☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 85-2983036 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
14701 Philips Highway, Suite 300, Jacksonville, FL | 32256 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Class A Common Stock, par value $0.01 per share | DFH | NASDAQ Global Select Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
3 | ||
3 | ||
3 | ||
4 | ||
5 | ||
7 | ||
8 | ||
24 | ||
46 | ||
48 | ||
ITEM 1. |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 42,303,231 | $ | 35,495,595 | $ | 6,154,320 | $ | 35,495,595 | ||||||||
Restricted cash (VIE amounts of $7,798,669 and $8,793,201) | 49,432,884 | 49,715,553 | ||||||||||||||
Restricted cash (VIE amounts of $5,946,424 and $8,793,201) | 46,936,952 | 49,715,553 | ||||||||||||||
Accounts receivable | 51,021,302 | 24,927,903 | ||||||||||||||
Inventories: | ||||||||||||||||
Construction in process and finished homes | 477,052,901 | 396,630,945 | 537,758,853 | 396,630,945 | ||||||||||||
Joint venture owned land and lots (VIE amounts of $19,781,033 and $40,900,552) | 19,781,033 | 40,900,552 | ||||||||||||||
Joint venture owned land and lots (VIE amounts of $18,151,982 and $40,900,552) | 18,152,136 | 40,900,552 | ||||||||||||||
Company owned land and lots | 53,541,065 | 46,839,616 | 75,083,602 | 46,839,616 | ||||||||||||
Lot deposits | 91,690,711 | 66,272,347 | 107,717,122 | 66,272,347 | ||||||||||||
Equity method investments | 6,197,047 | 4,545,349 | 7,453,783 | 4,545,349 | ||||||||||||
Property and equipment, net | 4,662,184 | 4,309,071 | 4,228,857 | 4,309,071 | ||||||||||||
Operating lease right-of-use assets | 13,459,344 | 14,219,248 | 12,788,540 | 14,219,248 | ||||||||||||
Finance lease right-of-use assets | 304,099 | 335,791 | 256,612 | 335,791 | ||||||||||||
Intangible assets, net of amortization | 2,327,500 | 2,660,003 | 2,161,250 | 2,660,003 | ||||||||||||
Goodwill | 30,360,997 | 28,566,232 | 30,360,997 | 28,566,232 | ||||||||||||
Deferred tax asset | 571,277 | - | 3,312,736 | 0 | ||||||||||||
Other assets (VIE amounts of $708,946 and $1,288,359) | 75,038,216 | 43,189,939 | ||||||||||||||
Other assets (VIE amounts of $2,159,645 and $1,288,359) | 28,894,891 | 18,262,036 | ||||||||||||||
Total assets | $ | 866,722,489 | $ | 733,680,241 | $ | 932,281,953 | $ | 733,680,241 | ||||||||
Liabilities | ||||||||||||||||
Accounts payable (VIE amounts of $61,619 and $1,315,582) | $ | 53,383,908 | $ | 37,418,693 | ||||||||||||
Accrued expenses (VIE amounts of $8,519,606 and $9,977,268) | 73,525,827 | 67,401,055 | ||||||||||||||
Accounts payable (VIE amounts of $0 and $1,315,582) | 34,204,013 | 37,418,693 | ||||||||||||||
Accrued expenses (VIE amounts of $8,571,439 and $9,977,268) | 65,908,878 | 67,401,055 | ||||||||||||||
Customer deposits | 77,405,314 | 59,392,135 | 93,275,468 | 59,392,135 | ||||||||||||
Construction lines of credit | 319,999,950 | 289,878,716 | 365,000,000 | 289,878,716 | ||||||||||||
Notes payable (VIE amounts of $2,888,350 and $8,821,282) | 3,880,350 | 29,653,282 | ||||||||||||||
Notes payable (VIE amounts of $2,992,531 and $8,821,282) | 4,048,531 | 29,653,282 | ||||||||||||||
Operating lease liabilities | 13,680,884 | 14,410,560 | 13,064,645 | 14,410,560 | ||||||||||||
Finance lease liabilities | 305,987 | 345,062 | 267,198 | 345,062 | ||||||||||||
Contingent consideration | 24,340,269 | 23,157,524 | 27,110,480 | 23,157,524 | ||||||||||||
Total liabilities | $ | 566,522,489 | $ | 521,657,027 | $ | 602,879,213 | $ | 521,657,027 | ||||||||
Commitments and contingencies (Note 6) | 0 | 0 | ||||||||||||||
Mezzanine Equity | ||||||||||||||||
Preferred mezzanine equity | 6,515,415 | 55,638,450 | 6,703,460 | 55,638,450 | ||||||||||||
Common mezzanine equity | - | 20,593,001 | 0 | 20,593,001 | ||||||||||||
Total mezzanine equity | $ | 6,515,415 | $ | 76,231,451 | $ | 6,703,460 | $ | 76,231,451 | ||||||||
Members' Equity | ||||||||||||||||
Common members' equity | - | 103,852,646 | - | 103,852,646 | ||||||||||||
Total members' equity | $ | - | $ | 103,852,646 | $ | - | $ | 103,852,646 | ||||||||
Stockholders' Equity - Dream Finders Homes, Inc. | ||||||||||||||||
Class A common stock, $0.01 per share, 289,000,000 authorized, 32,295,329 outstanding | 322,953 | - | ||||||||||||||
Class B common stock, $0.01 per share, 61,000,000 authorized, 60,226,153 outstanding | 602,262 | - | ||||||||||||||
Class A common stock, $0.01 per share, 289,000,000 authorized, 32,295,329 outstanding | 322,953 | - | ||||||||||||||
Class B common stock, $0.01 per share, 61,000,000 authorized, 60,226,153 outstanding | 602,262 | - | ||||||||||||||
Additional paid-in capital | 253,837,980 | - | 255,289,812 | - | ||||||||||||
Retained earnings | 17,224,903 | - | 45,610,738 | - | ||||||||||||
Non-controlling interests | 21,696,487 | 31,939,117 | 20,873,515 | 31,939,117 | ||||||||||||
Total stockholders' and members' equity | 300,200,000 | 212,023,214 | 329,402,740 | 212,023,214 | ||||||||||||
Total liabilities, mezzanine equity, members' equity and stockholders' equity | $ | 866,722,489 | $ | 733,680,241 | $ | 932,281,953 | $ | 733,680,241 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues | $ | 343,560,365 | $ | 188,738,433 | $ | 365,276,101 | $ | 199,801,128 | $ | 708,836,466 | $ | 388,539,561 | ||||||||||||
Cost of sales | 291,036,761 | 163,745,683 | 303,589,420 | 171,236,637 | 594,626,181 | 334,982,320 | ||||||||||||||||||
Selling, general and administrative expense | 28,148,956 | 17,518,785 | 28,686,162 | 17,062,297 | 55,652,375 | 34,581,082 | ||||||||||||||||||
Income from equity in earnings of unconsolidated entities | (1,732,393 | ) | (1,359,388 | ) | (1,125,001 | ) | (1,926,702 | ) | (2,857,394 | ) | (3,286,090 | ) | ||||||||||||
Gain on sale of assets | (65,517 | ) | (34,095 | ) | ||||||||||||||||||||
Loss/(Gain) on sale of assets | 48,034 | (200 | ) | (17,483 | ) | (34,295 | ) | |||||||||||||||||
Loss on extinguishment of debt | 697,423 | - | 0 | 0 | 697,423 | 0 | ||||||||||||||||||
Other income | (482,219 | ) | (134,061 | ) | ||||||||||||||||||||
Other expense | 2,903,048 | 1,195,311 | ||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||
Other | (1,668,263 | ) | (785,153 | ) | (2,150,482 | ) | (919,214 | ) | ||||||||||||||||
Paycheck Protection Program forgiveness | (7,219,794 | ) | 0 | (7,219,794 | ) | 0 | ||||||||||||||||||
Other Expense | ||||||||||||||||||||||||
Other | 2,434,780 | 1,360,526 | 5,337,828 | 2,555,837 | ||||||||||||||||||||
Contingent consideration revaluation | 3,976,980 | 316,772 | 5,159,725 | 316,772 | ||||||||||||||||||||
Interest expense | 641,861 | 35,705 | 15,796 | 45,948 | 657,657 | 81,653 | ||||||||||||||||||
Income before taxes | 22,412,445 | 7,770,493 | 36,537,987 | 12,491,003 | 58,950,430 | 20,261,496 | ||||||||||||||||||
Income tax benefit (expense) | (4,816,482 | ) | - | |||||||||||||||||||||
Income tax expense | (4,478,317 | ) | 0 | (9,294,799 | ) | 0 | ||||||||||||||||||
Net and comprehensive income | $ | 17,595,963 | $ | 7,770,493 | $ | 32,059,670 | $ | 12,491,003 | $ | 49,655,631 | $ | 20,261,496 | ||||||||||||
Net and comprehensive income attributable to non-controlling interests | (1,475,318 | ) | (1,190,459 | ) | (3,485,789 | ) | (766,902 | ) | (4,961,107 | ) | (1,957,361 | ) | ||||||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc. | $ | 16,120,645 | $ | 6,580,034 | $ | 28,573,881 | $ | 11,724,101 | $ | 44,694,524 | $ | 18,304,135 | ||||||||||||
Earnings per share(1) | ||||||||||||||||||||||||
Basic | $ | 0.18 | $ | - | $ | 0.31 | $ | 0 | $ | 0.49 | $ | 0 | ||||||||||||
Diluted | $ | 0.18 | $ | - | $ | 0.31 | $ | 0 | $ | 0.49 | $ | 0 | ||||||||||||
Weighted-average number of share | ||||||||||||||||||||||||
Basic | 92,521,482 | - | 92,521,482 | 0 | 92,521,482 | 0 | ||||||||||||||||||
Diluted | 92,596,960 | - | 92,670,727 | 0 | 92,641,222 | 0 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | |||||||||||||||||||||||||||
Balance at December 31, 2019 | 49,555 | 58,269,166 | 5,774 | 16,248,246 | 76,655 | 56,502,464 | 30,471,371 | 161,491,247 | ||||||||||||||||||||||||
Unit compensation | - | - | - | - | - | 223,750 | - | 223,750 | ||||||||||||||||||||||||
Contributions | - | - | 1,236 | - | - | - | - | - | ||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | - | 1,768,846 | 1,768,846 | ||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Redemptions | (6 | ) | (6,000,000 | ) | - | - | - | - | - | (6,000,000 | ) | |||||||||||||||||||||
Distributions | - | - | - | - | - | (209,737 | ) | (3,339,472 | ) | (3,549,209 | ) | |||||||||||||||||||||
Net income (loss) | - | 1,166,715 | - | 453,552 | - | 4,959,767 | 1,190,459 | 7,770,493 | ||||||||||||||||||||||||
Balance at March 31, 2020 | 49,549 | $ | 53,435,881 | 7,010 | $ | 16,701,798 | 76,655 | $ | 61,476,244 | $ | 30,091,204 | $ | 161,705,127 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Common Stock - Class A | Common Stock - Class B | Additional Paid-in Capital | Retained Earnings | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 48,543 | 55,638,450 | 7,010 | 20,593,001 | 76,655 | 103,852,646 | - | - | - | - | - | - | 31,939,117 | 212,023,214 | ||||||||||||||||||||||||||||||||||||||||||
