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Dec 31, 2020
Dream Finders Homes Q4 2020 Earnings Report
Dream Finders Homes reported record revenue and pre-tax income, driven by a significant increase in home sales and improved gross margins.
Key Takeaways
Dream Finders Homes announced record fourth quarter and full year 2020 results. The company reported significant increases in revenue, pre-tax income, and net new orders. The company's asset-light homebuilding model allowed it to rapidly adjust to the changing landscape brought on by the COVID-19 pandemic.
Pre-tax income for the fourth quarter increased by 133.5% compared to the fourth quarter of 2019.
Total revenues increased by 82.0% compared to the fourth quarter of 2019.
Net new orders increased by 189.0% over the net new orders in the fourth quarter of 2019.
Home closings increased by 78.0% over the home closings in the fourth quarter of 2019.
Forward Guidance
The Company believes that the homebuilding sector will remain strong in 2021, and expects the positive demographic trends in the high growth markets in which it operates to continue. Dream Finders Homes remains focused on providing an affordable product for its entry-level and first-time move-up homebuyers.
Positive Outlook
- The company believes that the homebuilding sector will remain strong in 2021.
- Expects the positive demographic trends in the high growth markets in which it operates to continue.
- Dream Finders Homes remains focused on providing an affordable product for its entry-level and first-time move-up homebuyers.
- Company believes it will have 5,000 to 6,000 home closings for the full year 2021.
- Assumes that the Company is able to continue to increase its portfolio of controlled lots.
Challenges Ahead
- General economic conditions, including interest rates and mortgage availability, in 2021 remain similar to those experienced so far 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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