On August 1, 2024, Dream Finders Homes Inc (DFH, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust performance despite ongoing industry challenges.
Dream Finders Homes Inc is engaged in the home building business. It designs, builds, and sells homes in Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, and Austin. The company operates through six geographical divisions, with the Jacksonville division generating the majority of the revenue for the firm.
Q2 2024 Financial Highlights
Dream Finders Homes Inc (DFH, Financial) reported a 12% increase in homebuilding revenues, reaching $1.1 billion compared to $943 million in the same quarter last year. This performance surpassed the analyst estimate of $1.08 billion. The net income attributable to DFH rose by 18% to $81 million, or $0.83 per basic share, exceeding the analyst estimate of $0.77 per share.
Operational Achievements and Challenges
Home closings increased by 10% to 2,031 units, while the average sales price of homes closed rose to $514,833 from $504,683. The company also saw a 3% increase in net new orders, totaling 1,712. However, the homebuilding gross margin slightly decreased to 19.0% from 19.1% in the previous year, primarily due to amortization of purchase accounting adjustments from the Crescent Homes acquisition.
Despite these achievements, the company faced challenges such as increased selling, general, and administrative expenses (SG&A), which rose by 34% to $99 million. This increase was mainly due to higher compensation and marketing costs associated with expanding operations.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Homebuilding Revenues | $1.1 billion | $943 million |
| Net Income Attributable to DFH | $81 million | $69 million |
| Basic EPS | $0.83 | $0.70 |
| Home Closings | 2,031 | 1,846 |
| Net New Orders | 1,712 | 1,655 |
| Average Sales Price | $514,833 | $504,683 |
Management Commentary
"Despite the continued home affordability and interest rate challenges, Dream Finders achieved another strong quarter driven by our continued focus on strategic growth and operational efficiencies. I am proud of the efforts of the entire DFH team as we have continued to grind forward despite the aforementioned hurdles," said Patrick Zalupski, Dream Finders Homes Chairman and CEO.
Balance Sheet and Liquidity
As of June 30, 2024, Dream Finders Homes Inc (DFH, Financial) reported total assets of $2.99 billion, up from $2.56 billion at the end of 2023. The company's total liquidity, including cash and cash equivalents and availability under the revolving credit facility, stood at $475 million. However, net debt to net capitalization increased to 42.7% from 38.8% in the previous year, reflecting higher investments in inventory and housing starts.
Outlook and Future Prospects
Dream Finders Homes Inc (DFH, Financial) maintains its guidance of approximately 8,250 home closings for the full year 2024. The company also completed the acquisition of Jet HomeLoans, which is expected to enhance overall profitability and drive significant shareholder value.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Dream Finders Homes Inc for further details.