Unit compensation | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Contributions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Redemptions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Distributions | - | (3,617,390 | ) | - | (1,274,690 | ) | - | (18,384,243 | ) | - | - | - | - | - | - | (3,476,258 | ) | (26,752,581 | ) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | - | (157,451 | ) | - | (91,043 | ) | - | (995,588 | ) | - | - | - | - | - | - | 210,340 | (1,033,742 | ) | ||||||||||||||||||||||||||||||||||||||
Balance at January 20, 2021 - prior to reorganization transactions and IPO | 48,543 | $ | 51,863,609 | 7,010 | $ | 19,227,268 | 76,655 | $ | 84,472,815 | - | $ | - | - | $ | - | $ | - | $ | - | $ | 28,673,199 | $ | 184,236,891 | |||||||||||||||||||||||||||||||||
Reorganization transactions | (15,400 | ) | (19,957,513 | ) | (7,010 | ) | (19,227,268 | ) | (76,655 | ) | (84,472,815 | ) | 21,255,329 | 212,553 | 60,226,152 | 602,262 | 122,842,781 | - | - | |||||||||||||||||||||||||||||||||||||
Issuance of common stock in IPO, net | - | - | - | - | - | - | 11,040,000 | 110,400 | - | - | 129,886,962 | - | - | 129,997,362 | ||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | - | - | - | - | - | - | - | - | - | - | 1,108,238 | - | - | 1,108,238 | ||||||||||||||||||||||||||||||||||||||||||
Contributions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Redemptions | (26,000 | ) | (25,530,506 | ) | - | - | - | - | - | - | - | - | - | - | - | (25,530,506 | ) | |||||||||||||||||||||||||||||||||||||||
Distributions | - | - | - | - | - | - | - | - | - | - | - | - | (8,241,690 | ) | (8,241,690 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | - | 139,825 | - | - | - | - | - | - | - | - | - | 17,224,902 | 1,264,978 | 18,629,705 | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 7,143 | $ | 6,515,415 | - | $ | - | - | $ | - | 32,295,329 | $ | 322,953 | 60,226,152 | $ | 602,262 | $ | 253,837,981 | $ | 17,224,902 | $ | 21,696,487 | $ | 300,200,000 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income (loss) | $ | 17,595,963 | $ | 7,770,493 | ||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities | ||||||||
Depreciation | 973,006 | 801,441 | ||||||
Gain (Loss) on sale of property and equipment | (65,517 | ) | (34,095 | ) | ||||
Amortization of debt issuance costs | 910,747 | 543,305 | ||||||
Amortization of ROU operating lease | 759,904 | 447,421 | ||||||
Amortization of ROU financing lease | 31,691 | 34,291 | ||||||
Stock compensation expense | 1,108,238 | 223,750 | ||||||
Income tax expense (benefit) | 4,816,482 | - | ||||||
Income from equity method investments, net distributions received | (1,732,393 | ) | (1,359,388 | ) | ||||
Remeasurement of contingent consideration | 1,182,745 | - | ||||||
Changes in Operating Assets and Liabilities | ||||||||
Inventories | (36,695,361 | ) | (12,932,333 | ) | ||||
Lot deposits | (24,975,040 | ) | (1,229,085 | ) | ||||
Deferred tax asset | (571,277 | ) | - | |||||
Other assets | (31,575,067 | ) | 2,628,678 | |||||
Accounts payable and accrued expenses | 8,412,371 | (21,181,229 | ) | |||||
Customer deposits | 13,071,461 | 3,374,859 | ||||||
Operating lease liabilities | (729,676 | ) | (393,800 | ) | ||||
Net cash provided by (used in) operating activities | (47,481,723 | ) | (21,305,692 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of property and equipment | (709,764 | ) | (1,074,158 | ) | ||||
Proceeds from disposal of property and equipment | 330,216 | 34,295 | ||||||
Investments in equity method investments | - | (1,464,197 | ) | |||||
Return of investments from equity method investments | 80,696 | 1,380,086 | ||||||
Business combinations, net of cash acquired | (22,616,862 | ) | - | |||||
Net cash provided by (used in) investing activities | (22,915,714 | ) | (1,123,974 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Proceeds from construction lines of credit | 976,317,315 | 136,511,246 | ||||||
Principal payments on construction lines of credit | (946,702,546 | ) | (138,856,023 | ) | ||||
Proceeds from notes payable | 1,158,642 | 1,140,676 | ||||||
Principal payments on notes payable | (23,284,519 | ) | (6,033,237 | ) | ||||
Payment of debt issue costs | - | (268,570 | ) | |||||
Payments of equity issuance costs | (12,571,671 | ) | ||||||
Payments on financing leases | (39,075 | ) | (32,377 | ) | ||||
Contributions to non-controlling interests | - | 1,768,846 | ||||||
Distributions to non-controlling interests | (11,717,948 | ) | (3,339,472 | ) | ||||
Proceeds from stock issuance | 142,569,035 | - | ||||||
Distributions | (23,276,323 | ) | (209,738 | ) | ||||
Redemptions | (25,530,506 | ) | (6,000,000 | ) | ||||
Contribution from conversion of converted LLC units | 123,657,596 | - | ||||||
Conversion of LLC units | (123,657,596 | ) | - | |||||
Net cash provided by (used in) financing activities | 76,922,404 | (15,318,649 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,524,967 | (37,748,315 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of year | 85,211,148 | 68,728,414 | ||||||
Cash, cash equivalents and restricted cash at end of year | 91,736,115 | 30,980,099 | ||||||
Non-cash Financing Activities | ||||||||
Financed land payments to seller | 8,916,211 | - | ||||||
Leased assets obtained in exchange for new operating lease liabilities | - | - | ||||||
Leased assets obtained in exchange for new financing lease liabilities | - | - | ||||||
Preferred issuance | - | - | ||||||
Accrued distributions | - | - | ||||||
Equity issuance costs incurred | 905,965 | - | ||||||
Non-cash Investing Activities | ||||||||
Investment capital reallocation | (3,468,731 | ) | - | |||||
Total non-cash financing and investing activities | 6,353,445 | - | ||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash | ||||||||
Cash and cash equivalents | 42,303,231 | 11,503,283 | ||||||
Restricted cash | 49,432,884 | 19,476,816 | ||||||
Total cash, cash equivalents and restriced cash shown on the Consolidated Statements of Cash Flows | $ | 91,736,115 | $ | 30,980,099 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | |||||||||||||||||||||||||||
Balance at March 31, 2020 | 49,549 | $ | 53,435,881 | 7,010 | $ | 16,701,798 | 76,655 | $ | 61,476,244 | $ | 30,091,204 | $ | 161,705,127 | |||||||||||||||||||
Unit compensation | - | - | - | - | - | 223,750 | 0 | 223,750 | ||||||||||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | 1,789,482 | 1,789,482 | ||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | 0 | 0 | 0 | ||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | 0 | 0 | 0 | ||||||||||||||||||||||||
Redemptions | (1,000 | ) | (1,000,000 | ) | 0 | 0 | 0 | 0 | 0 | (1,000,000 | ) | |||||||||||||||||||||
Distributions | - | (344,592 | ) | - | 0 | - | (1,809,469 | ) | (1,237,665 | ) | (3,391,726 | ) | ||||||||||||||||||||
Net income (loss) | - | 1,943,190 | - | 817,339 | - | 8,963,572 | 766,902 | 12,491,003 | ||||||||||||||||||||||||
Balance at June 30, 2020 | 48,549 | $ | 54,034,479 | 7,010 | $ | 17,519,137 | 76,655 | $ | 68,854,097 | $ | 31,409,923 | $ | 171,817,636 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | |||||||||||||||||||||||||||
Balance December 31, 2019 | 49,555 | $ | 58,269,166 | 5,774 | $ | 16,248,246 | 76,655 | $ | 56,502,464 | $ | 30,471,371 | $ | 161,491,247 | |||||||||||||||||||
Unit compensation | - | - | - | - | - | 447,500 | 0 | 447,500 | ||||||||||||||||||||||||
Contributions | 0 | 0 | 1,236 | 0 | - | - | - | - | ||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | 0 | 3,558,328 | 3,558,328 | ||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | 0 | 0 | 0 | ||||||||||||||||||||||||
Redemptions | (1,006 | ) | (7,000,000 | ) | 0 | 0 | 0 | 0 | 0 | (7,000,000 | ) | |||||||||||||||||||||
Distributions | - | (344,591 | ) | - | 0 | - | (2,019,207 | ) | (4,577,137 | ) | (6,940,935 | ) | ||||||||||||||||||||
Net income (loss) | - | 3,109,904 | - | 1,270,891 | - | 13,923,340 | 1,957,361 | 20,261,496 | ||||||||||||||||||||||||
Balance at June 30, 2020 | 48,549 | $ | 54,034,479 | 7,010 | $ | 17,519,137 | 76,655 | $ | 68,854,097 | $ | 31,409,923 | $ | 171,817,636 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Common Stock - Class A | Common Stock - Class B | Additional Paid- in Capital | Retained Earnings | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 7,143 | $ | 6,515,415 | 0 | $ | 0 | 0 | $ | 0 | 32,295,329 | $ | 322,953 | 60,226,153 | $ | 602,262 | $ | 253,837,981 | $ | 17,224,902 | $ | 21,696,487 | $ | 300,200,000 | |||||||||||||||||||||||||||||||||
Equity-based compensation | - | - | - | - | - | 0 | - | 0 | - | 0 | 1,451,831 | 0 | 0 | 1,451,831 | ||||||||||||||||||||||||||||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Contribution from non-controlling interests | - | - | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Conversion of units | - | - | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Distributions | - | 0 | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 0 | (4,308,761 | ) | (4,308,761 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | - | 188,045 | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 28,385,836 | 3,485,789 | 32,059,670 | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 7,143 | $ | 6,703,460 | 0 | $ | 0 | 0 | $ | 0 | 32,295,329 | $ | 322,953 | 60,226,153 | $ | 602,262 | $ | 255,289,812 | $ | 45,610,738 | $ | 20,873,515 | $ | 329,402,740 |
