venture impairment charges and loss on land sales
  Adjusted net income of $3.3 million*, or $0.16 per diluted share*, excluding impairment charges and loss on land sales

 

"2019 was a pivotal year for our Company as we committed early in the year to generating cash flow, deleveraging our balance sheet, and improving SG&A efficiency to address a weaker housing market to start the year," remarked Larry Webb, Executive Chairman of The New Home Company.  "By the end of 2019, we had generated $121 million in operating cash flow, reduced our net debt by approximately $83 million, and established a more streamlined cost structure which included right-sizing our operations by reducing headcount, along with improved selling, marketing and administrative expense leverage.  At the end of 2019, our net debt-to-capital ratio was 49.2%*, a 980 basis point year-over-year improvement."

 

Leonard Miller, President and Chief Executive Officer stated, "Buyer demand steadily improved throughout the year with our monthly net new orders up for the final five months of 2019.  The 2019 fourth quarter was particularly strong with our monthly sales pace up 83% resulting in a 106% increase in net new orders over the prior year period.  Demand was strongest at our more affordable, entry level communities where monthly absorption increased to 3.3 for the 2019 fourth quarter, further underscoring the benefit of our ongoing strategy to diversify our product portfolio and expand our customer base.  Additionally, our backlog conversion rate improved to 97% for the 2019 fourth quarter from 61% for the 2018 fourth quarter as we continued to capitalize on the shorter build cycles and quicker conversion of spec homes that our more affordable product provided resulting in higher inventory turns and a 7% increase in new home deliveries for the 2019 fourth quarter." 

 

Mr. Miller concluded, "The improvements we made during 2019 to our financial leverage ratios, our product diversification and our cost structure, coupled with a favorable fundamental backdrop for our industry, give us optimism for our Company's prospects as we enter the new year." 

 

 

1

The following information was filed by New Home Co Inc. (NWHM) on Thursday, February 13, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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