Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. junior Avg
|
New words:
Additionally, adjacent, applied, assessed, Austin, automatic, book, Celina, CODM, committee, composition, Crossing, decision, description, direct, Eleventh, exposure, Family, flat, full, fully, gain, greater, history, Houston, iii, initial, interim, January, JV, maker, multiplying, newer, November, percent, pretax, profit, public, quantitative, Rainwater, reconcile, reconciling, registration, regularly, retrospectively, robust, separately, shelf, Single, size, Standard, threshold, Topic, treated, wholly
Financial report summary
?Risks
- The homebuilding industry is cyclical. A severe downturn in the industry could adversely affect our business, results of operations and stockholders’ equity.
- Our operating performance is subject to risks associated with the real estate industry.
- Adverse changes in macroeconomic conditions in and around the markets we operate in, and where prospective purchasers of our homes live, could reduce the demand and adversely affect our business, results of operations, and financial condition.
- Our business and financial results could be adversely affected by significant inflation or deflation.
- We depend on the availability and satisfactory performance of subcontractors. Our business could be negatively affected if our subcontractors are not able to perform.
- Labor and raw material shortages and price fluctuations could delay or increase the cost of land development and home construction, which could materially and adversely affect our business.
- Failure to recruit, retain and develop highly skilled, competent employees may have a material adverse effect on our business and results of operations.
- We may be unable to achieve our objectives because of our inability to execute on our business strategies.
- Our long-term success depends on our ability to acquire undeveloped land, partially finished developed lots and finished lots suitable for residential homebuilding at reasonable prices and in accordance with our land investment criteria.
- Our results of operations could be adversely affected if we are unable to develop communities successfully or within expected timeframes.
- Our future growth may include additional strategic investments, joint ventures, partnerships and/or acquisitions of companies that may not be as successful as we anticipate and could disrupt our ongoing businesses and adversely affect our operations.
- Our geographic concentration could materially and adversely affect us if the homebuilding industry in our current markets decline.
- Our developments are subject to government regulations, which could cause us to incur significant liabilities or restrict our business activities.
- Changes in global or regional environmental conditions and governmental actions in response to such changes may adversely affect us by increasing the costs of or restricting our planned or future growth activities.
- Our financial condition and results of operations may be adversely affected by a decrease in the value of our land or homes and the associated carrying costs.
- Demand for our homes and lots is dependent on the cost and availability of mortgage financing.
- High cancellation rates may negatively impact our business.
- Any increase in unemployment or underemployment may lead to an increase in the number of loan delinquencies and property repossessions, which would have an adverse impact on our business.
- Our results of operations could be adversely impacted by negative events at, or performance of, our partially owned controlled builders.
- Increases in the after-tax costs of owning a home could reduce demand for our homes and lots.
- Severe weather conditions, natural disasters, acts of war or terrorism could increase our operating expenses and reduce our revenues and cash flows.
- We may not be able to compete effectively against competitors in the homebuilding, land development and financial services industries.
- Our capital resources and liquidity could be adversely affected if we are required to repurchase or sell a substantial portion of the equity interest in our controlled homebuilding subsidiaries.
- We are subject to environmental laws and regulations, which may increase our costs, limit the areas in which we can build homes and develop land and delay completion of our projects.
- Poor relations with the residents of our communities, or with local real estate agents, could negatively impact our home sales, which could cause our revenues or results of operations to decline.
- Information technology failures and data security breaches could harm our business.
- Product liability and warranty claims and litigation that arise in the ordinary course of business may be costly, which could adversely affect our business.
- Our quarterly results of operations may fluctuate because our business is seasonal in nature.
- Shortages or extreme fluctuations in the availability of natural resources and utilities could have an adverse effect on our operations.
- We may suffer uninsured losses or suffer material losses in excess of insurance limits.
- Negative publicity could adversely affect our reputation and business.
- A major health and safety incident relating to our business could be costly in terms of potential liabilities and reputational damage.
- Our business and financial results could be adversely affected by the failure of persons who act on our behalf to comply with applicable regulations and guidelines.
- Products supplied to us and work done by subcontractors can expose us to risks that could adversely affect our business.
- Laws and regulations governing the residential mortgage industry could have an adverse effect on our business and financial results.
- We may be unable to obtain suitable bonding for the development of our housing projects.
- A negative change in our credit rating could adversely affect our business.
- Difficulty in obtaining sufficient capital could result in an inability to acquire land for our developments or increased costs and delays in the completion of development projects.
- Future issuances of our common stock or Series A preferred stock could adversely affect the market for our common and preferred stock or dilute the ownership interest of our stockholders.
- Our common and preferred stock are equity securities and are subordinate to our existing and future indebtedness and effectively subordinated to all indebtedness and other non-equity claims against our subsidiaries.
- Certain large stockholders own a significant percentage of our shares and exert significant influence over us. Their interests may not coincide with ours and they may make decisions with which we may disagree.
- Certain large stockholders’ shares have been and may in the future be sold into the market, which could cause the market price of our common stock to decrease significantly.
Management Discussion
- The $65.3 million increase in residential units revenue was driven by the 7.1% increase in the number of homes delivered partially offset by a 2.7% decrease in average sales price of new homes delivered. The increase in new homes delivered is attributable to the limited competition in our infill and infill-adjacent community sites, our reduced cycle times, and the continued low supply of existing and new home inventory in our markets. The decrease in the average sales price of homes delivered is attributable to an increase in the percentage of home deliveries by Trophy Signature Homes, Centre Living Homes, and CB JENI Homes over last year. These homebuilders had an average sales price below the Company average due to a mix of product type and selling more inventory in perimeter locations.