Redeemable Preferred Units Mezzanine | Redeemable Common Units Mezzanine | Common Units Members' | Common Stock - Class A | Common Stock - Class B | Additional Paid- in Capital | Retained Earnings | Total Non-Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 48,543 | $ | 55,638,450 | 7,010 | $ | 20,593,001 | 76,655 | $ | 103,852,646 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 31,939,117 | $ | 212,023,214 | |||||||||||||||||||||||||||||||||
Unit compensation | - | - | - | - | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | 0 | - | - | - | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Redemptions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Distributions | - | (3,617,390 | ) | - | (1,274,690 | ) | - | (18,384,243 | ) | - | 0 | - | 0 | 0 | 0 | (3,476,258 | ) | (26,752,581 | ) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | - | (157,451 | ) | - | (91,043 | ) | - | (995,588 | ) | - | 0 | - | 0 | 0 | 0 | 210,340 | (1,033,742 | ) | ||||||||||||||||||||||||||||||||||||||
Balance at January 20, 2021 - prior to reorganization transactions and IPO | 48,543 | $ | 51,863,609 | 7,010 | $ | 19,227,268 | 76,655 | $ | 84,472,815 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 28,673,199 | $ | 184,236,891 | |||||||||||||||||||||||||||||||||
Reorganization transactions | (15,400 | ) | (19,957,513 | ) | (7,010 | ) | (19,227,268 | ) | (76,655 | ) | (84,472,815 | ) | 21,255,329 | 212,553 | 60,226,153 | 602,262 | 122,842,781 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in IPO, net | - | - | - | - | 0 | 0 | 11,040,000 | 110,400 | 0 | 0 | 129,886,962 | 0 | 0 | 129,997,362 | ||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | - | - | - | - | - | 0 | - | 0 | - | 0 | 2,560,069 | 0 | 0 | 2,560,069 | ||||||||||||||||||||||||||||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interests | - | - | - | - | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Conversion of units | - | - | - | - | - | 0 | - | 0 | - | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Redemptions | (26,000 | ) | (25,530,504 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (25,530,504 | ) | |||||||||||||||||||||||||||||||||||||||
Distributions | - | 0 | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 0 | (12,550,451 | ) | (12,550,451 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | - | 327,868 | - | 0 | - | 0 | - | 0 | - | 0 | 0 | 45,610,738 | 4,750,767 | 50,689,373 | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 7,143 | $ | 6,703,460 | 0 | $ | 0 | 0 | $ | 0 | 32,295,329 | $ | 322,953 | 60,226,153 | $ | 602,262 | $ | 255,289,812 | $ | 45,610,738 | $ | 20,873,515 | $ | 329,402,740 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 49,655,631 | $ | 20,261,496 | ||||
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities | ||||||||
Depreciation | 1,927,248 | 1,644,234 | ||||||
Loss on sale of property and equipment | 17,483 | (34,295 | ) | |||||
Amortization of debt issuance costs | 1,429,135 | 1,007,022 | ||||||
Amortization of right-of-use operating lease | 1,694,652 | 1,652,188 | ||||||
Amortization of right-of-use financing lease | 79,179 | 79,179 | ||||||
Payments of operating leases | (263,945 | ) | 0 | |||||
Stock compensation expense | 2,560,069 | 447,500 | ||||||
Income fom Paycheck Protection Program | 7,219,794 | 0 | ||||||
Income tax expense | 9,294,799 | 0 | ||||||
Income from equity method investments, net of distributions received | (2,857,394 | ) | (1,153,868 | ) | ||||
Remeasurement of contingent consideration | 5,159,725 | 316,772 | ||||||
Changes in Operating Assets and Liabilities | ||||||||
Inventories | (117,314,953 | ) | (44,451,745 | ) | ||||
Lot deposits | (41,001,451 | ) | (153,617 | ) | ||||
Deferred tax asset | (3,312,736 | ) | 0 | |||||
Other assets | (33,087,440 | ) | (1,863,186 | ) | ||||
Accounts payable and accrued expenses | (30,082,584 | ) | (5,997,441 | ) | ||||
Customer deposits | 28,941,611 | 1,788,697 | ||||||
Operating lease liabilities | (1,345,915 | ) | (1,542,667 | ) | ||||
Net cash used in operating activities | (121,287,092 | ) | (27,999,731 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of property and equipment | (1,277,667 | ) | (1,899,210 | ) | ||||
Proceeds from disposal of property and equipment | 460,456 | 0 | ||||||
Investments in equity method investments | (600,000 | ) | (1,151,330 | ) | ||||
Return of investments from equity method investments | 548,961 | 3,892,354 | ||||||
Business combinations, net of cash acquired | (22,616,862 | ) | 0 | |||||
Net cash used in investing activities | (23,485,112 | ) | 841,814 | |||||
Cash Flows from Financing Activities | ||||||||
Proceeds from construction lines of credit | 1,001,317,365 | 290,977,833 | ||||||
Principal payments on construction lines of credit | (926,702,546 | ) | (261,002,424 | ) | ||||
Proceeds from notes payable | 2,420,323 | 3,963,930 | ||||||
Principal payments on notes payable | (24,378,019 | ) | (7,610,584 | ) | ||||
Payment of debt issue costs | (3,883,992 | ) | (514,695 | ) | ||||
Payments of equity issuance costs | (12,571,671 | ) | 0 | |||||
Payments on financing leases | (77,864 | ) | (75,873 | ) | ||||
Payments on contingent consideration | (1,206,769 | ) | ||||||
Contributions from non-controlling interests | 0 | 3,558,328 | ||||||
Distributions to non-controlling interests | (16,026,705 | ) | (4,577,137 | ) | ||||
Proceeds from stock issuance | 142,569,035 | 0 | ||||||
Distributions | (23,276,323 | ) | (2,233,849 | ) | ||||
Redemptions | (25,530,506 | ) | (7,000,000 | ) | ||||
Contribution from conversion of converted LLC units | 123,657,596 | 0 | ||||||
Conversion of LLC units | (123,657,596 | ) | 0 | |||||
Net cash provided by (used in) financing activities | 112,652,328 | 15,485,529 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (32,119,876 | ) | (11,672,388 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 85,211,148 | 68,728,414 | ||||||
Cash, cash equivalents and restricted cash at end of period | 53,091,272 | 57,056,026 | ||||||
Non-cash Financing Activities | ||||||||
Financed land payments to seller | 8,916,211 | 0 | ||||||
Leased assets obtained in exchange for new operating lease liabilities | 0 | 133,202 | ||||||
Accrued distributions | 0 | 129,948 | ||||||
Equity issuance costs incurred | 905,965 | 0 | ||||||
Non-cash Investing Activities | ||||||||
Investment capital reallocation | (3,468,731 | ) | 0 | |||||
Total non-cash financing and investing activities | 6,353,445 | 263,150 | ||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash | ||||||||
Cash and cash equivalents | 6,154,320 | 35,057,235 | ||||||
Restricted cash | 46,936,952 | 21,998,791 | ||||||
Total cash, cash equivalents and restriced cash shown on the Consolidated Statements of Cash Flows | $ | 53,091,272 | $ | 57,056,026 |
1. | Nature of Business and Significant Accounting Policies |
2. | Business Acquisition |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
Unaudited Pro Forma | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Total revenue | $ | 350,142,959 | $ | 247,201,240 | $ | 365,276,101 | $ | 275,723,212 | 715,419,060 | $ | 522,924,452 | ||||||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc. | $ | 16,442,614 | $ | 7,278,689 | $ | 28,573,881 | $ | 15,034,154 | 45,016,495 | $ | 22,312,843 |
3. | Construction Lines of Credit |
As of March 31, | As of December 31, | As of June 30, | As of December 31, | |||||||||||||||||||||||||||||||
Renewal Date | Payment Terms | 2021 | 2021 Effective Rate | 2020 | 2020 Effective Rate | Payment Terms | 2021 | 2021 Effective Rate | 2020 | 2020 Effective Rate | ||||||||||||||||||||||||
January 25, 2024 | Interest is payable based on the Applicable Rate per the Credit Agreement | 320,000,000 | 3.50 | % | - | - | Interest is payable based on the Applicable Rate per the Credit Agreement | 365,000,000 | 3.97 | % | 0 | 0 | ||||||||||||||||||||||
November 30, 2019 | Interest is payable monthly, at the greater of Prime rate or 4.25% | - | - | 545,350 | 4.25 | % | Interest is payable monthly, at the greater of Prime rate or 4.25% | 0 | 0 | 545,350 | 4.25 | % | ||||||||||||||||||||||
November 30, 2019 | Interest is payable monthly at the greater of the Prime rate plus 1.00% or 5.50% | - | - | 540,565 | 5.50 | % | Interest is payable monthly at the greater of the Prime rate plus 1.00% or 5.50% | 0 | 0 | 540,565 | 5.50 | % | ||||||||||||||||||||||
February 9, 2021 | Interest is payable monthly at 3.40% plus 30-day LIBOR | - | - | 390,000 | 4.06 | % | Interest is payable monthly at 3.40% plus 30-day LIBOR | 0 | 0 | 390,000 | 4.06 | % | ||||||||||||||||||||||
March 31, 2021 | Interest is payable monthly at 9.50% | - | - | 269,030 | 10.33 | % | Interest is payable monthly at 9.50% | 0 | 0 | 269,030 | 10.33 | % | ||||||||||||||||||||||
