On November 2, 2023, Dream Finders Homes Inc (DFH, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a 14% increase in homebuilding revenues, rising to $894 million from $784 million in the same period last year. Net income attributable to DFH also saw a growth of 9%, amounting to $76 million, or $0.79 per basic share, from $70 million, or $0.71 per basic share.
Financial Highlights
DFH's home closings increased by 17% to 1,798 from 1,542 in Q3 2022. The average sales price of homes closed rose by 3% to $501,536 from $487,852. The company's active community count also saw an 11% increase to 219 from 197. The backlog of sold homes stood at 5,025 homes, valued at $2.4 billion.
DFH's gross margin as a percentage of homebuilding revenues increased 200 basis points to 20.6% from 18.6%. The adjusted gross margin (non-GAAP) as a percentage of homebuilding revenues also saw a significant increase of 350 basis points to 28.4% from 24.9%.
The company's total liquidity, comprised of cash and cash equivalents, and availability under the revolving credit facility, stood at $564 million as of September 30, 2023, compared to $487 million as of December 31, 2022.
Management Commentary
Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, “DFH continued its positive momentum in the third quarter of 2023, delivering revenue growth of 14%, along with pre-tax income of $104 million and earnings per basic share of $0.79, which increased 27% and 11%, respectively, compared to the year-ago quarter and are both third quarter Company records. Home closings of 1,798 and net new orders of 1,535 increased 17% and 38%, respectively, compared to the year-ago quarter. Our performance in a difficult interest rate environment reflects our ability to generate sales and successfully deliver on our growth strategy. We continue to focus on managing construction times and increasing inventory turnover."
Outlook for 2023
Based on the progress made year-to-date, Dream Finders Homes is updating its guidance and now expects approximately 6,750 home closings for the full year 2023 compared to a previous outlook of approximately 6,500 homes.
About Dream Finders Homes, Inc.
Dream Finders Homes (NYSE: DFH) is a homebuilder based in Jacksonville, FL. The company builds single-family homes throughout the Southeast, Mid-Atlantic, and Midwest, including Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, and the Washington, D.C. metropolitan area. Through its financial services joint ventures, DFH also provides mortgage financing and title services to homebuyers.
Explore the complete 8-K earnings release (here) from Dream Finders Homes Inc for further details.
