NYSE$DFH

Dream Finders Homes Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Dream Finders Homes reported revenue growth, improved gross margin, and increased pre-tax income despite supply chain constraints.

Dream Finders Homes reported a strong third quarter with significant year-over-year growth in home building revenues, gross margin, and pre-tax income. The company's backlog of sold homes reached a record high, and the acquisition of McGuyer Homebuilders, Inc. further expanded its backlog and land position. Despite industry-wide challenges, Dream Finders Homes is confident in its ability to deliver record revenues and substantial growth in fiscal 2022.

  • Backlog of sold homes increased 146.2% to 4,520 homes valued at $1.8 billion.
  • Home building revenues increased 27.9% to $361 million.
  • Gross margin as a percentage of home sales revenues increased 120 basis points to 16.0%.
  • Net new orders increased 12.3% to 1,301.

Headline financials

Total Revenue

$363M

Previous: $284M+27.7%
EPS (adj)

$0.20

Previous: $225.97-99.9%
Net New Orders

1.3K

No prior period
Average Sales Price

$376K

No prior period
Ending Backlog Value

$1.8B

No prior period
Active Communities

107

No prior period
Capital Expenditures

-$1.7M

No prior period
Free Cash Flow

$17.4M

No prior period
Net Income

$19.1M

Previous: $22.6M-15.2%
Operating Income

$18.6M

Previous: $23.6M-21.3%
Gross Profit

$59.6M

Previous: $43.5M+37.1%
Cash & Equivalents

$85.5M

No prior period
Total Assets

$1.23B

No prior period
Stock-Based Comp

$1.47M

No prior period

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$363M

Q3 2021+27.7%vs Q3 2020
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $361M total across 1 segment · Q3 2021

  • Homebuilding
    $361M

Forward guidance

The Company is updating its outlook and now expects 4,900 to 5,300 home closings for DFH, inclusive of MHI, compared to a previous outlook for 5,000 to 6,000 home closings due to longer cycle times as a result of industry wide supply chain challenges.

Tailwinds

  • Deliver record fourth quarter revenues
  • Substantial revenue growth in fiscal 2022
  • Convert the largest backlog in the Company’s history
  • Successfully delivered third sequential quarter of year-over-year revenue growth
  • Successfully delivered third sequential quarter of year-over-year gross margin growth

Headwinds

  • Longer cycle times as a result of industry wide supply chain challenges
  • Further COVID-19 governmental restrictions on land development could negatively impact the Company’s ability to achieve home closings.
  • Further COVID-19 governmental restrictions on home construction could negatively impact the Company’s ability to achieve home closings.
  • Further COVID-19 governmental restrictions on home sales could negatively impact the Company’s ability to achieve home closings.
  • Additional supply chain challenges could negatively impact the Company’s ability to achieve home closings.

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 Q3 2021

Historical avgQ3 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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