April 30, 2021 | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 3.75% | - | - | 11,923,342 | 6.53 | % | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 3.75% | 0 | 0 | 11,923,342 | 6.53 | % | ||||||||||||||||||||||
April 30, 2021 | Interest is payable monthly at the Prime rate plus 0.50% | - | - | 3,521,203 | 3.93 | % | Interest is payable monthly at the Prime rate plus 0.50% | 0 | 0 | 3,521,203 | 3.93 | % | ||||||||||||||||||||||
May 10, 2021 | Interest is payable monthly at the greater of Prime rate plus 0.50% or 4.25% | - | - | 7,391,080 | 6.39 | % | Interest is payable monthly at the greater of Prime rate plus 0.50% or 4.25% | 0 | 0 | 7,391,080 | 6.39 | % | ||||||||||||||||||||||
June 12, 2021 | Interest is payable monthly at 3.00% plus 3-month LIBOR | - | - | 14,457,573 | 3.96 | % | Interest is payable monthly at 3.00% plus 3-month LIBOR | 0 | 0 | 14,457,573 | 3.96 | % | ||||||||||||||||||||||
June 30, 2021 | Interest is payable monthly at the greater of 3.50% plus 30-day LIBOR or 4.50% | - | - | 17,290,107 | 4.80 | % | Interest is payable monthly at the greater of 3.50% plus 30-day LIBOR or 4.50% | 0 | 0 | 17,290,107 | 4.80 | % | ||||||||||||||||||||||
June 30, 2021 | Interest is payable monthly at 3.75% + 1-month LIBOR | - | - | 13,318,374 | 4.37 | % | Interest is payable monthly at 3.75% + 1-month LIBOR | 0 | 0 | 13,318,374 | 4.37 | % | ||||||||||||||||||||||
August 25, 2021 | Interest is payable monthly at the Prime rate plus 0.75% | - | - | 1,486,800 | 3.81 | % | Interest is payable monthly at the Prime rate plus 0.75% | 0 | 0 | 1,486,800 | 3.81 | % | ||||||||||||||||||||||
September 30, 2021 | Interest is payable monthly at 3.00% plus 3-month LIBOR. | (50 | ) | - | 62,127,292 | 3.91 | % | Interest is payable monthly at 3.00% plus 3-month LIBOR. | 0 | 0 | 62,127,292 | 3.91 | % | |||||||||||||||||||||
October 1, 2021 | Interest is payable monthly at the greater of 4.50% or 3.90% plus 1-month LIBOR. | - | - | 11,863,043 | 6.42 | % | Interest is payable monthly at the greater of 4.50% or 3.90% plus 1-month LIBOR. | 0 | 0 | 11,863,043 | 6.42 | % | ||||||||||||||||||||||
October 2, 2021 | Interest is payable monthly at the greater of 4.00% or 3.75% plus 1-month LIBOR | - | - | 4,361,201 | 7.75 | % | Interest is payable monthly at the greater of 4.00% or 3.75% plus 1-month LIBOR | 0 | 0 | 4,361,201 | 7.75 | % | ||||||||||||||||||||||
October 2, 2021 | Interest is payable monthly at the greater of the Prime rate plus 1.00% or 5.00% | - | - | 14,525,422 | 5.00 | % | Interest is payable monthly at the greater of the Prime rate plus 1.00% or 5.00% | 0 | 0 | 14,525,422 | 5.00 | % | ||||||||||||||||||||||
October 5, 2021 | Interest is payable monthly at 4.50% plus 1-month LIBOR | - | - | 11,227,212 | 5.03 | % | Interest is payable monthly at 4.50% plus 1-month LIBOR | 0 | 0 | 11,227,212 | 5.03 | % | ||||||||||||||||||||||
October 25, 2021 | Interest is payable monthly at the Prime rate plus 0.50% | - | - | 861,909 | 4.77 | % | Interest is payable monthly at the Prime rate plus 0.50% | 0 | 0 | 861,909 | 4.77 | % | ||||||||||||||||||||||
November 2, 2021 | Interest is payable monthly at the greater of the Prime rate plus 0.75% or 4.50% | - | - | 8,034,458 | 6.01 | % | Interest is payable monthly at the greater of the Prime rate plus 0.75% or 4.50% | 0 | 0 | 8,034,458 | 6.01 | % | ||||||||||||||||||||||
December 15, 2021 | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 5.00% | - | - | 2,205,715 | 4.24 | % | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 5.00% | 0 | 0 | 2,205,715 | 4.24 | % | ||||||||||||||||||||||
December 18, 2021 | Interest is payable monthly at 3.00% plus 30-day LIBOR | - | - | 8,468,565 | 4.17 | % | Interest is payable monthly at 3.00% plus 30-day LIBOR | 0 | 0 | 8,468,565 | 4.17 | % | ||||||||||||||||||||||
December 18, 2021 | Interest is payable monthly at 3.95% plus 1-month LIBOR | - | - | 9,558,836 | 6.00 | % | Interest is payable monthly at 3.95% plus 1-month LIBOR | 0 | 0 | 9,558,836 | 6.00 | % | ||||||||||||||||||||||
December 31, 2021 | Interest is payable monthly at 9.00% | - | - | 1,821,515 | 10.33 | % | Interest is payable monthly at 9.00% | 0 | 0 | 1,821,515 | 10.33 | % | ||||||||||||||||||||||
December 31, 2021 | Interest is payable monthly at 9.50% | - | - | 259,157 | 10.33 | % | Interest is payable monthly at 9.50% | 0 | 0 | 259,157 | 10.33 | % | ||||||||||||||||||||||
April 1, 2022 | Interest is payable monthly at 9.50%. | - | - | 2,925,686 | 10.33 | % | Interest is payable monthly at 9.50%. | 0 | 0 | 2,925,686 | 10.33 | % | ||||||||||||||||||||||
April 20, 2022 | Interest is payable monthly at 9.50% | - | - | 639,437 | 10.33 | % | Interest is payable monthly at 9.50% | 0 | 0 | 639,437 | 10.33 | % | ||||||||||||||||||||||
April 30, 2022 | Interest is payable monthly at 9.50%. | - | - | 1,028,131 | 10.33 | % | Interest is payable monthly at 9.50%. | 0 | 0 | 1,028,131 | 10.33 | % | ||||||||||||||||||||||
October 5, 2022 | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 4.00% | - | - | 5,828,931 | 4.00 | % | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 4.00% | 0 | 0 | 5,828,931 | 4.00 | % | ||||||||||||||||||||||
October 20, 2022 | Interest is payable monthly at the greater of 4.00% or 2.75% plus 3-month LIBOR | - | - | 11,289,202 | 4.51 | % | Interest is payable monthly at the greater of 4.00% or 2.75% plus 3-month LIBOR | 0 | 0 | 11,289,202 | 4.51 | % | ||||||||||||||||||||||
October 20, 2022 | Interest is payable monthly at the greater of 4.50% or 3.90% plus 3-month LIBOR | - | - | 13,408,970 | 6.62 | % | Interest is payable monthly at the greater of 4.50% or 3.90% plus 3-month LIBOR | 0 | 0 | 13,408,970 | 6.62 | % | ||||||||||||||||||||||
June 19, 2023 | Interest is payable monthly at the greater of 4.00% or 2.75% plus 3-month LIBOR. | - | - | 8,790,640 | 4.15 | % | Interest is payable monthly at the greater of 4.00% or 2.75% plus 3-month LIBOR. | 0 | 0 | 8,790,640 | 4.15 | % | ||||||||||||||||||||||
June 19, 2023 | Interest is payable monthly at the greater of 4.00% or the Prime rate plus 0.50%. | - | - | 23,737,991 | 4.92 | % | Interest is payable monthly at the greater of 4.00% or the Prime rate plus 0.50%. | 0 | 0 | 23,737,991 | 4.92 | % | ||||||||||||||||||||||
November 6, 2023 | Interest is payable monthly at the greater of the Prime rate plus 0.38% or 3.65% | - | - | 4,043,089 | 4.64 | % | Interest is payable monthly at the greater of the Prime rate plus 0.38% or 3.65% | 0 | 0 | 4,043,089 | 4.64 | % | ||||||||||||||||||||||
December 31, 2023 | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 4.00% | - | - | 894,300 | 4.00 | % | Interest is payable monthly at the greater of the Prime rate plus 0.50% or 4.00% | 0 | 0 | 894,300 | 4.00 | % | ||||||||||||||||||||||
Various | Interest is payable monthly at the greater of the Prime rate or 5.00%. | - | - | 11,351,056 | 5.02 | % | Interest is payable monthly at the greater of the Prime rate or 5.00%. | 0 | 0 | 11,351,056 | 5.02 | % | ||||||||||||||||||||||
Total lines of credit outstanding | Total lines of credit outstanding | $ | 319,999,950 | $ | 290,385,182 | Total lines of credit outstanding | $ | 365,000,000 | $ | 290,385,182 | ||||||||||||||||||||||||
Less: Debt issuance costs from lines of credit | Less: Debt issuance costs from lines of credit | (4,263,768 | ) | (506,466 | ) | Less: Debt issuance costs from lines of credit | (3,883,992 | ) | (506,466 | ) | ||||||||||||||||||||||||
Lines of credit, net | Lines of credit, net | $ | 315,736,182 | $ | 289,878,716 | Lines of credit, net | $ | 361,116,008 | $ | 289,878,716 |
4. | Notes Payable |
As of March 31, | As of December 31, | ||||||||||||||||||||
Maturity Date | Payment Terms | 2021 | 2021 Effective Rate | 2020 | 2020 Effective Rate | ||||||||||||||||
May 1, 2021 | Interest is payable monthly at 14.00% | $ | - | 14.00 | % | $ | 20,000,000 | 14.00 | % | ||||||||||||
February 28, 2022 | (1 | ) | Non-interest bearing | 992,000 | 0.00 | % | 832,000 | 0.00 | % | ||||||||||||
April 1, 2022 | (1 | ) | Interest is payable monthly at 12.50% | 717,642 | 12.50 | % | 1,735,161 | 12.50 | % | ||||||||||||
July 31, 2022 | (1 | ) | Interest is payable monthly at 9.25% | 2,170,708 | 9.25 | % | 3,984,174 | 9.25 | % | ||||||||||||
March 25, 2023 | (1 | ) | Interest is payable monthly at 5.00% | - | 5.00 | % | 3,101,947 | 5.00 | % | ||||||||||||
Total notes payable | $ | 3,880,350 | $ | 29,653,282 | |||||||||||||||||
Less: Debt issuance costs from notes payable | - | (15,444 | ) | ||||||||||||||||||
Notes payable, net of discount | $ | 3,880,350 | $ | 29,637,838 |
As of June 30, | As of December 31, | ||||||||||||||||||||
Maturity Date | Payment Terms | 2021 | 2021 Effective Rate | 2020 | 2020 Effective Rate | ||||||||||||||||
May 1, 2021 | Interest is payable monthly at 14.00% | $ | 0 | 0 | $ | 20,000,000 | 14.00 | % | |||||||||||||
February 28, 2022 | (1 | ) | Non-interest bearing | 1,056,000 | 0.00 | % | 832,000 | 0.00 | % | ||||||||||||
April 1, 2022 | (1 | ) | Interest is payable monthly at 12.50% | 717,642 | 12.50 | % | 1,735,161 | 12.50 | % | ||||||||||||
July 31, 2022 | (1 | ) | Interest is payable monthly at 9.25% | 2,274,889 | 9.25 | % | 3,984,174 | 9.25 | % | ||||||||||||
