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Sep 30, 2021
Dream Finders Homes Q3 2021 Earnings Report
Dream Finders Homes reported revenue growth, improved gross margin, and increased pre-tax income despite supply chain constraints.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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