NYSE$DFH

Dream Finders Homes Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Dream Finders Homes reported record earnings for Q1 2021, driven by significant growth in home deliveries and net new orders.

Dream Finders Homes announced a strong first quarter in 2021, marked by a 95% increase in homes delivered and a 137% increase in net new orders. Net income rose by 145.0% compared to the same period last year, driven by an 82.2% increase in home sales revenues and a 210 basis points increase in the gross margin percentage.

  • Total revenues increased by 82.0% to $343.6 million compared to Q1 2020.
  • Home closings increased by 94.6% to 1,002 homes.
  • Net new orders surged by 137.0% to a record 2,010 homes.
  • The cancellation rate decreased by 370 basis points to 8.1%.

Headline financials

Total Revenue

$344M

Previous: $189M+82.0%
EPS (adj)

$0.20

Previous: $65.91-99.7%
Net New Orders

2.0K

Previous: 848+137.0%
Average Sales Price

$336K

Previous: $363K-7.3%
Cancellation Rate

8.1%

Previous: 11.8%-31.4%
Ending Backlog Homes

3.6K

Previous: 1.2K+212.7%
Ending Backlog Value

$1.36B

Previous: $442M+206.9%
Active Communities

120

Previous: 83+44.6%
Capital Expenditures

-$710K

No prior period
Free Cash Flow

$15.4M

No prior period
Net Income

$16.1M

Previous: $6.58M+145.0%
Operating Income

$20.6M

Previous: $7.47M+175.6%
Gross Profit

$52.5M

Previous: $25M+110.2%
Cash & Equivalents

$42.3M

No prior period
Total Assets

$867M

No prior period
Stock-Based Comp

$1.11M

No prior period

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$344M

Q1 2021+82%vs Q1 2020
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $98.5M total across 1 segment · Q1 2021

  • Homebuilding
    $98.5M

Forward guidance

Dream Finders Homes maintains its guidance of 5,000 to 6,000 home closings for the full year 2021 and expects an increase in the average sales price of homes closed in future quarters, as the average sales price in backlog as of March 31, 2021 was $375,526.

Tailwinds

  • Consistent level of elevated sales per community.
  • Strong backlog.
  • Low interest rate environment.
  • Persistent relocation patterns into its core markets.
  • Increase in the average sales price of homes closed in future quarters.

Headwinds

  • Challenges created by input costs inflation.
  • Supply chain constraints.
  • General economic conditions, including interest rates and mortgage availability, in 2021 remain similar to those experienced in the first quarter of 2021.
  • Construction costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience.
  • Governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.2%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+25.2%

Q2 2023

Best reaction

-12.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+0.4%+9.2%
Q4 2025-2.0%-11.8%-29.7%
Q3 2025-8.5%-11.8%-8.5%
Q1 2025-3.6%+0.6%-1.1%
Q4 2024+17.9%+13.9%+12.7%
Q3 2024-1.3%+4.0%+6.8%
Q2 2024-10.5%-13.2%+6.0%
Q1 2024-12.4%-13.7%-20.3%
Q4 2023+11.6%+9.3%+26.6%
Q3 2023+11.7%+13.3%+26.1%
Q2 2023+25.2%+25.6%+23.2%
Q1 2023+2.3%+5.6%+21.4%
Q4 2022-0.3%-0.8%+6.1%
Q3 2022+3.5%-0.6%-7.4%
Q2 2022-2.5%-3.5%-5.4%
Q1 2022-6.4%+1.6%-10.1%
Q4 2021+5.1%-6.3%-21.3%
Q3 2021+2.5%+9.7%+16.2%
Q2 2021-8.7%-13.8%-16.6%
Q1 2021-8.8%-7.7%-15.7%
Q4 2020-7.2%-17.7%-14.1%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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