March 25, 2023 | (1 | ) | Interest is payable monthly at 5.00% | 0 | 0 | 3,101,947 | 5.00 | % | |||||||||||||
Total notes payable | $ | 4,048,531 | $ | 29,653,282 | |||||||||||||||||
Less: Debt issuance costs from notes payable | 0 | (15,444 | ) | ||||||||||||||||||
Notes payable, net of discount | $ | 4,048,531 | $ | 29,637,838 |
5. | Inventories |
As of March 31, | As of December 31, | |||||||
2021 | 2020 | |||||||
Construction in process | $ | 477,052,901 | $ | 396,630,945 | ||||
Finished lots and land | 53,541,065 | 46,839,616 | ||||||
Inventories owned by the Company | 530,593,966 | 443,470,561 | ||||||
Inventories owned by consolidated joint ventures | 19,781,033 | 40,900,552 | ||||||
Total inventories | $ | 550,374,999 | $ | 484,371,113 | ||||
Percentage of inventories owned by the Company | ||||||||
Construction in process | 90 | % | 89 | % | ||||
Finished lots and land | 10 | % | 11 | % |
As of June 30, | As of December 31, | |||||||
2021 | 2020 | |||||||
Construction in process | $ | 537,758,853 | $ | 396,630,945 | ||||
Finished lots and land | 75,083,602 | 46,839,616 | ||||||
Inventories owned by the Company | 612,842,455 | 443,470,561 | ||||||
Inventories owned by consolidated joint ventures | 18,152,136 | 40,900,552 | ||||||
Total inventories | $ | 630,994,591 | $ | 484,371,113 | ||||
Percentage of inventories owned by the Company | ||||||||
Construction in process | 88 | % | 89 | % | ||||
Finished lots and land | 12 | % | 11 | % |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Capitalized interest at the beginning of the period | $ | 21,091,297 | $ | 25,335,924 | $ | 18,841,743 | $ | 26,348,739 | $ | 21,091,298 | $ | 25,335,924 | ||||||||||||
Interest incurred | 6,667,990 | 7,040,706 | 7,329,308 | 6,597,679 | 13,997,297 | 13,638,385 | ||||||||||||||||||
Interest expensed | (641,861 | ) | (35,705 | ) | (15,796 | ) | (45,948 | ) | (657,657 | ) | (81,653 | ) | ||||||||||||
Interest charged to cost of contract revenues earned | (8,275,683 | ) | (5,992,186 | ) | (7,364,594 | ) | (5,806,327 | ) | (15,640,277 | ) | (11,798,513 | ) | ||||||||||||
Capitalized interest at the end of the period | $ | 18,841,743 | $ | 26,348,739 | $ | 18,790,661 | $ | 27,094,143 | $ | 18,790,661 | $ | 27,094,143 |
6. | Commitments and Contingencies |
7. | Members’ Equity, Mezzanine Equity and Shareholders’ Equity |
8. | Equity-Based Compensation |
9. | Variable Interest Entities and Investments in Other Entities |
As of March 31, | As of December 31, | As of June 30, | As of December 31, | |||||||||||||
Consolidated | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Assets | $ | 28,288,648 | $ | 50,982,111 | $ | 26,258,051 | $ | 50,982,111 | ||||||||
Liabilities | $ | 11,469,575 | $ | 20,114,132 | $ | 11,563,970 | $ | 20,114,132 |
As of March 31, | As of December 31, | As of June 30, | As of December 31, | |||||||||||||
Unconsolidated | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Jet Home Loans | 5,604,482 | 3,872,089 | 6,729,483 | 3,872,089 | ||||||||||||
Total investment in unconsolidated VIEs | $ | 5,604,482 | $ | 3,872,089 | $ | 6,729,483 | $ | 3,872,089 | ||||||||
Other equity method investments | 592,565 | 673,260 | 724,300 | 673,260 | ||||||||||||
Total equity method investments | $ | 6,197,047 | $ | 4,545,349 | $ | 7,453,783 | $ | 4,545,349 |
10. | Income Taxes |
Three Months Ended March 31, | ||||
2021 | ||||
Current: | ||||
Federal | $ | 3,514,733 | ||
State | 1,347,719 | |||
Deferred: | ||||
Federal | (14,861 | ) | ||
State | (31,109 | ) | ||
Income tax expense | $ | 4,816,482 |
Three Months Ended March 31, | ||||
2021 | ||||
Deferred tax assets: | ||||
Accrued warranty | $ | 980,897 | ||
Property and equipment | 257,608 | |||
Total deferred tax assets | 1,238,505 | |||
Less: Deferred tax liabilities | (667,228 | ) | ||
Net deferred tax asset | $ | 571,277 |
Three Months Ended March 31, | ||||||||
2021 | Effective Rate | |||||||
Income taxes computed at the federal statutory rate | $ | 4,396,797 | 21 | % | ||||
State income taxes, net of federal income tax benefit(1) | 1,040,122 | 5 | % | |||||
Permanent difference | 962,723 | 5 | % | |||||
Estimate of federal tax credits(1) | (1,583,160 | ) | -8 | % | ||||
Income tax expense | $ | 4,816,482 | 23 | % |
11. | Segment Reporting |
For the Three Months Ended March 31, | ||||||||
Revenues: | 2021 | 2020 | ||||||
The Carolinas (H&H) | 98,503,439 | - | ||||||
Jacksonville | 96,581,156 | 78,325,635 | ||||||
Orlando | 64,435,595 | 7,841,820 | ||||||
Colorado | 15,210,130 | 21,661,356 | ||||||
DC Metro | 13,948,185 | 27,520,055 | ||||||
Jet Home Loans | 7,019,453 | 6,767,000 | ||||||
Other | 54,881,860 | 53,389,567 | ||||||
Total segment revenues | $ | 350,579,818 | $ | 195,505,433 | ||||
Reconciling items from equity method investments | (7,019,453 | ) | (6,767,000 | ) | ||||
Consolidated revenues | $ | 343,560,365 | $ | 188,738,433 |
For the Three Months Ended March 31, | ||||||||
Net and comprehensive income: | 2021 | 2020 | ||||||
The Carolinas (H&H) | 4,150,391 | - | ||||||
Jacksonville | 8,208,925 | 6,372,571 | ||||||
Orlando | 5,328,486 | (626,648 | ) | |||||
Colorado | 454,831 | 1,991,039 | ||||||
DC Metro | 389,479 | 64,059 | ||||||
Jet Home Loans | 2,832,285 | 2,774,128 | ||||||
Other | (1,965,329 | ) | (1,389,916 | ) | ||||
Total segment net and comprehensive income | $ | 19,399,068 | $ | 9,185,233 | ||||
Reconciling items from equity method investments | (3,278,423 | ) | (2,605,199 | ) | ||||
Consolidated net and comprehensive income | $ | 16,120,645 | $ | 6,580,034 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Revenues: | 2021 | 2020 | 2021 | 2020 | ||||||||||||
The Carolinas (H&H) | 94,829,329 | 0 | 193,332,768 | 0 | ||||||||||||
Jacksonville | 93,937,144 | 75,610,386 | 190,518,300 | 153,936,021 | ||||||||||||
Orlando | 60,181,690 | 27,725,351 | 124,617,284 | 35,567,171 | ||||||||||||
Colorado | 24,797,393 | 22,224,544 | 40,007,523 | 43,885,900 | ||||||||||||
DC Metro | 23,898,300 | 20,330,163 | 37,846,485 | 47,850,218 | ||||||||||||
Jet Home Loans | 5,825,841 | 8,595,000 | 12,845,294 | 15,362,000 | ||||||||||||
Other | 67,632,245 | 53,910,684 | 122,514,105 | 107,300,251 | ||||||||||||
Total segment revenues | $ | 371,101,942 | $ | 208,396,128 | $ | 721,681,759 | $ | 403,901,561 | ||||||||
Reconciling items from equity method investments | (5,825,841 | ) | (8,595,000 | ) | (12,845,293 | ) | (15,362,000 | ) | ||||||||
Consolidated revenues | $ | 365,276,101 | $ | 199,801,128 | $ | 708,836,466 | $ | 388,539,561 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Net and comprehensive income: | 2021 | 2020 | 2021 | 2020 | ||||||||||||
The Carolinas (H&H) | 1,073,553 | 0 | 5,223,943 | 0 | ||||||||||||
Jacksonville | 11,277,050 | 3,080,209 | 19,485,975 | 9,452,780 | ||||||||||||
Orlando | 5,111,017 | 2,005,808 | 10,439,504 | 1,379,160 | ||||||||||||
Colorado | 2,385,181 | 2,204,392 | 2,840,011 | 4,195,431 | ||||||||||||
DC Metro | 1,609,360 | 572,280 | 1,998,839 | 636,339 | ||||||||||||
Jet Home Loans | 2,215,732 | 3,932,023 | 5,048,017 | 6,706,150 | ||||||||||||
Other | 9,558,216 | 2,701,612 | 7,592,889 | 1,311,696 | ||||||||||||
Total segment net and comprehensive income | $ | 33,230,109 | $ | 14,496,324 | $ | 52,629,178 | $ | 23,681,556 | ||||||||
Reconciling items from equity method investments | (1,170,439 | ) | (2,005,321 | ) | (2,973,547 | ) | (3,420,060 | ) | ||||||||
Consolidated net and comprehensive income | $ | 32,059,670 | $ | 12,491,003 | $ | 49,655,631 | $ | 20,261,496 |
As of March 31, | As of December 31, | |||||||
Assets: | 2021 | 2020 | ||||||
The Carolinas (H&H) | 180,395,236 | 161,242,384 | ||||||
Jacksonville | 71,189,207 | 162,668,740 | ||||||
Orlando | 115,056,816 | 77,299,028 | ||||||
Colorado | 47,026,053 | 51,605,969 | ||||||
DC Metro | 59,695,352 | 41,327,694 | ||||||
Jet Home Loans | 180,591,753 | 38,696,793 | ||||||
Other (1) | 266,775,535 | 235,664,336 | ||||||
Total segment assets | $ | 920,729,952 | $ | 768,504,944 | ||||
Reconciling items from equity method investments | (54,007,463 | ) | (34,824,703 | ) | ||||
Consolidated assets | $ | 866,722,489 | $ | 733,680,241 |
As of June 30, | As of December 31, | |||||||
Assets: | 2021 | 2020 | ||||||
The Carolinas (H&H) | 188,548,107 | 161,242,384 | ||||||
Jacksonville | 201,579,367 | 162,668,740 | ||||||
Orlando | 121,424,408 | 77,299,028 | ||||||
Colorado | 82,016,330 | 51,605,969 | ||||||
DC Metro | 68,087,920 | 41,327,694 | ||||||
Jet Home Loans | 59,901,657 | 38,696,793 | ||||||
Other (1) | 263,584,401 | 235,664,336 | ||||||
Total segment assets | $ | 985,142,190 | $ | 768,504,944 | ||||
Reconciling items from equity method investments | (52,860,237 | ) | (34,824,703 | ) | ||||
Consolidated assets | $ | 932,281,953 | $ | 733,680,241 |
(1) | Other includes the Company’s title operations, homebuilding operations in non-reportable segments, operations of the corporate component, and corporate assets such as cash and cash equivalents, cash held in trust, prepaid insurance, operating and financing leases, lot deposits, goodwill, as well as property and equipment. |
12. | Fair Value Disclosures |
13. | Related Party Transactions |
14. | Earnings per Share |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15. | Subsequent Events |
For the Three Months Ended June 30, (unaudited) | ||||||||||||||||
2021 | 2020 | Amount Change | % Change | |||||||||||||
Revenues | $ | 365,276,101 | $ | 199,801,128 | $ | 165,474,973 | 83 | % | ||||||||
Cost of sales | 303,589,420 | 171,236,637 | 132,352,783 | 77 | % | |||||||||||
Selling, general and administrative expense | 28,686,162 | 17,062,297 | 11,623,865 | 68 | % | |||||||||||
Income from equity in earnings of unconsolidated entities | (1,125,001 | ) | (1,926,702 | ) | 801,701 | -42 | % | |||||||||
Loss/(Gain) on sale of assets | 48,034 | (200 | ) | 48,234 | -24117 | % | ||||||||||
Loss on extinguishment of debt | - | - | - | 100 | % | |||||||||||
Other Income | ||||||||||||||||
Other | (1,668,263 | ) | (785,153 | ) | (883,109 | ) | 100 | % | ||||||||
Paycheck Protection Program forgiveness | (7,219,794 | ) | - | (7,219,794 | ) | 100 | % | |||||||||
Other Expense | ||||||||||||||||
Other | 2,434,780 | 1,360,526 | 1,074,253 | 79 | % | |||||||||||
Contingent consideration revaluation | 3,976,980 | 316,772 | 3,660,208 | 100 | % | |||||||||||
Interest expense | 15,796 | 45,948 | (30,152 | ) | -66 | % | ||||||||||
Income before taxes | $ | 36,537,987 | $ | 12,491,003 | $ | 24,046,984 | 193 | % | ||||||||
Income tax expense | (4,478,317 | ) | - | (4,478,317 | ) | 100 | % | |||||||||
Net and comprehensive income | $ | 32,059,670 | $ | 12,491,003 | $ | 19,568,667 | 157 | % | ||||||||
Net and comprehensive income attributable to non-controlling interests | (3,485,789 | ) | (766,902 | ) | (2,718,887 | ) | 355 | % | ||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc. | 28,573,881 | 11,724,101 | 16,849,780 | 144 | % | |||||||||||
Earnings per share(6) | ||||||||||||||||
Basic | $ | 0.31 | $ | - | $ | 0.31 | 100 | % | ||||||||
Diluted | $ | 0.31 | $ | - | $ | 0.31 | 100 | % | ||||||||
Weighted-average number of shares | ||||||||||||||||
Basic | 92,521,482 | - | 92,521,482 | 100 | % | |||||||||||
Diluted | 92,670,727 | - | 92,670,727 | 100 | % | |||||||||||
Consolidated Balance Sheets Data (at period end): | ||||||||||||||||
Cash and cash equivalents | $ | 6,154,320 | $ | 35,057,235 | $ | (28,902,915 | ) | -82 | % | |||||||
Total assets | $ | 932,281,953 | $ | 546,819,564 | $ | 385,462,389 | 70 | % | ||||||||
Short-term debt, net | $ | 369,048,531 | $ | 258,834,551 | $ | 110,213,980 | 43 | % | ||||||||
Finance lease liabilities | $ | 267,198 | $ | 422,818 | $ | (155,620 | ) | -37 | % | |||||||
Preferred mezzanine equity | $ | 6,703,460 | $ | 54,034,479 | $ | (47,331,019 | ) | -88 | % | |||||||
Common mezzanine equity | $ | - | $ | 17,519,137 | $ | (17,519,137 | ) | -100 | % | |||||||
Common members' equity | $ | - | $ | 68,854,097 | $ | (68,854,097 | ) | -100 | % | |||||||
Common stock - Class A | $ | 322,953 | $ | - | $ | 322,953 | 100 | % | ||||||||
Common stock - Class B | $ | 602,262 | $ | - | $ | 602,262 | 100 | % | ||||||||
Additional paid-in capital | $ | 255,289,812 | $ | - | $ | 255,289,812 | 100 | % | ||||||||
Retained earnings | $ | 45,610,738 | $ | - | $ | 45,610,738 | 100 | % | ||||||||
Non-controlling interests | $ | 20,873,515 | $ | 31,409,923 | $ | (10,536,408 | ) | -34 | % | |||||||
Other Financial and Operating Data | ||||||||||||||||
Active communities at end of period(1) | 117 | 86 | 31 | 36 | % | |||||||||||
Home closings | 996 | 522 | 474 | 91 | % | |||||||||||
Average sales price of homes closed(7) | $ | 358,604 | $ | 366,704 | $ | (8,100 | ) | -2 | % | |||||||
Net new orders | 1,521 | 792 | 729 | 92 | % | |||||||||||
Cancellation rate | 14.4 | % | 18.0 | % | -3.6 | % | -20 | % | ||||||||
Backlog (at period end) - homes | 4,137 | 1,457 | 2,680 | 184 | % | |||||||||||
Backlog (at period end, in thousands) - value | $ | 1,646,725 | $ | 539,856 | $ | 1,106,869 | 205 | % | ||||||||
Gross margin (in thousands)(2) | $ | 60,154 | $ | 27,384 | $ | 32,770 | 120 | % | ||||||||
Gross margin %(3) | 16.5 | % | 13.8 | % | 2.7 | % | 20 | % | ||||||||
Net profit margin | 7.8 | % | 5.9 | % | 1.9 | % | 32 | % | ||||||||
Adjusted gross margin (in thousands)(2)(4) | $ | 85,452 | $ | 42,836 | $ | 42,616 | 99 | % | ||||||||
Adjusted gross margin %(3) | 23.5 | % | 21.6 | % | 1.9 | % | 9 | % | ||||||||
EBITDA (in thousands)(4) | $ | 42,421 | $ | 19,331 | $ | 23,090 | 119 | % | ||||||||
EBITDA margin %(3)(5) | 11.6 | % | 9.7 | % | 1.9 | % | 20 | % |
For the Three Months Ended March 31, (unaudited) | ||||||||||||||||
2021 | 2020 | Amount Change | % Change | |||||||||||||
Revenues | $ | 343,560,365 | $ | 188,738,433 | $ | 154,821,932 | 82.0 | % | ||||||||
Cost of sales | 291,036,761 | 163,745,683 | 127,291,078 | 77.7 | % | |||||||||||
Selling, general and administrative expense | 28,148,956 | 17,518,785 | 10,630,171 | 60.7 | % | |||||||||||
Income from equity in earnings of unconsolidated entities | (1,732,393 | ) | (1,359,388 | ) | (373,005 | ) | 27.4 | % | ||||||||
Gain on sale of assets | (65,517 | ) | (34,095 | ) | (31,422 | ) | 92.2 | % | ||||||||
Loss on extinguishment of debt | 697,423 | - | 697,423 | 100.0 | % | |||||||||||
Other Income | (482,219 | ) | (134,061 | ) | (348,159 | ) | 259.7 | % | ||||||||
Other expense | 2,903,048 | 1,195,311 | 1,707,738 | 142.9 | % | |||||||||||
Interest expense | 641,861 | 35,705 | 606,156 | 1697.7 | % | |||||||||||
Income before taxes | $ | 22,412,445 | $ | 7,770,493 | $ | 14,641,952 | 188.4 | % | ||||||||
Income tax expense | 4,816,482 | - | 4,816,482 | 100.0 | % | |||||||||||
Net and comprehensive income | $ | 17,595,963 | $ | 7,770,493 | $ | 9,825,470 | 126.4 | % | ||||||||
Net and comprehensive income attributable to non-controlling interests | (1,475,318 | ) | (1,190,459 | ) | (284,859 | ) | 23.9 | % | ||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc. | 16,120,645 | 6,580,034 | 9,540,611 | 145.0 | % | |||||||||||
Earnings per share(6) | ||||||||||||||||
Basic | $ | 0.18 | $ | - | $ | 0.18 | 100.0 | % | ||||||||
Diluted | $ | 0.18 | $ | - | $ | 0.18 | 100.0 | % | ||||||||
Weighted-average number of shares | ||||||||||||||||
Basic | 92,521,482 | - | 92,521,482 | 100.0 | % | |||||||||||
Diluted | 92,596,960 | - | 92,596,960 | 100.0 | % | |||||||||||
Consolidated Balance Sheets Data (at period end): | ||||||||||||||||
Cash and cash equivalents | $ | 42,303,231 | $ | 11,503,283 | $ | 30,799,948 | 267.7 | % | ||||||||
Total assets | $ | 866,722,489 | $ | 489,938,177 | $ | 376,784,312 | 76.9 | % | ||||||||
Long-term debt | $ | 323,880,300 | $ | 225,050,866 | $ | 94,565,666 | 42.0 | % | ||||||||
Finance lease liabilities | $ | 305,987 | $ | 466,312 | $ | (160,325 | ) | -34.4 | % | |||||||
Preferred mezzanine equity | $ | 6,515,415 | $ | 53,435,881 | $ | (46,920,466 | ) | -87.8 | % | |||||||
Common mezzanine equity | $ | - | $ | 16,701,797 | $ | (16,701,797 | ) | -100.0 | % | |||||||
Common members' equity | $ | - | $ | 61,476,244 | $ | (61,476,244 | ) | -100.0 | % | |||||||
Common stock - Class A | $ | 322,953 | $ | - | $ | 322,953 | 100.0 | % | ||||||||
Common stock - Class B | $ | 602,262 | $ | - | $ | 602,262 | 100.0 | % | ||||||||
Additional paid-in capital | $ | 253,837,981 | $ | - | $ | 253,837,981 | 100.0 | % | ||||||||
Retained earnings | $ | 17,224,902 | $ | - | $ | 17,224,902 | 100.0 | % | ||||||||
Non-controlling interests | $ | 21,696,487 | $ | 30,091,204 | $ | (8,394,717 | ) | -27.9 | % | |||||||
Other Financial and Operating Data | ||||||||||||||||
Active communities at end of period(1) | 120 | 83 | 37 | 44.6 | % | |||||||||||
Home closings | 1,002 | 515 | 487 | 94.6 | % | |||||||||||
Average sales price of homes closed(7) | $ | 335,986 | $ | 362,591 | $ | (26,604 | ) | -7.3 | % | |||||||
Net new orders | 2,010 | 848 | 1,162 | 137.0 | % | |||||||||||
Cancellation rate | 8.1 | % | 11.8 | % | -3.7 | % | -31.4 | % | ||||||||
Backlog (at period end) - homes | 3,612 | 1,155 | 2,457 | 212.7 | % | |||||||||||
Backlog (at period end, in thousands) - value | $ | 1,356,436 | $ | 441,903 | $ | 914,533 | 207.0 | % | ||||||||
Gross margin(2) | $ | 51,130,202 | $ | 24,028,118 | $ | 27,102,084 | 112.8 | % | ||||||||
Gross margin %(3) | 14.9 | % | 12.8 | % | 2.1 | % | 16.6 | % | ||||||||
Net profit margin | 4.7 | % | 3.5 | % | 1.2 | % | 34.6 | % | ||||||||
Adjusted gross margin(2) | $ | 75,854,588 | $ | 39,005,221 | $ | 36,849,367 | 94.5 | % | ||||||||
Adjusted gross margin %(3) | 22.2 | % | 20.8 | % | 1.4 | % | 6.6 | % | ||||||||
EBITDA(3) | $ | 32,333,020 | $ | 19,054,453 | $ | 13,278,566 | 69.7 | % | ||||||||
EBITDA margin %(3) | 9.4 | % | 7.5 | % | 1.9 | % | 25.5 | % |
(1) | A community becomes active once the model is completed or the community has its fifth sale. A community becomes inactive when it has fewer than five units remaining to sell. |
(2) | Gross margin is home sales revenue less cost of sales. |
(3) | Calculated as a percentage of home sales revenue. |
(4) | Adjusted gross margin and EBITDA are non-GAAP financial measures. For definitions of adjusted gross margin and EBITDA and a reconciliation to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures.” |
(5) | Calculated as a percentage of revenues. |
(6) | |
(7) | Average selling price of homes closed is calculated based on home sales revenue, excluding the impact of deposit forfeitures and percentage of completion revenues, over homes closed. |
For the Six Months Ended June 30, (unaudited) | ||||||||||||||||
2021 | 2020 | Amount Change | % Change | |||||||||||||
Revenues | $ | 708,836,466 | $ | 388,539,561 | $ | 320,296,905 | 82 | % | ||||||||
Cost of sales | 594,626,181 | 334,982,320 | 259,643,861 | 78 | % | |||||||||||
Selling, general and administrative expense | 55,652,375 | 34,581,082 | 21,071,293 | 61 | % | |||||||||||
Income from equity in earnings of unconsolidated entities | (2,857,394 | ) | (3,286,090 | ) | 428,696 | -13 | % | |||||||||
Loss/(Gain) on sale of assets | (17,483 | ) | (34,295 | ) | 16,812 | -49 | % | |||||||||
Loss on extinguishment of debt | 697,423 | - | 697,423 | 100 | % | |||||||||||
Other Income | ||||||||||||||||
Other | (2,150,482 | ) | (919,214 | ) | (1,231,268 | ) | 134 | % | ||||||||
Paycheck Protection Program forgiveness | (7,219,794 | ) | - | (7,219,794 | ) | 100 | % | |||||||||
Other Expense | ||||||||||||||||
Other | 5,337,828 | 2,555,837 | 2,781,991 | 109 | % | |||||||||||
Contingent consideration revaluation | 5,159,725 | 316,772 | 4,842,953 | 1529 | % | |||||||||||
Interest expense | 657,657 | 81,653 | 576,004 | 705 | % | |||||||||||
Income before taxes | $ | 58,950,430 | $ | 20,261,496 | $ | 38,688,934 | 191 | % | ||||||||
Income tax expense | (9,294,799 | ) | - | (9,294,799 | ) | 100 | % | |||||||||
Net and comprehensive income | $ | 49,655,631 | $ | 20,261,496 | $ | 29,394,135 | 145 | % | ||||||||
Net and comprehensive income attributable to non-controlling interests | (4,961,107 | ) | (1,957,361 | ) | (3,003,746 | ) | 153 | % | ||||||||
Net and comprehensive income attributable to Dream Finders Homes, Inc. | 44,694,524 | 18,304,135 | 26,390,389 | 144 | % | |||||||||||
Earnings per share(6) | ||||||||||||||||
Basic | $ | 0.49 | $ | - | $ | 0.49 | 100 | % | ||||||||
Diluted | $ | 0.49 | $ | - | $ | 0.49 | 100 | % | ||||||||
Weighted-average number of shares | ||||||||||||||||
Basic | 92,521,482 | - | 92,521,482 | 100 | % | |||||||||||
Diluted | 92,641,222 | - | 92,641,222 | 100 | % | |||||||||||
Consolidated Balance Sheets Data (at period end): | ||||||||||||||||
Cash and cash equivalents | $ | 6,154,320 | $ | 35,057,235 | $ | (28,902,915 | ) | -82 | % | |||||||
Total assets | $ | 932,281,953 | $ | 546,819,564 | $ | 385,462,389 | 70 | % | ||||||||
Short-term debt, net | $ | 369,048,531 | $ | 258,834,551 | $ | 110,213,980 | 43 | % | ||||||||
Finance lease liabilities | $ | 267,198 | $ | 422,818 | $ | (155,620 | ) | -37 | % | |||||||
Preferred mezzanine equity | $ | 6,703,460 | $ | 54,034,479 | $ | (47,331,019 | ) | -88 | % | |||||||
Common mezzanine equity | $ | - | $ | 17,519,137 | $ | (17,519,137 | ) | -100 | % | |||||||
Common members' equity | $ | - | $ | 68,854,097 | $ | (68,854,097 | ) | -100 | % | |||||||
Common stock - Class A | $ | 322,953 | $ | - | $ | 322,953 | 100 | % | ||||||||
Common stock - Class B | $ | 602,262 | $ | - | $ | 602,262 | 100 | % | ||||||||
Additional paid-in capital | $ | 255,289,812 | $ | - | $ | 255,289,812 | 100 | % | ||||||||
Retained earnings | $ | 45,610,738 | $ | - | $ | 45,610,738 | 100 | % | ||||||||
Non-controlling interests | $ | 20,873,515 | $ | 31,409,923 | $ | (10,536,408 | ) | -34 | % | |||||||
Other Financial and Operating Data | ||||||||||||||||
Active communities at end of period(1) | 117 | 86 | 31 | 36 | % | |||||||||||
Home closings | 1,998 | 1,037 | 961 | 93 | % | |||||||||||
Average sales price of homes closed(7) | $ | 347,261 | $ | 366,604 | $ | (19,343 | ) | -5 | % | |||||||
Net new orders | 3,531 | 1,641 | 1,890 | 115 | % | |||||||||||
Cancellation rate | 10.9 | % | 14.9 | % | -4.0 | % | -27 | % | ||||||||
Backlog (at period end) - homes | 4,137 | 1,457 | 2,680 | 184 | % | |||||||||||
Backlog (at period end, in thousands) - value | $ | 1,646,725 | $ | 539,856 | $ | 1,106,869 | 205 | % | ||||||||
Gross margin (in thousands)(2) | $ | 111,284 | $ | 51,413 | $ | 59,871 | 116 | % | ||||||||
Gross margin %(3) | 15.8 | % | 13.3 | % | 2.5 | % | 18 | % | ||||||||
Net profit margin | 6.3 | % | 4.7 | % | 1.6 | % | 34 | % | ||||||||
Adjusted gross margin (in thousands)(2)(4) | $ | 159,683 | $ | 81,842 | $ | 77,841 | 95 | % | ||||||||
Adjusted gross margin %(3) | 22.6 | % | 21.2 | % | 1.4 | % | 7 | % | ||||||||
EBITDA (in thousands)(4) | $ | 74,621 | $ | 33,454 | $ | 41,167 | 123 | % | ||||||||
EBITDA margin %(3)(5) | 10.5 | % | 8.6 | % | 1.9 | % | 22 | % |
(1) | A community becomes active once the model is completed or the community has its fifth sale. A community becomes inactive when it has fewer than five units remaining to sell. |
(2) | Gross margin is home sales revenue less cost of sales. |
(3) | Calculated as a percentage of home sales revenue. |
(4) | Adjusted gross margin and EBITDA are non-GAAP financial measures. For definitions of adjusted gross margin and EBITDA and a reconciliation to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures.” |
(5) | Calculated as a percentage of revenues. |
(6) | The Company calculated earnings per share (“EPS”) based on net income attributable to common stockholders for the period January 21, 2021 through June 30, 2021 over the weighted average diluted shares outstanding for the same period. EPS was calculated prospectively for the period subsequent to the IPO and Corporate Reorganization as described in Note 1 – Nature of Business and Significant Accounting Policies, resulting in 92,521,482 shares of common stock outstanding as of the closing of the IPO. For the six months ended June 30, 2021, the diluted shares of common stock outstanding were 92,641,222. The total outstanding shares of common stock are made up of Class A common stock and Class B common stock, which participate equally in their ratable ownership share of the Company. |
(7) | Average selling price of homes closed is calculated based on home sales revenue, excluding the impact of deposit forfeitures and percentage of completion revenues, over homes closed. |
For the Three Months Ended June 30, | ||||||||||||||||
Column1 | 2021 | As a % of Home Sales Revenue | 2020 | As a % of Home Sales Revenue . | ||||||||||||
Revenues | $ | 365,276 | $ | 199,801 | ||||||||||||
Other revenue | 1,533 | 1,180 | ||||||||||||||
Home sales revenue | 363,743 | 198,621 | ||||||||||||||
Cost of sales | 303,589 | 83.5 | % | 171,237 | 86.2 | % | ||||||||||
Gross Margin(1) | 60,154 | 16.5 | % | 27,384 | 13.8 | % | ||||||||||
Interest expense in cost of sales | 7,365 | 2.0 | % | 5,807 | 2.9 | % | ||||||||||
Amortization in cost of sales(3) | 2,072 | 0.6 | % | 1,065 | 0.5 | % | ||||||||||
Commission expense | 15,861 | 4.4 | % | 8,580 | 4.3 | % | ||||||||||
Adjusted gross margin | 85,452 | 23.5 | % | 42,836 | 21.6 | % | ||||||||||
Gross margin %(2) | 16.5% | 13.8% | ||||||||||||||
Adjusted gross margin %(2) | 23.5% | 21.6% |
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2021 | As a % of Home Sales Revenue | 2020 | As a % of Home Sales Revenue . | |||||||||||||||||||||||||||||
Column1 | 2021 | As a % of Home Sales Revenue | 2020 | As a % of Home Sales Revenue . | ||||||||||||||||||||||||||||
Revenues | $ | 343,560 | $ | 188,738 | $ | 708,836 | $ | 388,540 | ||||||||||||||||||||||||
Other revenue | 1,393 | 965 | 2,926 | 2,145 | ||||||||||||||||||||||||||||
Home sales revenue | 342,167 | 187,773 | 705,910 | 386,395 | ||||||||||||||||||||||||||||
Cost of sales | 291,037 | 85.1 | % | 163,746 | 87.2 | % | 594,626 | 84.2 | % | 334,982 | 86.7 | % | ||||||||||||||||||||
Gross Margin(1) | 51,130 | 14.9 | % | 24,027 | 12.8 | % | 111,284 | 15.8 | % | 51,413 | 13.3 | % | ||||||||||||||||||||
Interest expense in cost of sales | 8,276 | 2.4 | % | 5,992 | 3.2 | % | 15,640 | 2.2 | % | 11,799 | 3.1 | % | ||||||||||||||||||||
Amortization in cost of sales(3) | 1,175 | 0.3 | % | 593 | 0.3 | % | 1,624 | 0.2 | % | 1,658 | 0.4 | % | ||||||||||||||||||||
Commission expense | 15,274 | 4.5 | % | 8,392 | 4.5 | % | 31,135 | 4.4 | % | 16,972 | 4.4 | % | ||||||||||||||||||||
Adjusted gross margin | 75,855 | 22.2 | % | 39,004 | 20.8 | % | 159,683 | 22.6 | % | 81,842 | 21.2 | % | ||||||||||||||||||||
Gross margin %(2) | 14.9 | % | 12.8 | % | 15.8% | 13.3% | ||||||||||||||||||||||||||
Adjusted gross margin %(2) | 22.2 | % | 20.8 | % | 22.6% | 21.2% |
(1) | Gross margin is home sales revenue less cost of sales. |
(2) | Calculated as a percentage of home sales revenues. |
(3) | Includes purchase accounting adjustment, as applicable. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
Column1 | 2021 | 2020 | 2021 . | 2020 . | ||||||||||||
Net income | $ | 28,574 | $ | 11,724 | $ | 44,695 | $ | 18,304 | ||||||||
Interest income | - | (2 | ) | (4 | ) | (34 | ) | |||||||||
Interest expensed in cost of sales | 7,365 | 5,807 | 15,640 | 11,799 | ||||||||||||
Interest expense | 16 | 46 | 658 | 82 | ||||||||||||
Income tax expense | 4,478 | - | 9,295 | - | ||||||||||||
Depreciation and amortization | 1,988 | 1,756 | 4,337 | 3,303 | ||||||||||||
EBITDA | $ | 42,421 | $ | 19,331 | $ | 74,621 | $ | 33,454 | ||||||||
Stock-based compensation expense | 1,452 | - | 3,800 | 224 | ||||||||||||
Adjusted EBITDA | $ | 43,873 | $ | 19,331 | $ | 78,421 | $ | 33,678 | ||||||||
EBITDA margin %(1) | 11.6 | % | 9.7 | % | 10.5 | % | 8.6 | % | ||||||||
Adjusted EBITDA margin %(1) | 12.0 | % | 9.7 | % | 10.8 | % | 8.7 | % |
For the Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net income | $ | 16,121 | $ | 6,580 | ||||
Interest income | (4 | ) | (32 | ) | ||||
Interest expensed in cost of sales | 8,276 | 5,992 | ||||||
Interest expense | 642 | 36 | ||||||
Income tax expense | 4,816 | - | ||||||
Depreciation and amortization | 2,478 | 1,547 | ||||||
EBITDA | $ | 32,329 | $ | 14,123 | ||||
Stock-based compensation expense | 2,349 | 224 | ||||||
Adjusted EBITDA | $ | 34,678 | $ | 14,347 | ||||
EBITDA margin %(1) | 9.4 | % | 7.5 | % | ||||
Adjusted EBITDA margin %(1) | 10.1 | % | 7.6 | % |
(1) | Calculated as a percentage of revenues. |
For the Three Months Ended March 31, | Period Over Period | For the Three Months Ended June 30, | Period Over Period Percent Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021(1) | 2020 | Percent Change | 2021(1) | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market | Sales | Starts | Closings | Sales | Starts | Closings | Sales | Starts | Closings | Sales | Starts | Closings | Sales 2 | Starts 2 | Closings 2 | Sales 3 | Starts 3 | Closings 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Carolinas (H&H Homes) | 647 | 413 | 343 | - | - | - | - | - | - | 499 | 584 | 315 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jacksonville | 560 | 407 | 295 | 401 | 257 | 257 | 40 | % | 58 | % | 15 | % | 307 | 379 | 265 | 388 | 361 | 247 | -21 | % | 5 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Orlando | 281 | 173 | 161 | 127 | 97 | 26 | 121 | % | 78 | % | 519 | % | 328 | 166 | 147 | 105 | 102 | 72 | 212 | % | 63 | % | 104 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Colorado | 139 | 74 | 34 | 94 | 73 | 47 | 48 | % | 1 | % | -28 | % | 27 | 108 | 47 | 50 | 56 | 50 | -46 | % | 93 | % | -6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
DC Metro | 52 | 32 | 24 | 67 | 48 | 51 | -22 | % | -33 | % | -53 | % | 20 | 49 | 35 | 45 | 60 | 37 | -56 | % | -18 | % | -5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Other(2) | 331 | 289 | 145 | 159 | 166 | 134 | 108 | % | 74 | % | 8 | % | 340 | 297 | 187 | 204 | 116 | 116 | 67 | % | 156 | % | 61 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total | 2,010 | 1,388 | 1,002 | 848 | 641 | 515 | 137 | % | 117 | % | 95 | % | 1,521 | 1,583 | 996 | 792 | 695 | 522 | 92 | % | 128 | % | 91 | % |
For the Six Months Ended June 30, | Period Over Period Percent Change | |||||||||||||||||||||||||||||||||||
2021(1) | 2020 | |||||||||||||||||||||||||||||||||||
Market | Sales | Starts | Closings | Sales 2 | Starts 2 | Closings 2 | Sales 3 | Starts 3 | Closings 3 | |||||||||||||||||||||||||||
The Carolinas (H&H Homes) | 1,146 | 997 | 658 | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Jacksonville | 867 | 783 | 560 | 802 | 646 | 513 | 8 | % | 21 | % | 9 | % | ||||||||||||||||||||||||
Orlando(1) | 609 | 338 | 308 | 233 | 199 | 98 | 161 | % | 70 | % | 214 | % | ||||||||||||||||||||||||
Colorado | 166 | 182 | 81 | 144 | 129 | 97 | 15 | % | 41 | % | -16 | % | ||||||||||||||||||||||||
DC Metro | 72 | 81 | 59 | 112 | 108 | 88 | -36 | % | -25 | % | -33 | % | ||||||||||||||||||||||||
Other(2) | 671 | 586 | 332 | 350 | 262 | 241 | 92 | % | 124 | % | 38 | % | ||||||||||||||||||||||||
Grand Total | 3,531 | 2,967 | 1,998 | 1,641 | 1,344 | 1,037 | 115 | % | 121 | % | 93 | % |
(1) | Includes sales, starts and closings for Century Homes from the acquisition date of January 31, 2021. |
(2) | Austin, Savannah, Village Park Homes, Active Adult and Custom Homes. |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
12 | 2021 | 2020 | 2021 2 | 2020 2 | ||||||||||||||||||||
Net New Orders | 2,010 | 848 | 1,521 | 792 | 3,531 | 1,641 | ||||||||||||||||||
Cancellation Rate | 8.1 | % | 11.8 | % | 14.4% | 18.0% | 10.9% | 14.9% |
For the Three Months Ended March 31, | June 30, | ||||||||||||||||
2021 | 2020 | ||||||||||||||||
12 | 2021 | 2020 | |||||||||||||||
Ending Backlog - Homes | 3,612 | 1,155 | 4,137 | 1,457 | |||||||||||||
Ending Backlog - Value (in thousands) | $ | 1,356,436 | $ | 441,903 | $ | 1,646,725 | $ | 539,856 |
As of March 31, | As of December 31, | As of June 30, | As of December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change of | 2021 | 2020 | % Change of | |||||||||||||||||||||||||||||||||||||||||||||||||||
Division | Owned | Controlled | Total | Owned | Controlled | Total | Total | Owned | Controlled | Total | Owned 1 | Controlled 1 | Total 1 | Total . | ||||||||||||||||||||||||||||||||||||||||||
The Carolinas (H&H Homes) | 1,281 | 4,395 | 5,676 | 1,348 | 4,107 | 5,455 | 4.1 | % | 1,431 | 4,945 | 6,376 | 1,348 | 4,107 | 5,455 | 17 | % | ||||||||||||||||||||||||||||||||||||||||
Jacksonville | 971 | 5,810 | 6,781 | 715 | 4,445 | 5,160 | 31.4 | % | 1,135 | 5,125 | 6,260 | 715 | 4,445 | 5,160 | 21 | % | ||||||||||||||||||||||||||||||||||||||||
Orlando | 585 | 2,735 | 3,320 | 256 | 2,504 | 2,760 | 20.3 | % | 520 | 3,413 | 3,933 | 256 | 2,504 | 2,760 | 43 | % | ||||||||||||||||||||||||||||||||||||||||
Colorado | 174 | 4,856 | 5,030 | 106 | 4,145 | 4,251 | 18.3 | % | 166 | 5,107 | 5,273 | 106 | 4,145 | 4,251 | 24 | % | ||||||||||||||||||||||||||||||||||||||||
DC Metro | 65 | 815 | 880 | 77 | 566 | 643 | 36.9 | % | 124 | 719 | 843 | 77 | 566 | 643 | 31 | % | ||||||||||||||||||||||||||||||||||||||||
Other(1) | 771 | 3,980 | 4,751 | 629 | 3,509 | 4,138 | 14.8 | % | 904 | 3,614 | 4,518 | 629 | 3,509 | 4,138 | 9 | % | ||||||||||||||||||||||||||||||||||||||||
Grand Total | 3,847 | 22,591 | 26,438 | 3,131 | 19,276 | 22,407 | 18.0 | % | 4,280 | 22,923 | 27,203 | 3,131 | 19,276 | 22,407 | 21 | % |
(1) | Includes owned and controlled lots for Century Homes from the acquisition date of January 31, 2021. |
(2) | Austin, Savannah, Village Park Homes, Active Adult and Custom Homes. |
As of March 31, 2021 | As of December 31, 2020 | As of June 30, 2021 | As of December 31, 2020 | |||||||||||||||
Owned Real Estate Inventory Status (1) | % of Owned Real Estate Inventory | % of Owned Real Estate Inventory | % of Owned Real Estate Inventory | % of Owned Real Estate Inventory 1 | ||||||||||||||
Construction in progress and finished homes | 89.8 | % | 88.8 | % | 87.7 | % | 88.8 | % | ||||||||||
Finished lots and land under development | 10.2 | % | 11.2 | % | 12.3 | % | 11.2 | % | ||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
(1) | Represents our owned homes under construction, finished lots and capitalized costs related to land under development. Land and lots from consolidated joint ventures are excluded. |
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (47,481,723 | ) | $ | (21,305,692 | ) | $ | (121,287 | ) | $ | (28,000 | ) | ||||
Net cash provided by (used in) investing activities | (22,915,714 | ) | (1,123,974 | ) | (23,485 | ) | 842 | |||||||||
Net cash provided by (used in) financing activities | 76,922,404 | (15,318,649 | ) | 112,652 | 15,486 |
ITEM 3. |
ITEM 4. |
• | Formalization of our remediation plan and timelines to fully address the individual control deficiencies and segregation of duties issues. | |
• | Development of formal policies around general computer controls, including scheduled formal trainings prior to implementation of an IT general controls framework that addresses risks associated with user access and security and application change management and IT operations to help sustain effective control operations and comprehensive remediation efforts relating to segregation of duties to strengthen user access controls and security. |
ITEM 1. |
ITEM 2. |
ITEM 6. | EXHIBITS |
Exhibit No. | Description | |
CEO Certification, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
CFO Certification, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Inline XBRL Instance | ||
Inline XBRL Taxonomy Extension Schema Document. | ||
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||
Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||
Inline XBRL Taxonomy Extension Label Linkbase Document. | ||
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | Filed herewith. |
† | Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K. |
+ | Certain schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant undertakes to furnish supplemental copies of any of the omitted schedules upon request by the SEC. |
∞ | XBRL information is deemed not filed or a part of a registration statement or Annual Report for purposes of Sections 11 and 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under such sections. |
Dream Finders Homes, Inc. | ||
Date: | August 10, 2021 | /s/ Patrick O. Zalupski |
Patrick O. Zalupski | ||
President, Chief Executive Officer and Chairman of the Board of Directors | ||
(Principal Executive Officer) |
August 10, 2021 | /s/ Rick A. Moyer | |
Rick A. Moyer | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |